24 CFR 511.14 Tenant assistance, displacement, relocation, and
acquisition.
(a) General policies. The grantee and any State recipient shall:
(1) Ensure that the rehabilitation will not cause the displacement of
any very low income family by a family that is not a very low income
family.
(2) Consistent with the other goals and objectives of this part,
minimize displacement. To the extent feasible, residential occupants
shall be provided a reasonable opportunity to lease and occupy a
suitable, decent, safe, sanitary and affordable dwelling unit in the
project (see paragraph (g)(1)(iii) of this section).
(3) Administer all phases of the RRP, including the selection of
units to be rehabilitated and the provision of notices, counseling,
referrals, other advisory services and relocation payments, in a manner
that does not result in discrimination because of race, color, religion,
sex, age, handicap, familial status or national origin.
(4) Adopt and make public a written tenant assistance policy (TAP)
that describes the assistance that will be provided to tenants who
reside in the project and which includes a statement of
nondiscrimination policy consistent with paragraph (a)(3) of this
section. The TAP shall comply with the provisions of this section.
Each tenant in the project shall be provided a copy of the TAP and
advised of the impact of the project on him or her. For privately owned
projects, such notice shall be given immediately after submission of the
application by the owner of a property, or earlier. For publicly owned
projects, such notice shall be given immediately after the commitment
(defined in 511.2), or earlier.
(b) Relocation assistance for displaced persons. A displaced person
(defined in paragraph (g) of this section) must be provided relocation
assistance at the levels described in, and in accordance with the
requirements of, 49 CFR part 24, which contains the government-wide
regulations implementing the Uniform Relocation Assistance and Real
Property Acquisition Policies Act of 1970 (URA) (42 U.S.C. 4601-4655).
Tenants shall be advised of their rights under the Fair Housing Act (42
U.S.C. 3601-19) and of replacement housing opportunities in such a
manner that, to the extent possible, tenants are provided a choice
between relocating within their own neighborhoods and other
neighborhoods consistent with the grantee's or State recipient's
responsibility to affirmatively further fair housing. As permitted
under 49 CFR 24.2(k), for purposes of making replacement housing
payments, the term initiation of negotiations means:
(1) For a privately owned project, execution of the legally binding
agreement between the grantee or State recipient and the project owner
under which the grantee or State recipient agrees to provide rental
rehabilitation grant amounts for the project.
(2) For a publicly owned project, the commitment as defined in 511.2
or such earlier notice as the grantee or State recipient determines to
be appropriate.
(c) Real property acquisition requirements. The acquisition of real
property for a project is subject to the URA and the requirements
described in 49 CFR part 24, subpart B.
(d) Application of Community Development Block Grant (CDBG)
requirements. If CDBG funds are used to pay any part of the cost of the
rehabilitation activities, as described in 24 CFR 570.202(b) or similar
eligible activities, the project is subject to the requirements of
section 104(d) of the Housing and Community Development Act of 1974, as
amended, and implementing regulations at 24 CFR 570.606(b) (Entitlement
Program and HUD-administered Small Cities Program) and 24 CFR
570.496a(b) (State CDBG Program).
(e) Appeals. If a person disagrees with the grantee's or State
recipient's determination concerning the person's eligibility for, or
the amount of, relocation assistance, the person may file a written
appeal (request for reconsideration) of that determination with the
grantee or State recipient. The appeal procedures to be followed are
described in 49 CFR 24.10. A lower income person that has been displaced
from a dwelling may submit a further written request for review of the
grantee's decision to the appropriate HUD Field Office. However, a
lower income person's request for review of a State recipient's decision
shall be submitted to the State grantee.
(f) Compliance responsibility. (1) The grantee and any State
recipient are responsible for ensuring compliance with the URA, the
regulations at 49 CFR part 24, and the requirements of this section,
notwithstanding any third party's contractual obligation to the grantee
or State recipient to comply with these provisions.
(2) The cost of required assistance may be paid from local public
funds, funds available under the rules of this part, or funds available
from other sources.
(3) The grantee or State recipient must maintain records in
sufficient detail to demonstrate compliance with the provisions of this
section.
(g) Definition of a displaced person. (1) For purposes of this
section, the term displaced person means any person (family, individual,
business, nonprofit organization or farm) that moves from real property,
or moves personal property from real property, permanently and
involuntarily as a direct result of rehabilitation, demolition or
acquisition for a project assisted under this part. Permanent,
involuntary moves for an assisted project include a permanent move from
the project that is made:
(i) After notice by the property owner, grantee, or State recipient
to move permanently from the property, if the move occurs on or after
the following date:
(A) If the notice is provided by the property owner, the date that
the owner (or person in control of the site) submits a request for
assistance under this part that is later approved and funded.
(B) If the notice is provided by the grantee or State recipient, the
date of the commitment to a specific local project.
(ii) Before the date described in paragraph (g)(1)(i) of this
section, if either the grantee or HUD determines that the displacement
resulted directly from rehabilitation, acquisition or demolition for the
project;
(iii) By a tenant-occupant of a dwelling unit after the initiation of
negotiations, if:
(A) The tenant has not been provided a reasonable opportunity to
lease and occupy a suitable, decent, safe and sanitary dwelling in the
project following the completion of the project at a rent, including
estimated average utility costs, that does not exceed the greater of:
(1) The tenant's rent and estimated average utility costs before the
commitment; or
(2) The total tenant payment, as determined under 24 CFR 813.107, if
the tenant is lower income, or 30 percent of gross household income if
the tenant is not lower income; or
(B) The tenant has been required to relocate temporarily, but:
(1) The tenant is not offered payment for all reasonable
out-of-pocket expenses incurred in connection with the temporary
relocation, including the cost of moving to and from the temporarily
occupied housing and any increase in rent and utility costs, or other
conditions of the temporary relocation are not reasonable, and
(2) The tenant does not return to the project; or
(C) The tenant is required to move to another unit within the project
but is not offered reimbursement for all reasonable out-of-pocket
expenses incurred in connection with the move or other conditions of the
move are not reasonable.
(2) A person does not qualify as a displaced person, if:
(i) The person has been evicted for cause based upon a serious or
repeated violation of material terms of the lease or occupancy
agreement, and the grantee or State recipient determines that the
eviction was not undertaken for the purpose of evading the obligation to
provide relocation assistance; or
(ii) The person moved into the property after the owner's submission
of the request for assistance but, before commencing occupancy, received
written notice of the owner's intent to terminate the person's occupancy
for the project; or
(iii) The person is ineligible under 49 CFR 24.2(g)(2); or
(iv) The grantee or State recipient determines that the person was
not displaced as a direct result of rehabilitation, acquisition or
demolition of the project, and the HUD Field Office concurs in that
determination.
(3) The grantee may, at any time, ask HUD to determine whether a
specific displacement is or would be covered by these rules.
24 CFR 511.15 Lead-based paint.
(a) Prohibition against the use of lead-based paint. Section 401(b)
of the Lead-Based Paint Poisoning Prevention Act (42 U.S.C. 4831(b))
directs the Secretary to prohibit the use of lead-based paint in
residential structures rehabilitated with Federal assistance. Such
prohibitions are contained in 24 CFR part 35, subpart B, and are
applicable to rehabilitated projects with assistance provided under this
part.
(b) Notification of hazards of lead-based paint poisoning. (1) The
Secretary has promulgated requirements regarding notification to
purchasers and tenants of HUD-associated housing constructed prior to
1978 of the hazards of lead-based paint poisoning at 24 CFR part 35,
subpart A. This paragraph is promulgated pursuant to the authorization
granted in 24 CFR 35.5(c) and supersedes, with respect to all housing to
which it applies, the notification requirements prescribed by 24 CFR
part 35, subpart A.
(2) For properties constructed prior to 1978, owner-occupant
applicants for rehabilitation assistance provided under this part and
tenants of projects rehabilitated with assistance provided under this
part shall be notified:
(i) That the project may contain lead-based paint;
(ii) Of the hazards of lead-based paint;
(iii) Of the symptoms and treatment of lead-based paint poisoning;
(iv) Of the precautions to be taken to avoid lead-based paint
poisoning (including maintenance and removal techniques for eliminating
such hazards);
(v) Of the advisability and availability of blood lead level
screening for children under seven years of age; and
(vi) That in the event lead-based paint is found on the property,
appropriate abatement procedures may be undertaken.
(c) Elimination of lead-based paint hazards. The purpose of this
paragraph is to implement the provisions of section 302 of the
Lead-Based Paint Poisoning Prevention Act, 42 U.S.C. 4822, by
establishing procedures to eliminate as far as practicable the hazards
due to the presence of paint which may contain lead and to which
children under seven years of age may be exposed in projects assisted
under this part. The Secretary has promulgated requirements regarding
the elimination of lead-based paint hazards in HUD-associated housing at
24 CFR part 35, subpart C. Because of 1988 and 1989 amendments to the
Lead-Based Paint Poisoning Prevention Act as well as because of
advancements in testing and abatement technology derived from
HUD-sponsored of advancements in testing and abatement technology
derived from HUD-sponsored studies and demonstrations, it is anticipated
that subpart C will be amended. Pending such amendment the following
interim provisions ( 511.15 (c)(1) through (c)(9)) will be followed
pursuant to the authority in 24 CFR 35.24(b)(4). Publication of a
revised 24 CFR part 35 will remove these interim provisions.
(1) Definitions -- (i) Applicable surface. All intact and nonintact
interior and exterior painted surfaces of a residential structure.
(ii) Chewable surface. All chewable protruding painted surfaces up
to five feet from the floor or ground, which are readily accessible to
children under seven years of age, e.g., protruding corners, windowsills
and frames, doors and frames, and other protruding woodwork.
(iii) Defective paint surface. Paint on applicable surfaces that is
cracking, scaling, chipping, peeling or loose.
(iv) Elevated blood lead level or EBL. Excessive absorption of lead,
that is, a confirmed concentration of lead is whole blood of 25 g/dl
(micrograms of lead per deciliter of whole blood) or greater.
(v) Lead-based paint surface. A paint surface, whether or not
defective, identified as having a lead content greater than or equal to
1 mg/cm2.
(2) Inspection and testing -- (i) Defective paint surfaces. The
grantee or State recipient shall inspect for defective paint surfaces in
all units constructed prior to 1978 which are occupied by families with
children under seven years of age and which are proposed for
rehabilitation assistance. The inspection shall occur at the same time
the project is being inspected for rehabilitation. Defective paint
conditions will be specified for correction as part of the assisted
rehabilitation.
(ii) Chewable surfaces. The grantee or State recipient shall be
required to test the lead content of chewable surfaces if the family
residing in a unit, constructed prior to 1978 and receiving
rehabilitation assistance, includes a child under seven years of age
with an identified EBL condition. Lead content shall be tested by using
an X-ray fluorescence analyzer (XRF) or other method approved by HUD.
Test readings of 1 mg/cm2 or higher using an XRF shall be considered
positive for presence of lead-based paint.
(iii) Abatement without testing. In lieu of the procedures set forth
in 511.15(c)(2)(ii), in the case of a residential structure constructed
before 1978, the grantee or State recipient may forego testing and abate
all applicable surfaces in accordance with the methods set out in 24 CFR
35.24(b)(2)(ii).
(3) Abatement actions. (i) For inspections performed under
511.15(c)(2)(i) and where defective paint surfaces are found, treatment
shall be provided to defective areas. Treatment shall be performed
before final inspection and approval of the work.
(ii) For testing performed under 511.15(c)(2)(ii) and where interior
chewable surfaces are found to contain lead-based paint, all interior
chewable surfaces in any affected room shall be treated. Where exterior
chewable surfaces are found to contain lead-based paint, the entire
chewable surface shall be treated. Treatment shall be performed before
final inspection and approval of the work.
(iii) When weather prohibits repainting exterior surfaces before
final inspection, the grantee or State recipient may, or may permit the
owner to, abate the defective paint or chewable lead-based paint as
required by this section and agree to repaint by a specified date. A
separate inspection is required.
(4) Abatement methods. At a minimum, treatment of the defective
areas and chewable lead-based paint surfaces shall consist of covering
or removal of the painted surface as described in 24 CFR
35.24(b)(2)(ii).
(5) Disposal of lead-based paint debris. Lead-based paint and
defective paint debris shall be disposed of in accordance with
applicable Federal, State or local requirements. (See, e.g., 40 CFR
parts 260 through 271.)
(6) Tenant protection. The grantee or State recipient shall assure
that the owner and any rehabilitation contractors shall take appropriate
action to protect tenants from hazards associated with abatement
procedures. Where necessary, these actions may include the temporary
relocation of tenants during the abatement process.
(7) Records. The grantee or State recipient shall keep a copy of
each notification, inspection, and/or test report required by this
section for at least three years. The grantee or State recipient shall
provide to the local Public Housing Authority a copy of these documents
if the housing unit is or will be occupied by a section 8 assisted
family.
(8) Monitoring and enforcement. HUD Field Office monitoring of
rehabilitation programs under the Community Planning and Development
Monitoring Handbook (6509.2 REV 4) requires monitoring for compliance
with applicable program requirements for lead-based paint. In cases of
noncompliance, HUD may impose conditions or sanctions on grantees or
State recipients in accordance with this part to encourage prompt
compliance.
(9) Compliance with other program requirements, Federal, state and
local laws -- (i) Other program requirements. To the extent that rental
rehabilitation grant amounts are used in conjunction with other HUD
program assistance which may have more or less stringent lead-based
paint requirements, the more stringent requirements shall apply.
(ii) HUD responsibility. If HUD determines that a State or local
law, ordinance, code or regulation provides for lead-based paint testing
or hazard abatement in a manner which provides a level of protection
from the hazards of lead-based paint poisoning at least comparable to
that provided by the requirements of this section and that adherence to
the requirements of this subpart would be duplicative or otherwise cause
inefficiencies, HUD may deem compliance with such comparable State or
local requirements and procedures to constitute compliance with this
section. The HUD Field Office may make this determination initially,
subject to monitoring review by, or appeal to, the Regional Office and
Headquarters.
(iii) Grantee or State recipient responsibility. Nothing in this
section is intended to relieve any grantee or State recipient in the
programs covered by this section of any responsibility for compliance
with State or local laws, ordinances, codes or regulations governing
lead-based paint testing or hazard abatement.
(Approved by the Office of Management and Budget under control number
2506-0080)
(55 FR 20050, May 14, 1990, as amended at 55 FR 36612, Sept. 6, 1990)
24 CFR 511.16 Other Federal requirements.
Grantees and, where applicable, State recipients shall comply with
the following additional requirements:
(a) Labor standards. All laborers and mechanics (except laborers and
mechanics employed by a State or local government acting as the
principal contractor on the project) employed in the rehabilitation of a
project assisted under the Rental Rehabilitation Program that contains
12 or more dwelling units after rehabilitation shall be paid wages at
rates not less than those prevailing on similar rehabilitation in the
locality, if such a rate category exists, or other appropriate rate as
determined by the Secretary of Labor in accordance with the Davis-Bacon
Act (40 U.S.C. 276a -- 276a-5), and contracts involving their employment
shall be subject to the provisions, as applicable, of the Contract Work
Hours and Safety Standards Act (40 U.S.C. 327-333). (If CDBG funds are
used to finance certain costs for projects of 8 or more units, these
labor standards may apply (see 24 CFR 570.603).) If a project is subject
to Federal labor standards requirements, individuals are not permitted
to perform work thereon which is covered by such requirements without
compensation in accordance with such requirements, except that persons
who own a project in their own name may personally perform uncompensated
work on their own projects. Grantees, State recipients, owners,
contractors and subcontractors shall comply with applicable implementing
regulations in 29 CFR parts 1, 3, and 5.
(b) Environment and historic preservation. Section 104(g) of the
Housing and Community Development Act of 1974 and 24 CFR part 58, which
prescribe procedures for compliance with the National Environmental
Policy Act of 1969 (42 U.S.C. 4321-4361), and the additional laws and
authorities listed at 24 CFR 58.5.
(c) Handicapped accessibility. Section 504 of the Rehabilitation Act
of 1973, and implementing regulations at 24 CFR part 8, subpart C
governing accessibility of projects assisted under the Rental
Rehabilitation Program.
(d) Use of debarred, suspended, or ineligible participants. All
projects assisted under this part are subject to the provisions of 24
CFR part 24 relating to the employment, engagement of services, awarding
of contracts, or funding of any State or unit of general local
government, contractors, subcontractors, or project owners during any
period of debarment, suspension, or placement in ineligibility status.
(e) Pet ownership in housing for the elderly or handicapped. The
provisions of 24 CFR part 243 apply to any project assisted under this
part for which preference in tenant selection is given for all units in
the project to elderly or handicapped persons or elderly or handicapped
families, as defined in 24 CFR 812.2.
(f) Maintenance of drug-free workplace. The Drug-Free Workplace Act
of 1988 requires grantees of Federal agencies to certify that they will
provide drug-free workplaces. The implementing regulations at 24 CFR
part 24, subpart F, apply to grants under this part.
(g) Flood insurance. (1) Under the Flood Disaster Protection Act of
1973 (42 U.S.C. 4001-4128), a grantee may not approve the commitment of
rental rehabilitation grant amounts to a project located in an area
identified by the Federal Emergency Management Agency (FEMA) as having
special flood hazards, unless:
(i) The community in which the area is situated is participating in
the National Flood Insurance Program (see 44 CFR parts 59 through 79),
or less than a year has passed since FEMA notification regarding such
hazards; and
(ii) Flood insurance is obtained as a condition of approval of the
commitment.
(2) Grantees with projects located in an area identified by FEMA as
having special flood hazards are responsible for assuring that flood
insurance under the National Flood Insurance Program is obtained and
maintained.
(3) This paragraph 511.16(g) does not apply in the case of
allocations administered by a State under 511.51(a).
(Approved by the Office of Management and Budget under control number
2506-0080)
24 CFR 511.16 Subpart C -- Program Description
24 CFR 511.20 Program descriptions.
(a) Time for submission. Cities, urban counties, States, and
consortia that receive a rental rehabilitation grant on the basis of the
formula contained in subpart D must submit a Program Description to the
appropriate HUD Field Office within 45 days of the date of publication
of formula grant allocations for the fiscal year pursuant to 511.34. If
a State elects not to participate in the Rental Rehabilitation Program,
eligible units of general local government located in the State that
wish to participate in the HUD-administered State program under 511.52
must submit a Program Description to the responsible HUD Field Office
within 45 days of the date stated in a written notification from such
Field Office to such grantees of fund availability under the program for
the fiscal year. Upon request by a prospective grantee made within the
original 45-day period, the deadlines in this section may be extended
for good cause by not more than 30 days by the appropriate HUD Field
Office. If an additional extension is needed for good cause, HUD
Headquarters may grant a further extension.
(b) Program Description elements. Each prospective grantee shall
submit a Program Description signed by its chief executive officer or
designee consisting of Standard Form 424 and the following information
in narrative form:
(1) Program activities. A description of the grantee's proposed
rental rehabilitation program consisting of --
(i) The activities the grantee proposes to undertake for the fiscal
year; or
(ii) In the case of a State distributing rental rehabilitation grant
amounts to State recipients, the State's proposed method of distributing
its rental rehabilitation grant.
(2) Neighborhood selection. (i) For prospective city, urban county,
and consortium grantees, and where possible for prospective State
grantees, the Program Description shall identify the neighborhood(s) in
which assisted activities are to be carried out and provide information,
for each neighborhood, to indicate compliance with the requirements of
511.10 (c)(1) and (c)(2), including:
(A) A map indicating the boundaries of each neighborhood, or a
description of the boundaries of each neighborhood;
(B) Median income of the neighborhood; and
(C) Current rent levels in the neighborhood, and a statement as to
whether standard units are generally affordable to lower income families
and the likelihood of their continued affordability for lower income
families for the next five years; and
(ii) For prospective State grantees where neighborhoods have not been
identified at the time of submission of the Program Description,
indicate the types of neighborhood selection guidelines to be used to
ensure compliance with the requirements of 511.10 (c)(1) and (c)(2).
(iii) A grantee may complete or amend its Program Description during
the program year to identify or change neighborhoods or revise existing
neighborhoods, by documenting its Program Description file with the same
information that has been submitted to the responsible HUD Field Office
under 511.20(b)(2)(i). Such information shall be available for
monitoring by HUD.
(3) Lower income benefit. A description of how the grantee intends
to ensure that the applicable percentage of rental rehabilitation grant
amounts will be used for the benefit of lower income families, as
specified in 511.10(a). The description will indicate how the grantee
plans to achieve the specified level of lower income benefit.
(4) Use of rental rehabilitation grants for housing for families. A
description of the grantee's plan to ensure that an equitable share of
rental rehabilitation grant amounts will be used to assist in the
provision of housing designed for occupancy by families with children,
particularly families requiring three or more bedrooms. The grantee
will describe how it plans to give priority to projects containing three
or more bedroom units. If applicable, the grantee will include an
explanation of why it proposes to use less than 70 percent of its rental
rehabilitation grant for the rehabilitation of units containing two or
more bedrooms, as prescribed in 511.10 (b)(1) and (b)(2). Such
explanation shall include the citation to any local seismic standards
ordinance, if applicable.
(5) Selection of proposals. A statement of the procedures and
standards that will govern the selection of proposals by the grantee or,
in the case of a State distributing rental rehabilitation grant amounts
to State recipients, a statement of the State's guidelines for ensuring
that these recipients have procedures and standards governing their
selection of proposals. These procedures and standards must take into
account:
(i) The priorities in 511.10(g);
(ii) The extent to which the proposal represents the efficient use of
rental rehabilitation grant amounts;
(iii) The extent to which the proposal will minimize displacement of
lower income tenants in accordance with the displacement and tenant
assistance policy in 511.14(a); and
(iv) The extent to which the dwelling units involved will be
adequately maintained and operated with rents at the levels proposed.
This may consist of a description of plans for requiring a sufficient
equity interest, risk, or other involvement in selected projects by
private investors and lenders to ensure appropriate incentives to
maintain and operate units after rehabilitation.
(6) Financial feasibility. Evidence demonstrating the financial
feasibility of the proposed Rental Rehabilitation Program, including the
availability of non-Federal governmental and private resources. Where
the grantee has not identified specific projects at the time of
submission of the Program Description, and in the case of States
distributing rental rehabilitation grant amounts to State recipients,
this evidence will consist of the grantee's plans to ensure its
program's financial feasibility, including plans to obtain non-Federal
resources, including private financing.
(7) Neighborhood preservation. An estimate of the effect of the
proposed Rental Rehabilitation Program on neighborhood preservation.
(8) Schedule for committing rental rehabilitation grant amounts. A
quarterly schedule that demonstrates the grantee's plan to have its
rental rehabilitation grant for the fiscal year for which funding is
sought committed to specific local projects in accordance with the
following timetables:
(i) Except for States distributing grant amounts to State recipients,
at least 50 percent is so committed within 9 months of the execution of
the Grant Agreement by HUD and 100 percent is so committed within 12
months of the execution of the Grant Agreement by HUD; and
(ii) In the case of States distributing grant amounts to State
recipients, at least 35 percent is so committed within 9 months of the
execution by HUD of the Grant Agreement with the State and 100 percent
is so committed within 15 months of the execution by HUD of the Grant
Agreement with the State.
(9) Nondiscrimination, Equal Opportunity and Affirmative marketing.
A statement of policy and procedures to be followed by the grantee to
meet the requirements for nondiscrimination, equal opportunity and
affirmative marketing of units in rehabilitated projects as required in
511.13.
(10) Grantee's organizational structure. The name, address, and
telephone number of the organizational subdivision of the grantee
responsible for administering the Rental Rehabilitation Program, and the
name, address and telephone number of the grantee's contact person for
the program.
(11) PHA participation. A Memorandum of Understanding (MOU) signed
by the grantee and the appropriate PHA in accordance with 511.40 shall
be submitted, whenever possible, with the Program Description. For a
State RRP, it may be possible for the State to submit an MOU with its
Program Description if there is a State-wide PHA that will be making
Section 8 vouchers or certificates available for families in RRP
projects. However, if the State is working with State recipients which
will use local and/or State PHAs, the MOU should be a part of the
submission requirements for State recipients to participate in the State
RRP. If the PHA is not known or has not yet agreed to an MOU, the
grantee must include a statement describing its timetable for executing
an MOU with a PHA in accordance with 511.40 prior to commitment of
grant amounts to specific projects, or, in the alternative, how it will
meet the affordability and relocation requirements of the RRP without
the use of Section 8 resources.
(12) High cost. If applicable, an explanation of why higher average
per dwelling unit rental rehabilitation grant amounts for projects are
proposed, as provided in 511.11(e)(2)(ii).
(c) Certifications. The prospective grantee shall certify that:
(1) The submission of the Program Description is authorized under
State and local law (as applicable), and the grantee possesses the legal
authority to carry out the Rental Rehabilitation Program described
therein, in accordance with this part;
(2) Its Rental Rehabilitation Program was developed after
consultation with the public and its program description has been and
will be, made available to the public in accordance with 511.73(c);
(3) If applicable, its lower income benefit standard should be
reduced to 70 percent, as provided by 511.10(a)(2); this certification
will be accompanied by an explanation of the reason why the reduced
benefit standard is necessary, as provided in 511.10(a)(2);
(4) It will comply with the acquisition and relocation requirements
of the Uniform Relocation Assistance and Real Property Acquisition
Policies Act of 1970, and a written tenant assistance policy conforming
to the requirements of 511.14(a)(4) has been adopted;
(5) It will conduct and administer its Rental Rehabilitation Program
and, if applicable, ensure that State recipients conduct and administer
their Rental Rehabilitation Programs, in accordance with the
requirements of this part; and
(6) It will comply with the drug-free workplace requirements in
accordance with 24 CFR part 24 subpart F.
(Approved by the Office of Management and Budget under control number
2506-0080)
(55 FR 20050, May 14, 1990, as amended at 55 FR 36612, Sept. 6, 1990)
24 CFR 511.21 Review of program description and certifications.
(a) Review of program description. The responsible HUD Field Office
will review a grantee's Program Description, and will approve the
description if it contains information that the Field Office determines
to be satisfactory. The Field Office will make a good faith effort to
approve the description unless it makes one or more of the following
determinations:
(1) Timeliness. The submission was not received within the time
period established in 511.20(a), including any permissible extension.
If not so received, the Program Description will not be approved.
(2) Failure to submit annual performance report. If a grantee
participated in the RRP in the preceding fiscal year and has not
submitted the annual performance report for that year under 511.81(b),
the grantee's Program Description will not be approved.
(3) Program Description and certifications. The Program Description
does not contain evidence or information sufficient (on the basis of the
description or otherwise) to support each of its required elements under
511.20 (b) and (c). The grantee's certifications will be accepted by
the Field Office in the absence of independent evidence that tends to
challenge in substantial manner the subject matter of the certification.
If such independent evidence is not available to HUD, or if the
evidence or information submitted is not sufficient to support an
element of the description, the grantee may be required to furnish such
further information or assurances as HUD may consider necessary to find
the Program Description and certifications satisfactory.
(b) Review period. The HUD Field Office will make a good faith
effort to notify the grantee of any deficiencies in its Program
Description within 30 days after receipt. If the grantee is so
notified, the grantee shall have 20 days to submit the necessary
supporting information. If such information is not received in a timely
manner, or is insufficient, the HUD Field Office will not approve the
Program Description. The Field Office shall make a good faith effort to
advise the prospective grantee whether its Program Description is
approved, conditionally approved, or not approved within 15 days from
the date of receipt of the additional information. Failure of the Field
Office to act on the Program Description within this time period shall
not, however, constitute approval.
(c) Conditional grant. Where there is substantial evidence that
there has been, or there will be, a failure to meet the program and
other requirements of this part, HUD may approve a rental rehabilitation
grant subject to conditions which restrict the grantee's ability to use
all or a portion of the grant for a period of time, as specified in the
Grant Agreement. The Grant Agreement shall also specify the actions
necessary for the grantee to satisfy the conditions, which shall not
require any actions or approvals which are subject to HUD discretion.
Failure to satisfy a condition within the specified time may result in a
reduction or withdrawal of all or a portion of the specified grant
amount under subpart I of this part. The reasons for any conditional
grant will also be specified in the Field Office's grant approval letter
to the prospective grantee.
(d) Grant agreement. After Field Office approval under this section,
a rental rehabilitation grant is made by HUD execution of a Grant
Agreement, subject to execution by the grantee and satisfaction or
release of any applicable conditions specified therein before grant
amounts are disbursed. The grant shall be obligated on the date HUD
notifies the grantee of HUD's execution of the Grant Agreement in
accordance with this section.
24 CFR 511.21 Subpart D -- Allocation Formula and Reallocations
24 CFR 511.30 Allocation formula.
(a) General. HUD will allocate amounts available for rental
rehabilitation grants for any fiscal year to cities having populations
of 50,000 or more, urban counties, consortia (as described in subpart
G), and States on the basis of the formula contained in this section.
Allocations are subject to the minimum allocation described in 511.31.
Notice of the formula allocations is made by Federal Register
publication as provided in 511.34.
(b) Source of data to be used. The data to be used for calculating
the specific allocation for each entity referred to in paragraph (a) of
this section are taken from data supplied by the Bureau of the Census,
based upon the latest decennial census available to HUD prior to the
start of the fiscal year, adjusted for boundary changes and annexations.
(c) Formula factors. The formula for determining allocations under
this section uses three specific factors:
(1) Rental units where the household head is at or below the poverty
level, as defined by the Office of Management and Budget;
(2) Rental units built before 1940 where the household head is at or
below the poverty level; and
(3) Rental units with at least one of four problems (overcrowding,
incomplete kitchen facilities, incomplete plumbing, or high rent costs).
Overcrowding is a condition that exists if there is more than one
person per room occupying the unit. Incomplete kitchen facilities are
those lacking a sink with running water, a range, or a refrigerator.
Incomplete plumbing exists in a unit that lacks hot and cold piped
water, a flush toilet, or a bathtub or shower inside the unit for the
exclusive use of the occupants of the unit. High rent costs occur when
more than 30 percent of household income is used for rent.
(d) Calculating the formula. (1) The formula is an equation with the
data for each entity referred to in paragraph (a) of this section
expressed as a numerator for each factor and the total national data for
each factor expressed as a denominator. This ratio is then multiplied
by the amount available for allocation. Data for areas eligible for
assistance under title V of the Housing Act of 1949 (title V-eligible
area data) are excluded from the data for a State or a consortium.
Title V-eligible area data for States and consortia are also excluded
from the total national data.
(2) The allocation for each entity is calculated as follows:
(i) The ratio of the number of rental units where the household head
is at or below the poverty level within the jurisdiction of the entity
to the number of such rental units using the total national data,
multiplied by .25; plus
(ii) The ratio of the number of rental units built before 1940 where
the household head is at or below the poverty level within the
jurisdiction of the entity to the number of such rental units using the
total national data, multiplied by .25; plus
(iii) The ratio of the number of rental units with at least one of
the four problems identified in paragraph (c)(3) of this section within
the jurisdiction of the entity to the number of such rental units using
the total national data, multiplied by .50; and
(iv) The sum of the ratios in paragraphs (d)(2)(i), (d)(2)(ii), and
(d)(2)(iii) of this section, multiplied by the amount available for
allocation to determine the specific allocation for each entity.
24 CFR 511.31 Minimum allocation amount.
(a) Except as provided in paragraph (b) of this section, the minimum
allocation for any city, urban county, or consortium determined under
the formula contained in 511.30 for any fiscal year is $50,000. A
formula allocation that is below $50,000 (unless it is accepted by a
city, urban county, or consortium under paragraph (b) of this section)
will be added to the allocation for the State Program in which the city,
urban county, or consortium is located. A city, urban county, or a
jurisdiction in a consortium with a formula allocation below $50,000 may
participate in the State Program under subpart F of this part, if it did
not elect to accept its formula allocation under paragraph (b) of this
section.
(b) A city, urban county, or consortium that received a grant based
on a formula allocation in the preceding fiscal year, and has a formula
allocation in the current fiscal year that is less than $50,000, may
elect to accept (subject to HUD approval of its Program Description
under 511.21) its formula allocation by submitting written notification
to HUD of its decision to do so within 30 days of the date of
publication in the Federal Register of formula allocations under
511.34. If such a city, urban county, or consortium does not notify HUD
within this period, HUD will regard the city, urban county, or
consortium as having elected not to accept its formula allocation and
will notify the appropriate State of its additional allocation. This
election procedure does not affect the deadline for submitting Program
Description under 511.20(a).
24 CFR 511.33 Reallocation of rental rehabilitation grant amounts.
(a) General. Rental rehabilitation grant amounts may become
available for reallocation by HUD as a result of factors such as failure
of a city, urban county, or consortium to receive a grant based on a
formula allocation, deobligation of rental rehabilitation grant amounts
based on the progress of a grantee in carrying out its Rental
Rehabilitation Program, as provided in paragraph (c) in this section,
and actions based upon reviews and audits as provided in Subparts H and
I of this part.
(b) Reallocation of rental rehabilitation grant amounts. HUD will
reallocate rental rehabilitation funds that are available in any fiscal
year to such grantee or grantees as HUD determines to be appropriate to
promote the expeditious use of grant amounts, consistent with the sound
development and administration of grantees' Rental Rehabilitation
Programs. Grant amounts reallocated may come from any fiscal year's
appropriation for which amounts are available for reallocation.
Reallocations will generally be made among grantees within the various
HUD Regional Office jurisdictions before reallocations among Regional
Offices are considered.
(c) Deobligations of uncommitted grant amounts. HUD may deobligate
rental rehabilitation grant amounts that are not committed to specific
local projects in conformity with the schedule submitted by the grantee
as part of its Program Description. In connection with any such
deobligation, HUD may also deobligate any unutilized grant amounts set
aside for administrative expenses in the grantee's program account under
the C/MI System. Before deobligating grant amounts, HUD will consult
with the affected grantee and take into account factors such as the
timing of the grantee's program year; a reasonable start-up time for
implementing a new program, if applicable; the timing of State
distributions to State recipients, if applicable; the timing of
expected project approvals for projects in the grantee's pipeline;
climatic or other considerations affecting rehabilitation work
schedules; and other relevant considerations. HUD will deobligate any
rental rehabilitation grant amounts that are not committed to specific
local projects within 2 years of the date of obligation of the grant
under 511.21(d) (3 years in the case of a State that distributes rental
rehabilitation grant amounts to State recipients) or expended for
eligible costs within 4 years of such date of obligation (5 years in the
case of a State that distributes rental rehabilitation grant amounts to
State recipients). For grants obligated before June 14, 1990, HUD will
deobligate any grant amounts that are not committed to specific local
projects within two years of the grantee's execution of the Grant
Agreement for the fiscal year in question (3 years in the case of a
State that distributes rental rehabilitation grant amounts to State
recipients) or expended for eligible costs within four years of such
date of execution of the Grant Agreement by the grantee (5 years in the
case of a State that distributes rental rehabilitation grant amounts to
State recipients). HUD, on a case-by-case basis, may extend for an
additional year any of the time periods referred to in this section.
None of the time periods referred to in this section are extended by any
suspension of project set-ups or other remedial action imposed by HUD
under this part.
(d) Reallocation of rental rehabilitation grant amounts at the end of
fiscal year. Rental rehabilitation grant amounts that are not obligated
at the end of any fiscal year may be added to the amount available for
formula allocation under this subpart D for the succeeding fiscal year,
or may be made available for reallocation in the succeeding fiscal year
under 511.33(b), as HUD determines appropriate.
24 CFR 511.34 Publishing notice of formula allocations.
HUD will annually publish in the Federal Register a notice of formula
allocations that will announce:
(a) The formula allocation, as determined under 511.30, for each
State, city, urban county, and consortium that is eligible to receive a
formula allocation; and
(b) The respective deadlines for submitting Program Descriptions (see
511.20) for grants based upon formula allocations.
24 CFR 511.34 Subpart E -- Memorandum of Understanding
24 CFR 511.40 Memorandum of Understanding.
(a) If and when required under 511.20(b)(11), the grantee and each
participating PHA shall execute a Memorandum of Understanding (MOU) for
each year's grant setting forth the responsibilities of each party and
the procedures to be followed with respect to cooperation, coordination,
and communication concerning the use of housing vouchers and
certificates with rental rehabilitatyion grant amounts in accordance
with HUD requirements. Where a State is distributing rental
rehabilitation grant amounts to State recipients, the MOU may be
executed by the State recipient the appropriate PHA.
(b) The MOU is to set forth the agreements between the two agencies
responsible for administering the rental rehabilitation and Section 8
subsidies and shall address issues relating to:
(1) The extent to which the PHA has chosen to use its authority to
provide assistance under the Section 8 Certificate Program or the
Section 8 Housing Voucher Program to lower income families residing in
projects to be rehabilitated with rental rehabilitation grant amounts;
(2) The grantee's or State recipient's submission to the PHA of its
schedule(s) of projects committed and anticipated completion dates;
(3) Responsibility for property inspections;
(4) Availability of and timing for issuance of Section 8 housing
vouchers and/or certificates;
(5) Responsibility for tenant interviews;
(6) The PHA's agreement to provide vouchers and/or certificates to
families living in RRP projects; and
(7) The provision of information by the PHA for grantee's or State
recipient's reports to HUD.
(Approved by the Office of Management and Budget under control number
2506-0080)
(55 FR 20050, May 14, 1990, as amended at 55 FR 36612, Sept. 6, 1990)
24 CFR 511.40 Subpart F -- State Program
24 CFR 511.50 State election to administer a rental rehabilitation
program.
(a) Rental rehibilitation grant allocations for States, determined
under subpart D for any fiscal year, will be administered by the State
(as provided in 511.51) or by HUD (as provided by 511.52), at the
election of the State. HUD will administer the allocation for any State
that notifies the appropriate HUD Field Office of its election not to
administer its allocation within 30 days of the date of publication of
allocations for the fiscal year under 511.34. Further, if a State does
not submit a Program Description pursuant to 511.20(a), HUD will deem
the State to have elected not to administer the program for the fiscal
year. State allocations may be used to carry out eligible
rehabilitation activities in accordance with the requirements of this
part in units of general local government that do not receive
allocations under subpart D and in cities and urban counties whose
allocations are below the minimum amount specified in 511.31, but may
not be used in areas that are eligible for assistance under title V of
the Housing Act of 1949, except as specified in paragraph (b) of this
section.
(b) For Fiscal Years 1988 through 1991, uncommitted prior year funds
may be used by State grantees, by units of general local government
receiving funds from State grantees and by units of general local
government participating in a HUD-administered State Program in areas
eligible for assistance under title V of the Housing Act of 1949. This
authority to enter into commitments with owners for projects in title
V-eligible areas expires on September 30, 1991.
(Approved by the Office of Management and Budget under control number
2506-0080)
(55 FR 20050, May 14, 1990, as amended at 55 FR 36612, Sept. 6, 1990)
24 CFR 511.51 State-administered program.
(a) Type of program. A State that elects to administer its
allocation in accordance with 511.50 may, in its discretion, use all or
part of its rental rehabilitation grant amounts either:
(1) To carry out its own Rental Rehabilitation Program without the
active participation of units of general local government;
(2) To distribute grant amounts to State recipients which
independently select, enter into commitments with owners for, and manage
projects; or
(3) To carry out mixed programs in which both the State and all or
some units of general local government each perform specified program
functions.
(b) Sharing grant amounts for administration. In programs under
paragraphs (a)(2) and (a)(3) of this section, a State must share its
grant amounts which are available for administrative costs with units of
general local government administering the program with the State, under
a written agreement as required by 511.71.
(c) State Program requirements. State grantees shall be responsible
for administering their rental rehabilitation grant amounts in
accordance with all requirements of this part and other applicable laws,
notwithstanding their use of units of general local governments to
perform program functions under paragraph (a)(2) or (a)(3) of this
section. In addition, States that use units of general local government
to perform program functions shall:
(1) Ensure that units of general local government carry out their
Rental Rehabilitation Program in accordance with requirements of this
part and other applicable laws. States shall include in their
agreements with their units of general local government such additional
provisions as may be appropriate to ensure such compliance and to enable
the State to carry out its responsibilities under this part, including
the withdrawal and reallocation of rental rehabilitation grant amounts
based on unit of general local government noncompliance (including State
recipient failure to meet the schedule submitted by the State under
511.20(b)(8)); and
(2) Conduct such reviews and audits of their units of general local
government as may be appropriate to determine whether units of general
local government, including State recipients, have carried out their
programs in accordance with the requirements of this part, whether they
have done so in a timely manner, and whether they have a continuing
capacity to do so in a timely manner.
(d) State administration of rental rehabilitation grant program for
cities receiving a formula allocation. A State may administer the
Rental Rehabilitation Program for a city with a population over 50,000
receiving a formula allocation under subpart D of this part if the State
and city enter into a written agreement so providing for any fiscal
year. If a State does agree with a city to administer the city's rental
rehabilitation grant allocation, HUD will treat the State as the grantee
for all purposes under this part. However, the grant shall be
administered and accounted for separately from any other rental
rehabilitation grant amounts that the State has received on its own
account or is administering for any other city and the substantive and
procedural requirements for the grant under this part shall be those
applicable to grants to cities, not States. In addition, remedial
actions under this part with respect to the grant the State is
administering for a city shall not apply to any other rental
rehabilitation grant amounts the State has received or is administering.
(Approved by the Office of Management and Budget under control number
2506-0080)
24 CFR 511.52 HUD-administered program.
(a) General. If a State elects not to administer its allocation for
any fiscal year, the responsible HUD Field Office will make grants to
units of general local government located within the State, for use in
accordance with the provisions of this part.
(b) Selection criteria. In selecting among potential grantees that
submit Program Descriptions that are otherwise approvable under 511.21,
the responsible HUD Field Office will consider factors such as:
(1) The grantee's capacity to carry out an effective Rental
Rehabilitation Program, based on its past performance in administering
housing and community development programs and its managerial capacity;
(2) The grantee's need to rehabilitate rental housing for occupancy
by lower income families; and
(3) The existence of a PHA able and willing to administer vouchers
and certificates in support of the grantee's Rental Rehabilitation
Program.
(c) HUD administration of Rental Rehabilitation Programs for cities
receiving a formula allocation. If HUD is administering a State
allocation under this section, a city that is located in the State and
is eligible to receive a formula allocation under subpart D may request
HUD to administer its Rental Rehabilitation Program. Following such
request, the city and HUD may negotiate and execute an agreement
defining the respective roles of the city and of HUD in administering
the Rental Rehabilitation Program based upon local priorities,
objectives, management capacity and the management capacity available to
HUD to administer the city's program.
24 CFR 511.52 Subpart G -- Consortia
24 CFR 511.65 Consortia.
(a) General. Consortia of units of general local government that
meet the requirements of this section may qualify for a formula
allocation determined under subpart D of this part for any fiscal year.
To be eligible, a consortium must:
(1) Be comprised of units of general local government that are
geographically proximate, located in the same State, not otherwise
eligible for a formula allocation for that year, and located outside
areas that are eligible for assistance under title V of the Housing Act
of 1949;
(2) Have a combined population of 50,000 or more among its
participating units of general local government and be eligible for a
formula allocation meeting the minimum amount specified in 511.31;
(3) Indicate to HUD its intention to be considered a consortium for
purposes of this section at least 60 days before the start of the fiscal
year;
(4) Have executed an agreement among its members designating one
participating unit of general local government as the grantee for
purposes of this part; and
(5) Have executed memoranda of understanding with all participating
PHAs governing the use of vouchers and certificates in accordance with
HUD requirements.
(b) Deduction of consortium allocation from State amounts. The
amount of the formula allocation for a consortium for any fiscal year
will be deducted from the formula allocation for that year for the State
in which it is located.
24 CFR 511.65 Subpart H -- Grant Administration
24 CFR 511.70 Responsibility for grant administration.
Grantees are responsible for ensuring that rental rehabilitation
grants are administered in accordance with the requirements of this part
and other applicable laws. A grantee may enter into a written agreement
with another unit of State or local government or with a
non-governmental entity to administer specified functions under its
Rental Rehabilitation Program to the extent not prohibited by HUD. If
the grantee is contracting with a non-governmental entity to administer
its program or to provide other services, such as cash management
responsibilities, the grantee shall follow the procurement standards of
24 CFR 85.36. The use of other governmental units or private contractors
does not relieve the grantee of its responsibility for ensuring
compliance with this part and other applicable laws.
24 CFR 511.71 Administrative costs.
(a) Maximum amount. Any grantee may use not to exceed 10 percent of
the grant amount initially obligated to the grantee for Federal Fiscal
Year 1988 and later fiscal years for administrative costs eligible under
paragraphs (b) and (c) of this section. Eligible grantees may draw down
funds to pay for eligible administrative costs through HUD's C/MI
System.
(b) Eligibility. Eligible administrative costs are reasonable and
necessary costs, as described in OMB Circular A-87, incurred by the
grantee itself, or by a unit of general local government pursuant to a
written cost-sharing agreement with a State grantee (see 511.51(b)), in
carrying out the Rental Rehabilitation Program in accordance with this
part. Administrative costs do not include costs of rehabilitation which
are incurred by and charged to project owners as eligible project costs
under 511.10(f)(2).
(c) Written cost-sharing agreement. A State grantee shall determine
the amount of its rental rehabilitation grant that it will permit to be
used for administrative expenses, not to exceed the maximum permitted by
this section. The State grantee shall share the amount of its rental
rehabilitation grant designated for administrative expenses with units
of general local government that incur eligible administrative costs in
carrying out the Rental Rehabilitation Program, whether the unit of
general local government receives a distribution of funds from the State
or selects and manages projects independently as a State recipient or
whether it performs less comprehensive functions by agreement with the
State. Before any eligible administrative expenses are incurred by a
unit of general local government under a State's grant, the cost-sharing
arrangement shall be specified in a written agreement between the State
grantee and each unit of general local government that receives payment
from the State for administrative expenses under this part. This
agreement shall describe (whether very generally or more specifically)
the functions that the unit of general local government shall perform
and the terms and conditions under which the unit of general local
government participates in the program, including the procedures by
which the unit of general local government's compensation for its
administrative expenses incurred in performing the authorized functions
is to be calculated and paid. HUD will not review the relative sharing
of administrative expenses between the State and affected units of
general local government, but pursuant to 511.74 and 511.80, it will
review and audit the State's program on the eligibility of
administrative expenses paid with program funds.
(d) Allocation of benefit. Rental rehabilitation grant amounts used
for program administration will be deemed to meet program requirements
imposed on a percentage of the annual grant basis, such as lower income
benefit and use of rental rehabilitation grants for housing for families
with children, in the same proportion as the grant amounts for a grant
year which are used for eligible project costs meet the grant
requirements. For example, if 70 percent of the grant amounts used for
project costs for Fiscal Year 1989 benefit lower-income families, then
70 percent of the Fiscal Year 1989 grant amounts spent for
administrative costs will be deemed to benefit lower-income persons.
24 CFR 511.72 Applicability of uniform Federal administrative
requirements.
Grantees, State recipients and their contractors shall comply with
the requirements and standards of OMB Circular No. A-87, ''Principles
for Determining Costs Applicable to Grants and Contracts with State,
Local and Federally recognized Indian Tribal Governments,'' /1/ OMB
Circular A-128, ''Audits of State and Local Governments'' (implemented
at 24 CFR part 44), and with 24 CFR part 85, ''Uniform Administrative
Requirements for Grants and Cooperative Agreements to State and Local
Governments,'' except for: 85.10, 85.11, 85.25, 85.31, 85.40(b),
85.41, and 85.50. In lieu of 85.25 and 85.50, HUD has adopted 511.76
and 511.77, respectively, of this part.
/1/ OMB Circular No. A-87 is available from HUD Field Offices.
24 CFR 511.73 Grantee records.
(a) Records to be maintained. Each grantee shall maintain records as
specified by HUD that clearly document its performance under each
requirement of this part. States distributing rental rehabilitation
grant amounts to State recipients shall also ensure that their
recipients maintain such records to document each recipient's
performance. The records required by this section shall, at a minimum,
include the following:
(1) Records required to comply with 511.75;
(2) Data on the racial, ethnic, gender, and income level
characteristics of
(i) Tenants occupying units before rehabilitation;
(ii) Tenants moving from and (initially after rehabilitation) into
projects assisted under this part;
(iii) Applicants for tenancy within 90 days following completion of
rehabilitation assisted under this part; and
(iv) Owners of the projects rehabilitated; and
(3) Data indicating the race and ethnicity of households displaced as
a result of program activities, and, if available, the address and
census tract of the housing units to which each displaced household
relocated.
(b) Retention of records. Records required to be maintained under
paragraph (a) of this section shall be retained for a period of three
years from the date of final closeout of the rental rehabilitation
grant.
(c) Public disclosure. Documents relevant to a grantee's Program
Description shall be made available for public review upon request at
the grantee's office during normal working hours.
(d) Federal access to records. The Secretary, the Inspector General
of HUD, the Comptroller General of the United States, or any of their
duly authorized representatives, shall have access to all books,
accounts, reports, files, and other papers or property of grantees,
State recipients, and their contractors pertaining to rental
rehabilitation grant amounts for the purpose of making surveys, audits,
examinations, excerpts, and transcripts. Grantees or, where applicable,
State recipients shall ensure that their agreements with owners require
the owners to provide similar access to their records pertaining to the
use of rental rehabilitation grant amounts.
(Approved by the Office of Management and Budget under control number
2506-0080)
24 CFR 511.74 Audit.
The financial management systems used by grantees and, where
applicable, State recipients shall provide for audits in accordance with
24 CFR part 44.
24 CFR 511.75 Disbursement of rental rehabilitation grant amounts:
Cash and Management Information System.
(a) General. Rental Rehabilitation grants are managed through HUD's
C/MI System for the Rental Rehabilitation Program. The C/MI System is a
computerized system which manages program funds, disburses grant
amounts, and collects and reports data on properties and tenants
assisted under the Program.
(b) Project Set-Up. (1) After the grantee executes the Grant
Agreement, complies with the requirements under part 58 of this title
for release of funds, and submits the appropriate security documents,
the grantee may identify (set-up) specific local projects in the C/MI
System. State recipients are also granted access to the C/MI System for
projects upon designation by the State and submission of the appropriate
security documents. Within 12 calendar days of project set-up, grantees
and State recipients are required to submit a Pre-Rehabilitation Report
to HUD for each project set-up in the C/MI System. Until an acceptable
Pre-Rehabilitation Report is received and entered in the C/MI System,
grant amounts for the project are not considered ''committed,'' as
defined in 511.2, and, therefore, are subject to deobligation to the
extent authorized by 24 CFR 511.33(c).
(2) Beginning in Fiscal Year 1991, if Pre-Rehabilitation Reports are
not received within 20 days of the project set-up call, the project will
be cancelled automatically by the C/MI System. In addition, projects
which have been committed in the C/MI System for 6 months without an
initial disbursement of funds will be automatically cancelled by the
C/MI System.
(c) Disbursement of rental rehabilitation grant amounts. After an
acceptable Pre-Rehabilitation Report is entered into the C/MI System,
obligated grant amounts may be drawn down for the project by the grantee
or State recipient by electronic funds transfer to the designated
depository institution of the grantee or State recipient within 48 to 72
hours of the disbursement request. Grant amounts for eligible
administrative costs may be similarly drawn down by grantees by
electronic funds transfer to their designated depository institutions,
but State recipients are not permitted to draw down State grant amounts
for administrative expenses. Any drawdown is conditioned upon the
submission of satisfactory information by the grantee or State recipient
about the project or the administrative expenses and compliance with
other procedures specified by HUD in HUD's forms and issuances
concerning the Rental Rehabilitation Program Cash and Management
Information System. Copies of these forms and issuances may be obtained
from HUD Field Offices. Drawdowns shall be requested by the grantee or
State recipient as closely as possible to the time they are needed by a
grantee or State recipient and the owner to pay eligible project costs
or by a grantee to pay eligible administrative costs. Drawdowns for
project costs shall be requested only for work or services that have
been satisfactorily performed, or materials that are acceptable. After
receipt in the grantee or State recipient's depository account, grant
amounts for project costs shall immediately be disbursed by the grantee
or State recipient and the owner in payment for eligible project costs
and shall not be disbursed at any time, relative to a project's matching
funds, in any greater proportion than the proportion of rental
rehabilitation grant amounts to matching funds for the project.
(d) Payment vouchers. As post-documentation of each drawdown, a
grantee or State recipient must submit to HUD a payment voucher, for
each drawdown made by HUD, in the form required for the C/MI System. If
the drawdown was for eligible project costs and the payment voucher is
not received within ten calendar days of the drawdown, the grantee or
State recipient will be suspended from setting up new projects until the
required payment voucher is received by HUD. If the drawdown was for
administrative costs and the payment voucher is not received within ten
calendar days of the drawdown, the grantee will not be allowed to make
another drawdown for administrative costs until the payment voucher is
received.
(e) Submission of project completion reports. After the final draw
for a project, a Project Completion Report must be submitted to HUD
within 90 days of the drawdown request. However, for projects
rehabilitated pursuant to 511.11(c)(2) (publicly owned project at the
time of commitment), the Project Completion Report must be submitted
within 90 days of the final draw, but not later than 2 years and 90 days
after the date of commitment. If a satisfactory Project Completion
Report is not submitted by the due date, HUD will suspend further
project set-ups for the grantee or State recipient. Project set-ups
will remain suspended until a satisfactory Project Completion Report is
received and entered into the C/MI System.
(Approved by the Office of Management and Budget under control number
2506-0080)
24 CFR 511.76 Program income.
(a) General. Grantees and State recipients are neither encouraged to
earn nor discouraged from earning program income in using rental
rehabilitation grant amounts under this part.
(b) Definition of program income. Program income means gross income
received by the grantee or State recipient (or by another party at the
direction of the grantee or State recipient) which is directly generated
from the use of rental rehabilitation grant amounts. Primarily, it
includes but is not limited to, the following:
(1) Repayments of principal (whether in installments or a lump-sum)
and any interest or penalty assessment, under the terms of the loan
commitment or other project assistance agreement between the owner and
the grantee or State recipient, including repayments, pursuant to
511.11(d)(3), of the rental rehabilitation grant assistance by the owner
after completion of rehabilitation; and
(2) Interest earned on program income pending its disposition.
Grantees or State recipients are not authorized to deduct costs incident
to the generation or management of income from gross income for purposes
of determining program income. Governmental fees and taxes, including
income taxes, property taxes, special assessments, transfer taxes,
recording fees and other normal governmental revenues, do not constitute
program income if they are imposed by generally applicable law,
regulation, or ordinance and are not imposed in consideration of the
project's receipt of assistance under this part. Program income also
does not include grant amounts required to be returned to HUD as a
result of cancellation of a project before completion, or interest on
those grant amounts, or any interest earned by the grantee or State
recipient or grant funds after drawdown and before disbursement for
eligible costs. (For disposition of such interest, see 24 CFR
85.21(i).)
(c) Eligible uses. Program income may be used only as prescribed in
paragraphs (c)(1) and (c)(2) of this section.
(1) Program income may be used for any activity which is eligible
under this part, except that program income may not be used to pay for
administrative costs, as described at 511.71. In particular, the total
of rental rehabilitation grant amounts and Rental Rehabilitation Program
income used for any project (except under 511.76(c)(2)) may not exceed
the amount per unit allowed under 511.11(e)(2) or 50 percent of the
total eligible project costs (except as noted in 511.11(e)(1)).
(2) Program income may also be used to provide rental assistance to
lower income tenants in properties rehabilitated through the RRP. This
includes the use of program income to pay for administrative costs
associated with the provision of rental assistance but not to exceed the
amount allowed for administrative fees in the Housing Voucher Program
authorized under section 8(o) of the United States Housing Act of 1937,
42 U.S.C. 1437f. In order to use program income for rental assistance,
the grantee or State recipient must --
(i) Use the funds to assist lower income tenants who initially occupy
properties rehabilitated with rental rehabilitation grant amounts or
rental rehabilitation program income;
(ii) Have a written policy which is available to the public stating
that program income will be so used and specifying who is eligible to
receive such assistance; and
(iii) Have an agreement with the PHA stating that the PHA will
utilize the program income to provide rental assistance in accordance
with the written policy.
(d) Timing the use of program income. Grantees and State recipients
shall not commit available rental rehabilitation grant amounts to
specific local projects if sufficient program income is on hand and
available to fund the project, or a substantial portion of the project.
In order to avoid possible over commitment of funds, grantees and State
recipients shall not anticipate the receipt of program income and enter
into binding commitments with owners cumulatively exceeding the total
amount of program income on hand plus uncommitted rental rehabilitation
grant amounts.
(e) Accounting for and reporting program income. Program income
shall be accounted for and reported in the grantee's Annual Performance
Report under 511.81(b) and in the Cash and Management Information
System under 511.75, in the manner prescribed by HUD.
(f) Authority of State grantees. States administering rental
rehabilitation grants have discretion to choose whether program income
is to be earned at all or is to be paid to or retained by the State or
paid to or retained by the State recipient. The State's determination
should be contained in a written agreement between the State and its
State recipients. However, once earned, program income must be used and
accounted for in accordance with this section by the State or by the
State recipient, as applicable.
(g) Authority of urban counties. Because the configuration of an
urban county may change from time to time, particularly at the time of
requalification of an urban county in the Community Development Block
Grant program, special provisions must be made for urban county program
income. The urban county may determine whether program income generated
by a project located in a unit of general local government which, for
whatever reason, no longer participates in the urban county shall be
retained by the urban county for its RRP or by the unit of general local
government. However, urban county program income must otherwise be used
and accounted for by the urban county and the unit of general local
government in accordance with this section.
(h) Program closeout and disposition of program income. Program
income must be accounted for by the grantee when a Rental Rehabilitation
Program is completely closed out for all years. Program ''closeout''
will occur when the following conditions have been met: All grant funds
from all program years (excluding program income) have been expended;
the grantee and, if applicable, its State recipients do not expect (or
have elected not) to receive any additional rental rehabilitation grant
amounts, and the annual performance report covering the last program
year has been submitted to HUD. Program income shall be treated in the
following manner before and after program closeout:
(1) Program income in the amount of $5,000 or more shall be used for
activities eligible under this section; and
(2) Program income of less than $5,000 on hand at program closeout or
any program income received after program closeout is not subject to the
other provisions of this section, but must be used for activities that
would be eligible under the CDBG Program (24 CFR part 570) or
511.76(c).
24 CFR 511.77 Grant closeout.
Each individual fiscal year rental rehabilitation grant will be
closed out when the following criteria have been met:
(a)(1) All grant amounts for the grant to be closed out have been
drawn down and expended for completed projects and/or administrative
costs, or grant amounts not drawn down and expended have been
deobligated by HUD, and
(2) HUD no longer has authority to obligate funds for the fiscal year
grant being closed.
(b) Project Completion Reports for all projects utilizing grant
amounts from the fiscal year grant(s) to be closed out have been
submitted and entered into the C/MI System.
(c) The required reviews and audits to determine whether grantees
have satisfied the terms of their grant agreement have been made.
Closeout is contingent upon the receipt of the grantee's most recent
audit report and audit reports of State recipients, where applicable.
For closeout of the grant to proceed, the most recent audit report(s)
must be free of any outstanding findings related to the RRP grant to be
closed. The audit(s) of the grantee and State recipients, where
applicable, should cover all grant amounts from all fiscal years which
are to be closed out except as noted in paragraph (c)(2) of this
section.
(1) The Single Audit Act prohibits requiring a grantee or State
recipient to obtain an audit at its expense covering only the Rental
Rehabilitation Program. (HUD still has the authority to conduct an
audit or to contract with an independent public accountant to conduct an
audit of the grant. However, HUD must pay for the audit.)
(2) When the previous audit(s) fail to cover all grant amounts under
the Grant Agreement, the program may still be closed out, provided the
grantee agrees in writing to remit to HUD any costs questioned by a
subsequent audit that are disallowed by HUD. This procedure is expected
to be used in those cases when both the grantee and HUD want to proceed
with the closeout before the next periodic single audit is conducted
covering the remaining grant amounts not already audited.
(d) The HUD Field Office has conducted an on-site monitoring of the
grantee and has determined that the grantee's performance, with respect
to the grant(s) to be closed out, is satisfactory and is in compliance
with RRP statutory and regulatory requirements, including 511.10(a) and
511.10(b). The monitoring visit will also be used to verify C/MI System
data reflected in the Closeout Report and to reconcile any outstanding
discrepancies which may exist between C/MI System data and grantee or
State recipient records. No grant may be closed where outstanding
monitoring findings exist or where a determination of compliance cannot
be made.
(Approved by the Office of Management and Budget under control number
2506-0080)
24 CFR 511.77 Subpart I -- Grantee Performance: Review, Reporting and Corrective or Remedial Actions
24 CFR 511.80 Performance review.
(a) General. In addition to reviewing grantee performance for
purposes of making reallocations under 511.33, HUD will review the
performance of grantees in carrying out their responsibilities under
this part whenever determined necessary by HUD, but at least annually.
In conducting performance reviews, HUD will rely primarily on
information obtained from the grantee's and, as appropriate, the State
recipient's records and reports, findings from on-site monitoring, audit
reports, and information generated from the C/MI System. Where
applicable, HUD may also consider relevant information pertaining to a
grantee's or State recipient's performance gained from other sources,
including citizen comments, complaint determinations and litigation.
Reviews to determine compliance with specific requirements of this part
will be conducted as necessary, with or without prior notice to the
grantee or State recipient. Comprehensive performance reviews under the
standards in 511.80(b) will be conducted after prior notice to the
grantee.
(b) Standards for comprehensive performance review. Grantee
performance shall be comprehensively reviewed periodically, as
prescribed by HUD, to determine:
(1) For grantees that are units of general local government or States
administering their own rental rehabilitation grant programs, whether
the grantee:
(i) Has carried out its activities in a timely manner, including the
commitment of rental rehabilitation grant amounts to specific local
projects in accordance with the schedule contained in its Program
Description, as provided in 511.20(b)(8), and the completion of
projects in accordance with 511.11(a);
(ii) Has carried out its activities in accordance with the
requirements of this part; and
(iii) Has a continuing capacity to carry out its activities in
accordance with this part and in a timely and cost-effective manner; or
(2) For grantees that are States distributing rental rehabilitation
grant amounts to State recipients, whether the State:
(i) Has distributed these grant amounts in a timely manner and in
accordance with the requirements of this part; and
(ii) Has made such reviews and audits of its recipients as may be
appropriate to determine whether they have satisfied the requirements of
paragraph (b)(1)(i) through (b)(1)(iii) of this section.
24 CFR 511.81 Grantee reports to HUD.
(a) Management reports. Grantees shall submit management reports on
their Rental Rehabilitation Program in such format and at such time as
HUD may prescribe.
(b) Annual performance report -- (1) Submission. A grantee shall
submit an annual performance report on its rental rehabilitation
activities to the responsible HUD Field Office at such time as HUD may
prescribe. Single copies of the report shall be provided to the public
upon request at no charge.
(2) Elements of the annual performance report. The report shall
contain such information and be in such form as HUD may prescribe, and
will include at least the following:
(i) An assessment by the grantee of the relationship of the
activities carried out under its Rental Rehabilitation Program to the
objectives of assisting in the provision of decent, safe, and sanitary
housing at rents that are and are likely to remain affordable to lower
income families (including large families with children);
(ii) An analysis of the program's cost effectiveness, the type and
income level of tenants who benefit from the Rental Rehabilitation
Program, and any displacement resulting from the program;
(iii) An assessment of the effectiveness of the affirmative marketing
efforts prescribed in 511.13(b);
(iv) An assessment of the results of the efforts to promote the use
of minority- and women-owned businesses prescribed by 511.13(c); and
(v) Where appropriate, a statement of additional actions planned to
improve performance in the use of minority- and women-owned businesses.
(Approved by the Office of Management and Budget under control number
2506-0080)
24 CFR 511.82 Corrective and remedial actions.
(a) General. HUD will use the procedures in this section in
conducting the performance review as provided in 511.80(a) and in
taking corrective and remedial actions.
(b) Performance review. (1) If HUD determines preliminarily that the
grantee has not met the performance review standards in 511.80, the
grantee will be given notice of this determination and an opportunity to
demonstrate, within the time prescribed by HUD and on the basis of
substantial facts and data, that it has done so.
(2) If the grantee fails to demonstrate to HUD's satisfaction that it
has met the performance review standards in 511.80, HUD will take
appropriate corrective or remedial action in accordance with this
section.
(c) Corrective and remedial actions. In formulating appropriate
corrective or remedial actions for performance deficiencies, HUD will
take one or more of the actions specified in paragraphs (c)(1), (c)(2),
and (c)(3) of this section. The action chosen will be designed to
prevent a continuation of the deficiency; mitigate, to the extent
possible, its adverse effects or consequences; and prevent its
recurrence. In addition to these actions, HUD will take the action
specified in paragraph (c)(4) of this section, when paragraph (c)(4) of
this section is applicable.
(1) HUD may request the grantee to submit and comply with proposals
for action to correct, mitigate and prevent performance deficiencies,
including:
(i) Preparing and following a schedule of actions for carrying out
the affected rental rehabilitation activities, consisting of schedules,
timetables and milestones necessary to implement the affected
activities;
(ii) Establishing and following a management plan that assigns
responsibilities for carrying out the remedial actions;
(iii) Cancelling or revising activities likely to be affected by a
performance deficiency, before expending grant amounts for the
activities;
(iv) Reprogramming rental rehabilitation grant amounts that have not
yet been expended from affected activities to other eligible activities;
and
(v) Suspending disbursement of grant amounts for affected activities
for a period of not more than 60 days.
(2) HUD may condition the use of rental rehabilitation grant amounts
from a succeeding fiscal year's allocation upon the satisfactory
completion of appropriate corrective action by the grantee. When the
use of grant amounts is conditioned, HUD will specify the deficiency,
the required corrective actions and the period provided for taking such
actions. The failure of the grantee to complete the actions as
specified will result in reduction or withdrawal of the grantee's
allocation by up to the amount conditionally granted.
(3) When HUD determines that a grantee has failed to meet one or more
of the requirements of this part, HUD may reduce or withdraw rental
rehabilitation grant amounts, or take other action as appropriate,
except that rental rehabilitation grant amounts already expended on
eligible activities will not be recaptured from existing grant
allocations or obligations or deducted from future grants made available
to the grantee. For purposes of paragraph (c)(3) of this section --
(i) Grant amounts already expended on eligible activities includes
all grant amounts that have been disbursed under this part for eligible
activities, and
(ii) Other action as appropriate means any remedial action legally
available, including, without limitation, affirmative litigation, such
as suits for declaratory judgment, specific performance, temporary or
permanent injunctions, and any other available remedies other than those
for recovery of money.
(4) Where HUD makes a final determination that it has a judicially
enforceable claim for money against the grantee in a situation where
rental rehabilitation grant amounts have been disbursed to the grantee
or State recipient for ineligible costs under this part, HUD will follow
the procedures described in the Federal Claims Collection Standards (4
CFR parts 101-105) in order to:
(i) Demand in writing that the grantee or State recipient reimburse
HUD in the amount of the ineligible costs, using funds from
non-federally derived sources; and
(ii) Initiate affirmative litigation to recover the amount of the
ineligible costs, if necessary for collection. HUD's final
determination to seek recovery of grant amounts expended on ineligible
costs under paragraph (c)(4) of this section shall constitute a claim
within the meaning of 31 U.S.C. 3711, et seq. , and interest shall be
charged on delinquent claims as required by the Federal Claims
Collection Standards.
(d) Except for monies recovered under paragraph (c)(4) of this
section, grant amounts that become available as a result of actions
under this section may be reallocated under 511.33. Amounts recovered
under paragraph (c)(4) of this section are not rental rehabilitation
grant amounts and shall be deposited in the U.S. Treasury's
miscellaneous receipts account.
24 CFR 511.82 SUBCHAPTER B -- (RESERVED)
24 CFR 511.82 SUBCHAPTER C -- COMMUNITY FACILITIES
24 CFR 511.82 PART 570 -- COMMUNITY DEVELOPMENT BLOCK GRANTS
24 CFR 511.82 Pt. 570
24 CFR 511.82 Subpart A -- General Provisions
Sec.
570.1 Purpose.
570.2 Primary objective.
570.3 Definitions.
570.4 Allocation of funds.
570.5 Waivers.
24 CFR 511.82 Subpart B -- (Reserved)
24 CFR 511.82 Subpart C -- Eligible Activities
570.200 General policies.
570.201 Basic eligible activities.
570.202 Eligible rehabilitation and preservation activities.
570.203 Special economic development activities.
570.204 Special activities by subrecipients.
570.205 Eligible planning, urban environmental design and
policy-planning-management-capacity building activities.
570.206 Program administrative costs.
570.207 Ineligible activities.
570.208 Criteria for national objectives.
24 CFR 511.82 Subpart D -- Entitlement Grants
570.300 General.
570.301 Presubmission requirements.
570.302 Submission requirements.
570.303 Certifications.
570.304 Making of grants.
570.305 Amendments.
570.306 Comprehensive housing affordability strategy.
570.307 Urban counties.
570.308 Joint requests.
24 CFR 511.82 Subpart E -- Special Purpose Grants
570.400 General
570.402 Technical assistance awards.
570.403 New communities.
570.404 Historically Black colleges and universities program.
570.405 The insular areas.
570.406 Formula miscalculation grants.
570.410 Special projects program.
570.415 Community development work study program.
24 CFR 511.82 Subpart F -- Small Cities Program
570.420 General.
570.421 Applications from joint applicants.
570.422 (Reserved)
570.423 Comprehensive Grant program, general requirements.
570.424 Selection system for Comprehensive Grants.
570.425 (Reserved)
570.426 Applications for Comprehensive Grants.
570.427 Single Purpose Grant program, general requirements.
570.428 Selection system for Single Purpose Grants.
570.429 (Reserved)
570.430 Applications for Single Purpose Grants.
570.431 Citizen participation requirements.
570.432 Single Purpose Grants for imminent threat to public health or
safety.
570.433 HUD review and actions on final applications for Single
Purpose and Comprehensive Applicants.
570.434 Program amendments for Single Purpose and Comprehensive
Grants.
570.435 Special procedures applicable to the State of Hawaii.
570.436 (Reserved)
570.437 Applicability of 24 CFR part 791.
570.438 Reallocated funds.
24 CFR 511.82 Subpart G -- Urban Development Action Grants
570.450 Purpose.
570.451 Definitions.
570.452 Distressed communities.
570.453 Eligible applicants.
570.454 Other actions which must be taken prior to submission of a
full application.
570.455 Eligible activities.
570.456 Ineligible activities and limitations on eligible activities.
570.457 Displacement, relocation, acquisition, and replacement of
housing.
570.458 Full applications.
570.459 Criteria for selection.
570.460 HUD review and action on applications.
570.461 Post preliminary approval requirements.
570.462 Incurring costs for project activities after preliminary
approval.
570.463 Project amendments and revisions.
570.464 Project closeout.
570.465 Applicability of rules and regulations.
570.466 Specific provisions for cities and urban counties containing
Pockets of Poverty.
570.467 Specific provisions for consortia of small cities applying
for UDAG funds.
24 CFR 511.82 Subpart H -- (Reserved)
24 CFR 511.82 Subpart I -- State's Program: State Administration of
CDBG Nonentitlement Funds
570.488 General.
570.489 Primary objectives; State reponsibilities.
570.490 Submission requirements.
570.491 Prior multiyear commitments.
570.492 State matching funds.
570.493 Administrative costs.
570.494 Grant payments; program income.
570.495 Environmental reponsibilities.
570.496 Program requirements.
570.496a Displacement, relocation, acquisition, and replacement of
housing.
570.497 Recordkeeping.
570.498 Performance reports.
570.499 Reviews and audits response.
570.499a Remedies after hearing.
24 CFR 511.82 Subpart J -- Grant Administration
570.500 Definitions.
570.501 Responsibility for grant administration.
570.502 Applicability of uniform administrative requirements.
570.503 Agreements with subrecipients.
570.504 Program income.
570.505 Use of real property.
570.506 Records to be maintained.
570.507 Reports.
570.508 Public access to program records.
570.509 Grant closeout procedures.
570.510 Transferring projects from urban counties to metropolitan
cities.
570.511 Use of escrow accounts for rehabilitation of privately owned
residential property.
570.512 (Reserved)
570.513 Lump sum drawdowns for financing of property rehabilitation
activities.
24 CFR 511.82 Subpart K -- Other Program Requirements
570.600 General.
570.601 Public Law 88-352 and Public Law 90-284; affirmatively
furthering fair housing; and Executive Order 11063.
570.602 Section 109 of the Act.
570.603 Labor standards.
570.604 Environmental standards.
570.605 National Flood Insurance Program.
570.606 Displacement, relocation, acquisition, and replacement of
housing.
570.607 Employment and contracting opportunities.
570.608 Lead-based paint.
570.609 Use of debarred, suspended, or ineligible contractors or
subrecipients.
570.610 Uniform administrative requirements and cost principles.
570.611 Conflict of interest.
570.612 Executive Order 12372.
570.613 Eligibility restrictions for certain resident aliens.
24 CFR 511.82 Subpart L -- (Reserved)
24 CFR 511.82 Subpart M -- Loan Guarantees
570.700 Purpose.
570.701 Definitions.
570.702 Eligible applicants.
570.703 Eligible activities.
570.704 Application requirements.
570.705 Loan requirements.
570.706 Federal guarantee.
570.707 Applicability of rules and regulations.
570.708 Sanctions.
570.709 Allocation of loan guarantee assistance.
570.710 State responsibilities.
24 CFR 511.82 Subpart N -- Urban Renewal Provisions
570.800 General.
570.801 Payment of the cost of completing a project.
570.802 Repayment of temporary loans.
570.803 Financial settlement of projects.
570.804 Application for approval of financial settlement.
24 CFR 511.82 Subpart O -- Performance Reviews
570.900 General.
570.901 Review for compliance with the primary and national
objectives and other program requirements.
570.902 Review to determine if CDBG funded activities are being
carried out in a timely manner.
570.903 Review to determine if the housing assistance plan (HAP) is
being carried out in a timely manner.
570.904 Equal Opportunity and Fair Housing review criteria.
570.905 Review of continuing capacity to carry out CDBG funded
activities in a timely manner.
570.906 Review of urban counties.
570.907 -- 570.909 (Reserved)
570.910 Corrective and remedial actions.
570.911 Reduction, withdrawal, or adjustment of a grant or other
appropriate action.
570.912 Nondiscrimination compliance.
570.913 Other remedies for noncompliance.
Authority: Title I, Housing and Community Development Act of 1974,
as amended (42 U.S.C. 5300-5320); Sec. 102, Department of Housing and
Urban Development Reform Act of 1989 (Pub. L. 101-235, approved December
15, 1989); sec. 7(d), Department of Housing and Urban Development Act
(42 U.S.C. 3535(d)).
Source: 40 FR 24693, June 9, 1975, unless otherwise noted.
24 CFR 511.82 Subpart A -- General Provisions
Source: 53 FR 34437, Sept. 6, 1988, unless otherwise noted.
24 CFR 570.1 Purpose.
(a) This part describes policies and procedures applicable to the
following programs authorized under Title I of the Housing and Community
Development Act of 1974, as amended:
(1) Entitlement grants program (subpart D);
(2) Small Cities program: HUD administered CDBG nonentitlement funds
(subpart F);
(3) State program: State-administered CDBG nonentitlement funds
(subpart I);
(4) Secretary's Fund program (subpart E);
(5) Urban Development Action Grant program (subpart G); and
(6) Loan Guarantees (subpart M).
(b) Subparts A, C, J, K, and O apply to all programs in paragraph (a)
except as modified or limited under the provisions of these subparts or
the applicable program regulations. In the application of the subparts
to the Secretary's Fund program or the Urban Development Action Grant
program, the reference to funds in the form of grants in the term ''CDBG
funds,'' as defined in 570.3, shall mean the grant funds under those
programs. The subparts do not apply to the State program (subpart I)
except to the extent expressly referred to.
(53 FR 34437, Sept. 6, 1988, as amended at 56 FR 56126, Oct. 31,
1991)
24 CFR 570.2 Primary objective.
The primary objective of Title I of the Housing and Community
Development Act of 1974, as amended, and of the community development
program of each grantee under the Title is the development of viable
urban communities, by providing decent housing and a suitable living
environment and expanding economic opportunities, principally for
persons of low and moderate income. Consistent with this primary
objective, not less than 60 percent of CDBG funds received by the
grantee under subparts D, F, and M shall be used in accordance with the
applicable requirements of those subparts for activities that benefit
persons of low and moderate income.
24 CFR 570.3 Definitions.
Act means Title I of the Housing and Community Development Act of
1974 as amended (42 U.S.C. 5301 et seq.).
Age of housing means the number of existing year-round housing units
constructed in 1939 or earlier, based on data compiled by the United
States Bureau of the Census referable to the same point or period of
time available from the latest decennial census.
Applicant means a State, unit of general local government, or an
Indian tribe which makes application pursuant to the provisions of
subpart E, F, G or M.
Buildings for the general conduct of government means city halls,
county administrative buildings, State capitol or office buildings or
other facilities in which the legislative, judicial or general
administrative affairs of the government are conducted. Such term does
not include such facilities as neighborhood service centers or special
purpose buildings located in low and moderate income areas that house
various nonlegislative functions or services provided by government at
decentralized locations.
CDBG funds means Community Development Block Grant funds, including
funds received in the form of grants under subpart D or F, loans
guaranteed under subpart M, urban renewal surplus grant funds under
subpart N, and program income defined in 570.500(a).
Chief Executive Officer of a State or unit of general local
government means the elected official or the legally designated
official, who has the primary responsibility for the conduct of that
entity's governmental affairs. Examples of the ''chief executive
officer'' of a unit of general local government are: the elected mayor
of a municipality; the elected county executive of a county; the
chairperson of a county commission or board in a county that has no
elected county executive; and the official designated pursuant to law
by the governing body of a unit of general local government.
City means the following:
(1) For purposes of Entitlement community Development Block Grant and
Urban Development Action Grant eligibility:
(i) Any unit of general local government that is classified as a
municipality by the United States Bureau of the Census, or
(ii) Any other unit of general local government that is a town or
township and that, in the determination of the Secretary:
(A) Possesses powers and performs functions comparable to those
associated with municipalities;
(B) Is closely settled (except that the Secretary may reduce or waive
this requirement on a case by case basis for the purposes of the Action
Grant program); and
(C) Contains within its boundaries no incorporated places as defined
by the United States Bureau of the Census that have not entered into
cooperation agreements with the town or township for a period covering
at least 3 years to undertake or assist in the undertaking of essential
community development and housing assistance activities. The
determination of eligibility of a town or township to qualify as a city
will be based on information available from the United States Bureau of
the Census and information provided by the town or township and its
included units of general local government.
(2) For purposes of Urban Development Action Grant eligibility only,
Guam, the Virgin Islands, American Samoa, the Commonwealth of the
Northern Mariana Islands, the counties of Kauai, Maui, and Hawaii in the
State of Hawaii, and Indian tribes that are eligible recipients under
the State and Local Government Fiscal Assistance Act of 1972 and located
on reservations in Oklahoma as determined by the Secretary of the
Interior or in Alaskan Native Villages.
Comprehensive Housing Affordability Strategy (CHAS or housing
strategy) means the housing strategy prepared by a jurisdiction and
approved by HUD in accordance with 24 CFR part 91.
Discretionary grant means a grant made from the Secretary's Fund in
accordance with subpart E.
Entitlement amount means the amount of funds which a metropolitan
city is entitled to receive under the Entitlement grant program, as
determined by formula set forth in section 106 of the Act.
Extent of growth lag means the number of persons who would have been
residents in a metropolitan city or urban county, in excess of the
current population of such metropolitan city or urban county, if such
metropolitan city or urban county had a population growth rate between
1960 and the date of the most recent population count available from the
United States Bureau of the Census referable to the same point or period
in time equal to the population growth rate for such period of all
metropolitan cities.
Extent of housing overcrowding means the number of housing units with
1.01 or more persons per room based on data compiled and published by
the United States Bureau of the Census available from the latest census
referable to the same point or period in time.
Extent of poverty means the number of persons whose incomes are below
the poverty level based on data compiled and published by the United
States Bureau of the Census available from the latest census referable
to the same point or period in time and the latest reports from the
Office of Management and Budget. For purposes of this part, the
Secretary has determined that it is neither feasible nor appropriate to
make adjustments at this time in the computations of ''extent of
poverty'' for regional or area variations in income and cost of living.
Family means all persons living in the same household who are related
by birth, marriage or adoption.
Household means all the persons who occupy a housing unit. The
occupants may be a single family, one person living alone, two or more
families living together, or any other group of related or unrelated
persons who share living arrangements.
HUD means the Department of Housing and Urban Development.
Indian tribe means any Indian tribe, band, group, and nation,
including Alaska Indians, Aleuts, and Eskimos and any Alaska Native
Village, of the United States which is considered an eligible recipient
under the Indian Self-Determination and Education Assistance Act (Pub.
L. 93-638) or under the State and Local Fiscal Assistance Act of 1972
(Pub. L. 92-512).
Low and moderate income household or lower income household means a
household having an income equal to or less than the Section 8 lower
income limits established by HUD. The method for determining income
under the Section 8 Housing Assistance Payments program need not be used
for this purpose.
Low and moderate income person or lower income person means a member
of a family having an income equal to or less than the Section 8 lower
income limit established by HUD. Unrelated individuals shall be
considered as one person families for this purpose. The method for
determining income under the Section 8 Housing Assistance Payments
program need not be used for this purpose.
Low income household means a household having an income equal to or
less than the Section 8 very low income limit established by HUD. The
method for determining income under the Section 8 Housing Assistance
Payments program need not be used for this purpose.
Low income person means a member of a family having an income equal
to or less than the Section 8 very low income limit established by HUD.
Unrelated individuals shall be considered as one person families for
this purpose. The method for determining income under the section 8
Housing Assistance Payments program need not be used for this purpose.
Metropolitan area means a metropolitan statistical area, as
established by the Office of Management and Budget.
Metropolitan city (1) Means a city within a metropolitan area that is
the central city of the area, as defined and used by the Office of
Management and Budget, or any other city, within a metropolitan area,
that has a population of fifty thousand or more.
(2) However, any unit of general local government that becomes
eligible to be classified as a metropolitan city, and was not classified
as a metropolitan city in the immediately preceding fiscal year, may,
upon submission of written notification to the Secretary, defer its
classification as a metropolitan city for all purposes under the Act, if
it elects to have its population included in an urban county.
(3) Any city classified as a metropolitan city pursuant to paragraph
(1) of this definition and that no longer qualifies under that paragraph
in a fiscal year beginning after fiscal year 1989, shall retain its
classification as a metropolitan city for such fiscal year and the
succeeding fiscal year, except that in such succeeding fiscal year the
amount of the grant to such city shall be 50 percent of the amount
calculated under section 106(b) of the Act; and the remaining 50
percent shall be added to the amount allocated under section 106(d) of
the Act to the State in which the city is located, and the city shall be
eligible in such succeeding fiscal year to receive a distribution from
the State allocation under section 106(d) of the Act.
Moderate income household means a household having an income equal to
or less than the Section 8 lower income limit and greater than the
Section 8 very low income limit, established by HUD. The method for
determining income under the Section 8 Housing Assistance Payments
Program need not be used for this purpose.
Moderate income person means a member of a family having an income
equal to or less than the Section 8 lower income limit and greater than
the Section 8 very low income limit, established by HUD. Unrelated
individuals shall be considered as one person families for this purpose.
The method for determining income under the Section 8 Housing
Assistance Payments Program need not be used for this purpose.
Nonentitlement amount means the amount of funds which is allocated
for use in a State's nonentitlement areas as determined by formula set
forth in section 106 of the Act.
Nonentitlement area means an area which is not a metropolitan city
and not included as part of an urban county.
Population means the total resident population based on data compiled
and published by the United States Bureau of the Census available from
the latest census or which has been upgraded by the Bureau to reflect
the changes resulting from the Boundary and Annexation Survey, new
incorporations and consolidations of governments pursuant to 570.4, and
which reflects, where applicable, changes resulting from the Bureau's
latest population determination through its estimating technique using
natural changes (birth and death) and net migration, and is referable to
the same point or period in time.
Secretary means the Secretary of Housing and Urban Development.
State means any State of the United States, or an instrumentality
thereof approved by the Governor; and the Commonwealth of Puerto Rico.
Unit of general local government means any city, county, town,
township, parish, village or other general purpose political subdivision
of a State; Guam, the Northern Mariana Islands, the Virgin Islands, and
American Samoa or a general purpose political subdivision thereof; a
combination of such political subdivisions recognized by the Secretary;
the District of Columbia; and the Trust Territory of the Pacific
Islands. Such term also includes a State or a local public body or
agency (as defined in section 711 of the Housing and Urban Development
Act of 1970), a community association, or other entity, which is
approved by the Secretary for the purpose of providing public facilities
or services to a new community as part of a program meeting the
eligibility standards of section 712 of the Housing and Urban
Development Act of 1970 or title IV of the Housing and Urban Development
Act of 1968.
Urban county (1) means any county within a metropolitan area which --
(i) Is authorized under State law to undertake essential community
development and housing assistance activities in its unincorporated
areas, if any, that are not units of general local government; and
(ii) Has a population of 200,000 or more (excluding the population of
metropolitan cities therein) and has a combined population of 100,000 or
more (excluding the population of metropolitan cities therein) in such
unincorporated areas and in its included units of general local
government (and in the case of counties having a combined population of
less than 200,000, the areas and units of general local government must
include the areas and units of general local government which in the
aggregate have the preponderance of the persons of low and moderate
income who reside in the county excluding metropolitan cities therein)
in which it has authority to undertake essential community development
and housing assistance activities and which do not elect to have their
population excluded, or with which it has entered into cooperation
agreements to undertake or to assist in the undertaking of essential
community development and housing assistance activities.
(2) Also includes any other county eligible under section 102(a)(6)
of the Act.
(3) Continues to include any county classified as an urban county
pursuant to paragraph (1) or (2) of this definition, and that no longer
qualifies as an urban county under those paragraphs in a fiscal year
beginning after fiscal year 1989. Any such county shall retain its
classification as an urban county for that fiscal year and the
succeeding fiscal year, except that in the succeeding fiscal year the
amount of the grant to such an urban county shall be 50 percent of the
amount calculated under section 106(b) of the Act; and the remaining 50
percent shall be added to the amount allocated under section 106(d) of
the Act to the State in which the urban county is located, and the urban
county shall be eligible in the succeeding fiscal year to receive a
distribution from the State allocation under section 106(d) of the Act.
(4) Is determined by the Department on the basis of whether the
county's combined population contains the required percentage of low and
moderate income persons by identifying the number of persons that
resided in applicable areas and units of general local government based
on data from the most recent decennial census, and using income limits
that would have applied for the year in which that census was taken.
Urban Development Action Grant (UDAG) means a grant made by the
Secretary pursuant to section 119 of the Act and subpart G of this part.
(53 FR 34437, Sept. 6, 1988; 53 FR 41330, Oct. 21, 1988, as amended
at 56 FR 56126, Oct. 31, 1991)
24 CFR 570.4 Allocation of funds.
(a) The determination of eligibility of units of general local
government to receive entitlement grants, the entitlement amounts, the
allocation of appropriated funds to States for use in nonentitlement
areas, the reallocation of funds, and the allocation of appropriated
funds for discretionary grants under the Secretary's Fund shall be
governed by the policies and procedures described in section 106 and 107
of the Act.
(b) The definitions in 570.3 shall govern in applying the policies
and procedures described in sections 106 and 107 of the Act.
(c) In determining eligibility for entitlement and in allocating
funds under section 106 of the Act for any Federal fiscal year, HUD will
recognize corporate status and geographical boundaries and the status of
metropolitan areas and central cities effective as of July 1 preceding
such Federal Fiscal Year, subject to the following limitations:
(1) With respect to corporate status as certified by the applicable
State and available for processing by the Census Bureau as of such date;
(2) With respect to boundary changes or annexations, as are used by
the Census Bureau in preparing population estimates for all general
purpose governmental units and are available for processing by the
Census Bureau as of such date, except that any such boundary changes or
annexations which result in the population of a unit of general local
government reaching or exceeding 50,000 shall be recognized for this
purpose whether or not such changes are used by the Census Bureau in
preparing such population estimates; and
(3) With respect to the status of Metropolitan Statistical Areas and
central cities, as officially designated by the Office of Management and
Budget as of such date.
(d) In determining whether a county qualifies as an urban county, and
in computing entitlement amounts for urban counties, the demographic
values of population, poverty, housing overcrowding, and age of housing
of any Indian tribes located within the county shall be excluded. In
allocating amounts to States for use in nonentitlement areas, the
demographic values of population, poverty, housing overcrowding and age
of housing of all Indian tribes located in all nonentitled areas shall
be excluded. It is recognized that all such data on Indian tribes are
not generally available from the United States Bureau of the Census and
that missing portions of data will have to be estimated. In
accomplishing any such estimates the Secretary may use such other
related information available from reputable sources as may seem
appropriate, regardless of the data's point or period of time and shall
use the best judgement possible in adjusting such data to reflect the
same point or period of time as the overall data from which the Indian
tribes are being deducted, so that such deduction shall not create an
imbalance with those overall data.
(e) Amounts remaining after closeout of a grant which are required to
be returned to HUD under the provisions of 570.509, Grant closeout
procedures, shall be considered as funds available for reallocation
unless the appropriation under which the funds were provided to the
Department has lapsed.
24 CFR 570.5 Waivers.
The Secretary may waive any requirement of this part not required by
law whenever it is determined that undue hardship will result from
applying the requirement and where application of the requirement would
adversely affect the purposes of the Act.
24 CFR 570.5 Subpart B -- (Reserved)
24 CFR 570.5 Subpart C -- Eligible Activities
Source: 53 FR 34439, Sept. 6, 1988, unless otherwise noted.
24 CFR 570.200 General policies.
(a) Determination of eligibility. An activity may be assisted in
whole or in part with CDBG funds only if all of the following
requirements are met:
(1) Compliance with section 105 of the Act. Each activity must meet
the eligibility requirements of section 105 of the Act as further
defined in this subpart.
(2) Compliance with national objectives. Grant recipients under the
Entitlement and HUD-administered Small Cities programs must certify that
their projected use of funds has been developed so as to give maximum
feasible priority to activities which will carry out one of the national
objectives of benefit to low and moderate income families or aid in the
prevention or elimination of slums or blight; the projected use of
funds may also include activities which the recipient certifies are
designed to meet other community development needs having a particular
urgency because existing conditions pose a serious and immediate threat
to the health or welfare of the community where other financial
resources are not available to meet such needs. Consistent with the
foregoing, each recipient under the Entitlement and HUD-administered
Small Cities programs must ensure, and maintain evidence, that each of
its activities assisted with CDBG funds meets one of the three national
objectives as contained in its certification. Criteria for determining
whether an activity addresses one or more of these objectives are
contained at 570.208.
(3) Compliance with the primary objective. The Act establishes as
its primary objective the development of viable urban communities, by
providing decent housing and a suitable living environment and expanding
economic opportunities, principally for persons of low and moderate
income. Consistent with this objective, Entitlement and
HUD-administered Small Cities recipients must ensure that, over a period
of time specified in their certification not to exceed three years, not
less than 60 percent of the aggregate of CDBG fund expenditures shall be
for activities meeting the criteria under 570.208(a) for benefiting low
and moderate income persons. In determining the percentage of funds
expended for such activities:
(i) Cost of administration and planning eligible under 570.205 and
570.206 will be assumed to benefit low and moderate income persons in
the same proportion as the remainder of the CDBG funds and, accordingly
shall be excluded from the calculation;
(ii) Funds deducted by HUD for repayment of urban renewal temporary
loans pursuant to 570.802(b) shall be excluded;
(iii) Funds expended for the repayment of loans guaranteed under the
provisions of subpart M shall also be excluded;
(iv) Funds expended for the acquisition, new construction or
rehabilitation of property for housing that qualifies under
570.208(a)(3) shall be counted for this purpose but shall be limited to
an amount determined by multiplying the total cost (including CDBG and
non-CDBG costs) of the acquisition, construction or rehabilitation by
the percent of units in such housing to be occupied by low and moderate
income persons.
(v) Funds expended for any other activities qualifying under
570.208(a) shall be counted for this purpose in their entirety.
(4) Compliance with environmental review procedures. The
environmental review procedures set forth at 24 CFR part 58 must be
completed for each activity (or project as defined in 24 CFR part 58),
as applicable.
(5) Cost principles. Costs incurred, whether charged on a direct or
an indirect basis, must be in conformance with OMB Circulars A-87,
''Cost Principles Applicable to Grants and Contracts with State and
Local Governments,'' A-122, ''Cost Principles for Non-profit
Organizations,'' or A-21, ''Cost Principles for Educational
Institutions,'' /1/ as applicable. All items of cost listed in
Attachment B of these Circulars which require prior Federal agency
approval are allowable without prior approval of HUD to the extent they
comply with the general policies and principles stated in Attachment A
of such circulars and are otherwise eligible under this subpart.
However, pre-agreement costs are limited to those costs described in
570.200(h).
(b) Special policies governing facilities. The following special
policies apply to:
(1) Facilities containing both eligible and ineligible uses. A
public facility otherwise eligible for assistance under the CDBG program
may be provided with CDBG funds even if it is part of a multiple use
building containing ineligible uses, if:
(i) The facility which is otherwise eligible and proposed for
assistance will occupy a designated and discrete area within the larger
facility; and
(ii) The recipient can determine the costs attributable to the
facility proposed for assistance as separate and distinct from the
overall costs of the multiple-use building and/or facility.
Allowable costs are limited to those attributable to the eligible
portion of the building or facility.
(2) Fees for use of facilities. Reasonable fees may be charged for
the use of the facilities assisted with CDBG funds, but charges such as
excessive membership fees, which will have the effect of precluding low
and moderate income persons from using the facilities, are not
permitted.
(c) Special assessments under the CDBG program. The following
policies relate to special assessments under the CDBG program:
(1) Definition of special assessment. The term ''special
assessment'' means the recovery of the capital costs of a public
improvement, such as streets, water or sewer lines, curbs, and gutters,
through a fee or charge levied or filed as a lien against a parcel of
real estate as a direct result of benefit derived from the installation
of a public improvement, or a one-time charge made as a condition of
access to a public improvement. This term does not relate to taxes, or
the establishment of the value of real estate for the purpose of levying
real estate, property, or ad valorem taxes, and does not include
periodic charges based on the use of a public improvement, such as water
or sewer user charges, even if such charges include the recovery of all
or some portion of the capital costs of the public improvement.
(2) Special assessments to recover capital costs. Where CDBG funds
are used to pay all or part of the cost of a public improvement, special
assessments may be imposed as follows:
(i) Special assessments to recover the CDBG funds may be made only
against properties owned and occupied by persons not of low and moderate
income. Such assessments constitute program income.
(ii) Special assessments to recover the non-CDBG portion may be made
provided that CDBG funds are used to pay the special assessment in
behalf of all properties owned and occupied by low and moderate income
persons; except that CDBG funds need not be used to pay the special
assessments in behalf of properties owned and occupied by moderate
income persons if the grant recipient certifies that it does not have
sufficient CDBG funds to pay the assessments in behalf of all of the low
and moderate income owner-occupant persons. Funds collected through
such special assessments are not program income.
(3) Public improvements not initially assisted with CDBG funds. The
payment of special assessments with CDBG funds constitutes CDBG
assistance to the public improvement. Therefore, CDBG funds may be used
to pay special assessments provided:
(i) The installation of the public improvements was carried out in
compliance with requirements applicable to activities assisted under
this part including environmental, citizen participation and Davis-Bacon
requirements;
(ii) The installation of the public improvement meets a criterion for
national objectives in 570.208(a)(1), (b), or (c); and
(iii) The requirements of 570.200(c)(2)(ii) are met.
(d) Consultant activities. Consulting services are eligible for
assistance under this part for professional assistance in program
planning, development of community development objectives, and other
general professional guidance relating to program execution. The use of
consultants is governed by the following:
(1) Employer-employee type of relationship. No person providing
consultant services in an employer-employee type of relationship shall
receive more than a reasonable rate of compensation for personal
services paid with CDBG funds. In no event, however, shall such
compensation exceed the maximum daily rate of compensation for a GS-18
as established by Federal law. Such services shall be evidenced by
written agreements between the parties which detail the
responsibilities, standards, and compensation.
(2) Independent contractor relationship. Consultant services
provided under an independent contractor relationship are governed by
the procurement requirements in 24 CFR 85.36 and are not subject to the
GS-18 limitation.
(e) Recipient determinations required as a condition of eligibility.
In several instances under this subpart, the eligibility of an activity
depends on a special local determination. Recipients shall maintain
documentation of all such determinations. A written determination is
required for any activity carried out under the authority of
570.201(f), 570.202(b)(3), 570.203(b), 570.204, and 570.206(f). A
written determination is also required for certain relocation costs
under 570.201(i).
(f) Means of carrying out eligible activities.
(1) Activities eligible under this subpart, other than those
authorized under 570.204(a), may be undertaken, subject to local law:
(i) By the recipient through:
(A) Its employees, or
(B) Procurement contracts governed by the requirements of 24 CFR
85.36; or
(ii) Through agreements with subrecipients, as defined at
570.500(c); or
(iii) By one or more public agencies, including existing local public
agencies, that are designated by the chief executive officer of the
recipient.
(2) Activities made eligible under 570.204(a) may only be undertaken
by subrecipients specified in that section.
(g) Limitation on planning and administrative costs. No more than 20
percent of the sum of any grant plus program income received during the
program year (or the grant period for grants under subpart F) shall be
expended for planning and program administrative costs, as defined in
570.205 and 570.206 respectively. Recipients of entitlement grants under
subpart D will be considered to be in conformance with this limitation
if expenditures for planning and administration during the most recently
completed program year did not exceed 20 percent of the sum of the
entitlement grant made for that program year and the program income
received during that program year.
(h) Reimbursement for pre-agreement costs. Prior to the effective
date of the grant agreement, a recipient may obligate and spend local
funds for the purpose of environmental assessments required by 24 CFR
part 58, for the planning and capacity building purposes authorized by
570.205(b), for engineering and design costs associated with an activity
eligible under 570.201 through 570.204, for the provision of
information and other resources to residents pursuant to 570.206(b),
for relocation activities carried out pursuant to 570.606, and for
costs of complying with procedural requirements for acquisition under
570.606 but not for the cost of the real property itself. After the
effective date of the grant agreement, the recipient may be reimbursed
with funds from its grant to cover those costs, provided such locally
funded activities were undertaken in compliance with the requirements of
this part and 24 CFR part 58.
(i) Urban Development Action Grant. Grant assistance may be provided
with Urban Development Action Grant funds, subject to the provisions of
subpart G, for:
(1) Activities eligible for assistance under this subpart; and
(2) Notwithstanding the provisions of 570.207, such other activities
as the Secretary may determine to be consistent with the purposes of the
Urban Development Action Grant program.
(j) Constitutional prohibition. In accordance with First Amendment
Church/State Principles, as a general rule, CDBG assistance may not be
used for religious activities or provided to primarily religious
entities for any activities, including secular activities. The
following restrictions and limitations therefore apply to the use of
CDBG funds.
(1) CDBG funds may not be used for the acquisition of property or the
construction or rehabilitation (including historic preservation and
removal of architectural barriers) of structures to be used for
religious purposes or which will otherwise promote religious interests.
This limitation includes the acquisition of property for ownership by
primarily religious entities and the construction or rehabilitation
(including historic preservation and removal of architectural barriers)
of structures owned by such entities (except as permitted under
paragraph (j)(2) of this section with respect to rehabilitation and
under paragraph (j)(4) of this section with respect to repairs
undertaken in connection with public services) regardless of the use to
be made of the property or structure. Property owned by primarily
religious entities may be acquired with CDBG funds at no more than fair
market value for a non-religious use.
(2) CDBG funds may be used to rehabilitate buildings owned by
primarily religious entities to be used for a wholly secular purpose
under the following conditions:
(i) The building (or portion thereof) that is to be improved with the
CDBG assistance has been leased to an existing or newly established
wholly secular entity (which may be an entity established by the
religious entity);
(ii) The CDBG assistance is provided to the lessee (and not the
lessor) to make the improvements;
(iii) The leased premises will be used exclusively for secular
purposes available to persons regardless of religion;
(iv) The lease payments do not exceed the fair market rent of the
premises as they were before the improvements are made;
(v) The portion of the cost of any improvements that also serve a
non-leased part of the building will be allocated to and paid for by the
lessor;
(vi) The lessor enters into a binding agreement that unless the
lessee, or a qualified successor lessee, retains the use of the leased
premises for a wholly secular purpose for at least the useful life of
the improvements, the lessor will pay to the lessee an amount equal to
the residual value of the improvements;
(vii) The lessee must remit the amount received from the lessor under
paragraph (j)(2)(vi) of this section to the recipient or subrecipient
from which the CDBG funds were derived.
The lessee can also enter into a management contract authorizing the
lessor religious entity to use the building for its intended secular
purpose, e.g., homeless shelter, provision of public services. In such
case, the religious entity must agree in the management contract to
carry out the secular purpose in a manner free from religious influences
in accordance with the principles set forth in paragraph (j)(3) of this
section.
(3) As a general rule, CDBG funds may be used for eligible public
services to be provided through a primarily religious entity, where the
religious entity enters into an agreement with the recipient or
subrecipient from which the CDBG funds are derived that, in connection
with the provision of such services:
(i) It will not discriminate against any employee or applicant for
employment on the basis of religion and will not limit employment or
give preference in employment to persons on the basis of religion;
(ii) It will not discriminate against any person applying for such
public services on the basis of religion and will not limit such
services or give preference to persons on the basis of religion;
(iii) It will provide no religious instruction or counseling, conduct
no religious worship or services, engage in no religious proselytizing,
and exert no other religious influence in the provision of such public
services;
(4) Where the public services provided under paragraph (j)(3) of this
section are carried out on property owned by the primarily religious
entity, CDBG funds may also be used for minor repairs to such property
which are directly related to carrying out the public services where the
cost constitutes in dollar terms only an incidental portion of the CDBG
expenditure for the public services.
(53 FR 34439, Sept. 6, 1988, as amended at 54 FR 47031, Nov. 8, 1989)
/1/ These circulars are available from the Entitlement Cities
Division of HUD, 451 Seventh Street, Washington, DC. 20410.
24 CFR 570.201 Basic eligible activities.
CDBG funds may be used for the following activities:
(a) Acquisition. Acquisition in whole or in part by the recipient,
or other public or private nonprofit entity, by purchase, long-term
lease, donation, or otherwise, of real property (including air rights,
water rights, rights-of-way, easements, and other interests therein) for
any public purpose, subject to the limitations of 570.207.
(b) Disposition. Disposition, through sale, lease, donation, or
otherwise, of any real property acquired with CDBG funds or its
retention for public purposes, including reasonable costs of temporarily
managing such property or property acquired under urban renewal,
provided that the proceeds from any such disposition shall be program
income subject to the requirements set forth in 570.504.
(c) Public facilities and improvements. Acquisition, construction,
reconstruction, rehabilitation or installation of public facilities and
improvements, except as provided in 570.207(a), carried out by the
recipient or other public or private nonprofit entities. In undertaking
such activities, design features and improvements which promote energy
efficiency may be included. Such activities may also include the
execution of architectural design features, and similar treatments
intended to enhance the aesthetic quality of facilities and improvements
receiving CDBG assistance, such as decorative pavements, railings,
sculptures, pools of water and fountains, and other works of art.
Facilities designed for use in providing shelter for persons having
special needs are considered public facilities and not subject to the
prohibition of new housing construction described in 570.207(b)(3).
Such facilities include shelters for the homeless; convalescent homes;
hospitals, nursing homes; battered spouse shelters; halfway houses for
run-away children, drug offenders or parolees; group homes for mentally
retarded persons and temporary housing for disaster victims. In certain
cases, nonprofit entities and subrecipients including those specified in
570.204 may acquire title to public facilities. When such facilities
are owned by nonprofit entities or subrecipients, they shall be operated
so as to be open for use by the general public during all normal hours
of operation. Public facilities and improvements eligible for
assistance under this paragraph are subject to the policies in
570.200(b).
(d) Clearance activities. Clearance, demolition, and removal of
buildings and improvements, including movement of structures to other
sites. Demolition of HUD-assisted housing units may be undertaken only
with the prior approval of HUD.
(e) Public services. Provision of public services (including labor,
supplies, and materials) which are directed toward improving the
community's public services and facilities, including but not limited to
those concerned with employment, crime prevention, child care, health,
drug abuse, education, fair housing counseling, energy conservation,
welfare, or recreational needs. In order to be eligible for CDBG
assistance, public services must meet each of the following criteria:
(1) A public service must be either a new service, or a quantifiable
increase in the level of a service above that which has been provided by
or in behalf of the unit of general local government (through funds
raised by such unit, or received by such unit from the State in which it
is located) in the twelve calendar months prior to the submission of the
statement. (An exception to this requirement may be made if HUD
determines that the decrease in the level of a service was the result of
events not within the control of the unit of general local government.)
(2) The amount of CDBG funds used for public services shall not
exceed 15 percent of each grant except as provided in paragraph (e)(3)
of this section. For entitlement grants under subpart D, compliance is
based on the amount of CDBG funds obligated for public service
activities in each program year compared to 15 percent of the
entitlement grant made for that program year.
(3) A recipient which obligated more CDBG funds for public services
than 15 percent of its grant funded from Federal fiscal year 1982 or
1983 appropriations (excluding any assistance received pursuant to Pub.
L. 98-8), may obligate more CDBG funds than 15 percent of its grant for
public services so long as the amount obligated in any program year does
not exceed the percentage or amount obligated in Federal fiscal year
1982 or 1983, whichever method of calculation yields the higher amount.
(f) Interim assistance.
(1) The following activities may be undertaken on an interim basis in
areas exhibiting objectively determinable signs of physical
deterioration where the recipient has determined that immediate action
is necessary to arrest the deterioration and that permanent improvements
will be carried out as soon as practicable:
(i) The repairing of streets, sidewalks, parks, playgrounds, publicly
owned utilities, and public buildings; and
(ii) The execution of special garbage, trash, and debris removal,
including neighborhood cleanup campaigns, but not the regular curbside
collection of garbage or trash in an area.
(2) In order to alleviate emergency conditions threatening the public
health and safety in areas where the chief executive officer of the
recipient determines that such an emergency condition exists and
requires immediate resolution, CDBG funds may be used for:
(i) The activities specified in paragraph (f)(1) of this section,
except for the repair of parks and playgrounds;
(ii) The clearance of streets, including snow removal and similar
activities, and
(iii) The improvement of private properties.
(3) All activities authorized under paragraph (f)(2) of this section
are limited to the extent necessary to alleviate emergency conditions.
(g) Payment of non-Federal share. Payment of the non-Federal share
required in connection with a Federal grant-in-aid program undertaken as
part of CDBG activities, provided, that such payment shall be limited to
activities otherwise eligible and in compliance with applicable
requirements under this subpart.
(h) Urban renewal completion. Payment of the cost of completing an
urban renewal project funded under Title I of the Housing Act of 1949 as
amended. Further information regarding the eligibility of such costs is
set forth in 570.801.
(i) Relocation. Relocation payments and other assistance for
permanently and temporarily relocated individuals families, businesses,
nonprofit organizations, and farm operations where the assistance is (1)
required under the provisions of 570.606 (b) or (c); or (2) determined
by the grantee to be appropriate under the provisions of 570.606(d).
(j) Loss of rental income. Payments to housing owners for losses of
rental income incurred in holding, for temporary periods, housing units
to be used for the relocation of individuals and families displaced by
program activities assisted under this part.
(k) Removal of architectural barriers. Special projects directed to
the removal of material and architectural barriers which restrict the
mobility and accessibility of elderly or handicapped persons to publicly
owned and privately owned buildings, facilities, and improvements.
(l) Privately owned utilities. CDBG funds may be used to acquire,
construct, reconstruct, rehabilitate, or install the distribution lines
and facilities of privately owned utilities, including the placing
underground of new or existing distribution facilities and lines.
(m) Construction of housing. CDBG funds may be used for the
construction of housing assisted under section 17 of the United States
Housing Act of 1937.
(53 FR 34439, Sept. 6, 1988, as amended at 53 FR 31239, Aug. 17,
1988; 55 FR 29308, July 18, 1990)
24 CFR 570.202 Eligible rehabilitation and preservation activities.
(a) Types of buildings and improvements eligible for rehabilitation
assistance. CDBG funds may be used to finance the rehabilitation of:
(1) Privately owned buildings and improvements for residential
purposes;
(2) Low-income public housing and other publicly owned residential
buildings and improvements;
(3) Publicly or privately owned commercial or industrial buildings,
except that the rehabilitation of such buildings owned by a private
for-profit business is limited to improvements to the exterior of the
building and the correction of code violations (further improvements to
such buildings may be undertaken pursuant to 570.203(b)); and
(4) Manufactured housing when such housing constitutes part of the
community's permanent housing stock.
(b) Types of assistance. CDBG funds may be used to finance the
following types of rehabilitation activities, and related costs, either
singly, or in combination, through the use of grants, loans, loan
guarantees, interest supplements, or other means for buildings and
improvements described in paragraph (a) of this section, except that
rehabilitation of commercial or industrial buildings is limited as
described in paragraph (a)(3) of this section.
(1) Assistance to private individuals and entities, including profit
making and nonprofit organizations, to acquire for the purpose of
rehabilitation, and to rehabilitate properties, for use or resale for
residential purposes;
(2) Labor, materials, and other costs of rehabilitation of
properties, including repair directed toward an accumulation of deferred
maintenance, replacement of principal fixtures and components of
existing structures, installation of security devices, including smoke
detectors and dead bolt locks, and renovation through alterations,
additions to, or enhancement of existing structures, which may be
undertaken singly, or in combination;
(3) Loans for refinancing existing indebtedness secured by a property
being rehabilitated with CDBG funds if such financing is determined by
the recipient to be necessary or appropriate to achieve the locality's
community development objectives;
(4) Improvements to increase the efficient use of energy in
structures through such means as installation of storm windows and
doors, siding, wall and attic insulation, and conversion, modification,
or replacement of heating and cooling equipment, including the use of
solar energy equipment;
(5) Improvements to increase the efficient use of water through such
means as water savings faucets and shower heads and repair of water
leaks;
(6) Connection of residential structures to water distribution lines
or local sewer collection lines;
(7) For rehabilitation carried out with CDBG funds, costs of:
(i) Initial homeowner warranty premiums;
(ii) Hazard insurance premiums, except where assistance is provided
in the form of a grant; and
(iii) Flood insurance premiums for properties covered by the Flood
Disaster Protection Act of 1973, pursuant to 570.605.
(iv) Procedures concerning inspection and testing for and abatement
of lead-based paint, pursuant to 570.608.
(8) Costs of acquiring tools to be lent to owners, tenants, and
others who will use such tools to carry out rehabilitation;
(9) Rehabilitation services, such as rehabilitation counseling,
energy auditing, preparation of work specifications, loan processing,
inspections, and other services related to assisting owners, tenants,
contractors, and other entities, participating or seeking to participate
in rehabilitation activities authorized under this section, under
section 312 of the Housing Act of 1964, as amended, under section 810 of
the Act, or under section 17 of the United States Housing Act of 1937;
and
(10) Assistance for the rehabilitation of housing under section 17 of
the United States Housing Act of 1937.
(c) Code enforcement. Code enforcement in deteriorating or
deteriorated areas where such enforcement together with public
improvements, rehabilitation, and services to be provided, may be
expected to arrest the decline of the area.
(d) Historic preservation. CDBG funds may be used for the
rehabilitation, preservation or restoration of historic properties,
whether publicly or privately owned. Historic properties are those
sites or structures that are either listed in or eligible to be listed
in the National Register of Historic Places, listed in a State or local
inventory of historic places, or designated as a State or local landmark
or historic district by appropriate law or ordinance. Historic
preservation, however, is not authorized for buildings for the general
conduct of government.
(e) Renovation of closed buildings. CDBG funds may be used to
renovate closed buildings, such as closed school buildings, for use as
an eligible public facility or to rehabilitate such buildings for
housing.
(53 FR 34439, Sept. 6, 1988; 53 FR 41330, Oct. 21, 1988)
24 CFR 570.203 Special economic development activities.
A recipient may use CDBG funds for special economic development
activities in addition to other activities authorized in this subpart
which may be carried out as part of an economic development project.
Special activities authorized under this section do not include
assistance for the construction of new housing. Special economic
development activities include:
(a) The acquisition, construction, reconstruction, rehabilitation or
installation of commercial or industrial buildings, structures, and
other real property equipment and improvements, including railroad spurs
or similar extensions. Such activities may be carried out by the
recipient or public or private nonprofit subrecipients.
(b) The provision of assistance to a private for-profit business,
including, but not limited to, grants, loans, loan guarantees, interest
supplements, technical assistance, and other forms of support, for any
activity where the assistance is necessary or appropriate to carry out
an economic development project, excluding those described as ineligible
in 570.207(a). In order to ensure that any such assistance does not
unduly enrich the for-profit business, the recipient shall conduct an
analysis to determine that the amount of any financial assistance to be
provided is not excessive, taking into account the actual needs of the
business in making the project financially feasible and the extent of
public benefit expected to be derived from the economic development
project. The recipient shall document the analysis as well as any
factors it considered in making its determination that the assistance is
necessary or appropriate to carry out the project. The requirement for
making such a determination applies whether the business is to receive
assistance from the recipient or through a subrecipient.
24 CFR 570.204 Special activities by certain subrecipients.
(a) Eligible activities. The recipient may provide CDBG funds (e.g.,
grant or loan) to any of the three types of subrecipients specified in
paragraph (c) of this section to carry out a neighborhood
revitalization, community economic development, or energy conservation
project. Such a project may include activities listed as eligible under
this subpart, and activities not otherwise listed as eligible under this
subpart, except those described as ineligible in 570.207(a), when the
recipient determines that such activities are necessary or appropriate
to achieve its community development objectives. Notwithstanding that
such recipients may carry out activities as part of such project that
are not otherwise eligible under this subpart, this provision does not
authorize:
(1) Provision of public services that do not meet the requirements of
570.201(e) (1) and (2);
(2) Provision of assistance to a for-profit business that does not
comply with the requirements of 570.203(b); or
(3) Carrying out activities that would otherwise be eligible under
570.205 or 570.206 but that would result in the recipient exceeding the
limitation in 570.200(g).
(b) Recipient responsibilities. Recipients are responsible for
ensuring that CDBG funds are used by the subrecipients in a manner
consistent with the requirements of this part and other applicable
Federal, State, or local law. Recipients are also responsible for
carrying out the environmental review and clearance responsibilities.
(c) Eligible subrecipients. The following are subrecipients
authorized to receive assistance under this section.
(1) Neighborhood-based nonprofit organizations. A neighborhood-based
nonprofit organization is an association or corporation, duly organized
to promote and undertake community development activities on a
not-for-profit basis within a neighborhood. An organization is
considered to be neighborhood-based if the majority of either its
membership, clientele, or governing body are residents of the
neighborhood where activities assisted with CDBG funds are to be carried
out. A neighborhood is defined as:
(i) A geographic location within the jurisdiction of a unit of
general local government (but not the entire jurisdiction) designated in
comprehensive plans, ordinances, or other local documents as a
neighborhood, village, or similar geographical designation;
(ii) The entire jurisdiction of a unit of general local government
which is under 25,000 population; or
(iii) A neighborhood, village, or similar geographical designation in
a New Community as defined in 570.403(a)(1).
(2) Section 301(d) Small Business Investment Companies. A Section
301(d) Small Business Investment Company is an entity organized pursuant
to section 301(d) of the Small Business Investment Act of 1958 (15
U.S.C. 681(d)), including those which are profit making.
(3) Local development corporations. A local development corporation
is:
(i) An entity organized pursuant to Title VII of the Headstart,
Economic Opportunity, and Community Partnership Act of 1974 (42 U.S.C.
2981) or the Community Economic Development Act of 1981 (42 U.S.C. 9801
et seq.);
(ii) An entity eligible for assistance under section 502 or 503 of
the Small Business Investment Act of 1958 (15 U.S.C. 696);
(iii) Other entities incorporated under State or local law whose
membership is representative of the area of operation of the entity
(including nonresident owners of businesses in the area) and which are
similar in purpose, function, and scope to those specified in paragraph
(c)(3) (i) or (ii) of this section ; or
(iv) A State development entity eligible for assistance under section
501 of the Small Business Investment Act of 1958 (15 U.S.C. 695).
24 CFR 570.205 Eligible planning, urban environmental design and
policy-planning-management-capacity building activities.
(a) Planning activities which consist of all costs of data gathering,
studies, analysis, and preparation of plans and the identification of
actions that will implement such plans, including, but not limited to:
(1) Comprehensive plans;
(2) Community development plans;
(3) Functional plans, in areas such as:
(i) Housing, including the development of a Comprehensive Housing
Affordability Strategy;
(ii) Land use and urban environmental design;
(iii) Economic development;
(iv) Open space and recreation;
(v) Energy use and conservation;
(vi) Floodplain and wetlands management in accordance with the
requirements of Executive Orders 11988 and 11990;
(vii) Transportation;
(viii) Utilities; and
(ix) Historic preservation.
(4) Other plans and studies such as:
(i) Small area and neighborhood plans;
(ii) Capital improvements programs;
(iii) Individual project plans (but excluding engineering and design
costs related to a specific activity which are eligible as part of the
cost of such activity under 570.201-570.204);
(iv) The reasonable costs of general environmental, urban
environmental design and historic preservation studies. However, costs
necessary to comply with 24 CFR part 58, including project specific
environmental assessments and clearances for activities eligible for
assistance under this part, are eligible as part of the cost of such
activities under 570.201-570.204. Costs for such specific assessments
and clearances may also be incurred under this paragraph but would then
be considered planning costs for the purposes of 570.200(g);
(v) Strategies and action programs to implement plans, including the
development of codes, ordinances and regulations;
(vi) Support of clearinghouse functions, such as those specified in
Executive Order 12372; and
(vii) Analysis of impediments to fair housing choice.
(6) Policy -- planning -- management -- capacity building activities
which will enable the recipient to:
(1) Determine its needs;
(2) Set long-term goals and short-term objectives, including those
related to urban environmental design;
(3) Devise programs and activities to meet these goals and
objectives;
(4) Evaluate the progress of such programs and activities in
accomplishing these goals and objectives; and
(5) Carry out management, coordination and monitoring of activities
necessary for effective planning implementation, but excluding the costs
necessary to implement such plans.
(53 FR 34439, Sept. 6, 1988, as amended at 56 FR 56127, Oct. 31,
1991)
24 CFR 570.206 Program administration costs.
Payment of reasonable administrative costs and carrying charges
related to the planning and execution of community development
activities assisted in whole or in part with funds provided under this
part and, where applicable, housing activities (described in paragraph
(g) of this section) covered in the recipient's housing assistance plan.
This does not include staff and overhead costs directly related to
carrying out activities eligible under 570.201 through 570.204, since
those costs are eligible as part of such activities.
(a) General management, oversight and coordination. Reasonable costs
of overall program management, coordination, monitoring, and evaluation.
Such costs include, but are not necessarily limited to, necessary
expenditures for the following:
(1) Salaries, wages, and related costs of the recipient's staff, the
staff of local public agencies, or other staff engaged in program
administration. In charging costs to this category the recipient may
either include the entire salary, wages, and related costs allocable to
the program of each person whose primary responsibilities with regard to
the program involve program administration assignments, or the pro rata
share of the salary, wages, and related costs of each person whose job
includes any program administration assignments. The recipient may use
only one of these methods during the program year (or the grant period
for grants under subpart F). Program administration includes the
following types of assignments:
(i) Providing local officials and citizens with information about the
program;
(ii) Preparing program budgets and schedules, and amendments thereto;
(iii) Developing systems for assuring compliance with program
requirements;
(iv) Developing interagency agreements and agreements with
subrecipients and contractors to carry out program activities;
(v) Monitoring program activities for progress and compliance with
program requirements;
(vi) Preparing reports and other documents related to the program for
submission to HUD;
(vii) Coordinating the resolution of audit and monitoring findings;
(viii) Evaluating program results against stated objectives; and
(ix) Managing or supervising persons whose primary responsibilities
with regard to the program include such assignments as those described
in paragraph (a)(1) (i) through (viii) of this section.
(2) Travel costs incurred for official business in carrying out the
program;
(3) Administrative services performed under third party contracts or
agreements, including such services as general legal services,
accounting services, and audit services; and
(4) Other costs for goods and services required for administration of
the program, including such goods and services as rental or purchase of
equipment, insurance, utilities, office supplies, and rental and
maintenance (but not purchase) of office space.
(b) Public information. The provisions of information and other
resources to residents and citizen organizations participating in the
planning, implementation, or assessment of activities being assisted
with CDBG funds.
(c) Fair housing activities. Provision of fair housing services
designed to further the fair housing objectives of the Fair Housing Act
(42 U.S.C. 3601-20) by making all persons, without regard to race,
color, religion, sex, national origin, familial status or handicap,
aware of the range of housing opportunities available to them; other
fair housing enforcement, education, and outreach activities; and other
activities designed to further the housing objective of avoiding undue
concentrations of assisted persons in areas containing a high proportion
of low and moderate income persons.
(d) (Reserved)
(e) Indirect Costs. Indirect costs may be charged to the CDBG
program under a cost allocation plan prepared in accordance with OMB
Circulars A-21, A-87, or A-122 as applicable.
(f) Submission of applications for Federal programs. Preparation of
documents required for submission to HUD to receive funds under the CDBG
and UDAG programs, except as limited under subpart F at 570.433(a)(3).
In addition, CDBG funds may be used to prepare applications for other
Federal programs where the recipient determines that such activities are
necessary or appropriate to achieve its community development
objectives.
(g) Administrative expenses to facilitate housing. CDBG funds may be
used for necessary administrative expenses in planning or obtaining
financing for housing as follows: for entitlement recipients,
assistance authorized by this paragraph is limited to units which are
identified in the recipient's HUD approved housing assistance plan; for
HUD-administered small cities recipients, assistance authorized by the
paragraph is limited to facilitating the purchase or occupancy of
existing units which are to be occupied by low and moderate income
households, or the construction of rental or owner units where at least
20 percent of the units in each project will be occupied at affordable
rents/costs by low and moderate income persons. Examples of eligible
actions are as follows:
(1) The cost of conducting preliminary surveys and analysis of market
needs;
(2) Site and utility plans, narrative descriptions of the proposed
construction, preliminary cost estimates, urban design documentation,
and ''sketch drawings,'' but excluding architectural, engineering, and
other details ordinarily required for construction purposes, such as
structural, electrical, plumbing, and mechanical details;
(3) Reasonable costs associated with development of applications for
mortgage and insured loan commitments, including commitment fees, and of
applications and proposals under the Section 8 Housing Assistance
Payments Program pursuant to 24 CFR parts 880-883;
(4) Fees associated with processing of applications for mortgage or
insured loan commitments under programs including those administered by
HUD, Farmers Home Administration (FmHA), Federal National Mortgage
Association (FNMA), and the Government National Mortgage Association
(GNMA);
(5) The cost of issuance and administration of mortgage revenue bonds
used to finance the acquisition, rehabilitation or construction of
housing, but excluding costs associated with the payment or guarantee of
the principal or interest on such bonds; and
(6) Special outreach activities which result in greater landlord
participation in Section 8 Housing Assistance Payments Program-Existing
Housing or similar programs for low and moderate income persons.
(h) Section 17 of the United States Housing Act of 1937. Reasonable
costs equivalent to those described in paragraphs (a), (b), (e) and (f)
of this section for overall program management of the Rental
Rehabilitation and Housing Development programs authorized under section
17 of the United States Housing Act of 1937, whether or not such
activities are otherwise assisted with funds provided under this part.
(53 FR 34439, Sept. 6, 1988, and 53 FR 41330, Oct. 21, 1988, as
amended at 54 FR 37411, Sept. 8, 1989)
24 CFR 570.207 Ineligible activities.
The general rule is that any activity that is not authorized under
the provisions of 570.201-570.206 is ineligible to be assisted with
CDBG funds. This section identifies specific activities that are
ineligible and provides guidance in determining the eligibility of other
activities frequently associated with housing and community development.
(a) The following activities may not be assisted with CDBG funds:
(1) Buildings or portions thereof, used for the general conduct of
government as defined at 570.3(d) cannot be assisted with CDBG funds.
This does not include, however, the removal of architectural barriers
under 570.201(k) involving any such building. Also, where acquisition
of real property includes an existing improvement which is to be used in
the provision of a building for the general conduct of government, the
portion of the acquisition cost attributable to the land is eligible,
provided such acquisition meets a national objective described in
570.208.
(2) General government expenses. Except as otherwise specifically
authorized in this subpart or under OMB Circular A-87, expenses required
to carry out the regular responsibilities of the unit of general local
government are not eligible for assistance under this part.
(3) Political activities. CDBG funds shall not be used to finance
the use of facilities or equipment for political purposes or to engage
in other partisan political activities, such as candidate forums, voter
transportation, or voter registration. However, a facility originally
assisted with CDBG funds may be used on an incidental basis to hold
political meetings, candidate forums, or voter registration campaigns,
provided that all parties and organizations have access to the facility
on an equal basis, and are assessed equal rent or use charges, if any.
(b) The following activities may not be assisted with CDBG funds
unless authorized under provisions of 570.203 or as otherwise
specifically noted herein, or when carried out by a subrecipient under
the provisions of 570.204.
(1) Purchase of equipment. The purchase of equipment with CDBG funds
is generally ineligible.
(i) Construction equipment. The purchase of construction equipment
is ineligible, but compensation for the use of such equipment through
leasing, depreciation, or use allowances pursuant to OMB Circulars A-21,
A-87 or A-122 as applicable for an otherwise eligible activity is an
eligible use of CDBG funds. However, the purchase of construction
equipment for use as part of a solid waste disposal facility is eligible
under 570.201(c).
(ii) Fire protection equipment. Fire protection equipment is
considered for this purpose to be an integral part of a public facility
and thus, purchase of such equipment would be eligible under
570.201(c).
(iii) Furnishings and personal property. The purchase of equipment,
fixtures, motor vehicles, furnishings, or other personal property not an
integral structural fixture is generally ineligible. CDBG funds may be
used, however, to purchase or to pay depreciation or use allowances (in
accordance with OMB Circulars A-21, A-87 or A-122, as applicable) for
such items when necessary for use by a recipient or its subrecipients in
the administration of activities assisted with CDBG funds, or when
eligible as fire fighting equipment, or when such items constitute all
or part of a public service pursuant to 570.201(e).
(2) Operating and maintenance expenses. The general rule is that any
expense associated with repairing, operating or maintaining public
facilities, improvements and services is ineligible. Specific
exceptions to this general rule are operating and maintenance expenses
associated with public service activities, interim assistance, and
office space for program staff employed in carrying out the CDBG
program. For example, the use of CDBG funds to pay the allocable costs
of operating and maintaining a facility used in providing a public
service would be eligible under 570.201(e), even if no other costs of
providing such a service are assisted with such funds. Examples of
ineligible operating and maintenance expenses are:
(i) Maintenance and repair of streets, parks, playgrounds, water and
sewer facilities, neighborhood facilities, senior centers, centers for
the handicapped, parking and similar public facilities. Examples of
maintenance and repair activities for which CDBG funds may not be used
include the filling of pot holes in streets, repairing of cracks in
sidewalks, the mowing of recreational areas, and the replacement of
expended street light bulbs; and
(ii) Payment of salaries for staff, utility costs and similar
expenses necessary for the operation of public works and facilities.
(3) New housing construction. For the purpose of this paragraph,
activities in support of the development of low or moderate income
housing including clearance, site assemblage, provision of site
improvements and provision of public improvements and certain housing
pre-construction costs set forth in 570.206(g), are not considered as
activities to subsidize or assist new residential construction. CDBG
funds may not be used for the construction of new permanent residential
structures or for any program to subsidize or assist such new
construction, except:
(i) As provided under the last resort housing provisions set forth in
24 CFR part 42;
(ii) As authorized under 570.201(m); or
(iii) When carried out by a subrecipient pursuant to 570.204(a);
(4) Income payments. The general rule is that CDBG funds shall not
be used for income payments for housing or any other purpose. Examples
of ineligible income payments include: payments for income maintenance,
housing allowances, down payments, and mortgage subsidies.
(53 FR 34439, Sept. 6, 1988; 53 FR 41330, Oct. 21, 1988)
24 CFR 570.208 Criteria for national objectives.
The following criteria shall be used to determine whether a
CDBG-assisted activity complies with one or more of the national
objectives as required under 570.200(a)(2):
(a) Activities benefiting low and moderate income persons.
Activities meeting the criteria in paragraph (a) (1), (2), (3), or (4)
of this section as applicable, will be considered to benefit low and
moderate income persons unless there is substantial evidence to the
contrary. In assessing any such evidence, the full range of direct
effects of the assisted activity will be considered. (The recipient
shall appropriately ensure that activities that meet these criteria do
not benefit moderate income persons to the exclusion of low income
persons.)
(1) Area benefit activities. (i) An activity, the benefits of which
are available to all the residents in a particular area, where at least
51 percent of the residents are low and moderate income persons. Such
an area need not be coterminous with census tracts or other officially
recognized boundaries but must be the entire area served by the
activity. An activity that serves an area that is not primarily
residential in character shall not qualify under this criterion.
(ii) For metropolitan cities and urban counties, an activity that
would otherwise qualify under 570.208(a)(1)(i) except that the area
served contains less than 51 percent low and moderate income residents
will also be considered to meet the objective of benefiting low and
moderate income persons where the proportion of low and moderate income
persons in the area is within the highest quartile of all areas in the
recipient's jurisdiction in terms of the degree of concentration of such
persons. In applying this exception, HUD will determine the lowest
proportion a recipient may use to qualify an area for this purpose as
follows:
(A) All census block groups in the recipient's jurisdiction shall be
rank ordered from the block group of highest proportion of low and
moderate income persons to the block group with the lowest. For urban
counties, the rank ordering shall cover the entire area constituting the
urban county and shall not be done separately for each participating
unit of general local government.
(B) In any case where the total number of a recipient's block groups
does not divide evenly by four, the block group which would be
fractionally divided between the highest and second quartiles shall be
considered to be part of the highest quartile.
(C) The proportion of low and moderate income persons in the last
census block group in the highest quartile shall be identified. Any
service area located within the recipient's jurisdiction and having a
proportion of low and moderate income persons at or above this level
shall be considered to be within the highest quartile.
(D) If block group data are not available for the entire
jurisdiction, other data acceptable to the Secretary may be used in the
above calculations.
(iii) For purposes of determining qualification under this criterion,
activities of the same type that serve different areas will be
considered separately on the basis of their individual service area.
(iv) In determining whether there is a sufficiently large percentage
of low and moderate income persons residing in the area served by an
activity to qualify under paragraph (a)(1) (i) or (ii) of this section,
the most recently available decennial census information shall be used
to the fullest extent feasible, together with the Section 8 income
limits that would have applied at the time the income information was
collected by the Census Bureau. Recipients that believe that the census
data does not reflect current relative income levels in an area, or
where census boundaries do not coincide sufficiently well with the
service area of an activity, may conduct (or have conducted) a current
survey of the residents of the area to determine the percent of such
persons that are low and moderate income. HUD will accept information
obtained through such surveys, to be used in lieu of the decennial
census data, where it determines that the survey was conducted in such a
manner that the results meet standards of statistical reliability that
are comparable to that of the decennial census data for areas of similar
size. Where there is substantial evidence that provides a clear basis
to believe that the use of the decennial census data would substantially
overstate the proportion of persons residing there that are low and
moderate income, HUD may require that the recipient rebut such evidence
in order to demonstrate compliance with section 105(c)(2) of the Act.
(2) Limited clientele activities. (i) An activity which benefits a
limited clientele, at least 51 percent of whom are low or moderate
income persons. (The following kinds of activities may not qualify
under this paragraph: activities, the benefits of which are available
to all the residents of an area; activities involving the acquisition,
construction or rehabilitation of property for housing; or activities
where the benefit to low and moderate income persons to be considered is
the creation or retention of jobs.) To qualify under this paragraph, the
activity must meet one of the following tests:
(A) Benefit a clientele who are generally presumed to be principally
low and moderate income persons. The following groups are presumed by
HUD to meet this criterion: abused children, battered spouses, elderly
persons, handicapped persons, homeless persons, illiterate persons and
migrant farm workers; or
(B) Require information on family size and income so that it is
evident that at least 51 percent of the clientele are persons whose
family income does not exceed the low and moderate income limit; or
(C) Have income eligibility requirements which limit the activity
exclusively to low and moderate income persons; or
(D) Be of such nature and be in such location that it may be
concluded that the activity's clientele will primarily be low and
moderate income persons.
(ii) A special project directed to removal of material and
architectural barriers which restrict the mobility and accessibility of
elderly or handicapped persons to publicly owned and privately owned
non-residential buildings, facilities and improvements and the common
areas of residential structures containing more than one dwelling unit.
(3) Housing activities. An eligible activity carried out for the
purpose of providing or improving permanent residential structures
which, upon completion, will be occupied by low and moderate income
households. This would include, but not necessarily be limited to, the
acquisition or rehabilitation of property, conversion of non-residential
structures, and new housing construction. If the structure contains two
dwelling units, at least one must be so occupied, and if the structure
contains more than two dwelling units, at least 51 percent of the units
must be so occupied. Where two or more rental buildings being assisted
are or will be located on the same or contiguous properties, and the
buildings will be under common ownership and management, the grouped
buildings may be considered for this purpose as a single structure. For
rental housing, occupancy by low and moderate income households must be
at affordable rents to qualify under this criterion. The recipient
shall adopt and make public its standards for determining ''affordable
rents'' for this purpose. The following shall also qualify under this
criterion:
(i) When less than 51 percent of the units in a structure will be
occupied by low and moderate income households, CDBG assistance may be
provided in the following limited circumstances:
(A) The assistance is for an eligible activity to reduce the
development cost of the new construction of a multifamily, non-elderly
rental housing project;
(B) Not less than 20 percent of the units will be occupied by low and
moderate income households at affordable rents; and
(C) The proportion of the total cost of developing the project to be
borne by CDBG funds is no greater than the proportion of units in the
project that will be occupied by low and moderate income households.
(ii) When CDBG funds are used to assist rehabilitation eligible under
570.202(b) (9) or (10) in direct support of the recipient's Rental
Rehabilitation program authorized under 24 CFR part 511, such funds
shall be considered to benefit low and moderate income persons where not
less than 51 percent of the units assisted, or to be assisted, by the
recipient's Rental Rehabilitation program overall are for low and
moderate income persons.
(4) Job creation or retention activities. An activity designed to
create or retain permanent jobs where at least 51 percent of the jobs,
computed on a full time equivalent basis, involve the employment of low
and moderate persons. As a general rule, each assisted business shall
be considered to be a separate activity for purposes of determining
whether the activity qualifies under this paragraph. However, in
certain cases such as where CDBG funds are used to acquire, develop or
improve a real property (e.g., a business incubator or an industrial
park) the requirement may be met by measuring jobs in the aggregate for
all the businesses which locate on the property, provided such
businesses are not otherwise assisted by CDBG funds. Additionally,
where CDBG funds are used to pay for the staff and overhead costs of a
570.204 subrecipient making loans to businesses from non-CDBG funds,
this requirement may be met by aggregating the jobs created by all of
the businesses receiving loans during any one year period. For an
activity that creates jobs, the recipient must document that at least 51
percent of the jobs will be held by, or will be available to, low and
moderate income persons. For an activity that retains jobs, the
recipient must document that the jobs would actually be lost without the
CDBG assistance and that either or both of the following conditions
apply with respect to at least 51 percent of the jobs at the time the
CDBG assistance is provided: The job is known to be held by a low or
moderate income person; or the job can reasonably be expected to turn
over within the following two years and that steps will be taken to
ensure that it will be filled by, or made available to, a low or
moderate income person upon turnover. Jobs will be considered to be
available to low and moderate income persons for these purposes only if:
(i) Special skills that can only be acquired with substantial
training or work experience or education beyond high school are not a
prerequisite to fill such jobs, or the business agrees to hire
unqualified persons and provide training; and
(ii) The recipient and the assisted business take actions to ensure
that low and moderate income persons receive first consideration for
filling such jobs.
Note: Expenditures for activities meeting the criteria for
benefiting low and moderate income persons shall be used in determining
the extent to which the recipient's overall program benefits such
persons. The calculation shall be made following the rules described at
570.200(a)(3).
(b) Activities which aid in the prevention or elimination of slums or
blight. Activities meeting one or more of the following criteria, in
the absence of substantial evidence to the contrary, will be considered
to aid in the prevention or elimination of slums or blight:
(1) Activities to address slums or blight on an area basis. An
activity will be considered to address prevention or elimination of
slums or blight in an area if:
(i) The area, delineated by the recipient, meets a definition of a
slum, blighted, deteriorated or deteriorating area under State or local
law;
(ii) Throughout the area there is a substantial number of
deteriorated or deteriorating buildings or the public improvements are
in a general state of deterioration;
(iii) Documentation is maintained by the recipient on the boundaries
of the area and the condition which qualified the area at the time of
its designation; and
(iv) The assisted activity addresses one or more of the conditions
which contributed to the deterioration of the area. Rehabilitation of
residential buildings carried out in an area meeting the above
requirements will be considered to address the area's deterioration only
where each such building rehabilitated is considered substandard under
local definition before rehabilitation, and all deficiencies making a
building substandard have been eliminated if less critical work on the
building is undertaken. At a minimum, the local definition for this
purpose must be such that buildings that it would render substandard
would also fail to meet the housing quality standards for the Section 8
Housing Assistance Payments Program-Existing Housing (24 CFR 882.109).
(2) Activities to address slums or blight on a spot basis.
Acquisition, clearance, relocation, historic preservation and building
rehabilitation activities which eliminate specific conditions of blight
or physical decay on a spot basis not located in a slum or blighted area
will meet this objective. Under this criterion, rehabilitation is
limited to the extent necessary to eliminate specific conditions
detrimental to public health and safety.
(3) Activities to address slums or blight in an urban renewal area.
An activity will be considered to address prevention or elimination of
slums or blight in an urban renewal area if the activity is:
(i) Located within an urban renewal project area or Neighborhood
Development Program (NDP) action area; i.e., an area in which funded
activities were authorized under an urban renewal Loan and Grant
Agreement or an annual NDP Funding Agreement, pursuant to Title I of the
Housing Act of 1949; and
(ii) Necessary to complete the urban renewal plan, as then in effect,
including initial land redevelopment permitted by the plan.
Note: Despite the restrictions in (b) (1) and (2) of this section,
any rehabilitation activity which benefits low and moderate income
persons pursuant to paragraph (a)(3) of this section can be undertaken
without regard to the area in which it is located or the extent or
nature of rehabilitation assisted.
(c) Activities designed to meet community development needs having a
particular urgency. In the absence of substantial evidence to the
contrary, an activity will be considered to address this objective if
the recipient certifies that the activity is designed to alleviate
existing conditions which pose a serious and immediate threat to the
health or welfare of the community which are of recent origin or which
recently became urgent, that the recipient is unable to finance the
activity on its own, and that other sources of funding are not
available. A condition will generally be considered to be of recent
origin if it developed or became critical within 18 months preceding the
certification by the recipient.
(d) Additional criteria. (1) Where the assisted activity is
acquisition of real property, a preliminary determination of whether the
activity addresses a national objective may be based on the planned use
of the property after acquisition. A final determination shall be based
on the actual use of the property, excluding any short-term, temporary
use. Where the acquisition is for the purpose of clearance which will
eliminate specific conditions of blight or physical decay, the clearance
activity shall be considered the actual use of the property. However,
any subsequent use or disposition of the cleared property shall be
treated as a ''change of use'' under 570.505.
(2) Where the assisted activity is relocation assistance that the
recipient is required to provide, such relocation assistance shall be
considered to address the same national objective as is addressed by the
displacing activity. Where the relocation assistance is voluntary on
the part of the grantee the recipient may qualify the assistance either
on the basis of the national objective addressed by the displacing
activity or on the basis that the recipients of the relocation
assistance are low and moderate income persons.
(3) In any case where the activity undertaken for the purpose of
creating or retaining jobs is a public improvement and the area served
is primarily residential, the activity must meet the requirements of
paragraph (a)(1) of this section as well as those of paragraph (a)(4) of
this section in order to qualify as benefiting low and moderate income
persons.
(4) CDBG funds expended for planning and administrative costs under
570.205 and 570.206 will be considered to address the national
objectives.
(53 FR 34439, Sept. 6, 1988; 53 FR 41330, Oct. 21, 1988)
24 CFR 570.208 Subpart D -- Entitlement Grants
Source: 53 FR 34449, Sept. 6, 1988, unless otherwise noted.
24 CFR 570.300 General.
This subpart describes the policies and procedures governing the
making of community development block grants to entitlement communities.
The policies and procedures set forth in subparts A, C, J, K, and O of
this part also apply to entitlement grantees.
24 CFR 570.301 Presubmission requirements.
Prior to the submission to HUD for its annual grant, the grantee
must:
(a) Develop a proposed statement of community development objectives
and projected use of funds, including the following items:
(1) The community development objectives the grantee proposes to
pursue.
(2) The community development activities the grantee proposes to
carry out with anticipated CDBG funds, including all funds identified in
paragraph (b)(1)(i) of this section, to address its identified community
development objectives. Each such activity must:
(i) Meet the applicable requirements of 24 CFR 570 subpart C; and
(ii) Be described in sufficient detail, including location, to allow
citizens to determine the degree to which they may be affected.
(b) In a manner which provides for the timely citizen examination,
appraisal, and comment on its statements, meet the following citizen
participation requirements:
(1) Furnish citizens with information concerning:
(i) The amount of CDBG funds expected to be available (including the
annual grant, program income expected to be received during the program
year together with program income received during the preceding program
year and that has not yet been programmed for use, and surplus from
urban renewal settlement for community development and housing
activities);
(ii) The range of activities that may be undertaken with those funds
pursuant to the criteria in 24 CFR 570 subpart C;
(iii) The estimated amount of those funds proposed to be used for
activities that will benefit low and moderate income persons;
(iv) The proposed CDBG activities likely to result in displacement
and the grantee's plans (consistent with the grantee's Comprehensive
Housing Affordability Strategy and policies developed pursuant to
570.606(c)) for minimizing such displacement of persons as a result of
its proposed activities; and
(v) The types and levels of assistance the grantee will make
available (or to require others to make available) to persons displaced
by CDBG funded activities, even if the grantee expects no such
displacement to occur.
(2) Hold at least one public hearing to obtain the views of citizens
on the grantee's housing and community development needs (grantees may
elect to hold additional hearings and to cover other subjects through
such public hearings, such as obtaining views on specific community
development or housing activities).
(3) Publish community-wide its proposed statement of community
development objectives and projected use of funds so as to afford
affected citizens an opportunity to examine the statement's contents,
and to provide comments on the proposed statement and on the grantee's
community development performance.
(c) Prepare its final statement of community development objectives
and projected use of funds. Once the grantee has completed the citizen
participation requirements in paragraph (b) of this section, the grantee
must consider any such comments and views received and if the grantee
deems appropriate modify the proposed statement. The grantee shall make
the final statement available to the public. The final statement may
include activities which do not either benefit low and moderate income
persons or prevent or eliminate slums and blight only if the grantee
identifies such activities in the final statement and certifies that
such activities are designed to meet other community development needs
having a particular urgency because existing conditions pose a serious
and immediate threat to the health or welfare of the community, and
other financial resources are not available.
(d) Submit and receive approval of its Comprehensive Housing
Affordability Strategy in accordance with 570.306 and part 91.
(Approved by Office of Management and Budget under control number
2506-0077)
(53 FR 34449, Sept. 6, 1988; 53 FR 41330, Oct. 21, 1988, as amended
at 55 FR 29308, July 18, 1990; 56 FR 56127, Oct. 31, 1991)
24 CFR 570.302 Submission requirements.
(a) Content. In order to receive its annual CDBG entitlement grant,
a grantee must submit the following:
(1) Standard Form 424;
(2) A copy of the grantee's final statement of community development
objectives and projected use of funds, covering the same items as listed
in 570.301(a); and
(3) Certifications satisfactory to the Secretary covering all of the
items listed in 570.303.
(b) Timing of submissions. (1) In order to facilitate continuity in
its program, the grantee should submit its final statement to HUD at
least 30 days prior to the start of its community development program
year, but in no event will HUD accept a submission for a grant earlier
than December 1 or later than the first working day in September of the
Federal fiscal year for which the grant funds are appropriated.
(2) A program year shall run for a twelve month period. A grantee
may, however, either shorten or lengthen its program year, provided HUD
receives written notice of a lengthened program year at least two months
prior to the date the program year would have ended if it had not been
lengthened, or HUD receives notice of a shortened program year at least
two months prior to the end of the shortened program year.
(Approved by the Office of Management and Budget under control number
2506-0077)
24 CFR 570.303 Certifications.
The grantee shall submit certifications that:
(a) It possesses legal authority to make a grant submission and to
execute a community development and housing program;
(b) Its governing body has duly adopted or passed as an official act
a resolution, motion or similar action authorizing the person identified
as the official representative of the grantee to submit the final
statement and amendments thereto and all understandings and assurances
contained therein, and directing and authorizing the person identified
as the official representative of the grantee to act in connection with
the submission of the final statement and to provide such additional
information as may be required.
(c) Prior to submission of its final statement to HUD, the grantee
has:
(1) Met the citizen participation requirements of section 104(a)(3)
of the Act; and
(2) Prepared its final statement of community development objectives
and projected use of funds in accordance with 570.301(c) and made the
final statement available to the public.
(d) The grantee will affirmatively further fair housing, and the
grant will be conducted and administered in compliance with:
(1) Title VI of the Civil Rights Act of 1964 (Pub. L. 88-352, 42
U.S.C. 2000d et seq.); and
(2) The Fair Housing Act (42 U.S.C. 3601-20).
(e) It has developed its final statement of projected use of funds so
as to give maximum feasible priority to activities which benefit low and
moderate income families or aid in the prevention or elimination of
slums or blight. (The final statement of projected use of funds may
also include activities which the grantee certifies pursuant to
570.301(c) are designed to meet other community development needs having
a particular urgency.)
(f) In the aggregate, at least 60 percent of all CDBG funds, as
defined at 570.3, to be expended during the one, two or three
consecutive program years specified by the grantee will be for
activities which benefit low and moderate income persons, as described
in criteria at 24 CFR 570.208(a).
(g) Its notification, inspection, testing and abatement procedures
concerning lead-based paint will comply with 570.608.
(h) It will comply (i.e., provide assurance of compliance as required
by 49 CFR part 24) with the acquisition and relocation requirements of
the Uniform Relocation Assistance and Real Property Acquisition Policies
Act of 1970, as amended, as required under 570.606(b) and Federal
implementing regulations; and the requirements in 570.606(c) governing
the residential antidisplacement and relocation assistance plan under
section 104(d) of the Act (including a certification that the grantee is
following such a plan); and the relocation requirements of 570.606(d)
governing optional relocation assistance under section 105(a)(11) of the
Act.
(i) It has developed a community development plan, which at a
minimum, covers the same one, two or three program years pursuant to
paragraph (f) of this section. At a minimum the community development
plan must:
(1) Identify the grantee's community development needs and housing
needs; and
(2) Specify both short-term and long-term community development
objectives, consistent with the grantee's final statement, that have
been developed in accordance with the primary objective of the Act and
the requirements of this part.
(j) It will comply with the requirements of 570.200(c)(2) with
regard to the use of special assessments to recover the capital costs of
activities assisted with CDBG funds.
(k) (Where applicable, the grantee may also include the following
additional certification.) It lacks sufficient resources from funds
provided under this subpart or program income to allow it to comply with
the provisions of 570.200(c)(2), and it must therefore assess
properties owned and occupied by moderate income persons, to recover the
non-CDBG funded portion of the capital cost without paying such
assessments in their behalf from CDBG funds.
(l) It is following a current Comprehensive Housing Affordability
Strategy which has been approved by HUD pursuant to 570.306 and part
91, and that any housing activities to be assisted with CDBG funds will
be consistent with the Comprehensive Housing Affordability Strategy.
(m) It will comply with the other provisions of the Act and with
other applicable laws.
(53 FR 34449, Sept. 6, 1988, as amended at 54 FR 37411, Sept. 8,
1989; 55 FR 29308, July 18, 1990; 56 FR 56127, Oct. 31, 1991)
24 CFR 570.304 Making of grants.
(a) Acceptance of final statement and certifications. The final
statement and certifications will be accepted by the responsible HUD
field office unless it is determined that one or more of the following
requirements have not been met.
(1) Completeness. The submission shall include all of the components
required in 570.302(a).
(2) Timeliness. The submission must be received within the time
period established in 570.302(b)(1).
(3) Certifications. The certifications made by the grantee will be
satisfactory to the Secretary if made in conformance with 570.303,
unless the Secretary has determined pursuant to subpart O that the
grantee has not complied with the requirements of this part or has
failed to carry out its Comprehensive Housing Affordability Strategy in
a timely manner, or determined that there is evidence, not directly
involving the grantee's past performance under this program, which tends
to challenge in a substantial manner the grantee's certification of
future performance. If the Secretary makes any such determination,
however, further assurances may be required to be submitted by the
grantee as the Secretary may deem warranted or necessary to find the
grantee's certification satisfactory.
(b) Grant agreement. The grant will be made by means of a grant
agreement executed by both HUD and the grantee.
(c) Grant amount. The Secretary will make a grant in the full
entitlement amount, generally within the last 30 days of the grantee's
current program year, unless:
(1) The final statement or certifications are not received by the
first working day in September or are not acceptable under paragraphs
(a) (1) and (3) of this section in which case the grantee will forfeit
the entire entitlement amount; or
(2) The grantee's performance does not meet the performance
requirements or criteria prescribed in subpart O and the grant amount is
reduced.
(d) Conditional grant. The Secretary may make a conditional grant in
which case the obligation and use of grant funds for activities may be
restricted. Conditional grants may be made where there is substantial
evidence that there has been, or there will be, a failure to meet the
performance requirements or criteria described in subpart O. In such
case, the conditional grant will be made by means of a grant agreement,
executed by HUD, which includes the terms of the condition specifying
the reason for the conditional grant, the actions necessary to remove
the condition and the deadline for taking those actions. The grantee
shall execute and return such an agreement to HUD within 60 days of the
date of its transmittal. Failure of the grantee to execute and return
the grant agreement within 60 days may be deemed by HUD to constitute
rejection of the grant by the grantee and shall be cause for HUD to
determine that the funds provided in the grant agreement are available
for reallocation in accordance with section 106(c) of the Act. Failure
to satisfy the condition may result in a reduction in the entitlement
amount pursuant to 570.911.
(53 FR 34449, Sept. 6, 1988, as amended at 56 FR 56127, Oct. 31,
1991)
24 CFR 570.305 Amendments.
(a) The grantee shall amend its final statement whenever it decides
not to carry out an activity described in the final statement, to carry
out an activity not previously described, or to substantially change the
purpose, scope, location, or beneficiaries of an activity. Within 120
days of the effective date of this rule or, for a new grantee, prior to
submission of its final statement, the grantee shall develop and make
public its criteria for what constitutes a substantial change for this
purpose.
(b) Prior to amending its final statement, the grantee shall provide
citizens with reasonable notice of, and opportunity to comment on, such
proposed changes in its use of funds. The grantee shall consider any
such comments and, if the grantee deems appropriate, modify the changes.
The grantee shall make available to the public, and shall submit to
HUD, a description of any changes adopted. A letter transmitting such
description to HUD shall be signed by the official representative of the
grantee.
24 CFR 570.306 Comprehensive housing affordability strategy.
(a) General. The requirements for preparing and submitting a
Comprehensive Housing Affordability Strategy (CHAS or housing strategy)
are specified in 24 CFR part 91.
(b) Grantee's responsibility. Each grantee is responsible for
implementing its approved CHAS.
(c) Newly entitled communities. Any newly entitled community that
was not made aware of its CDBG entitlement status by HUD August 31 shall
be considered unable to comply with the deadline for submission of its
CHAS and will be permitted to submit an abbreviated CHAS, in accordance
with instructions from HUD.
(56 FR 56127, Oct. 31, 1991)
24 CFR 570.307 Urban counties.
(a) Determination of qualification. The Secretary will determine the
qualifications of counties to receive entitlements as urban counties
upon receipt of qualification documentation from counties at such time,
and in such manner and form as prescribed by HUD. The Secretary shall
determine eligibility and applicable portions of each eligible county
for purposes of fund allocation under section 106 of the Act on the
basis of information available from the U.S. Bureau of the Census with
respect to population and other pertinent demographic characteristics,
and based on information provided by the county and its included units
of general local government.
(b) Qualification as an urban county. (1) A county will qualify as
an urban county if such county meets the definition at 570.3(3). As
necessitated by this definition, the Secretary shall determine which
counties have authority to carry out essential community development and
housing assistance activities in their included units of general local
government without the consent of the local governing body and which
counties must execute cooperation agreements with such units to include
them in the urban county for qualification and grant calculation
purposes.
(2) At the time of urban county qualification, HUD may refuse to
recognize the cooperation agreement of a unit of general local
government in an urban county where, based on past performance and other
available information, there is substantial evidence that such unit does
not cooperate in the implementation of the essential community
development or housing assistance activities or where legal impediments
to such implementation exist, or where participation by a unit of
general local government in noncompliance with the applicable law in
subpart K would constitute noncompliance by the urban county. In such a
case, the unit of general local government will not be permitted to
participate in the urban county, and its population or other needs
characteristics will not be considered in the determination of whether
the county qualifies as an urban county or in determining the amount of
funds to which the urban county may be entitled. HUD will not take this
action unless the unit of general local government and the county have
been given an opportunity to challenge HUD's determination and to
informally consult with HUD concerning the proposed action.
(c) Essential activities. For purposes of this section, the term
''essential community development and housing assistance activities''
means community renewal and lower income housing activities,
specifically urban renewal and publicly assisted housing. In
determining whether a county has the required powers, the Secretary will
consider both its authority and, where applicable, the authority of its
designated agency or agencies.
(d) Period of qualification. (1) The qualification by HUD of an
urban county shall remain effective for three successive Federal fiscal
years regardless of changes in its population during that period, except
as provided under paragraph (f) of this section and except as provided
under 570.3(3) where the period of qualification shall be two
successive Federal fiscal years.
(2) During the period of qualification, no included unit of general
local government may withdraw from nor be removed from the urban county
for HUD's grant computation purposes.
(3) If some portion of an urban county's unincorporated area becomes
incorporated during the urban county qualification period, the newly
incorporated unit of general local government shall not be excluded from
the urban county nor shall it be eligible for a separate grant under
subpart D, F, or I until the end of the urban county's current
qualification period, unless the urban county fails to receive a grant
for any year during that qualification period.
(e) Grant ineligibility of included units of general local
government. (1) An included unit of general local government cannot
become eligible for an entitlement grant as a metropolitan city during
the period of qualification of the urban county (even if it becomes a
central city of a metropolitan area or its population surpasses 50,000
during that period). Rather, such a unit of general local government
shall continue to be included as part of the urban county for the
remainder of the urban county's qualification period, and no separate
grant amount shall be calculated for the included unit.
(2) An included unit of general local government which is part of an
urban county shall be ineligible to apply for grants under subpart F, or
to be a recipient of assistance under subpart I, during the entire
period of urban county qualification.
(f) Failure of an urban county to receive a grant. Failure of an
urban county to receive a grant during any year shall terminate the
existing qualification of that urban county, and that county shall
requalify as an urban county before receiving an entitlement grant in
any successive Federal fiscal year. Such termination shall release
units of general local government included in the urban county, in
subsequent years, from the prohibition to receive grants under
paragraphs (d)(3), (e)(1) and (e)(2) of this section. For this purpose
an urban county shall be deemed to have received a grant upon having
satisfied the requirements of sections 104 (a), (b), (c), and (d) of the
Act, without regard to adjustments which may be made to this grant
amount under section 104(e) or 111 of the Act.
(g) Notifications of the opportunity to be excluded. Any county
seeking to qualify for an entitlement grant as an urban county for any
Federal fiscal year shall notify each unit of general local government
which is located, in whole or in part, within the county and which would
otherwise be included in the urban county, but which is eligible to
elect to have its population excluded from that of the urban county,
that it has the opportunity to make such an election, and that such an
election, or the failure to make such an election, shall be effective
for the period for which the county qualifies as an urban county. These
notifications shall be made by a date specified by HUD. A unit of
general local government which elects to be excluded from participation
as a part of the urban county shall notify the county and HUD in writing
by a date specified by HUD. Such a unit of government may subsequently
elect to participate in the urban county for the remaining one or two
year period by notifying HUD and the county, in writing, of such
election by a date specified by HUD.
(53 FR 34449, Sept. 6, 1988, as amended at 56 FR 56127, Oct. 31,
1991)
24 CFR 570.308 Joint requests.
(a) Joint requests and cooperation agreements. (1) Any urban county
and any metropolitan city located, in whole or in part, within that
county may submit a joint request to HUD to approve the inclusion of the
metropolitan city as a part of the urban county for purposes of planning
and implementing a joint community development and housing program.
Such a joint request shall only be considered if submitted at the time
the county is seeking a three year qualification or requalification as
an urban county. Such a joint request shall, upon approval by HUD,
remain effective for the period for which the county is qualified as an
urban county. An urban county may be joined by more than one
metropolitan city, but a metropolitan city located in more than one
urban county may only be included in one urban county for any program
year. A joint request shall be deemed approved by HUD unless HUD
notifies the city and the county of its disapproval and the reasons
therefore within 30 days of receipt of the request by HUD.
(2) Each metropolitan city and urban county submitting a joint
request shall submit an executed cooperation agreement to undertake or
to assist in the undertaking of essential community development and
housing assistance activities, as defined in 570.307(c).
(b) Joint grant amount. The grant amount for a joint recipient shall
be the sum of the amounts authorized for the individual entitlement
grantees, as described in section 106 of the Act. The urban county
shall be the grant recipient.
(c) Effect of inclusion. Upon urban county qualification and HUD
approval of the joint request and cooperation agreement, the
metropolitan city shall be considered a part of the urban county for
purposes of program planning and implementation for the period of the
urban county qualification, and shall be treated the same as any other
unit of general local government which is part of the urban county.
(d) Submission requirements. In requesting a grant under this part,
the urban county shall make a single submission which meets the
submission requirements of this subpart and covers all members of the
joint recipient.
24 CFR 570.308 Subpart E -- Special Purpose Grants
24 CFR 570.400 General.
(a) Applicability. The policies and procedures set forth in subparts
A, C, J, K, and O of this part shall apply to this subpart, except to
the extent that they are specifically modified or augmented by the
contents of this subpart, including specified exemptions described
herein. The HUD Environmental Review Procedures contained in 24 CFR
part 58 also apply to this subpart, unless otherwise specifically
provided herein.
(b) Data. Wherever data are used in this subpart for selecting
applicants for assistance or for determining grant amounts, the source
of such data shall be the most recent information available from the
U.S. Bureau of the Census which is referable to the same point or period
of time.
(c) Review of applications for discretionary assistance -- (1) Review
components. An application for assistance under this subpart shall be
reviewed by HUD to ensure that: (i) The application is postmarked or
received on or before any final date established by HUD;
(ii) The application is complete;
(iii) Required certifications have been included in the application;
and
(iv) The application meets the specific program requirements listed
in the Federal Register Notice published in connection with a
competition for funding, and any other specific requirements listed
under this subpart for each of the programs.
(2) Timing and review. HUD is not required by the Act to review and
approve an application for assistance or a contract proposal within any
specified time period. However, HUD will attempt to complete its review
of any application/proposal within 75 days.
(3) Notification to applicant/proposer. HUD will notify the
applicant/proposer in writing that the applicant/proposal has been
approved, partially approved, or disapproved. If an
application/proposal is partially approved or disapproved, the
applicant/proposer will be informed of the basis for HUD's decision.
HUD may make conditional approvals under section 570.304(d).
(d) Program amendments. (1) Recipients shall request prior written
HUD approval for all program amendments involving changes in the scope
or the location of approved activities.
(2) Any program amendments, whether or not they require HUD approval,
must be fully documented in the recipient's records.
(e) Performance reports. Any performance report required of a
discretionary assistance recipient shall be submitted in the form
specified in this subpart, in the award document, or (if the report
relates to a specific competition for an assistance award) in a form
specified in a Notice published in the Federal Register.
(f) Performance reviews and findings. HUD may review the recipient's
performance in carrying out the activities for which assistance is
provided in a timely manner and in accordance with its approved
application, all applicable requirements of this part and the terms of
the assistance agreement. Findings of performance deficiencies may be
cause for appropriate corrective and remedial actions under 570.910.
(g) Funding sanctions. Following notice and opportunity for informal
consultation, HUD may withhold, reduce or terminate the assistance where
any corrective or remedial actions taken under 570.910 fail to remedy a
recipient's performance deficiencies, and the deficiencies are
sufficiently substantial, in the judgment of HUD, to warrant sanctions.
(h) Publication of availability of funds. HUD will publish by Notice
in the Federal Register each year the amount of funds available for the
special purpose grants authorized by each section under this Subpart.
(50 FR 37525, Sept. 16, 1985, as amended at 56 FR 18968, Apr. 24,
1991)
24 CFR 570.402 Technical assistance awards.
(a) General. (1) The purpose of the Community Development Technical
Assistance Program is to increase the effectiveness with which States,
units of general local government, and Indian tribes plan, develop, and
administer assistance under Title I and section 810 of the Act. Title I
programs are the Entitlement Program (24 CFR part 570, subpart D); the
section 108 Loan Guarantee Program (24 CFR part 570, subpart M); the
Urban Development Action Grant Program (24 CFR part 570, subpart G);
the HUD-administered Small Cities Program (24 CFR part 570, subpart F);
the State-administered Program for Non-Entitlement Communities (24 CFR
part 570, subpart I); the grants for Indian Tribes program (24 CFR part
571); and the Special Purpose Grants for Insular Areas, Community
Development Work Study and Historically Black Colleges and Universities
(24 CFR part 570, subpart E). The section 810 program is the Urban
Homesteading Program (24 CFR part 590).
(2) Funding under this section is awarded for the provision of
technical expertise in planning, managing or carrying out such programs
including the activities being or to be assisted thereunder and other
actions being or to be undertaken for the purpose of the program, such
as increasing the effectiveness of public service and other activities
in addressing identified needs, meeting applicable program requirements
(e.g., citizen participation, nondiscrimination, OMB Circulars),
increasing program management or capacity building skills, attracting
business or industry to CDBG assisted economic development sites or
projects, assisting eligible CDBG subrecipients such as neighborhood
nonprofits or small cities in how to obtain CDBG funding from cities and
States. The provision of technical expertise in other areas which may
have some tangential benefit or effect on a program is insufficient to
qualify for funding.
(3) Awards may be made pursuant to HUD solicitations for assistance
applications or procurement contract proposals issued in the form of a
publicly available document which invites the submission of applications
or proposals within a prescribed period of time. HUD may also enter
into agreements with other Federal agencies for awarding the technical
assistance funds:
(i) Where the Secretary determines that such funding procedures will
achieve a particular technical assistance objective more effectively and
the criteria for making the awards will be consistent with this section,
or
(ii) The transfer of funds to the other Federal agency for use under
the terms of the agreement is specifically authorized by law. The
Department will not accept or fund unsolicited proposals.
(b) Definitions. (1) Areawide planning organization (APO) means an
organization authorized by law or local agreement to undertake planning
and other activities for a metropolitan or non-metropolitan area.
(2) Technical assistance means the facilitating of skills and
knowledge in planning, developing and administering activities under
Title I and section 810 of the Act in entities that may need but do not
possess such skills and knowledge, and includes assessing programs and
activities under Title I.
(c) Eligible applicants. Eligible applicants for award of technical
assistance funding are:
(1) States, units of general local government, APOs, and Indian
Tribes; and
(2) Public and private non-profit or for-profit groups, including
educational institutions, qualified to provide technical assistance to
assist such governmental units to carry out the Title I or Urban
Homesteading programs. An applicant group must be designated as a
technical assistance provider to a unit of government's Title I program
or Urban Homesteading program by the chief executive officer of each
unit to be assisted, unless the assistance is limited to
conferences/workshops attended by more than one unit of government.
(d) Eligible Activities. Activities eligible for technical
assistance funding include:
(1) The provision of technical or advisory services;
(2) The design and operation of training projects, such as workshops,
seminars, or conferences;
(3) The development and distribution of technical materials and
information; and
(4) Other methods of demonstrating and making available skills,
information and knowledge to assist States, units of general local
government, or Indian Tribes in planning, developing, administering or
assessing assistance under Title I and Urban Homesteading programs in
which they are participating or seeking to participate.
(e) Ineligible activities. Activities for which costs are ineligible
under this section include:
(1) In the case of technical assistance for States, the cost of
carrying out the administration of the State CDBG program for
non-entitlement communities;
(2) The cost of carrying out the activities authorized under the
Title I and Urban Homesteading programs, such as the provision of public
services, construction, rehabilitation, planning and administration, for
which the technical assistance is to be provided;
(3) The cost of acquiring or developing the specialized skills or
knowledge to be provided by a group funded under this section;
(4) Research activities;
(5) The cost of identifying units of governments needing assistance
(except that the cost of selecting recipients of technical assistance
under the provisions of paragraph (k) is eligible); or
(6) Activities designed primarily to benefit HUD, or to assist HUD in
carrying out the Department's responsibilities; such as research,
policy analysis of proposed legislation, training or travel of HUD
staff, or development and review of reports to the Congress.
(f) Criteria for competitive selection. In determining whether to
fund competitive applications or proposals under this section, the
Department will use the following criteria:
(1) For solicited assistance applications. The Department will use
two types of criteria for reviewing and selecting competitive assistance
applications solicited by HUD:
(i) Evaluation Criteria: These criteria will be used to rank
applications according to weights which may vary with each competition:
(A) Probable effectiveness of the application in meeting needs of
localities and accomplishing project objectives;
(B) Soundness and cost-effectiveness of the proposed approach;
(C) Capacity of the applicant to carry out the proposed activities in
a timely and effective fashion;
(D) The extent to which the results may be transferable or applicable
to other title I or Urban Homesteading program participants.
(ii) Program Policy Criteria: These factors may be used by the
selecting official to select a range of projects that would best serve
program objectives for a particular competition:
(A) Geographic distribution;
(B) Diversity of types and sizes of applicant entities; and
(C) Diversity of methods, approaches, or kinds of projects.
The Department will publish a Notice of Fund Availability (NOFA) in
the Federal Register for each competition indicating the objective of
the technical assistance, the amount of funding available, the
application procedures, including the eligible applicants and activities
to be funded, any special conditions applicable to the solicitation,
including any requirements for a matching share or for commitments for
CDBG or other title I funding to carry out eligible activities for which
the technical assistance is to be provided, the maximum points to be
awarded each evaluation criterion for the purpose of ranking
applications, and any special factors to be considered in assigning the
points to each evaluation criterion. The Notice will also indicate
which program policy factors will be used, the impact of those factors
on the selection process, the justification for their use and, if
appropriate, the relative priority of each program policy factor.
(2) For competitive procurement contract bids/proposals. The
Department's criteria for review and selection of solicited
bids/proposals for procurement contracts will be described in its public
announcement of the availability of an Invitation for Bids (IFB) or a
Request for Proposals (RFP). The public notice, solicitation and award
of procurement contracts, when used to acquire technical assistance,
shall be procured in accordance with the Federal Acquisition Regulation
(48 CFR chapter 1) and the HUD Acquisition Regulation (48 CFR chapter
24).
(g) Submission procedures. Solicited assistance applications shall
be submitted in accordance with the time and place and content
requirements described in the Department's NOFA. Solicited
bids/proposals for procurement contracts shall be submitted in
accordance with the requirements in the IFB or RFP.
(h) Approval procedures -- (1) Acceptance. HUD's acceptance of an
application or proposal for review does not imply a commitment to
provide funding.
(2) Notification. HUD will provide notification of whether a project
will be funded or rejected.
(3) Form of award. (i) HUD will award technical assistance funds as
a grant, cooperative agreement or procurement contract, consistent with
this section, the Federal Grant and Cooperative Agreement Act of 1977,
31 U.S.C. 6301-6308, the HUD Acquisition Regulation, and the Federal
Acquisition Regulation.
(ii) When HUD's primary purpose is the transfer of technical
assistance to assist the recipients in support of the Title I or Section
810 programs, an assistance instrument (grant or cooperative agreement)
will be used. A grant instrument will be used when substantial Federal
involvement is not anticipated. A cooperative agreement will be used
when substantial Federal involvement is anticipated. When a cooperative
agreement is selected, the agreement will specify the nature of HUD's
anticipated involvement in the project.
(iii) A contract will be used when HUD's primary purpose is to obtain
a provider of technical assistance to act on the Department's behalf.
In such cases the Department will define the specific tasks to be
performed. However, nothing in this section shall preclude the
Department from awarding a procurement contract in any other case when
it is determined to be in the Department's best interests.
(4) Administration. Project administration will be governed by the
terms of individual awards and relevant regulations. As a general rule,
proposals will be funded to operate for one to two years, and periodic
and final reports will be required.
(i) Environmental and intergovernmental review. The requirements for
Environmental Reviews and Intergovernmental Reviews do not apply to
technical assistance awards.
(j) Selection of recipients of technical assistance. Where under the
terms of the funding award the recipient of the funding is to select the
recipients of the technical assistance to be provided, the funding
recipient shall publish, and publicly make available to potential
technical assistance recipients, the availability of such assistance and
the specific criteria to be used for the selection of the recipients to
be assisted. Selected recipients must be entities participating or
planning to participate in the Title I or Urban Homesteading programs or
activities for which the technical assistance is to be provided.
(Approved under OMB control numbers 2535-0085 and 2535-0084)
(56 FR 41938, Aug. 26, 1991)
24 CFR 570.403 New Communities.
(a) General. (1) This section concerns grants for activities and
projects which are:
(i) In direct support of a New Community (which term means a new
community project approved by the Secretary under Title VII of the
Housing and Urban Development Act of 1970 or Title IV of the Housing and
Urban Development Act of 1968), and
(ii) Reflected in a current New Community Development Plan (the
development plan which controls the physical and social development of
the New Community by agreement between each New Community's developer
and the Secretary, as the same may be revised and amended from
time-to-time).
(2) Subparts A, B, C, J, K and O of this part apply to this section,
except to the extent that they are specifically modified or supplemented
by this section.
(b) Eligible applicants. The following entities may apply for and
receive grants pursuant to this section:
(1) Public bodies, including only:
(i) States or units of general local government as defined in the
first sentence of 570.3;
(ii) State land development agencies as defined in section 711(c) of
the Housing and Urban Development Act of 1970; or
(iii) Other local public bodies or agencies as defined in section
711(e) of the Housing and Urban Development Act of 1970, which are
approved by the Secretary for the purpose of providing public facilities
or services to a New Community.
(2) Private developers and non-profit entities, including only:
(i) Private New Community developers approved under sections 711(b)
and 712(b) of the Housing and Urban Development Act of 1970; and
(ii) Community associations or other similar non-profit organizations
established in New Community projects under covenants approved by the
Secretary, which are legally, financially, and administratively
qualified to carry to successful completion those projects for which
grant assistance is sought by the community association.
(c) Application requirements -- (1) General. The requirements of
this paragraph are designed to supplement requirements of the New
Communities Program under which New Community developers will have
already provided substantial information to the Secretary.
(2) Activities program. The application shall be submitted on forms
approved by the Secretary and shall include for each proposed activity:
(i) A description of the activity, including estimated costs and the
relationship of the activity to the grant selection criteria in
570.403(e)(3);
(ii) A map or maps in readable scale which shows the location of each
activity;
(iii) A listing of all sections of the current New Community
Development Plan which refer to each activity together with a
description of the activity's consistency with the plan, or a statement
that the activity was not previously submitted to and approved by HUD as
part of Title IV or Title VII documentation;
(iv) References to all provisions of Environmental Impact Statements,
A-95 clearinghouse reviews and, as applicable, to any currently approved
New Community Budget Agreement or other financial plan reflecting each
activity;
(v) An identification of the owner, as of the application date, of
any interest in the site of any Grant-assisted Facilities (as defined in
paragraph (e) of this section) to be provided under each activity,
including any lien-holders other than the Secretary or a trustee for the
Secretary;
(vi) An identification of each entity which will own any
Grant-assisted Facilities to be provided under each activity, together
with evidence satisfactory to the Secretary that the proposed owner, if
other than the applicant, is willing to accept ownership responsibility;
and
(vii) A copy of all A-95 clearinghouse comments which have not
previously been submitted to the New Community Development Corporation
(NCDC).
(3) Certifications. The application shall include the following
certifications in such form as the Secretary may prescribe:
(i) New Community developers and community associations eligible for
assistance under paragraph (b)(2) of this section shall provide the
assurances required by paragraphs (a), (c), (g), (h), (i), (j), (k),
(l), (m), (r), (s), (t), and (u) of 570.307;
(ii) States, State land development agencies, and other units of
general local government eligible for assistance under paragraph
(b)(1)(i) or (ii) of this section shall provide all of the assurances
required by 570.307, except paragraphs (d) and (f);
(iii) Other public bodies eligible for assistance under paragraph
(b)(1)(iii) of this section shall provide all of the assurances required
by 570.307, except paragraphs (d), (e), and (f).
(4) Environmental review requirements. (i) For activities proposed
by a private developer or community association eligible under paragraph
(b)(2) of this section or by a public body eligible only under paragraph
(b)(1)(iii) of this section no new environmental review or clearances
will be required by virtue of any such activity's proposed funding under
this part if the activity is a part of a previously approved New
Community project for which environmental review clearances have been
completed, which clearances adequately covered such activity, and for
which circumstances, including the availability of additional data or
advances in technology, have not changed significantly.
(ii) States, State land development agencies and units of general
local government eligible under paragraph (b)(1)(i) or (ii) of this
section shall conduct environmental reviews of proposed activities
pursuant to the environmental review procedures in 24 CFR part 58.
(iii) If neither paragraph (c)(4)(i) or (ii) of this section applies,
the Secretary shall determine the need for environmental reviews and
shall conduct any such reviews pursuant to HUD Handbook 1390.1 (38 FR
19182, July 18, 1973), or applicable successor regulations.
(5) (Reserved)
(6) Citizen participation requirements -- (i) Purpose. The
requirements of this paragraph (c)(6) of this section are intended to
provide citizens of the new community, particularly low and moderate
income residents, with the opportunity to provide comments and to
participate in the establishment of funding priorities for all
applications filed by community associations and for any other
applications proposing any of the facilities and activities listed in
subparagraph (ii), at both the initial application stage and at any
subsequent major amendments or reprogrammings.
(ii) Scope. All applications by community associations eligible
under 570.403(b)(2)(ii) and all other applications under this section
which propose the funding of any of the following activities or any
other activities specified by the Secretary, shall comply with the
requirements of subparagraph (iii) below:
(A) Acquisition and/or disposition of real property ( 570.201(a) and
(b)) for any of the other activities listed in this paragraph (c)(6)(ii)
of this section.
(B) Senior centers ( 570.201(c)(1)).
(C) Parks, playgrounds and other recreational facilities (
570.201(c)(2)).
(D) Centers for the handicapped ( 570.201(c)(3)).
(E) Neighborhood facilities ( 570.201(c)(4)).
(F) Fire protection facilities and equipment ( 570.201(c)(6)).
(G) Pedestrian malls and walkways ( 570.201(c)(12)).
(H) Public services ( 570.201(e)).
(I) Removal of architectural barriers ( 570.201(k)).
(J) Rehabilitation and historic preservation ( 570.202).
(K) Activities by private nonprofit entities, neighborhood-based
non-profit organizations, local development corporations, or small
business investment companies ( 570.204).
(L) Provision of information and other resources to residents (
570.206(b)).
(M) Provision of fair housing counseling services ( 570.206(c)).
(iii) Requirements. The applicant shall provide for the following,
pursuant to its own written citizen participation plan, which will not
be subject to prior HUD review or approval:
(A) The provision of program information (including the draft grant
application, program regulations and other similar information) to
interested citizens of the new community in a timely manner prior to the
scheduled public hearing required under paragraph (c)(6)(iii)(C) of this
section.
(B) The publication of a notice of public hearing in a periodical of
general circulation in the new community such as a community association
newsletter or local newspaper. The notice shall be published at least
once a week during the two weeks preceding the week in which the public
hearing is to be held. The notice shall state the time, date and
location of the hearing and specify that the purpose of the hearing is
to solicit citizen views and opinions concerning the application to be
submitted to HUD for a grant in behalf of a new community under the
Secretary's Discretionary Fund of the Community Development Block Grant
Program. The notice shall also state where the program information can
be obtained or examined, whether in person or by mail, and any charges
that may apply. A copy of the draft grant application and program
regulations must be available at the location specified in the first
notice at the time of its publication.
(C) The holding of a public hearing under the auspices of the new
community's community association(s). The hearing shall be held at a
convenient time and location which permits broad participation,
particularly by low and moderate income persons.
(D) The submission of a statement to NCDC with the initial
application, amended application, or reprogramming request that these
requirements have been met, including copies of the required notices and
a summary of the citizen comments.
(d) Review of applications -- (1) Submission of applications -- (i)
Applications for grants under this section from each fiscal year's
appropriation after FY 1978 shall, unless otherwise authorized by the
Secretary, be submitted from October 1 to January 31 of that fiscal
year. For New Communities subject to a Budget Agreement approved by the
Secretary, such applications shall be submitted for review with the next
year's Budget, unless the applicant receives prior approval from the
Secretary to submit the application at a different time. However, the
Secretary may invite the amendment of applications or the submission of
additional applications at other times if funds appropriated for the
fiscal year remain available after evaluation of all applications under
the criteria for selection in paragraph (e)(3) of this section.
(ii) Applications for funds appropriated prior to FY 1979 may be
submitted at any time, until all funds have been obligated or the
appropriation has expired.
(iii) All applications under this section shall be submitted to the
appropriate HUD Area Office, which will assign a project number and
forward the application to NCDC for review.
(2) Acceptance of application. NCDC will accept an application for
review and consideration for a grant if the following conditions are
met:
(i) The application is submitted through the HUD Area Office;
(ii) The application is submitted in accordance with the timing
requirements of paragraphs (d)(1)(i) and (ii) of this section;
(iii) In the judgment of NCDC the application is sufficiently
complete under the requirements of this section for the initiation of
technical reviews; and
(iv) The applicant has complied with the A-95 clearinghouse review
procedures by attaching or enclosing any comments made by or through
State and areawide A-95 clearinghouses or by stating that no comments
have been received or are required.
(3) Scope of review. In addition to reviewing documents included in
the application, NCDC's review may include the evaluation of data and
information supplied by the developer of the New Community project,
including the Project Agreement, Development Plan, Budget Agreement (if
any), and other documents, and may include other independent reviews
conducted by NCDC staff or others at NCDC request. The review will also
include application of the selection criteria included in paragraph
(e)(3) of this section. The applicant may be required to submit
relevant supplementary information at any time after acceptance of the
application.
(4) Timing of review. The Secretary is not required by the Act to
review and approve a discretionary grant application under this section
within any specific time period. For applications submitted in
conjunction with a New Community Budget as described in paragraph
(d)(1)(i) of this section, the Secretary shall use her best efforts to
complete the review and approval of any grants included in such Budget
within 60 days after Budget approval.
(e) Approval of applications -- (1) Eligible activities. Grant
assistance under this section must be used for activities and projects
eligible under subpart C of this part. However, the enumeration of
certain eligible types of activities in subpart C does not itself render
specific activities proposed by individual applicants eligible for
assistance under this section. Other applicable requirements of part
570 and this section must be met to qualify a specific activity for
assistance. For example, activities assisted under this section must be
in behalf of and related to a New Community as described in 570.403(a),
must comply with the ownership requirements in paragraph (e)(2) of this
section and must be approved under the selection criteria in paragraph
(e)(3) of this section.
(2) Ownership requirements. (i) All facilities, real property, or
improvements acquired or constructed with grant assistance provided
under this section (''Grant-assisted Facilities'') are subject to the
ownership requirements of subpart C and any additional requirements of
this paragraph (e)(2).
(ii) A community association eligible under 570.403(b)(2)(ii) must
receive approval from the Secretary to own and operate or maintain
Grant-assisted Facilities, whether or not the community association is
the original grant recipient. Approval will be granted if:
(A) The community association is authorized under its organizational
documents, including applicable covenants approved by the Secretary, to
own and operate or maintain the Grant-assisted Facilities;
(B) The proposed Grant-assisted Facilities meet applicable
requirements for non-public ownership under subpart C, including the
public use requirements in 570.204(b), and
(C) The Secretary determines that the community association is
otherwise legally, financially, and administratively capable of owning,
maintaining or operating the Grant-assisted Facilities.
If the approval is not obtained, a community association grantee
shall, prior to disbursement of grant funds for Grant-assisted
Facilities requiring dedication, enter into one or more dedication
agreements satisfactory in form and substance to the Secretary and
shall, prior to grant closeout, dedicate any Grant-assisted Facilities
to an entity eligible under subpart C to own those Facilities.
(iii) Private developers eligible under 570.403(b)(2)(i) shall,
prior to disbursement of grant funds for Grant-assisted Facilities,
enter into one or more dedication agreements satisfactory in form and
substance to the Secretary and shall, prior to grant close-out, dedicate
any Grant-assisted Facilities to an entity eligible under subpart C or
paragraph (e)(1)(ii) of this section to own those facilities.
(3) Criteria for selection. The following criteria have been
developed in accordance with Departmental goals to select for assistance
under this section among otherwise eligible projects and activities;
with primary emphasis on the provision of decent housing and a suitable
living environment and expanding economic opportunities, primarily for
low- and moderate-income persons. All projects and activities must meet
criteria (i) or (ii). Criteria (iii), (iv) and (v) will provide NCDC
with a basis for giving additional consideration to those projects and
activities which meet the basic criteria.
(i) Benefit to low- and moderate-income persons. A project or
activity will be considered to benefit low- and moderate-income persons
if the applicant demonstrates that:
(A) The activity is designed to meet specific needs of low- and
moderate-income persons or families;
(B) The degree to which low- and moderate-income persons and families
will be served by the project or activity is greater than their
proportionate share of the planned population of the New Community; and
(C) Affirmative efforts will be taken whenever feasible to promote
the use of or benefit from the project or activity by low- and
moderate-income persons or families.
For the purposes of this section, low- and moderate-income persons
and families shall have the meaning set forth in 570.3.
(ii) Maintains the economic viability of the new community. A
project or activity will be considered to meet this criterion if:
(A) It is immediately needed to maintain the economic viability and
growth potential of the New Community in accordance with its development
plan and no other sources of funding are immediately available; and
(B) It is a villagewide, townwide, or community facility, as those
terms are used in the New Communities Program; or
(C) It will specifically contribute to the development of
non-assisted market rate housing which is, in NCDC's judgment, priced to
sell or rent at the lower end of the market when viewed in the context
of the overall market place for the New Community; or
(D) It is an eligible rehabilitation or preservation activity as set
forth in 570.202; an eligible economic development activity as set
forth in 570.203; an eligible activity by a private non-profit entity;
neighborhood-based non-profit organization, local development
corporation, or small business investment company as set forth in
570.204; an eligible planning or urban environmental design cost as set
forth in 570.205; or an eligible administrative cost as set forth in
570.206.
(iii) Innovative value. An activity or project will be considered to
support this criterion to the degree it demonstrates innovative advances
in design and technology in such areas as land utilization; the
construction of buildings and other facilities; energy conservation and
production measures; or enhancement of the physical and social
environment.
(iv) Past performance in carrying out grants provided under this
section. The degree to which the applicant has used funds provided
under this section in a cost effective manner and has expended those
funds in a timely fashion will be considered in applying this criterion
to activities and projects proposed by a particular applicant.
Applicants who have not previously received grants under this section
shall not be given a lower priority for that reason.
(v) Prior levels of funding. The degree to which a New Community has
already benefitted from grants provided under this section will be
considered in the evaluation of grant applications proposed by any
applicant in behalf of a particular New Community. Where all New
Community needs cannot be satisfied within the amount of funds
appropriated for grants under this section, those New Community Projects
which have received the least relative benefits will be given greater
consideration under this criterion.
(4) Consistency with New Community Budget. For New Communities with
a current Budget Agreement, or other similar financial plan, approved by
the Secretary, projects and activities assisted under this section shall
also be generally consistent with the applicable Budget approved by the
Secretary, as it may be amended from time to time.
(5) Finding of compliance with low and moderate income housing goals.
Prior to the award of any grant under this section in any fiscal year,
NCDC shall make a finding that the New Community is in compliance with
the current low and moderate income housing goals contained in the New
Community Development Plan, or that the New Community developer has
taken and is committed, under the terms of its currently approved annual
budget or other similar financial plan approved by the Secretary, to
take specified positive steps within its control toward compliance with
such goals.
(6) Notification of funding approval; conditional approval. (i) The
Secretary will notify applicants of the specific grant amount approved
for any specific activities and projects funded under this section and
will tender a Funding Approval and Grant Agreement for the applicant's
acceptance and execution.
(ii) The Secretary may approve one or more of the specific projects
or activities set forth in the Funding Approval upon conditions
reasonably related to the purpose of the grant. In that case, the
obligation and utilization of grant funds by the grantee may be made
contingent upon the occurrence or continuation of specific actions of
the grantee or other specific events, which shall be described in the
Grant Agreement. The grantee will not be reimbursed for funds spent in
violation of any applicable grant conditions, and grant approval may be
cancelled and the grant closed out as to grant amounts with respect to
which any applicable grant conditions have not been met:
(iii) The Secretary shall issue a conditional approval for specific
projects or activities when:
(A) Local environmental reviews under 570.603 have not been
completed, or
(B) The requirements of 570.607 regarding the provision of public
services or flood or drainage facilities have not yet been satisfied.
(f) Letter to proceed. In response to a request by a public body
applicant eligible under 570.403(b)(1) the Secretary may, in cases of
demonstrated need, issue a letter to proceed authorizing an applicant to
incur costs for the planning and preparation of an application for funds
available under this section or, if applicable, for environmental review
pursuant to the procedures contained in 24 CFR part 58. Reimbursement
for costs incurred pursuant to a letter to proceed will be dependent
upon HUD approval of the application and shall not be based upon a
percentage of the grant. Costs incurred prior to notification of grant
approval or issuance of a letter to proceed by NCDC are not eligible for
assistance under this section.
(g) Program amendments. (1) Recipients shall obtain prior NCDC
approval for all program amendments, including the reprogramming of
funds, for which approval is required by the grant agreement and cost
monitoring system.
(2) Where an amendment proposes one or more new activities or
projects, the amendment shall be submitted on the forms used, and shall
contain all the information required, for an original application.
Applicants shall consult with NCDC as to the form and substance of
documentation required for amendments which do not propose new
activities or projects.
(h) Program management. Program management and performance reporting
shall be accomplished within the framework of NCDC New Community project
management, including the financial and physical progress reports
required by NCDC administrative procedures and the cost monitoring
system which NCDC has developed specifically for grants pursuant to this
section. Recipients under this section are not required to submit an
Annual Performance Report pursuant to 570.906.
(i) Exceptions to regulations. (1) The provisions of subpart J,
Grant Administration, shall be applicable to recipients, except that a
community association or private developer recipient eligible under
paragraph (b)(2) of this section is not required to comply with
competitive bidding requirements of 24 CFR 85.36(d) (2), (3), or (4).
(2) The provisions of subpart K, Other Program Requirements, shall be
applicable to recipients, except that a community association or private
developer eligible under 570.403(b)(2) is not subject to the provisions
of the Hatch Act.
(43 FR 60746, Dec. 28, 1978, as amended at 48 FR 29218, June 24,
1983; 49 FR 10665, Mar. 22, 1984; 53 FR 8058, Mar. 11, 1988; 53 FR
31239, Aug. 17, 1988; 55 FR 29309, July 18, 1990; 56 FR 56127, Oct.
31, 1991)
24 CFR 570.404 Historically Black colleges and universities program.
(a) General. Grants under this section will be awarded to
historically Black colleges and universities to expand their role and
effectiveness in addressing community development needs, including
neighborhood revitalization, housing and economic development in their
localities, consistent with the purposes of title I of the Housing and
Community Development Act of 1974.
(b) Eligible applicants. Only historically Black colleges and
universities (as determined by the Department of Education in accordance
with that Department's responsibilities under Executive Order 12677,
dated April 28, 1989) are eligible to submit applications.
(c) Eligible activities. Activities that may be funded under this
section are those eligible under 570.201 through 570.207, provided
that any activity which is required by State or local law to be carried
out by a governmental entity may not be funded under this section.
Notwithstanding the provisions of 570.200(g), grants under this
section are not subject to the 20 percent limitation on planning and
program administration costs, as defined in 570.205 and 570.206,
respectively.
(d) Applications. Applications will only be accepted from eligible
applicants in response to a Request for Applications (RFA) which will be
issued either concurrently with or after the publication of a Notice of
Funding Availability (NOFA) published in the Federal Register. The NOFA
will describe any special objectives sought to be achieved by the
funding to be provided, including any limitations on the type of
activities to be funded to achieve the objectives, points to be awarded
to each of the selection criteria listed in paragraph (e) of this
section, and any special factors to be evaluated in assigning points
under the selection factors to achieve the stated objectives. The NOFA
will also state the deadline for the submission of applications, the
total funding available for the competition, and the maximum amount of
individual grants. The NOFA will include further information and
instructions for the submission of acceptable applications to HUD.
(e) Selection criteria. Each application submitted under this
section will be evaluated by HUD using the following criteria:
(1) The extent to which the applicant addresses the objectives
published in the NOFA and the RFA.
(2) The extent to which the applicant demonstrates to HUD that the
proposed activities will have a substantial impact in achieving the
stated objectives.
(3) The special needs of the applicant or locality to be met in
carrying out the proposed activities, particularly with respect to
benefiting low- and moderate-income persons.
(4) The feasibility of the proposed activities, i.e., their technical
and financial feasibility, for achieving the stated objectives,
including local support for activities proposed to be carried out in the
locality and any matching funds proposed to be provided from other
sources.
(5) The capability of the applicant to carry out satisfactorily the
proposed activities in a timely fashion, including satisfactory
performance in carrying out any previous HUD-assisted projects or
activities.
(6) In the case of proposals/projects of approximately equal merit,
HUD retains the right to exercise discretion in selecting projects in a
manner that would best serve the program objectives, with consideration
given to the needs of localities, types of activities proposed, an
equitable geographical distribution, and program balance.
(f) Certifications. (1) Certifications required to be submitted by
applicants shall be as prescribed in the RFA packages.
(2) In the absence of independent evidence which tends to challenge
in a substantial manner the certifications made by the applicant, the
required certifications will be accepted by HUD. If independent
evidence is available to HUD, however, HUD may require further
information or assurances to be submitted in order to determine whether
the applicant's certifications are satisfactory.
(g) Multiyear funding commitments. (1) HUD may make funding
commitments of up to five years, subject to the availability of
appropriations. In determining the number of years for which a
commitment will be made, HUD will consider the nature of the activities
proposed, the capability of the recipient to carry out the proposed
activities, and year-by-year funding requirements.
(2) Awards will be made on the basis of a 12-month period of
performance. Once a recipient has been selected for a multi-year award,
that recipient would not be required to compete in a competition for the
subsequent funding years covered by the multi-year funding commitment.
Recipients performing satisfactorily will be invited to submit
applications for subsequent funding years in accordance with
requirements outlined in the Notice of Funding Availability and Request
for Grant Application. Subject to the availability of appropriations,
subsequent-year funding will be determined by the following:
(i) The recipient has submitted all reports required for the previous
year or years in a timely, complete and satisfactory manner in
accordance with the terms and conditions of the grant.
(ii) The recipient has submitted sufficient evidence to demonstrate
successful completion of the tasks and deliverables of the grant. A
determination of satisfactory performance will be made by HUD based upon
evidence of task completions provided by the recipient, along with data
from client feedback and site evaluations.
(iii) The recipient has submitted the next annual application.
(iv) The subsequent year's application is consistent with that
described in the original application.
(3) Recipients participating in multi-year funding projects are not
eligible to apply for additional grants for the same project or activity
subject area for which they are receiving funds. Recipients are,
however, eligible to compete for grants for other project or activity
areas.
(h) Selection and notification. The HUD decision to approve,
disapprove or conditionally approve an application shall be communicated
in writing to the applicant.
(i) Environmental and intergovernmental review. The requirements for
Intergovernmental Reviews do not apply to HBCU awards. HUD will conduct
an environmental review in accordance with 24 CFR part 50 before giving
its approval to a proposal.
(56 FR 18968, Apr. 24, 1991)
24 CFR 570.405 The insular areas.
(a) Eligible applicants. Eligible applicants are Guam, the Virgin
Islands, American Samoa, the Trust Territory of the Pacific Islands, and
the Commonwealth of the Northern Mariana Islands.
(b) Threshold requirements. HUD shall review each grantee's progress
on outstanding grants made under this section based on the grantee's
performance report, the timeliness of close-outs and compliance with
fund management requirements and pertinent regulations, taking into
consideration the size of the grant and the degree and complexity of the
program. If HUD determines upon such review that the applicant does not
have the capacity effectively to administer a new grant, or a portion of
a new grant, in addition to grants currently under administration, the
applicant shall not be invited to submit an application for the current
year's funding.
(c) Previous audit findings and outstanding monetary obligations.
HUD shall not accept for review an application from an applicant that
has either an outstanding audit finding for any HUD program, or an
outstanding monetary obligation to HUD that is in arrears, or for which
a repayment schedule has not been established and agreed to. The Field
Office manager may waive this restriction if he or she finds that the
applicant has made a good faith effort to clear the audit. In no
instance, however, shall a waiver be provided when funds are due HUD,
unless a satisfactory arrangement for repayment of the debt has been
made and payments are current.
(d) Criteria for funding. The Secretary shall establish, for each
fiscal year, an amount for which eligible applicants may apply. Grant
amounts will be based on population of the applicant and its performance
in previous years. In determining performance, HUD will consider
program achievements and the applicant's effectiveness in using program
funds. Effectiveness in using program funds shall be measured by
reviewing audit, monitoring and performance reports.
(e) Application and performance reporting. Application and
performance reporting requirements are as follows:
(1) Applicants must submit applications within 90 days of the
notification of the grant amount from HUD.
(2) Applicants must meet the application requirements in 570.430
relating to small cities single purpose grants.
(3) At a time determined by the Field Office, grant recipients shall
submit an annual performance report of progress made on previously
funded grants. The status report shall be in narrative form addressing
three areas:
(i) Progress. Progress in completing activities, the work remaining,
changes in the implementation schedule, a breakdown of funds expended on
each approved project and a comparison between the amount allocated to
the recipient and amounts obligated by the recipient;
(ii) Grantee assessment. A description of the effectiveness of
funded activities in meeting the recipient's community development
needs; and
(iii) Environment. A status report on each of the following:
(A) The environmental assessments and environmental impact statements
prepared by the recipient;
(B) Action taken in compliance with other environmental obligations;
(C) For exempt activities, compliance with the conditions of 24 CFR
58.34; and
(D) If appropriate, environmental reviews of emergency projects under
24 CFR 58.33.
(f) Costs incurred by the applicant. (1) Notwithstanding any other
provision of this part, HUD will not reimburse or recognize any costs
incurred by an applicant before submission of the application to HUD.
(2) Normally, HUD will not reimburse or recognize costs incurred
before HUD approval of the application for funding. However, under
unusual circumstances, the Field office manager may consider and
conditionally approve written requests to recognize and reimburse costs
that will be incurred after submission of the application but before it
is approved where failure to do so would impose undue or unreasonable
hardship on the applicant. Conditional approvals will be made only
before the costs are incurred and where the conditions for release of
funds have been met in accordance with 24 CFR 58.22, and with the
understanding that HUD has no obligation whatsoever to approve the
application or to reimburse the applicant should the application be
disapproved.
(g) Criteria for conditional approval. HUD may approve a grant
subject to specified conditions. In any such case, the obligation and
utilization of funds may be restricted. The reasons for the conditional
appproval and the actions necessary to remove the conditions shall be
specified. Failure of the applicant to satisfy the conditions may
result in a termination of the grant. A conditional approval may be
granted under any of the following circumstances:
(1) When local environmental reviews under 24 CFR part 58 have not
yet been completed;
(2) To ensure that actual provision of other resources required to
complete the proposed activities will be available within a reasonable
period of time;
(3) To ensure that a project can be completed within its estimated
costs;
(4) Where the grantee is required to satisfy an outstanding debt due
to HUD under a payment plan executed between the grantee and the
Department;
(5) Pending resolution of problems related to specific projects or
the capability of the grantee to obtain resources needed to carry out,
operate or maintain the project; or
(6) Pending approval of site and neighborhood standards for proposed
housing projects.
(h) Citizen participation. (1) The applicant shall provide for
appropriate citizen participation in the application and amendment
process. The applicant must, at least, do each of the following:
(i) Furnish citizens with information concerning the amount of funds
available for community development and housing activities and the range
of activities that may be undertaken, including the estimated amount
proposed to be used for activities that will benefit persons of low and
moderate income, and the plans of the grantee for minimizing
displacement of persons as a result of activities assisted with such
funds and to assist persons actually displaced;
(ii) Hold one or more public hearings (scheduled at convenient times
and places) to obtain the views of citizens on community development and
housing needs;
(iii) Develop and publish or post the community development statement
in such a manner as to afford affected citizens an opportunity to
examine its contents and to submit comments;
(iv) Afford citizens an opportunity to review and comment on the
applicant's performance under any community development block grant.
(2) Before submitting the application to HUD, the applicant shall
certify that it has (i) met the requirements of paragraph (h)(1) of this
section; (ii) considered any comments and views expressed by citizens;
and (iii) if appropriate, modified the application accordingly and made
the modified application available to citizens.
(50 FR 37526, Sept. 16, 1985)
24 CFR 570.406 Formula miscalculation grants.
(a) General. Grants under this section will be made to States and
units of general local government determined by the Secretary to have
received insufficient amounts under section 106 of the Act as a result
of a miscalculation of its share of funds under such section.
(b) Application. Since the grant is to correct a technical error in
the formula amount which should have been awarded under section 106, no
application is required.
(c) Use of funds. The use of funds shall be subject to the
requirements, certifications and Final Statement otherwise applicable to
the grantee's section 106 grant funds provided for the fiscal year in
which the grant under this section is made.
(d) Unavailability of funds. If sufficient funds are not available
to make the grant in the fiscal year in which the Secretary makes the
determination required in paragraph (a) of this section, the grant will
be made, subject to the availability of appropriations for this Subpart,
in the next fiscal year.
(56 FR 41940, Aug. 26, 1991)
24 CFR 570.410 Special Projects Program.
(a) Program objectives. The Community Development Special Projects
Program enables HUD to award grants to States and units of general local
government, subject to availability of funds, for special projects that
address community development activities or techniques consistent with
the purposes of Title I of the Housing and Community Development Act of
1974, as amended.
(b) Eligible applicants. Only States and units of general local
government (as defined in 570.3) are eligible to submit proposals or
applications for Special Projects grants. Proposals or applications may
be submitted by eligible applicants on behalf of themselves, on behalf
of other eligible applicants, or jointly by more than one eligible
applicant.
(c) Eligible activities. (1) Project activities that may be funded
under this section are those eligible under 24 CFR part 570 -- Community
Development Block Grants, subpart C -- Eligible Activities. No more
than twenty (20) percent of the funds awarded under this section may be
used for overall program administration or planning activities eligible
under 570.205 and 570.206.
(2) The amount of funds awarded to a unit of general local government
under this section that may be used for public service activities is
limited. The applicant may use whichever of the following methods of
calculation yields the highest amount:
(i) Fifteen percent of the special projects grant;
(ii) An amount equal to 15 percent of the sum of special project
grant funds plus grant funds received for the same federal fiscal year
under the Entitlement or State program, less the amount of the
Entitlement or State program grant funds which will be used for other
public service activities; or
(iii) In the case of an applicant that is an Entitlement grantee
subject to the exception in 570.201(e)(3), an amount equal to the
amount of the Entitlement grant funds received for the same federal
fiscal year that may be used for public service activities, less the
amount of the Entitlement grant funds which will be used for other
public service activities.
(d) Proposals. Eligible applicants may submit unsolicited proposals.
HUD may ask proposers to submit additional information if necessary for
evaluation. There is no HUD commitment to fund any unsolicited proposal
regardless of its merit. If HUD elects to fund a proposal, it will
request that the proposer submit a formal application.
(1) Three (3) copies of a proposal must be sent to the address stated
in (3), below. Each proposal submitted pursuant to this Section shall
be evaluated by HUD using the following criteria:
(i) The extent to which the proposal satisfies purposes of this Title
and addresses a special community development need.
(ii) The eligibility of proposed activities.
(iii) The feasibility of the project; i.e., its technical and
financial feasibility for achieving the goals stated in the proposal.
(iv) The capacity of the proposer to carry out satisfactorily the
proposed project activities.
(2) If the proposal is submitted jointly by, or on behalf of, more
than one eligible applicant, the proposal must:
(i) Contain a cooperation agreement signed by the Chief Executive
Officer of each participating jurisdiction which specifies concurrence
with the purpose and intent of the proposal and intent to comply with
grant requirements;
(ii) Address problems faced by all jurisdictions listed in the
proposal; and,
(iii) Be submitted by the lead jurisdiction. The lead jurisdiction
shall be responsible for overall coordination and administration of the
project.
(3) Unsolicited proposals may be submitted any time during the year.
However, if there are no funds available for such proposals, they will
be returned without review. Proposals shall contain a Standard Form 424
signed by the Chief Executive Officer of the State or unit of general
local government. They shall be sent to: Department of Housing and
Urban Development, Office of Community Planning and Development, 451
Seventh Street, SW., Washington, DC 20410, Attention: Director, Office
of Program Policy Development, CPP.
(e) Applications. Applications are accepted only from eligible
applicants in response to letters of solicitations, or to competition
announcements published in Notices in the Federal Register. Submission
requirements and criteria to be used by HUD to evaluate solicited
applications and instructions regarding their submission shall be stated
in each Notice or letter.
(f) Certifications. Applications shall contain the certifications
required by 24 CFR 570.303, except that regarding citizen participation:
The applicant must certify that citizens likely to be affected by the
project, particularly low- and moderate-income persons, have been
provided an opportunity to comment on the proposal or application. If
the application is submitted jointly, or on behalf of more than one
jurisdiction, each jurisdiction shall submit the required
certifications.
(g) Selection and notification. The HUD decision to approve,
disapprove or conditionally approve a proposal or application shall be
communicated in writing to the applicant.
(47 FR 30054, July 12, 1982, as amended at 54 FR 31672, Aug. 1, 1989;
55 FR 29309, July 18, 1990; 56 FR 56127, Oct. 31, 1991)
24 CFR 570.415 Community Development Work Study Program.
(a) Applicability and objectives. HUD makes grants under CDWSP to
institutions of higher education, either directly or through areawide
planning organizations or States, for the purpose of providing
assistance to economically disadvantaged and minority students who
participate in a work study program while enrolled in full-time graduate
or undergraduate programs in community and economic development,
community planning or community management. The primary objectives of
the program are to attract economically disadvantaged and minority
students to careers in community and economic development, community
planning, and community management, and to provide a cadre of
well-qualified professionals to plan, implement and administer local
community development programs.
(b) Definitions. The following definitions apply to CDWSP:
''Applicant'' means an institution of higher education, a State, or
an areawide planning organization that submits an application for
assistance under CDWSP.
''Areawide planning organization (APO)'' means an organization
authorized by law or by interlocal agreement to undertake planning and
other activities for a metropolitan or nonmetropolitan area.
''CDWSP'' means the Community Development Work Study Program.
''Community development academic program'' or ''academic program''
means an undergraduate or graduate degree program in community and
economic development, community planning, community management, or other
related fields of study. Related fields include public administration,
public policy, urban economics, urban management, or urban planning, and
exclude social and humanistic fields such as law, economics (except for
urban economics), education, and history. Community development
academic program or academic program does not include academic programs
that offer joint fields of study in related and unrelated fields.
''Economically disadvantaged and minority students'' means students
who satisfy all applicable guidelines established at the participating
institution of higher education to measure financial need for academic
scholarship or loan assistance, including, but not limited to, students
who are Black, American Indian/Alaskan Native, Hispanic, or
Asian/Pacific Island.
''Institution of higher educaiton'' means a public or private
educational institution that offers graduate or undergraduate degrees in
a community development academic program and that is accredited by an
accrediting agency or association recognized by the Secretary of
Education under 34 CFR part 603.
''Recipient'' means an approved applicant that executes a grant
agreement with HUD.
''Student'' means a student enrolled in an eligible full-time
academic program. He/she must be a first-year student in a two-year
graduate program (or a junior in an undergraduate program). Students
enrolled in Ph.D. programs are ineligible.
(c) Assistance provided -- (1) Types of assistance available. HUD
provides funding in the form of grants to recipients who make assistance
available to eligible students. Grants are provided to cover the costs
of student assistance and for an administrative allowance.
(i) Student assistance. Grants are made to recipients to cover the
costs of assistance provided to eligible students in the form of student
stipends, tuition support, and additional support.
(A) Student stipend. The amount of the student stipend is based upon
the prevailing hourly rate for initial entry positions in the community
and economic development field and the number of hours worked by the
student at the work placement assignment. The amount of the student
stipend may not exceed the actual cost incurred, up to a maximum of
$6,000 per year (undergraduate student) and $9,000 per year (graduate
student).
(B) Tuition support. The amount of the tuition support may not
exceed the tuition charged at the participating institution of higher
education up to a maximum of $3,000 per year (undergraduate student) and
$3,500 per year (graduate student).
(C) Additional support. The recipient may provide additional support
for books, and support for travel related to the academic program, work
placement assignment, or attendance at conferences sponsored by
professional organizations in the field of community and economic
development. The amount of additional support may not exceed the actual
costs incurred, up to a maximum of $1,000 per year (undergraduate
student) and $1,500 per year (graduate student).
(ii) Administrative allowance. HUD provides an allowance to
recipients to cover the administrative costs of the program. The
administrative allowance is $1,000 per year for each student
participating in the program.
(2) Number of students assisted. The minimum number of students that
may be assisted is three students per participating institution of
higher education. If an areawide planning organization or State
receives assistance for a program that is conducted by two or more
institutions of higher education, each participating institution must
have a minimum of three students in the program. The maximum number of
students that may be assisted under CDWSP is ten students per
participating institution of higher education.
(d) Recipient eligibility and responsibilities. -- (1) Recipient
eligibility. (i) The following organizations are eligible to apply for
assistance under the program:
(A) Institutions of higher education. Institutions of higher
education offering graduate degrees in a community development academic
program are eligible for assistance under CDWSP. Institutions of higher
education that offer undergraduate degrees in a community development
academic program are eligible if the institution is located in a
metropolitan statistical area (MSA) and no institution of higher
education located in that metropolitan area offers graduate degrees in a
community development academic program, or if the institution is located
in one of the nonmetropolitan areas (non-MSA) of a State and no
institution of higher education located in that nonmetropolitan area
offers graduate degrees in a community development academic program.
(B) Areawide planning organizations and states. An areawide planning
organization or a State may apply for assistance for a program to be
conducted by two or more institutions of higher education.
(1) Institutions of higher education participating in an APO program
must be located within the metropolitan or nonmetropolitan area served
by the APO. Institutions of higher education participating in a State
program must be located within the State.
(2) Except as provided below, participating institutions must offer
graduate degrees in a community development academic program. Programs
involving a participating institution that offers only undergraduate
degrees in a community development academic program are eligible under
the following circumstances: In the case of institutions participating
in an APO program, no institution of higher education located within the
metropolitan or nonmetropolitan area served by the APO offers graduate
degrees in a community development academic program; or in the case of
institutions participating in a State program, no institution of higher
education located within the metropolitan or nonmetropolitan area in
which the institution offering undergraduate degrees is located offers
graduate degrees in a community development academic program.
(ii) If a State is approved for funding, institutions of higher
education located in the State are not eligible recipients. If an APO
is approved for funding, institutions of higher education located in the
metropolitan area or nonmetropolitan area served by the APO are not
eligible recipients. (Such institutions, however, may receive
assistance through participation in an APO or State program.)
(iii) To be eligible in future funding competitions for CDWSP,
recipients are required to maintain a 50 percent rate of graduation from
a CDWSP-funded academic program.
(2) Recipient responsibilities. (i) The recipient is responsible for
the administration of the program, for compliance with all program
requirements, and for the coordination of program activities carried out
by the work placement agencies and (if the recipient is an APO or
State), by the participating institutions of higher education. The
recipient must:
(A) Recruit and select students for participation in CDWSP. The
recipient shall establish recruitment procedures that identify eligible
minority economically disadvantaged students pursuing career in
community and economic development, and make such students aware of the
availability of assistance opportunities. Students must be selected
before the beginning of the semester for which funding has been
provided.
(B) Recruit and select work placement agencies, and negotiate and
execute agreements covering each work placement assignment.
(C) Refer participating students to work placement agencies and
assist students in the selection of work placement assignments.
(D) Provide regularly scheduled seminars designed to relate the work
experience provided under CDWSP to the educational experience in the
participating students' academic program and to address career planning
and permanent job placement. At least one seminar each semester or
quarter must address student obligations under CDWSP.
(E) Assign sufficient staff to administer and supervise the program
on a day-to-day basis, and, where the recipient is an APO or State, to
monitor the activities of the work study coordinating committee.
(F) Encourage participating students to obtain employment for a
minimum of two years after graduation with a unit of State or local
government, Indian tribe or nonprofit private organization that receives
community development funds.
(G) Maintain records by racial and ethnic categories for each
economically disadvantaged student enrolled in the CDWSP.
(H) Keep records and make such reports as HUD may require.
(I) Comply with all other applicable Federal requirements.
(ii) If the recipient is an APO or State, the recipient must also:
(A) Establish a committee to coordinate activities between program
participants, to advise the recipient on policy matters, to assist the
recipient in ranking and selection of participating students, and to
review disputes concerning compliance with program agreements and
performance. The committee shall be chaired by a representative of the
recipient, and shall include representatives of the participating
institutions of higher education, work placement agencies, students, and
HUD.
(B) Allocate the assistance awarded under the program to the
participating institutions of higher education. APOs and States may not
make fractional awards to institutions. (E.g., awards to institutions
must assist a fixed number of students and not, for example, 6.5
students.)
(e) Institutions of higher education. Institutions of higher
education participating in a program are responsible for providing its
educational component. Where the recipient is an APO or State, the
institution of higher education shall assist the APO or State in the
administration and operation of the program. Responsibilities include
assisting the recipient in the selection of students by determining the
eligibility of students for the academic program, and by making the
analysis of students under the financial need guidelines established by
the institution. All institutions of higher education must comply with
other applicable Federal requirements.
(f) Work placement agencies eligibility and responsibilities -- (1)
Eligibility. To be eligible to participate in the CDWSP, the work
placement agencies must be an agency of a State or unit of general local
government, an areawide planning organization, an Indian tribe, or a
private nonprofit organization involved in comprehensive planning, land
use, community development or housing activities.
(2) Responsibilities. Work placement agencies must:
(i) Provide practical experience and training in the community and
economic development, community planning, or community management field
to participating students through work placement assignments. Work
placement assignments must offer students experience in planning,
developing, and administering a local community or economic development
program.
(ii) Consult with the institution of higher education (and the APO or
State, where an APO or State is the recipient) to ensure that the
student's work placement assignment provides the requisite experience
and training to meet the required number of work hours specified in the
student work placement agreement.
(iii) Provide a sufficient number of work placement assignments to
provide participating students with a wide choice of work experience.
(iv) Require each student to devote 12-20 hours per week during the
regular school year, or 35-40 hours a week during the summer, to the
work placement assignment. Work placement agencies may provide
flexibility in the work period, if such a schedule is consistent with
the requirements of the student's academic program. However, a
participating student may receive stipend payment only during the period
that the student is placed with the work placement agency.
(v) Comply with all other applicable Federal requirements.
(vi) Maintain such records as HUD may require.
(g) Student eligibility and responsibilities. Students apply
directly to recipients receiving grants under CDWSP. Students shall be
selected in accordance with the following eligibility requirements and
selection procedures.
(1) Eligibility. To be eligible for CDWSP, the student:
(i) Must satisfy all applicable guidelines established at the
participating institution of higher education to measure financial need
for academic scholarship or loan assistance.
(ii) Must be a full-time student enrolled in the first year of
graduate study in a community development academic program at the
participating institution of higher education. If an institution of
higher education participating in CDWSP offers only undergraduate
degrees in a community development academic program, the individual must
be a junior enrolled full-time in an undergraduate degree program.
Individuals enrolled in doctoral programs are ineligible.
(iii) Must demonstrate an ability to maintain a satisfactory level of
performance in the community development academic program and in work
placement assignments, and to comply with the professional standards set
by the recipient and the work placement agencies.
(iv) May not have previously participated in CDWSP.
(v) Must provide appropriate written evidence that he or she is
lawfully admitted for permanent residence in the United States, if the
individual is not a citizen.
(2) Selection. In selecting among eligible students, the recipient
must consider the extent to which each student has demonstrated:
(i) Financial need under the applicable financial need guidelines
established at the institution of higher education;
(ii) An interest in, and commitment to, a professional career in
community and economic development, community planning or community
management;
(iii) The ability satisfactorily to complete academic and work
placement responsibilities under CDWSP.
(3) Student responsibilities. Participating students must:
(i) Enroll in a two-year program. A student's academic and work
placement responsibilities include: Full-time enrollment in an approved
academic program; maintenance of a satisfactory level of performance in
the community development academic program and in work placement
assignments; and compliance with the professional conduct standards set
by the recipient and the work placement agency. A satisfactory level of
academic performance consists of maintaining a B average on the graduate
level, and on the undergraduate level maintaining a grade-point average
that would enable the student to graduate within the approval period of
the grant. A student's participation in CDWSP shall be terminated for
failure to meet these responsibilities and standards. If a student's
participation is terminated, the student is ineligible for further CDWSP
assistance and must repay to the recipient any tuition support and
additional support received. (The student is not required to repay the
stipend.)
(ii) Agree to make a good-faith effort to obtain employment with a
unit of State or local government or Indian tribe administering
community development programs, or a non-profit private organization
that receives community development funds. The term of employment
should be for at least two consecutive years following graduation from
the academic program. If the student does not obtain such employment,
the student is not required to repay the assistance received.
(h) Notice of fund availability. HUD will solicit grant applications
from institutions of higher education, APO's and States by publishing a
notice of fund availability in the Federal Register. The notice will:
(1) Explain how application packages (requests for grant
applications) providing specific application requirements and guidance
may be obtained;
(2) Specify the place for filing completed applications, and the date
by which the applications must be physically received at that location;
(3) State the amount of funding available under the notice;
(4) Provide other appropriate program information and guidance.
(i) Recipient selection process. The selection process for
applications under CDWSP consists of a threshold review, ranking of
eligible applications and final selection.
(1) Threshold. To be eligible for ranking, applicants must meet each
of the following threshold requirements:
(i) The application must be filed in the application form prescribed
by HUD, and within the required time periods;
(ii) The applicant must demonstrate that it is eligible to
participate;
(iii) The applicant must demonstrate that each institution of higher
education participating in the program as a recipient has the required
academic programs and faculty to carry out its activities under CDWSP.
Each work placement agency must have the required staff and community
development work study program to carry out its activities under CDWSP.
(2) Ranking. All applications that meet the threshold requirements
will be placed in priority funding order. In ranking applications, HUD
will consider:
(i) The relative quality of the academic program offered by the
institution of higher education; quality of the academic supervision
and amount of resources to be committed by the institution of higher
education to the academic program; and the rate of graduation from
previous CDWSP academic programs funded under these regulations.
(ii) The extent to which the participating students will receive a
sufficient number and variety of work placement assignments, the
assignments will provide practical and useful experience to students
participating in the program, and the assignments will further the
participating students' preparation for professional careers in
community or economic development, community planning, or community
management.
(iii) The degree to which proposed seminars will relate the
experience provided under the work placement assignments with the
educational experience provided under the academic program, and will
address career planning and permanent job placement.
(iv) The extent to which the proposed program will lead participating
students directly and immediately to permanent employment in community
or economic development, community planning, or community management
upon completion of the program.
(v) The degree to which an applicant will be able effectively to
coordinate and administer the program.
(vi) The recipient's relative commitment to meeting the needs of
minority economically disadvantaged students. If the applicant is an
APO or State, HUD will also consider the extent of the APO's (or
State's) commitment to meeting the needs of minority economically
disadvantaged students.
(3) Final selection. Eligible applications will be considered for
selection in their rank order. HUD may make awards out of rank order to
achieve geographic diversity, and may provide assistance to support a
number of students that is less than the number requested under
applications in order to provide assistance to as many highly ranked
applications as possible.
(j) Agreements -- (1) Grant agreement. The responsibilities of the
recipient under CDWSP will be incorporated in a grant agreement executed
by HUD and the recipient.
(2) Student agreement. The recipient and each participating student
must execute a written agreement incorporating their mutual
responsibilities under CDWSP. The agreement must be executed before the
student can be enrolled in the program. A student's participation in
CDWSP shall be terminated for failure to meet the responsibilities and
standards in the agreement.
(3) Work placement assignment agreement. The institution of higher
education, the APO or state (if an APO or State is the grant recipient),
the participating student, and the work placement agency must execute a
written agreement covering each work placement assignment. The
agreement must address the responsibilities of each of the parties, the
educational objectives, the nature of supervision, the standards of
evaluation, and the student's time commitments under the work placement
assignment.
(4) APO (or state) and institution of higher education. Where the
recipient is an APO (or a State), the recipient and each participating
institution of higher education must execute a written agreement
incorporating their mutual responsibilities under CDWSP.
(k) Grant administration -- (1) Initial obligation of funds. When
HUD selects an application for funding, and notifies the recipient, HUD
will obligate funds to cover the amount of the approved grant. The
initial obligation of funds will provide for student grants for two
years.
(2) Disbursement. Recipients will receive grant payments by direct
deposit on a reimbursement basis. If that is not possible, grant
payments will be made by U.S. Treasury checks.
(3) Deobligation and recipient repayment. (i) HUD may deobligate
amounts for grants if proposed activities are not begun or completed
within a reasonable time after selection.
(ii) If a student's participation in CDWSP is terminated before the
completion of the two-year term of the student's program, the recipient
must repay to the Federal Government the amount of the tuition support
and additional support provided to the student under CDWSP. Recipients
are required to make this repayment even though the student fails to
fulfill his or her repayment obligation to the recipient. The recipient
is eligible to receive payment for the cost of the student stipend paid
before the date of the student's termination, and for an administrative
allowance that is based on the proportion of the two-year term completed
by the student. The recipient may substitute a student to complete the
two-year term of a student whose participation has been terminated. The
substituted student must be otherwise eligible for participation in
CDWSP and must have a sufficient number of academic credits to complete
the degree program within the remaining portion of the terminated
student's two-year term.
(iii) Where an undue hardship would result from the application of
the repayment requirement and where the application of the requirement
would not adversely affect the purposes of CDWSP, HUD may, on a
case-by-case basis, exempt the student or the recipient from repayment
requirements under CDWSP. Such exemptions will be granted where a
student is unable to work or to complete the program because of serious
illness or death, or is unable to fulfill his or her financial
obligations due to bankruptcy.
(iv) Consistent with OMB Circulars No. A-101 and A-110, HUD, in the
grant agreement, will set forth in detail other circumstances under
which funds may be deobligated, recipients may be liable for repayment,
or other sanctions may be imposed.
(I) Other Federal requirements. -- (1) Handicap provision.
Recipients must provide a statement certifying that no otherwise
qualified handicapped person shall, solely by reason of handicap, be
excluded from participation in, be denied the benefits of, or otherwise
be subjected to discrimination under the CDWSP.
(2) Nondiscrimination. The recipient must adhere to the following
nondiscrimination provisions: The requirements of Title VIII of the
Civil Rights Act of 1968, 42 U.S.C. 3600-20 (Fair Housing Act) and
implementing regulations issued at subchapter A of title 24 of the Code
of Federal Regulations; Title VI of the Civil Rights Act of 1964 (42
U.S.C. 2000d-4) (Nondiscrimination in Federally Assisted Programs) and
implementing regulations issued at 24 CFR part 1; section 504 of the
Rehabilitation Act of 1973 (29 U.S.C. 794) and implementing regulations
at 24 CFR part 8; Executive Order 11063 and implementing regulations at
24 CFR part 107; and the Age Discrimination Act of 1975, and
implementing regulations at 24 CFR part 146.
(54 FR 27131, June 27, 1989)
24 CFR 570.415 Subpart F -- Small Cities Program
Source: 47 FR 35677, Aug. 16, 1982, unless otherwise noted.
24 CFR 570.420 General.
Under the Community Development Block Grant (CDBG) Program, each
State may elect to administer all aspects of the Program for the
nonentitlement areas within its jurisdiction. Subpart I of this part
570 establishes the policies and procedures applicable where the State
elects to administer the Program. This subpart F sets forth policies
and procedures applicable to grants for nonentitlement areas in States
which elect not to administer the funds.
(a) Scope and applicability. This subpart describes the Small Cities
Program's policies and procedures in those States where HUD will
continue to administer the Program. The allocation of funds to States
is as provided in subpart A of this part. Except as modified in this
subpart, the policies and procedures set forth in subparts A, C, J, K,
and O of this part apply to the HUD administered Small Cities Program.
The HUD Environmental Review Procedures contained in 24 CFR part 58 also
apply to this subpart.
(b) Program objectives. The Small Cities Program provides grants to
units of general local government in both metropolitan and
nonmetropolitan areas to undertake the eligible community development
activities listed in subpart C of this part. The Small Cities Program,
however, is competitive in nature and the demand for funds far exceeds
the amount available. Therefore, eligible applicants selected for
funding will be those communities having the greatest need as evidenced
by poverty and whose applications most adequately address locally
determined needs.
(c) Eligible applicants. Eligible applicants are units of general
local government, excluding: Metropolitan cities, urban counties, units
of government which are participating in urban counties or metropolitan
cities even if only part of the participating unit of government is
located in the urban county or metropolitan city, and Indian tribes
eligible for assistance under section 107(a)(3) of the Act. An
application may be submitted individually or jointly.
(d) Types of grants. Recognizing that needs of communities vary
widely, the Small Cities Program has two types of grants --
Comprehensive and Single Purpose.
(e) Distribution of funds between Comprehensive Grants and Single
Purpose Grants. Before any applications are received, the Area Manager
shall determine and make public the percentage of the Area Office's
allocation that shall be provided for Single Purpose Grants, and the
percentage that shall be provided for Comprehensive Grants. This
determination of how funds will be distributed between Single Purpose
and Comprehensive Grants shall be based on the following criteria:
(1) Whether the contemplated distribution will provide for a
competition among applicants within each category;
(2) The needs expressed by eligible communities within the Area
Office's jurisdiction; and
(3) Distribution between Single Purpose and Comprehensive Grants in
prior years, and the success of those distributions in meeting the needs
of the eligible communities within the Area Office's jurisdiction.
(f) Size of grants -- (1) Ceilings. Each Area Office may establish
general grant ceilings for both Single Purpose and Comprehensive Grants.
Separate grant ceilings may be established for joint applicants.
(2) Individual grant amounts. Both Single Purpose and Comprehensive
grants for specific grantees will be provided in amounts commensurate
with the size of the applicant and the applicant's program. In
determining appropriate grant amounts for each applicant, HUD may
consider an applicant's population, need, proposed activities, ability
to carry out the proposed program, and previous funding levels.
(g) Restrictions on applying for grants. Each applicant may apply
for either a Comprehensive Grant or a Single Purpose Grant, but not
both, in each fiscal year. For the purpose of this restriction, each
unit of government participating in a joint application is considered to
have applied for a grant. In addition, however, applicants may also
apply for imminent threat grants as described in 570.432.
(h) Method of selecting grantees -- (1) National selection system.
HUD has established national selection and rating systems for both
Comprehensive and Single Purpose Grants which identify the criteria used
in selecting grantees. Applicant's proposals are rated and ranked
pursuant to 570.424 or 570.428.
(2) Application. For the purpose of selecting grantees, HUD shall
require all applicants to submit an application in a form prescribed by
HUD. The application must include sufficient information to permit HUD
to rate the application against the various selection criteria (except
the needs factors described in 570.424(a) and (b) or in 570.428(a) and
(b)), and must advise HUD of the source of information and the method
used to compile the information for the application. Existing sources
of information, such as area-wide analyses, State plans or needs
assessments, and data from the Bureau of the Census should be used
whenever possible. Local surveys may be necessary to document the
information submitted in the application. Decisions made by HUD in
selecting grantees are documented and will be made available to the
public upon request.
(3) Deadlines for submission. HUD shall establish deadlines for
submission of applications by publication of a Notice in the Federal
Register.
(i) Data used for the needs factors. Data used in this subpart with
respect to the needs factors ( 570.424(a) through (b) and 570.428(a)
through (b)) is from the United States Bureau of the Census. HUD uses
the most recent Census data which is consistent as of the same point or
period in time for all data elements in each needs factor and which can
be applied to all potential applicants in the State. Data used for
county applicants is that of the entire county, minus the data
attributable to each jurisdiction within the county which is eligible to
receive an Entitlement grant.
(j) Previous audit findings and outstanding monetary obligations.
HUD shall not accept an application from an applicant that has an
outstanding audit finding for any HUD program or has an outstanding
monetary obligation to HUD. Additionally, HUD shall not accept an
application from an applicant that includes activities in a unit of
general local government that has an outstanding audit finding for any
HUD program or has an outstanding monetary obligation to HUD. The
Regional Administrator may provide waivers to this prohibition, but in
no instance shall a waiver be provided when funds are due HUD, unless a
satisfactory arrangement for repayment of the debt has been made.
(k) Program design. (1) Section 101(c) of the Act establishes as its
primary objective ''the development of viable urban communities, by
providing decent housing and a suitable living environment, and
expanding economic opportunities, principally for persons of low and
moderate income.'' This overall objective is achieved through a program
where the projected use of funds has been developed so as to give
maximum feasible priority to activities which will benefit low- and
moderate-income families or aid in the prevention or elimination of
slums or blight; the projected use of funds may also include activities
which the grantee certifies are designed to meet other community
development needs having a particular urgency because existing
conditions pose a serious and immediate threat to the health or welfare
of the community where other financial resources are not available to
meet such needs. The choice of activities on which block grant funds
are to be expended represents the determination by the applicant as to
which approach or approaches will best serve these objectives. Each
program or project must directly impact on the applicant's identified
need, as well as meet at least one of the broad national objectives
described above.
(2) Review for compliance with primary objectives -- (i) Standards.
Consistent with the foregoing, each CDBG funded activity must meet one
of the three national objectives. In determining whether each of the
grantee's activities meets one of the broad national objectives
contained in its certification, the Secretary will consider whether the
activity meets one of the following standards:
(A) Activities benefiting low- and moderate-income persons. The
following activities, in the absence of substantial evidence to the
contrary, will be considered to benefit low- and moderate-income
persons:
(1) Any activity, other than residential rehabilitation, which is so
designed or so located that at least a majority of the beneficiaries are
low- and moderate-income persons. The following are examples of
activities which meet this standard:
(i) An activity, other than residential rehabilitation, which
primarily serves an area, delineated by the recipient, where a majority
of the residents are low- and moderate-income persons. Such an area
need not be coterminous with census tract boundaries.
(ii) Economic development activities designed to create or retain
permanent jobs, the majority of which are available or will be available
to low- and moderate-income persons. Jobs are considered to be
available to low- and moderate-income persons based on the nature and
extent of the skills, education, and experience required to qualify for
the jobs; training opportunities which would make such jobs available
to low- and moderate-income persons who would not otherwise qualify;
advertising and recruiting efforts directed toward low- and
moderate-income persons; and the accessibility of the jobs to areas
where substantial numbers of low- and moderate-income persons reside.
(iii) A facility, such as a senior center, which is used principally
by low- and moderate-income persons.
(iv) An activity which has income eligibility requirements that limit
the benefits of the activity to low- and moderate-income persons.
(2) A special project directed to removal of material and
architectural barriers which restrict the mobility and accessibility of
elderly or handicapped persons to publicly owned and privately owned
buildings, facilities, and improvements.
(3) An activity which must be carried out prior to or as an integral
part of an activity which will principally benefit low- and
moderate-income persons. An example is the extension of water and sewer
lines to permit construction of low-income housing. The cost of such
activities must not be unreasonable in relation to the low- and
moderate-income benefit to be provided.
(4) Rehabilitation of:
(i) Single-family residential structures occupied by low- and
moderate-income households; or
(ii) Multi-family residential structures where more than half of the
rehabilitated units in each structure are occupied by low- and
moderate-income households.
Since rental units might not be occupied by the same households after
rehabilitation as before rehabilitation, rental units affordable to low-
and moderate-income households after rehabilitation will be considered
occupied by such households for the purpose of meeting this standard.
For purposes of this provision, ''affordable rental unit'' for low- and
moderate-income households shall be determined by the grantee. The
grantee shall maintain in its records the criteria used in making its
determination.
(5) An eligible activity in support of new construction of a
multifamily non-elderly housing project where at least 20 percent of the
units will be available to low- and moderate-income persons.
(B) Activities which aid in the prevention or elimination of slums or
blight. The following activities, in the absence of substantial
evidence to the contrary, will be considered to aid in the prevention or
elimination of slums or blight:
(1) Any activity which is carried out in and designed to upgrade an
area:
(i) Meeting a definition of slums, blighted, deteriorated, or
deteriorating area under State or local law; or
(ii) Where there are objectively determinable signs of physical
deterioration throughout the area; except that residential
rehabilitated will be considered to meet this standard only where each
structure rehabilitated is considered substandard under local definition
before rehabilitation. At a minimum this definition must include units
which do not meet the Section 8 Existing Housing Quality Standards (24
CFR 882.109). Also, under this standard, all deficiencies making a
structure substandard must be eliminated before assistance may be
provided for less critical work on that structure. (Note: Despite this
restriction, any rehabilitation activity which benefits low- and
moderate-income households as described in paragraph (i)(A)(4) of this
section, can be undertaken within an area meeting the criteria of this
standard.) Formal designation of a slum or blighted area is not required
under this standard, but evidence supporting the local determination
that an area meets the criteria must be maintained by the recipient.
(2) Acquisition, demolition, residential rehabilitation, relocation,
and historic preservation activities designed to eliminate specific
conditions of blight or physical decay on a spot basis anywhere in the
recipient's jurisdiction. Under this standard, residential
rehabilitation for other than lower-income households is eligible only
to the extent necessary to eliminate specific conditions detrimental to
public health and safety.
(3) Activities necessary to complete Federally assisted urban renewal
projects.
(C) Activities designed to meet community development needs having a
particular urgency. In the absence of substantial evidence to the
contrary, an activity will be considered to address this standard if the
recipient certifies that the activity is designed to alleviate existing
conditions which pose a serious and immediate threat to the health or
welfare of the community which are of recent origin or which recently
became urgent, that the recipient is unable to finance the activity on
its own, and that other sources of funding are not available.
(ii) Area benefit activities. For purposes of determining compliance
with the primary objectives, each separate activity that serves a
specific area will be considered on the basis of that service area.
(iii) Planning and administrative costs. Program funds expended for
planning and administrative costs under 570.205 and 570.206 will be
considered to address the primary objectives.
(3) Activities outside an applicant's boundaries. An applicant may
conduct eligible block grant activities outside its boundaries. These
activities must be demonstrated to be appropriate to meeting the
applicant's needs and objectives and must be consistent with State and
local law. This provision includes using funds provided under this
subpart in a metropolitan city or an urban county.
24 CFR 570.421 Applications from joint applicants.
(a) Units of general local government, including counties, may submit
a joint application which addresses common problems faced by the
jurisdictions, the solution of which requires the mutual action of the
joint applicants.
A joint application must be pursuant to a written cooperation
agreement submitted with the application. The cooperation agreement
must authorize one of the participating units of government to act as
the applicant which will submit the application to HUD, and delineate
the responsibilities of each participating unit of government with
respect to the Small Cities Program. The applicant is responsible for
ensuring compliance with all laws, regulations, and Executive Orders
applicable to the Community Development Block Grant Program.
(b) Data. For joint applications, data from each participating unit
is aggregated.
570.422 (Reserved)
24 CFR 570.423 Comprehensive Grant program, general requirements.
(a) Definition. A comprehensive program must meet all of the
following criteria:
(1) Address a substantial portion of the identifiable community
development needs within a defined area or areas;
(2) Involve two or more activities that bear a relationship to each
other, excluding administration, planning, and management, and which
either in terms of support or necessity are carried out in a coordinated
manner; and
(3) Have beneficial impact within a reasonable period of time.
Exceptions to the requirement that the activities be located within a
defined area or areas may be made if the applicant can demonstrate to
HUD's satisfaction that the proposal represents a reasonable means of
addressing the needs identified.
An application for a Comprehensive Grant which does not meet the
definition of the Comprehensive Grant program may be considered for a
Single Purpose Grant.
(b) Multiyear funding commitments. HUD shall not make new multiyear
commitments to any applicant after December 31, 1981. Grants under
multiyear commitments approved by HUD prior to December 31, 1981 will be
funded, subject to funding availability, for those applicants that have
met the requirements of paragraph (c) of this section, and providing:
(1) The grantee submits the annual submission of a multiyear
application described in 570.426(e), and HUD determines that the annual
program is consistent with that described in the original application or
has been properly amended pursuant to 570.434.
(2) HUD determines that the grantee's performance is adequate.
Performance determinations are based on the criteria described in
570.423(c)(2).
(3) HUD approves the application under the provisions of 570.433.
(c) Threshold requirements -- (1) Program objectives. (i) No grant
shall be made to an applicant whose program does not directly impact on
the applicant's need. Additionally, each activity must meet the
requirements of 570.420(k) in benefitting low and moderate income
persons, or aiding in the prevention or elimination of slums or blight.
Activities may also be included that the applicant certifies are
designed to meet other community development needs having a particular
urgency because existing conditions pose a serious and immediate threat
to the health and welfare of the community, and where other financial
resources are not available to meet such needs.
(ii) HUD will generally accept data from communities showing that the
proposed activities meet the criteria of paragraph (c)(1)(i) of this
section. However, if available data, in the judgment of HUD, indicate
that the proposed activities are inconsistent with the requirements of
this subparagraph, HUD may request additional information or
justification.
(2) Capacity and performance. No grant shall be made to an applicant
that lacks the capacity to undertake the proposed program. Applicants
which have participated in the Block Grant Program previously must have
performed adequately. Performance and capacity determinations may be
the basis for rejecting an application from further consideration. In
determining whether an applicant has performed adequately, HUD examines
the applicant's performance in the following areas:
(i) Community development activities. Compared with the applicant's
schedule or schedules submitted in each previously funded application:
(A) The rate of progress achieved in moving activities into
execution; and
(B) The rate of expenditure and obligation of community development
funds.
(ii) Housing activities. (A) Notwithstanding the provisions of
570.909(e), HUD shall determine the performance of an applicant to be
adequate if it has met its Housing Assistance Plan (CHAS) goals or,
absent achievement of its CHAS goals, if it has used available housing
assistance resources to meet its CHAS goals.
(B) HUD shall determine the applicant's performance to be inadequate
if the applicant has taken an action which clearly prevents the
provision of assisted housing for low and moderate income persons. A
unit of general local government which has taken an action to prevent
the provision of assisted housing is ineligible to apply for a grant
under this Program until it has taken corrective action.
(iii) Compliance with applicable laws and regulations. (A) The
applicant's compliance with the laws, regulations, and Executive Orders
applicable to the Community Development Block Grant program;
(B) Resolution of findings made as a result of HUD monitoring; and
(C) Resolution of audit findings.
(47 FR 35677, Aug. 16, 1982, as amended at 56 FR 56127, Oct. 31,
1991)
24 CFR 570.424 Selection system for Comprehensive Grants.
Applications are rated and scored against each of the following
factors. All points for each factor are rounded to the nearest whole
number. The maximum score possible is 615.
Points
(1) Need -- absolute number of poverty persons 75
(2) Need -- percent of poverty persons 75
(3) Program impact 400
(4) Outstanding performance:
Fair Housing 40 Local equal opportunity efforts 25
Applications from counties and joint applications in which a county
is participating are scored separately with respect to the needs factor
at 570.424(a).
(a) Need -- absolute number of poverty persons (75 points). All
applicants are compared in terms of the number of persons whose incomes
are below the poverty level. Individual scores are obtained by dividing
each applicant's absolute number of persons in poverty by the greatest
number of persons in poverty of any applicant and multiplying by 75.
(b) Need -- percent of poverty persons (75 points). All applicants
are compared in terms of the percentage of their population below the
poverty level. Individual scores are obtained by dividing each
applicant's percentage of persons in poverty by the highest percentage
of persons in poverty of any applicant and multiplying by 75.
(c) Program impact (400 points). Each applicant shall select four
program design criteria from among the following ten. HUD shall measure
the impact of the program on the identifiable needs in relation to the
amount of funds requested for each of the program design criteria
selected, considering:
Extent and seriousness of the identifiable needs;
Results to be achieved;
Number of persons to benefit, given the type of program;
The nature of the benefit;
Additional actions that may be necessary to fully resolve the needs;
Previous coordinative actions taken by the applicant to address the
needs;
Environmental considerations;
Whether displacement will be involved and what steps will be taken to
minimize involuntary displacement and to mitigate its adverse effects or
related hardships; and
Where appropriate, housing site selection standards.
(1) Program design criteria. (i) Supports comprehensive neighborhood
conservation, stabilization, and/or revitalization.
(ii) Provides housing choice within the community either outside
areas with concentrations of minorities and low and moderate income
persons or in a neighborhood which is experiencing revitalization and
substantial displacement as a result of private reinvestment, by
enabling low and moderate income persons to remain in their
neighborhood.
(iii) Supports the expansion of housing for low and moderate income
persons by providing additional housing units not previously available.
(iv) Addresses a serious deficiency in a community's public
facilities.
(v) Expands or retains employment opportunities.
(vi) Attracts or retains businesses which provide essential services.
(vii) Removes slums or blighted conditions.
(viii) Resolves a serious threat to health or safety.
(ix) Supports other Federal or State programs being undertaken in the
community or deals with the adverse impact of another recent Federal or
State action. The other Federal or State program or action must be of
substantial size or impact in the community in relation to the proposed
program.
(x) Supports energy production or conservation.
(2) Rating and ranking methods. This factor requires a two-step
rating process. First, the potential of the proposed program of
activities to achieve the results intended by each selected criterion
when considered in relation to other communities addressing the same
criterion is assessed. A numerical value is assigned, based on the
following:
The results would have insignificant impact 0
The results would have minimal impact 2
The results would have a moderate impact 4
The results would have a maximum impact 8
After each of the four criteria selected by an applicant is rated and
a value assigned, the total is added (Program Impact Score maximum is
32). Then, the actual points are determined by dividing each
applicant's Program Impact Score by the highest Program Impact Score
achieved by any applicant and multiplying the result by four hundred.
(d) Performance in fair housing and equal opportunity (50 points) --
(1) Fair Housing efforts (40 points) -- (i) Twenty points are awarded to
applicant providing assisted housing for low and moderate income
families located in a manner which provides housing choice either in
areas outside of minority and low and moderate income concentrations;
or in a neighborhood which is experiencing revitalization and
substantial displacement as a result of private reinvestment, by
enabling low and moderate income persons to remain in their
neighborhood. However, if the community is predominantly inhabited by
persons who are members of minority and/or low income groups, HUD shall
assess the extent to which assisted housing is distributed throughout
the community; and
(ii) Twenty points are awarded to applicants for implementation of a
HUD-approved New Horizons Fair Housing Assistance Project (or
demonstrated participation in a HUD-approved county/State/regional New
Horizons Project); or implementation of a fair housing strategy that is
equivalent in scope to a New Horizons Project.
(2) Local Equal Employment and Entrepreneurial Efforts (25 points).
(i) Fifteen points are awarded to each applicant which demonstrates that
at least five percent of all its contracts based on dollar value have
been awarded within the past two years to minority owned and controlled
businesses, providing the applicable percentage of minority population
is five percent or less. If the applicable percentage of minority
population exceeds five percent, then the applicant must have a
corresponding percentage of its contracts awarded to minority
businesses; however, twenty percent of the total dollar value of its
contracts awarded to minority business enterprise will be sufficient for
award of points for any applicant. The applicable percentage of
minority population is the percentage of minorities in the applicant's
jurisdiction, or in the county, whichever is higher.
(ii) Ten points. are awarded to each applicant which demonstrates
that its percentage of minority permanent, full-time employment is
greater than the percentage of minorities within the county, unless the
percentage of minority population in the community itself exceeds that
of the county, in which case minority employment must reflect the
minority population of the community.
(e) Funding process -- (1) Final ranking. The points received by
each applicant on the rating factors are totalled and the applications
ranked according to the point totals. Applicants are funded based on
this final ranking to the extent funds are available.
(2) Procedural error. If an Area Office made a procedural error in
the previous year's competition that, when corrected, would have
resulted in awarding sufficient points to warrant funding of an
otherwise eligible applicant, HUD may fund that applicant from current
year funding.
570.425 (Reserved)
24 CFR 570.426 Application for Comprehensive Grants.
(a) The applicant shall prepare and publish a proposed application.
(b) The applicant shall submit to HUD a final application containing
its community development objectives and activities. This final
application shall be submitted in a form prescribed by HUD, to the
appropriate area office.
(c) Certification. (1) The certifications shall be submitted in a
form prescribed by HUD. For Federal Fiscal Year 1992 and thereafter, if
the application contains any housing activities, the applicant shall
certify that the proposed housing activities are consistent with its
Comprehensive Housing Affordability Strategy.
(2) In the absence of independent evidence (which may, but need not
be derived from performance reviews or other sources) which tend to
challenge in a substantial manner the certifications made by the
applicant, such certifications will be accepted by HUD. If such
independent evidence is available to HUD, however, HUD may require
further information or assurances to be submitted in order to find the
applicant's certifications satisfactory.
(d) If the applicant has received prior assistance under this part,
the area office will normally use information available within the area
office to make the performance judgments required at 570.423(c)(2). The
area office may request additional information only in cases where it is
essential to make the required performance judgments.
(e)(1) Applications for the second or third increments of a previous
HUD multiyear commitment shall be submitted in a form prescribed by HUD,
and shall include the certifications in subsection (c)(1).
(2) Area offices shall establish individual dates for submission of
each final application from those grantees which have received multiyear
commitments in prior years.
(Approved by the Office of Management and Budget under control number
2506-0060)
(47 FR 35677, Aug. 16, 1982, as amended at 56 FR 56128, Oct. 31,
1991)
24 CFR 570.427 Single Purpose Grant program general requirements.
(a) General. A Single Purpose Grant provides funds for one or more
projects, each consisting of an activity or a set of activities and
designed to meet a specific community development need. Funds are
available to address serious problems with housing, public facilities
which affect the public health and safety, or economic development.
(b) Projects. An applicant may seek funds for more than one project
and for more than one problem area as long as the total grant request is
within any established grant ceilings and individual grant amounts that
are established. Each project is rated separately with respect to
570.428(c). Grants requested, either by themselves or in combination
with other stated funding sources, must be sufficient to complete the
program.
(c) Threshold requirements. Each applicant must meet the
requirements of 570.423(c).
24 CFR 570.428 Selection system for Single Purpose Grants.
Projects are rated and scored against each of the following factors.
All points for each factor are rounded to the nearest whole number. The
maximum score possible is 615.
(1) Need -- absolute number of poverty persons 75
(2) Need -- percent of poverty persons 75
(3) Program impact 400
(4) Outstanding Performance:
Fair Housing 40 Local equal opportunity efforts 25
Applications from counties and joint applications in which a county
is participating, are scored separately with respect to the needs factor
at 570.428(a).
(a) Need -- absolute number of poverty persons (75 points). All
applicants are compared in terms of the absolute number of poverty
persons below the poverty level. Individual scores are obtained by
dividing each applicant's absolute number of poverty persons by the
greatest number of poverty persons of any applicant and multiplying the
result by 75.
(b) Need -- percent of poverty persons (75 points). All applicants
are compared in terms of the percentage of their population below the
poverty level. Individual scores are obtained by dividing each
applicant's percentage of poverty persons by the highest percentage of
poverty persons of any applicant and multiplying the results by 75.
(c) Program impact (400 points). Each project is compared to others
addressing the same problem area. HUD shall measure the impact of the
project on the identified need in relation to the amount of funds
requested, considering:
Extent and seriousness of the identified need;
Results to be achieved;
Number of persons to benefit, given the type of program;
The nature of the benefit;
Additional actions that may be necessary to fully resolve the need;
Previous coordinative actions taken by the applicant to address the
need;
Environmental considerations;
Whether displacement will be involved and what steps will be taken to
minimize involuntary displacement and to mitigate its adverse effects or
related hardships; and
Where appropriate, housing site selection standards.
(1) Problem areas. Each project described in the application must
address one of the following three categories:
(i) Housing.
(ii) Deficiencies in public facilities which affect the public health
and safety.
(iii) Economic conditions.
Each applicant must use specific measurable terms to explain how its
project impacts the problem area selected.
(2) Rating method. All projects addressing the same problem area are
compared in terms of impact on the identified problem area, as follows:
The project would have insignificant impact 0
The project would have minimal impact 100
The project would have moderate impact 200
The project would have substantial impact 300
The project would have maximum impact 400
(d) Performance in housing and equal opportunity (65 points) -- (1)
Fair Housing efforts (40 points) -- (i) Twenty points are awarded to
applicants providing assisted housing for low and moderate income
families located in a manner which provides housing choice either in
areas outside of minority and low and moderate income concentrations or
in a neighborhood which is experiencing revitalization and substantial
displacement as a result of private reinvestment, by enabling low and
moderate income persons to remain in their neighborhood; however, if
the community is predominantly inhabited by persons who are members of
minority and/or lower income groups, HUD shall assess the extent to
which assisted housing is distributed throughout the community; or
(ii) Twenty points are awarded to applicants for implementation of a
HUD-approved New Horizons Fair Housing Assistance Project (or
demonstrated participation in a HUD-approved county/State/regional New
Horizons Project); or implementation of a fair housing strategy that is
equivalent in scope to a New Horizons Project.
(2) Local equal employment and entrepreneurial efforts (25 points) --
(i) Fifteen points are awarded to each applicant which demonstrates that
at least five percent of all its contracts based on dollar value have
been awarded within the past two years to minority owned and controlled
businesses, providing the applicable percentage of minority population
is five percent or less. If the applicable percentage of minority
population exceeds five percent, then the applicant must have a
corresponding percentage of its contracts awarded to minority
businesses; however, twenty percent of the total dollar value of its
contracts awarded to minority business enterprise will be sufficient for
award of points for any applicant. The applicable percentage of
minority population is the percentage of minorities in the applicant's
jurisdiction, or in the county, whichever is higher.
(ii) Ten points are awarded to each applicant which demonstrates that
its percentage of minority permanent, full-time employment is greater
than the percentage of minorities within the county unless the
percentage of minority population in the community itself exceeds that
of the county, in which case minority employment must reflect the
minority population of the community.
(e) Funding process -- (1) Final ranking. The points received on
each project on the rating factors are totalled and the project ranked
according to the point totals. Applicants are funded based on this
final ranking to the extent funds are available.
(2) Procedural error. If an Area Office made a procedural error in
the previous year's competition that, when corrected, would have
resulted in awarding sufficient points to warrant funding of an
otherwise eligible applicant, HUD may fund that applicant from current
year funding.
570.429 (Reserved)
24 CFR 570.430 Application for Single Purpose Grants.
(a) The applicant shall prepare and publish a proposed application.
(b) The applicant shall submit to HUD a final application containing
its community development objectives and activities. This final
application shall be submitted in a form prescribed by HUD, to the
appropriate area office.
(c) Certification. (1) The certifications shall be submitted in a
form prescribed by HUD. For Federal Fiscal Year 1992 and thereafter, if
the application contains any housing activities, the applicant shall
certify that the proposed housing activities are consistent with its
Comprehensive Housing Affordability Strategy.
(2) In the absence of independent evidence (which may, but need not
be derived from performance reviews or other sources) which tend to
challenge in a substantial manner the certifications made by the
applicant, such certifications will be accepted by HUD. If such
independent evidence is available to HUD, however, HUD may require
further information or assurances to be submitted in order to find the
applicant's certifications satisfactory.
(d) If the applicant has received prior assistance under this part,
the area office will normally use information available within the area
office to make the performance judgments required at 570.423(c)(2). The
area office may request additional information only in cases where it is
essential to make the required performance judgments.
(Approved by the Office of Management and Budget under control number
2506-0060)
(47 FR 35677, Aug. 16, 1982, as amended at 56 FR 56128, Oct. 31,
1991)
24 CFR 570.431 Citizen participation requirements.
(a) Proposed application. In order to permit public examination and
appraisal of the applicant's proposed application and to enhance public
accountability, the applicant shall:
(1) Furnish citizens information concerning:
(i) Amounts of funds available for proposed community development and
housing activities, and
(ii) The range of activities that may be undertaken;
(2) Hold one or more public hearings to obtain the views of citizens
on community development and housing needs. Public hearings shall be
scheduled in ways and at times that will provide for full participation
by citizens in the community.
(3)(i) Develop and publish the proposed application of objectives and
activities in such a manner as to afford affected citizens an
opportunity to examine its contents, and to submit comments on the
proposed application;
(ii) Afford citizens an opportunity to review and comment on the
applicant's performance under any active community development block
grant.
(b) Final application. The applicant shall:
(1) Consider any comments and views expressed by citizens on the
proposed application, and may if it deems appropriate, modify the
proposed application accordingly;
(2) Make the final application available to the public prior to its
submission to HUD.
(c) Amendments. To assure citizen participation when considering
subsequent amendments to a community development program which requires
HUD approval, a grantee shall:
(1) Furnish citizens information concerning this amendment;
(2) Hold one or more public hearings to obtain views of citizens on
the proposed amendment; or
(3) Develop and publish the proposed amendment in such a manner as to
afford affected citizens an opportunity to examine the contents, and to
submit comments on the proposed amendment;
(4) Consider any comments and views expressed by citizens on the
proposed amendment, and, if deemed appropriate by the applicant, modify
the final amendment accordingly;
(5) Make the final amendment to the community development program
available to the public prior to its submission to HUD.
24 CFR 570.432 Single Purpose Grants for imminent threat to public
health or safety.
(a) Criteria. The following criteria apply for an imminent threat to
public health or safety:
(1) Notwithstanding the provisions of 570.428, the Area Manager may,
at any time invite an application which requests funds available under
this subpart in response to a request for assistance to alleviate an
imminent threat to public health or safety that requires immediate
resolution. HUD shall verify the urgency and the immediacy of the
threat with an appropriate authority other than the applicant prior to
acceptance of the application, and the Area Manager shall review the
claim to determine if , in fact, an imminent threat to public health or
safety does exist. For example, an applicant with documented cases of
disease resulting from a contaminated drinking water supply has an
imminent threat to public health, while an applicant ordered to improve
the quality of its drinking water supply over the next two years does
not have an imminent threat within the definition of this paragraph.
These funds are to be used to deal with those threats which represent an
unique and unusual circumstance, not for the type of threat that occurs
with frequency in a number of communities within a State.
(2) The applicant does not have sufficient local resources, and other
Federal or State resources are unavailable to alleviate the imminent
threat.
(b) HUD action. (1) Each Area Office Manager is authorized to
reserve up to 15 percent of the funds allocated pursuant to subpart A
and assigned to the Area Office for Small Cities Grants to alleviate
imminent threats to the public health or safety. Funds reserved are
part of the percentage of funds available for Single Purpose Grants.
Applications shall be submitted in accordance with 570.430.
(2) Applications which meet the requirements of this section may be
approved by the Area Office Manager without competition.
(3) The only funds reserved for imminent threats to the public health
or safety are those set aside by the Area Manager. After these funds
have been depleted, HUD shall not consider further requests for grants
relating to imminent threats during that fiscal year.
(c) Letter to proceed. Section 570.433(a)(3) notwithstanding, after
a determination has been made that an imminent threat exists, HUD may
issue the applicant a letter to proceed to incur costs to alleviate the
imminent threat. Reimbursement of such costs is dependent upon HUD
approval of the final application.
(d) Environmental review. Pursuant to 24 CFR 58.34(a)(8), Single
Purpose Grants for imminent threat to public health or safety are
excluded from some or all of the environmental review requirements of
part 58, to the extent provided therein.
24 CFR 570.433 HUD review and actions on final applications for Single
Purpose and Comprehensive Applicants.
(a) Final application submission -- (1) Submission deadline. HUD
shall establish a time period during which final applications must be
submitted to the appropriate area office. The dates for this period are
published in a notice in the Federal Register. Final applications may
be mailed, and if they are received after the deadline, must be
postmarked no later than the published submission deadline date. Any
application not received or postmarked by this date is unacceptable, and
will be returned.
(2) Incomplete applications. Applications must contain the
information required by HUD. Information relative to the application
will not be accepted or considered if received after the submission
deadline unless specifically requested in writing by HUD.
(3) Costs incurred by the applicant. (i) HUD will not reimburse or
recognize any costs incurred before submission of the final application,
except under a multiyear commitment and then, subject to prior HUD
approval, only where failure to recognize such costs would create undue
hardships on the grantee.
(ii) Also, HUD will not normally reimburse or recognize costs
incurred before HUD approval of the final application. However, under
unusual circumstances the Area Manager may consider and approve written
requests to recognize and reimburse costs incurred after submission of
the application where failure to do so would impose undue or
unreasonable hardship on the applicant. Such authorization will be made
only where the conditions for release of funds under the provisions for
environmental review have been met pursuant to 24 CFR part 58; and with
the understanding that HUD has no obligation whatsoever to approve the
application.
(b) HUD action on the final application -- (1) Review and
notification. Following the review, rating and ranking of the
applications, HUD will promptly notify each applicant of the action
taken with regard to its application. Documentation which supports HUD
decisions about applications is available to the public.
(2) Fundable applications. Each applicant whose application has
ranked sufficiently high to warrant funding as described at 570.424(e),
or 570.428(e), as well as multiyear submissions pursuant to
570.423(b), will be notified that its application has been approved and
will be offered a grant agreement provided that it has met the threshold
requirements described at 570.423(c)(2).
(3) Criteria for conditional approval. HUD may make a conditional
approval in which the case the grant will be approved but the obligation
and utilization of funds is restricted. The reasons for the conditional
approval and the actions necessary to remove the condition shall be
specified. Failure to satisfy the condition may result in a termination
of the grant. Conditional approval may be made:
(i) Where local environmental reviews under 570.603 have not yet
been completed;
(ii) The requirements of 570.607 regarding the provision of flood or
drainage facilities have not yet been satisfied;
(iii) To ensure that actual provision of other resources required to
complete the proposed activities will be available within a reasonable
period of time;
(iv) To ensure the project can be completed within estimated costs;
or
(v) Pending site and neighborhood standards approval for proposed
housing projects, if applicable.
(4) Non-fundable applications. Those applicants whose applications
did not rank sufficiently high to warrant funding as described at
570.424(e) or 570.428(e), or who have not met the threshold
requirements described at 570.423(b) and (c), will be notified that
their applications cannot be funded.
24 CFR 570.434 Program amendments for Single Purpose and Comprehensive
Grants.
(a) Grantees shall request prior HUD approval for all program
amendments involving new activities or alteration of existing activities
that will significantly change the scope, location, or objectives of the
approved activities or beneficiaries. Approval is subject to the
following:
(1) Programs or projects which include new or significantly altered
activities are rated in accordance with the criteria for selection
applicable at the time the original preapplication or application,
whichever is applicable, was rated. The rating of the program or
projects proposed which include the new or altered activities proposed
by the amendment must be equal to or greater than the lowest rating
received by a funded project or program during that cycle of ratings.
(2) Consideration shall be given to whether any new activity proposed
can be completed promptly.
(b) Any program amendments that do not require HUD approval must be
fully documented in the grantee's records.
(c) Citizen participation requirements. Whenever an amendment
requires HUD approval, the requirements for citizen participation at
570.431(c) must be met.
24 CFR 570.435 Special procedures applicable to the State of Hawaii.
(a) General. This section shall apply to the HUD-administered Small
Cities Program in the State of Hawaii.
(b) Scope and applicability. Except as otherwise provided in this
section, the policies and procedures contained in this subpart shall
apply to the HUD-administered Small Cities Program in the State of
Hawaii.
(c) Grant amounts -- (1)(i) Grant amount. For each eligible unit of
general local government, a formula grant amount shall be determined
which bears the same ratio to the total amount available for the
nonentitlement area of the State as the weighted average of the ratios
between:
(A) The population of that eligible unit of general local government
and the population of all eligible units of general local government in
the nonentitlement areas of the State;
(B) The extent of poverty in that eligible unit of general local
government and the extent of poverty in all the eligible units of
general local government in the nonentitlement areas of the State; and
(C) The extent of housing overcrowding in that eligible unit of
general local government and the extent of housing overcrowding in all
the eligible units of general local government in the nonentitlement
areas of the State.
In determining the average of the ratios under this paragraph, the
ratio involving the extent of poverty shall be counted twice and each of
the other ratios shall be counted once.
(0.25+0.50+0.25=1.00.)
(ii) Grant amounts under this section may be adjusted where an
applicant's performance is judged inadequate, considering:
(A) Capacity to utilize the grant amount effectively and efficiently;
(B) Substantial compliance with the applicant's schedule or schedules
submitted in each previously funded application;
(C) Compliance with other program requirements based on monitoring
visits and audits.
(iii) Applicants shall be advised by certified mail of the date for
submission of applications and of amounts of grants to be provided.
(2) Reallocation. (i) Any amounts which become available as a result
of adjustments under paragraph (c)(1)(ii) of this section or reductions
under subpart O shall be reallocated in the same fiscal year to any
remaining eligible applicants on a pro rata basis.
(ii) Any formula grant amounts reserved for an applicant that chooses
not to submit an application shall be reallocated to any remaining
eligible applicants on a pro rata basis.
(iii) No amounts shall be reallocated under paragraph (c)(2) in any
fiscal year to any applicant whose grant amount was adjusted under
paragraph (c)(1)(ii) or reduced under subpart O.
(d) Applications -- (1) Submission. HUD shall require all applicants
to submit an application for the amount established under paragraph
(c)(1) of this section or for reallocated funds, in a form prescribed by
HUD. Each activity proposed by an applicant must meet at least one of
the broad national objectives as described in 570.420(k).
(2) Review and notification. HUD shall review each application for
compliance with the requirements of 570.420(k) and with 24 CFR part
570, subpart C. Following review of the applications, each applicant
that has met the requirements of 570.423(c)(2) and of this
subparagraph, will be notified that its application has been approved
and will be offered a grant agreement.
(3) Conditional approval. HUD may make a conditional approval of a
grant in accordance with the criteria established in 570.433(b)(3).
(4) Amendments. Section 570.434 shall apply to program amendments,
except that 570.434(a)(1) shall not apply.
(The reporting or recordkeeping requirement contained in paragraph
(d)(1) were approved by the Office of Management and Budget under
control number 2506-0060)
(48 FR 22916, May 23, 1983)
570.436 (Reserved)
24 CFR 570.437 Applicability of 24 CFR part 791.
For purposes of 24 CFR part 791, previously approved Housing
Assistance Plans remain in effect.
(47 FR 35677, Aug. 16, 1982, as amended at 49 FR 6714, Feb. 23, 1984)
24 CFR 570.438 Reallocated funds.
(a) General. This section governs reallocated funds originally
allocated for use under 24 CFR part 570, subpart F (Small Cities
Program) and subpart I (States Program) where HUD is administering the
program at the time at which funds become available.
(b) Assignment of funds to be reallocated. (1) Reallocated funds
shall be added to the next Small Cities Program competition; or
(2) Fund any application not selected for funding in the most recent
Small Cities competition due to a procedural error made by HUD; or
(3) Fund the most highly ranked unfunded application or applications
from the most recent Small Cities Program competition.
(c) Timing. Funds which become available shall be used as soon as
practicable. Where funds become available pursuant to 248.498 and
248.499 of this title (actions against a State administering the
program), the funds shall be used in the succeeding fiscal year.
(47 FR 35677, Aug. 16, 1982, as amended at 49 FR 6715, Feb. 23, 1984)
24 CFR 570.438 Subpart G -- Urban Development Action Grants
Source: 47 FR 7983, Feb. 23, 1982, unless otherwise noted.
24 CFR 570.450 Purpose.
(a) The purpose of urban development action grants is to assist
cities and urban counties which are experiencing severe economic
distress to help stimulate economic development activity needed to aid
in economic recovery.
(b) HUD will allocate grant funds throughout the year to ensure that
assistance is available for each funding cycle. Not less than
twenty-five percent of the funds made available under this subpart shall
be used for small cities.
(c) Specific provisions for cities and urban counties containing
Pockets of Poverty are found in 570.466.
(47 FR 7983, Feb. 23, 1982, as amended at 49 FR 31070, Aug. 3, 1984)
24 CFR 570.451 Definitions.
The following definitions apply only to this subpart:
(a) A large city means any metropolitan city pursuant to 570.3 and
any city with a population of 50,000 or more.
(b) A small city means any city under fifty thousand which is not a
central city of a metropolitan area.
(c) A distressed community is a city or urban county which meets the
criteria in 570.452.
(d) A Pocket of Poverty means a severely distressed area meeting the
requirements of 570.466(a) which is located in a city or urban county
which does not meet the distress criteria of 570.452. As used in this
subpart, a Pockets of Poverty Community is a city or urban county which
contains a pocket of poverty.
(e) An eligible applicant is a city or urban county which meets the
eligibility requirements of 570.453 and either the requirements of
570.452 on distress or the requirements of 570.466(a) for Pockets of
Poverty.
(f) Activities mean all activities of the project, unless otherwise
specified.
(g) A project means the group of integrally related activities which
are to be carried out by the applicant or an agent or agency of the
applicant and all public and private participating parties, as listed in
the grant agreement.
(h) A participating party is any person, firm, corporation, or entity
so identified in the grant agreement which has agreed to perform
activities.
(i) A firm private commitment means the agreement by which the
private participating party in the action grant program agrees to
perform an activity specified in the application and demonstrates the
financial capacity to deliver the resources necessary to carry out the
activity, and commits the resources to the project. No project will be
considered for funding unless it contains a firm private commitment.
Although a firm private commitment need not be legally binding at the
time preliminary funding decisions are made, it must be legally binding
before action grant funds may be expended. In documenting a firm
private commitment, the private participating party must:
(1) Specify the authority by which the commitment is made, the amount
of the commitment and the use of the funds. If the committed activity
or a portion of it is to be self-financed, the private participating
party must evidence its financial capability through a corporate or
personal financial statement or through other appropriate means. If any
portion of it is to be financed through a lending institution, the
participant must submit evidence of the institution's commitment to fund
the loan;
(2) State the amount and use of the action grant, and the
relationship of the action grant to the proposed investment, and the
number of net new permanent and construction jobs to be created by the
activity;
(3) Affirm that its investment is contingent upon receipt of the
total action grant or other public money (or a specified portion
thereof), include a statement that but for the receipt of the public
funds requested, this project would not be built, and state a
willingness on the part of the signatory to sign a legally binding
commitment upon preliminary approval of the action grant.
(j) A firm public commitment means the agreement by which a public
participating party in the action grant program agrees to perform the
activity specified in the application and commits the necessary
resources to the project. No project containing a requirement for other
public financing will be considered for funding unless it contains a
firm public commitment. Documentation of a firm public commitment will
generally take the form of a city or county council resolution or a
letter from a federal or state agency stating the amount and purpose of
the funding available, and that the funds are committed to the project.
(k) A legally binding commitment means a legally enforceable written
obligation made by a private or public participating party to complete a
specified activity or set of activities which is approved as part of the
action grant project.
(l) The leveraging ratio is defined as the total amount of firm
private commitment generated by the project divided by the amount of
action grant funds awarded to the project.
(1) In calculating the amount of firm private commitment, HUD will
only consider new investments which are contingent upon the receipt of
action grant funds and which are necessary to make a new permanent
capital improvement. For example, expenditures for land assembly, new
construction or rehabilitation will be included in the calculation of
the private commitment for a project. Working capital and inventory
will not be included.
(2) A hypothetical example illustrates how the leveraging ratio is
derived. A private industry agrees to build a widget factory. The
company agrees to put $2 million in equity into the plan ($1 million
into the construction of the plant and $1 million into working capital),
borrows $5 million in a first mortgage from a bank, and says that but
for the receipt of Action Grant funds in the amount of $1 million to be
used as a second mortgage, the company will not be able to build this
project. The applicant agrees to use $500,000 in community development
block grant funds to provide offsite improvements. The leveraging ratio
would be obtained by adding the $1 million in capital equity, the $5
million first mortgage, plus the discounted value of the action grant
second mortgage which (for the purpose of this example) equals $700,000.
The total amount of firm private commitments equals $6.7 million for a
6.7 to 1.0 leveraging ratio. The $1 million of working capital is not
counted for purposes of calculating the leveraging ratio. Inventory
would likewise be excluded from calculation in the ratio.
(m) The term city includes large cities and small cities, as defined
in this section, and the counties of Kauai, Maui and Hawaii in the State
of Hawaii and American Samoa, Guam, the Northern Mariana Islands, the
Virgin Islands and Indian tribes.
(n) A transaction is a major project element which can be undertaken
separately and can be evaluated on its own merits.
(o) An economic development component is a major project element
which cannot be undertaken separately but which generates its own cash
flow separate from other components of the project, exclusive of
publicly-owned infrastructure and parking.
(p) An Indian tribe means one that is located on a reservation or in
an Alaskan Native Village and was eligible for the General Revenue
Sharing Program before that program's September 30, 1986 repeal (31
U.S.C. 6701 et seq.). For the purposes of UDAG, an Indian reservation
includes former Indian reservations in Oklahoma, as determined by the
Secretary of the Interior.
(47 FR 7983, Feb. 23, 1982, as amended at 53 FR 33028, Aug. 29, 1988;
56 FR 56128, Oct. 31, 1991)
24 CFR 570.452 Distressed communities.
(a) General. Distressed communities are those cities and urban
counties which meet the appropriate criteria of economic distress as
specified in this section. Cities participating in the Community
Development Block grant program in cooperation with an urban county, as
provided in 570.105, are potential applicants under this subpart if
they meet the requirements of this section. Such cities may at the same
time continue as cooperating units of government in the urban county's
entitlement grant. Towns and Townships, pursuant to 570.3(f), may
apply. Towns and townships which do not qualify under the closely
settled requirement of that section may request that the Secretary waive
this requirement.
(b) Minimum standards of economic distress. (1) From time to time,
HUD will publish in Notice form the specific minimum standards of
economic distress used in determining which cities and urban counties
are potentially eligible applicants for action grant funds. These
standards will be derived by using the best and most recently available
data for the community as of the time that the Notice is published.
With the exception or category (v) below, the data describe the
community as a whole, allowing for comparisons between cities and urban
counties of the same size class. The following categories are used:
(i) Percentage of housing constructed before 1940,
(ii) Per capita income change,
(iii) Percentage of poverty,
(iv) Population growth lag/decline,
(v) The unemployment criteria used to establish the Labor Surplus
Area designation,
(vi) Job lag/decline, and
(vii) Unemployment.
(2) Any city or urban county which no longer qualifies on the basis
of distress because of a change in applicable data will have up to two
calendar quarters to submit full applications following the announcement
of that change. HUD will establish a date by which such applications
will no longer be accepted and will publish the date in the Notice.
(c) Large cities and urban counties. (1) In order to qualify as
distressed communities, large cities and urban counties must meet three
of the seven currently applicable minimum standards of distress
specified in paragraph (b)(1) of this section.
(2) If the city or urban county's percentage of poverty is less than
one-half of the HUD-established standard, or if the change in per capita
income is more than twice the HUD-established standard, then it must
meet four of the following seven minimum standards: percentage of
housing constructed before 1940; percentage of proverty; per capita
income change; population growth lag/decline; job lag/decline;
unemployment; unemployment criteria used to establish the Labor Surplus
Area designation.
(d) Small cities. In order to qualify as distressed communities,
small cities must meet the minimum standards of economic distress for
the categories appropriate to their size class as outlined below.
(1) Cities of less than 25,000 population.
(i) The city must meet standards in three of the following five
areas:
(A) Percentage of housing constructed before 1940.
(B) Per capita income change.
(C) Percentage of poverty.
(D) Population growth lag/decline.
(E) Unemployment criteria used to establish the Labor Surplus Area
designation.
(ii) If the percentage of poverty is less than one half of the
HUD-established standard, or if the change in per capita income is more
than twice the HUD-established standard, then the city must meet four of
the following five standards.
(A) Percentage of housing constructed before 1940.
(B) Per capita income change.
(C) Population growth lag/decline.
(D) Unemployment criteria used to establish the Labor Surplus Area
designation.
(E) Percentage of poverty.
(iii) If the percentage of poverty is twice the HUD-established
standard, the city must meet only one other minimum standard.
(iv) If the percentage of year-round housing units constructed before
1940 is twice the HUD-established standard, the city need meet only the
poverty standard.
(2) Cities of 25,000 population, but not greater than 50,000
population.
(i) The city must meet the minimum standards in three of the
following six areas:
(A) Percentage of housing constructed before 1940.
(B) Per capita income change.
(C) Percentage of poverty.
(D) Population growth lag/decline.
(E) Job lag/decline.
(F) Unemployment criteria used to establish the Labor Surplus Area
designation.
(ii) If the percentage of poverty is less than one-half of the
HUD-established standard, or if the change in per capita income is more
than twice the HUD-established standard, then the city must meet four of
the following six minimum standards: Percentage of housing constructed
before 1940; percentage of poverty; per capita income change;
population growth lag/decline; job lag/decline; unemployment criteria
used to establish the Labor Surplus Area designation.
(iii) If the percentage of poverty is twice the HUD-established
standard, the city must meet only one other minimum standard.
(iv) If the percentage of year-round housing units constructed before
1940 is twice the HUD-established standard, the city need meet only the
poverty standard.
(e) Indian Tribes. An Indian tribe that meets the definition in
570.451(p) shall be presumed to meet the minimum standards of distress.
However, the Secretary may deny eligibility to a tribe if available data
establishes that the tribe's distress is not comparable to that of
potentially eligible jurisdictions.
(47 FR 7983, Feb. 23, 1982, as amended at 49 FR 3076, Jan. 25, 1984;
53 FR 33028, Aug. 29, 1988)
24 CFR 570.453 Eligible applicants.
(a) Eligibility. Cities and urban counties which qualify as
distressed communities, pursuant to 570.452 or Pocket of Poverty
communities pursuant to 570.466, by meeting the appropriate distress
criteria must be determined eligible in order to submit a full
application.
(1) Pre-application request for a determination of eligibility.
Distressed communities and Pocket of Poverty communities must request a
determination of eligibility prior to submission of their first full
application. The request for a determination of eligibility must be
submitted to the appropriate HUD Area Office on Standard Form 424, as
modified by HUD, at least 60 days prior to the deadline for submission
of the full application (or at a later time as authorized by the
Secretary pursuant to 570.4). To qualify as an eligible applicant, a
city or urban county must meet the requirements of paragraphs (a), (b)
and (c) of this section.
(2) Duration of eligibility. Once an applicant has been determined
eligible, a preapplication need not be filed again; however, in order
to remain eligible, the city or urban county must continue to
demonstrate results in providing low- and moderate-income housing and
equal opportunity in housing and employment as described in this
section. Large cities and urban counties shall submit their most recent
EEO-4 form by November 30 each year to the HUD Area Office. Small
cities shall submit their most recent EEO-4 forms or recent comparable
data by November 30 each year to the HUD Area Office. The Area Office
will review this information along with other data concerning results in
providing housing and equal opportunity described in paragraphs (b) and
(c) of this section received by the Area Office.
(3) Withdrawal of eligibility. Eligibility status may be withdrawn
at any time if the distressed community or Pocket of Poverty community
fails to continue to demonstrate results in providing housing or equal
opportunity.
(b) Results in providing housing. In order to qualify, the
distressed community or Pocket of Poverty community must demonstrate
that it has achieved results in providing housing for persons of low-
and moderate-income. Among the factors HUD will consider are the number
of federally or other assisted housing units provided for low- and
moderate-income households especially since 1974, and whether the city
has accepted, or taken steps to accept, the housing units made available
by HUD.
(c) Results in providing equal opportunity. In order to qualify, the
distressed community or Pocket of Poverty community must demonstrate
that it has achieved results in providing equal opportunity in housing
and employment for low- and moderate-income persons and members of
minority groups. Among the factors which HUD will consider are:
(1) The location and occupancy characteristics of federally or other
assisted housing units provided for families, and the extent to which
the use of these programs promotes and shows progress in promoting a
greater choice of housing opportunity for low- and moderate-income
persons in areas outside of low income and minority concentration;
(2) Whether the distressed community or Pocket of Poverty community
is actively engaged in promoting housing choice in all of its
neighborhoods through participation in an area-wide affirmative
marketing effort, a New Horizons Fair Housing Assistance Project, or
other fair housing actions designed to eliminate and prevent
discrimination in the private housing market throughout the distressed
community's or Pocket of Poverty community's jurisdiction;
(3) Whether relocation as a result of federally assisted programs has
resulted in expanded housing opportunities for minorities outside areas
of minority or low-income concentration;
(4) Whether the distressed community or Pocket of Poverty community
is a participating jurisdiction in an approved Housing Opportunity Plan,
where such plan includes the community's jurisdiction;
(5) Whether the distressed community's or Pocket of Poverty
community's performance reports to HUD and/or the Equal Employment
Opportunity Commission indicate significant progress in hiring,
training, and promoting minorities and lower-income persons.
24 CFR 570.454 Other actions which must be taken prior to submission of
a full application.
(a) Citizen participation. Prior to submission of a full
application, applicant must hold public hearings to obtain the views of
citizens, particularly residents of the area in which the proposed
activities are to be carried out.
(1) Nothing in these requirements, however, shall be construed to
restrict the responsibility and authority of the applicant for the
development of the application and the execution of the urban
development action grant program.
(b) Impact analysis. Before submitting a full application, the
applicant must:
(1) Analyze the impact of the proposed activities, both on the
residents (particularly those of low and moderate income) of any
residential neighborhood in which such activities are to be carried out,
and on the neighborhood in which they are to be carried out; and
(2) Hold public hearings to obtain the views of citizens.
(c) Environmental assessment. (1) Cities and urban counties must
have a level of clearance finding in accordance with 58.15(d) of this
title. Applications will not be accepted for funding consideration,
unless a level of environmental clearance finding is made by the time of
submission of the application. HUD encourages applicants requesting
joint Federal funding to include the other involved agencies when
distributing their notice of assessment.
(2) Cities and urban counties must comply with historic preservation
identification and review procedures in accordance with
570.458(c)(14)(vii). Applicants are encouraged to consult with the State
Historic Preservation Officer early in the planning process when a
property of historical, archeological, or architectural significance may
be involved.
(d) Flood and drainage facilities. If the project involves flood and
drainage facilities, the application must include evidence that the
requirements of 570.607 have been satisfied. That is, the applicant
must have submitted a request to an appropriate public agency for funds,
received notification of rejection from that agency or notification that
the funds are not available for at least 90 days, and the applicant must
notify HUD of the results of this request.
(47 FR 7983, Feb. 23, 1982, as amended at 50 FR 12789, Apr. 1, 1985)
24 CFR 570.455 Eligible activities.
(a) Except as specified in 570.456, grant assistance will be made
available for any eligible activity specified in subpart C which
supports economic recovery.
(b) If permissible under State and local law, the applicant may
undertake activities outside of the applicant's jurisdiction where the
benefits of the project accrue to the applicant.
(c) Projects whose increased energy efficiency facilitates broader
economic development, preserves scarce fuels or promotes development and
use of renewable energy resources are encouraged.
(d) Projects in which minorities are participants as contractors,
major suppliers, equity investors, lessors, owners or private
participating parties are encouraged.
(47 FR 7983, Feb. 23, 1982, as amended at 53 FR 33028, Aug. 29, 1988)
24 CFR 570.456 Ineligible activities and limitations on eligible
activities.
(a) Large cities and urban counties may not use assistance under this
subpart for planning the project or developing the application.
However, they may use entitlement community development block grant
funds for this purpose, provided that the UDAG project meets the
eligibility test of this part. Any small city which submits a project
application which is selected for preliminary approval and for which
legally binding grant agreement and for which a release of funds
pursuant to 24 CFR part 58 has been issued may devote up to three (3)
percent of the approved amount of its action grant to defray its actual
costs in planning the project and preparing its application.
(b) Assistance under this subpart may not be used for public services
as described in 570.201(e).
(c)(1) No assistance may be provided under this subpart for
speculative projects intended to facilitate the relocation of industrial
or commercial plants or facilities from one area to another. The
provisions of this paragraph (c)(1) shall not apply to a relocation of
any such plant or facility within a metropolitan area.
(i) HUD will presume that a proposed project which includes
speculative commercial or industrial space is intended to facilitate the
relocation of a plant or facility from one area to another, if it is
demonstrated to HUD's satisfaction that:
(A) The proposed project is reasonably proximate (i.e., within 50
miles) to an area from which there has been a significant current
pattern of movement, to areas reasonably proximate, of jobs of the
category for which such space is appropriate; and
(B) There is a likelihood of continuation of the pattern, based on
measurable comparisons between the area from which the movement has been
occurring and the area of the proposed project in terms of tax rates,
energy costs, and similar relevant factors.
(ii) The restrictions established in this paragraph (c)(1) shall not
apply if the Secretary determines that the relocation does not
significantly and adversely affect the employment or economic base of
the area from which the industrial or commercial plant or facility is to
be relocated. However, the Secretary will not be required to make a
determination whether there is a significant and adverse effect. If
such a determination is undertaken, the Secretary will presume that
there is a significant and adverse effect where the significant pattern
of job movement and the likelihood of continuation of such a pattern has
been from a distressed community.
(iii) The presumptions established in accordance with this paragraph
(c)(1) are rebuttable by the applicant. However, the burden of
overcoming the presumptions will be on the applicant.
(iv) The presumptions established in this paragraph (c)(1) will not
apply if the speculative space contained in a commercial or industrial
plant or facility included in a project constitutes a lesser percentage
of the total space contained in that plant or facility than the
threshold amounts specified below:
(2) Projects with identified intended occupants. No assistance may
be provided or utilized under this subpart for any project with
identified intended occupants that is likely to facilitate:
(i) A relocation of any operation of an industrial or commercial
plant or facility or other business establishment from any UDAG eligible
jurisdiction; or
(ii) An expansion of any operation of an industrial or commercial
plant or facility or other business establishment that results in a
substantial reduction of any such operation in any UDAG eligible
jurisdiction. The provisions of this paragraph (c)(2) shall not apply
to a relocation of an operation or to an expansion of an operation
within a metropolitan area. The provisions of this paragraph (c)(2)
shall apply only to projects that do not have speculative space, or to
projects that include both identified intended occupant space and
speculative space.
(iii) Significant and adverse effect. The restrictions established
in this paragraph (c)(2) shall not apply if the Secretary determines
that the relocation or expansion does not significantly and adversely
affect the employment or economic base of the UDAG eligible jurisdiction
from which the relocation or expansion occurs. However, the Secretary
will not be required to make a determination whether there is a
significant and adverse effect. If such a determination is undertaken,
among the factors which the Secretary will consider are:
(A) Whether it is reasonable to anticipate that there will be a
significant net loss of jobs in the plant or facility being abandoned;
and
(B) Whether an equivalent productive use will be made of the plant or
facility being abandoned by the relocating or expanding operation, thus
creating no deterioration of economic base.
(3) Within 90 days following notice of intent to withhold, deny or
cancel assistance under paragraph (c) (1) or (2) of this section, the
applicant may appeal in writing to the Secretary the withholding, denial
or cancellation of assistance. The applicant will be notified and given
an opportunity within a prescribed time for an informal consultation
regarding the action.
(4) Assistance for individuals adversely affected by prohibited
relocations. (i) Any amount withdrawn by, recaptured by, or paid to the
Secretary because of a violation (or a settlement of an alleged
violation) of this section (or any regulation issued or contractual
provision entered into to carry out this section) by a project with
identified intended occupants will be made available by the Secretary as
a grant to the UDAG eligible jurisdiction from which the operation of an
industrial or commercial plant or facility or other business
establishment was relocated, or in which the operation was reduced.
(ii)(A) Any amount made available under this paragraph shall be used
by the grantee to assist individuals who were employed by the operation
involved before the relocation or reduction and whose employment or
terms of employment were adversely affected by the relocation or
reduction. The assistance shall include job training, job retraining,
and job placement.
(B) If any amount made available to a grantee under this paragraph
(c)(4) is more than is required to provide the assistance described in
paragraph (c)(4)(ii)(A) of this section, the grantee shall use the
excess amount to carry out community development activities eligible
under section 105(a) of the Housing and Community Development Act of
1974.
(iii)(A) The provisions of this paragraph (c)(4) shall be applicable
to any amount withdrawn by, recaptured by, or paid to the Secretary
under this section, including any amount withdrawn, recaptured, or paid
before the effective date of this paragraph.
(B) Grants may be made under this paragraph (c)(4) only to the extent
of amounts provided in appropriation Acts.
(5) For purposes of this section, the following definitions apply:
(i) ''Operation'' means any plant, equipment, facility, substantial
number of positions, substantial employment opportunities, production
capacity, or product line.
(ii) ''Metropolitan area'' means a metropolitan area as defined in
570.3 and which consists of either a freestanding metropolitan area or a
primary metropolitan statistical area where both primary and
consolidated areas exist.
(iii) ''Likely'' means probably or reasonably to be expected, as
determined by firm evidence such as resolutions of a corporation to
close a plant or facility, notifications of closure to collective
bargaining units, correspondence and notifications of corporate
officials relative to a closure, and supportive evidence, such as
newspaper articles and notices to employees regarding closure of a plant
or facility. Consultant studies and marketing studies may be submitted
as supportive evidence, but by themselves are not firm evidence.
(iv) ''UDAG eligible jurisdiction'' means a distressed community, a
Pocket of Poverty, a Pocket of Poverty community, or an identifiable
community described in section 119(p) of the Housing and Community
Development Act of 1974.
(6) Notwithstanding any other provision of this subpart, nothing in
this subpart may be construed to permit an inference or conclusion that
the policy of the urban development action grant program is to
facilitate the relocation of businesses from one area to another.
(47 FR 7983, Feb. 23, 1982, as amended at 53 FR 33028, Aug. 29, 1988;
54 FR 21169, May 16, 1989; 56 FR 56128, Oct. 31, 1991)
24 CFR 570.457 Displacement, relocation, acquisition, and replacement
of housing.
The displacement, relocation, acquisition, and replacement of housing
requirements of 570.606 apply to applicants under this subpart G.
(55 FR 29309, July 18, 1990)
24 CFR 570.458 Full applications.
(a) Application scope. Applicants must submit a separate application
for each proposed project as defined in 570.451(g).
(b) Scope of the proposed project. The proposed project must be able
to be carried out in a timely fashion, which HUD generally expects not
to exceed four years from the date of the announcement of preliminary
approval. The applicant shall apply for action grant funds in an amount
which, together with other public and private resources, will be
adequate to complete the project without additional action grant funds.
While a recipient may remain eligible for action grant funding for other
projects, no additional funding will be available in the future to
complete a project already approved. Should additional funding be
required to complete a previously approved project, the applicant, or
private developer must provide such funding from another source.
(c) Submission requirements. Applications must be submitted on HUD
forms and must consist of the following:
(1) Standard Form 424 and the urban development action grant
application.
(2) A description of the project to be undertaken, how the property
involved is controlled, and the nature of the project. The applicant
must substantiate the market and economic feasibility of the proposed
project, and must analyze the economic benefits which the activities are
expected to produce, and must show how the proposed activities will take
advantage of unique opportunities to attract private investment. The
applicant must identify the public and private participating parties in
the proposed project and must clarify the relationship of each to the
request for action grant funds. Information provided shall include
proposed cost and methods of financing.
(3) A clear description of the use of the action grant funds and a
justification for the amount, which must be the least amount necessary
to make the project feasible.
(4) The status of environmental review of the proposed project, the
steps taken to notify other involved federal agencies if joint funding
is requested, and a proposed timetable for the completion of any
required environmental actions as described in 24 CFR part 58.
(5) Documentation of private and public commitments which are
necessary for completing the project as outlined in 570.451 may be in
the form of a firm private, firm public or legally binding commitment
between the applicant and the public and private entities. No
application will be considered feasible and effective unless there is
evidence of at least a firm private commitment and if necessary, a firm
public commitment.
(6) A statement analyzing the impact of the proposed urban
development action grant program on the residents of any affected
residential neighborhood, particularly low- and moderate-income persons
and members of minority groups.
(7) A summary of all proposed expenditures to be undertaken to
complete the project and a breakdown of the individual public and
private expenditures.
(8) A detailed schedule for accomplishing each part of the proposed
project.
(9) Maps, aerial photos, site plans or other graphic descriptions of
the applicant's jurisdiction, the location of the project, access to the
project, surrounding land uses, and related property information. Site
plans must show:
(i) Present conditions, land uses, and ownership, (ii) proposed
private and public development including clear identification of where
the action grant funds are proposed to be spent.
(10) A summary of the net new tax revenues to be generated by the
project.
(11) Data on anticipated involuntary displacement and relocation of
residents by household type, income level, and minority status and/or
businesses displaced and jobs lost due to displacement. The following
must be included: A description of the efforts made to minimize
involuntary displacement, including an analysis of the feasibility of
undertaking any rehabilitation of occupied properties in stages in order
to minimize displacement; a description of the efforts which will be
made to provide opportunities to low- and moderate-income and minority
persons to relocate outside areas of low income and minority
concentration; and of the opportunities to be provided to displaced
persons and businesses to relocate within the project area.
(12) Data specifying the number and types of jobs to be created by
the private participating parties, and the proportion of permanent jobs
accessible to lower income persons and minorities. The applicant also
shall include an employment plan to assure that the jobs created by the
proposed project will be available to the long-term unemployed and
underemployed. The use of job training programs and consultations with
the CETA provider should be detailed.
(13) The record of the applicant in carrying out similar projects.
If the applicant has no related experience, it should provide
information concerning its abilities to successfully complete the
project.
(14) Certifications. The applicant shall submit certifications, in
such form as HUD may prescribe, providing assurances that:
(i) Prior to submission of its application, it has met the citizen
participation requirements of 570.454(a) and has made the impact
analysis required by 570.454(b).
(ii) The applicant's chief executive officer and the private
participating party must certify that in his or her opinion, the private
development would not occur unless the public funding on which the
development is based becomes available.
(iii) The applicant's chief executive officer must certify that the
action grant funds will not substitute for local public funds which are
available and which are committed by line item specified in the
applicant's local budget to the project described in the action grant
application.
(iv) It possesses legal authority to apply for the grant and to
execute the proposed program.
(v) Its governing body has duly adopted or passed as an official act
a resolution, motion or similar action authorizing the filing of the
application, including all understandings and assurances contained
therein, and directing and authorizing the person identified as the
official representative of the applicant to act in connection with the
application and to provide such additional information as may be
required.
(vi) Its chief executive officer or other officer of the applicant
approved by HUD:
(A) Consents to assume the status of a responsible Federal official
for environmental review, decision making and action pursuant to the
National Environmental Policy Act of 1969, and the other authorities
listed in 24 CFR 58.1(a)(3) insofar as the provisions of such Act or
other authorities apply to this part;
(B) Is authorized and consents on behalf of the applicant and
himself/herself to accept the jurisdiction of the Federal courts for the
purpose of enforcement of his/her responsibilities as such official.
(vii) It will comply with the requirements for historic preservation
identification and review set forth in Section 106 of the National
Historic Preservation Act of 1966 (16 U.S.C. 470), Executive Order
11593, and the Archeological and Historic Preservation Act of 1974 (16
U.S.C. 469a, et seq.), regulations of the Advisory Council on Historic
Preservation at 36 CFR 801, and any other regulations promulgated
pursuant to section 121 of the Housing and Community Development Act of
1974, as amended.
(viii) It has identified all properties, if any, which are included
on the National Register of Historic Places and which as determined by
the applicant, will be affected by the project; it has identified all
other properties, if any, which will be affected by the project and
which, as determined by the applicant, may meet the criteria established
by the Secretary of Interior for inclusion in the Register, together
with the documentation relating to the inclusion of such properties on
the Register; and it has determined the affect as determined by the
applicant, of the project on the identified properties.
(ix) It will comply with:
(A) Title VI of the Civil Rights Act of 1964 (Pub. L. 88-352) and
implementing regulations issued at 24 CFR part 1;
(B) Title VIII of the Civil Rights Act of 1968 (Pub. L. 90-284) and
implementing regulations;
(C) Section 109 of the Housing and Community Development Act of 1974,
as amended; and the regulations issued pursuant thereto (24 CFR
570.601);
(D) Section 3 of the Housing and Urban Development Act of 1968, as
amended, and implementing regulations at 24 CFR part 135;
(E) Executive Order 11246, as amended by Executive Orders 11375 and
12086 and implementing regulations issued at 41 CFR chapter 60;
(F) Executive Order 11063, and implementing regulations at 24 CFR
part 107;
(G) Section 504 of the Rehabilitation Act of 1973, as amended, (Pub.
L. 93-112) and implementing regulations when published for effect;
(H) The Age Discrimination Act of 1975, as amended, (Pub. L. 94-135)
and implementing regulations (when published for effect);
(I) The acquisition and relocation requirements of the Uniform
Relocation Assistance and Real Property Acquisition Policies Act of
1970, as amended, as required under 570.606(b) and Federal implementing
regulations; the requirements in 570.606(c) governing the residential
antidisplacement and relocation assistance plan section 104(d) of the
Act (including a certification that the grantee is following such a
plan); and the relocation requirements of 570.606(d) governing
optional relocation assistance under section 105(a)(11) of the Act; and
(J) The labor standards requirements as set forth in 570.605 and HUD
regulations issued to implement such requirements;
(K) The flood insurance purchase requirements of Section 102(a) of
the Flood Disaster Protection Act of 1973, (Pub. L. 93-234);
(L) OMB Circular A-87 and the provisions of 24 CFR part 85, as made
applicable in 570.502(a);
(M) All requirements imposed by HUD concerning special requirements
of law, program requirements and other administrative requirements;
(N) The lead-based paint regulations as set forth in 24 CFR part 35
as modified by 570.608 of subpart K and certify that it will require
the participating party obligated to carry out the rehabilitation
activities to comply with the requirements in 570.608 of subpart K.
(x) It will establish safeguards to prohibit employees from using
positions for a purpose that is or gives the appearance of being
motivated by a desire for private gain for themselves or others,
particularly those with whom they have family, business, or other ties.
(xi) It will comply with the provisions of the Hatch Act which limits
the political activity of employees.
(xii) It will give HUD and the Comptroller General through any
authorized representatives, access to and the right to examine all
records, books, papers, or documents related to the grant.
(xiii) It will insure that the facilities under its ownership, lease,
or supervision which shall be utilized in the accomplishment of the
program are not listed on the Environmental Protection Agency's (EPA)
list of Violating Facilities and that it will notify HUD of the receipt
of any communication from the Director of EPA Office of Federal
Activities indicating that a facility to be used in the project is under
consideration for listing by the EPA.
(xiv) It certifies that it has not knowingly and willfully made or
used a document or writing containing any false, fictitious, or
fraudulent statement or entry. 18 U.S.C. 1001 provides that whoever
does so within the jurisdiction of any department or agency of the
United States shall be fined not more than $10,000 or imprisoned for not
more than five years, or both.
(xv) It will not, in carrying out the project, discriminate against
any employee because of race, color, religion, sex, handicap, or
national origin. It will take affirmative action to insure that
applicants for employment are employed, and that employees are treated
during employment, without regard to their race, color, religion, sex,
handicap, or national origin. Such action shall include, but not be
limited to, the following: Employment, upgrading, demotion, or
transfer; recruitment or recruitment advertising; layoff or
termination; rates of pay or other forms of compensation; and
selection for training, including apprenticeship. The applicant shall
post in conspicuous places, available to employees and applicants for
employment, notices to be provided by HUD setting forth the provisions
of this non-discrimination clause. The applicant will in all
solicitations or advertisements for employees placed by or on behalf of
the applicant state that all qualified applicants will receive
consideration for employment without regard to race, color, religion,
sex, handicap or national origin. The applicant will incorporate the
foregoing requirements of this paragraph in all of its contracts for
project work, except contracts for standard commercial supplies or raw
materials or contracts covered under paragraph (c)(16)(xiv)(E) of this
section, and will require all of its contractors for such work to
incorporate such requirements in all subcontracts for work done with
funds provided under 24 CFR part 570.
(xvi) For an appropriate project, the project will relieve the most
pressing employment need of the applicant by:
(A) Reemploying workers in a skill that has recently suffered a sharp
increase in unemployment locally;
(B) Retraining recently unemployed residents in new skills; or
(C) Providing training to increase the local labor pool of skilled
labor.
(xvii) For an appropriate project, the area has a severe shortage of
housing for low and moderate income persons. (The applicant should be
aware that this certification could affect its compliance with the new
provisions under section 104(d) of the Housing and Community Development
Act of 1974).
(xviii) The applicant and project developer must certify that, to the
best of their knowledge, the requested UDAG funds will not facilitate
any business relocation as described in 570.456(c). If the UDAG funds
will facilitate any business relocation, a detailed explanation shall be
provided.
(47 FR 7983, Feb. 23, 1982, as amended at 52 FR 3615, Feb. 5, 1987;
52 FR 4884, Feb. 17, 1987; 53 FR 8058, Mar. 11, 1988; 53 FR 31240,
Aug. 17, 1988; 53 FR 33029, Aug. 29, 1988; 54 FR 21171, May 16, 1989;
55 FR 29309, July 18, 1990)
24 CFR 570.459 Criteria for selection.
(a) General. Each funding round, HUD will review all new
applications received and all applications pending consideration and
will determine which meet the basic program requirements. The specific
nature and purpose of the proposed project will determine the extent to
which each of the selection criteria in paragraphs (e) and (f) of this
section will apply. In utilizing the discretion of the Secretary when
providing assistance and apply selection criteria under this section,
the Secretary will not discriminate against applications on the basis
of: (1) The type of activity involved, i.e., whether the applicant is a
city of an urban county.
(b) Requirements which must be met to be considered in project
selection:
(1) A firm private commitment. No project will be funded under this
subpart unless there is a firm private commitment to finance and carry
out the proposed project. The private commitment must have clear,
direct relationship to the activities for which funding is requested.
(2) Leveraging Ratio. Each project, each transaction within a
project, and each economic development component within a project must
have a leveraging ratio of at least $2.50 of private funds to every
$1.00 of action grants funds.
(3) A firm commitment of public resources. If a project requires a
commitment of other public resources, then there must be a firm public
commitment.
(4) Funds required -- The Secretary must determine that the project
requires action grant funds by finding that:
(i) The action grant funds will not subsitute for local funds (see
570.458(c)(14)(iii));
(ii) But for the receipt of the action grant funds, the project would
not be undertaken; and
(iii) The grant amount provided is the least amount necessary to make
the project feasible. For Fiscal Years 1988 and 1989 the maximum grant
amount for any project is $10,000,000.
(5) Impact on physical and economic conditions. The proposal must
demonstrate to HUD the extent to which the project will have a
substantial impact on the physical and economic development of the city
or urban county;
(6) Timeliness. The proposal must demonstrate to HUD that the
proposed activities are likely to be accomplished in a timely fashion
with the grant amount available. (HUD expects projects to be completed
within four years from the date of the announcement of preliminary
funding approval); and
(7) Demonstrated Performance. The applicant has demonstrated
performance in carrying out housing and community development programs.
Performance shall be evaluated using such considerations as past
compliance with HUD regulations and statutory requirements and progress
in carrying out programs as planned.
(c) Selection of projects for preliminary approval: Large cities and
urban counties. Projects shall be selected on the basis of the
following point system:
(1) Impaction (maximum value of 35 points). The comparative degree
of economic distress among applicants, as measured by combining the
points from three factors:
(i) The percentage of the total housing stock that was built prior to
1940 -- up to 17 points;
(ii) The extent of poverty -- up to 11 points; and
(iii) The population growth rate -- up to 7 points;
(2) Distress (maximum value of 35 points). The comparative degree of
economic deterioration in cities and urban counties, as measured by
combining the points from three factors:
(i) Per capita income change -- up to 15 points;
(ii) Unemployment rate -- up to 15 points; and
(iii) Job lag/decline -- up to 5 points;
(3) Other criteria (maximum value of 33 points) and bonus points
(maximum value of 2 points). The factors contained in paragraphs (e)
through (f) of this section.
(d) Selection of projects for preliminary approval: Small cities.
Projects shall be selected on the following basis:
(1) Impaction (maximum value of 35 points). The comparative degree
of economic distress among applicants, as measured by combining the
points from three factors:
(i) The percentage of the total housing stock that was built prior to
1940 -- up to 17 points;
(ii) The extent of poverty -- up to 11 points; and
(iii) The population growth rate -- up to 7 points;
(2) Distress (maximum value of 35 points). The comparative degree of
economic deterioration, as measured by combining the points from the
following factors:
(i) Per capita income change -- up to 18 points; and
(ii) Labor Surplus Area (LSA) unemployment rate -- up to 17 points;
(3) Other criteria (maximum value of 33 points) and bonus points
(maximum value of 2 points). The factors contained in paragraphs (e)
through (f) of this section.
(e) Other criteria (maximum value of 33 points). In evaluating a
proposed project, HUD will consider the following factors. The maximum
point value for each factor is identified below:
(1) Leveraging ratio (8 points). The extent to which the grant will
stimulate economic recovery by leveraging private investment;
(2) New permanent jobs (3 points). The number of new permanent jobs
to be created;
(3) UDAG funds per new permanent job (6 points). The amount of
action grant funds requested in relationship to the number of new
permanent jobs;
(4) Percent new low/moderate income jobs (2 points). The percentage
of new permanent jobs accessible to low/moderate income persons,
including low/moderate income persons who are unemployed;
(5) Percent of new minority jobs (2 points). The percentage of new
permanent jobs accessible to minorities, including minorities who are
unemployed;
(6) Retained jobs (2 points). The number of jobs that will be lost
without the provision of a UDAG award. Retained jobs will be measured
by the number of jobs that were in existence before the start of the
project and that are dependent upon the project for their continued
existence as substantiated by firm evidence that if the project does not
proceed, the jobs will be lost;
(7) Pressing employment need (1 point). Based upon the applicant's
certification, HUD will assess whether the project will relieve the most
pressing employment needs of the applicant by:
(i) Reemploying workers in a skill that has recently suffered a sharp
increase in unemployment locally;
(ii) Retraining recently unemployed residents in new skills; or
(iii) Providing training to increase the local labor pool of skilled
labor;
(8) Pressing residential need (2 points). HUD will award 1 point
after assessing whether the project will relieve a pressing housing need
for low and moderate income persons in the jurisdiction by using the
factors described in paragraphs (e)(8) (i) and (ii) of this section:
(i) The applicant certifies that the area has a severe shortage of
housing for low and moderate income persons (this certification may
affect the applicant's compliance with the new provisions under section
104(d) of the Housing and Community Development Act of 1974); and
(ii) The application proposes that:
(A) Not less than 51% of all funds available for the project will be
used for dwelling units and related facilities; and
(B) Not less than 30% of all funds used for dwelling units and
related facilities will be used for dwelling units to be occupied by
persons of low and moderate income, or not less than 20% of all dwelling
units made available to occupancy using such funds will be occupied by
persons of low and moderate income, whichever results in the occupancy
of more dwelling units by persons of low and moderate income;
An additional 1 point will be awarded under this criterion to
applications that demonstrate, in addition to the proposals in
paragraphs (e)(8)(ii) (A) and (B) of this section, that the project will
provide direct assistance for sheltering the homeless.
(9) Tax benefits per UDAG dollar (2 points). The impact of the
proposed project on the fiscal base of the community and the
relationship to the amount of grant funds;
(10) State/local funds per UDAG dollar (1 point). The extent of
assistance to be made available by State/local funds in relation to the
amount of UDAG funds;
(11) Federal or State-designated enterprise zone (2 points). The
project demonstrates special State/local economic incentives by being
located within an enterprise zone designated in accordance with Title
VII of the Housing and Community Development Act of 1987 or within a
State-designated enterprise zone.
(12) Tax incentives for development or rehabilitation of housing for
low- and moderate income persons (1 point). The project uses
State/local tax incentives to promote the development or rehabilitation
of housing for low and moderate-income persons by the private sector.
(13) State/local funds for homeownership (1 point). The project
demonstrates the commitment of State/local funds to assist homeownership
for first-time home buyers.
(f) Bonus Points. An applicant will be provided with bonus points as
provided for below:
(1) An applicant that did not receive preliminary grant approval
during the 12-month period preceding the date on which applications are
required to be submitted for the grant competition involved shall be
awarded 1 bonus point.
(2) An applicant that did not receive a preliminary grant approval
during the 24-month period preceding the date on which applications are
required to be submitted for the grant competition involved shall be
awarded two bonus points.
(3) If an applicant has submitted and has pending more than one
application, bonus points shall only be provided to the pending
application which receives the highest number of points awarded under
paragraph (e) of this section.
The following table summarizes the point system to be used by HUD in
accordance with 570.460(c)(1) in selecting projects for preliminary
funding approval:
(53 FR 33029, Aug. 29, 1988, as amended at 54 FR 21390, May 17, 1989;
54 FR 27271, June 28, 1989)
24 CFR 570.460 HUD review and action on applications.
(a) Submission and review schedule. The following chart indicates
dates for submission of pre-application requests for determination of
eligibility, the full application, HUD review and consultation with the
applicant, the deadline for receipt of firm financial commitments, and
the date by which the decision for preliminary approval is made. This
schedule will remain in effect unless, within 30 days of the start of a
fiscal year, the Secretary announces by Federal Register Notice a
revised schedule applicable to the upcoming fiscal year. Public
announcements of preliminary funding approvals will be made shortly
after the decision date.
(1) HUD will accept applications from large cities and urban counties
postmarked no later than the last day of the month during November,
March, and July.
(2) HUD will accept applications from small cities postmarked no
later than the last day of the month during January, May, and September.
(3) However, HUD encourages all cities and urban counties to submit
their applications no later than the tenth day of the month in order to
allow sufficient time for the community to enact suggestions made by HUD
in preliminary reviews.
(4) Applications postmarked after the last day of the month in which
they are to be submitted will not be considered until the following
round.
(5) The original and one copy of the application must be submitted to
the appropriate HUD Area Office or Office of Indian Programs and one
copy submitted to HUD's Office of Urban Development Action Grants.
(b) HUD Area Office review. Area Offices or the Office of Indian
Programs shall forward a copy of each application meeting the criteria
of 570.458 together with a position paper setting forth the Area Office
or the Office of Indian Programs comments and the Area Manager's or
Director, Office of Indian Programs recommendation to HUD Central
Office. HUD Central Office shall evaluate applications on a comparative
basis in accordance with the criteria for selection specified in
570.459.
(c) Central office action on applications. (1) Preliminary approval
decisions will be made by HUD Central Office utilizing the point system
described in 570.459. Central Office funding decisions for distressed
cities and urban counties will be based upon a funding formula for
grants which, to the extent practicable, will make 65% of funds
available for projects based upon points received for all the criteria
and 35% of funds available for projects based only on other criteria and
bonus points, as described in 570.459 (e) and (f). Applications for
Pockets of Poverty are selected separately from distressed cities and
urban counties. Applicable criteria for Pockets of Poverty are found in
570.466.
(2) The funds for the competition are to be an amount approximately
equal to the amount of appropriated funds available, divided by the
number of scheduled competitions, plus available carry-overs and
recaptures.
(3) For Fiscal Years 1988 and 1989, the maximum grant amount for any
project is $10,000,000.
(4) Preliminary approval decisions will be made by HUD Central Office
within two months after the deadline for submission of applications as
shown in paragraph (a) of this section.
(5) Preliminary approval constitutes the first step in a process
which may result in a signed grant agreement between the recipient and
HUD and legally binding commitments between the recipient and the
private sector. The terms of the preliminary approval are not finalized
until the recipient and HUD have executed a grant agreement setting
forth the terms and conditions of the approved project and the
responsibilities of all participating parties. Preliminary approval
does not become final until legally binding commitments between the
recipient and the private and public participating parties have been
submitted and approved by HUD. Release of grant funds is contingent
upon the recipient's meeting each and every condition set forth in the
grant agreement.
(6) Any application not receiving preliminary funding approval in the
first round in which it is accepted for consideration may be
reconsidered for funding in the subsequent round, if HUD determines
there is a likelihood that the project will be funded in the next
funding round.
(7) Any application not receiving preliminary funding approval after
the second round will not receive further consideration, unless HUD and
the applicant are actively negotiating the terms of the project. HUD
shall use its discretion in making a determination whether to consider
the application in a later funding round.
(8) Shortly after the decision date for preliminary approval, the
Secretary will notify the applicant in writing of the action taken on
its application and if not approved, the conditions under which the
application may be reconsidered.
(47 FR 7983, Feb. 23, 1982, as amended at 49 FR 31070, Aug. 3, 1984;
52 FR 6972, Mar. 6, 1987; 53 FR 33030, Aug. 29, 1988)
24 CFR 570.461 Post preliminary approval requirements.
(a) Execution of a grant agreement. HUD and the recipient must sign
a legally binding grant agreement (contract) which finalizes the terms
and conditions of the action grant preliminary approval.
(b) Submission of legally binding private commitments. Recipients
must submit for approval to HUD Central Office evidence of legally
binding commitments from participating parties identified in the grant
agreement. Copies must also be submitted to the Area Office or Office
of Indian Programs. Recipients must also submit an opinion of counsel
that the commitments are legally binding under State and local law and
conform to the grant agreement executed by HUD and the recipient. The
drawdown of grant funds is conditioned upon the written acceptance by
HUD of the legally binding commitments as specified in the grant
agreement.
(c) Release of funds pursuant to HUD environmental review procedures.
Recipients must comply with the provisions of 570.603 concerning the
release of funds for projects requiring environmental review. Except
for administrative costs, environmental studies and certain relocation
costs, no costs which are to be reimbursed or paid with grant funds may
be incurred until the environmental requirements have been met.
However, the applicant should note that such costs will not be
reimbursed if the legally binding commitments are not approved.
(d) Performance according to schedule. Action grant funding shall be
conditioned upon the performance of the recipient in meeting the
schedule set forth in its grant agreement. Failure to meet such
schedule may result in the termination of the grant agreement or other
remedial action.
(e) Program Income. Notwithstanding any other provisions of this
part and unless otherwise provided in the grant agreement, program
income received by the Recipient under this Subpart before the
completion of construction of all action grant funded activities shall
be used to reimburse costs incurred for the Recipient activities. Such
income shall be used instead of any draw under the letter of credit to
the extent adequate to reimburse costs so incurred except as otherwise
provided in the grant agreement. Program income received before project
closeout shall be spent for activities eligible under Title I of the
Housing and Community Development Act of 1974 and shall be spent in
accordance with 24 CFR part 570. Upon project closeout all program
income shall be made available by the Recipient for economic development
activities that are eligible for funding under the Urban Development
Action Grant program or section 105 of the Housing and Community
Development Act of 1974. These funds are to be considered miscellaneous
revenues and shall not be governed by 24 CFR part 570. The Recipient
shall provide the Secretary with a statement of the use of repaid grant
funds during the most recent full fiscal year and projected receipt and
use of repaid grant funds for the following fiscal year of this
applicant.
(f) Reporting requirements. Commencing upon the date the applicant's
preliminary funding approval is announced by HUD, applicants shall
submit quarterly progress reports as specified by the Secretary of HUD.
Failure to file such reports may be a basis for termination of
previously approved action grants and shall be considered in the
selection of future projects submitted by the applicant under
demonstrated performance under 570.459(e). Copies of the reports shall
be submitted to the HUD area office and simultaneously to the Office of
Action Grants in HUD Central Office no more than 10 days following the
end of each calendar quarter, using the HUD quarterly progress report
form.
Reports will be required following the completion of construction of
a project, and until project completion is reached. They shall consist
of information to be specified at a later date concerning the project's
construction costs, its use of program income, tax revenues generated,
etc. They shall also include data by job category and pay level, the
number of jobs filled by unemployed and low income persons and by
minorities.
(g) Lead-based paint requirements. The recipient may receive
preliminary approval prior to the accomplishment of notification,
inspection, testing, and abatement as described in 570.608 of subpart
K, but no funds will be released until such actions are complete and
evidence of compliance is submitted to HUD.
(47 FR 7983, Feb. 23, 1982, as amended at 52 FR 4884, Feb. 17, 1987;
53 FR 33031, Aug. 29, 1988)
24 CFR 570.462 Incurring costs for project activities after preliminary
approval.
(a) The use of grant funds is conditioned upon the Recipient
incurring costs to be paid in accordance with the grant agreement or as
otherwise approved by the Secretary in writing. The incurring of costs
to be paid out of grant funds shall be governed by the following:
(1) Except for the cost of application preparation for small cities
as specified in 570.456(a), no costs incurred prior to the preliminary
approval date may be paid out of grant funds.
(2) After the preliminary approval date, eligible administrative
costs, including but not limited to costs of environmental studies, may
be incurred before or after the effective date of the grant agreement
(the date it is executed by the Recipient), and the satisfaction of
environmental conditions.
(3) Except as permitted by 24 CFR part 58, no other costs to be paid
out of grant funds may be incurred by the recipient or any participating
party until after the effective date of the grant agreement, all
environmental conditions of 24 CFR part 58 have been fully satisfied and
the Secretary has issued the environmental releases required by 24 CFR
part 58.
(4) After the recipient has satisfied all of the environmental
conditions and the Secretary has issued the required environmental
releases, then at any time after the preliminary approval date for the
project, the recipient and the participating parties may incur eligible
costs to be paid out of grant funds.
(b) The authorization to incur costs in paragraph (a) of this section
is not an authorization to reimburse those costs and does not mean or
imply that such costs will be reimbursed out of grant funds. The
recipient and participating parties may voluntarily, at their own risk,
and upon their own credit and expense, incur costs as authorized in
paragraph (a) of this section, but their authority to reimburse or to be
reimbursed out of grant funds shall be governed by the provisions of the
grant agreement applicable to the payment of costs and the release of
funds by the Secretary.
(c) Neither the Recipient nor any Participating Party shall incur any
costs in connection with any activity to be paid for, in whole or in
part, with grant funds, even though such costs will not be reimbursed
out of grant funds, unless such costs could be incurred pursuant to
paragraph (a) of this section if such costs were to be paid out of grant
funds.
(d) Prior to the issuance by the Secretary of the environmental
releases required by 24 CFR part 58, the Recipient may not use any
funds, including local funds, to take any action with respect to the
Project where such action might have an adverse environmental effect,
would limit choices among competing alternatives, or might alter the
environmental premises on which the pending clearance is based in such a
fashion that the validity of the conclusions to be reached would be
affected.
(e) Any time after the Preliminary Approval Date, a Participating
Party may incur costs for any activity which is not to be paid for, in
whole or in part, with grant funds.
24 CFR 570.463 Project amendments and revisions.
(a) Pre-approval revisions to the application. Applicants must
submit to the HUD Area Office and to Central Office all revisions to the
application. A revision is considered significant if it alters the
scope, location, or scale of the project or changes the beneficiaries'
population.
The applicant must hold at least one public hearing prior to making a
significant revision to the application according to the procedures of
570.454(a).
(b) Post preliminary approval amendments. Applicants receiving
preliminary approval must submit to the HUD Central Office, a request
for approval of any significant amendment. A copy of the request must
also be submitted to the Area Office. A significant amendment involves
new activities or alterations thereof which will change the scope,
location, scale, or beneficiaries of such activities or which, as a
result of a number of smaller changes, add up to an amount that exceeds
ten percent of the grant. HUD approval of amendments may be granted to
those requests which meet all of the following criteria:
(1) New or significantly altered activities must meet the criteria
for selection applicable at the time of receipt of the program
amendment.
(2) The recipient must have complied with all requirements of this
subpart.
(3) The recipient may make amendments other than those requiring
prior HUD approval as defined in paragraph (b) of this section but each
recipient must notify both the Area and Central Offices of such changes.
24 CFR 570.464 Project closeout.
HUD will advise the recipient to initiate closeout procedures when
HUD determines, in consultation with the recipient, that there are not
impediments to closeout. Closeout shall be carried out in accordance
with 570.509 and applicable HUD guidelines.
(53 FR 8058, Mar. 11, 1988)
24 CFR 570.465 Applicability of rules and regulations.
The provisions of subparts A, B, C, J, K, and O of this part 570
shall apply to this subpart except to the extent that they are modified
or augmented by this subpart.
24 CFR 570.466 Specific provisions for cities and urban counties
containing Pockets of Poverty.
Action Grants may also provide funding for economic development and
neighborhood revitalization projects targeted to severely distressed
areas called Pockets of Poverty in communities which do not meet Action
Grant Program distress criteria. Cities and urban counties eligible
under this provision will not meet the minimum standards of economic
distress defined in 570.452, but must meet the eligibility criteria of
paragraph (a) of this section in this context, Action Grants for Pockets
of Poverty projects are intended to provide increased public and private
assistance principally and directly to aid the geographically defined
Pocket of Poverty and its low- and moderate-income inhabitants through
the provision of jobs, and a revitalized economic environment. Up to,
but no more than, 20 percent of all Action Grant assistance made
available after October 1, 1979 may be used for Pockets of Poverty. The
following paragraphs set forth rules applying only to communities
containing pockets of poverty. All other provisions of subpart G apply
to these communities except as modified herein.
(a) Determining eligibility for communities containing Pockets of
Poverty -- (1) Preapplication request for a determination of
eligibility. Each applicant for Pockets of Poverty assistance must
submit a request for a determination of eligibility to the appropriate
HUD area office as specified in 570.453 and 570.454 and as modified
here. In addition to meeting the criteria of this section, each
applicant must have demonstrated reasonable results in providing housing
for persons of low- and moderate-income explained in 570.453(b), must
have achieved reasonable results in providing equal opportunity in
housing and employment for low- and moderate-income persons and members
of minority groups as in 570.453(c), and each applicant must provide
comparable services to and for Pockets of Poverty residents (see
paragraph (a)(6) of this section).
(2) Cities of above 50,000 Population or more and urban counties. A
city with a population over 50,000 or urban county which does not meet
the minimum standards of physical and economic distress based on data
for the community as a whole may qualify as an applicant for Action
Grants if it contains a ''pocket'' consisting of a specifically defined
geographic area meeting all of the following criteria:
(i) Area. The Pocket of Poverty must be an area composed of
contiguous census tracts, enumeration districts or block groups. The
defined geographic area must contain at least 10,000 persons or 10
percent of the jurisdiction's population. In other words, a city with a
population of 100,000 or more must have a Pocket of at least 10,000. A
city of less than 100,000 population must have a Pocket of at least 10
percent of its population. Enumeration districts and block groups with
median income levels greater than 120 percent of the median income of
the jurisdiction must be excluded in defining the Pocket Poverty.
(ii) Income. At least 70 percent of the families and unrelated
individuals residing in the Pocket of Poverty must have incomes below 80
percent of the jurisdiction's median income.
(iii) Poverty. At least 30 percent of the residents residing in the
Pocket of Poverty must have incomes below the national poverty level
pursuant to criteria provided by the Office of Management and Budget.
(3) Small cities below 50,000 population. A small city with a
population below 50,000 which does not meet the minimum standards of
physical and economic distress based on data for the community as a
whole may qualify as an applicant for Action Grants if it contains a
specifically defined geographic area meeting all of the following
criteria:
(i) Area. The Pocket of Poverty must be an area defined by
contiguous census tracts, enumeration districts, block groups, or other
areas defined by the U.S. Bureau of the Census or for which data
certified by the U.S. Bureau of the Census is available. The defined
geographic area must contain at least 2,500 persons or 10 percent of the
jurisdiction's population, whichever is more. Enumeration districts and
block groups with median income levels greater than 120 percent of the
median income of the jurisdiction must be excluded in defining the
Pocket of Poverty.
(ii) Income and Poverty. Small cities must meet the criteria
specified in paragraphs (a)(2)(ii) and (iii) of this section.
(4) Use of Census data in documenting a Pocket of Poverty.
Applicants should use the 1970 Fifth Count Block Group/Enumeration
District computer tape file available from Census summary tape
processing centers and from the HUD Area Office, special Census surveys
or data verified by the Census and should use comparable data from the
1980 Census as soon as it is available, to establish population, income
and poverty levels.
(5) Certification of the preapplication eligibility data. The
applicant's chief executive officer must certify that to the best of his
knowledge the Pocket of Poverty defined in the application meets the
population, income and poverty criteria described in this paragraph (a)
and that the data provided in the application to establish eligibility
are true and correct.
(6) Comparable services. The applicant's chief executive officer
must certify in the preapplication request for a determination of
eligibility that the applicant is now providing basic services (police,
fire, road repair and sanitation) over which it has control to the
designated Pocket of Poverty which are at least equivalent to the basic
services which it provides to more affluent residential areas of its
jurisdiction (areas similar in population numbers to the pocket but with
median incomes above the jurisdiction's median income). The
certification must indicate that services in the pocket reflect
adjustments based on needs resulting from the physical characteristics
of the area (e.g., land use pattern, density, housing type).
(i) The preapplication should indicate that the applicant has on file
data and analyses comparing basic services, over which it has control,
provided to more affluent areas of the jurisdiction to the level and
type of basic services which are provided to the Pocket of Poverty. To
the extent practicable, the applicant must document that per capita
expenditures are at least equivalent in the Pocket of Poverty when
compared to the more affluent area. If comparisons of per capita
expenditures of basic services are not practicable, the data and
analyses on file should use similar units of measurement, which
approximate per capita costs, to compare the level and type of basic
services provided in the pocket to those provided in more affluent
residential areas. For example, if the police department's standard for
response to calls requesting assistance in the more affluent areas is
''x'' minutes, then the applicant must have documentation in its files
that it provides the Pocket of Poverty at least this level of service.
Similarly, if the standard for sanitation is ''x'' trash pickups in the
more affluent areas, the applicant must have data and analyses in its
file that demonstrate that it provides the Pocket of Poverty at least
this level of service, etc.
(ii) The data and analyses on file must also indicate that the
compared basic services reflect adjustments to the needs resulting from
the physical characteristics of the Pocket of Poverty; they must
reflect reasonable local efforts to adjust to the service needs
resulting from such physical factors as density, housing types, and land
use patterns. For example, a relatively high level of density in the
pocket would be expected to generate more frequent trash pickups or
shorter scheduled trips for trash pickups than in a lower density area.
(b) Location of the project and related requirements for communities
containing Pockets of Poverty. The proposed project must be located
within the severely distressed area defined in the eligibility criteria
of paragraphs (a)(2) and (3) of this section. However, in limited
instances, HUD will approve a project on a site directly adjacent to the
Pocket of Poverty if the applicant demonstrates in the application that
there is no other suitable site for the project in the Pocket of
Poverty. To do this, the applicant must provide in the application data
and analyses that indicate that the project would not be economically
feasible if located on a site in the pocket or that its location on a
site in the pocket would cause harm to low- and moderate-income
residents of the pocket and the area's overall economic development.
All assisted projects directly adjacent to the pocket must substantially
contribute to the development of the pocket, and must meet the minimum
requirements described in paragraph (c) of this section.
(c) Application submission factors in addition to those of 570.458
-- (1) General. Applicants for Action Grants under the Pockets of
Poverty provision must meet the requirements of this section in addition
to those described in 570.458.
(2) Provision of local matching funds. Applicants applying for
Action Grants under Pockets of Poverty must make available a cash
contribution, equal to 20 percent of the amount of the grant requested,
to be used as a local match. The amount of the grant requested equals
the amount of money which the private participating party states is
necessary in order to build the project. The statement that ''but for
the receipt of the public funds requested * * *'' is further described
under ''firm private commitment'' in 570.451(h). The local share is
then calculated by taking 20 percent of the ''but for'' amount. Such
funds may be derived from local funding sources, State funds or from any
Federal program which permits the use of financial assistance to meet
the non-Federal share requirement of Federal grant-in-aid programs.
Revenue bonds, however, may not be used as the source of the local
match.
(i) Use of the local match. The 20 percent share must be in cash and
must be spent on direct costs resulting from the project and occurring
because of the project. For example, the match may be used to provide
sewer and water facilities required by the project or roads specifically
needed by the project.
(ii) Provision of a firm commitment of the local matching funds. If
the source of the funds to be used as the match is from own source
revenues or locally derived revenues, the chief executive officer must
submit evidence with the application that a city or county council
resolution or other appropriate action has been taken approving the
allocation of these funds. If the source of such funds is a State or
Federal agency which must approve their utilization, then a letter of
commitment from that agency must be submitted with the application.
(3) Direct benefits to the low- and moderate-income inhabitants of
the Pocket of Poverty. Applicants must demonstrate that the proposed
project will provide direct benefits to the low- and moderate-income
residents of the Pocket of Poverty and substantially contribute to the
physical and economic development of the Pocket of Poverty, particularly
those areas occupied by low- and moderate-income residents of the pocket
of poverty. Applications must address the following categories of
benefits and impacts.
(i) Employment opportunities. The application must describe the
number and, to the extent possible, the types of new jobs (construction
and permanent) which will be provided to the low- and moderate-income
residents of the Pocket of Poverty as a direct result of the proposed
project. If the application calls for job training programs (such as
those related to the CETA program) or job recruiting services for the
pocket's residents, then such proposed activities must be clearly and
fully explained. HUD requires applicants to ensure that at least 75
percent of whatever permanent jobs initially result from the project are
provided to low- and moderate-income persons and that at least 51
percent of whatever permanent jobs initially result from the project are
provided to low- and moderate-income residents from the pocket. HUD
encourages applicants to ensure that at least 20 percent of all
permanent jobs are filled by persons from the pocket qualified to
participate in the CETA program on a continuous basis. HUD requires all
applicants to continuously use best efforts to ensure that at least 75
percent of all permanent jobs resulting from any Action Grant-assisted
project are provided to low- and moderate-income persons and that at
least 51 percent of all permanent jobs resulting from any Action
Grant-assisted project are provided to low- and moderate-income
residents from the pocket. The application should clearly describe how
the applicant intends to meet initial and continuous job requirements.
Applicants are referred to 570.461(b) concerning legally binding
commitments. Private participating parties must meet these employment
requirements in the aggregate. To enable the private participants to do
so, lease agreements executed by a private participating party shall
include:
(A) Provisions requiring lessees to follow hiring practices which the
private participating party has determined will enable it to meet these
requirements in the aggregate and
(B) Provisions which will enable the private participating party to
declare a default under the lease agreement if the lessees do not follow
such practices.
(ii) Services and physical improvements. If relevant, the
application should describe the services and physical improvements to be
provided by the project and their specific relationship to the needs of
the low- and moderate-income inhabitants of the Pocket of Poverty.
(iii) Repayment by private sector. HUD requires the applicant to
utilize proceeds from any repayment of Action Grant funds or local match
funds by the private sector for the direct benefit of low- and
moderate-income residents of the pocket's area.
(iv) Tax increment. HUD encourages the applicant to allocate local
revenues equal to a significant portion of the applicant's tax increment
(net increase in property tax revenues over current revenues) resulting
from the project to the Pocket of Poverty for economic or community
development purposes within the pocket, particularly the areas occupied
by low- and moderate-income residents of the Pocket of Poverty. The
activities for which the funds may be used must directly benefit the
low- and moderate-income residents of the Pocket of Poverty. The funds
may not be used to meet comparable service requirements defined in
paragraph (a)(7) of this section or to substitute for applicant
resources normally made available to the pocket's area or their
residents.
(v) Minority entrepreneurs. HUD encourages the applicant to provide
opportunities for minority entrepreneurs, including minority
entrepreneurs from the pockets, in all aspects of the project (planning,
design, construction and operation of the project).
(vi) Minority jobs. HUD encourages the applicant to provide job
opportunity to low- and moderate-income minorities equivalent, at a
minimum, to their proportion of the population in the pocket.
(d) Criteria for project selection for communities containing Pockets
of Poverty -- (1) General. Applications from eligible Pockets of
Poverty communities will be considered separately from those of
distressed communities. However, each project submitted by
jurisdictions eligible on the basis of its Pockets of Poverty must
compare favorably on its own merits with any other Action Grant project
to be selected for funding. Criteria for the selection of projects for
preliminary funding approval are set forth in 570.459 (a) and (b), and
(e) through (r) with the additions and modifications set forth in
paragraph (d)(2) of this section.
(2) Additional factors for the selection of projects for funding.
HUD shall in each calendar quarter review all proposals received and
pending consideration and shall determine which among such proposals
shall receive preliminary funding approval on the following bases:
(i) The comparative degree of distress in the Pocket of Poverty as
measured by the percent of residents below the national poverty level
and the percent of residents with incomes below 80 percent of the median
income.
(ii) The comparative degree of benefits to be provided to low- and
moderate-income persons residing in the area. For example, given two
equally feasible and effective proposals, HUD will select that proposal
which provides the greatest overall benefits to low- and moderate-income
persons living in the pocket of poverty.
(iii) HUD shall also consider:
(A) The extent to which the project provides jobs to CETA-eligible
residents of the Pocket of Poverty;
(B) The extent to which a significant portion of the tax increment,
or an equivalent thereof, is allocated for economic or community
development purposes within the pocket for activities which directly
benefit low- and moderate-income residents of the pocket;
(C) The extent to which low- and moderate-income minorities are
employed in the project in excess of their proportion of the population
of the Pocket of Poverty;
(D) The extent to which minority entrepreneurs, including minority
entrepreneurs from the pocket, are provided opportunities to participate
in all phases of the project; and
(E) The extent of support for the project from bona fide groups
representing low- and moderate-income residents of the pocket and from
pocket's residents themselves.
(47 FR 7983, Feb. 23, 1982, as amended at 50 FR 12789, Apr. 1, 1985)
24 CFR 570.467 Specific provisions for consortia of small cities
applying for UDAG funds.
(a) General. Beginning with the July, 1988 funding round
(represented in the table in 570.460(a) as the May 1-31 application
period, the June 1-July 31 review period, and the July 31 decision
date), geographically proximate cities of less than 50,000 population
may combine to apply for grants on behalf of a member city that is
otherwise eligible for assistance under this subpart. Grants awarded to
such consortia shall be administered in compliance with eligibility
requirements applicable to individual cities, as set forth in this
subpart. For purposes of this section, a consortium may include county
governments that are not urban counties. To be eligible, the following
general requirements must be met:
(1) Member communities of a consortium must be geographically
proximate (i.e. located with normal commuting distance to the project)
to the eligible distressed city or cities for which the application is
being submitted, as determined by the appropriate HUD field office based
on data and analysis supplied by the applicant.
(2) The project site must be located in an area which is within the
jurisdiction of a member of the consortium;
(3) At least 51% of the jobs and taxes must go to an eligible
distressed city or cities.
(4) All the jobs and taxes to be generated by the project will be
counted in the calculation of project selection points.
(b) Additional requirements. In addition to the general requirements
set forth in paragraph (a) of this section, the following requirements
must be met:
(1) The application must include, in addition to the requirements of
570.458, an executed cooperation agreement signed by all member
communities and designating the member unit of government whose chief
executive officer will be administratively responsible for the project
and the responsible federal official for NEPA, historic preservation and
other statutory and regulatory requirements, as set forth in
570.458(c)(14). The cooperation agreement must also identify the
expected project benefits, i.e., jobs, taxes and repayment and how these
project benefits will be allocated among the member communities and the
distressed city or cities.
(2) The application must include certification as to each member's
authority to enter into the cooperation agreement.
(3) Each member of the consortium must meet all the Fair Housing and
Equal Opportunity requirements set forth in this subpart.
(4) UDAG repayments either must go to the eligible city or eligible
cities receiving project benefits or must be used entirely for the
benefit of these eligible cities.
(c) Other considerations. If the benefits go to one eligible city,
then the impaction and distress rankings of that city will be used. If
more than one eligible distressed city is receiving benefits, the
impaction and distress scores will be recalculated based on the combined
characteristics of the communities receiving benefits.
(53 FR 52415, Dec. 29, 1988)
24 CFR 570.467 Subpart H -- (Reserved)
24 CFR 570.467 Subpart I -- State's Program: State Administration of
CDBG Nonentitlement Funds
Source: 47 FR 15297, Apr. 8, 1982, unless otherwise noted.
24 CFR 570.488 General.
This subpart describes policies and procedures applicable to States
which elect to receive Community Development Block Grant funds for
distribution to units of general local government in the State's
nonentitlement areas pursuant to section 106(d) of the Housing and
Community Development Act of 1974, as amended.
24 CFR 570.489 Primary objectives; State responsibilities.
(a) Primary objectives. Section 101(c) of the Act establishes as its
primary objective ''the development of viable urban communities, by
providing decent housing and a suitable living environment, and
expanding economic opportunities, principally for persons of low and
moderate income.'' This overall objective is achieved through a program
where the projected use of funds has been developed so as to give
maximum feasible priority to activities which will benefit low- and
moderate-income families or aid in the prevention or elimination of
slums or blight; the projected use of funds may also include activities
which the grantee certifies are designed to meet other community
development needs having a particular urgency because existing
conditions pose a serious and immediate threat to the health or welfare
of the community where other financial resources are not available to
meet such needs. The choice of activities on which block grant funds
are expended represents the determination by State and local
participants, developed in accordance with the State's program design
and procedures, as to which approach or approaches will best serve these
objectives. Each State may determine a definition of ''low- and
moderate-income families'' for purposes of assuring compliance with the
primary objectives of the Act based upon State conditions or
determinations, taking into account, as guidelines indicative of
legislative intent, the Federal administrative standard of 80 percent of
area median income previously established by HUD in its administration
of the community development block grant program or Federal standards
for housing programs established for lower income persons (e.g., section
8 housing assistance programs) or low- and moderate-income persons
(e.g., Section 221(d)(3) Below Market Interest Rate mortgage insurance,
rural housing loan programs under Title V of Housing Act of 1949
administered by Farmers Home Administration). In determining such
standards, however, States must appropriately ensure that assisted
activities do not benefit moderate-income families to the exclusion of
low-income families. It will also be essential that States formulate
definitions of sufficient clarity and utility to permit determination of
compliance with the primary objectives of the Act. Within the foregoing
criteria, activities of units of general local government which may be
assisted by funds distributed by States pursuant to this subpart are
those listed in section 105(a) of the Act.
(b) State responsibilities. Primary and direct responsibility for
overall administration of funds distributed pursuant to this subpart is
vested in the State. States are free to develop purposes and procedures
for distributing funds as State and local priorities dictate, subject to
the primary objectives and other requirements of the Act. In exercising
his obligation and responsibility to review a State's performance, the
Secretary will give maximum feasible deference to the State's
interpretation of the statutory requirements consistent with the
Secretary's obligation to enforce compliance with the manifest intent of
Congress as declared in the Act and will not determine that a State has
failed to carry out its certifications in compliance with the
requirements of the Act unless the Secretary finds that procedures and
requirements adopted by the State are insufficient to afford reasonable
assurance that activities undertaken by units of general local
government will not be plainly inappropriate to meeting the State's
community development objectives and the primary objectives of the Act.
24 CFR 570.490 Submission requirements.
(a) Election to receive funds. A State shall elect to distribute
amounts allocated for nonentitlement areas in such State by its
submission to the Secretary, during the month of July before the
beginning of each Federal fiscal year (October 1-September 30) in which
the State elects to administer such funds, of the certifications by the
Governor specified in section 106(d)(2)(C)(i) through (iii) of the Act.
For Federal Fiscal Year 1982, however, the State shall submit such
certifications within 60 days of the effective date of these
regulations.
(b) Final statement and certifications. Before March 31 during each
Federal fiscal year in which the State elects to administer the CDBG
funds for its nonentitlement areas, the State shall submit to the
Secretary:
(1) The certification by the Governor specified in section
106(d)(2)(C)(iv) of the Act;
(2) The certifications specified in section 104(b) of the Act; and
(3) The final statement described in section 104(a)(1) of the Act.
(4) For Federal Fiscal year 1992 and thereafter, a certification
required by part 91 of this title that the State's method of
distribution with respect to housing activities is consistent with the
State's HUD-approved Comprehensive Housing Affordability Strategy.
(c) Certifications. In the absence of independent evidence (which
may, but need not be, derived from performance reviews and audits
performed by the Secretary pursuant to section 104(d)(2) of the Act)
which tends to challenge in a substantial manner the certifications made
by the State, such certifications will be deemed satisfactory to the
Secretary if made in compliance with the statutory requirement. If such
independent evidence is available to the Secretary, however, the
Secretary may require such further information or assurances to be
submitted by the State as the Secretary may consider warranted or
necessary in order to find the State's certifications satisfactory.
(d) Failure to submit. The State's failure to make the submissions
required by paragraph (a) or (b) of this section by the dates specified
shall constitute the State's election not to receive and distribute
amounts allocated for its nonentitlement areas for the applicable fiscal
year.
(47 FR 15297, Apr. 8, 1982, as amended at 56 FR 56128, Oct. 31, 1991)
24 CFR 570.491 Prior multiyear commitments.
Each State administering an allocation for nonentitlement areas shall
provide, in its method of distribution, for the funding of multiyear
grant commitments made by HUD to units of general local government in
nonentitlement areas pursuant to subpart F in Federal Fiscal Years 1980
and 1981, if such units of general local government request the State to
honor such funding commitments and unless the Secretary shall determine
that any such recipient has not performed adequately with respect to
funds previously distributed by HUD under such commitment (or unless the
State shall make such determination with respect to funds previously
distributed by the State when honoring a prior multiyear commitment
pursuant to this section). HUD shall remain responsible for
administration of funds distributed by HUD under multiyear commitments,
and the State shall be responsible for the administration of funds
distributed by the State when honoring a prior multiyear commitment
pursuant to this section.
24 CFR 570.492 State matching funds.
Pursuant to its certification specified in section 106(d)(2)(C)(iii)
of the Act, the State is required to provide, out of State resources,
funds for community development activities in nonentitlement areas in an
amount which is at least 10 percent of the CDBG funds allocated for use
in the State's nonentitlement areas. For the purpose of determining
compliance with such certification:
(a) ''State resources'' will be deemed to include State operating
appropriations or proceeds of State general obligation or revenue bonds
expended in nonentitlement areas. Such State funds may be used for
ongoing State programs or activities; they need not be derived from
special appropriations or bonds specifically designed to meet this ten
percent match requirement. Funds may be provided in the form of grants,
loans, direct State expenditures, or other forms of assistance.
(b) ''Community development activities'' need not relate directly to
activities undertaken with the State's allocation nor be in the
communities which receive CDBG nonentitlement funds. Activities may
include, but are not limited to, activities undertaken for the
improvement of distressed areas or for the benefit of low- and
moderate-income households, and may be activities eligible under section
105 of the Act, as well as housing and community development activities
not eligible under the Act, such as construction of new housing and
rental subsidies. ''Community development activities'' does not include
State administration of CDBG funds.
(c) Activities may be undertaken by the State, units of general local
government, or by other entities selected by the State, but must be paid
for from the State's own funds.
24 CFR 570.493 Administrative costs.
Administrative costs paid or reimbursed from CDBG funds pursuant to
section 106(d)(3)(A) of the Act may include any administrative costs,
direct and indirect, related to preparing for or carrying out the
State's program. Grants provided under section 107 of the Act may not
be used for administrative costs required to be paid from the State's
own resources.
24 CFR 570.494 Grant payments; program income.
(a) Payments. Payments will be made by electronic funds transfer
whenever possible, letter of credit, or other means, pursuant to grant
agreements as required by the Federal Grant and Cooperative Agreement
Act of 1977 (41 U.S.C. 501 et seq.) and in compliance with the
Intergovernmental Cooperation Act (42 U.S.C. 4201 et seq.) and Treasury
Circular No. 1075 (31 CFR part 205). States will utilize appropriate
procedures to minimize the time elapsing between the transfer of funds
by the Treasury to the State and the disbursement of funds by the State
to recipients.
(b) Program income. (1) To the maximum feasible extent, the State
shall disburse to units of general local government any program income
it receives prior to making additional draws from the Treasury.
(2) The State may require recipients to return program income to the
State. These funds may be derived from sources such as reimbursements
to and interest from a recipient's loan program, proceeds from the
disposition of real property, and proceeds from special assessments, to
the extent the costs were initially paid with CDBG funds.
(3) To the maximum feasible extent, the State shall require each
recipient to disburse its program income not required to be returned to
the State prior to requesting additional funds from the State to finance
its CDBG-funded activities.
(4) Interest earned by units of general local government on funds
distributed pursuant to this subpart, prior to disbursement, is not
program income and must be returned to the Treasury. However, the State
shall not be held accountable for interest earned on grants for which
payments are made in accordance with paragraph (a), pending disbursement
for program purposes.
24 CFR 570.495 Environmental responsibilities.
The State shall assume such responsibilities for environmental
review, decisionmaking, and action (and shall require the assumption of
such responsibilities by units of general local government receiving
CDBG funds from the State under this subpart) as shall be specified and
required in regulations issued by the Secretary pursuant to section
104(f) of the Act.
24 CFR 570.496 Program requirements.
Section 104(b) of the Act requires that the State certify, among
other things, that the grant ''will be conducted and administered in
conformity with Pub. L. 88-352 and Pub. L. 90-284,'' and, further,
that the grantee ''will comply with the other provisions of this title
and with other applicable laws.'' Section 104(d)(2) of the Act requires
that the Secretary determine ''whether the State has carried out its
certifications in compliance with the requirements of this title and
other applicable laws, and whether the State has made such reviews and
audits of the units of general local government as may be necessary or
appropriate to determine whether they have satisfied the applicable
performance criteria'' which incorporate, among other things, ''the
requirements * * * of this title * * * and other applicable laws.''
Certain statutes are expressly made applicable to activities assisted
under the Act by the Act itself, while other laws not referred to in the
Act may be applicable to such activities by their own terms. This
section enumerates laws which the Secretary will treat as applicable for
purposes of the determinations to be made by the Secretary under section
104(d)(2) of the Act.
(a) Pub. L. 88-352 and Pub. L. 90-284. ''Pub. L. 88-352'' refers to
Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.),
which 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 be subjected to discrimination under any
program or activity receiving Federal financial assistance. Section 602
of the Civil Rights Act of 1964 directs each Federal department and
agency empowered to extend Federal financial assistance to any program
or activity by way of grant to effectuate the foregoing prohibition by
issuing rules, regulations, or orders of general applicability which
shall be consistent with achievement of the statute authorizing the
financial assistance. HUD regulations implementing the requirements of
Title VI with respect to HUD programs are contained in 24 CFR part 1.
''Pub. L. 90-284'' refers to Title VIII of the Civil Rights Act of 1968
(42 U.S.C. 3601 et seq.), popularly known as the Fair Housing Act, which
provides that it is the policy of the United States to provide, within
constitutional limitations, for fair housing throughout the United
States and prohibits any person from discriminating in the sale or
rental of housing, the financing of housing, or the provision of
brokerage services, including in any way making unavailable or denying a
dwelling to any person, because of race, color, religion, sex, or
national origin. Title VIII further requires the Secretary to
administer the programs and activities relating to housing and urban
development in a manner affirmatively to further the purposes of Title
VIII. In addition, Executive Order 11063, as amended by Executive Order
12259, directs the Department to take all action necessary and
appropriate to prevent discrimination because of race, color, religion
(creed), sex, or national origin, in the sale, leasing, rental, or other
disposition of residential property and related facilities (including
land to be developed for residential use), or in the use or occupancy
thereof, if such property and related facilities are, among other
things, provided in whole or in part with the aid of loans, advances,
grants, or contributions agreed to be made by the Federal Government.
HUD regulations implementing Executive Order 11063 are contained in 24
CFR part 107.
(b) Section 109 of the Act. Section 109 of the Act requires that no
person in the United States shall on the ground of race, color, national
origin or sex, be excluded from participation in, be denied the benefits
of, or be subjected to discrimination under, any program or activity
funded in whole or in part with community development funds made
available pursuant to the Act. Section 109 further provides that any
prohibition against discrimination on the basis of age under the Age
Discrimination Act of 1975 (42 U.S.C. 6101 et seq.) or with respect to
an otherwise qualified handicapped individual as provided in section 504
of the Rehabilitation Act of 1973 (29 U.S.C. 794) shall also apply to
any such program or activity.
(c) Labor standards. Section 110 of the Act requires that all
laborers and mechanics employed by contractors or subcontractors on
construction work assisted under the Act shall be paid wages at rates
not less than those prevailing on similar construction in the locality
as determined by the Secretary of Labor in accordance with the
Davis-Bacon Act, as amended (40 U.S.C. 276a -- 276a-5). By reason of
the foregoing requirement, the Contract Work Hours and Safety Standards
Act (40 U.S.C. 327 et seq.) also applies. However, these requirements
apply to the rehabilitation of residential property only if such
property is designed for residential use of eight or more families.
(d) Environmental standards. Section 104(f) expresses the intent
that ''the policies of the National Environmental Policy Act of 1969 and
other provisions of law which further the purposes of such Act (as
specified in regulations issued by the Secretary) * * * (be) most
effectively implemented in connection with the expenditure of funds
under'' the Act. Such other provisions of law which further the
purposes of the National Environmental Policy Act of 1969 are specified
in regulations issued pursuant to section 104(f) of the Act and
contained in 24 CFR part 58. (See 570.495.)
(e) Employment opportunities. Section 3 of the Housing and Urban
Development Act of 1968 (12 U.S.C. 1701u) requires, in connection with
the planning and carrying out of any project assisted under the Act,
that to the greatest extent feasible opportunities for training and
employment be given to lower-income persons residing within the unit of
local government or the metropolitan area (or nonmetropolitan county) in
which the project is located, and that contracts for work in connection
with the project be awarded to eligible business concerns which are
located in, or owned in substantial part by persons residing in the same
metropolitan area (or nonmetropolitan county) as the project. States
shall adopt appropriate procedures and requirements to assure good faith
efforts toward compliance with the statutory directive. HUD regulations
at 24 CFR part 135 are not directly applicable to activities assisted
under this Subpart I but may be referred to as guidance indicative of
the Secretary's view of the statutory objectives in other contexts.
(f) Lead-based paint. Title IV of the Lead-Based Paint Poisoning
Prevention Act (42 U.S.C. 4831), directs the Secretary to prohibit the
use of lead-based paint in residential structures constructed or
rehabilitated with Federal assistance in any form.
(g) Audits. Audits of the State and units of general local
government that receive financial assistance under this subpart shall be
conducted in accordance with the Department's audit regulations at 24
CFR part 44.
(h) Eligibility restrictions for certain resident aliens. The
restrictions described in 570.613 are applicable to the State's Program
under this subpart.
(47 FR 15297, Apr. 8, 1982, as amended at 51 FR 30480, Aug. 27, 1986;
51 FR 37567, Oct. 23, 1986; 55 FR 18494, May 2, 1990)
24 CFR 570.496a Displacement, relocation, acquisition, and replacement
of housing.
(a) General policy for minimizing displacement. Consistent with the
other goals and objectives of this part, the State and state recipients
shall assure that they have taken all reasonable steps to minimize the
displacement of persons (families, individuals, businesses, nonprofit
organizations, and farms) as a result of activities assisted under this
part.
(b) Relocation assistance for displaced persons at URA levels. (1) A
displaced person shall be provided with relocation assistance at the
levels described in, and in accordance with the requirements of, 49 CFR
part 24 which contains the regulations implementing the Uniform
Relocation Assistance and Real Property Acquisition Policies Act of 1970
(URA) (42 U.S.C. 4601-4655).
(2) Displaced person. (i) For purposes of this paragraph (b), the
term ''displaced person'' means any person (family, individual,
business, nonprofit organization, or farm) that moves from the real
property, or moves his or her personal property from the real property,
permanently and involuntarily, as a direct result of rehabilitation,
demolition, or acquisition for an activity assisted under this part. A
permanent, involuntary move for an assisted activity includes a
permanent move from real property that is made:
(A) After notice by the recipient to move permanently from the
property, if the move occurs on or after the date of the initial
submission of an application to the State requesting assistance under
this subpart that is later granted for the requested activity.
(B) After notice by the property owner to move permanently from the
property, if the move occurs after the submission of a request for
financial assistance by the property owner (or person in control of the
site) that is later approved for the requested activity.
(C) Before the date described in paragraph (b)(2)(i) (A) or (B) of
this section, if either HUD or the State determines that the
displacement directly resulted from acquisition, rehabilitation, or
demolition for the requested activity.
(D) After the ''initiation of negotiations'', if the person is the
tenant occupant of a dwelling unit and any one of the following three
situations occurs:
(1) The tenant has not been provided with a reasonable opportunity to
lease and occupy a suitable, decent, safe, and sanitary dwelling in the
same building/complex upon the completion of the project, under
reasonable terms and conditions, including a monthly rent that does not
exceed the greater of: the tenant's monthly rent and estimated average
utility costs before the initiation of negotiations; or 30 percent of
the household's average monthly gross income; or
(2) The tenant, required to relocate temporarily for the activity,
does not return to the building/complex; and either the tenant is not
offered payment for all reasonable out-of-pocket expenses incurred in
connection with the temporary location (including the cost of moving to
and from the temporary location and any increased housing costs), or
other conditions of the temporary relocation are not reasonable; or
(3) The tenant is required to move to another unit in the
building/complex, but is not offered reimbursement for all reasonable
out-of-pocket expenses incurred in connection with the move.
(ii) Notwithstanding the provisions of paragraph (b)(2)(i) of this
section, the term ''displaced person'' does not include:
(A) A person who is evicted for cause based upon serious or repeated
violations of material terms of the lease or occupancy agreement. To
exclude a person on this basis, the State or state recipient must
determine that the eviction was not undertaken for the purpose of
evading the obligation to provide relocation assistance under this
section;
(B) A person who moves into the property after the date of the notice
described in paragraph (b)(2)(i)(A) or (B) of this section, but who
received a written notice of the expected displacement before occupancy.
(C) A person who is not displaced as described in 49 CFR 24.2(g)(2).
(D) A person who the State determines is not displaced as a direct
result of the acquisition, rehabilitation, or demolition for an assisted
activity. To exclude a person on this basis, HUD must concur in that
determination.
(iii) A State or state recipient may, at any time, request HUD to
determine whether a person is a displaced person under this section.
(3) Initiation of negotiations. For purposes of determining the type
of replacement housing assistance to be provided under this paragraph,
if the displacement is the direct result of privately undertaken
rehabilitation, demolition, or acquisition of real property, the term
''initiation of negotiations'' means the execution of the grant or loan
agreement between the State or state recipient and the person owning or
controlling the real property.
(c) Residential antidisplacement and relocation assistance plan. In
accordance with section 104(d) of the Act, each State must ensure that
each state recipient adopts, makes public, and certifies to the State
that it is following a residential antidisplacement and relocation
assistance plan providing one-for-one replacement units (paragraph
(c)(1) of this section), and relocation assistance (paragraph (c)(2) of
this section). Under section 106(d)(5)(A) of the Act, the state
recipient must also certify to the State that it will minimize
displacement of persons as a result of assisted activities.
(1) One-for-one replacement of low/moderate-income dwelling units.
(i) All occupied and vacant occupiable low/moderate-income dwelling
units that are demolished or converted to a use other than as
low/moderate-income dwelling units in connection with an activity
assisted under this part must be replaced with low/moderate-income
dwelling units.
(ii) Replacement low/moderate-income dwelling units may be provided
by any government agency or private developer, and must meet the
following requirements:
(A) The units must be located within the state recipient's
jurisdiction. To the extent feasible and consistent with other
statutory priorities, the units shall be located within the same
neighborhood as the units replaced.
(B) The units must be sufficient in number and size to house no fewer
than the number of occupants who could have been housed in the units
that are demolished or converted. The number of occupants who could
have been housed in units shall be determined in accordance with
applicable local housing occupancy codes. The state recipient may not
replace units with smaller units (e.g., a 2-bedroom unit with two
1-bedroom units), unless the state recipient has provided the
information required under paragraph (c)(1)(iii)(G) of this section.
(C) The units must be provided in standard condition. Replacement
low/moderate-income dwelling units may include vacant units that have
been raised to standard from substandard condition if (1) no person was
displaced from the unit as a direct result of an assisted activity (see
definition of ''displaced person'' in paragarph (c)(3)(ii) of this
section), and (2) the unit was vacant for at least three months before
execution of the agreement between the recipient and the property owner.
(D) The units must initially be made available for occupancy during
the period beginning one year before the state recipient's submission of
the information required under paragraph (c)(1)(iii) of this section and
ending three years after the commencement of the demolition or
rehabilitation related to the conversion.
(E) The units must be designed to remain low/moderate-income dwelling
units for at least 10 years from the date of initial occupancy.
Replacement low/moderate-income dwelling units may include, but are not
limited to, public housing, or existing housing receiving Section 8
project-based assistance under the United States Housing Act of 1937.
(iii) Before the state recipient enters into a contract committing it
to provide funds under this part for any activity that will directly
result in the demolition of low/moderate-income dwelling units or the
conversion of low/moderate-income dwelling units to another use, the
recipient must make public and submit the following information in
writing to the State:
(A) A description of the proposed assisted activity;
(B) The location on a map and the number of dwelling units by size
(number of bedrooms) that will be demolished or converted to a use other
than for low/moderate-income dwelling units as a direct result of the
assisted activity;
(C) A time schedule for the commencement and completion of the
demolition or conversion;
(D) The location on a map and the number of dwelling units by size
(number of bedrooms) that will be provided as replacement dwelling
units. If such data are not available at the time of the general
submission, the submission shall identify the general location on an
area map and the approximate number of dwelling units by size, and
information indentifying the specific location and number of dwelling
units by size shall be submitted and disclosed to the public as soon as
it is available;
(E) The source of funding and a time schedule for the provision of
replacement dwelling units;
(F) The basis for concluding that each replacement dwelling unit will
remain a low/moderate-income dwelling unit for at least 10 years from
the date of initial occupancy; and
(G) Information demonstrating that any proposed replacement of
dwelling units with smaller dwelling units (e.g., a 2-bedroom unit with
two 1-bedroom units) is consistent with the housing needs of low-and
moderate-income households in the jurisdiction.
(iv)(A) The one-for-one replacement requirement of this paragraph
(c)(1) does not apply to the extent the Field Office determines, based
upon objective data, that there is an adequate supply of vacant
low/moderate-income dwelling units in standard condition available on a
nondiscriminatory basis within the state recipient's jurisdiction. In
determining the adequacy of supply, HUD will consider whether the
demolition or conversion of the low/moderate-income dwelling units will
have a material impact on the ability of low- and moderate-income
households to find suitable housing. HUD will consider relevant
evidence of housing supply and demand including, but not limited to, the
following factors: the housing vacancy rate in the jurisdiction; the
number of vacant low/moderate-income dwelling units in the jurisdiction
(excluding units that will be demolished or converted); the number of
eligible families on waiting lists for housing assisted in the
jurisdiction under the United States Housing Act of 1937; and relevant
past or predicted demographic changes.
(B) HUD may consider the supply of vacant low/moderate-income
dwelling units in a standard condition available on a nondiscriminatory
basis in an area that is larger than the state recipient's jurisdiction.
Such additional dwelling units shall be considered if the Field Office
determines that the units would be suitable to serve the needs of the
low- and moderate-income households that could be served by the
low/moderate-income dwelling units that are to be demolished or
converted to another use. HUD will base this determination on
geographic and demographic factors, such as location and access to
places of employment and to other facilities.
(C) The recipient must submit the request for determination under
this paragraph (c)(1)(iv) to the State. Simultaneously with the
submission of the request, the recipient must make the submission public
and inform interested persons that they have 30 days from the date of
submission to provide to the State additional information supporting or
opposing the request. If the State, after considering the submission
and the additional data, agrees with the request, the State must provide
its recommendation with supporting information to HUD.
(2) Relocation assistance under section 104(d) of the Act. Under
section 104(d), each ''displaced person'' (defined in paragraph
(c)(3)(ii) of this section) is entitled to choose to receive either
assistance at URA levels (see paragraph (b) of this section) or the
following relocation assistance:
(i) Advisory services at the level described in 49 CFR part 24,
subpart C (General Relocation Requirements). The state recipient shall
advise tenants of their rights under the Fair Housing Act (42 U.S.C.
3601-19) and of replacement housing opportunities in such a manner that,
to the extent feasible, they will have a choice between relocating
within their neighborhoods and other neighborhoods consistent with the
state recipient's responsibility to affirmatively further fair housing;
(ii) Payment for moving expenses at the levels described in 49 CFR
part 24, subpart D.
(iii) The reasonable and necessary cost of any security deposit
required to rent the replacement dwelling unit, and for credit checks
required to rent or purchase the replacement dwelling unit; and
(iv) Interim living costs. The state recipient shall reimburse a
person for actual reasonable out-of-pocket costs incurred in connection
with temporary relocation, including moving expenses and increased
housing costs, if (A) the person must relocate temporarily because
continued occupancy of the dwelling unit constitutes a substantial
danger to the health or safety of the person or the public, or (B) the
person is displaced from a low/moderate-income dwelling unit (defined in
paragraph (c)(3)(iii) of this section), none of the available comparable
replacement dwelling units (defined in paragraph (c)(3)(i) of this
section) qualifies as a low/moderate-income dwelling unit, and a
suitable low/moderate-income dwelling unit is scheduled to become
available in accordance with paragraph (c)(1) of this section. (Because
a ''comparable replacement dwlling unit'' may be made affordable through
a rental assistance payment and its market rent may exceed the Fair
Market Rent (FMR) under the Section 8 Existing Housing Program, it may
not meet the definition of a ''low/moderate-income dwelling unit.'')
(v) Replacement housing assistance. Persons are eligible to receive
one of the following two forms of replacement housing assistance;
(A) Each person must be offered rental assistance equal to 60 times
the amount necessary to reduce the monthly rent and estimated average
monthly cost of utilities for a replacement dwelling (comparable
replacement dwelling or decent, safe, and sanitary replacement dwelling
to which the person relocates, whichever costs less) to the ''Total
Tenant Payment,'' as determined under 813.107 of this title. All or a
portion of this assistance may be offered through a certificate or
housing voucher for rental assistance (if available) provided through
the Local Public Agency (PHA) under Section 8 of the United States
Housing Act of 1937. If a section 8 certificate or housing voucher is
provided to a person, the State recipient must provide referrals to
comparable replacement dwelling units where the owner is willing to
participate in the Section 8 Existing Housing Program. To the extent
that cash assistance is provided, it may, at the discretion of the State
recipient, be in either a lump sum or in installments.
(B) If the person purchases an interest in a housing cooperative or
mutual housing association and occupies a decent, safe, and sanitary
dwelling in the cooperative or association, the person may elect to
receive a lump sum payment. This lump sum payment shall be equal to the
capitalized value of 60 monthly installments of the amount that is
obtained by subtracting the ''Total Tenant Payment,'' as determined
under 813.107 of this title from the monthly rent and estimated average
monthly cost of utilities at a comparable replacement dwelling unit. To
compute the capitalized value, the installments shall be discounted at
the rate of interest paid on passbook savings deposits by a federally
insured bank or savings and loan institution conducting business within
the state recipient's jurisdiction. To the extent necessary to minimize
hardships to the household, the state recipient shall, subject to
appropriate safeguards, issue a payment in advance of the purchase of
the interest in the housing cooperative or mutual housing association.
(C) Displaced low/moderate income tenants shall be advised of their
right to elect relocation assistance pursuant to the Uniform Relocation
regulations appearing at 49 CFR part 24 as an alternative to the
relocation assistance available under paragraph (c)(2) of this section.
(3) Definitions. For purposes of providing section 104(d) assistance
under this paragraph (c):
(i) Comparable replacement dwelling unit. The term ''comparable
replacement dwelling unit'' means a dwelling unit that (A) meets the
criteria of 49 CFR 24.2(d) (1) through (6); and (B) is available at a
monthly cost for rent plus estimated average monthly utility costs that
does not exceed the ''Total Tenant Payment'' as determined under
813.107, of this title after taking into account any rental assistance
the household would receive.
(ii) Displaced person. (A) The term ''displaced person'' means any
low/moderate-income family or individual that moves from real property,
or moves his or her personal property from real property, permanently
and involuntarily, as a direct result of the conversion of a
low/moderate-income dwelling unit (defined in paragraph (c)(3)(iv) of
this section) or demolition in connection with an activity assisted
under this part. A permanent, involuntary move for an assisted activity
includes a permanent move from the real property that is made:
(1) After notice by the state recipient to move permanently from the
property, if the move occurs after the initial submission of an
application to the State by the recipient requesting assistance under
this subpart that is later granted for the requested activity.
(2) After notice by the property owner to move permanently from the
property, if the move occurs after the date of the submission of a
request for financial assistance by the property owner (or person in
control of the site) that is later approved for the requested activity.
(3) Before the date described in paragraph (c)(3)(ii)(A) (1) or (2)
of this section if the state recipient, the State, or HUD determines
that the displacement directly resulted from the conversion of a
low/moderate-income dwelling unit or demolition in connection with the
requested activity.
(4) After the execution of the agreement by the state recipient
covering the rehabilitation or demolition, if the person is a
tenant-occupant of a dwelling unit, but:
(i) The tenant has not been provided with a reasonable opportunity to
lease and occupy a suitable decent, safe, and sanitary dwelling in the
same building/complex following the completion of the project, at a
monthly rent that does not exceed the greater of the tenant's monthly
rent and estimated average utility costs before the ''initiation of
negotiations'' or the ''Total Tenant Payment'' for the person as
determined under 813.107 of this title; or
(ii) The tenant, required to relocate temporarily for the activity;
does not return to the building/complex; and either the tenant is not
offered payment for all reasonable out-of-pocket expenses incurred in
connection with the temporary location (including the cost of moving to
and from the temporary location and any increased housing costs), or
other conditions of the temporary relocation are not reasonable; or
(iii) The tenant is required to move to another unit in the
building/complex, but is not offered reimbursement for all reasonable
out-of-pocket expenses incurred in conection with the move.
(B) Notwithstanding the provisions of paragraph (c)(3)(ii)(A) of this
section, the term ''displaced person'' does not include:
(1) A person who is evicted for cause based upon serious or repeated
violations of material terms of the lease or occupancy agreement. To
exclude a person on this basis, the state recipient must determine that
the eviction was not undertaken for the purpose of evading the
obligation to provide relocation assistance under this section;
(2) A person who moves into the property after the date described in
paragraph (c)(3)(ii)(A) (1) or (2) of this section, but received a
written notice of the expected displacement before occupancy.
(3) A person who is not displaced as defined under 49 CFR 24.2(g)(2).
(4) A person who the State determines is not displaced as a direct
result of the conversion of a low/moderate-income dwelling or demolition
in connection with an assisted activity. To exclude a person on this
basis, HUD must concur in that determination.
(C) A State may, at any time, request HUD to determine whether a
person is a ''displaced person'' under this section.
(iii) Low-moderate-income dwelling unit. The term
''low/moderate-income dwelling unit'' means a dwelling unit with a
market rent (including utility costs) that does not exceed the
applicable Fair Market Rent (FMR) for existing housing established under
24 CFR Part 888, except that the term does not include a unit that is
owned and occupied by the same person before and after the assisted
rehabilitation.
(iv) Standard condition and substandard condition suitable for
rehabilitation. A State may define the terms ''standard condition'' and
''substandard condition suitable for rehabilitation'' or may allow the
state recipient to establish and make public its definition of these
terms. If a state permits the recipient to establish its definition of
these terms, the State must determine if the state recipient's
definition is acceptable.
(v) Vacant occupiable dwelling unit. The term ''vacant occupiable
dwelling unit'' means a vacant dwelling unit that is in a standard
condition; or a vacant dwelling unit that is in a substandard
condition, but is suitable for rehabilitation; or a dwelling unit in
any condition that has been occupied (except by a squatter) at any time
within the period beginning one year before the date of execution of the
agreement by the state recipient covering the rehabilitation or
demolition.
(d) Optional relocation assistance. Under section 105(a)(11) of the
Act, the State may permit the state recipient to provide relocation
payments and other relocation assistance to persons displaced by
activities that are not subject to paragraph (b) or (c)(2) of this
section. The State also may permit the state recipient to provide
relocation assistance to persons receiving assistance under paragraphs
(b) or (c) of this section at levels in excess of those required by
these paragraphs. Unless such assistance is provided under State or
local law, the state recipient shall provide such assistance only upon
the basis of a written determination that the assistance is appropriate.
The state recipient also must adopt a written policy available to the
public that describes the relocation assistance the state recipient has
elected to provide and that provides for equal relocation assistance
within each class of displaced persons.
(e) Acquisition of real property. The acquisition of real property
for an assisted activity is subject to 49 CFR part 24, subpart B.
(f) Appeals. If a person disagrees with the state recipient's
determination concerning the persons's eligibility for, or the amount
of, a relocation payment under this section, the person may file a
written appeal of that determination with the state recipient. The
appeal procedures to be followed are described in 49 CFR 24.10. In
addition, a low/moderate-income person may file a written request for
review of the state recipient's decision with the State.
(g) Responsibility of State. (1) The State is responsible for
ensuring compliance with the requirements of this section by its state
recipients and shall require state recipients to certify that they will
comply with the provisions of this section, notwithstanding any third
party's contractual obligation to the state recipient to comply with the
provisions of this section.
(2) The cost of assistance required under this section may be paid
from local public funds, funds provided under this part, or funds
available from other sources.
(3) The State and the state recipient must maintain records in
sufficient detail to demonstrate compliance with the provisions of this
section.
(Approved by the Office of Management and Budget under OMB control
number 2506-0102)
(55 FR 29309, July 18, 1990)
24 CFR 570.497 Recordkeeping.
(a) State records. Each State administering grants under this
subpart shall establish and maintain such records as may be necessary to
facilitate review and audit by the Secretary of the State's
administration of grants pursuant to section 104(d) of the Act. Records
maintained by the State shall be sufficient to enable the Secretary to
determine whether or not the program is being carried out in accordance
with the State's certification and the requirements of the Act and other
applicable laws, and to permit audit of the State's activities
conducted, insofar as practicable, in accordance with standards
established by the Comptroller General for the audit of governmental
organizations, programs, activities, and functions.
(b) Recipient records. Each State shall establish recordkeeping
requirements for units of general local government receiving assistance
which shall be sufficient to facilitate such reviews and audits of such
recipients as may be necessary or appropriate to determine whether they
have carried out their activities in accordance with the requirements
and the primary objectives of the Act and with other applicable laws.
Audits of recipients conducted by or for States shall, insofar as
practicable, be conducted in accordance with standards established by
the Comptroller General for the audit of governmental organizations,
programs, activities, and functions.
(c) Access to records. Representatives of the Secretary, the
Inspector General, and the General Accounting Office shall have access
to all books, accounts, records, reports, files, and other papers,
things, or property belonging to or in use by States and such recipients
pertaining to the administration of grants and receipt of assistance
under this subpart and necessary to facilitate such audits.
24 CFR 570.498 Performance reports.
Each State administering grants under this subpart shall submit to
the Secretary a performance report as required by section 104(d) of the
Act. Such report shall be in such form and contain such information
(including the assessment required by section 104(d) of the Act) as the
State shall deem appropriate and sufficient to provide an adequate basis
for the determinations required to be made by the Secretary pursuant to
Section 104(d)(2) of the Act. If the Secretary determines that the
State's performance report falls substantially short of providing an
adequate basis for such determinations, the Secretary may require the
State to provide such additional information as the Secretary finds
necessary for such purpose. The State shall submit its intital
performance report regarding its administration of a fiscal year's
allocation not earlier than nine nor more than 15 months after its
initial receipt of funds under the applicable fiscal year's allocation
and shall supplement such report annually, not later than October 1 of
the following fiscal year, until all funds from such year's allocation
have been expended by the recipients and the State has completed its
reviews and audits of the units of general local government with respect
to such fiscal year referred to in section 104(d)(2) of the Act.
24 CFR 570.499 Reviews and audits response.
If the Secretary's review and audit pursuant to section 104(d)(2) of
the Act results in any negative determination, or if the Secretary
otherwise has reason to believe that a State or recipient has failed to
comply in a substantial or serious manner with any requirement of the
Act, the Secretary may take one or more of the following actions as the
Secretary deems appropriate in order to prevent a continuation of the
deficiency; mitigate, to the extent possible, the adverse effects or
consequences of the deficiency; or prevent a recurrence of the
deficiency:
(a) Request the State to submit additional information pertinent to
the negative determinations and the State's proposals for corrective
action;
(b) Issue a letter of warning that advises the State of the
deficiency and puts the State on notice that more serious sanctions will
be imposed if the deficiency is not corrected or is repeated; advise
the State that a certification will no longer be acceptable and that
additional information or assurances will be required;
(c) Advise the State to suspend disbursement of funds for a
questioned activity or to a recipient whose activities are determined to
have not satisfied the applicable performance criteria described in
section 104(d)(1) of the Act;
(d) Advise the State to reimburse its program account or letter of
credit in any amounts improperly expended;
(e) In the case of a determination that a State or recipient has
failed to comply with the requirements of section 109(a) of the Act, and
after the notification required by section 109(b) of the Act, and
subsequent failure or refusal to secure compliance, take the further
actions by section 109(b) of the Act.
(f) In the case of a determination that the State or any recipient
has failed to comply substantially with any provision of the Act, refer
the matter to the Attorney General of the United States pursuant to
section 111(b)(1) of the Act with a recommendation that an appropriate
civil action be instituted;
(g) Condition the use of funds from a succeeding fiscal year's
allocation upon appropriate corrective action by the State. When the
use of funds is conditioned, the Secretary shall specify the reasons for
the conditions and the actions necessary to satisfy such conditions.
24 CFR 570.499a Remedies after hearing.
(a) General. Action pursuant to this section will be taken only
after at least one of the corrective or remedial actions specified in
570.498 has been taken, and only then if the recipient has not made an
appropriate and timely response. Initiation of procedures toward a
sanction pursuant to this section will be undertaken only after the
State has been notified and given an opportunity within a prescribed
time for an informal consultation regarding the proposed action.
(b) Remedies. If the Secretary finds after reasonable notice and
opportunity for hearing that a State or unit of general local government
receiving assistance under this subpart has failed to comply
substantially with any provision of the Act, the Secretary, until he is
satisfied that there is no longer any such failure to comply shall:
(1) Make appropriate adjustments in the amount of the annual grants;
(2) With respect to assistance made available to units of general
local government, adjust, reduce, or withdraw such assistance, or take
other actions as appropriate, except that funds already expended on
eligible activities under the Act shall not be recaptured or deducted
from future assistance to such units of general local government;
(3) Terminate payments to the State, or direct that the State
terminate payments to a unit of general local government;
(4) Reduce payments to the State, or direct that the State reduce
payments to a unit of general local government, by an amount equal to
the amount of such payments which were not expended in accordance with
the Act; or
(5) Limit the availability of payments to programs, projects, or
activities not affected by such failure to comply: Provided, however,
That the Secretary may on due notice suspend payments at any time after
the issuance of a notice of opportunity for hearing pursuant to
paragraph (c)(1) of this section, pending such hearing and a final
decision, to the extent the Secretary determines such action necessary
to preclude the further expenditure of funds for activities affected by
such failure to comply.
(c) Proceedings. When the Secretary proposes to take action pursuant
to this section, the respondent in the proceedings will be the State.
At the option of the Secretary, a unit of general local government may
also be made a respondent. These procedures are to be followed prior to
imposition of a sanction described in paragraph (b) of this section:
(1) Notice of opportunity for hearing. The Secretary shall notify
the respondent in writing of the proposed action and of the opportunity
for a hearing. The notice shall:
(i) Specify, in a manner which is adequate to allow the respondent to
prepare its response, allegations with respect to a failure to comply
substantially with a provision of the Act;
(ii) State that the hearing procedures are governed by these rules;
(iii) State that a hearing may be requested within 10 days from
receipt of the notice and the name, address and telephone number of the
person to whom any request for hearing is to be addressed;
(iv) Specify the action which the Secretary proposes to take and that
the authority for this action is sections 104(d) and 111(a) of the Act;
(v) State that if respondent fails to request a hearing within the
time specified a decision by default will be rendered against the
respondent; and
(vi) Be sent to the respondent by certified mail, return receipt
requested.
(2) Initiation of hearing. The respondent shall be allowed at least
10 days from receipt of the notice within which to notify HUD of its
request for a hearing. If no request is received within the time
specified, the Secretary may proceed to make a finding on the issue of
compliance with the Act and to take the proposed action.
(3) Administrative Law Judge. Proceedings conducted under these
rules shall be presided over by an Administrative Law Judge (ALJ),
appointed as provided by section 11 of the Administrative Procedures Act
(5 U.S.C. 3105). The case shall be referred to the ALJ by the Secretary
at the time a hearing is requested. The ALJ shall promptly notify the
parties of the time and place at which the hearing will be held. The
ALJ shall conduct a fair and impartial hearing and take all action
necessary to avoid delay in the disposition of proceedings and to
maintain order. The ALJ shall have all powers necessary to those ends,
including but not limited to the power:
(i) To administer oaths and affirmations;
(ii) To issue subpoenas as authorized by law;
(iii) To rule upon offers of proof and receive relevant evidence;
(iv) To order or limit discovery prior to the hearing as the
interests of justice may require;
(v) To regulate the course of the hearing and the conduct of the
parties and their counsel;
(vi) To hold conferences for the settlement or simplification of the
issues by consent of the parties;
(vii) To consider and rule upon all procedural and other motions
appropriate in adjudicative proceedings; and
(viii) To make and file initial determinations.
(4) Ex parte communications. An ex parte communication is any
communication with an ALJ, direct or indirect, oral or written,
concerning the merits or procedures of any pending proceeding which is
made by a party in the absence of any other party. Ex parte
communications are prohibited except where the purpose and content of
the communication have been disclosed in advance or simultaneously to
all parties, or the communication is a request for information
concerning the status of the case. Any ALJ who receives an ex parte
communication which the ALJ knows or has reason to believe is
unauthorized shall promptly place the communication, or its substance,
in all files and shall furnish copies to all parties. Unauthorized ex
parte communications shall not be taken into consideration in deciding
any matter in issue.
(5) The hearing. All parties shall have the right to be represented
at the hearing by counsel. The ALJ shall conduct the proceedings in an
expeditious manner while allowing the parties to present all oral and
written evidence which tends to support their respective positions, but
the ALJ shall exclude irrelevant, immaterial or unduly repetitious
evidence. The Department has the burden of proof in showing by a
preponderance of the evidence that the respondent failed to comply
substantially with a provision of the Act. Each party shall be allowed
to cross-examine adverse witnessess and to rebut and comment upon
evidence presented by the other party. Evidence which is irrelevant,
immaterial or unduly repetitious shall be excluded by the ALJ. Hearings
shall be open to the public. So far as the orderly conduct of the
hearing permits, interested persons other than the parties may appear
and participate in the hearing.
(6) Transcripts. Hearings shall be recorded and transcribed only by
a reporter under the supervision of the ALJ. The original transcript
shall be a part of the record and shall constitute the sole official
transcript. Respondents and the public, at their own expense, may
obtain copies of the transcript.
(7) The ALJ's decision. At the conclusion of the hearing, the ALJ
shall give the parties a reasonable opportunity to submit proposed
findings and conclusions and supporting reasons therefor. Within 25
days after the conclusion of the hearing, the ALJ shall prepare a
written decision which includes a statement of findings and conclusions,
and the reasons or basis therefor, on all the material issues of fact,
law or discretion presented on the record and the appropriate sanction
or denial thereof. The decision shall be based on consideration of the
whole record or those parts thereof cited by a party and supported by
and in accordance with the reliable, probative, and substantial
evidence. A copy of the decision shall be furnished to the parties
immediately by certified mail, return receipt requested, and shall
include a notice that any requests for review by the Secretary must be
made in writing to the Secretary within 30 days of the receipt of the
decision.
(8) The record. The transcript of testimony and exhibits, together
with the decision of the ALJ and all papers and requests filed in the
proceeding, constitutes the exclusive record for decision and, on
payment of its reasonable cost, shall be made available to the parties.
After reaching his initial decision, the ALJ shall certify to the
complete record and forward the record to the Secretary.
(9) Review by the Secretary. The decision by the ALJ shall
constitute the final decision of the Secretary unless, within 30 days
after the receipt of the decision, either the respondent or the
Assistant Secretary for Community Planning and Development files an
exception and request for review by the Secretary. The excepting party
must transmit simultaneously to the Secretary and the other party the
request for review and the bases of the party's exceptions to the
findings of the ALJ. The other party shall be allowed 30 days from
receipt of the exception to provide the Secretary and the excepting
party with a written reply. The Secretary shall then review the record
of the case, including the exceptions and the reply. On the basis of
such review, the Secretary shall issue a written determination,
including a statement of the reasons or basis therefor, affirming,
modifying or revoking the decision of the ALJ. The Secretary's decision
shall be made and transmitted to the parties within 80 days after the
decision of the ALJ was furnished to the parties.
(10) Judicial review. The respondent may seek judicial review of the
Secretary's decision pursuant to section 111(c) of the Act.
24 CFR 570.499a Subpart J -- Grant Administration
Source: 53 FR 8058, Mar. 11, 1988, unless otherwise noted.
24 CFR 570.500 Definitions.
For the purposes of this subpart, the following terms shall apply:
(a) Program income means gross income received by the recipient or a
subrecipient directly generated from the use of CDBG funds. When
program income is generated by an activity that is only partially
assisted with CDBG funds, the income shall be prorated to reflect the
percentage of CDBG funds used.
(1) Program income includes, but is not limited to, the following:
(i) Proceeds from the disposition by sale or long-term lease of real
property purchased or improved with CDBG funds;
(ii) Proceeds from the disposition of equipment purchased with CDBG
funds;
(iii) Gross income from the use or rental of real or personal
property acquired by the recipient or by a subrecipient with CDBG funds,
less costs incidental to generation of the income;
(iv) Gross income from the use or rental of real property, owned by
the recipient or by a subrecipient, that was constructed or improved
with CDBG funds, less costs incidental to generation of the income;
(v) Payments of principal and interest on loans made using CDBG
funds;
(vi) Proceeds from the sale of loans made with CDBG funds;
(vii) Proceeds from sale of obligations secured by loans made with
CDBG funds;
(viii) Interest earned on funds held in a revolving fund account;
(ix) Interest earned on program income pending its disposition; and
(x) Funds collected through special assessments made against
properties owned and occupied by households not of low and moderate
income, where the assessments are used to recover all or part of the
CDBG portion of a public improvement.
(2) Program income does not include interest earned (except for
interest described in 570.513) on grant advances from the U.S.
Treasury. Such interest shall be remitted to HUD for transmittal to the
U.S. Treasury and will not be reallocated under section 106 (c) or (d)
of the Act. Examples of other receipts that are not considered program
income are proceeds from fundraising activities carried out by
subrecipients receiving CDBG assistance; funds collected through
special assessments used to recover the non-CDBG portion of a public
improvement; and proceeds from the disposition of real property
acquired or improved with CDBG funds when the disposition occurs after
the applicable time period specified in 570.503(b)(8) for
subrecipient-controlled property, or in 570.505 for
recipient-controlled property.
(b) Revolving fund means a separate fund (with a set of accounts that
are independent of other program accounts) established for the purpose
of carrying out specific activities which, in turn, generate payments to
the fund for use in carrying out the same activities.
(c) Subrecipient means a public or private nonprofit agency,
authority or organization, or an entity described in 570.204(c),
receiving CDBG funds from the recipient to undertake activities eligible
for assistance under subpart C. The term includes a public agency
designated by a metropolitan city or urban county to receive a loan
guarantee under subpart M, but does not include contractors providing
supplies, equipment, construction or services subject to the procurement
requirements in 24 CFR 85.36, or in Attachment O of OMB Circular A-110,
as applicable.
(53 FR 8058, Mar. 11, 1988, as amended at 53 FR 41331, Oct. 21, 1988)
24 CFR 570.501 Responsibility for grant administration.
(a) One or more public agencies, including existing local public
agencies, may be designated by the chief executive officer of the
recipient to undertake activities assisted by this part. A public
agency so designated shall be subject to the same requirements as are
applicable to subrecipients.
(b) The recipient is responsible for ensuring that CDBG funds are
used in accordance with all program requirements. The use of designated
public agencies, subrecipients, or contractors does not relieve the
recipient of this responsibility. The recipient is also responsible for
determining the adequacy of performance under subrecipient agreements
and procurement contracts, and for taking appropriate action when
performance problems arise, such as the actions described in 570.910.
Where a unit of general local government is participating with, or as
part of, an urban county, or as part of a metropolitan city, the
recipient is responsible for applying to the unit of general local
government the same requirements as are applicable to subrecipients.
24 CFR 570.502 Applicability of uniform administrative requirements.
(a) Recipients and subrecipients which are governmental entities
(including public agencies) shall comply with the requirements and
standards of OMB Circular No. A-87, ''Principles for Determining Costs
Applicable to Grants and Contracts with State, Local and Federally
recognized Indian Tribal Governments'', OMB Circular A-128, ''Audits of
State and Local Governments'' (implemented at 24 CFR part 44) and with
the following sections of 24 CFR part 85 ''Uniform Administrative
Requirements for Grants and Cooperative Agreements to State and Local
Governments'':
(1) Section 85.3, ''Definitions'';
(2) Section 85.6, ''Exceptions'';
(3) Section 85.12, ''Special grant or subgrant conditions for
'high-risk' grantees'';
(4) Section 85.20, ''Standards for financial management systems,''
except paragraph (a);
(5) Section 85.21, ''Payment,'' except as modified by 570.513;
(6) Section 85.22, ''Allowable costs'';
(7) Section 85.26, ''Non-federal audits'';
(8) Section 85.32, ''Equipment,'' except in all cases in which the
equipment is sold, the proceeds shall be program income;
(9) Section 85.33, ''Supplies'';
(10) Section 85.34, ''Copyrights'';
(11) Section 85.35, ''Subawards to debarred and suspended parties'';
(12) Section 85.36, ''Procurement,'' except paragraph (a);
(13) Section 85.37, ''Subgrants'';
(14) Section 85.40, ''Monitoring and reporting program performance,''
except paragraphs (b) through (d) and paragraph (f);
(15) Section 85.41, ''Financial reporting,'' except paragraphs (a),
(b), and (e);
(16) Section 85.42, ''Retention and access requirements for
records'';
(17) Section 85.43, ''Enforcement'';
(18) Section 85.44, ''Termination for convenience'';
(19) Section 85.51 ''Later disallowances and adjustments'' and
(20) Section 85.52, ''Collection of amounts due.''
(b) Subrecipient except subrecipients which are governmental
entities, shall comply with the requirements and standards of OMB
Circular No. A-122, ''Cost Principles for Non Profit Organizations'' or
OMB Circular No. A-21, ''Cost Principles for Educational
Institutions,'' as applicable, and with the following Attachments to OMB
Circular No. A-110:
(1) Attachment A, ''Cash Depositories'', except for paragraph 4
concerning deposit insurance;
(2) Attachment B, ''Bonding and Insurance'';
(3) Attachment C, ''Retention and Custodial Requirements for
Records'', except that in lieu of the provisions in paragraph 4 , the
retention period for records pertaining to individual CDBG activities
starts from the date of submission of the annual performance and
evaluation report, as prescribed in 570.507, in which the specific
activity is reported on for the final time;
(4) Attachment F, ''Standards for Financial Management Systems'';
(5) Attachment H, ''Monitoring and Reporting Program Performance'',
Paragraph 2;
(6) Attachment N, ''Property Management Standards'', except for
paragraph 3 concerning the standards for real property, and except that
paragraphs 6 and 7 are modified so that --
(i) In all cases in which personal property is sold, the proceeds
shall be program income, and
(ii) Personal property not needed by the subrecipient for CDBG
activities shall be transferred to the recipient for the CDBG program or
shall be retained after compensating the recipient; and
(7) Attachment O, ''Procurement Standards.''
24 CFR 570.503 Agreements with subrecipients.
(a) Before disbursing any CDBG funds to a subrecipient, the recipient
shall sign a written agreement with the subrecipient. The agreement
shall remain in effect during any period that the subrecipient has
control over CDBG funds, including program income.
(b) At a minimum, the written agreement with the subrecipient shall
include provisions concerning the following following items:
(1) Statement of work. The agreement shall include a description of
the work to be performed, a schedule for completing the work, and a
budget. These items shall be in sufficient detail to provide a sound
basis for the recipient effectively to monitor performance under the
agreement.
(2) Records and reports. The recipient shall specify in the
agreement the particular records the subrecipient must maintain and the
particular reports the subrecipient must submit in order to assist the
recipient in meeting its recordkeeping and reporting requirements.
(3) Program income. The agreement shall include the program income
requirements set forth in 570.504(c).
(4) Uniform administrative requirements. The agreement shall require
the subrecipient to comply with applicable uniform administrative
requirements, as described in 570.502.
(5) Other program requirements. The agreement shall require the
subrecipient to carry out each activity in compliance with all Federal
laws and regulations described in subpart K of these regulations, except
that:
(i) The subrecipient does not assume the recipient's environmental
responsibilities described at 570.604; and
(ii) The subrecipient does not assume the recipient's responsibility
for initiating the review process under the provisions of 24 CFR part
52.
(6) Conditions for religious organizations. Where applicable, the
conditions prescribed by HUD for the use of CDBG funds by religious
organizations shall be included in the agreement.
(7) Suspension and termination. The agreement shall specify that, in
accordance with 24 CFR 85.43, suspension or termination may occur if the
subrecipient materially fails to comply with any term of the award, and
that the award may be terminated for convenience in accordance with 24
CFR 85.44.
(8) Reversion of assets. The agreement shall specify that upon its
expiration the subrecipient shall transfer to the recipient any CDBG
funds on hand at the time of expiration and any accounts receivable
attributable to the use of CDBG funds. It shall also include provisions
designed to ensure that any real property under the subrecipient's
control that was acquired or improved in whole or in part with CDBG
funds in excess of $25,000 is either:
(i) Used to meet one of the national objectives in 570.208 (formerly
570.901) until five years after expiration of the agreement, or for
such longer period of time as determined to be appropriate by the
recipient; or
(ii) Disposed of in a manner that results in the recipient's being
reimbursed in the amount of the current fair market value of the
property less any portion of the value attributable to expenditures of
non-CDBG funds for acquisition of, or improvement to, the property.
(Reimbursement is not required after the period of time specified in
paragraph (b)(8)(i) of this section.)
(53 FR 8058, Mar. 11, 1988, as amended at 53 FR 41331, Oct. 21, 1988)
24 CFR 570.504 Program income.
(a) Recording program income. The receipt and expenditure of program
income as defined in 570.500(a) shall be recorded as part of the
financial transactions of the grant program.
(b) Disposition of program income received by recipients. (1)
Program income received before grant closeout may be retained by the
recipient if the income is treated as additional CDBG funds subject to
all applicable requirements governing the use of CDBG funds.
(2) If the recipient chooses to retain program income, that income
shall affect withdrawals of grant funds from the U.S. Treasury as
follows:
(i) Program income in the form of repayments to, or interest earned
on, a revolving fund as defined in 570.500(b) shall be substantially
disbursed from the fund before additional cash withdrawals are made from
the U.S. Treasury for the same activity. (This rule does not prevent a
lump sum disbursement to finance the rehabilitation of privately owned
properties as provided for in 570.513.)
(ii) Substantially all other program income shall be disbursed for
eligible activities before additional cash withdrawals are made from the
U.S. Treasury.
(3) Program income on hand at the time of closeout shall continue to
be subject to the eligibility requirements in subpart C and all other
applicable provisions of this part until it is expended.
(4) Unless otherwise provided in any grant closeout agreement, and
subject to the requirements of paragraph (b)(5) of this section, income
received after closeout shall not be governed by the provisions of this
part, except that, if at the time of closeout the recipient has another
ongoing CDBG grant received directly from HUD, funds received after
closeout shall be treated as program income of the ongoing grant
program.
(5) If the recipient does not have another ongoing grant received
directly from HUD at the time of closeout, income received after
closeout from the disposition of real property or from loans outstanding
at the time of closeout shall not be governed by the provisions of this
part, except that such income shall be used for activities that meet one
of the national objectives in 570.901 and the eligibility requirements
described in section 105 of the Act.
(c) Disposition of program income received by subrecipients. The
written agreement between the recipient and the subrecipient, as
required by 570.503, shall specify whether program income received is
to be returned to the recipient or retained by the subrecipient. Where
program income is to be retained by the subrecipient, the agreement
shall specify the activities that will be undertaken with the program
income and that all provisions of the written agreement shall apply to
the specified activities. When the subrecipient retains program income,
transfers of grant funds by the recipient to the subrecipient shall be
adjusted according to the principles described in paragraphs (b)(2) (i)
and (ii) of this section. Any program income on hand when the agreement
expires, or received after the agreement's expiration, shall be paid to
the recipient as required by 570.503(b)(8).
(d) Disposition of certain program income received by urban counties.
Program income derived from urban county program activities undertaken
by or within the jurisdiction of a unit of general local government
which thereafter terminates its participation in the urban county shall
continue to be program income of the urban county. The urban county may
transfer the program income to the unit of general local government,
upon its termination of urban county participation, provided that the
unit of general local government has become an entitlement grantee and
agrees to use the program income in its own CDBG entitlement program.
24 CFR 570.505 Use of real property.
The standards described in this section apply to real property within
the recipient's control which was acquired or improved in whole or in
part using CDBG funds in excess of $25,000. These standards shall apply
from the date CDBG funds are first spent for the property until five
years after closeout of an entitlement recipient's participation in the
entitlement CDBG program or, with respect to other recipients, until
five years after the closeout of the grant from which the assistance to
the property was provided.
(a) A recipient may not change the use or planned use of any such
property (including the beneficiaries of such use) from that for which
the acquisition or improvement was made unless the recipient provides
affected citizens with reasonable notice of, and opportunity to comment
on, any proposed change, and either:
(1) The new use of such property qualifies as meeting one of the
national objectives in 570.208 (formerly 570.901) and is not a
building for the general conduct of government; or
(2) The requirements in paragraph (b) of this section are met.
(b) If the recipient determines, after consultation with affected
citizens, that it is appropriate to change the use of the property to a
use which does not qualify under paragraph (a)(1) of this section, it
may retain or dispose of the property for the changed use if the
recipient's CDBG program is reimbursed in the amount of the current fair
market value of the property, less any portion of the value attributable
to expenditures of non-CDBG funds for acquisition of, and improvements
to, the property.
(c) If the change of use occurs after closeout, the provisions
governing income from the disposition of the real property in
570.504(b) (4) or (5), as applicable, shall apply to the use of funds
reimbursed.
(d) Following the reimbursement of the CDBG program in accordance
with paragraph (b) of this section, the property no longer will be
subject to any CDBG requirements.
(53 FR 8058, Mar. 11, 1988, as amended at 53 FR 41331, Oct. 21, 1988)
24 CFR 570.506 Records to be maintained.
Each recipient shall establish and maintain sufficient records to
enable the Secretary to determine whether the recipient has met the
requirements of this part. At a minimum, the following records are
needed:
(a) Records providing a full description of each activity assisted
(or being assisted) with CDBG funds, including its location (if the
activity has a geographical locus), the amount of CDBG funds budgeted,
obligated and expended for the activity, and the provision in subpart C
under which it is eligible.
(b) Records demonstrating that each activity undertaken meets one of
the criteria set forth in 570.208. (Where information on income by
family size is required, the recipient may substitute evidence
establishing that the person assisted qualifies under another program
having income qualification criteria at least as restrictive as that
used in the definitions of ''low and moderate income person'' and ''low
and moderate income household'' (as applicable) at 570.3; or the
recipient may substitute a copy of a verifiable certification from the
assisted person that his or her family income does not exceed the
applicable income limit established in accordance with 570.3; or the
recipient may substitute a notice that the assisted person is a referral
from a state, county or local employment agency or other entity that
agrees to refer individuals it determines to be low and moderate income
persons based on HUD's criteria and agrees to maintain documentation
supporting these determinations.) Such records shall include the
following information:
(1) For each activity determined to benefit low and moderate income
persons, the income limits applied and the point in time when the
benefit was determined.
(2) For each activity determined to benefit low and moderate income
persons based on the area served by the activity:
(i) The boundaries of the service area;
(ii) The income characteristics of families and unrelated individuals
in the service area; and
(iii) If the percent of low and moderate income persons in the
service area is less than 51 percent, data showing that the area
qualifies under the exception criteria set forth at 570.208(a)(1)(ii);
(3) For each activity determined to benefit low and moderate income
persons because the activity involves a facility or service designed for
use by a limited clientele consisting exclusively or predominantly of
low and moderate income persons:
(i) Documentation establishing that the facility or service is
designed for and used by senior citizens, handicapped persons, battered
spouses, abused children, the homeless, illiterate persons, or migrant
farm workers, for which the regulations provide presumptive benefit to
low and moderate income persons; or
(ii) Documentation describing how the nature and, if applicable, the
location of the facility or service establishes that it is used
predominantly by low and moderate income persons; or
(iii) Data showing the size and annual income of the family of each
person receiving the benefit.
(4) For each activity carried out for the purpose of providing or
improving housing which is determined to benefit low and moderate income
persons:
(i) A copy of a written agreement with each landlord or developer
receiving CDBG assistance indicating the total number of dwelling units
in each multifamily structure assisted and the number of those units
which will be occupied by low and moderate income households after
assistance;
(ii) The total cost of the activity, including both CDBG and non-CDBG
funds.
(iii) For each unit occupied by a low and moderate income household,
the size and income of the household;
(iv) For rental housing only:
(A) The rent charged (or to be charged) after assistance for each
dwelling unit in each structure assisted; and
(B) Such information as necessary to show the affordability of units
occupied (or to be occupied) by low and moderate income households
pursuant to criteria established and made public by the recipient;
(v) For each property acquired on which there are no structures,
evidence of commitments ensuring that the criteria in 570.208(a)(3)
will be met when the structures are built; and
(vi) Where applicable, records demonstrating that the activity
qualifies under the special conditions at 570.208(a)(3)(i).
(5) For each activity determined to benefit low and moderate income
persons based on the creation of jobs, the recipient shall provide the
documentation described in either paragraph (b)(5) (i) or (ii) of this
section.
(i) Where the recipient chooses to document that at least 51 percent
of the jobs will be available to low and moderate income persons,
documentation for each assisted business shall include:
(A) A copy of a written agreement containing:
(1) A commitment by the business that it will make at least 51
percent of the jobs available to low and moderate income persons and
will provide training for any of those jobs requiring special skills or
education;
(2) A listing by job title of the permanent jobs to be created
indicating which jobs will be available to low and moderate income
persons, which jobs require special skills or education, and which jobs
are part-time, if any; and
(3) A description of actions to be taken by the recipient and
business to ensure that low and moderate income persons receive first
consideration for those jobs; and
(B) A listing by job title of the permanent jobs filled, and which
jobs of those were available to low and moderate income persons, and a
description of how first consideration was given to such persons for
those jobs. The description shall include what hiring process was used;
which low and moderate income persons were interviewed for a particular
job; and which low and moderate income persons were hired.
(ii) Where the recipient chooses to document that at least 51 percent
of the jobs will be held by low and moderate income persons,
documentation for each assisted business shall include:
(A) A copy of a written agreement containing:
(1) A commitment by the business that at least 51 percent of the
jobs, on a full-time equivalent basis, will be held by low and moderate
income persons; and
(2) A listing by job title of the permanent jobs to be created,
identifying which are part-time, if any;
(B) A listing by job title of the permanent jobs filled and which
jobs were initially held by low and moderate income persons; and
(C) For each such low and moderate income person hired, the size and
annual income of the person's family prior to the person being hired for
the job.
(6) For each activity determined to benefit low and moderate income
persons based on the retention of jobs:
(i) Evidence that in the absence of CDBG assistance jobs would be
lost;
(ii) For each business assisted, a listing by job title of permanent
jobs retained, indicating which of those jobs are part-time and (where
it is known) which are held by low and moderate income persons at the
time the CDBG assistance is provided. Where applicable, identification
of any of the retained jobs (other than those known to be held by low
and moderate income persons) which are projected to become available to
low and moderate income persons through job turnover within two years of
the time CDBG assistance is provided. Information upon which the job
turnover projections were based shall also be included in the record;
(iii) For each retained job claimed to be held by a low and moderate
income person, information on the size and annual income of the person's
family;
(iv) For jobs claimed to be available to low and moderate income
persons based on job turnover, a description covering the items required
for ''available to'' jobs in paragraph (b)(5) of this section; and
(v) Where jobs were claimed to be available to low and moderate
income persons through turnover, a listing of each job which has turned
over to date, indicating which of those jobs were either taken by, or
available to, low and moderate income persons. For jobs made available,
a description of how first consideration was given to such persons for
those jobs shall also be included in the record.
(7) For each activity determined to aid in the prevention or
elimination of slums or blight based on addressing one or more of the
conditions which qualified an area as a slum or blighted area:
(i) The boundaries of the area; and
(ii) A description of the conditions which qualified the area at the
time of its designation in sufficient detail to demonstrate how the area
met the criteria in 570.208(b)(1).
(8) For each residential rehabilitation activity determined to aid in
the prevention or elimination of slums or blight in a slum or blighted
area:
(i) The local definition of ''substandard'';
(ii) A pre-rehabilitation inspection report describing the
deficiencies in each structure to be rehabilitated; and
(iii) Details and scope of CDBG assisted rehabilitation, by
structure.
(9) For each activity determined to aid in the prevention or
elimination of slums or blight based on the elimination of specific
conditions of blight or physical decay not located in a slum or blighted
area:
(i) A description of the specific condition of blight or physical
decay treated; and
(ii) For rehabilitation carried out under this category, a
description of the specific conditions detrimental to public health and
safety which were identified and the details and scope of the CDBG
assisted rehabilitation by structure.
(10) For each activity determined to aid in the prevention or
elimination of slums or blight based on addressing slums or blight in an
urban renewal area, a copy of the Urban Renewal Plan, as in effect at
the time the activity is carried out, including maps and supporting
documentation.
(11) For each activity determined to meet a community development
need having a particular urgency:
(i) Documentation concerning the nature and degree of seriousness of
the condition requiring assistance;
(ii) Evidence that the recipient certified that the CDBG activity was
designed to address the urgent need;
(iii) Information on the timing of the development of the serious
condition; and
(iv) Evidence confirming that other financial resources to alleviate
the need were not available.
(c) Records which demonstrate that the recipient has made the
determinations required as a condition of eligibility of certain
activities, as prescribed in 570.201(f), 570.201(i), 570.202(b)(3),
570.203(b), 570.204(a), and 570.206(f).
(d) Records which demonstrate compliance with 570.505 regarding any
change of use of real property acquired or improved with CDBG
assistance.
(e) Records which demonstrate compliance with the citizen
participation requirements prescribed in section 104(a)(3) of the Act,
and in 570.301(b) and 570.305 for entitlement recipients or 570.431
for HUD-administered small cities recipients.
(f) Records which demonstrate compliance with the requirements in
570.606 regarding acquisition, displacement, relocation, and replacement
housing.
(g) Fair housing and equal opportunity records containing:
(1) Documentation of the actions the recipient has carried out with
its housing and community development and other resources to remedy or
ameliorate any conditions limiting fair housing choice in the
recipient's community, and documentation of any other official actions
the recipient has taken which demonstrate its support for fair housing,
such as development of a fair housing analysis described in 570.904(c).
(2) Data on the extent to which each racial and ethnic group and
single-headed households (by gender of household head) have applied for,
participated in, or benefited from, any program or activity funded in
whole or in part with CDBG funds. Such information shall be used only
as a basis for further investigation as to compliance with
nondiscrimination requirements. No recipient is required to attain or
maintain any particular statistical measure by race, ethnicity, or
gender in covered programs.
(3) Data on employment in each of the recipient's operating units
funded in whole or in part with CDBG funds, with such data maintained in
the categories prescribed on the Equal Employment Opportunity
Commission's EEO-4 form; and documentation of any actions undertaken to
assure equal employment opportunities to all persons regardless of race,
color, national origin, sex or handicap in operating units funded in
whole or in part under this part.
(4) Data indicating the race and ethnicity of households (and gender
of single heads of households) displaced as a result of CDBG funded
activities, together with the address and census tract of the housing
units to which each displaced household relocated. Such information
shall be used only as a basis for further investigation as to compliance
with nondiscrimination requirements. No recipient is required to attain
or maintain any particular statistical measure by race, ethnicity, or
gender in covered programs.
(5) Documentation of actions undertaken to meet the requirements of
570.607(b) which implements section 3 of the Housing Development Act of
1968, as amended (12 U.S.C. 1701U) relative to the hiring and training
of low and moderate income persons and the use of local businesses.
(6) Data indicating the racial/ethnic character of each business
entity receiving a contract or subcontract of $25,000 or more paid, or
to be paid, with CDBG funds, data indicating which of those entities are
women's business enterprises as defined in Executive Order 12138, the
amount of the contract or subcontract, and documentation of recipient's
affirmative steps to assure that minority business and women's business
enterprises have an equal opportunity to obtain or compete for contracts
and subcontracts as sources of supplies, equipment, construction and
services. Such affirmative steps may include, but are not limited to,
technical assistance open to all businesses but designed to enhance
opportunities for these enterprises and special outreach efforts to
inform them of contract opportunities. Such steps shall not include
preferring any business in the award of any contract or subcontract
solely or in part on the basis of race or gender.
(7) Documentation of the affirmative action measures the recipient
has taken to overcome prior discrimination, where the courts or HUD have
found that the recipient has previously discriminated against persons on
the ground of race, color, national origin or sex in administering a
program or activity funded in whole or in part with CDBG funds.
(h) Financial records, in accordance with the applicable requirements
listed in 570.502.
(i) Agreements and other records related to lump sum disbursements to
private financial institutions for financing rehabilitation as
prescribed in 570.513; and
(j) Records required to be maintained in accordance with other
applicable laws and regulations set forth in subpart K of this part.
(Approved by the Office of Management and Budget under control number
2506-0077)
(53 FR 34454, Sept. 6, 1988; 53 FR 41330, Oct. 21, 1988)
24 CFR 570.507 Reports.
(a) Performance and evaluation report -- (1) Content. Each
performance and evaluation report must contain completed copies of all
forms and narratives prescribed by the Secretary, including a summary of
the citizen comments received on the report, as prescribed in paragraph
(a)(3) of this section.
(2) Timing -- (i) Entitlement grants. Each entitlement grant
recipient shall submit a performance and evaluation report:
(A) No later than 90 days after the completion of the most recent
program year showing the status of all activities as of the end of the
program year;
(B) No later than October 31 each year showing housing assistance
performance as of the end of the Federal fiscal year; and
(C) No later than 90 days after the criteria for grant closeout, as
described in 570.509(a), have been met.
(ii) HUD-administered small cities grants. Each small cities
recipient shall submit a performance and evaluation report on each
grant:
(A) No later than 12 months after the date of the grant award and
annually thereafter on the date of the award until completion of the
activities funded under the grant; and
(B) No later than 90 days after the criteria for grant closeout, as
described in 570.509(a), have been met. If HUD determines that the
previous report adequately describes project results, HUD will notify
the recipient that a final report is not necessary.
(3) Citizen comments on the report. Each recipient shall make copies
of the performance and evaluation report available to its citizens in
sufficient time to permit the citizens to comment on the report prior to
its submission to HUD. Each recipient may determine the specific manner
and times the report will be made available to citizens consistent with
the preceding sentence.
(b) Equal employment opportunity reports. Recipients of entitlement
grants or HUD-administered small cities grants shall submit to HUD each
year a report (HUD/EEO-4) on recipient employment containing data as of
June 30.
(c) Minority business enterprise reports. Recipients of entitlement
grants, HUD-administered small cities grants or Urban Development Action
Grants shall submit to HUD, by April 30, a report on contracts and
subcontract activity during the first half of the fiscal year and by
October 31 a report on such activity during the second half of the year.
(d) Other reports. Recipients may be required to submit such other
reports and information as HUD determines are necessary to carry out its
responsibilities under the Act or other applicable laws.
(Approved by the Office of Management and Budget under control
numbers 2506-0077 for paragraph (a) and 2529-0008 for paragraph (b) and
2506-0066 for paragraph (c))
(53 FR 34456, Sept. 6, 1988)
24 CFR 570.508 Public access to program records.
Notwithstanding 24 CFR 85.42(f), recipients shall provide citizens
with reasonable access to records regarding the past use of CDBG funds,
consistent with applicable State and local laws regarding privacy and
obligations of confidentiality.
24 CFR 570.509 Grant closeout procedures.
(a) Criteria for closeout. A grant will be closed out when HUD
determines, in consultation with the recipient, that the following
criteria have been met:
(1) All costs to be paid with CDBG funds have been incurred, with the
exception of closeout costs (e.g., audit costs) and costs resulting from
contingent liabilities described in the closeout agreement pursuant to
paragraph (c) of this section. Contingent liabilities include, but are
not limited to, third-party claims against the recipient, as well as
related administrative costs.
(2) With respect to activities (such as rehabilitation of privately
owned properties) which are financed by means of escrow accounts, loan
guarantees, or similar mechanisms, the work to be assisted with CDBG
funds (but excluding program income) has actually been completed.
(3) Other responsibilities of the recipient under the grant agreement
and applicable laws and regulations appear to have been carried out
satisfactorily or there is no further Federal interest in keeping the
grant agreement open for the purpose of securing performance.
(b) Closeout actions. (1) Within 90 days of the date it is
determined that the criteria for closeout have been met, the recipient
shall submit to HUD a copy of the final performance and evaluation
report described in 570.507. If an acceptable report is not submitted,
an audit of the recipient's grant activities may be conducted by HUD.
(2) Based on the information provided in the performance report and
other relevant information, HUD, in consultation with the recipient,
will prepare a closeout agreement in accordance with paragraph (c) of
this section.
(3) HUD will cancel any unused portion of the awarded grant, as shown
in the signed grant closeout agreement. Any unused grant funds
disbursed from the U.S. Treasury which are in the possession of the
recipient shall be refunded to HUD.
(4) Any costs paid with CDBG funds which were not audited previously
shall be subject to coverage in the recipient's next single audit
performed in accordance with 24 CFR part 44. The recipient may be
required to repay HUD any disallowed costs based on the results of the
audit, or on additional HUD reviews provided for in the closeout
agreement.
(c) Closeout agreement. Any obligations remaining as of the date of
the closeout shall be covered by the terms of a closeout agreement. The
agreement shall be prepared by the HUD field office in consultation with
the recipient. The agreement shall identify the grant being closed out,
and include provisions with respect to the following:
(1) Identification of any closeout costs or contingent liabilities
subject to payment with CDBG funds after the closeout agreement is
signed;
(2) Identification of any unused grant funds to be canceled by HUD;
(3) Identification of any program income on deposit in financial
institutions at the time the closeout agreement is signed:
(4) Description of the recipient's responsibility after closeout for:
(i) Compliance with all program requirements, certifications and
assurances in using program income on deposit at the time the closeout
agreement is signed and in using any other remaining CDBG funds
available for closeout costs and contingent liabilities;
(ii) Use of real property assisted with CDBG funds in accordance with
the principles described in 570.505;
(iii) Compliance with requirements governing program income received
subsequent to grant closeout, as described in 570.504(b) (4) and (5);
and
(iv) Ensuring that flood insurance coverage for affected property
owners is maintained for the mandatory period;
(5) Other provisions appropriate to any special circumstances of the
grant closeout, in modification of or in addition to the obligations in
paragraphs (c) (1) through (4) of this section. The agreement shall
authorize monitoring by HUD, and shall provide that findings of
noncompliance may be taken into account by HUD, as unsatisfactory
performance of the recipient, in the consideration of any future grant
award under this part.
(d) Status of comprehensive housing affordability strategy after
closeout. Unless otherwise provided in a closeout agreement, the
Comprehensive Housing Affordability Strategy (CHAS) will remain in
effect after closeout until the expiration of the fiscal year covered by
the last approved CHAS.
(e) Termination of grant for convenience. Grant assistance provided
under this part may be terminated for convenience in whole or in part
before the completion of the assisted activities, in accordance with the
provisions of 24 CFR 85.44. The recipient shall not incur new
obligations for the terminated portions after the effective date, and
shall cancel as many outstanding obligations as possible. HUD shall
allow full credit to the recipient for those portions of obligations
which could not be canceled and which had been properly incurred by the
recipient in carrying out the activities before the termination. The
closeout policies contained in this section shall apply in such cases,
except where the approved grant is terminated in its entirety.
Responsibility for the environmental review to be performed under 24 CFR
part 50 or 24 CFR part 58, as applicable, shall be determined as part of
the closeout process.
(f) Termination for cause. In cases in which the Secretary
terminates the recipient's grant under the authority of subpart O of
this part, or under the terms of the grant agreement, the closeout
policies contained in this section shall apply, except where the
approved grant is cancelled in its entirety. The provisions in 24 CFR
85.43(c) on the effects of termination shall also apply. HUD shall
determine whether an environmental assessment or finding of
inapplicability is required, and if such review is required, HUD shall
perform it in accordance with 24 CFR part 50.
(53 FR 8058, Mar. 11, 1988, as amended at 56 FR 56128, Oct. 31, 1991)
24 CFR 570.510 Transferring projects from urban counties to
metropolitan cities.
Section 106(c)(3) of the Act authorizes the Secretary to transfer
unobligated grant funds from an urban county to a new metropolitan city,
provided: the city was an included unit of general local government in
the urban county immediately before its qualification as a metropolitan
city; the funds to be transferred were received by the county before
the qualification of the city as a metropolitan city; the funds to be
transferred had been programmed by the urban county for use in the city
before such qualification; and the city and county agree to transfer
responsibility for the administration of the funds being transferred
from the county's letter of credit to the city's letter of credit. The
following rules apply to the transfer of responsibility for an activity
from an urban county to the new metropolitan city.
(a) The urban county and the metropolitan city must execute a legally
binding agreement which shall specify:
(1) The amount of funds to be transferred from the urban county's
letter of credit to the metropolitan city's letter of credit;
(2) The activities to be carried out by the city with the funds being
transferred;
(3) The county's responsibility for all expenditures and unliquidated
obligations associated with the activities before the time of transfer,
including a statement that responsibility for all audit and monitoring
findings associated with those expenditures and obligations shall remain
with the county;
(4) The responsibility of the metropolitan city for all other audit
and monitoring findings;
(5) How program income (if any) from the activities specified shall
be divided between the metropolitan city and the urban county; and
(6) Such other provisions as may be required by HUD.
(b) Upon receipt of a request for the transfer of funds from an urban
county to a metropolitan city and a copy of the executed agreement, HUD,
in consultation with the Department of the Treasury, shall establish a
date upon which the funds shall be transferred from the letter of credit
of the urban county to the letter of credit of the metropolitan city,
and shall take all necessary actions to effect the requested transfer of
funds.
(c) HUD shall notify the metropolitan city and urban county of any
special audit and monitoring rules which apply to the transferred funds
when the date of the transfer is communicated to the city and the
county.
24 CFR 570.511 Use of escrow accounts for rehabilitation of privately
owned residential property.
(a) Limitations. A recipient may withdraw funds from its letter of
credit for immediate deposit into an escrow account for use in funding
loans and grants for the rehabilitation of privately owned residential
property under 570.202(a)(1). The following additional limitations
apply to the use of escrow accounts for residential rehabilitation loans
and grants closed after September 7, 1990:
(1) The use of escrow accounts under this section is limited to loans
and grants for the rehabilitation of primarily residential properties
containing no more than four dwelling units (and accessory
neighborhood-scale non-residential space within the same structure, if
any, e.g., a store front below a dwelling unit).
(2) An escrow account shall not be used unless the contract between
the property owner and the contractor selected to do the rehabilitation
work specifically provides that payment to the contractor shall be made
through an escrow account maintained by the recipient, by a subrecipient
as defined in 570.500(c), by a public agency designated under
570.501(a), or by an agent under a procurement contact governed by the
requirements of 24 CFR 85.36. No deposit to the escrow account shall be
made until after the contract has been executed between the property
owner and the rehabilitation contractor.
(3) All funds withdrawn under this section shall be deposited into
one interest earning account with a financial institution. Separate
bank accounts shall not be established for individual loans and grants.
(4) The amount of funds deposited into an escrow account shall be
limited to the amount expected to be disbursed within 10 working days
from the date of deposit. If the escrow account, for whatever reason,
at any time contains funds exceeding 10 days cash needs, the grantee
immediately shall transfer the excess funds to its program account. In
the program account, the excess funds shall be treated as funds
erroneously drawn in accordance with the requirements of U.S. Treasury
Financial Manual, paragraph 6-2075.30.
(5) Funds deposited into an escrow account shall be used only to pay
the actual costs of rehabilitation incurred by the owner under the
contract with a private contractor. Other eligible costs related to the
rehabilitation loan or grant, e.g., the recipient's administrative costs
under 570.206 or rehabilitation services costs under 570.202(b)(9),
are not permissible uses of escrowed funds. Such other eligible
rehabilitation costs shall be paid under normal CDBG payment procedures
(e.g., from withdrawals of grant funds under the recipient's letter of
credit with the Treasury).
(b) Interest. Interest earned on escrow accounts established in
accordance with this section, less any service charges for the account,
shall be remitted to HUD at least quarterly but not more frequently than
monthly. Interest earned on escrow accounts is not required to be
remitted to HUD to the extent the interest is attributable to the
investment of program income.
(c) Remedies for noncompliance. If HUD determines that a recipient
has failed to use an escrow account in accordance with this section, HUD
may, in addition to imposing any other sanctions provided for under this
part, require the recipient to discontinue the use of escrow accounts,
in whole or in part.
(55 FR 32369, Aug. 8, 1990)
570.512 (Reserved)
24 CFR 570.513 Lump sum drawdown for financing of property
rehabilitation activities.
Subject to the conditions prescribed in this section, recipients may
draw funds from the letter of credit in a lump sum to establish a
rehabilitation fund in one or more private financial institutions for
the purpose of financing the rehabilitation of privately owned
properties. The fund may be used in conjunction with various
rehabilitation financing techniques, including loans, interest
subsidies, loan guarantees, loan reserves, or such other uses as may be
approved by HUD consistent with the objectives of this section. The
fund may also be used for making grants, but only for the purpose of
leveraging non-CDBG funds for the rehabilitaton of the same property.
(a) Limitation on drawdown of grant funds. (1) The funds that a
recipient deposits to a rehabilitation fund shall not exceed the grant
amount that the recipient reasonably expects will be required, together
with anticipated program income from interest and loan repayments, for
the rehabilitation activities during the period specified in the
agreement to undertake activities, based on either:
(i) Prior level of rehabilitation activity; or
(ii) Rehabilitation staffing and management capacity during the
period specified in the agreement to undertake activities.
(2) No grant funds may be deposited under this section solely for the
purpose of investment, notwithstanding that the interest or other income
is to be used for the rehabilitation activities.
(3) The recipient's rehabilitation program administrative costs and
the administrative costs of the financial institution may not be funded
through lump sum drawdown. Such costs must be paid from periodic letter
of credit withdrawals in accordance with standard procedures or from
program income, other than program income generated by the lump sum
distribution.
(b) Standards to be met. The following standards shall apply to all
lump sum drawdowns of CDBG funds for rehabilitation:
(1) Eligible rehabilitation activities. The rehabilitation fund
shall be used to finance the rehabilitation of privately owned
properties eligible under the general policies in 570.200 and the
specific provisions of either 570.202, including the acquisition of
properties for rehabilitation, or 570.203.
(2) Requirements for agreement. The recipient shall execute a
written agreement with one or more private financial institutions for
the operation of the rehabilitation fund. The agreement shall specify
the obligations and responsibilities of the parties, the terms and
conditions on which CDBG funds are to be deposited and used or returned,
the anticipated level of rehabilitation activities by the financial
institution, the rate of interest and other benefits to be provided by
the financial institution in return for the lump sum deposit, and such
other terms as are necessary for compliance with the provisions of this
section. Upon execution of the agreement, a copy must be provided to
the HUD field office for its record and use in monitoring. Any
modifications made during the term of the agreement must also be
provided to HUD.
(3) Period to undertake activities. The agreement must provide that
the rehabilitation fund may only be used for authorized activities
during a period of no more than two years. The lump sum deposit shall
be made only after the agreement is fully executed.
(4) Time limit on use of deposited funds. Use of the deposited funds
for rehabilitation financing assistance must start (e.g., first loan
must be made, subsidized or guaranteed) within 45 days of the deposit.
In addition, substantial disbursements from the fund must occur within
180 days of the receipt of the deposit. (Where CDBG funds are used as a
guarantee, the funds that must be substantially disbursed are the
guaranteed funds.) For a recipient with an agreement specifying two
years to undertake activities, the disbursement of 25 percent of the
fund (deposit plus any interest earned) within 180 days will be regarded
as meeting this requirement. If a recipient with an agreement
specifying two years to undertake activities determines that it has had
substantial disbursement from the fund within the 180 days although it
had not met this 25 percent threshold, the justification for the
recipient's determination shall be included in the program file. Should
use of deposited funds not start within 45 days, or substantial
disbursement from such fund not occur within 180 days, the recipient may
be required by HUD to return all or part of the deposited funds to the
recipient's letter of credit.
(5) Progam activity. Recipients shall review the level of program
activity on a yearly basis. Where activity is substantially below that
anticipated, program funds shall be returned to the recipient's letter
of credit.
(6) Termination of agreement. In the case of substantial failure by
a private financial institution to comply with the terms of a lump sum
drawdown agreement, the recipient shall terminate its agreement, provide
written justification for the action, withdraw all unobligated deposited
funds from the private financial institution, and return the funds to
the recipient's letter of credit.
(7) Return of unused deposits. At the end of the period specified in
the agreement for undertaking activities, all unobligated deposited
funds shall be returned to the recipient's letter of credit unless the
recipient enters into a new agreement conforming to the requirements of
this section. In addition, the recipient shall reserve the right to
withdraw any unobligated deposited funds required by HUD in the exercise
of corrective or remedial actions authorized under 570.910(b),
570.911, 570.912 or 570.913.
(8) Rehabilitation loans made with non-CDBG funds. If the deposited
funds or program income derived from deposited funds are used to
subsidize or guarantee repayment of rehabilitation loans made with
non-CDBG funds, or to provide a supplemental loan or grant to the
borrower of the non-CDBG funds, the rehabilitation activities are
considered to be CDBG-assisted activities subject to the requirements
applicable to such activities, except that repayment of non-CDBG funds
shall not be treated as program income.
(9) Provision of consideration. In consideration for the lump sum
deposit by the recipient in a private financial institution, the deposit
must result in appropriate benefits in support of the recipient's local
rehabilitation program. Minimum requirements for such benefits are:
(i) Grantees shall require the financial institution to pay interest
on the lump sum deposit.
(A) The interest rate paid by the financial institution shall be no
more than three points below the rate on one year Treasury obligations
at constant maturity.
(B) When an agreement sets a fixed interest rate for the entire term
of the agreement, the rate should be based on the rate at the time the
agreement is excuted.
(C) The agreement may provide for an interest rate that would
fluctuate periodically during the term of the agreement, but at no time
shall the rate be established at more than three points below the rate
on one year Treasury obligations at constant maturity.
(ii) In addition to the payment of interest, at least one of the
following benefits must be provided by the financial institution:
(A) Leverage of the deposited funds so that the financial institution
commits private funds for loans in the rehabilitation program in an
amount substantially in excess of the amount of the lump sum deposit;
(B) Commitment of private funds by the financial institution for
rehabilitation loans at below market interest rates, at higher than
normal risk, or with longer than normal repayment periods; or
(C) Provision of administrative services in support of the
rehabilitation program by the participating financial institution at no
cost or at lower than actual cost.
(c) Program income. Interest earned on lump sum deposits and
payments on loans made from such deposits are program income and, during
the period of the agreement, shall be used for rehabilitation activities
under the provisions of this section.
(d) Outstanding findings. Notwithstanding any other provision of
this section, no recipient shall enter into a new agreement during any
period of time in which an audit or monitoring finding on a previous
lump sum drawdown agreement remains unresolved.
(e) Prior notification. The recipient shall provide the HUD field
office with written notification of the amount of funds to be
distributed to a private financial institution before distribution under
the provisions of this section.
(f) Recordkeeping requirements. The recipient shall maintain in its
files a copy of the written agreement and related documents establishing
conformance with this section and concerning performance by a financial
institution in accordance with the agreement.
24 CFR 570.513 Subpart K -- Other Program Requirements
Source: 53 FR 34456, Sept. 6, 1988, unless otherwise noted.
24 CFR 570.600 General.
(a) Section 104(b) of the Act provides that any grant under section
106 of the Act shall be made only if the grantee certifies to the
satisfaction of the Secretary, among other things, that the grant ''will
be conducted and administered in conformity with Pub. L. 88-352 and
Pub. L. 90-284,'' and, further, that the grantee ''will comply with the
other provisions of this title and with other applicable laws.'' Section
104(e)(1) of the Act requires that the Secretary determine with respect
to grants made pursuant to section 106(b) (Entitlement Grants) and
106(d)(2)(B) (HUD-administered Small Cities Grants), at least on an
annual basis, among other things, ''whether the grantee has carried out
(its) certifications in compliance with the requirements and the primary
objectives of this title and with other applicable laws * * *.'' Certain
other statutes are expressly made applicable to activities assisted
under the Act by the Act itself, while other laws not referred to in the
Act may be applicable to such activities by their own terms. Certain
statutes or Executive Orders which may be applicable to activities
assisted under the Act by their own terms are administered or enforced
by governmental departments or agencies other than the Secretary or the
Department. This subpart K enumerates laws which the Secretary will
treat as applicable to grants made under section 106 of the Act, other
than grants to States made pursuant to section 106(d) of the Act, for
purposes of the determinations described above to be made by the
Secretary under section 104(e)(1) of the Act, including statutes
expressly made applicable by the Act and certain other statutes and
Executive Orders for which the Secretary has enforcement responsibility.
The absence of mention herein of any other statute for which the
Secretary does not have direct enforcement responsibility is not
intended to be taken as an indication that, in the Secretary's opinion,
such statute or Executive Order is not applicable to activities assisted
under the Act. For laws which the Secretary will treat as applicable to
grants made to States under section 106(d) of the Act for purposes of
the determination required to be made by the Secretary pursuant to
section 104(e)(2) of the Act, see 570.496.
(b) This subpart also sets forth certain additional program
requirements which the Secretary has determined to be applicable to
grants provided under the Act as a matter of administrative discretion.
(c) In addition to grants made pursuant to section 106(b) and
106(d)(2)(B) of the Act (subparts D and F, respectively), the
requirements of this subpart K are applicable to grants made pursuant to
sections 107 and 119 of the Act (subparts E and G, respectively), and to
loans guaranteed pursuant to subpart M.
24 CFR 570.601 Public Law 88-352 and Public Law 90-284; affirmatively
furthering fair housing; Executive Order 11063.
Section 104(b) of the Act provides that any grant under section 106
of the Act shall be made only if the grantee certifies to the
satisfaction of the Secretary that the grant ''will be conducted and
administered in conformity with Pub. L. 88-352 and Pub. L. 90-284 and
the grantee will affirmatively further fair housing.'' Similarly,
section 107 provides that no grant may be made under that section
(Secretary's Discretionary Fund) or section 119 (UDAG) without
satisfactory assurances that the grantee's program will be conducted and
administered in conformity with Pub. L. 88-352 and Pub. L. 90-284.
(a) ''Pub. L. 88-352'' refers to title VI of the Civil Rights Act of
1964 (42 U.S.C. 2000d et seq.), which provides that no person in the
United States shall on the ground of race, color, or national origin, be
excluded from participation in, be denied the benefits of, or be
subjected to discrimination under any program or activity receiving
Federal financial assistance. Section 602 of the Civil Rights Act of
1964 directs each Federal department and agency empowered to extend
Federal financial assistance to any program or activity by way of grant
to effectuate the foregoing prohibition by issuing rules, regulations.
or orders of general applicability which shall be consistent with
achievement of the statute authorizing the financial assistance. HUD
regulations implementing the requirements of Title VI with respect to
HUD programs are contained in 24 CFR part 1.
(b) ''Public Law 90-284'' refers to the Fair Housing Act (42 U.S.C.
3601-20), which states that it is the policy of the United States to
provide, within constitutional limitations, for fair housing throughout
the United States and prohibits any person from discriminating in the
sale or rental of housing, the financing of housing, or the provision of
brokerage services, including otherwise making unavailable or denying a
dwelling to any person, because of race, color, religion, sex, national
origin, handicap or familial status. The Fair Housing Act further
requires the Secretary to administer the programs and activities
relating to housing and urban development in a manner affirmatively to
further the policies of the Fair Housing Act. In accordance with this
statutory direction, the Secretary requires that grantees administer all
programs and activities related to housing and community development in
a manner to affirmatively further the policies of the Fair Housing Act;
furthermore, section 104(b)(2) of the Act requires that each grantee
receiving funds under section 106 of the Act (entitlement or small
cities grantees) certify to the satisfaction of the Secretary that it
will affirmatively further fair housing.
(c) Executive Order 11063, as amended by Executive Order 12259,
directs the Department to take all action necessary and appropriate to
prevent discrimination because of race, color, religion (creed), sex, or
national origin, in the sale, leasing, rental, or other disposition of
residential property and related facilities (including land to be
developed for residential use), or in the use or occupancy thereof, if
such property and related facilities are, among other things, provided
in whole or in part with the aid of loans, advances, grants, or
contributions agreed to be made by the Federal Government. HUD
regulations implementing Executive Order 11063 are contained in 24 CFR
part 107.
(53 FR 34456, Sept. 6, 1988, as amended at 54 FR 37411, Sept. 8,
1989)
24 CFR 570.602 Section 109 of the Act.
(a) Section 109 of the Act requires that no person in the United
States shall on the ground of race, color, national origin or sex, be
excluded from participation in, be denied the benefits of, or be
subjected to discrimination under, any program or activity funded in
whole or in part with community development funds made available
pursuant to the Act. For purposes of this section ''program or
activity'' is defined as any function conducted by an identifiable
administrative unit of the recipient, or by any unit of government,
subrecipient, or private contractor receiving community development
funds or loans from the recipient. ''Funded in whole or in part with
community development funds'' means that community development funds in
any amount in the form of grants or proceeds from HUD guaranteed loans
have been transferred by the recipient or a subrecipient to an
identifiable administrative unit and disbursed in a program or activity.
In subsection (b) of this section, ''recipient'' means recipient as
defined in 24 CFR 1.2(f).
(b) Specific discriminatory actions prohibited and corrective
actions.
(1) A recipient may not, under any program or activity to which the
regulations of this part may apply, directly or through contractual or
other arrangements, on the ground of race, color, national origin, or
sex:
(i) Deny any individual any facilities, services, financial aid or
other benefits provided under the program or activity.
(ii) Provide any facilities, services, financial aid or other
benefits which are different, or are provided in a different form, from
that provided to others under the program or activity.
(iii) Subject an individual to segregated or separate treatment in
any facility in, or in any matter of process related to receipt of any
service or benefit under the program or activity.
(iv) Restrict an individual in any way in access to, or in the
enjoyment of, any advantage or privilege enjoyed by others in connection
with facilities, services, financial aid or other benefits under the
program or activity.
(v) Treat an individual differently from others in determining
whether the individual satisfies any admission, enrollment, eligibility,
membership, or other requirement or condition which the individual must
meet in order to be provided any facilities, services or other benefit
provided under the program or activity.
(vi) Deny an individual an opportunity to participate in a program or
activity as an employee.
(2) A recipient may not use criteria or methods of administration
which have the effect of subjecting persons to discrimination on the
basis of race, color, national origin, or sex, or have the effect of
defeating or substantially impairing accomplishment of the objectives of
the program or activity with respect to persons of a particular race,
color, national origin, or sex.
(3) A recipient, in determining the site or location of housing or
facilities provided in whole or in part with funds under this part, may
not make selections of such site or location which have the effect of
excluding persons from, denying them the benefits of, or subjecting them
to discrimination on the ground of race, color, national origin, or sex;
or which have the purpose or effect of defeating or substantially
impairing the accomplishment of the objectives of the Act and of this
section.
(4)(i) In administering a program or activity funded in whole or in
part with CDBG funds regarding which the recipient has previously
discriminated against persons on the ground of race, color, national
origin or sex, or if there is sufficient evidence to conclude that such
discrimination existed, the recipient must take remedial affirmative
action to overcome the effects of prior discrimination. The word
''previously'' does not exclude current discriminatory practices.
(ii) In the absence of discrimination, a recipient, in administering
a program or activity funded in whole or in part with funds made
available under this part, may take any nondiscriminatory affirmative
action necessary to ensure that the program or activity is open to all
without regard to race, color, national origin or sex.
(iii) After a finding of noncompliance or after a recipient has a
firm basis to conclude that discrimination has occurred, a recipient
shall not be prohibited by this section from taking any action eligible
under Subpart C to ameliorate an imbalance in services or facilities
provided to any geographic area or specific group of persons within its
jurisdiction, where the purpose of such action is to remedy prior
discriminatory practice or usage.
(5) Notwithstanding anything to the contrary in this section, nothing
contained herein shall be construed to prohibit any recipient from
maintaining or constructing separate living facilities or rest room
facilities for the different sexes. Furthermore, selectivity on the
basis of sex is not prohibited when institutional or custodial services
can properly be performed only by a member of the same sex as the
recipients of the services.
(c) Section 109 of the Act further provides that any prohibition
against discrimination on the basis of age under the Age Discrimination
Act of 1975 (42 U.S.C. 6101 et seq.) or with respect to an otherwise
qualified handicapped person as provided in section 504 of the
Rehabilitation Act of 1973 (29 U.S.C. 794) shall also apply to any
program or activity funded in whole or in part with funds made available
pursuant to the Act. HUD regulations implementing the Age
Discrimination Act are contained in 24 CFR part 146 and the regulations
implementing section 504 are contained in 24 CFR part 8.
24 CFR 570.603 Labor standards.
Section 110 of the Act requires that all laborers and mechanics
employed by contractors or subcontractors on construction work financed
in whole or in part with assistance received under the Act shall be paid
wages at rates not less than those prevailing on similar construction in
the locality as determined by the Secretary of Labor in accordance with
the Davis-Bacon Act, as amended (40 U.S.C. 276a-276a-5). By reason of
the foregoing requirement, the Contract Work Hours and Safety Standards
Act (40 U.S.C. 327 et seq.) also applies. However, these requirements
apply to the rehabilitation of residential property only if such
property contains not less than 8 units. With respect to the labor
standards specified in this section, the Secretary of Labor has the
authority and functions set forth in Reorganization Plan Number 14 of
1950 (5 U.S.C. 1332-15) and section 2 of the Act of June 13, 1934, as
amended (40 U.S.C. 276c).
24 CFR 570.604 Environmental standards.
Section 104(g) expresses the intent that ''the policies of the
National Environmental Policy Act of 1969 and other provisions of law
which further the purposes of such Act (as specified in regulations
issued by the Secretary) * * * (be) most effectively implemented in
connection with the expenditure of funds under'' the Act. Such other
provisions of law which further the purposes of the National
Environmental Policy Act of 1969 are specified in regulations issued
pursuant to section 104(g) of the Act and contained in 24 CFR part 58.
Section 104(g) also provides that, in lieu of the environmental
protection procedures otherwise applicable, the Secretary may under
regulations provide for the release of funds for particular projects to
grantees who assume all of the responsibilities for environmental
review, decisionmaking, and action pursuant to the National
Environmental Policy Act of 1969, and the other provisions of law
specified by the Secretary as described above, that would apply to the
Secretary were he/she to undertake such projects as Federal projects.
Grantees assume such environmental review, decisionmaking, and action
responsibilities by execution of grant agreements with the Secretary.
The procedures for carrying out such environmental responsibilities are
contained in 24 CFR part 58.
24 CFR 570.605 National Flood Insurance Program.
Section 202(a) of the Flood Disaster Protection Act of 1973 (42
U.S.C. 4106) provides that no Federal officer or agency shall approve
any financial assistance for acquisition or construction purposes (as
defined under section 3(a) of said Act (42 U.S.C. 400(a)), one year
after a community has been formally notified of its identification as a
community containing an area of special flood hazard, for use in any
area that has been identified by the Director of the Federal Emergency
Management Agency as an area having special flood hazards unless the
community in which such area is situated is then participating in the
National Flood Insurance Program. Notwithstanding the date of HUD
approval of the recipient's application (or, in the case of grants made
under subpart D, the date of submission of the grantee's final statement
pursuant to 570.302), funds provided under this part shall not be
expended for acquisition or construction purposes in an area that has
been identified by the Federal Emergency Management Agency (FEMA) as
having special flood hazards unless the community in which the area is
situated is participating in the National Flood Insurance Program in
accordance with 44 CFR parts 59-79, or less than a year has passed since
FEMA notification to the community regarding such hazards; and flood
insurance is obtained in accordance with section 102(a) of the Flood
Disaster Protection Act of 1973 (42 U.S.C. 4001).
24 CFR 570.606 Displacement, relocation, acquisition, and replacement
of housing.
(a) General policy for minimizing displacement. Consistent with the
other goals and objectives of this part, grantees shall assure that they
have taken all reasonable steps to minimize the displacement of persons
(families, individuals, businesses, nonprofit organizations, and farms)
as a result of activities assisted under this part.
(b) Relocation assistance for displaced persons at URA levels. (1) A
displaced person shall be provided with relocation assistance at the
levels described in, and in accordance with the requirements of, 49 CFR
part 24 which contains the government-wide regulations implementing the
Uniform Relocation Assistance and Real Property Acquisition Policies Act
of 1970 (URA) (42 U.S.C. 4601-4655).
(2) Displaced person. (i) For purposes of this paragraph (b), the
term ''displaced person'' means any person (family, individual,
business, nonprofit organization, or farm) that moves from real
property, or moves his or her personal property from real property,
permanently and involuntarily, as a direct result of rehabilitation,
demolition, or acquisition for an activity assisted under this part. A
permanent, involuntary move for an assisted activity includes a
permanent move from real property that is made:
(A) After notice by the grantee to move permanently from the
property, if the move occurs on or after the date of the initial
submission to HUD of the final statement under 24 CFR 570.302(a)(2) for
activities under the entitlement program; the initial submission to HUD
of an application for assistance under 570.426, 570.430, or 570.435(d)
that is later granted for activities governed by the HUD-administered
small cities program; the submission to HUD of an application for
assistance under 570.458 that is later granted for activities under the
UDAG program; the submission to HUD of an application for assistance
under part 570, subpart G (Special Purpose Grants) that is later
granted; or the submission to HUD of an application for loan guarantee
assistance under 570.701 that is later provided for an activity under
the section 108 loan guarantee program.
(B) After notice by the property owner to move permanently from the
property, if the move occurs after the date of the submission of a
request for financial assistance by the property owner (or person in
control of the site) that is later approved for the requested activity.
(C) Before the date described in paragraph (b)(2)(i) (A) or (B) of
this section, if either HUD or the grantee determines that the
displacement directly resulted from acquisition, rehabilitation, or
demolition for the requested activity.
(D) After the ''initiation of negotiations'' if the person is the
tenant-occupant of a dwelling unit and any one of the following three
situations occurs:
(1) The tenant has not been provided with a reasonable opportunity to
lease and occupy a suitable decent, safe, and sanitary dwelling in the
same building/complex upon the completion of the project under
reasonable terms and conditions, including a monthly rent that does not
exceed the greater of the tenant's monthly rent and estimated average
utility costs before the initiation of negotiations or 30 percent of the
household's average monthly gross income; or
(2) The tenant is required to relocate temporarily for the activity
but (i) the tenant is not offered payment for all reasonable
out-of-pocket expenses incurred in connection with the temporary
relocation, including the cost of moving to and from the temporary
location and any increased housing costs, or other conditions of the
temporary relocation are not reasonable and (ii) the tenant does not
return to the building/complex; or
(3) The tenant is required to move to another unit in the
building/complex, but is not offered reimbursement for all reasonable
out-of-pocket expenses incurred in connection with the move.
(ii) Notwithstanding the provisions of paragraph (b)(2)(i) of this
section, the term ''displaced person'' does not include:
(A) A person who is evicted for cause based upon serious or repeated
violations of material terms of the lease or occupancy agreement. To
exclude a person on this basis, the grantee must determine that the
eviction was not undertaken for the purpose of evading the obligation to
provide relocation assistance under this section;
(B) A person who moves into the property after the date of the notice
described in paragraph (b)(2)(i) (A) or (B) of this section, but who
received a written notice of the expected displacement before occupancy.
(C) A person who is not displaced as described in 49 CFR 24.2(g)(2).
(D) A person who the grantee determines is not displaced as a direct
result of the acquisition, rehabilitation, or demolition for an assisted
activity. To exclude a person on this basis, HUD must concur in that
determination.
(iii) A grantee may, at any time, request HUD to determine whether a
person is a displaced person under this section.
(3) Initiation of negotiations. For purposes of determining the type
of replacement housing assistance to be provided under this paragraph,
if the displacement is the direct result of privately undertaken
rehabilitation, demolition, or acquisition of real property, the term
''initiation of negotiations'' means the execution of the grant or loan
agreement between the grantee and the person owning or controlling the
real property.
(c) Residential antidisplacement and relocation assistance plan. In
accordance with section 104(d) of the Act, each grantee must adopt, make
public, and certify that it is following a residential antidisplacement
and relocation assistance plan providing one-for-one replacement units
(paragraph (c)(1) of this section), and relocation assistance (paragraph
(c)(2) of this section). The plan shall also indicate the steps that
will be taken consistent with other goals and objectives of this part to
minimize the displacement of families and individuals from their homes
and neighborhoods as a result of any activities assisted under this
part.
(1) One-for-one replacement of low/moderate-income dwelling units.
(i) All occupied and vacant occupiable low/moderate-income dwelling
units that are demolished or converted to a use other than as
low/moderate-income dwelling units in connection with an activity
assisted under this part must be replaced with low/moderate-income
dwelling units.
(ii) Replacement low/moderate-income dwelling units may be provided
by any government agency or private developer, and must meet the
following requirements:
(A) The units must be located within the grantee's jurisdiction. To
the extent feasible and consistent with other statutory priorities, the
units shall be located within the same neighborhood as the units
replaced.
(B) The units must be sufficient in number and size to house no fewer
than the number of occupants who could have been housed in the units
that are demolished or converted. The number of occupants who could
have been housed in units shall be determined in accordance with
applicable local housing occupancy codes. The grantee may not replace
those units with smaller units (e.g., a 2-bedroom unit with two
1-bedroom units), unless the grantee has provided the information
required under paragraph (c)(1)(iii)(G) of this section.
(C) The units must be provided in standard condition. Replacement
low/moderate-income dwelling units may include units that have been
raised to standard from substandard condition if (1) no person was
displaced from the unit as a direct result of an assist activity (see
definition of displaced person in paragraph (c)(3)(ii) of this section,
and (2) the unit was vacant for at least three months before execution
of the agreement between the grantee and the property owner.
(D) The units must initially be made available for occupancy at any
time during the period beginning one year before the grantee's
submission of the information required under paragraph (c)(1)(iii) of
this section and ending three years after the commencement of the
demolition or rehabilitation related to the conversion.
(E) The units must be designed to remain low/moderate-income dwelling
units for at least 10 years from the date of initial occupancy.
Replacement low/moderate-income dwelling units may include, but are not
limited to, public housing, or existing housing receiving Section 8
project-based assistance under the United States Housing Act of 1937.
(iii) Before the grantee enters into a contract committing it to
provide funds under this part for any activity that will directly result
in the demolition of low/moderate-income dwelling units or the
conversion of low/moderate-income dwelling units to another use, the
grantee must make public, and submit the following information in
writing to the HUD Field Office for monitoring purposes:
(A) A description of the proposed assisted activity;
(B) The location on a map and number of dwelling units by size
(number of bedrooms) that will be demolished or converted to a use other
than for low/moderate-income dwelling units as a direct result of the
assisted activity;
(C) A time schedule for the commencement and completion of the
demolition or conversion;
(D) The location on a map and the number of dwelling units by size
(number of bedrooms) that will be provided as replacement dwelling
units. If such data are not available at the time of the general
submission, the submission shall identify the general location on an
area map and the approximate number of dwelling units by size, and
information identifying the specific location and number of dwelling
units by size shall be submitted and disclosed to the public as soon as
it is available;
(E) The source of funding and a time schedule for the provision of
replacement dwelling units;
(F) The basis for concluding that each replacement dwelling unit will
remain a low/moderate-income dwelling unit for at least 10 years from
the date of initial occupancy; and
(G) Information demonstrating that any proposed replacement of
dwelling units with smaller dwelling units (e.g., a 2-bedroom unit with
two 1-bedroom units) is consistent with the needs analysis contained in
the HUD-approved Comprehensive Housing Affordability Strategy. A
grantee that is not required to submit a Housing Assistance Plan to HUD
must submit information demonstrating that the proposed replacement is
consistent with the housing needs of low- and moderate-income households
in the jurisdiction.
(iv)(A) The one-for-one replacement requirement of this paragraph
(c)(1) does not apply to the extent the Field Office determines, based
upon objective data, that there is an adequate supply of vacant
low/moderate-income dwelling units in standard condition available on a
nondiscriminatory basis within the grantee's jurisdiction. In
determining the adequacy of supply, HUD will consider whether the
demolition or conversion of the low/moderate-income dwelling units will
have a material impact on the ability of low- and moderate-income
households to find suitable housing. HUD will consider relevant
evidence of housing supply and demand including, but not limited to, the
following factors: the housing vacancy rate in the jurisdiction; the
number of vacant low/moderate-income dwelling units in the jurisdiction
(excluding units that will be demolished or converted); the number of
eligible families on waiting lists for housing assisted under the United
States Housing Act of 1937 in the jurisdiction; the needs analysis
contained in any applicable HUD-approved Comprehensive Housing
Affordability Strategy; and relevant past or predicted demographic
changes.
(B) HUD may consider the supply of vacant low/moderate-income
dwelling units in a standard condition available on a nondiscriminatory
basis in an area that is larger than the grantee's jurisdiction. Such
additional dwelling units shall be considered if the Field Office
determines that the units would be suitable to serve the needs of the
low- and moderate-income households that could be served by the
low/moderate-income dwelling units that are to be demolished or
converted to another use. HUD will base this determination on
geographic and demographic factors, such as location and access to
places of employment and to other facilities.
(C) The grantee must submit the request for determination under this
paragraph (c)(1)(iv) directly to the Field Office. Simultaneously with
the submission of the request, the grantee must make the submission
public and inform interested persons that they have 30 days from the
date of submission to provide to HUD additional information supporting
or opposing the request.
(2) Relocation assistance under section 104(d) of the Act. Under
section 104(d), each ''displaced person'' (defined in paragraph
(c)(3)(ii) of this section) is entitled to choose to receive either
assistance at URA levels (see paragraph (b) of this section) or the
following relocation assistance:
(i) Advisory services at the levels described in 49 CFR part 24,
subpart C (General Relocation Requirements). Tenants shall be advised
of their rights under the Fair Housing Act (42 U.S.C. 3601-19) and of
replacement housing opportunities in such a manner that, to the extent
feasible, will provide a choice between relocating within their
neighborhoods and other neighborhoods consistent with the grantee's
responsibility to affirmatively further fair housing;
(ii) Payment for moving expenses at the levels described in 49 CFR
part 24, subpart D.
(iii) The reasonable and necessary cost of any security deposit
required to rent the replacement dwelling unit, and for credit checks
required to rent or purchase the replacement dwelling unit.
(iv) Interim living costs. The grantee shall reimburse a person for
actual reasonable out-of-pocket costs incurred in connection with
temporary relocation, including moving expenses and increased housing
costs, if (A) the person must relocate temporarily because continued
occupancy of the dwelling unit constitutes a substantial danger to the
health or safety of the person or the public, or (B) the person is
displaced from a ''low/moderate-income dwelling unit,'' none of the
comparable replacement dwelling units to which the person has been
referred qualifies as a low/moderate-income dwelling unit (defined in
paragraph (c)(3)(iii) of this section), and a suitable
low/moderate-income dwelling unit is scheduled to become available in
accordance with paragraph (c)(1) of this section. (Because a
''comparable replacement dwelling unit'' may be made affordable to a
person through a rental assistance payment and its market rent may
exceed the Fair Market Rent (FMR) under the Section 8 Existing Housing
Program, it may not meet the definition of a ''low/moderate-income
dwelling unit.'')
(v) Replacement housing assistance. Persons are eligible to receive
one of the following two forms of replacement housing assistance:
(A) Each person must be offered rental assistance equal to 60 times
the amount necessary to reduce the monthly rent and estimated average
monthly cost of utilities for a replacement dwelling (comparable
replacement dwelling or decent, safe, and sanitary replacement dwelling
to which the person relocates, whichever costs less) to the ''Total
Tenant Payment,'' as determined under 813.107 of this title. All or a
portion of this assistance may be offered through a certificate or
housing voucher for rental assistance (if available) provided through
the Local Public Agency (PHA) under Section 8 of the United States
Housing Act of 1937. If a Section 8 certificate or housing voucher is
provided to a person, the grantee must provide referrals to comparable
replacement dwelling units where the owner is willing to participate in
the Section 8 Existing Housing Program. To the extent that cash
assistance is provided, it may, at the discretion of the grantee, be in
either a lump sum or in installments.
(B) If the person purchases an interest in a housing cooperative or
mutual housing association and occupies a decent, safe, and sanitary
dwelling in the cooperative or association, the person may elect to
receive a lump sum payment. This lump sum payment shall be equal to the
capitalized value of 60 monthly installments of the amount that is
obtained by subtracting the ''Total Tenant Payment,'' as determined
under 813.107 of this title, from the monthly rent and estimated
average monthly cost of utilities at a comparable replacement dwelling
unit. To compute the capitalized value, the installments shall be
discounted at the rate of interest paid on passbook savings deposits by
a federally insured bank of savings and loan institution conducting
business within the grantee's jurisdiction. To the extent necessary to
minimize hardship to the household, the grantee shall, subject to
appropriate safeguards, issue a payment in advance of the purchase of
the interest in the housing cooperative or mutual housing association.
(C) Displaced low/moderate income tenants shall be advised of their
right to elect relocation assistance pursuant to the Uniform Relocation
Assistance and Real Property Acquisition Policies Act of 1970 and the
regulations appearing at 49 CFR part 24 as an alternative to the
relocation assistance available under paragraph (c)(2) of this section.
(3) Definitions. For purposes of providing section 104(d) assistance
under this paragraph (c):
(i) Comparable replacement dwelling unit. The term ''comparable
replacement dwelling unit'' means a dwelling unit that (A) meets the
criteria of 49 CFR 24.2(d)(1) through (6); and (B) is available at a
monthly cost for rent plus estimated average monthly utility costs that
does not exceed the ''Total Tenant Payment'' determined under 813.107
of this title, after taking into account any rental assistance the
household would receive.
(ii) Displaced person. (A) The term ''displaced person'' means any
low/moderate-income family or individual that moves from real property,
or moves his or her personal property from real property, permanently
and involuntarily, as a direct result of the conversion of a
low/moderate-income dwelling unit (defined in paragraph (c)(3)(iv) of
this section) or demolition in connection with an activity assisted
under this part. A permanent involuntary move for an assisted activity
includes a permanent move from real property that is made:
(1) After notice by the grantee to move permanently from the
property, if the move occurs after the initial submission to HUD of the
final statement under 24 CFR 570.302(a)(2) for activities under the
entitlements program; the initial submission to HUD of an application
for assistance under 570.426, 570.430, or 570.435(d) that is later
granted for activities governed by the HUD-administered small cities
program; the submission to HUD of an application for assistance under
570.458 that is later granted for activities under the UDAG program; or
the submission to HUD of an application for loan guarantee assistance
under 570.701 that is later provided for the activity under the section
108 loan guarantee program.
(2) After notice by the property owner, to move permanently from the
property, if the move occurs after the date of submission of a request
for financial assistance by the property owner (or person in control of
the site) that is later approved for the requested activity.
(3) Before the date described in paragraph (c)(3)(ii)(A) (1) or (2)
of this section, if either HUD or the grantee determines that the
displacement directly resulted from the conversion of a
low/moderate-income dwelling unit or demolition in connection with the
requested activity.
(4) After the execution of the agreement by the grantee covering the
rehabilitation or demolition, if the person is the tenant-occupant of a
dwelling unit and any one of the following three situations occurs:
(i) The tenant has not been provided with a reasonable opportunity to
lease and occupy a suitable decent, safe, and sanitary dwelling in the
same building/complex upon completion of the project, under reasonable
terms and conditions, including a monthly rent that does not exceed the
greater of the tenant's monthly rent and estimated average utility costs
before the execution of such agreement, or the ''Total Tenant Payment''
for the person as determined under 813.107 of this title; or
(ii) The tenant, required to relocate temporarily for the activity,
does not return to the building/complex; and either the tenant is not
offered payment for all reasonable out-of-pocket expenses incurred in
connection with the temporary location (including the cost of moving to
and from the temporary location and any increased housing costs), or
other conditions of the temporary relocation are not reasonable; or
(iii) The tenant is required to move to another unit in the
building/complex, but is not offered reimbursement for all reasonable
out-of-pocket expenses incurred in connection with the move.
(B) Notwithstanding the provisions of paragraph (c)(3)(ii)(A) of this
section, the term ''displaced person'' does not include:
(1) A person who is evicted for cause based upon serious or repeated
violations of material terms of the lease or occupancy agreement. To
exclude a person on this basis, the grantee must determine that the
eviction was not undertaken for the purpose of evading the obligation to
provide relocation assistance under this section;
(2) A person who moves into the property after the date of the notice
described in paragraph (c)(3)(ii)(A) (1) or (2) of this section, but
received a written notice of the expected displacement before commencing
occupancy.
(3) A person who is not displaced as defined under 49 CFR 24.2(g)(2).
(4) A person who the grantee determines is not displaced as a direct
result of the conversion of a low/moderate-income dwelling or demolition
in connection with an assisted activity. To exclude a person on this
basis, HUD must concur in that determination.
(5) A grantee may, at any time, request HUD to determine whether a
person is a displaced person under this paragraph (c).
(iii) Low/moderate-income dwelling unit. The term
''low/moderate-income dwelling unit'' means a dwelling unit with a
market rent (including utility costs) that does not exceed the
applicable Fair Market Rent (FMR) for existing housing established under
24 CFR part 888, except that the term does not include a unit that is
owned and occupied by the same person before and after the assisted
rehabilitation.
(iv) Standard condition and substandard condition suitable for
rehabilitation. If the grantee has a HUD-approved Comprehensive Housing
Affordability Strategy, the definitions of ''standard condition'' and
''substandard condition suitable for rehabilitation'' established in the
plan will apply.
(v) Vacant occupiable dwelling unit. The term ''vacant occupiable
dwelling unit'' means a vacant dwelling unit that is in a standard
condition; a vacant dwelling unit that is in a substandard condition,
but is suitable for rehabilitation; or a dwelling unit in any condition
that has been occupied (except by a squatter) at any time within the
period beginning one year before the date of execution of the agreement
by the grantee covering the rehabilitation or demolition.
(d) Optional relocation assistance. Under section 105(a)(11) of the
Act, the grantee may provide relocation payments and other relocation
assistance to persons displaced by activities that are not subject to
paragraph (b) or (c) of this section. The grantee may also provide
relocation assistance to persons receiving assistance under paragraphs
(b) or (c) of this section at levels in excess of those required by
these paragraphs. Unless such assistance is provided under State or
local law, the grantee shall provide such assistance only upon the basis
of a written determination that the assistance is appropriate (see 24
CFR 570.201(i)). The grantee must adopt a written policy available to
the public that describes the relocation assistance that the grantee has
elected to furnish and provides for equal relocation assistance within
each class of displaced persons.
(e) Acquisition of real property. The acquisition of real property
for an assisted activity is subject to 49 CFR part 24, subpart B.
(f) Appeals. If a person disagrees with the grantee's determination
concerning the person's eligibility for, or the amount of, a relocation
payment under this section, the person may file a written appeal of that
determination with the grantee. The appeal procedures to be followed
are described in 49 CFR 24.10. In addition, a low- or moderate-income
household that has been displaced from a dwelling may file a written
request for review of the grantee's decision to the HUD Field Office.
(g) Responsibility of grantee. (1) The grantee is responsible for
ensuring compliance with the requirements of this section,
notwithstanding any third party's contractual obligation to the grantee
to comply with the provisions of this section.
(2) The cost of assistance required under this section may be paid
from local public funds, funds provided under this part, or funds
available from other sources.
(3) The grantee must maintain records in sufficient detail to
demonstrate compliance with the provisions of this section.
(Approved by the Office of Management and Budget under OMB control
number 2506-0102)
(55 FR 29312, July 18, 1990, as amended at 56 FR 56128, Oct. 31,
1991)
24 CFR 570.607 Employment and contracting opportunities.
(a) Grantees shall comply with Executive Order 11246, as amended by
Executive Order 12086, and the regulations issued pursuant thereto (41
CFR chapter 60) which provide that no person shall be discriminated
against on the basis of race, color, religion, sex, or national origin
in all phases of employment during the performance of Federal or
federally assisted construction contracts. As specified in Executive
Order 11246 and the implementing regulations, contractors and
subcontractors on Federal or federally assisted construction contracts
shall take affirmative action to ensure fair treatment in employment,
upgrading, demotion or transfer, recruitment or recruitment advertising,
layoff or termination, rates of pay, or other forms of compensation and
selection for training and apprenticeship.
(b) Section 3 of the Housing and Urban Development Act of 1968 (12
U.S.C. 1701u) requires, in conneciton with the planning and carrying out
of any project assisted under the Act, that to the greatest extent
feasible opportunities for training and employment be given to low and
moderate income persons residing within the unit of local government or
the metropolitan area (or nonmetropolitan county) as determined by the
Secretary, in which the project is located, and that contracts for work
in connection with the project be awarded to eligible business concerns
which are located in, or owned in substantial part by persons residing
in the same metropolitan area (or nonmetropolitan county) as the
project. Grantees shall adopt appropriate procedures and requirements
to assure good faith efforts toward compliance with the statutory
directive. HUD regulations at 24 CFR part 135 are not applicable to
activities assisted under this part but may be referred to as guidance
indicative of the Secretary's view of the statutory objectives in other
contexts.
24 CFR 570.608 Lead-based paint.
(a) Prohibition against the use of lead-based paint. Section 401(b)
of the Lead-Based Paint Poisoning Prevention Act (42 U.S.C. 4831(b))
directs the Secretary to prohibit the use of lead-based paint in
residential structures constructed or rehabilitated with Federal
assistance. Such prohibitions are contained in 24 CFR part 35, subpart
B, and are applicable to residential structures constructed or
rehabilitated with assistance provided under this part.
(b) Notification of hazards of lead-based paint poisoning. (1) The
Secretary has promulgated requirements regarding notification to
purchasers and tenants of HUD-associated housing constructed prior to
1978 of the hazards of lead-based paint poisoning at 24 CFR part 35,
subpart A. This paragraph is promulgated pursuant to the authorization
granted in 24 CFR 35.5(c) and supersedes, with respect to all housing to
which it applies, the notification requirements prescribed by subpart A
of 24 CFR part 35.
(2) For properties constructed prior to 1978, applicants for
rehabilitation assistance provided under this part and tenants or
purchasers of properties owned by the grantee or its subrecipient and
acquired or rehabilitated with assistance provided under this part shall
be notified:
(i) That the property may contain lead-based paint;
(ii) Of the hazards of lead-based paint;
(iii) Of the symptoms and treatment of lead-based poisoning;
(iv) Of the precautions to be taken to avoid lead-based paint
poisoning (including maintenance and removal techniques for eliminating
such hazards);
(v) Of the advisability and availability of blood lead level
screening for children under seven years of age; and
(vi) That in the event lead-based paint is found on the property,
appropriate abatement procedures may be undertaken.
(c) Elimination of lead-based paint hazards. The purpose of this
paragraph is to implement the provisions of section 302 of the
Lead-Based Paint Poisoning Prevention Act, 42 U.S.C. 4822, by
establishing procedures to eliminate as far as practicable the hazards
due to the presence of paint which may contain lead and to which
children under seven years of age may be exposed in existing housing
which is rehabilitated with assistance provided under this part. The
Secretary has promulgated requirements regarding the elimination of
lead-based paint hazards in HUD-associated housing at 24 CFR part 35,
subpart C. This paragraph is promulgated pursuant to the authorization
granted in 24 CFR 35.24(b)(4) and supersedes, with respect to all
housing to which it applies, the requirements prescribed by subpart C of
24 CFR part 35.
(1) Applicability. This paragraph applies to the rehabilitation of
applicable surfaces in existing housing which is assisted under this
part. The following activities assisted under the Community Development
Block Grant program are not covered by this paragraph:
(i) Emergency repairs (not including lead-based paint-related
emergency repairs);
(ii) Weatherization;
(iii) Water or sewer hook-ups;
(iv) Installation of security devices;
(v) Facilitation of tax exempt bond issuances which provide funds for
rehabilitation;
(vi) Other similar types of single-purpose programs that do not
include physical repairs or remodeling of applicable surfaces (as
defined in 24 CFR 35.22) of residential structures; and
(vii) Any non-single purpose rehabilitation that does not involve
applicable surfaces (as defined in 24 CFR 35.22) that does not exceed
$3,000 per unit.
(2) Definitions.
''Applicable surface.'' All intact and nonintact interior and
exterior painted surfaces of a residential structure.
''Chewable surface.'' All chewable protruding painted surfaces up to
five feet from the floor or ground, which are readily accessible to
children under seven years of age, e.g., protruding corners, windowsills
and frames, doors and frames, and other protruding woodwork.
''Defective paint surface. Paint on applicable surfaces that is
cracking, scaling, chipping, peeling or loose.
''Elevated blood lead level or EBL.'' Excessive absorption of lead,
that is, a confirmed concentration of lead in whole blood of 25 mg/dl
(micrograms of lead per deciliter of whole blood) or greater.
''Lead-based paint surface.'' A paint surface, whether or not
defective, identified as having a lead content greater than or equal to
1 mg/cm2.
(3) Inspection and Testing -- (i) Defective paint surfaces. The
grantee shall inspect for defective paint surfaces in all units
constructed prior to 1978 which are occupied by families with children
under seven years of age and which are proposed for rehabilitation
assistance. The inspection shall occur at the same time the property is
being inspected for rehabilitation. Defective paint conditions will be
included in the work write-up for the remainder of the rehabilitation
work.
(ii) Chewable surfaces. The grantee shall be required to test the
lead content of chewable surfaces if the family residing in a unit,
constructed prior to 1978 and receiving rehabilitation assistance,
includes a child under seven years of age with an identified EBL
condition. Lead content shall be tested by using an X-ray fluorescence
analyzer (XRF) or other method approved by HUD. Test readings of 1
mg/cm2 or higher using an XRF shall be considered positive for presence
of lead-based paint.
(iii) Abatement without testing. In lieu of the procedures set forth
in paragraph (c)(3)(ii) of this section, in the case of a residential
structure constructed prior to 1978, the grantee may forgo testing and
abate all applicable surfaces in accordance with the methods set out in
24 CFR 35.24(b)(2)(ii).
(4) Abatement Actions. (i) For inspections performed under
570.608(c)(3)(i) and where defective paint surfaces are found, treatment
shall be provided to defective areas. Treatment shall be performed
before final inspection and approval of the work.
(ii) For testing performed under 570.608(c)(3)(ii) and where
interior chewable surfaces are found to contain lead-based paint, all
interior chewable surfaces in any affected room shall be treated. Where
exterior chewable surfaces are found to contain lead-based paint, the
entire exterior chewable surface shall be treated. Treatment shall be
performed before final inspection and approval of the work.
(iii) When weather prohibits repainting exterior surfaces before
final inspection, the grantee may permit the owner to abate the
defective paint or chewable lead-based paint as required by this section
and agree to repaint by a specified date. A separate inspection is
required.
(5) Abatement methods. At a minimum, treatment of the defective
areas and chewable lead-based paint surfaces shall consist of covering
or removal of the painted surface as described in 24 CFR
35.24(b)(2)(ii).
(6) Funding for inspection, testing and abatement. Program
requirements and local program design will determine whether the cost of
inspection, testing or abatement is to be borne by the owner/developer,
the grantee or a combination of the owner/developer and the grantee.
(7) Tenant protection. The owner/developer shall take appropriate
action to protect tenants from hazards associated with abatement
procedures. Where necessary, these actions may include the temporary
relocation of tenants during the abatement process. The owner/developer
shall notify the grantee of all such actions taken.
(8) Records. The grantee shall keep a copy of each inspection and/or
test report for at least three years.
(9) Monitoring and enforcement. HUD field office monitoring of
rehabilitation programs includes reviews for compliance with applicable
program requirements for lead-based paint. The CPD Field Monitoring
Handbook which currently includes instructions for monitoring lead-based
paint requirements will be amended as appropriate. In cases of
noncompliance, HUD may impose conditions or sanctions on grantees to
encourage prompt compliance.
(10) Compliance with other program requirements, Federal, State and
local laws.
(i) Other program requirements. To the extent that assistance from
any of the programs covered by this section is used in conjunction with
other HUD program assistance which have lead-based paint requirements
which may have more or less stringent requirements, the more stringent
requirements will prevail.
(ii) HUD responsibility. If HUD determines that a State or local
law, ordinance, code or regulation provides for lead-based paint testing
or hazard abatement in a manner which provides a level of protection
from the hazards of lead-based paint poisoning at least comparable to
that provided by the requirements of this section and that adherence to
the requirements of this subpart would be duplicative or otherwise cause
inefficiencies, HUD may modify or waive the requirements of this section
in such manner as may be appropriate to promote efficiency while
ensuring such comparable level of protection.
(iii) Grantee responsibility. Nothing in this section is intended to
relieve any grantee in the programs covered by this section of any
responsibility for compliance with State or local laws, ordinances,
codes or regulations governing lead-based paint testing or hazard
abatement.
(iv) Disposal of lead-based paint debris. Lead-based paint and
defective paint debris shall be disposed of in accordance with
applicable Federal, State or local requirements. (See e.g., 40 CFR
parts 260 through 271.)
(53 FR 34456, Sept. 6, 1988; 53 FR 41330, Oct. 21, 1988)
24 CFR 570.609 Use of debarred, suspended or ineligible contractors or
subrecipients.
Assistance under this part shall not be used directly or indirectly
to employ, award contracts to, or otherwise engage the services of, or
fund any contractor or subrecipient during any period of debarment,
suspension, or placement in ineligibility status under the provisions of
24 CFR part 24.
(53 FR 34456, Sept. 6, 1988; 53 FR 41330, Oct. 21, 1988)
24 CFR 570.610 Uniform administrative requirements and cost principles.
The recipient, its agencies or instrumentalities, and subrecipients
shall comply with the policies, guidelines, and requirements of 24 CFR
part 85 and OMB Circulars A-87, A-110, A-122, and A-128 /2/ (implemented
at 24 CFR part 44), as applicable, as they relate to the acceptance and
use of Federal funds under this part. The applicable sections of 24 CFR
part 85 and OMB Circular A-110 are set forth at 570.502.
(53 FR 34456, Sept. 6, 1988, and 53 FR 41330, Oct. 21, 1988)
/2/ See footnote 1 for 570.200(a)(5).
24 CFR 570.611 Conflict of interest.
(a) Applicability. (1) In the procurement of supplies, equipment,
construction, and services by recipients, and by subrecipients
(including those specified at 570.204(c)), the conflict of interest
provisions in 24 CFR 85.36 and OMB Circular A-110, respectively, shall
apply.
(2) In all cases not governed by 24 CFR 85.36 and OMB Circular A-110,
the provisions of this section shall apply. Such cases include the
acquisition and disposition of real property and the provision of
assistance by the recipient, by its subrecipients, or to individuals,
businesses or other private entities under eligible activities which
authorize such assistance (e.g., rehabilitation, preservation, and other
improvements of private properties or facilities pursuant to 570.202,
or grants, loans and other assistance to businesses, individuals and
other private entities pursuant to 570.203, 570.204 or 570.455).
(b) Conflicts prohibited. Except for the use of CDBG funds to pay
salaries and other related administrative or personnel costs, the
general rule is that no persons described in paragraph (c) of this
section who exercise or have exercised any functions or responsibilities
with respect to CDBG activities assisted under this part or who are in a
position to participate in a decisionmaking process or gain inside
information with regard to such activities, may obtain a personal or
financial interest or benefit from a CDBG assisted activity, or have an
interest in any contract, subcontract or agreement with respect thereto,
or the proceeds thereunder, either for themselves or those with whom
they have family or business ties, during their tenure or for one year
thereafter. For the UDAG program, the above restrictions shall apply to
all activities that are a part of the UDAG project, and shall cover any
such interest or benefit during, or at any time after, such person's
tenure.
(c) Persons covered. The conflict of interest provisions of
paragraph (b) of this section apply to any person who is an employee,
agent, consultant, officer, or elected official or appointed official of
the recipient, or of any designated public agencies, or subrecipients
which are receiving funds under this part.
(d) Exceptions: threshold requirements. Upon the written request of
the recipient, HUD may grant an exception to the provisions of paragraph
(b) of this section on a case-by-case basis when it determines that such
an exception will serve to further the purposes of the Act and the
effective and efficient administration of the recipient's program or
project. An exception may be considered only after the recipient has
provided the following:
(1) A disclosure of the nature of the conflict, accompanied by an
assurance that there has been public disclosure of the conflict and a
description of how the public disclosure was made; and
(2) An opinion of the recipient's attorney that the interest for
which the exception is sought would not violate State or local law.
(e) Factors to be considered for exceptions. In determining whether
to grant a requested exception after the recipient has satisfactorily
met the requirements of paragraph (d) of this section, HUD shall
consider the cumulative effect of the following factors, where
applicable:
(1) Whether the exception would provide a significant cost benefit or
an essential degree of expertise to the program or project which would
otherwise not be available;
(2) Whether an opportunity was provided for open competitive bidding
or negotiation;
(3) Whether the person affected is a member of a group or class of
low- or moderate-income persons intended to be the beneficiaries of the
assisted activity, and the exception will permit such person to receive
generally the same interests or benefits as are being made available or
provided to the group or class;
(4) Whether the affected person has withdrawn from his or her
functions or responsibilities, or the decisionmaking process with
respect to the specific assisted activity in question;
(5) Whether the interest or benefit was present before the affected
person was in a position as described in paragraph (b) of this section;
(6) Whether undue hardship will result either to the recipient or the
person affected when weighed against the public interest served by
avoiding the prohibited conflict; and
(7) Any other relevant considerations.
(53 FR 34456, Sept. 6, 1988, and 53 FR 41330, Oct. 21, 1988)
24 CFR 570.612 Executive Order 12372.
(a) General. Executive Order 12372, Intergovernmental Review of
Federal Programs, and the Department's implementing regulations at 24
CFR part 52, allow each State to establish its own process for review
and comment on proposed Federal financial assistance programs.
(b) Applicability. Executive Order 12372 applies to the CDBG
Entitlement program and the UDAG program. The Executive Order applies
to all activities proposed to be assisted under UDAG, but it applies to
the Entitlement program only where a grantee proposes to use funds for
the planning or construction (reconstruction or installation) of water
or sewer facilities. Such facilities include storm sewers as well as
all sanitary sewers, but do not include water and sewer lines connecting
a structure to the lines in the public right-of-way or easement. It is
the responsibility of the grantee to initiate the Executive Order review
process if it proposes to use its CDBG or UDAG funds for activities
subject to review.
24 CFR 570.613 Eligibility restrictions for certain resident aliens.
(a) Restriction. Certain newly legalized aliens, as described in 24
CFR part 49, are not eligible to apply for benefits under covered
activities funded by the programs listed in paragraph (e) of this
section. ''Benefits'' under this section means financial assistance,
public services, jobs and access to new or rehabilitated housing and
other facilities made available under covered activities funded by
programs listed in paragraph (e) of this section. ''Benefits'' do not
include relocation services and payments to which displacees are
entitled by law.
(b) Covered activities. ''Covered activities'' under this section
means activities meeting the requirements of 570.208(a) that either:
(1) Have income eligibility requirements limiting the benefits
exclusively to low and moderate income persons; or
(2) Are targeted geographically or otherwise to primarily benefit low
and moderate income persons (excluding activities serving the public at
large, such as sewers, roads, sidewalks, and parks), and that provide
benefits to persons on the basis of an application.
(c) Limitation on coverage. The restrictions under this section
apply only to applicants for new benefits not being received by covered
resident aliens as of the effective date of this section.
(d) Compliance. Compliance can be accomplished by obtaining
certification as provided in 24 CFR 49.20.
(e) Programs affected. (1) The Community Development Block Grant
program for small cities, administered under subpart F of part 570 of
this title until closeout of the recipient's grant.
(2) The Community Development Block Grant program for entitlement
grants, administered under subpart D of part 570 of this title.
(3) The Community Development Block Grant program for States,
administered under subpart I of part 570 of this title until closeout of
the unit of general local government's grant by the State.
(4) The Urban Development Action Grants program, administered under
subpart G of part 570 of this title until closeout of the recipient's
grant.
(55 FR 18494, May 2, 1990)
24 CFR 570.613 Subpart L -- (Reserved)
24 CFR 570.613 Subpart M -- Loan Guarantees
Source: 56 FR 56906, Nov. 6, 1991, unless otherwise noted.
24 CFR 570.613 Subpart M -- Loan Guarantees
24 CFR 570.700 Purpose.
This subpart contains requirements governing the guarantee under
section 108 of the Act of notes or other obligations issued by public
entities or by public agencies designated by public entities.
24 CFR 570.701 Definitions.
Designated public agency means a public agency designated by a public
entity to receive a loan guarantee under this subpart.
Entitlement public entity means a metropolitan city or an urban
county receiving a grant under subpart D of this part.
Guaranteed loan funds means the proceeds from the issuance of notes
or other obligations that are guaranteed under this subpart.
Nonentitlement public entity means a unit of general local government
in a nonentitlement area.
Public entity means any unit of general local government, including
units of general local government in a nonentitlement area.
24 CFR 570.702 Eligible applicants.
The following public entities may apply for loan guarantee assistance
under this subpart.
(a) Entitlement public entities.
(b) Nonentitlement public entities that are assisted in the
submission of applications by States that administer the CDBG program
(under subpart I of this part). Such assistance shall consist, at a
minimum, of the certifications required under 570.704(b)(9) (and
actions pursuant thereto).
24 CFR 570.703 Eligible activities.
Guaranteed loan funds may be used for the following activities,
provided such activities meet the requirements of 570.200. However,
guaranteed loan funds may not be used to reimburse the CDBG program
account or line of credit for costs incurred by the public entity or
designated public agency and paid with CDBG grant funds or program
income.
(a) Acquisition of improved or unimproved real property in fee or by
long-term lease, including acquisition for economic development
purposes.
(b) Rehabilitation of real property owned or acquired by the public
entity or its designated public agency.
(c) Payment of interest on obligations guaranteed under this subpart.
(d) Relocation payments and other relocation assistance for
individuals, families, businesses, nonprofit organizations, and farm
operations who must relocate permanently or temporarily as a result of
an activity financed with guaranteed loan funds, where the assistance is
--
(1) Required under the provisions of 570.496a (b) or (c) or 570.606
(b) or (c); or
(2) Determined by the public entity to be appropriate under the
provisions of 570.496a(d) or 570.606(d).
(e) Clearance, demolition and removal, including movement of
structures to other sites, of buildings and improvements on real
property acquired or rehabilitated pursuant to paragraphs (a) and (b) of
this section.
(f) Site preparation, including construction, reconstruction, or
installation of public improvements, utilities, or facilities (other
than buildings) related to the redevelopment or use of the real property
acquired or rehabilitated pursuant to paragraphs (a) and (b) of this
section.
(g) Payment of issuance, underwriting, servicing, and other costs
associated with private sector financing of notes or other obligations
guaranteed under this subpart.
(h) Housing rehabilitation eligible under 570.202.
(i) The following economic development activities:
(1) Activities eligible under 570.203;
(2) Community economic development projects eligible under 570.204;
(3) Acquisition, construction, reconstruction, rehabilitation, or
installation of public facilities (except for buildings for the general
conduct of government), site improvements, and utilities, for an
economic development purpose.
(j) Construction of housing by nonprofit organizations for
homeownership under section 17(d) of the United States Housing Act of
1937 (Housing Development Grants Programs, 24 CFR part 850) or title VI
of the Housing and Community Development Act of 1987 (Nehemiah Housing
Opportunity Grants Program, 24 CFR part 280).
(k) A debt service reserve to be used in accordance with requirements
specified in the contract entered into pursuant to 570.705(b)(1).
24 CFR 570.704 Application requirements.
(a) Presubmission and citizen participation requirements. (1) Before
submission of an application for loan guarantee assistance to HUD, the
public entity must:
(i) Develop a proposed application that includes the following items:
(A) The community development objectives the public entity proposes to
pursue with the guaranteed loan funds.
(B) The activities the public entity proposes to carry out with the
guaranteed loan funds. Each activity must be described in sufficient
detail, including the specific provision of 570.703 under which it is
eligible and the national objective to be met, amount of guaranteed loan
funds expected to be used, and location, to allow citizens to determine
the degree to which they will be affected. The proposed application
must indicate which activities are expected to generate program income.
The application must also describe where citizens may obtain additional
information about proposed activities.
(C) A description of the pledge of grants required under
570.705(b)(2). In the case of applications by nonentitlement public
entities, the description shall note that the pledge of grants will be
made by the State.
(ii) Fulfill the applicable requirements in its citizen participation
plan developed in accordance with 570.704(a)(2).
(iii) Publish community-wide its proposed application so as to afford
affected citizens an opportunity to examine the application's contents
and to provide comments on the proposed application.
(iv) Prepare its final application. Once the public entity has held
the public hearing and published the proposed application as required by
paragraphs (a)(1) (ii) and (iii) of this section, respectively, the
public entity must consider any such comments and views received and if
the public entity deems appropriate, modify the proposed application.
Upon completion, the public entity must make the final application
available to the public. The final application must describe each
activity in sufficient detail to permit a clear understanding of the
nature of each activity, as well as identify the specific provision of
570.703 under which it is eligible, the national objective to be met,
and the amount of guaranteed loan funds to be used. The final
application must also indicate which activities are expected to generate
program income.
(v) If an application for loan guarantee assistance is to be
submitted by an entitlement public entity simultaneously with the public
entity's submission for its entitlement grant, the public entity shall
include and identify in its proposed and final statements of community
development objectives and projected use of funds prepared for its
annual grant pursuant to 570.301 the activities to be undertaken with
the guaranteed loan funds, the national objective to be met by each of
these activities, the amount of any program income expected to be
received during the program year, and the amount of guaranteed loan
funds to be used; the public entity shall also include in these
statements a description of the pledge of grants required under
570.705(b)(2). In such cases the proposed and final application
requirements of paragraphs (a)(1) (i), (iii), and (iv) of this section
will be deemed to have been met.
(2) Citizen participation plan. The public entity must develop and
follow a detailed citizen participation plan and make the plan public.
The plan must be completed and available before the application is
submitted to HUD. The plan may be the plan required for the CDBG
program, modified to include guaranteed loan funds. The public entity
is not required to hold a separate public hearing for its CDBG program
and for the guaranteed loan funds to obtain citizens' views on community
development and housing needs. The plan must set forth the public
entity's policies and procedures for:
(i) Giving citizens timely notice of local meetings and reasonable
and timely access to local meetings, information, and records relating
to the public entity's proposed and actual use of guaranteed loan funds,
including, but not limited to:
(A) The amount of guaranteed loan funds expected to be made available
for the coming year, including program income anticipated to be
generated by the activities carried out with guaranteed loan funds;
(B) The range of activities that may be undertaken with guaranteed
loan funds;
(C) The estimated amount of guaranteed loan funds (including program
income derived therefrom) proposed to be used for activities that will
benefit low and moderate income persons;
(D) The proposed activities likely to result in displacement and the
public entity's plans, consistent with the policies developed under
570.606 or 570.496a for minimizing displacement of persons as a result
of its proposed activities.
(ii) Providing technical assistance to groups representative of
persons of low and moderate income that request assistance in developing
proposals. The level and type of assistance to be provided is at the
discretion of the public entity. Such assistance need not include the
provision of funds to such groups.
(iii) Holding a minimum of two public hearings, each at a different
stage of the public entity's program, for the purpose of obtaining the
views of citizens and formulating or responding to proposals and
questions. Together the hearings must address community development and
housing needs, development of proposed activities and review of program
performance. At least one of these hearings must be held before
submission of the application to obtain the views of citizens on
community development and housing needs. Reasonable notice of the
hearing must be provided and the hearing must be held at times and
locations convenient to potential or actual beneficiaries, with
accommodation for the handicapped. The public entity must specify in
its plan how it will meet the requirement for a hearing at times and
locations convenient to potential or actual beneficiaries.
(vi) Meeting the needs of non-English speaking residents in the case
of public hearings where a significant number of non-English speaking
residents can reasonably be expected to participate.
(v) Providing affected citizens with reasonable advance notice of,
and opportunity to comment on, proposed activities not previously
included in an application and activities which are proposed to be
deleted or substantially changed in terms of purpose, scope, location,
or beneficiaries. The criteria the public entity will use to determine
what constitutes a substantial change for this purpose must be described
in the citizen participation plan.
(vi) Responding citizens complaints and grievances, including the
procedures that citizens must follow when submitting complaints and
grievances. The public entity's policies and procedures must provide
for timely written answers to written complaints and grievances within
15 working days where practicable of the receipt of the complaint.
(vii) Encouraging citizen participation, particularly by low and
moderate income persons who reside in slum or blighted areas, and other
areas in which guaranteed loan funds are proposed to be used.
(b) Submission requirements. An application for loan guarantee
assistance may be submitted at any time. The application (or final
statement) shall be submitted to the appropriate HUD field office and
shall be accompanied by the following:
(1) A description of how each of the activities to be carried out
with the guaranteed loan funds meets one of the criteria in 570.208.
(2) A schedule for repayment of the loan which identifies the sources
of repayment.
(3) For entitlement public entities only, a certification providing
assurance that the public entity possesses the legal authority to make
the pledge of grants required under 570.705(b)(2).
(4) A certification providing assurance that the public entity has
made efforts to obtain financing for activities described in the
application without the use of the loan guarantee, the public entity
will maintain documentation of such efforts for the term of the loan
guarantee, and the public entity cannot complete such financing
consistent with the timely execution of the program plans without such
guarantee.
(5) The drug-free workplace certification required under 24 CFR part
24 (appendix C).
(6) The certification regarding debarment and suspension required
under 24 CFR part 24 (appendix A).
(7) The anti-lobbying statement required under 24 CFR part 87
(Appendix A).
(8) Certifications by the public entity that:
(i) It possesses the legal authority to submit the application for
assistance under this subpart and to use the guaranteed loan funds in
accordance with the requirements of this subpart.
(ii) Its governing body has duly adopted or passed as an official act
a resolution, motion or similar action authorizing the person identified
as the official representative of the public entity to submit the
application and amendments thereto and all understandings and assurances
contained therein, and directing and authorizing the person identified
as the official representative of the public entity to act in connection
with the application to provide such additional information as may be
required.
(iii) Before submission of its application to HUD, the public entity
has:
(A) Furnished citizens with information required by
570.704(a)(2)(i);
(B) Held at least one public hearing to obtain the views of citizens
on community development and housing needs; and
(C) Prepared its application in accordance with 570.704(a)(1)(iv)
and made the application available to the public.
(iv) It is following a detailed citizen participation plan which
meets the requirements described in 570.704(a)(2).
(v) The public entity will affirmatively further fair housing, and
the guaranteed loan funds will be administered in compliance with:
(A) Title VI of the Civil Rights Act of 1964 (Pub. L. 88-352, 42
U.S.C. 2000d et seq.); and
(B) The Fair Housing Act (42 U.S.C. 3601-20).
(vi) (For entitlement public entities only) In the aggregate, at
least 70 percent of all CDBG funds, as defined at 570.3(e), to be
expended during the one, two, or three consecutive years specified by
the public entity for its CDBG program will be for activities which
benefit low and moderate income persons, as described in criteria at
570.208(a).
(vii) It will comply with the requirements governing displacement,
relocation, real property acquisition, and the replacement of low and
moderate income housing described in 570.496a or 570.606.
(viii) It will comply with the requirements of 570.200(c)(2) with
regard to the use of special assessments to recover the capital costs of
activities assisted with guaranteed loan funds.
(ix) (Where applicable, the public entity may also include the
following additional certification.) It lacks sufficient resources from
funds provided under this subpart or program income to allow it to
comply with the provisions of 570.200(c)(2), and it must therefore
assess properties owned and occupied by moderate income persons, to
recover the guaranteed loan funded portion of the capital cost without
paying such assessments in their behalf from guaranteed loan funds.
(x) It will comply with the other provisions of the Act and with
other applicable laws.
(9) In the case of an application submitted by a nonentitlement
public entity, certifications by the State that:
(i) It agrees to make the pledge of grants required under
570.705(b)(2).
(ii) It possessed the legal authority to make such pledge.
(iii) At least 70 percent of the aggregate use of CDBG grant funds
received by the State, guaranteed loan funds, and program income during
the one, two, or three consecutive years specified by the State for its
CDBG program will be for activities that benefit low and moderate income
persons.
(iv) It agrees to assume the responsibilities described in 570.710.
(c) HUD review and approval of applications. (1) HUD will normally
accept the certifications submitted with the application. HUD may,
however, consider relevant information which challenges the
certifications and require additional information or assurances from the
public entity or State as warranted by such information.
(2) The field offices shall review the application for compliance
with requirements specified in this subpart and forward the application
together with its recommendation for approval or disapproval of the
requested loan guarantee to HUD Headquarters.
(3) HUD may disapprove an application, or may approve loan guarantee
assistance for an amount less than requested, for any of the following
reasons:
(i) HUD determines that the guarantee constitutes an unacceptable
financial risk. Factors that will be considered in assessing financial
risk shall include, but not be limited to, the following:
(A) The length of the proposed repayment period;
(B) The ratio of expected annual debt service requirements to
expected annual grant amount;
(C) The likelihood that the public entity or State will continue to
receive grant assistance under this part during the proposed repayment
period; and
(D) The public entity's ability to furnish adequate security pursuant
to 570.705(b).
(ii) The requested loan amount exceeds any of the limitations
specified under 570.705(a).
(iii) Funds are not available in the amount requested.
(iv) The performance of the public entity or State under this part is
unacceptable.
(v) Activities to be undertaken with the guaranteed loan funds are
not eligible under 570.703.
(vi) Activities to be undertaken with the guaranteed loan funds do
not meet the criteria in 570.208 for compliance with one of the
national objectives of the Act.
(4) HUD will notify the public entity in writing that the loan
guarantee request has either been approved, reduced or disapproved. If
the request is reduced or disapproved, the public entity shall be
informed of the specific reasons for reduction or disapproval. If the
request is approved, HUD shall issue an offer of commitment to guarantee
obligations of the public entity or the designated public agency subject
to such conditions as HUD may prescribe, including the conditions for
release of funds described in paragraph (d) of this section.
(5) Amendments. If the public entity wishes to carry out an activity
not previously described in its application or to substantially change
the purpose, scope, location, or beneficiaries of an activity, the
amendment must be approved by HUD. Amendments by nonentitlement public
entities must also be approved by the State. The public entity shall
follow the citizen participation requirements for amendments in
570.704(a)(2).
(d) Environmental review. The public entity shall comply with HUD
environmental review procedures (24 CFR part 58) for the releases of
funds for each project carried out with loan guarantee assistance.
These procedures set forth the regulations, policies, responsibilities
and procedures governing the carrying out of environmental review
responsibilities of public entities. All public entities, including
nonentitlement public entities, shall submit the request for release of
funds and related certification for each project to be assisted with
guaranteed loan funds to the appropriate HUD Field Office.
(e) Displacement, relocation, acquisition, and replacement of
housing. The public entity (or the designated public agency) shall
comply with the displacement, relocation, acquisition and replacement of
low/moderate-income housing requirements in 570.496a or 570.606 in
connection with any activity financed in whole or in part with
guaranteed loan funds.
(Approved by the Office of Management and Budget under control number
2506-0123)
24 CFR 570.705 Loan requirements.
(a) Limitation on commitments. (1) If loan guarantee commitments
have been issued in any fiscal year in an aggregate amount equal to 50
percent of the amount approved in an appropriation act for that fiscal
year, HUD may limit the amount of commitments any one public entity may
receive during such fiscal year as follows (except that HUD will not
decrease commitments already issued):
(i) The amount any one entitlement public entity may receive may be
limited to $35,000,000.
(ii) The amount any one nonentitlement public entity may receive may
be limited to $7,000,000.
(iii) The amount any one public entity may receive may be limited to
such amount as is necessary to allow HUD to give priority to
applications containing activities to be carried out in areas designated
as enterprise zones by the Federal Government or by any State.
(2) In addition to the limitations specified in paragraph (a)(1) of
this section, the following limitations shall apply.
(i) Entitlement public entities. No commitment to guarantee shall be
made if the total outstanding notes or obligations guaranteed under this
subpart (excluding any amount defeased under the contract entered into
under 570.705(b)(1)) on behalf of the public entity and its designated
public agency would thereby exceed an amount equal to five times the
amount of the most recent grant made pursuant to 570.304 to the public
entity.
(ii) Nonentitlement public entities. No commitment to guarantee
shall be made if the total outstanding notes or obligations guaranteed
under this subpart (excluding any amount defeased under the contract
entered into under 570.705(b)(1)) on behalf of the public entity and
other public entities assisted by a State would thereby exceed an amount
equal to five times the amount of the most recent grant received by such
State under subpart I of this part.
(b) Security requirements. To assure the repayment of notes or other
obligations and charges incurred under this subpart and as a condition
for receiving loan guarantee assistance, the public entity (and State or
designated public agency, where appropriate) shall:
(1) Enter into a contract with HUD, in a form acceptable to HUD, for
repayment of notes or other obligations guaranteed hereunder;
(2) Pledge all grants made or for which the public entity or State
may become eligible under this part; and
(3) Furnish, at the discretion of HUD, such other security as may be
deemed appropriate by HUD in making such guarantees. Other security
shall be required for all loans with repayment periods of ten years or
longer. Such other security shall be specified in the contract entered
into pursuant to 570.705(b)(1). Examples of other security HUD may
require are:
(i) program income as defined in 570.500(a);
(ii) liens on real and personal property;
(iii) debt service reserves; and
(iv) increments in local tax receipts generated by activities carried
out with the guaranteed loan funds.
(c) Use of grants for loan repayment. Notwithstanding any other
provision of this part:
(1) Community Development Block Grants allocated pursuant to section
106 of the Act (including program income derived therefrom) maybe used
for:
(i) Paying principal and interest due (including such servicing,
underwriting, or other costs as may be authorized by HUD) on the notes
or other obligations guaranteed pursuant to this subpart;
(ii) Defeasing notes or other obligations guaranteed pursuant to this
subpart; and
(iii) Establishing debt service reserves as additional security
pursuant to paragraph (b)(3) of this section.
(2) HUD may apply grants pledged pursuant to paragraph (b)(2) of this
section to any amounts due under the notes or other obligations
guaranteed pursuant to this subpart, the payment of costs of issuance of
notes or other obligations guaranteed pursuant to this subpart, or to
the purchase or defeasance of such notes or other obligations, in
accordance with the terms of the contract required by paragraph (b)(1)
of this section.
(d) Debt obligations. Notes or other obligations guaranteed under
this subpart shall be in the form and denominations prescribed by HUD.
Such notes or other obligations may be issued and sold only under such
terms and conditions as may be prescribed by HUD.
(e) Taxable obligations. Interest earned on obligations guaranteed
under this subpart shall be subject to Federal taxation as provided in
section 108(j) of the Act. All public entities or designated public
agencies issuing guaranteed obligations must bear the full cost of
interest.
(f) Loan repayment period. The repayment period for a loan
guaranteed under this subpart shall not exceed twenty years.
(g) Issuance, underwriting, servicing, and other costs. Each public
entity or its designated public agency issuing guaranteed obligations
must pay the issuance, underwriting, servicing, and other costs
associated with the private sector financing of the guaranteed
obligations. Such costs are payable out of the guaranteed loan funds.
24 CFR 570.706 Federal guarantee.
The full faith and credit of the United States is pledged to the
payment of all guarantees made under this subpart. Any such guarantee
made by HUD shall be conclusive evidence of the eligibility of the
obligations for such guarantee with respect to principal and interest,
and the validity of such guarantee so made shall be incontestable in the
hands of a holder of the guaranteed obligations.
24 CFR 570.707 Applicability of rules and regulations.
(a) Entitlement public entities. The provisions of subparts A, C, J,
K and O of this part applicable to entitlement grants shall apply
equally to guaranteed loan funds and other CDBG funds, except to the
extent they are specifically modified or augmented by the provisions of
this subpart.
(b) Nonentitlement public entities. The provisions of subpart I and
the requirement the State imposes on units of general local government
receiving Community Development Block Grants or program income shall
apply equally to guaranteed loan funds and Community Development Block
Grants (including program income derived therefrom) administered by the
State under the CDBG program, except to the extent they are specifically
modified or augmented by the provisions of this subpart.
(Approved by the Office of Management and Budget under control number
2506-0123)
24 CFR 570.708 Sanctions.
(a) Entitlement public entities. The performance review procedures
described in subpart O of this part apply to entitlement public entities
receiving guaranteed loan funds. Performance deficiencies in the use of
guaranteed loan funds (or program income derived therefrom) or
violations of the contract entered into pursuant to 570.705(b)(1) may
result to the imposition of a sanction authorized pursuant to
570.900(b)(7) against the pledged entitlement grants. In addition, upon
a finding by HUD that the public entity has failed to comply
substantially with any provision of the Act with respect to either the
pledged entitlement grants or the guaranteed loan funds or program
income, HUD may take action against the pledged grants as provided in
570.913 and/or may take action as provided in the contract.
(b) Nonentitlement public entities. Performance deficiencies in the
use of guaranteed loan funds (or program income derived therefrom) or
violations of the contract entered into pursuant to 570.705(b)(1) may
result in an action authorized pursuant to 570.499 or 570.499a. In
addition, upon a finding by HUD that the public entity has failed to
comply substantially with any provision of the Act with respect to the
pledged CDBG nonentitlement funds, the guaranteed loan funds, or program
income, HUD may take action against the pledged funds as provided in
570.499a and/or may take action as provided in the contract.
24 CFR 570.709 Allocation of loan guarantee assistance.
Of the amount approved is any appropriation act for guarantee under
this subpart in any fiscal year, 70 percent shall be allocated for
entitlement public entities and 30 percent shall be allocated for
nonentitlement public entities. HUD may waive these percentage
requirements in any fiscal year to the extent that there is an absence
of qualified public entities or proposed activities from entitlement or
nonentitlement public entities.
24 CFR 570.710 State responsibilities.
The State is responsible for choosing public entities that it will
assist under this subpart. States are free to develop procedures and
requirements for determining which activities will be assisted, subject
to the requirements of this subpart. Upon approval by HUD of an
application from a nonentitlement public entity, the State will be
responsible for ensuring that the public entity complies with all
applicable requirements governing the use of the guaranteed loan funds.
The State shall administer guaranteed loan funds in the same manner as
it administers Community Development Block Grant funds distributed to
units of general local government. Notwithstanding the State's
responsibilities described above, HUD will also have responsibility for
ensuring compliance with requirements affecting the security interests
of HUD with respect to the guaranteed loan.
24 CFR 570.710 Subpart N -- Urban Renewal Provisions
Source: 41 FR 20524, May 18, 1976, unless otherwise noted.
24 CFR 570.800 General.
This subpart contains regulations governing the use of funds
available under this part for the completion of urban renewal projects
and neighborhood development programs; deductions authorized to be made
from such funds for the repayment of temporary loans outstanding in
connection with such projects and programs; and procedures for the
financial settlement of projects and programs meeting the requirements
of this subpart. For purposes of this subpart:
(a) A ''project'' or ''urban renewal project'' means an urban renewal
project or neighborhood development program being carried out in the
jurisdiction of the unit of general local government under a contract
with HUD pursuant to the provisions of Title I of the Housing Act of
1949, as amended.
(b) A ''temporary loan'' means any outstanding direct loan or pledge
of temporary loan rights for private market financing, including accrued
interest, authorized under the HUD contract for the project.
(c) An ''unearned grant'' means that portion of the total project
grant allocation, including any relocation and rehabilitation grant
allocation, in excess of the grants payable with respect to the costs
incurred and any remaining unliquidated, contingent, or disputed claims
or obligations.
(d) A ''surplus grant'' means the unearned grant remaining after full
repayment of the temporary loans.
24 CFR 570.801 Payment of the cost of completing a project.
(a) Urban renewal projects may be continued under their existing
contracts with available project funds.
(b) In addition, units of general local government may use funds made
available under this part for payment of the following costs to continue
or complete such projects:
(1) Payment of the cost of activities approved under the HUD contract
for the project with respect to which the budgeted project funds are
insufficient, and non cash local grants-in-aid which either (i) were
included in a HUD approved urban renewal financing plan dated prior to
August 22, 1974, and which are required to effectuate project completion
and financial settlement,
(ii) Are otherwise eligible under subpart C; provided, however, that
funds available under this part shall not be used to pay the cost of
local grants-in-aid with respect to which other funds were expended,
obligated or otherwise set aside by official action of the unit of
general local government prior to approval of the application for the
funds under this part. Payment of the cost of noncash local
grants-in-aid under this paragraph which are not otherwise eligible
under subpart C shall not exceed the percent of benefit approved in the
project financing plan or, with respect to supporting facilities, the 25
percent benefit or $3,500,000 maximum cost limitation applicable under
section 110(d) of Title I of the Housing Act of 1949. The use of funds
under this paragraph is not authorized with respect to incomplete
project activities or noncash local grants-in-aid remaining after the
financial settlement of a project under 570.803(a)(1), except to the
extent completion is required by the Secretary to comply with the
provisions of 570.803(d)(3) or (4).
(2) Repayment of temporary loans.
(c) Funds made available under this part for use pursuant to
paragraph (b) of this section shall be identified in the Community
Development budget as funds for completion of urban renewal projects and
their use shall be governed by the procedures under this part.
(1) The unit of general local government may use funds made available
under this part to acquire cleared project land from the local public
agency for a public use or for subsequent disposition to redevelopers.
Such acquisition shall be at the fair use value of the property provided
under section 110(c)(4) of Title I of the Housing Act of 1949, as
amended, and subject to covenants under the provisions of which:
(i) The use of the property by the unit of general local government
or its assignees shall be in accordance with the applicable urban
renewal plan;
(ii) Any improvements on such property required by the urban renewal
plan shall be begun within a reasonable time after the property is
acquired for purposes of redevelopment by the unit of general local
government or its assignees.
(iii) Any proposed reconveyance of such property by the unit of
general local government for purposes of redevelopment shall be subject
to the public disclosure requirements otherwise applicable to local
public agencies in the disposition of project land to redevelopers under
section 105(e) of Title I of the Housing Act of 1949, as amended.
(iv) Discrimination upon the basis of race, color, religion, sex, or
national origin, in the sale, lease or rental, or in the use or
occupancy of such land or any improvements erected or to be erected
thereon shall be prohibited, and the unit of general local government
and the United States shall be beneficiaries of and entitled to enforce
such covenant.
(2) In the subsequent disposition of project land acquired by the
unit of general local government pursuant to paragraph (c)(1) of this
section, the provisions of section 110(c)(4) of Title I of the Housing
Act of 1949, regarding fair use value shall not apply. Any proceeds
received by the unit of general local government in the event of such
disposition shall be treated as program income in accordance with
570.504;
(d) Use of funds made available under this part for the completion of
urban renewal projects shall not increase the maximum loan or grant
amount or the requirements for the contribution of local grants-in-aid
under the HUD contract for the project.
(41 FR 20524, May 18, 1976, as amended at 43 FR 8447, Mar. 1, 1978;
53 FR 8064, Mar. 11, 1988)
24 CFR 570.802 Repayment of temporary loans.
(a) Determination of Federal Government's financial interest. The
Secretary will review urban renewal projects in consultation with local
public agencies and units of general local government to determine
whether the Federal Government's financial interest in such projects
will be sufficiently protected. The Secretary may request submission of
a local plan for repayment of temporary loans in connection with such
determinations.
(1) The Federal Government's financial interest in existing urban
renewal projects shall be determined to be sufficiently protected if the
Secretary finds that all temporary loans made or authorized to be made
can be repaid without additional project grants, taking into
consideration the costs incurred or to be incurred, the estimated
proceeds upon any sale or disposition of property, grants approved under
the HUD contract for the project, and any other funds which are to be
provided for completion of the projects, including the repayment of
temporary loans.
(2) In estimating the property disposition proceeds pursuant to
paragraph (a)(1), the Secretary will consider the land marketing history
of the project, recent appraisals and market studies, the length of time
land has been available for sale, comparable sales data, and other
generally available data relevant to the value and marketability of
remaining land; Provided, however, that with respect to the
determinations for Fiscal Years 1976 and 1977, the Secretary shall take
into consideration only those proceeds reasonably expected to be paid
into the Project Temporary Loan Repayment Account by the end of Fiscal
Year 1978 in the event that:
(i) The project has unsold land which has been available for at least
three years and is not under contract of sale; or
(ii) Twenty per centum of the unit of general local government's
entitlement grant will be insufficient over a three-year period to
provide for any current or anticipated deficit.
The Fiscal Year 1978 base year for estimating land proceeds may be
waived if the Secretary determines that the Federal financial interest
is otherwise sufficiently protected.
(b) Deductions at the initiative of the Secretary. The Secretary
may, after consultation with the chief executive of the unit of general
local government and the local public agency, deduct up to 20 percent of
the funds made available under this part in any fiscal year to the unit
of general local government from allocations pursuant to 570.101, for
application to the repayment of temporary loans if the Secretary
determines that the Federal financial interest will not otherwise be
sufficiently protected. In determining the amount to be deducted, the
Secretary shall take into consideration the factors considered in making
the findings under 570.802(a)(1).
24 CFR 570.803 Financial settlement of projects.
(a) Upon written request of the local public agency carrying out the
project, approved by resolution of the governing body of the unit of
general local government, the Secretary shall approve a financial
settlement of any project subject to the requirements of this section
and 570.804, which will result in full repayment of all temporary
loans. Up to the full amount of the unearned grant, as well as any
additional funds made available for such purpose under the provisions of
570.801(b)(2) may be applied to repayment of the temporary loans so as
to effect the financial settlement. Such financial settlements may be
approved by the Secretary pursuant to a financing plan revised on the
basis of the noncash local grants-in-aid actually provided. Subject to
the requirements of paragraph (b) of this section, any surplus grant
funds remaining after settlement will be made available to the unit of
general local government for use in accordance with the provisions of
this part.
The provisions for financial settlement under this section are
authorized for any project with respect to the settlement of which one
or more of the following conditions apply.
(1) All approved project activities (other than the sale of land) for
which project funds are available, or noncash local grants-in-aid which
would otherwise have been required, will not have been substantially
completed prior to the date of the financial settlement;
(2) All available project funds have been exhausted prior to
completion of the approved project activities;
(3) The approved project activities have been completed except for
the sale of all project land;
(4) The approved project activities have been completed and the
settlement will result in a surplus grant.
(b) The release of surplus grant funds may be subject to completion
of an audit and satisfaction of any audit exceptions with respect to the
project, or any other projects located in the unit of general local
government; provided, that the surplus grant funds or other funds
available under the provisions of this part shall not be used for
payment of ineligible project costs.
The Secretary may require the application of surplus grant funds to
any of the following purposes as a condition to financial settlement:
(1) Activities eligible for funding under 570.801(b) in any other
projects located in the unit of general local government for which the
Secretary determines insufficient project funds may be available,
consisting of (i) the repayment of temporary loans; (ii) the completion
of approved project activities which are deemed essential to protect the
Federal interest in housing for which Federal subsidies have been
committed or loans or mortgage insurance provided; (iii) the completion
of approved project activities which are deemed essential to assure
compliance with any applicable low and moderate income housing
requirements under sections 105(f) and 105(h) of Title I of the Housing
Act of 1949, as amended; and (iv) the payment of any obligations under
the Uniform Relocation Assistance and Real Property Acquisition Policies
Act of 1970.
(2) With respect to the settlement of projects authorized under
paragraph (a)(1), the completion of any approved project activities or
noncash local grants-in-aid which are deemed essential to meet the
requirements of paragraphs (e)(3) and (4) and are eligible for funding
under 570.801(b).
(c) The financial settlement of a project under this section shall be
subject to the environmental review requirements of 24 CFR 58.20.
(d) Prior to financial settlement, the local public agency carrying
out the project, and the unit of general local government in which the
project is located, must execute a closeout agreement pursuant to the
requirements of 570.804(b) (7).
(e) Approval of requests for financial settlement under paragraph
(a)(1) of this section shall be subject to the following additional
requirements with respect to: Any incomplete approved project
activities which would otherwise be continued or completed with
available project funds; any noncash local grants-in-aid which would
otherwise be provided under the HUD contract for the project; and the
use of any surplus grant funds remaining after the settlement:
(1) The proposed action must not be plainly inappropriate to meeting
the needs and objectives stated in the unit of general local
government's Community Development Plan;
(2) The proposed action must be subjected to the citizen
participation requirements under this part, and must be reviewed by the
Urban Renewal Project Area Committee where one exists;
(3) Any proposed changes in the scope of renewal treatment must not
adversely affect housing for which Federal subsidies have been committed
or loans or mortgage insurance provided;
(4) Any proposed change in the scope of renewal treatment must not be
inconsistent with the satisfaction of any remaining low and moderate
income housing requirements under sections 105(f) and 105(h) of Title I
of the Housing Act of 1949; as amended;
(5) The maintenance of any occupied residential project property
owned by the local public agency at the time of the settlement,
including such property thereafter transferred for use or disposition to
the unit of general local government, with respect to which relocation
activities have not been completed, must be consistent with property
management standards applicable to the local public agency under urban
renewal requirements.
(6) The unit of general local government shall be responsible to
assess the effect of the proposed action on any third party obligations
under State and local law.
24 CFR 570.804 Application for approval of financial settlement.
Financial settlement will be approved if the Secretary finds that all
applicable requirements of 570.803 have been met after completion of
the following actions:
(a) Preliminary request. A preliminary request shall be submitted in
order to determine what actions will be necessary to comply with the
requirements of 570.803. The request shall include a report on the
status of project activities, an estimate of the amount of surplus grant
funds which may remain after financial settlement, and information
regarding the financial status of any other projects in the locality of
the unit of general local government. The Secretary will review the
request and will advise the applicant whether any approved project
activities must be completed or noncash local grants-in-aid provided in
order to comply with requirements of 570.803(e)(3) and (4) if the
settlement is for a project authorized under 570.803(a)(1), and whether
any surplus grant funds will be required to be applied under the
provisions of 570.803(b). The applicant may then proceed to prepare a
formal application, including performance of any environmental reviews
required pursuant to 24 CFR 58.20.
(b) Application for financial settlement and release of surplus
funds. The application for financial settlement and release of any
surplus funds may be submitted either as a program year amendment
described in 570.312 or in conjunction with the unit of general local
government's application for funds under this part, submitted in
accordance with 570.300(b) or (c), Provided, however, That the review
and approval requirements of 570.311(c) shall not apply. A unit of
general local government which receives no entitlement amount under
subpart B shall submit an original application in accordance with the
requirements of 570.300(c). The application shall include:
(1) A written request for financial settlement submitted by the local
public agency carrying out the project and concurred in by the governing
body of the unit of general local government in which the project is
located.
(2) A description of the steps the applicant has taken to comply with
the applicable requirements of 570.803 and any conditions required by
HUD pursuant to review of the preliminary request.
(3) A statement indicating the extent to which incomplete activities
are proposed to be continued or completed after financial settlement of
a project under 570.803(a)(1).
(4) A Certificate of Completion and Gross and Net Project Costs for
the project, with appropriate modifications, reflecting the authority
and nature of the settlement under the applicable provisions of
570.803(a), and which includes the cost of any remaining incurred,
disputed, contingent and unliquidated relocation or other claims and
obligations.
(5) A certification that environmental review required of the
applicant pursuant to 24 CFR 58.20 has been completed, and that the
citizen participation requirements under 570.803(d)(2) have been
complied with.
(6) A Community Development Program and Budget which identifies the
activities to be carried out with any surplus funds or other funds
included in the letter of credit for the purpose of liquidating costs
identified pursuant to 570.804(b)(4).
(7) A closeout agreement for concurrence by the Secretary, executed
by the local public agency carrying out the project and by the unit of
general local government in which the project is located, under the
provisions of which:
(i) All remaining project property owned by the local public agency
shall be identified and the proceeds from the sale or lease of such
property after financial settlement shall be treated as program income
of the unit of general local government under the provisions 570.504;
provided, however, that such proceeds may be applied to the
reimbursement of any funds of the unit of general local government,
other than funds made available under this part for cash local
grants-in-aid required on the basis of incurred net project costs, which
were used for the payment of temporary loans for the project. Any
remaining project land may be retained for disposition by the local
public agency, or transferred to the unit of general local government
for use or disposition subject to the covenants specified in
570.801(c)(1)(i), (ii), (iii) and (iv). In the disposition of such
land, the provisions of section 110(c)(4) of title I of the Housing Act
of 1949, as amended, regarding fair use value shall not apply.
(ii) All low- and moderate-income housing required to be provided due
to the demolition or removal of residential structures with project
funds, pursuant to section 105(h) of Title I of the Housing Act of 1949,
as amended, shall be set forth, and the units actually provided shall be
identified as to general location and total number. To the extent such
housing has not been provided, it shall be incorporated and identified
in the unit of general local government's Housing Assistance Plan,
described in 570.306.
(iii) All low- and moderate-income housing requirements with respect
to which a predominantly residential project was obligated, pursuant to
section 105(f) of the Title I of the Housing Act of 1949, as amended,
shall be set forth, and the units actually provided shall be identified
as to general location and total number. To the extent such housing has
not been provided, it shall be incorporated and identified in the unit
of general local government's Housing Assistance Plan. Any change in
such remaining housing obligations, or in previously approved land uses
affecting the remaining housing obligations, shall require the approval
of the Secretary as long as the area remains predominantly residential
under the provisions of the applicable urban renewal plan.
(iv) Any costs or obligations incurred in connection with the project
with respect to claims which are disputed, contingent, unliquidated or
unidentified, and for the payment of which insufficient project funds
have been reserved under the financial settlement, shall be borne by the
unit of general local government. Such additional expenses may be paid
from funds made available under this part.
(v) Provision is made for any special conditions regarding the
obligations of the local public agency and the unit of general local
government with respect to the requirements of 570.803.
(vi) The obligations under the close-out agreement are made
specifically subject to the Program Management requirements of subpart
O.
(c) Staged use of surplus funds. If the unit of general local
government wishes to stage the use of surplus urban renewal funds over a
period of years, it may request the Secretary to make the funds
available on a schedule specified by the unit of general local
government. In this event, the community development plan summary
included in the application or amendment shall specify the total usage
of funds, and the annual Community Development Program and budget
submissions shall include only the surplus funds proposed to be used in
the program year.
24 CFR 570.804 Subpart O -- Performance Reviews
Source: 53 FR 34466, Sept. 6, 1988, unless otherwise noted.
24 CFR 570.900 General.
(a) Performance review authorities -- (1) Entitlement and
HUD-administered Small Cities performance reviews. Section 104(e)(1) of
the Act requires that the Secretary shall, at least on an annual basis,
make such reviews and audits as may be necessary or appropriate to
determine whether the recipient has carried out its activities, and
where applicable, its housing assistance plan in a timely manner,
whether the recipient has carried out those activities and its
certifications in accordance with the requirements and the primary
objectives of the Act and with other applicable laws, and whether the
recipient has a continuing capacity to carry out those activities in a
timely manner.
(2) Urban Development Action Grant (UDAG) performance reviews.
Section 119(g) of the Act requires the Secretary, at least on an annual
basis, to make such reviews and audits of recipients of Urban
Development Action Grants as necessary to determine whether the
recipient's progress in carrying out the approved activities is
substantially in accordance with the recipient's approved plans and
timetables.
(b) Performance review procedures. This paragraph describes the
review procedures the Department will use in conducting the performance
reviews required by sections 104(e) and 119(g) of the Act:
(1) The Department will determine the performance of each entitlement
and HUD-administered small cities recipient in accordance with section
104(e)(1) of the Act by reviewing for compliance with the requirements
described in 570.901 and by applying the performance criteria described
in 570.902 and 570.903 relative to carrying out activities and, where
applicable, the housing assistance plan in a timely manner. The review
criteria in 570.904 will be used to assist in determining if the
recipient's program is being carried out in compliance with civil rights
requirements.
(2) The Department will review UDAG projects and activities to
determine whether such projects and activities are being carried out
substantially in accordance with the recipient's approved plans and
schedules. The Department will also review to determine if the
recipient has carried out its UDAG program in accordance with all other
requirements of the Grant Agreement and with all applicable requirements
of this part.
(3) In conducting performance reviews, HUD will primarily rely on
information obtained from the recipient's performance report, records
maintained, findings from on-site monitoring, audit reports, and the
status of the letter of credit. Where applicable, the Department may
also consider relevant information pertaining to a recipient's
performance gained from other sources, including litigation, citizen
comments and other information provided by the recipient. A recipient's
failure to maintain records in the prescribed manner may result in a
finding that the recipient has failed to meet the applicable requirement
to which the record pertains.
(4) If HUD determines that a recipient has not met a civil rights
review criterion in 570.904, the recipient will be provided an
opportunity to demonstrate that it has nonetheless met the applicable
civil rights requirement.
(5) If HUD finds that a recipient has failed to comply with a program
requirement or has failed to meet a performance criterion in 570.902 or
570.903, the recipient will be provided an opportunity to contest the
finding.
(6) If the recipient is unsuccessful in contesting the validity of a
finding of noncompliance or a finding that the recipient has failed to
carry out its activities or its housing assistance plan in a timely
manner, HUD may require the recipient to undertake appropriate
corrective or remedial actions as specified in 570.910. HUD will
undertake the continuing capacity review required by 570.905 prior to
selecting the corrective or remedial actions.
(7) If the recipient fails to undertake appropriate corrective or
remedial actions which resolve the deficiency to the satisfaction of the
Secretary, the Secretary may impose a sanction pursuant to 570.911,
570,912, or 570.913, as applicable.
24 CFR 570.901 Review for compliance with the primary and national
objectives and other program requirements.
HUD will review each entitlement and HUD-administered small cities
recipient's program to determine if the recipient has carried out its
activities and certifications in compliance with:
(a) The requirement described at 570.200(a)(3) that, consistent with
the primary objective of the Act, not less than 60 percent of the
aggregate amount of CDBG funds received by the recipient shall be used
over the period specified in its certification for activities that
benefit low and moderate income persons;
(b) The requirement described at 570.200(a)(2) that each CDBG
assisted activity meets the criteria for one or more of the national
objectives described at 570.208;
(c) All other activity eligibility requirements defined in subpart C
of this part;
(d) For entitlement grants only, the presubmission requirements at
570.301, the amendment requirements at 570.305 and the displacement
policy requirements at 570.606;
(e) For HUD-administered small cities grants only, the citizen
participation requirements at 570.431, the amendment requirements at
570.434 and the displacement policy requirements of 570.606;
(f) The grant administration requirements described in subpart J;
(g) Other applicable laws and program requirements described in
subpart K; and
(h) Where applicable, the requirements pertaining to loan guarantees
(subpart M) and urban renewal completions (subpart N).
24 CFR 570.902 Review to determine if CDBG funded activities are being
carried out in a timely manner.
HUD will review the performance of each entitlement and
HUD-administered small cities recipient to determine whether each
recipient is carrying out its CDBG assisted activities in a timely
manner.
(a) Entitlement recipients. (1) Before the funding of the next
annual grant and absent substantial evidence to the contrary, the
Department will consider an entitlement recipient to be carrying out its
CDBG activities in a timely manner if, 60 days prior to the end of its
current program year:
(i) The amount of entitlement grant funds available to the recipient
under grant agreements but undisbursed by the U.S. Treasury is less than
1.5 times the entitlement grant amount for its current program year;
and,
(ii) In cases where the recipient has received at least two
consecutive entitlement grants, the amount of entitlement grant funds
disbursed by the U.S. Treasury to the recipient during the previous
twelve month period is equal to or greater than one-half of the
entitlement grant amount for its current program year.
(2) Where it is known that a recipient has an unusually large amount
of program income funds on hand (relative to the grant amount), HUD may
determine that the amount of such funds is sufficient to override the
conclusion that would otherwise be made based solely on the criteria in
paragraph (a)(1) of this section.
(3) HUD may also review an entitlement recipient's progress at other
times during the year to determine whether the recipient's rate of fund
expenditure is likely to fall outside of the criteria in paragraph
(a)(1)(i) of this section, in which case the Department will notify the
recipient of a potential problem with the lack of timeliness in carrying
out its activities.
(b) HUD-administered Small Cities program. The Department will,
absent substantial evidence to the contrary, consider that a
HUD-administered small cities recipient is carrying out its CDBG funded
activities in a timely manner if the schedule for carrying out its
activities as contained in the approved application, or subsequent
amendment, is being substantially met.
24 CFR 570.903 Review to determine if the housing assistance plan (HAP)
is being carried out in a timely manner.
(a) HUD will review an entitlement grant recipient's HAP performance
prior to HUD's approval of each succeeding year's HAP and prior to
acceptance of a grant recipient's HAP certification in order to
determine whether the recipient is achieving its specific HAP goals in a
timely manner.
(b) Absent substantial evidence to the contrary, HUD will consider
that an entitlement recipient is carrying out its approved HAP in a
timely manner if at the end of each of the first two years governed by
the HAP, the recipient has substantially met each annual goal for that
year, and if at the end of the third year of the period governed by the
HAP, a recipient has substantially met its three year goals. For the
three year period, this standard also requires that the provision of
rental subsidies has been made in reasonable proportion to the goal for
each household type as identified in the HAP.
(c) For a recipient whose HAP performance does not fall within the
criteria in paragraph (b) of this section, a review shall be conducted
which considers the extent to which the recipient made use of housing
assistance resources that were available to meet the applicable HAP
goals. Where such consideration of the use of available resources
results in a determination that the recipient has taken all reasonable
actions to use available resources and has not impeded the provision of
housing assistance which would have been consistent with the HAP goals,
HUD may also consider, under such circumstances, that a recipient has
carried out its HAP in a timely manner.
(d) In measuring progress in achieving one-year goals, HUD will
consider the extent to which the recipient has made or received firm
financial commitments which have not subsequently been canceled for
specific projects, households or units identified in the HAP by
household and tenure type within a two year period. Progress in
achieving the three-year goal will consider the movement of firm
financial commitments to start of rehabilitation or construction, or in
the case of the Section 8 Housing Assistance Payment Program -- Existing
Housing (24 CFR part 882) certificates or vouchers under section 8(o) of
the United States Housing Act of 1937 to occupancy, within a reasonable
period of time. Such reasonable period of time may be within the
three-year period covered by the applicable three-year goals, or, for
firm financial commitments received late in the three-year period, it
may be a year or more into the next three-year cycle.
(e) If HUD determines that an entitlement grant recipient has not met
the criteria outlined in paragraph (b) or (c) of this section, the
recipient will be notified and provided a reasonable opportunity to
demonstrate to the satisfaction of the Secretary that the recipient has
carried out its HAP in a timely manner considering all relevant
circumstances and the recipient's actions and lack of actions affecting
the provision of housing assistance within its jurisdiction. Failure to
so demonstrate will be cause for HUD to find that the recipient has
failed to carry out its HAP in a timely manner. The response by the
recipient should describe:
(1) The factors which prevented it from meeting those HAP goals it
failed to meet; and
(2) The actions which were taken to facilitate achieving its HAP
goals, including the following where applicable:
(i) The removal of impediments under local ordinances and land use
requirements to the development of assisted housing;
(ii) The formation of a local housing authority or execution of an
agreement with a housing authority having powers to provide assisted
housing within the jurisdiction of the recipient, when necessary to
carry out the HAP;
(iii) The provision of sites, improvements to sites, and/or
extensions of utilities to sites for assisted housing new construction,
provided that such sites meet the applicable HUD site and neighborhood
standards;
(iv) Establishment of a housing rehabilitation program or increased
use of an existing one where substantial need for rehabilitation is
evident; and
(v) Cooperation with a local housing authority or other proper
administrative body to facilitate operation of the Section 8 Housing
Assistance Payment Program -- Existing Housing (or a comparable rental
assistance program) through such means as landlord information programs
and identification of available rental unit inventories.
24 CFR 570.904 Equal Opportunity and Fair Housing Review Criteria.
(a) General. (1) Where the criteria in this section are met, the
Department will presume that the recipient has carried out its
CDBG-funded program in accordance with civil rights certifications and
civil rights requirements of the Act relating to equal employment
opportunity, equal opportunity in services, benefits and participation,
and is affirmatively furthering fair housing unless:
(i) There is evidence which shows, or from which it is reasonable to
infer, that the recipient, motivated by considerations of race, color,
religion where applicable, sex, national origin, age or handicap, has
treated some persons less favorably than others, or
(ii) There is evidence that a policy, practice, standard or method of
administration, although neutral on its face, operates to deny or affect
adversely in a significantly disparate way the provision of employment
or services, benefits or participation to persons of a particular race,
color, religion where applicable, sex, national origin, age or handicap,
or fair housing to persons of a particular race, color, religion, sex,
or national origin, or
(iii) Where the Secretary required a further assurance pursuant to
570.304 in order to accept the recipient's prior civil rights
certification, the recipient has failed to meet any such assurance.
(2) In such instances, or where the review criteria in this section
are not met, the recipient will be afforded an opportunity to present
evidence that it has not failed to carry out the civil rights
certifications and fair housing requirements of the Act. The
Secretary's determination of whether there has been compliance with the
applicable requirements will be made based on a review of the
recipient's performance, evidence submitted by the recipient, and all
other available evidence. The Department may also initiate separate
compliance reviews under title VI of the Civil Rights Act of 1964 or
section 109 of the Act.
(b) Review for equal opportunity. Section 570.601(a) sets forth the
general requirements for title VI of the Civil Rights Act of 1964 and
570.602 sets forth the general requirements for section 109 of the Act.
Together these provisions prohibit discrimination in any program or
activity funded in whole or in part with funds made available under this
part.
(1) Review for equal employment opportunity. The Department will
presume that a recipient's hiring and employment practices have been
carried out in compliance with its equal opportunity certifications and
requirements of the Act. This presumption may be rebutted where, based
on the totality of circumstances, there has been a deprivation of
employment, promotion, or training opportunities by a recipient to any
person within the meaning of section 109. The extent to which persons
of a particular race, gender, or ethnic background are represented in
the workforce may in certain circumstances be considered, together with
complaints, performance reviews, and other information.
(2) Review of equal opportunity in services, benefits and
participation. The Department will presume a recipient is carrying out
its programs and activities in accordance with the civil rights
certifications and requirements of the Act. This presumption may be
rebutted where, based on the totality of circumstances, there has been a
deprivation of services, benefits, or participation in any program or
activity funded in whole or in part with block grant funds by a
recipient to any person within the meaning of section 109. The extent
to which persons of a particular race, gender, or ethnic background
participate in a program or activity may in certain circumstances be
considered, together with complaints, performance reviews, and other
information.
(c) Fair housing review criteria. Section 570.601(b) sets forth the
general requirements for the Fair Housing Act (42 U.S.C. 3601-20) and
the grantee's certification that it will affirmatively further fair
housing. In reviewing a recipient's actions in carrying out its housing
and community development activities in a manner to affirmatively
further fair housing in the private and public housing sectors, absent
independent evidence to the contrary, the Department will consider that
a recipient has taken such actions in accordance with its certification
if the recipient meets the following review criteria:
(1) The recipient has conducted an analysis to determine the
impediments to fair housing choice in its housing and community
development program and activities. The term ''fair housing choice''
means the ability of persons regardless of race, color, religion, sex,
handicap, familial status or national origin, of similar income levels
to have available to them the same housing choices. This analysis shall
include a review for impediments to fair housing choice in the following
areas:
(i) The sale or rental of dwellings;
(ii) The provision of housing brokerage services;
(iii) The provision of financing assistance for dwellings;
(iv) Public policies and actions affecting the approval of sites and
other building requirements used in the approval process for the
construction of publicly assisted housing;
(v) The administrative policies concerning community development and
housing activities, such as urban homesteading, multifamily
rehabilitation, and activities causing displacement, which affect
opportunities of minority households to select housing inside or outside
areas of minority concentration; and
(vi) Where there is a determination of unlawful segregation or other
housing discrimination by a court or a finding of noncompliance by HUD
regarding assisted housing within a recipient's jurisdiction, an
analysis of the actions which could be taken by the recipient to help
remedy the discriminatory condition, including actions involving the
expenditure of funds made available under this part.
(2) Based upon the conclusions of the analysis in (1) above, the
recipient has taken lawful steps, consistent with this part, relating to
housing and community development to overcome the effects of conditions
that limit fair housing choice within the recipient's jurisdiction.
Such actions may include:
(i) Enactment and enforcement of an ordinance providing for fair
housing consistent with the federal fair housing law;
(ii) Support of the administration and enforement of state fair
housing laws providing for fair housing consistent with the federal fair
housing law;
(iii) Participation in voluntary partnerships developed with public
and private organizations to promote the achievement of the goal of fair
housing choice (including implementation of a locally-developed and
HUD-approved New Horizons comprehensive fair housing plan);
(iv) Contracting with private organizations, including private fair
housing organizations, where such support will bring about actions
consistent with titles VI and VIII, to address the impediments
identified in the analysis described in paragraph (c)(1) of this
section;
(v) Activities which assist in remedying findings or determinations
of unlawful segregation or other discrimination involving assisted
housing within the recipient's jurisdiction.
(vi) Other actions consistent with law determined to be appropriate
based upon the conclusions of the analysis.
(d) Actions to use minority and women's business firms. The
Department will review a recipient's performance to determine if it has
administered its activities funded with assistance under this part in a
manner to encourage use of minority and women's business enterprises
described in Executive Orders 11625, 12432 and 12138, and 24 CFR
85.36(e). In making this review, the Department will determine if the
grantee has taken actions required under 85.36(e) of this chapter, and
will review the effectiveness of those actions in accomplishing the
objectives of 85.36(e) of this chapter and the Executive Orders. No
recipient is required by this part to attain or maintain any particular
statistical level of participation in its contracting activities by
race, ethnicity, or gender of the contractor's owners or managers.
(53 FR 34466, Sept. 6, 1988; 53 FR 41330, Oct. 21, 1988, as amended
at 54 FR 37411, Sept. 9, 1989)
24 CFR 570.905 Review of continuing capacity to carry out CDBG funded
activities in a timely manner.
If HUD determines that the recipient has not carried out its CDBG
activities and certifications in accordance with the requirements and
criteria described in 570.901 or 570.902, HUD will undertake a further
review to determine whether or not the recipient has the continuing
capacity to carry out its activities in a timely manner. In making the
determination, the Department will consider the nature and extent of the
recipient's performance deficiencies, types of corrective actions the
recipient has undertaken and the success or likely success of such
actions.
24 CFR 570.906 Review of urban counties.
In reviewing the performance of an urban county, HUD will hold the
county accountable for the actions or failures to act of any of the
units of general local government participating in the urban county.
Where the Department finds that a participating unit of government has
failed to cooperate with the county to undertake or assist in
undertaking an essential community development or assisted housing
activity and that such failure results, or is likely to result, in a
failure of the urban county to meet any requirement of the program or
other applicable laws, the Department may prohibit the county's use of
funds made available under this part for that unit of government. HUD
will also consider any such failure to cooperate in its review of a
future cooperation agreement between the county and such included unit
of government described at 570.307(b)(2).
570.907 -- 570.909 (Reserved)
24 CFR 570.910 Corrective and remedial actions.
(a) General. Consistent with the procedures described in
570.900(b), the Secretary may take one or more of the actions described
in paragraph (b) of this section. Such actions shall be designed to
prevent a continuation of the performance deficiency; mitigate, to the
extent possible, the adverse effects or consequences of the deficiency;
and prevent a recurrence of the deficiency.
(b) Actions authorized. The following lists the actions that HUD may
take in response to a deficiency identified during the review of a
recipient's performance:
(1) Issue a letter of warning advising the recipient of the
deficiency and putting the recipient on notice that additional action
will be taken if the deficiency is not corrected or is repeated;
(2) Recommend, or request the recipient to submit, proposals for
corrective actions, including the correction or removal of the causes of
the deficiency, through such actions as:
(i) Preparing and following a schedule of actions for carrying out
the affected CDBG activities, consisting of schedules, timetables and
milestones necessary to implement the affected CDBG activities;
(ii) Establishing and following a management plan which assigns
responsibilities for carrying out the actions identified in paragraph
(b)(2)(i) of this section;
(iii) For entitlement recipients, canceling or revising affected
activities which are no longer feasible to implement due to the
deficiency and reprogramming funds from such affected activities to
other eligible activities (pursuant to the citizen participation
requirements in subpart D); or
(iv) Other actions which will serve to prevent a continuation of the
deficiency, mitigate (to the extent possible) the adverse effects or
consequences of the deficiency, and prevent a recurrence of the
deficiency;
(3) Advise the recipient that a certification will no longer be
acceptable and that additional assurances will be required;
(4) Advise the recipient to suspend disbursement of funds for the
deficient activity;
(5) Advise the recipient to reimburse its program account or letter
of credit in any amounts improperly expended and reprogram the use of
the funds in accordance with applicable requirements;
(6) Change the method of payment to the recipient from a letter of
credit basis to a reimbursement basis;
(7) In the case of claims payable to HUD or the U.S. Treasury,
institute collection procedures pursuant to subpart B of 24 CFR part 17;
and
(8) In the case of an entitlement recipient, condition the use of
funds from a succeeding fiscal year's allocation upon appropriate
corrective action by the recipient pursuant to 570.304(d). The failure
of the recipient to undertake the actions specified in the condition may
result in a reduction, pursuant to 570.911, of the entitlement
recipient's annual grant by up to the amount conditionally granted.
24 CFR 570.911 Reduction, withdrawal, or adjustment of a grant or other
appropriate action.
(a) Opportunity for an informal consultation. Prior to a reduction,
withdrawal, or adjustment of a grant or other appropriate action, taken
pursuant to paragraph (b), (c), or (d) of this section, the recipient
shall be notified of such proposed action and given an opportunity
within a prescribed time period for an informal consultation.
(b) Entitlement grants. Consistent with the procedures described in
570.900(b), the Secretary may make a reduction in the entitlement grant
amount either for the succeeding program year or, if the grant had been
conditioned, up to the amount that had been conditioned. The amount of
the reduction shall be based on the severity of the deficiency and may
be for the entire grant amount.
(c) HUD-administered small cities grants. Consistent with the
procedures described in 570.900(b), the Secretary may adjust, reduce or
withdraw the grant or take other actions as appropriate, except that
funds already expended on eligible approved activities shall not be
recaptured or deducted from future grants.
(d) Urban Development Action Grants. Consistent with the procedures
described in 570.900(b), the Secretary may adjust, reduce or withdraw
the grant or take other actions as appropriate, except that funds
already expended on eligible approved activities shall not be recaptured
or deducted from future grants made to the recipient.
24 CFR 570.912 Nondiscrimination compliance.
(a) Whenever the Secretary determines that a unit of general local
government which is a recipient of assistance under this part has failed
to comply with 570.602, the Secretary shall notify the governor of such
State or chief executive officer of such unit of general local
government of the noncompliance and shall request the governor or the
chief executive officer to secure compliance. If within a reasonable
period of time, not to exceed sixty days, the governor or chief
executive officer fails or refuses to secure compliance, the Secretary
is authorized to:
(1) Refer the matter to the Attorney General with a recommendation
that an appropriate civil action be instituted;
(2) Exerise the powers and functions provided by title VI of the
Civil Rights Act of 1964 (42 U.S.C. 2000d);
(3) Exercise the powers and functions provided for in 570.913; or
(4) Take such other action as may be provided by law.
(b) When a matter is referred to the Attorney General pursuant to
paragraph (a)(1) of this section, or whenever the Secretary has reason
to believe that a State or a unit of general local government is engaged
in a pattern or practice in violation of the provisions of 570.602, the
Attorney General may bring a civil action in any appropriate United
States district court for such relief as may be appropriate, including
injunctive relief.
24 CFR 570.913 Other remedies for noncompliance.
(a) If the Secretary finds after reasonable notice and opportunity
for hearing that a recipient has failed to comply substantially with any
provision of this part, the Secretary, until he/she is satisfied that
there is no longer any such failure to comply, shall:
(1) Terminate payments to the recipient;
(2) Reduce payments to the recipient by an amount equal to the amount
of such payments which were not expended in accordance with this part;
or
(3) Limit the availability of payments to programs or activities not
affected by such failure to comply.
Provided, however, that the Secretary may on due notice suspend
payments at any time after the issuance of a notice of opportunity for
hearing pursuant to paragraph (c)(1) of this section, pending such
hearing and a final decision, to the extent the Secretary determines
such action necessary to preclude the further expenditure of funds for
activities affected by such failure to comply.
(b) In lieu of, or in addition to, any action authorized by paragraph
(a) of this section, the Secretary may, if he/she has reason to believe
that a recipient has failed to comply substantially with any provision
of this part;
(1) Refer the matter to the Attorney General of the United States
with a recommendation that an appropriate civil action be instituted;
and
(2) Upon such a referral, the Attorney General may bring a civil
action in any United States district court having venue thereof for such
relief as may be appropriate, including an action to recover the amount
of the assistance furnished under this part which was not expended in
accordance with it, or for mandatory or injunctive relief;
(c) Proceedings. When the Secretary proposes to take action pursuant
to this section, the respondent is the unit of general local government
or State receiving assistance under this part. These procedures are to
be followed prior to imposition of a sanction described in paragraph (a)
of this section:
(1) Notice of opportunity for hearing: The Secretary shall notify
the respondent in writing of the proposed action and of the opportunity
for a hearing. The notice shall:
(i) Specify, in a manner which is adequate to allow the respondent to
prepare its response, allegations with respect to a failure to comply
substantially with a provision of this part;
(ii) State that the hearing procedures are governed by these rules;
(iii) State that a hearing may be requested within 10 days from
receipt of the notice and the name, address and telephone number of the
person to whom any request for hearing is to be addressed:
(iv) Specify the action which the Secretary proposes to take and that
the authority for this action is section 111(a) of the Act;
(v) State that if the respondent fails to request a hearing within
the time specified a decision by default will be rendered against the
respondent; and
(vi) Be sent to the respondent by certified mail, return receipt
requested.
(2) Initiation of hearing. The respondent shall be allowed at least
10 days from receipt of the notice within which to notify HUD of its
request for a hearing. If no request is received within the time
specified, the Secretary may proceed to make a finding on the issue of
compliance with this part and to take the proposed action.
(3) Administrative Law Judge. Proceedings conducted under these
rules shall be presided over by an Administrative Law Judge (ALJ),
appointed as provided by section 11 of the Administrative Procedures Act
(5 U.S.C. 3105). The case shall be referred to the ALJ by the Secretary
at the time a hearing is requested. The ALJ shall promptly notify the
parties of the time and place at which the hearing will be held. The
ALJ shall conduct a fair and impartial hearing and take all action
necessary to avoid delay in the disposition of proceedings and to
maintain order. The ALJ shall have all powers necessary to those ends,
including but not limited to the power to:
(i) Administer oaths and affirmations;
(ii) Issue subpoenas as authorized by law;
(iii) Rule upon offers of proof and receive relevant evidence;
(iv) Order or limit discovery prior to the hearing as the interests
of justice may require;
(v) Regulate the course of the hearing and the conduct of the parties
and their counsel;
(vi) Hold conferences for the settlement or simplification of the
issues by consent of the parties;
(vii) Consider and rule upon all procedural and other motions
appropriate in adjudicative proceedings; and
(viii) Make and file initial determinations.
(4) Ex parte communications. An ex parte communication is any
communication with an ALJ, direct or indirect, oral or written,
concerning the merits or procedures of any pending proceeding which is
made by a party in the absence of any other party. Ex parte
communications are prohibited except where the purpose and content of
the communication have been disclosed in advance or simultaneously to
all parties, or the communication is a request for information
concerning the status of the case. Any ALJ who receives an ex parte
communication which the ALJ knows or has reason to believe is
unauthorized shall promptly place the communication, or its substance,
in all files and shall furnish copies to all parties. Unauthorized ex
parte communications shall not be taken into consideration in deciding
any matter in issue.
(5) The hearing. All parties shall have the right to be represented
at the hearing by counsel. The ALJ shall conduct the proceedings in an
expeditious manner while allowing the parties to present all oral and
written evidence which tends to support their respective positions, but
the ALJ shall exclude irrelevant, immaterial or unduly repetitious
evidence. The Department has the burden of proof in showing by a
preponderance of the evidence that the respondent failed to comply
substantially with a provision of this part. Each party shall be
allowed to cross-examine adverse witnesses and to rebut and comment upon
evidence presented by the other party. Hearings shall be open to the
public. So far as the orderly conduct of the hearing permits,
interested persons other than the parties may appear and participate in
the hearing.
(6) Transcripts. Hearing shall be recorded and transcribed only by a
reporter under the supervision of the ALJ. The orginal transcript shall
be a part of the record and shall constitute the sole official
transcript. Respondents and the public, at their own expense, may
obtain copies of the transcript.
(7) The ALJ's decision. At the conclusion of the hearing, the ALJ
shall give the parties a reasonable opportunity to submit proposed
findings and conclusions and supporting reasons therefor. Within 25
days after the conclusion of the hearing, the ALJ shall prepare a
written decision which includes a statement of findings and conclusions,
and the reasons or basis therefor, on all the material issues of fact,
law or discretion presented on the record and the appropriate sanction
or denial thereof. The decision shall be based on consideration of the
whole record or those parts thereof cited by a party and supported by
and in accordance with the reliable, probative, and substantial
evidence. A copy of the decision shall be furnished to the parties
immediately by certified mail, return receipt requested, and shall
include a notice that any requests for review by the Secretary must be
made in writing to the Secretary within 30 days of the receipt of the
decision.
(8) The record. The transcript of testimony and exhibits, together
with the decision of the ALJ and all papers and requests filed in the
proceeding, constitutes the exclusive record for decision and, on
payment of its reasonable cost, shall be made available to the parties.
After reaching his/her initial decision, the ALJ shall certify to the
complete record and forward the record to the Secretary.
(9) Review by the Secretary. The decision by the ALJ shall
constitute the final decision of the Secretary unless, within 30 days
after the receipt of the decision, either the respondent or the
Assistant Secretary for Community Planning and Development files an
exception and request for review by the Secretary. The excepting party
must transmit simultaneously to the Secretary and the other party the
request for review and the basis of the party's exceptions to the
findings of the ALJ. The other party shall be allowed 30 days from
receipt of the exception to provide the Secretary and the excepting
party with a written reply. The Secretary shall then review the record
of the case, including the exceptions and the reply. On the basis of
such review, the Secretary shall issue a written determination,
including a statement of the reasons or basis therefor, affirming,
modifying or revoking the decision of the ALJ. The Secretary's decision
shall be made and transmitted to the parties within 80 days after the
decision of the ALJ was furnished to the parties.
(10) Judicial review. The respondent may seek judicial review of the
Secretary's decision pursuant to section 111(c) of the Act.
24 CFR 570.913 PART 571 -- COMMUNITY DEVELOPMENT BLOCK GRANTS FOR INDIAN TRIBES AND ALASKAN NATIVE VILLAGES
24 CFR 570.913 Subpart A -- General Provisions
Sec.
571.1 Applicability and scope.
571.2 Program objectives.
571.3 Nature of program.
571.4 Definitions.
571.5 Eligible applicants.
571.6 Consultations.
571.7 Waivers.
24 CFR 570.913 Subpart B -- Allocation of Funds
571.100 General.
571.101 Regional allocation of funds.
24 CFR 570.913 Subpart C -- Eligible Activities
571.200 General.
571.201 Facilities.
571.202 Non-profit organizations.
571.203 Administrative costs.
24 CFR 570.913 Subpart D -- Single Purpose Grant Application and
Selection Process
571.300 Application requirements.
571.301 Screening and review of applications.
571.302 Selection process.
571.303 Housing-related categories.
571.304 Community facilities/services category.
571.305 Economic development category.
571.306 Additional features of the selection process.
571.307 Funding process.
571.308 Program amendments.
24 CFR 570.913 Subpart E -- Imminent Threat Grants
571.400 Criteria for funding.
571.401 Application process.
571.402 Environmental review.
571.403 Availability of funds.
24 CFR 570.913 Subpart F -- Grant Administration
571.500 General.
571.501 Designation of public agency.
571.502 Force account construction.
571.503 Indian preference requirements.
24 CFR 570.913 Subpart G -- Other Program Requirements
571.600 General.
571.601 Nondiscrimination.
571.602 Relocation and acquisition.
571.603 Labor standards.
571.604 Citizen participation.
571.605 Environment.
571.606 Housing assistance.
571.607 Conflict of interest.
24 CFR 570.913 Subpart H -- Program Performance
571.700 Reports to be submitted by grantee.
571.701 Review of recipient's performance.
571.702 Corrective and remedial actions.
571.703 Reduction or withdrawal of grant.
571.704 Other remedies for noncompliance.
Authority: Title I, Housing and Community Development Act of 1974
(42 U.S.C. 5301-5320); sec. 7(d), Department of Housing and Urban
Development Act (42 U.S.C. 3535(d)).
Source: 49 FR 35370, Sept. 7, 1984, unless otherwise noted.
24 CFR 570.913 Subpart A -- General Provisions
24 CFR 571.1 Applicability and scope.
The policies and procedures described in this part apply only to
grants to eligible Indian Tribes and Alaskan Native Villages under the
Community Development Block Grant (CDBG) Program for Indian Tribes and
Alaskan Natives Villages.
24 CFR 571.2 Program objectives.
The primary objective of the Indian CDBG Program and of the community
development program of each grantee covered under this Act is the
development of viable Indian and Alaskan Native communities, including
decent housing, a suitable living environment, and expanding economic
opportunities, principally for persons of low and moderate income. The
Federal assistance provided in this part is for the support of community
development activities which further this objective. This assistance is
not to be utilized to reduce substantially the amount of local financial
support for community development activities below the level of such
support prior to the availability of this assistance.
24 CFR 571.3 Nature of program.
The Indian CDBG Program is competitive in nature. The demand for
funds far exceeds the amount of funds available. Therefore, selection
of eligible applicants for funding will reflect consideration of the
relative adequacy of applications in addressing locally determined need.
Applicants for funding must have the administrative capacity to
undertake the community development activities proposed, including the
systems of internal control necessary to administer these activities
effectively without fraud, waste, or mismanagement.
(52 FR 4900, Feb. 18, 1987)
24 CFR 571.4 Definitions.
(a) Act means Title I of the Housing and Community Development Act of
1974, as amended (42 U.S.C. 5301 et seq.).
(b) Chief executive officer means the elected official or
legally-designated official who has the prime responsibility for the
conduct of the affairs of an Indian Tribe or Alaskan Native Village.
(c) Eligible Indian populations means the most accurate and uniform
population data available from reliable sources for Indian Tribes and
Alaskan Native Villages eligible under this part.
(d) Extent of poverty means the number of persons whose incomes are
below the poverty level based on data compiled and published by the
United States Bureau of the Census referable to the same point or period
in time and the latest reports from the Office of Management and Budget.
(e) Field offices means the HUD Offices of Indian Programs or Field
Office having responsibility for the Indian CDBG Program.
(f) HUD means the Department of Housing and Urban Development.
(g) Identified service area means (1) a geographic location within
the jurisdiction of a Tribe (but not the entire jurisdiction) designated
in comprehensive plans, ordinances, or other local documents as a
service area; (2) the BIA service area, including residents of areas
outside the geographical jurisdiction of the Tribe; or (3) the entire
area under the jurisdiction of a Tribe which has a population of members
under 10,000.
(h) Low and moderate-income household or lower income household means
a household whose income does not exceed 80 percent of the median family
income for the area, as determined by HUD with adjustments for smaller
and larger families, except that the Secretary may establish income
ceilings higher or lower than 80 percent of the median for the area on
the basis of the Secretary's findings that such variations are necessary
because of unusually high or low family incomes.
(i) Low and moderate income person or lower income person means a
member of a family having a family income within the limits determined
in accordance with paragraph (h) of this section or any unrelated
individual whose income does not exceed the one-person limit determined
in accordance with paragraph (h).
(j) Secretary means the Secretary of HUD.
(k) Tribal Government, Tribal governing body or Tribal Council means
the recognized governing body of an Indian Tribe or Alaskan Native
Village.
(l) Tribal resolution means the formal manner in which the Tribal
government expresses its legislative will in accordance with its organic
documents. In the absence of such organic documents, a written
expression adopted pursuant to Tribal practices will be acceptable.
(m) Extent of overcrowded housing means the number of housing units
with 1.01 or more persons per room based on data compiled and published
by the United States Bureau of the Census available from the latest
census referrable to the same point or period of time.
(n) Unemployment means the number of persons 16 years old and over
who are out of work, but are willing and able to work.
24 CFR 571.5 Eligible applicants.
(a) Eligible applicants are any Indian Tribe, band, group, or nation,
including Alaskan Indians, Aleuts, and Eskimos, and any Alaskan Native
Village of the United States which is considered an eligible recipient
under Title I of the Indian Self-Determination and Education Assistance
Act (25 U.S.C. 450) or under the State and Local Fiscal Assistance Act
of 1972 (31 U.S.C. 1221). Eligible recipients under the Indian
Self-Determination and Education Assistance Act will be determined by
the Bureau of Indian Affairs and eligible recipients under the State and
Local Fiscal Assistance Act of 1972 will be determined by the Department
of Treasury, Office of Revenue Sharing.
(b) Tribal organizations which are eligible under Title I of the
Indian Self-Determination and Education Assistance Act may apply on
behalf of any Indian Tribe, band, group, nation, or Alaskan Native
Village eligible under that Act for funds under this part when one or
more of these entities have authorized the tribal organization to do so
through concurring resolutions. Such resolutions must accompany the
application for funding. Eligible tribal organizations under Title I of
the Indian Self-Determination and Education Assistance Act will be
determined by the Bureau of Indian Affairs.
(c) Only eligible applicants shall receive grants. However, eligible
applicants may contract or otherwise agree with non-eligible entities
such as States, cities, counties, or organizations to assist in the
preparation of applications and to help implement assisted activities.
(d) To apply for funding in a given fiscal year an applicant must be
eligible as an Indian tribe or Alaskan Native Village, as provided in
paragraph (a) of this section, or as a tribal organization, as provided
in paragraph (b) of this section by the application submission date.
24 CFR 571.6 Consultations.
On an annual basis, written or oral consultations will be held with
eligible applicants by each Field Office, for these purposes:
(a) To allow eligible applicants an opportunity to comment on Field
Office proposals affecting that fiscal year's rating process, including
the determination of grant ceilings, competitions by tribal size, and
definitions of rating factors;
(b) To provide eligible applicants with information on how to apply
for funds and how grants will be selected and awarded; and
(c) To inform eligible applicants of changes in the program.
24 CFR 571.7 Waivers.
The Secretary may waive any requirement of this part not required by
law whenever it is determined that undue hardship will result from
applying the requirement, and where application of the requirement would
adversely affect the purposes of the Act.
24 CFR 571.7 Subpart B -- Allocation of Funds
24 CFR 571.100 General.
(a) Types of grants. Two types of grants are available under the
Indian CDBG Program.
(1) Single Purpose grants provide funds for one or more single
purpose projects each consisting of an activity or set of activities
designed to meet a specific community development need. This type of
grant is awarded through competition with other single purpose projects.
(2) Imminent Threat grants alleviate an imminent threat to public
health or safety that requires immediate resolution. This type of grant
is awarded only after a Field Office determines that such conditions
exist and if funds are available for such grants.
(b) Size of grants -- (1) Ceilings. Each Field Office may establish
grant ceilings for Single Purpose and Imminent Threat Grant
applications.
(2) Individual grant amounts. In determining appropriate grant
amounts to be awarded, the Field Office may take into account the size
of the applicant, the level of demand, the scale of the activity
proposed relative to need and operational capacity, the number of
persons to be served, and the administrative capacity of the applicant
to complete the activities in a timely manner.
24 CFR 571.101 Regional allocation of funds.
(a) Except as provided in paragraph (b) of this section, funds will
be allocated to the Field Offices responsible for the program on the
following basis:
(1) Each Field Office will be allocated $500,000 as a base amount, to
which will be added a formula share of the balance of the Indian CDBG
Program funds, as provided in paragraph (a)(2) of this section.
(2) The amount remaining after the base amount is allocated will be
allocated to each Field Office based on the most recent data available
from reliable sources referrable to the same point or period in time, as
follows:
(i) Forty percent (40%) of the funds will be allocated based upon
each Field Office's share of the total eligible Indian population;
(ii) Forty percent (40%) of the funds will be allocated based upon
each Field Office's share of the total extent of poverty among the
eligible Indian population; and
(iii) Twenty percent (20%) of the funds will be allocated based upon
each Field Office's share of the total extent of overcrowded housing
among the eligible Indian population.
(b) If funds are set aside by statute for a specific purpose in any
fiscal year, the formula in paragraph (a) of this section will apply
unless otherwise specified in the law, or unless it is determined that
the formula is inappropriate to accomplish the purpose, in which case
other criteria may be established by the Secretary in determining an
allocation formula to be used to distribute funds to the Field Offices.
(c) Data used for the allocation of funds will be based upon the
eligible Indian population of those Tribes and Villages that are
determined to be eligible ninety (90) days before the beginning of each
fiscal year.
24 CFR 571.101 Subpart C -- Eligible Activities
24 CFR 571.200 General.
The eligibility requirements of part 570, subpart C of this title --
Eligible Activities -- apply to grants under this part except for those
provisions which are specifically stated as applying to the Entitlement
Cities or Small Cities-HUD administered programs, and with the
modifications stated in this subpart.
24 CFR 571.201 Facilities.
(a) Neighborhood facilities are synonomous with tribal or village
facilities.
(b) Fire protection facilities, solid waste disposal facilities and
parking facilities defined in 24 CFR part 570, subpart C must be located
in or serve identified service areas.
24 CFR 571.202 Non-profit organizations.
Tribal-based non-profit organizations replace neighborhood-based
non-profit organizations under 24 CFR part 570, subpart C. A
Tribal-based Non-profit Organization is an association or corporation
duly organized to promote and undertake community development activities
on a not-for-profit basis within an identified service area.
24 CFR 571.203 Administrative costs.
(a) For purposes of this part, technical assistance costs associated
with the development of a capacity to undertake a specific funded
program activity are not considered administrative costs. Therefore,
these costs are not included in the twenty percent limitation on
planning and administration stated in part 570, subpart C.
(b) Technical assistance costs cannot exceed ten percent of the total
grant award.
(c) Technical assistance is defined as the transfer of skills and
knowledge in planning, developing, and administering the CDBG program to
eligible Indian CDBG recipients who need them in order to undertake a
specific funded program activity.
24 CFR 571.203 Subpart D -- Single Purpose Grant Application and Selection Process
24 CFR 571.300 Application requirements.
(a) General. Applications are required for assistance under this
part. An applicant shall submit only one application, which may include
any number of eligible projects. Single Purpose grant applications will
have each project rated separately. Applications shall include projects
which can be completed within a reasonable period of time, generally not
more than two years.
(b) Submission dates. Each Field Office will establish deadlines for
the submission of applications. Submission dates will be published by
HUD as a notice in the Federal Register.
(c) Demographic data. Applicants may submit data that are
unpublished and not generally available in order to meet the
requirements of this section. The applicant must certify that:
(1) Generally available, published data are substantially inaccurate
or incomplete;
(2) Data provided have been collected systematically;
(3) Data are, to the greatest extent feasible, independently
verifiable; and
(4) Data differentiate between reservation and BIA service area
populations when applicable.
(d) Costs incurred by applicant. (1) Notwithstanding any provision
in part 570 of this title, HUD will not reimburse or recognize any costs
incurred before submission of the Single Purpose grant application to
HUD.
(2) Also, HUD will not normally reimburse or recognize costs incurred
before HUD approval of the application for funding. However, under
unusual circumstances the Field Office may consider and approve written
requests to recognize and reimburse costs incurred after submission of
the application where failure to do so would impose undue or
unreasonable hardship on the applicant. Such authorization will be made
only before the costs are incurred and where the requirements for
reimbursement have been met in accordance with 24 CFR 58.22, and with
the understanding that HUD has no obligation whatsoever to approve the
application or to reimburse the applicant should the application be
disapproved.
(e) Publication of community development statement. Applicants for
Single Purpose grants shall prepare and publish or post the community
development statement portion of their application according to the
citizen participation requirements of 571.604.
(f) Application components. Applicants for Single Purpose grants
shall submit an application to the appropriate Field Office in a form
prescribed by HUD. Components of the application shall include the
following:
(1) Standard form 424;
(2) Community development statement, which includes:
(i) Brief description of community development needs;
(ii) Brief description of proposed projects to address needs,
including scope, magnitude, and method of implementing project; and
(iii) Cost information by project, including specific activity costs,
administration, planning, and technical assistance, total HUD share, and
amount of other funds by source.
(3) Map showing project location, if appropriate; and
(4) Certification in the form of an official tribal resolution that
citizen participation requirements of 571.604 have been met.
(Approved by the Office of Management and Budget under control number
2506-0043)
24 CFR 571.301 Screening and review of applications.
(a) Criteria for acceptance. Applications for Single Purpose grants
will be initially screened by each Field Office and accepted if:
(1) They have been received or postmarked on or before the submission
date;
(2) The applicant is eligible;
(3) The proposed activities are eligible; and
(4) They contain substantially all the components specified in
571.300(f). Applications failing this initial screening shall be
rejected and returned to the applicants unrated.
(b) Demographic data. HUD will review and accept demographic data
provided by an applicant if in HUD's determination the data are of the
quality described in 571.300(c). Where demographic data provided by an
applicant are unacceptable, HUD will use the best available data at
HUD's disposal.
(c) Grant ceiling. Where Field Offices have established grant
ceilings, applications will be reviewed for compliance.
24 CFR 571.302 Selection process.
(a) Threshold requirements. In order for applications that have
passed the initial screening tests of 571.301 to be rated and ranked,
Field Offices must determine that the following threshold requirements
have been met:
(1) Community development need and appropriateness. (i) The
applicant's project(s) directly impacts on its community development
needs;
(ii) The costs are reasonable;
(iii) The project(s) is appropriate for the intended use; and
(iv) The project(s) is usable or achievable generally within a two
year period. If available data, in the judgment of the Field Office,
indicate that the proposed project(s) is inconsistent with the
applicant's community development needs, its costs are unreasonable, it
is inappropriate for the intended use, or not usable generally within
two years, the Field Office shall determine that the applicant has not
met this threshold requirement, and reject the application from further
consideration.
(2) Capacity and performance. The applicant has the capacity to
undertake the proposed program. Additionally, applicants that have
previously participated in the Indian CDBG Program must have performed
adequately or, in cases of previously documented deficient performance,
the applicant must have taken appropriate corrective action to improve
its performance.
(i) Capacity. The applicant possesses, or will acquire, the
managerial, technical, or administrative staff necessary to carry out
the proposed projects. If the Field Office determines that the
applicant does not have or cannot obtain the capacity to undertake the
grant, the application will be rejected from further consideration.
(ii) Performance -- (A) Community development. Performance
determinations are made through the Field Office's normal monitoring
process. Applicants that have been advised in writing of negative
findings on previous grants, for which a schedule of corrective actions
has been established, will not be considered for funding if they are
behind schedule as of the deadline date for filing applications.
(B) Housing assistance. Actions have been taken by the applicant
within its control to facilitate the provision of housing assistance for
low- and moderate-income members of the Tribe or Alaskan Village. Any
action to prevent the provision or operation of assisted housing for
low- and moderate- income persons shall also be evaluated in terms of
whether it constitutes inadequate performance by the applicant. If
inadequate performance is found, the applicant shall be rejected from
further consideration. Subsequent applications will also be similarly
disqualified in subsequent competitions unless the applicant has taken
corrective actions within its control.
(C) Previous audit finding and outstanding monetary obligations. An
applicant that has an outstanding Community Development Block Grant
obligation to HUD that is in arrears, or for which a repayment schedule
has not been agreed to, will be disqualified from the current and
subsequent competitions until the obligations are current. An applicant
whose response to an audit finding(s) is overdue or unsatisfactory will
be disqualified from the current and subsequent competitions until the
applicant has taken final action necessary to close the audit
finding(s). The Field Office Director may provide waivers of this
disqualification in those cases where the applicant has made a good
faith effort to clear the audit finding(s). In no instance, however,
shall a waiver be provided when funds are due HUD, unless a satisfactory
arrangement for repayment of the debt has been made, and payments are
current.
(3) Benefit. The applicant's project indicates that at least 51
percent of the persons benefitting from the project are of low- and
moderate-income. If available data, in the judgment of the Field
Office, indicate that fewer than 51 percent of the intended
beneficiaries of the proposed project are low- and moderate-income
persons, the Field Office shall determine that the applicant has not met
this threshold requirement and reject the project from further
consideration. Before rejecting the project, however, the Field Office
must first give the applicant an opportunity to examine the available
data or to submit new data that, in the judgment of the Field Office,
show that 51 percent of the beneficiaries are of low- and
moderate-income. For purposes of this section, a project may be
considered to benefit low- and moderate-income people if it meets the
standards set forth in 570.901(b)(1) of this chapter.
(b) Information submitted on request. A Field Office may, in its
discretion, request that an applicant submit information that may help
to clarify an application that in the Field Office's view contains
information that is inconsistent with known facts or data; or
inadequate in substance to make a threshold or rating determination, or
a determination of compliance with the requirements of this part.
Applicants shall only submit the information in response to inquiries
made by HUD. A new project(s) may not be substituted for one(s)
proposed in the original application. Applicants failing to meet the
information request shall be disqualified from the competition if the
Field Office determines that the applicant fails to meet the threshold
requirements; or that information is lacking to make rating
determinations, or to show compliance with requirements of this part.
(c) Application rating system. (1) Applications that meet the
threshold requirements established in paragraph (a) of this section will
be rated competitively within each Field Office's jurisdiction. Field
Offices may conduct separate competitions among applicants on the basis
of size.
(2) All projects will be rated on the basis of their impact on the
community development need identified and the quality of the proposed
project. The specific measures, numbers, percentages, and definitions
to be used for the ''Impact'' and ''Quality'' factors identified in this
subpart are to be developed by each Field Office. If a Field Office
finds it desirable, each of the categories may be subdivided into two or
more subcategories in order better to deal with project ratings.
(3) The maximum value of the ''Impact'' factors and ''Quality''
factors described in this section will be 40 percent and 60 percent,
respectively.
(4) In addition to meeting the requirements of this section, which
apply to all projects, the Field Office will examine each project
submitted to determine in which one of the four rating categories set
out in 571.303 through 571.305 the project most appropriately belongs.
The project will then be rated on the basis of the criteria identified
in the rating category to which the project has been assigned.
(d) Final ranking. The points received for each rating factor by a
project are totaled and the projects ranked according to the point
totals. Projects are selected for funding based on this final ranking
to the extent that funds are available. HUD may select additional
projects for funding should one of the higher ranking projects not be
funded, or if additional funds become available.
(e) Competition documentation. Documentation pertaining to each
fiscal year's competition shall be available at each Field Office for
applicant review for a period of time to be set by the Field Office
(which cannot be less than 30 days).
(f) Procedural error. If a Field Office makes a procedural error in
the application and selection process that, when corrected, will result
in awarding sufficient points to warrant funding of an otherwise
eligible applicant, HUD may fund that applicant in the next fiscal year
without further competition.
(g) Set aside selection of projects. If funds have been set aside by
statute for a specific purpose in any fiscal year, other criteria
pertinent to the set aside may be used to select projects for funding
from the set aside. The selection of projects for set aside funding may
be competitive or non-competitive.
(49 FR 35370, Sept. 7, 1984, as amended at 52 FR 4900, Feb. 18, 1987)
24 CFR 571.303 Housing-related categories.
(a) Housing rehabilitation projects -- (1) Impact factors. (i)
Maximum points will be awarded to those projects that propose to use a
larger percentage of the construction funds to rehabilitate homes to a
standard condition, with the balance of the funds to be used for another
housing-related purpose, or to projects that propose to implement a
housing-assistance strategy that identifies how housing needs are to be
addressed and how, over time, homes to be assisted will be brought up to
standard condition or replaced. The evaluation of the effectiveness of
a housing assistance strategy as an alternative to a project proposing
to use most funds for rehabilitation of housing to a standard condition
will be based on criteria established through the consultation process.
(ii) Fewer points will be awarded to those projects that propose to
use a smaller percentage of the construction funds to rehabilitate homes
to a standard condition, with the balance to be used for another
housing-related purpose.
(iii) The fewest points will be awarded to those projects that
propose to use the smallest percentage of the construction funds, as
compared to the allocations under either paragraph (a)(1)(i) or (ii) of
this section, to rehabilitate homes to a standard condition, with the
balance to be used for another housing-related purpose.
(2) Quality factors. Points will be awarded for each of the
following Quality factors that is met. Whether:
(i) Adopted policies are in place to guide the administration of the
program.
(ii) Adopted housing standards exist with regard to which houses can
be rehabilitated and what constitutes ''standard condition''.
(iii) The proposed rehabilitation program meets one or more of the
following factors: (A) It reduces the cost of current rehabilitation
activities; (B) it provides for energy conservation; (C) it provides
for a Tribal contribution; or (D) it provides for a secondary benefit
from the rehabilitation.
(iv) Extraordinary benefit to low- and moderate-income persons is
provided by the project.
(v) The program establishes a maintenance policy to protect the
investment made in the housing units assisted.
(b) Land to support new housing -- (1) Impact Factors. (i) Maximum
points will be awarded for land acquisition to those projects that have
no land or no suitable land for the construction of housing along with
housing amenities.
(ii) Fewer points will be awarded to those projects that have land
that is suitable for the construction of housing along with housing
amenities, but such land is officially dedicated to another purpose.
(iii) The fewest points will be awarded to those projects for the
acquisition of additional land to construct only housing amenities for
existing housing.
(2) Quality factors. Points will be awarded for each of the
following Quality factors that is met. Whether:
(i) The land to be acquired is suitable for housing (i.e., the land
does not require extensive preparation).
(ii) The Housing Authority or Tribe, or both, have agreed to use the
land to be acquired.
(iii) Housing resources have been committed to construct the housing,
or will be committed by the Field Office or other organization, at the
time of approval.
(iv) Support services are or will be made available and families are
willing to relocate to the new location.
(v) Land can be taken into trust; or a provision has been made for
taxes and fees.
(52 FR 4900, Feb. 18, 1987)
24 CFR 571.304 Community facilities/services category.
(a) Impact factors. (1) Maximum points will be awarded to those
projects that propose to provide a facility or service that is not
available from sources either within or outside the community or
reservation, and no functioning facility or service currently exists.
(2) Fewer points will be awarded to those projects that propose to
provide a facility or service that is not available from sources either
within or outside the community or reservation, and the current facility
or service no longer functions in a reliable manner.
(3) The fewest points will be awarded to those projects that propose
to expand or improve an existing facility or service to enhance the
provision of current or future services.
(b) Quality factors. Points will be awarded for each of the
following Quality factors that is met. Whether:
(1) The facility or service will accomplish one or more of the
following:
(i) Produce a secondary benefit from its construction or
implementation;
(ii) Address a serious health and safety problem; or
(iii) Meet an essential community need.
(2) One or more of the following will be accomplished:
(i) The facility or service will be shared with other communities or
Tribes;
(ii) Other funds will be contributed in support of the facility; or
(iii) The facility or service will serve multiple purposes.
(3) A maintenance plan has been prepared that includes an adequate
fund for future replacements, and a funding source has been identified
to assure that the facility will be properly maintained.
(4) The design, scale, and costs of the facility or service and the
equipment proposed are appropriate to the need.
(5) Extraordinary benefit to low and moderate income persons is
provided by the project.
(52 FR 4901, Feb. 18, 1987)
24 CFR 571.305 Economic development category.
(a) Impact factors. (1) Maximum points will be awarded to those
projects that propose an enterprise that over its economic life will
have a rate of return that is equal to or greater than that which has
been fixed by the Field Office or over its economic life the enterprise
will have a rate of return that is less than that which has been fixed
by the Field Office in 571.305(a)(1)(i), and
(i) Will result in the creation of a certain number of jobs (the
number of jobs will be determined by the Field Office); or
(ii) Will provide a product, service, or resource not otherwise
available, or provide it at a significantly lower cost.
(2) Fewer points will be awarded to those projects that propose an
enterprise that, over its economic life, will have a rate of return
fixed by the Field Office which will be less than the rate of return in
paragraph (a)(1)(i) of this section.
(3) The fewest points will be awarded to those projects that propose
an enterprise that, over its economic life, will have a rate of return
that is less than the rate of return in paragraph (a)(2) of this
section.
(4) No points will be awarded to a project that will have a rate of
return below the minimum threshold established by the Field Office.
(b) Quality factors. Points will be awarded for each of the
following Quality factors that is met. Whether:
(1) The cost per job is less than a dollar amount determined by the
Field Office.
(2) The percentage of the grant leveraged by other resources is more
than the appropriate percentage determined by the Field Office.
(3) The project meets the standards of quality for the type of
project proposed.
(4) An accountable Tribal business management mechanism exists for
completion and operation of the project.
(5) The project meets one or more of the following:
(i) It has an assured market;
(ii) It will utilize special skills of members; or
(iii) It will provide multiple benefits.
(52 FR 4901, Feb. 18, 1987)
24 CFR 571.306 Additional features of the selection process.
(a) Waiver or modification of factors. Individual factors may be
waived or modified by the Secretary when the application of a particular
factor or factors would result in a hardship for applicants to address,
or would bring about a result that is not consistent with the needs of
the applicants in a Field Office's jurisdiction.
(b) Adding factors. Additional Impact factors may be added in order
to expand Tribal opportunities for dealing with problems or for meeting
local needs. Quality factors also may be added or modified when new
Impact factors are proposed, or when new qualitative measures are
identified.
(c) Point calculations. The formula for calculating points for the
above factors will be developed by the Field Office. In no case may
these calculations change the overall percentage values of the Impact
and Quality factors (40 and 60 percent, respectively; of total points
awarded) without the prior approval of the Secretary.
(d) The addition of factors or the development of a formula for
calculating points may be done by a Field Office after consultation with
eligible applicants, as provided in 571.6, and subject to the approval
of the Secretary.
(52 FR 4901, Feb. 18, 1987)
24 CFR 571.307 Funding process.
(a) Notification. Field Offices will notify applicants of the
actions taken regarding their applications. Grant amounts offered may
reflect adjustments made by the Field Offices in accordance with
571.100(b).
(b) Pre-award requirements. (1) Upon notification by HUD of
successfully competing for a grant, the applicant shall submit on forms
prescribed by HUD the following:
(i) Implementation schedule;
(ii) Certification; and
(iii) Cost information, if changes have occurred or if the Field
Office has adjusted the original grant request.
(2) Successful applicants may also be required to provide supporting
documentation concerning the management, maintenance, operation or
financing of proposed projects before a grant agreement can be executed.
Applicants will be given at least thirty (30) days to respond to such
requirements. In the event that no response or an insufficient response
is made within the prescribed time period, the Field Office shall
determine that the applicant has not met the requirements and the grant
offer will be withdrawn. The Field Offices shall require supporting
documentation in those instances where:
(i) Specific questions remain concerning the scope, magnitude,
timing, or method of implementing the project; and/or
(ii) The applicant has not provided information verifying the
commitment of other resources required to complete, operate or maintain
the proposed project.
(3) Grant amounts allocated for applicants unable to meet preaward
requirements will be offered to the next highest ranking unfunded
project.
(4) New projects may not be substituted for those originally proposed
in the application.
(c) Grant award. (1) As soon as HUD determines that the applicant
has complied with the preaward requirements and nothing has come to the
attention of the Field Office which would alter the threshold
determinations under 571.302, the grant will be awarded. These
regulations, 24 CFR part 571, become part of the grant agreement.
(2) All grants shall be conditioned upon the completion of all
environmental obligations and approval of release of funds by HUD in
accordance with the requirements of part 58 of this title and, in
particular, subpart J; except as otherwise provided in:
(i) Section 58.33 Emergencies;
(ii) Section 58.34 Exempt activities; or
(iii) Section 58.22 Activities excepted from limitations on the
commitment of funds and which are reimbursable under subpart C of part
570.
(3) HUD may place other conditions on a grant in which case the grant
agreement will be approved, but the obligation and utilization of funds
may be restricted in whole or in part. The reasons for the conditional
approval and the actions necessary to remove the conditions shall be
specified in the grant agreement. Failure to satisfy the conditions may
result in a termination of the grant. Conditional approval may be made:
(i) Where the requirements of part 570, subpart C, of this title
regarding the provision of public services and flood or drainage
facilities have not yet been satisfied;
(ii) Pending site and neighborhood standards approval for a proposed
housing project, if applicable;
(iii) Pending HUD's approval of the use of Tribal work forces for
construction or renovation activities in accordance with 571.502; or
(iv) Pending resolution of problems with specific projects or of the
capability of the grantee to obtain resources needed to carry out,
operate or maintain the project.
(The information collection requirements contained in paragraphs
(b)(1) and (2) were approved by the Office of Management and Budget
under control number 2506-0043)
(49 FR 35370, Sept. 7, 1984. Redesignated at 52 FR 4900, Feb. 18,
1987)
24 CFR 571.308 Program amendments.
(a) Grantees shall request prior HUD approval for all program
amendments involving the alteration of existing activities that will
significantly change the scope, location, objective, or class of
beneficiaries of the approved activities, as originally described in the
application.
(b) Amendment requests shall include the information required under
571.300(f) and 571.303(b)(1).
(1) Amendments of $10,000 or more shall address all the rating
factors of the last rating cycle. Approval is subject to the following:
(i) A rating equal to or greater than the lowest rating received by a
funded project during the last rating cycle;
(ii) Capability to promptly complete the modified or new activities;
(iii) Compliance with the requirements of 571.604 of this title for
citizen participation; and
(iv) The preparation of an amended or new environmental review in
accordance with part 58 of this title, if there is a significant change
in the scope or location of approved activities.
(2) Amendments of less than $10,000 shall be approved subject to
meeting the requirements of paragraphs (b)(1)(ii), (iii), and (iv) of
this section.
(3) Amendments which address imminent threats to health and safety
shall be reviewed and approved in accordance with the requirements of
subpart E of this part.
(c) If a program amendment fails to be approved and the original
project is no longer feasible, the grant funds proposed for the
amendment shall be returned to HUD.
(49 FR 35370, Sept. 7, 1984. Redesignated at 52 FR 4900, Feb. 18,
1987)
24 CFR 571.308 Subpart E -- Imminent Threat Grants
24 CFR 571.400 Criteria for funding.
The following criteria apply to requests for assistance under this
subpart:
(a) In response to requests for assistance, the Field Office may make
funds available under this subpart to applicants to alleviate or remove
imminent threats to health or safety that require an immediate solution.
The urgency and immediacy of the threat shall be independently verified
prior to the acceptance of an application. Funds to alleviate imminent
threats to health and safety may only be used to deal with threats that
are not of a recurring nature, which represent a unique and unusual
circumstance, and which impact on an entire service area.
(b) Funds to alleviate imminent threats may be granted only if the
applicant can demonstrate to the satisfaction of HUD that other local or
federal funding sources cannot be made available to alleviate the
threat.
24 CFR 571.401 Application process.
(a) Letter to proceed. The Field Office may only issue the applicant
a letter to proceed to incur costs to alleviate imminent threats to
health and safety if the assisted activities do not alter environmental
conditions and are for temporary or permanent improvements limited to
protection, repair, or restoration actions necessary only to control or
arrest the effects of imminent threats or physical deterioration.
Reimbursement of such costs is dependent upon HUD approval of the
application.
(b) Applications. Applications shall be submitted in accordance with
571.300(f) and 571.303(b). Applications which meet the requirements of
these sections may be approved by the Field Office without competition.
24 CFR 571.402 Environmental review.
Pursuant to 58.34(a)(8) of this title, grants for imminent threats
to health or safety are exempt from some or all of the environmental
review requirements of part 58 to the extent provided therein.
24 CFR 571.403 Availability of funds.
Field Offices may set aside up to 15 percent of their allocation of
funds under this part for imminent threat grants. The only funds
reserved for imminent threat are those set aside by the Field Office
each year. Imminent threat funds which are not awarded before the award
of the last Single Purpose grant shall be used for the next highest
ranking Single Purpose project. After these funds are depleted, HUD
shall not consider further requests for imminent threat grants during
that fiscal year.
24 CFR 571.403 Subpart F -- Grant Administration
24 CFR 571.500 General.
The requirements of part 570, subpart J of this title -- Grant
Administration -- apply to grants under this part except for those
provisions that are specifically stated as applying to the Entitlement
Cities or Small Cities-HUD administered programs, and with the
modifications stated in this subpart.
24 CFR 571.501 Designation of public agency.
One or more Tribal departments or authorities may be designated by
the chief executive officer of an Indian Tribe or Alaskan Native Village
as the operating agency to undertake activities assisted under this
part. The Indian Tribe or Alaskan Native Village itself, however, shall
be the applicant. Designation of an operating agency does not relieve
the Indian Tribe or Alaskan Native Village of its responsibility in
assuring that the program will be administered in accordance with all
HUD requirements, including these regulations.
24 CFR 571.502 Force account construction.
(a) The utilization of Tribal work forces for construction or
renovation activities performed as part of the activities funded under
this part shall be approved by HUD before the start of project
implementation. In reviewing requests for an approval of force account
construction or renovation, HUD may require that the grantee provide the
following:
(1) Documentation to indicate that it has carried out or can carry
out successfully a project of the size and scope of the proposal;
(2) Documentation to indicate that it has obtained or can obtain
adequate supervision for the workers to be utilized;
(3) Information showing that the workers to be utilized are, or will
be, listed on the Tribal payroll and are employed directly by an arm,
department or other governmental instrumentality of the Tribe or Alaskan
Native Village.
(b) Any and all excess funds derived from the force account
construction or renovation activities shall accrue to the grantee and
shall be reprogrammed for other activities eligible under this part in
accordance with 571.304 or returned to HUD promptly.
(c) Insurance coverage for force account workers and activities
shall, where applicable, include workman's compensation, public
liability, property damage, builder's risk, and vehicular liability.
(d) The grantee shall specify and apply reasonable labor performance,
construction or renovation standards to work performed under the force
account.
(e) The contracting and procurement standards set forth in 24 CFR
85.36 apply to material, equipment, and supply procurements from outside
vendors under this section, but not to other activities undertaken by
force account. HUD may approve alternative requirements in lieu of
bonding if compliance with the bonding requirements specified in
85.36(h) is determined by HUD to be infeasible or incompatible with the
Indian preference requirements set forth in 571.503.
(The information collection requirement contained in paragraph (a)(3)
were approved by the Office of Management and Budget under control
number 2506-0043)
(49 FR 35370, Sept. 7, 1984, as amended at 53 FR 8064, Mar. 11, 1988)
24 CFR 571.503 Indian preference requirements.
(a) Applicability. HUD has determined that grants under this part
are subject to section 7(b) of the Indian Self-Determination and
Education Assistance Act (25 U.S.C. 450e(b)), which requires that to the
greatest extent feasible:
(1) Preference and opportunities for training and employment shall be
given to Indians, and
(2) Preference in the award of contracts and subcontracts shall be
given to Indian organizations and Indian-owned economic enterprises.
(b) Definitions. Indian organizations and Indian-owned economic
enterprises include both:
(1) Any ''economic enterprise'' as defined in section 3(e) of the
Indian Financing Act of 1974 (Pub. L. 93-262); that is, ''any
Indian-owned commercial, industrial, or business activity established or
organized for the purpose of profit provided that such Indian ownership
and control shall constitute not less than 51 percent of the
enterprise''; and
(2) Any ''tribal organizations'' as defined in section 4(c) of the
Indian Self-Determination and Education Assistance Act (Pub. L.
93-638); that is, ''the recognized governing body of any Indian Tribe;
any legally established organization of Indians which is controlled,
sanctioned or chartered by such governing body or which is
democratically elected by the adult members of the Indian community to
be served by such organizations and which includes the maximum
participation of Indians in all phases of its activities.''
(c) Preference in administration of grant. To the greatest extent
feasible, preference and opportunities for training and employment in
connection with the administration of grants awarded under this part
shall be given to Indians and Alaskan Natives.
(d) Preference in contracting. To the greatest extent feasible,
grantees shall give preference in the award of contracts for projects
funded under this part to Indian organizations and Indian-owned economic
enterprises.
(1) Each grantee shall:
(i) Advertise for bids or proposals limited to qualified Indian
organizations and Indian-owned enterprises; or
(ii) Use a two-stage preference procedure, as follows:
(A) Stage 1. Invite or otherwise solicit Indian-owned economic
enterprises to submit a statement of intent to respond to a bid
announcement limited to Indian-owned firms.
(B) Stage 2. If responses are received from more than one Indian
enterprise found to be qualified, advertise for bids or proposals
limited to Indian organizations and Indian-owned economic enterprises;
or
(iii) Develop, subject to HUD Field Office one-time approval, the
grantee's own method of providing preference.
(2) If the method of providing preference selected by the grantee
results in fewer than two qualified Indian organizations or Indian-owned
enterprises submitting a statement of intent, bid or proposal, then the
grantee shall:
(i) Rebid the contract, using any of the methods described in
paragraph (d)(1) of this section; or
(ii) Rebid the contract without limiting the advertisement for bids
or proposals to Indian organizations and Indian-owned economic
enterprises; or
(iii) If one approvable bid is received, request Field Office review
and approval of the proposed contract and related procurement documents,
in accordance with 24 CFR 85.36, in order to award the contract to the
single bidder.
(3) Procurements that are within the dollar limitations established
for small purchases under 24 CFR 85.36 need not follow the formal bid
procedures of paragraph (d) of this section, since these procurements
are governed by the small purchase procedures of 24 CFR 85.36. However,
a grantee's small purchase procurement shall, to the greatest extent
feasible, provide Indian preference in the award of contracts.
(4) All preferences shall be publicly announced in the advertisement
and bidding solicitation and the bidding documents.
(5) A grantee, at its discretion, may require information of
prospective contractors seeking to qualify as Indian organizations or
Indian-owned economic enterprises; however, this information need not
be submitted to HUD. Thus, prospective contractors may be required by
grantees to submit with or prior to submission of a bid or proposal:
(i) Evidence showing fully the extent of Indian ownership, control,
and interest;
(ii) Evidence of structure, management and financing affecting the
Indian character of the enterprise, including major subcontracts and
purchase agreements; materials or equipment supply arrangements; and
management salary or profit-sharing arrangements; and evidence showing
the effect of these on the extent of Indian ownership and interest; and
(iii) Evidence sufficient to demonstrate to the satisfaction of the
grantee that the prospective contractor has the technical,
administrative, and financial capability to perform contract work of the
size and type involved.
(6) The grantee shall incorporate the following clause (referred to
as a Section 7(b) clause) in each contract awarded in connection with a
project funded under this part:
(i) The work to be performed under this contract is on a project
subject to section 7(b) of the Indian Self-Determination and Education
Assistance Act (25 U.S.C. 450e(b)) (Indian Act). Section 7(b) requires
that to the greatest extent feasible (A) preferences and opportunities
for training and employment shall be given to Indians and (B)
preferences in the award of contracts and subcontracts shall be given to
Indian organizations and Indian-owned economic enterprises.
(ii) The parties to this contract shall comply with the provisions of
section 7(b) of the Indian Act.
(iii) In connection with this contract, the contractor shall, to the
greatest extent feasible, give preference in the award of any
subcontracts to Indian organizations and Indian-owned economic
enterprises, and preferences and opportunities for training and
employment to Indians and Alaskan Natives.
(iv) The contractor shall include this Section 7(b) clause in every
subcontract in connection with the project, and shall, at the direction
of the grantee, take appropriate action pursuant to the subcontract upon
a finding by the grantee or HUD that the subcontractor has violated the
Section 7(b) clause of the Indian Act.
(e) Additional Indian preference requirements. A grantee may, with
prior HUD approval, provide for additional Indian preference
requirements as conditions for the award of, or in the terms of, any
contract in connection with a project funded under this part. The
additional Indian preference requirements shall be consistent with the
objectives of the Section 7(b) clause of the Indian Act and shall not
result in a significantly higher cost or greater risk of non-performance
or longer period of performance.
(49 FR 35370, Sept. 7, 1984, as amended at 53 FR 8064, Mar. 11, 1988)
24 CFR 571.600 General.
The following requirements of part 570, subpart K, of this title --
Other Program Requirements -- apply to grants under this part.
(a) Section 570.605 National Flood Insurance Program.
(b) Section 570.608 Lead-based paint.
(c) Section 570.609 Use of debarred, suspended, or ineligible
contractors or subrecipients.
(d) Section 570.610 Uniform administrative requirements and cost
principles.
(e) Section 570.611 Conflict of interest.
24 CFR 571.601 Nondiscrimination.
(a) Under the authority of section 107(a)(2) of the Act, the
Secretary waives the requirement that recipients comply with section 109
of the Act except with respect to the prohibition of discrimination
based on age or against an otherwise qualified handicapped individual.
(b) A recipient shall comply with the provisions of Title II of Pub.
L. 90-284 (24 U.S.C. 1301 -- the Indian Civil Rights Act) in the
administration of a program or activity funded in whole or in part with
funds made available under this part. For purposes of this section,
''program or activity'' is defined as any function conducted by an
identifiable administrative unit of the recipient; and ''Funded in
whole or in part with funds made available under this part'' means that
community development funds in any amount have been transferred by the
recipient to an identifiable administrative unit and disbursed in a
program or activity.
24 CFR 571.602 Relocation and acquisition.
(a) The Uniform Relocation Assistance and Real Property Acquisition
Policies Act of 1970 (42 U.S.C. 4601), hereinafter referred to as the
Uniform Act, and HUD implementing regulations at part 42 of this title
apply to any acquisition of real property by a State agency (defined in
42.2(p) of this title) that is carried out for an activity assisted
under this part and to the displacement of any family, individual,
business, non-profit organization, or farm that results from such
acquisition.
(b)(1) Any acquisition of real property by a ''State agency'' and any
displacement resulting from such acquisition of real property shall be
considered to be an activity assisted under the Community Development
Block Grant program and be subject to the regulations at part 42 of this
title if the acquisition occurs on or after the date of the submission
of the application requesting federal financial assistance which is
granted. However, if the grantee determines that an acquisition or
displacement was not carried out for an assisted activity, and the Field
Office concurs in the determination, such acquisition or displacement
shall not be subject to these regulations. The grantee's request for
HUD concurrence shall include its certification that at the time of the
acquisition it did not intend to use the property for an assisted
activity along with appropriate documentation to establish that fact.
(2) With respect to acquisitions for projects assisted under this
part that are not within the purview of the Uniform Act, the grantee
shall:
(i) Provide each property owner a written offer of the amount
determined to be just compensation for the property. Just compensation
shall be based upon one or more appraisals of the fair market value of
the property as prepared by a qualified appraiser. However, this
provision shall not prevent a person from donating real property if,
prior to the donation, he/she has been fully informed of his/her right
to receive just compensation;
(ii) Provide HUD the opportunity to review any acquisition price
established pursuant to paragraph (b)(2)(i) of this section prior to
compensation being paid to the seller;
(iii) Include in the applicable case file a justification for the
acquisition payment in any case in which such payment exceeds the fair
market value of the property.
(c)(1) The cost of relocation payments and assistance under Title II
of the Uniform Act shall be paid from funds provided by this part and/or
such other funds as may be available to the grantee from any other
source.
(2) With respect to other displacement-causing activities that are
assisted under this part but are not within the purview of the Uniform
Act, the grantee shall adopt a uniform written policy for providing
relocation payments and other assistance to ensure that displaced
families and individuals obtain a safe and habitable replacement
dwelling and that all persons, including families, individuals,
business, nonprofit organizations and farm operations, are reimbursed
for all moving and related expenses, including utility hook-up and
storage costs. That policy shall also provide that:
(i) No occupant of a dwelling shall be required to move permanently
from the dwelling, unless first given reasonable opportunity to relocate
to a safe and habitable replacement dwelling at a monthly housing cost,
including utilities, that does not exceed 30 percent of his/her gross
income;
(ii) All families, individuals, business, nonprofit organizations,
and farm operations to be displaced shall be provided advance
information sufficient to enable them to fully understand the reason for
their displacement and the relocation payments and other assistance to
which they are entitled under these regulations;
(iii) In any case in which the occupant of a dwelling is required to
relocate for a temporary period in order to permit rehabilitation or
demolition, the temporary relocation shall not exceed 12 months in
duration, a safe and habitable dwelling shall be available to the person
for the period of the temporary relocation, and the grantee shall pay
actual reasonable out-of-pocket expenses, including any moving costs or
increase in monthly housing costs, incurred by the person in connection
with the temporary relocation.
(49 FR 35370, Sept. 7, 1984, as amended at 51 FR 6913, Feb. 27, 1986)
24 CFR 571.603 Labor standards.
(a) In accordance with the authority under section 107(d)(2) of the
Act, the Secretary waives the provisions of section 110 of the Act
(Labor Standards) with respect to this part, including the requirement
that laborers and mechanics employed by the contractor or subcontractors
in the performance of construction work financed in whole or in part
with assistance received under this part be paid wages at rates not less
than those prevailing on similar construction in the locality as
determined by the Secretary of Labor in accordance with the Davis-Bacon
Act.
(b) This waiver does not permit the grantee to set wage rates for
projects funded under this part which would be considered excessive for
other similar projects funded by the Tribe or another federal entity.
HUD will periodically review wage rates and take appropriate corrective
action should wage rates be found to be excessive.
24 CFR 571.604 Citizen participation.
(a) In order to permit members of Indian Tribes and Alaskan Native
Villages to examine and appraise the applicant's application for funds
under this part, the applicant shall follow traditional means of citizen
involvement which, at the least, include the following:
(1) Furnishing members information concerning amounts of funds
available for proposed community development and housing activities and
the range of activities that may be undertaken;
(2) Holding one or more meetings to obtain the views of members on
community development and housing needs. Meetings shall be scheduled in
ways and at times that will allow participation by members.
(3) Developing and publishing or posting the community development
statement in such a manner as to afford affected members an opportunity
to examine its contents and to submit comments;
(4) Affording members an opportunity to review and comment on the
applicant's performance under any active community development block
grant.
(b) Prior to submission of the application to HUD, the applicant
shall certify by an official tribal resolution that it has met the
requirements of paragraph (a) of this section, and
(1) Considered any comments and views expressed by members and, if it
deems appropriate, modified the application accordingly.
(2) Made the modified application available to members.
(c) No part of this requirement shall be construed to restrict the
responsibility and authority of the applicant for the development of the
application and the execution of the grant. Accordingly, the citizen
participation requirements of this paragraph do not include concurrence
by any person or group in making final determinations on the contents of
the application.
24 CFR 571.605 Environment.
In order to assure that the policies of the National Environmental
Policy Act of 1969 and other provisions of Federal law which further the
purposes of such Act (as specified in 24 CFR 58.5) are most effectively
implemented in connection with the expenditure of block grant funds, the
recipient shall comply with the Environment Review Procedures for the
Community Development Block Grant Program (24 CFR part 58). Upon
completion of the environmental review, the recipient shall submit a
certification and request for release of funds for particular projects
in accordance with 24 CFR part 58.
24 CFR 571.606 Housing assistance.
In those instances where a Tribe has established an Indian Housing
Authority (IHA) and the IHA has obtained housing assistance from HUD,
the Tribe's compliance with its commitments, set forth in the tribal
resolution creating the IHA, will be a performance consideration for the
Tribe under the Indian CDBG program.
(56 FR 920, Jan. 9, 1991)
24 CFR 571.607 Conflict of interest.
(a) Applicability. (1) In the procurement of supplies, equipment,
construction, and services by grantees and subrecipients, the conflict
of interest provisions in 24 CFR 85.36 and OMB Circular A-110 shall
apply.
(2) In all cases not governed by 24 CFR 85.36 and OMB Circular A-110,
the provisions of this section shall apply. Such cases include the
provision of assistance by the recipient or by its subrecipients to
individuals, business, and other private entities under eligible
activities that authorize such assistance (e.g., rehabilitation,
preservation, and other improvements of private properties or facilities
under 570.202; or grants, loans, and other assistance to businesses,
individuals and other private entities under 570.203 or 570.204)
(b) Conflicts prohibited. The general rule is that no persons
described in paragraph (c) of this section who have or had any functions
or responsibilities with respect to Community Development Block Grant
(CDBG) activities assisted under this part, or who are in a position to
participate in a decision, or gain inside information about such
activities, may obtain a personal or financial interest or benefit from
these activities. Further, such persons may not have an interest in any
contract, subcontract, or agreement concerning such activities; and
such persons may not, during their employment or tenure in office and
for one year thereafter, have an interest in the proceeds from these
activities, either for themselves or for those with whom they have
family or business ties. This paragraph does not apply to approved
eligible administrative or personnel costs.
(c) Persons covered. The conflict of interest provisions of
paragraph (b) of this section apply to any person who is an employee,
agent, consultant, officer, or elected or appointed official of the
recipient, or of any designated public agencies, or subrecipients under
570.204 of this title, receiving funds under this part.
(d) Execeptions requiring HUD approval -- (1) Threshold requirements.
Upon the written request of a recipient, HUD may grant an exception to
the provisions of paragraph (b) of this section on a case-by-case basis,
when it determines that such an exception will serve to further the
purposes of the Act and the effective and efficient administration of
the recipient's program or project. An exception may be considered only
after the recipient has provided the following:
(i) A disclosure of the nature of the possible conflict, accompanied
by an assurance that there has been public disclosure of the conflict
and a description of how the public disclosure was made; and
(ii) An opinion of the recipient's attorney that the interest for
which the exception is sought would not violate Tribal laws on conflict
of interest, or applicable State laws.
(2) Factors to be considered for exceptions: In determining whether
to grant a requested exception after the recipient has satisfactorily
met the requirements of paragraph (d)(1) of this section, HUD shall
consider the cumulative effect of the following factors, where
applicable:
(i) Whether the exception would provide a significant cost benefit or
essential expert knowledge to the program or project which would
otherwise not be available;
(ii) Whether an opportunity was provided for open competitive bidding
or negotiation;
(iii) Whether the affected person has withdrawn from his or her
functions or responsibilities, or from the decision-making process, with
reference to the specific assisted activity in question;
(iv) Whether the interest or benefit was present before the affected
person was in a position as described in paragraph (b) of this section;
(v) Whether undue hardship will result, either to the recipient or to
the person affected, when weighed against the public interest served by
avoiding the prohibited conflict;
(vi) Any other relevant considerations.
(e) Circumstances under which the conflict prohibition does not
apply. (1) In instances where a person who might otherwise be deemed to
be included under the conflict prohibition is a member of a group or
class of beneficiaries of the assisted activity and receives generally
the same interest or benefits as are being made available or provided to
the group or class, the prohibition does not apply, except that if, by
not applying the prohibition against conflict of interest, a violation
of Tribal or State laws on conflict of interest would result, the
prohibition does apply.
(2) All records pertaining to the recipient's decision under this
section shall be maintained for HUD review upon request.
(50 FR 51676, Dec. 19, 1985, as amended at 53 FR 8064, Mar. 11, 1988)
24 CFR 571.607 Subpart H -- Program Performance
24 CFR 571.700 Reports to be submitted by grantee.
Grant recipients shall submit an annual status report of progress
made on previously funded open grants at a time determined by the Field
Office. The status report shall be in narrative form addressing three
areas:
(a) Progress. The progress in completing activities, the work
remaining, changes in the implementation schedule and a breakdown of
funds expended on each approved project;
(b) Grantee assessment. Description of the effectiveness of funded
activities in meeting the recipient's community development need; and
(c) Environment. (1) Compliance with the conditions under 58.34 of
this title for exempt projects; and
(2) If appropriate, environmental reviews of emergency projects under
58.33 of this title.
(Approved by the Office of Management and Budget under control number
2506-0043)
24 CFR 571.701 Review of recipient's performance.
(a) Objective. HUD will review each recipient's performance to
determine whether the recipient has achieved the following:
(1) Complied with the requirements of the Act, this part, and other
applicable laws and regulations;
(2) Carried out its activities substantially as described in its
application;
(3) Made substantial progress in carrying out its approved program;
(4) A continuing capacity to carry out the approved activities in a
timely manner; and
(5) The capacity to undertake additional activities funded under this
part.
(b) Basis for review. In reviewing each recipient's performance, HUD
will consider all available evidence which may include, but not be
limited to, the following:
(1) The approved application and any amendments thereto;
(2) Reports prepared by the recipient;
(3) Records maintained by the recipient;
(4) Results of HUD's monitoring of the recipient's performance,
including field evaluation of the quality of the work performed;
(5) Audit reports;
(6) Records of drawdowns on the Letter of Credit;
(7) Records of comments and complaints by citizens and organizations;
and
(8) Litigation.
24 CFR 571.702 Corrective and remedial actions.
(a) General. One or more corrective or remedial actions will be
taken by HUD when, one the basis of the performance review, HUD
determines that the recipient has not achieved the following:
(1) Complied with the requirements of the Act, this part, and other
applicable laws and regulations, including the environmental
responsibilities assumed under section 104(f) of Title I of the Act;
(2) Carried out its activities substantially as described in its
applications;
(3) Made substantial progress in carrying out its approved program;
or
(4) Shown the continuing capacity to carry out its approved
activities in a timely manner.
(b) Action. The action taken by HUD will be designed, first, to
prevent the continuance of the deficiency; second, to mitigate any
adverse effects or consequences of the deficiency; and third, to
prevent a recurrence of the same or similar deficiencies. The following
actions may be taken singly or in combination, as appropriate for the
circumstances:
(1) Request the recipient to submit progress schedules for completing
approved activities or for complying with the requirements of this part;
(2) Issue a letter of warning advising the recipient of the
deficiency (including environmental review deficiencies and housing
assistance deficiencies), describing the corrective actions to be taken,
establishing a date for corrective actions, and putting the recipient on
notice that more serious actions will be taken if the deficiency is not
corrected or is repeated;
(3) Advise the recipient that a certification of compliance will no
longer be acceptable and that additional information or assurances will
be required;
(4) Advise the recipient to suspend, discontinue, or not incur costs
for the affected activity;
(5) Advise the recipient to reprogram funds from affected activities
to other eligible activities, provided that such action shall not be
taken in connection with any substantial violation of part 58 and
provided that such reprogramming is subjected to the environmental
review procedures of part 58 of this title;
(6) Advise the recipient to reimburse the recipient's program account
or Letter of Credit in any amounts improperly expended;
(7) Change the method of payment from a Letter of Credit basis to a
reimbursement basis; and/or
(8) Suspend the Letter of Credit until corrective actions are taken.
24 CFR 571.703 Reduction or withdrawal of grant.
(a) General. A reduction or withdrawal of a grant under paragraph
(b) of this section will not be made until at least one of the
corrective or remedial actions specified in 571.702(b) has been taken
and only then if the recipient has not made an appropriate and timely
response. Prior to making such grant reduction or withdrawal, the
recipient shall also be notified and given an opportunity within a
prescribed time for an informal consultation regarding the proposed
action.
(b) Reduction or withdrawal. When the Field Office determines, on
the basis of a review of the grant recipient's performance that the
objectives set forth in 571.701(a) have not been met, the Field Office
may reduce or withdraw the grant, except that funds already expended on
eligible approved activities shall not be recaptured.
24 CFR 571.704 Other remedies for noncompliance.
(a) Secretarial actions. If the Secretary finds a recipient has
failed to comply substantially with any provision of this part even
after corrective actions authorized under 571.702 have been applied,
the following actions may be taken provided that reasonable notice and
opportunity for hearing is made to the recipient. (The Administrative
Procedure Act (5 U.S.C. 551 et seq.), where applicable, shall be a guide
in any situation involving adjudications where the Secretary desires to
take actions requiring reasonable notice and opportunity for hearing.)
(1) Terminate the grant to the recipient;
(2) Reduce the grant to the recipient by an amount equal to the
amount which was not expended in accordance with this part; or
(3) Limit the availability of funds to projects or activities not
affected by such failure to comply; provided, however, that the
Secretary may on due notice revoke the recipient's Letter of Credit in
whole or in part at any time if the Secretary determines that such
action is necessary to preclude the further expenditure of funds for
activities affected by such failure to comply.
(b) Secretarial referral to the Attorney General. If there is reason
to believe that a recipient has failed to comply substantially with any
provision of the Act, the Secretary may refer the matter to the Attorney
General of the United States with a recommendation that an appropriate
civil action be instituted. Upon such a referral, the Attorney General
may bring a civil action in any United States district court having
venue thereof for such relief as may be appropriate, including an action
to recover the amount of the assistance furnished under this part which
was not expended in accordance with it, or for mandatory or injunctive
relief.
24 CFR 571.704 PART 575 -- EMERGENCY SHELTER GRANTS PROGRAM: HOMELESS HOUSING ACT OF 1986
24 CFR 571.704 Subpart A -- General
Sec.
575.1 Applicability and purpose.
575.3 Definitions.
575.5 Waivers.
24 CFR 571.704 Subpart B -- Eligible Activities
575.21 Eligible activities and ineligible activities.
575.23 Who may carry out eligible activities.
24 CFR 571.704 Subpart C -- Allocations
575.31 Allocation of grant amounts.
575.33 Application requirements.
575.35 Review and approval of applications.
575.37 Deadlines for using grant amounts.
24 CFR 571.704 Subpart D -- Reallocations
575.41 Reallocation of grant amounts.
24 CFR 571.704 Subpart E -- Program Requirements
575.51 Matching funds.
575.53 Use as an emergency shelter.
575.55 Building standards.
575.57 Assistance to the homeless.
575.59 Other Federal requirements.
24 CFR 571.704 Subpart F -- Grant Administration
575.61 Responsibility for grant administration.
575.63 Method of payment.
575.65 Performance reports.
575.67 Recordkeeping.
575.69 Sanctions.
Authority: Sec. 525(a) of the Homeless Housing Act of 1986 (sec.
101(g), Pub. L. 99-500 (approved October 18, 1986) and Pub. L. 99-591
(approved October 30, 1986), making appropriations as provided for in
H.R. 5313, 99th Cong., 2d Sess. (1986) (as passed by the House of
Representatives and by the Senate), to the extent and in the manner
provided for in H. Rep. No. 977, 99th Cong., 2d Sess. (1986)); sec.
7(d) of the Department of Housing and Urban Development Act (42 U.S.C.
3535(d)).
Source: 52 FR 38869, Oct. 19, 1987, unless otherwise noted.
24 CFR 571.704 Subpart A -- General
24 CFR 575.1 Applicability and purpose.
(a) General. This part implements the Emergency Shelter Grants
program contained in the Homeless Housing Act of 1986 (section 101(g),
(Pub. L. 99-500 (approved October 18, 1986) and Pub. L. 99-591 (approved
October 30, 1986), making appropriations as provided for in Part C of
Title V of H.R. 5313, 99th Cong., 2d Sess. (1986) (as passed by the
House of Representatives and by the Senate), to extent and in the manner
provided for in H. Rep. No. 977, 99th Cong., 2d Sess. (1986)). The
program authorizes the Secretary of Housing and Urban Development to
make grants to States, units of general local government, and private
nonprofit organizations, for the rehabilitation or conversion of
buildings for use as emergency shelter for the homeless, and for the
payment of certain operating and social service expenses in connection
with emergency shelter for the homeless. The Emergency Shelter Grants
program authorized by Subtitle B of Title IV of the Stewart B. McKinney
Homeless Assistance Act is contained in 24 CFR part 576.
(b) Purpose. The Program is designed to help improve the quality of
existing emergency shelters for the homeless, to help make available
additional emergency shelters, and to help meet the costs of operating
emergency shelters and of providing certain essential social services to
homeless individuals, so that these persons have access not only to safe
and sanitary shelter, but also to the supportive services and other
kinds of assistance they need to improve their situations.
(52 FR 38869, Oct. 19, 1987, as amended at 53 FR 30193, Aug. 10,
1988)
24 CFR 575.3 Definitions.
Conversion means a change in the use of a building to an emergency
shelter for the homeless under this part, where the cost of conversion
and any rehabilitation costs exceed 75 percent of the value of the
building before conversion.
Emergency shelter means any facility with overnight sleeping
accommodations, the primary purpose of which is to provide temporary
shelter for the homeless in general or for specific populations of the
homeless.
Emergency shelter grant amounts and grant amounts mean grant amounts
made available under this part.
Grantee means the entity that executes a grant agreement with HUD
under this part. For purposes of this part, ''grantee'' is
(a) Any State, metropolitan city, or urban county that receives a
grant allocation under 575.31;
(b) Any unit of general local government that receives a grant based
on a reallocation under 575.41(b)(1);
(c) Any private nonprofit organization that receives a grant based on
a reallocation under 575.41(b)(2); and
(d) Any entity that receives a grant based on a reallocation under
575.41(b)(3).
Homeless means families and individuals who are poor and have no
access to either traditional or permanent housing.
HUD means the Department of Housing and Urban Development.
Major rehabilitation means rehabilitation that involves costs in
excess of 75 percent of the value of the building before rehabilitation.
Metropolitan city means a city that was classified as a metropolitan
city under section 102(a)(4) of the Housing and Community Development
Act of 1974 for the fiscal year immediately preceding the fiscal year
for which emergency shelter grant amounts are made available.
Nonprofit recipient means any private nonprofit organization
providing assistance to the homeless, to which a unit of general local
government distributes emergency shelter grant amounts.
Obligated means that the grantee or State recipient, as appropriate,
has placed orders, awarded contracts, received services or entered into
similar transactions that require payment from the grant amount. Grant
amounts that are awarded by a unit of general local government to a
private nonprofit organization providing assistance to the homeless are
obligated.
Private nonprofit organization means a secular or religious
organization described in section 501(c) of the Internal Revenue Code of
1954 which
(a) Is exempt from taxation under Subtitle A of the Code;
(b) Has an accounting system and a voluntary board; and
(c) Practices nondiscrimination in the provision of assistance.
Rehabilitation means labor, materials, tools, and other costs of
improving buildings, including repair directed toward an accumulation of
deferred maintenance; replacement of principal fixtures and components
of existing buildings; installation of security devices; and
improvement through alterations or incidental additions to, or
enhancement of, existing buildings, including improvements to increase
the efficient use of energy in buildings.
Renovation means rehabilitation that involves costs of 75 percent or
less of the value of the building before rehabilitation.
State means any of the several States and the Commonwealth of Puerto
Rico.
State recipient means any unit of general local government to which a
State makes available emergency shelter grant amounts.
Unit of general local government means any city, county, town,
township, parish, village, or other general purpose political
subdivision of a State.
Urban county means a county that was classified as an urban county
under section 102(a)(6) of the Housing and Community Development Act of
1974 for the fiscal year immediately preceding the fiscal year for which
emergency shelter grant amounts are made available.
Value of the building means the monetary value assigned to a building
by an independent real estate appraiser, or as otherwise reasonably
established by the grantee or the State recipient.
24 CFR 575.5 Waivers.
The Secretary of HUD may waive any requirement of this part that is
not required by law, whenever it is determined that undue hardship will
result from applying the requirement, or where application of the
requirement would adversely affect the purposes of the Emergency Shelter
Grants Program.
24 CFR 575.5 Subpart B -- Eligible Activities
24 CFR 575.21 Eligible activities and ineligible activities.
(a) Eligible activities. Emergency shelter grant amounts may be used
for one or more of the following activities relating to emergency
shelter for the homeless:
(1) Renovation, major rehabilitation, or conversion of buildings for
use as emergency shelters for the homeless.
(2) Provision of essential services, including (but not liiited to)
services concerned with employment, physical health, mental health,
substance abuse, education, or food. Grant amounts provided to a unit
of general local government may be used to provide an essential service
only if --
(i) The service is (A) a new service or (B) a quantifiable increase
in the level of a service above that which the unit of general local
government provided during the 12 calendar months immediately before it
received the grant amounts; and
(ii) Not more than 15 percent of any grant provided to a unit of
general local government, including grant amounts that the unit of
general local government distributes to a nonprofit recipient, is used
for these services.
(3) Payment of maintenance, operation (including rent, but excluding
staff), insurance, utilities, and furnishings.
(b) Ineligible activities. (1) Emergency shelter grant amounts may
not be used for activities other than those authorized under paragraph
(a) of this section. For example, grant amounts may not be used for:
(i) Acquisition or construction of an emergency shelter for the
homeless;
(ii) The costs of staff involved in overseeing the operation of the
shelter; or
(iii) Rehabilitation services performed by a grantee's or recipient's
staff, such as preparation of work specifications, loan processing, or
inspections.
(2) Grant amounts may not be used to renovate, rehabilitate, or
convert buildings owned by primarily religious organizations or entities
unless the following conditions are met:
(i) The building (or portion thereof) that is to be improved with HUD
assistance has been leased to an existing or newly established wholly
secular entity (which may be an entity established by the religious
organization);
(ii) The HUD assistance is provided to the lessee (and not the
lessor) to make the improvements;
(iii) The leased premises will be used exclusively for secular
purposes available to all persons regardless of religion;
(iv) The lease payments do not exceed the fair market rent of the
premises as they were before the improvements are made;
(v) The portion of the cost of any improvements that also serve a
nonleased part of the building will be allocated to and paid for by the
lessor;
(vi) The lessor enters into a binding agreement that, unless the
lessee, or a qualified successor lessee, retains the use of the leased
premises for a wholly secular purpose for at least the useful life of
the improvements, the lessor will pay to the lessee an amount equal to
the residual value of the improvements;
(vii) The lessee must remit the amount referred to in paragraph
(b)(2)(vi) of this section to the original grantee from which the
amounts used to renovate, rehabilitate, or convert the building under
this paragraph (b)(2) were derived: e.g., if the amounts under this
paragraph initially were made available to a State or to a unit of
general local government as a formula allocation ( 575.31) or a
reallocation ( 575.41), the amount that the lessor provides to the
lessee is remitted to the State or unit of general local government, as
appropriate. The original grantee may use this amount to further the
objectives of this part. If, however, a private nonprofit organization
is the lessee as well as the grantee, the organization must remit the
amount referred to in paragraph (b)(2)(vi) of this section to HUD;
(viii) The lessee may also enter into a management contract
authorizing the lessor religious organization to operate the facility,
including the provision of essential services, in carrying out the
secular purpose. In such case, the religious organization must agree in
the management contract to carry out its contractual responsibilities in
a manner free from religious influences pursuant to conditions
prescribed by HUD.
24 CFR 575.23 Who may carry out eligible activities.
(a) Grantees and State recipients. All grantees (except States) and
State recipients may carry out activities with emergency shelter grant
amounts. All of a State's formula allocation must be made available to
units of general local government in the State, which may include
metropolitan cities or urban counties, whether or not such cities or
counties receive grant funds directly from HUD.
(b) Nonprofit recipients. Units of general local government -- both
grantees and State recipients -- may distribute all or part of their
grant amounts to nonprofit recipients to be used for emergency shelter
grant activities.
24 CFR 575.23 Subpart C -- Allocations
24 CFR 575.31 Allocation of grant amounts.
(a) Allocation grantees. HUD will initially allocate amounts
available for emergency shelter grants to State, metropolitan cities,
and urban counties.
(b) Calculation of allocations. In determining the amount of the
allocation for each State, metropolitan city, and urban county, HUD will
provide that the percentage of the total amount available for allocation
to any State, metropolitan city, or urban county is equal to the
percentage of the total amount available for section 106 of the Housing
and Community Development Act of 1974 for the prior fiscal year that was
allocated to such State, metropolitan city, or urban county.
(c) Reallocation to State. If an allocation to a metroplitan city or
urban county would be less than $30,000, the amount is added to the
allocation to the State in which the city or county is located.
(d) Notification of allocation amount. HUD will notify in writing
each State, metropolitan city, and urban county that is entitled to
receive an allocation under this section, of the amount of its
allocation.
24 CFR 575.33 Application requirements.
(a) Application deadlines -- (1) Metropolitan cities and urban
counties. A metropolitan city or urban county that elects to receive an
emergency shelter grant on the basis of the allocation in 575.31 must
submit the application referred to in paragraph (b) of this section to
the responsible HUD field office, no later than 45 days after the date
of the notification to the city or county of its grant allocation under
575.31(d).
(2) States. A State must provide written notification to the
responsible HUD field office of its intention to participate in the
Emergency Shelter Grants Program within 45 days of the date of the
notification under 575.31(d) to the State of its grant allocation. A
State that elects to participate in the Program must submit the
application referred to in paragraph (b) of this section to the
responsible HUD field office, no later than 30 days after the end of the
45-day election period referred to in the preceding sentence.
(b) Application. To receive an emergency shelter grant, a State,
metropolitan city, or urban county must submit:
(1) A Standard Form 424.
(2) A Homeless Assistance Plan, which describes the proposed use of
the emergency shelter grant. In the case of a metropolitan city or
urban county, the Plan must also identify the respective grant amounts
proposed to be used for each of the three categories of eligible
activities set forth in 575.21(a) (1), (2), and (3). In the case of a
State, the proposed use of funds must consist of a description of the
method by which the grantee will make the grant amounts available to
units of general local government.
(3) The following certifications and assurances: (i) A certification
that the State, metropolitan city or urban county, will provide the
matching supplemental funds required by 575.51. The certification must
describe the sources and amounts of the supplemental funds. A State's
matching supplemental funds certification is to be submitted with its
interim performance report, as provided by 575.65.
(ii) A certification that the metropolitan city or urban county will
comply, and that the State will ensure that its State recipients comply,
with:
(A) The requirements of 575.53 concerning the continued use of
buildings, for which emergency shelter grant amounts are used, as
emergency shelters for the homeless;
(B) The building standards requirements of 575.55; and
(C) The requirements of 575.57 concerning assistance to the
homeless.
(iii) A certification that the metropolitan city or urban county will
conduct its emergeny shelter grant activities under this part, and that
the State or unit of general local government (as appropriate) will
ensure that State recipients or nonprofit recipients conduct their
activities under this part in conformity with the nondiscrimination and
equal opportunity requirements contained in 575.59(a) and the other
requirements of this part and of other applicable Federal law.
(iv) If grant amounts are proposed to be used to provide emergency
shelter for the homeless in hotels or motels, or other commercial
facilities providing transient housing, a certification from the State,
metropolitan city, or urban county that:
(A) The grantee, or State recipient or nonprofit recipient (as
appropriate) has executed (or will execute) an agreement with the
provider of such housing that comparable living space, in terms of
quality, available amenities, and square footage, will be available in
the facility for use as emergency shelter for at least the applicable
period specified in 575.53;
(B) Leases negotiated between the grantee, or State recipient or
nonprofit recipient, with the provider of such housing make available
such living space at substantially less than the daily room rate
otherwise charged by the facility; and
(C) The grantee, or State recipient or nonprofit recipient, has
considered using other facilities as emergency shelters, and has
determined that the use of such living space in the facilities provides
the most cost-effective means of providing emergency shelter for the
homeless in its jurisdiction.
(4)(i) An assurance by the State, metropolitan city, or urban county
that no renovation, major rehabilitation, or conversion activity funded
under this part will:
(A) Involve alterations to a property that is listed on the National
Register of Historic Places, is located in a historic district or is
immediately adjacent to a property that is listed on the Register, or is
deemed by the State Historic Preservation Officer to be eligible for
listing on the Register;
(B) Take place in any 100-year floodplain designated by map by the
Federal Emergency Managment Agency; or
(C) Be inconsistent with HUD environmental standards in 24 CFR part
51 or with the State's Coastal Zone Management plan.
(ii) In lieu of the assurance required by paragraph (b)(4)(i) of this
section, renovation, major rehabilitation, or conversion of a building
may be carried out with emergency shelter grant amounts if:
(A)(1) The State, metropolitan city, or urban county informs HUD that
an environmental review of the area in which the proposed activities are
to be located --
(i) Was previously completed for the purposes of another HUD program
under 24 CFR part 50 or 58, and
(ii) Addressed properties, activities, and effects comparable to
those proposed for assistance under this part; and
(2) HUD finds that the prior review applies to the proposed
activities; or
(B) The State, metropolitan city, or urban county (1) determines that
the only feasible locations for the assisted activities preclude one or
more of the assurances in paragraph (b)(4)(i) of this section, and that
paragraph (b)(4)(ii)(A) of this section does not apply, and (2) requests
a conditional grant in accordance with 575.35(c)(2).
(5) A certification by the State, metropolitan city, or urban county
that the submission of the application required by this paragraph (b) is
authorized under State and local law (as applicable), and that the
grantee possesses the legal authority to carry out emergency shelter
grant activities in accordance with the provisions of this part.
24 CFR 575.35 Review and approval of applications.
(a) Time for approval. An application from a State, metropolitan
city, or urban county will be processed and approved as expeditiously as
possible, and will be deemed approved 30 days after HUD receives it,
unless within that period HUD notifies the grantee that its application
is not approved.
(b) Review of applications. HUD will approve an application, unless
it determines that the application:
(1) Was not received or postmarked within the applicable time period
specified in 575.33(a);
(2) Does not contain the items required by 575.33(b); or
(3) Does not otherwise comply with the requirements of this part or
of other Federal law.
(c) Conditional grant. HUD may grant a conditional grant restricting
the obligation and use of emergency shelter grant amounts. Conditional
grants may be made:
(1) Where there is substantial evidence that there has been, or there
will be, a failure to meet the requirements of this part. In such a
case, the reason for the conditional grant, the action necessary to
remove the condition, and the deadline for taking those actions will be
specified. Failure to satisfy the condition may result in imposition of
a sanction under 575.69 or in any action authorized under any other
applicable Federal law.
(2) Where the State, metropolitan city, or urban county requests a
conditional grant because the only feasible program sites for
renovation, major rehabilitation, or conversion activities assisted
under this part preclude one or more of the assurances in 575.33(b)(4)
(i), and (ii)(A) does not apply. In such a case, HUD must comply with
applicable environmental authorities before grant amounts may be
committed and assisted activities may be commenced.
(d) Grant agreement. The grant will be made by means of a grant
agreement executed by HUD and the grantee.
(e) Reallocation amounts. Any emergency shelter grant amounts that
are returned to HUD because of (1) a failure to meet the application
deadlines under 575.33(a) or (2) an application disapproval under
paragraph (b) of this section will be reallocated under 575.41.
(f) Letter to proceed. Upon request of a metropolitan city or urban
county, at any time after submission of an application, HUD may
authorize the city or county to incur costs for subsequent reimbursement
when the grant is approved.
24 CFR 575.37 Deadlines for using grant amounts.
(a) States and State recipients. (1) Each State must make available
to its State recipients all emergency shelter grant amounts that it was
allocated under 575.31, within 65 days of the date of the grant award
by HUD.
(2) Each State recipient must have all its grant amounts obligated by
180 days after the date on which the State made the grant amounts
available to it.
(b) Metropolitan cities and urban counties. Each metropolitan city
and urban county must have all grant amounts that it was allocated under
575.31 obligated by 180 days after the date of the grant award by HUD.
(c) Reallocation amounts. (1) Any emergency shelter grant amounts
that are not made available or obligated within the time periods
specified in paragraph (a)(1) of this section (providing 65 days of the
date of the HUD grant award within which States must make funds
available to their State recipients) or paragraph (b) of this section
(providing 180 days after the date of the HUD grant award within which
metropolitan cities and urban counties must obligate grant amounts under
575.31) of this section, respectively, will be reallocated for use
under 575.41. Any emergency shelter grant amounts that are not made
available or obligated within the time periods specified in paragraph
(a)(1) or (b) of this section, respectively, will be reallocated for use
under 575.41.
(2) The State must recapture any grant amounts that a State recipient
does not obligate within the time period specified in paragraph (a)(2)
of this section. The State, at its option, must make these grant
amounts (or other amounts returned to the State, with the exception of
amounts returned under 575.21(b)(2)(vii)) available as soon as
practicable to other units of general local government for use within
the time period specified in paragraph (a)(2) of this section, or to HUD
for reallocation under 575.41.
24 CFR 575.37 Subpart D -- Reallocations
24 CFR 575.41 Reallocation of grant amounts.
(a) General. From time to time, HUD will reallocate emergency
shelter grant amounts that are returned or unused, as those terms are
defined in paragraph (f) of this section. HUD will make reallocations
by direct notification or Federal Register notice that will set forth
the terms and conditions under which the grant amounts are to be
reallocated and grant awards are to be made. HUD may use State and
local boards established under FEMA's Emergency Food and Shelter Program
as a resource to identify potential applicants for reallocated grant
amounts.
(b) Grantees. Reallocations may be made to:
(1) Units of general local government demonstrating extraordinary
need or large numbers of homeless individuals;
(2) Private nonprofit organizations providing assistance to the
homeless; and
(3) Units of general local government, private nonprofit
organizations and other entities, to meet other needs that HUD
determines are consistent with the purposes of the Emergency Shelter
Grants Program.
(c) Reallocation -- returned grant amounts. HUD will endeavor to
reallocate returned emergency shelter grant amounts within the
jurisdiction to which the amounts were originally allocated under
575.31.
(1) Returned grant amounts that were allocated to a State will first
be made available to units of general local government within the State
and, if any grant amounts remain, then to private nonprofit
organizations that are providing assistance to the homeless and that are
located within the State.
(2) Returned grant amounts that were allocated to a metropolitan city
or urban county will be made available first for use in the city or
urban county; to units of general local government that are authorized
under applicable law to carry out activities under this part serving the
homeless in the city or urban county; and then, if grant amounts
remain, to private nonprofit organizations.
(3) The field office will announce the availability of returned grant
amounts. The announcement will establish deadlines for submitting
applications and will set out other terms and conditions relating to
grant awards, consistent with this part. The announcement will specify
the application documents to be submitted which include:
(i) A Standard Form 424;
(ii) A Homeless Assistance Plan containing the type of information
required from a metropolitan city or urban county under 575.33(b)(2);
(iii) Certifications required at 575.33(b)(3)(iii); and
(iv) Other certifications and assurances similar to those required
from a metropolitan city or urban county under 575.33(b)(3), (4) and
(5), as appropriate.
(4) The field office may establish maximum grant amounts, considering
the grant amounts available.
(5) The field office will rank the applications using the criteria in
paragraph (e) of this section.
(6) HUD may make a grant award for less than the amount applied for
or for fewer than all of the activities identified in the application,
based on competing demands for grant amounts and the extent to which the
respective activities address the needs of the homeless.
(7) HUD will endeavor to make grant awards within 30 days of the
application deadline or as soon thereafter as practicable.
(d) Reallocation -- unused grant amounts. Unused grant amounts
(including any amounts that remain after reallocation under paragraph
(c) of this section) will be available, in HUD's discretion, for
reallocation from time to time to one or more of the grantees specified
in paragraph (b) of this section.
(e) Selection criteria. HUD will award grants under paragraphs (c)
and (d) of this section based on consideration of the following
criteria:
(1) The nature and extent of the unmet homeless need within the
jurisdiction in which the grant amounts will be used;
(2) The extent to which the proposed activities address this need;
and
(3) The ability of the grantee to carry out the proposed activities
promptly.
(f) When grant amounts are returned or unused. (1) For purposes of
this section, emergency shelter grant amounts are considered
''returned'' when they become available for reallocation because a
grantee does not execute a grant agreement with HUD for them, e.g., when
a grantee for which an allocation is made under 575.31 fails to meet
the application deadlines under 575.37(a), or has its application
disapproved under 575.33(b) or approved with a reduced grant amount in
accordance with 575.69.
(2) For purposes of this section, emergency shelter grant amounts are
considered ''unused'' when they become available for reallocation by HUD
after a grantee has executed a grant agreement with HUD for them: e.g.,
where
(i) A State fails to make its grant amounts available to State
recipients within the time period specified in 575.33(a)(1);
(ii) A metropolitan city or urban county fails to obligate grant
amounts, within the time period specified in 575.33(b);
(iii) A State recaptures grant amounts from a State recipient and
makes them available to HUD as provided in 575.37(c)(2);
(iv) Grant amounts become available as a result of imposition of a
sanction (other than a reduction of grant amounts) under 575.69 or the
close-out of a grant; or
(v) A grantee referrred to in paragraph (b) of this section fails to
obligate grant amounts within the time priod specified in its grant
agreement.
24 CFR 575.41 Subpart E -- Program Requirements
24 CFR 575.51 Matching funds.
(a) General. Each grantee must supplement its emergency shelter
grant amounts with an equal amount of funds from sources other than
under this part. These funds must be provided after the date of the
grant award to the grantee. A grantee may comply with this requirement
by providing the supplemental funds itself, or through supplemental
funds or voluntary efforts provided by any State recipient or nonprofit
recipient (as appropriate).
(b) Calculating the matching amount. In calculating the amount of
supplemental funds, there may be included the value of any donated
material or building; the value of any lease on a building; any salary
paid to staff of the grantee or to any State or nonprofit recipient (as
appropriate) in carrying out the emergency shelter program; and the
time and services contributed by volunteers to carry out the emergency
shelter program, determined at the rate of $5 per hour. For purposes of
this paragraph (b), the grantee will determine the value of any donated
material or building, or any lease, using any method reasonably
calculated to establish a fair market value.
24 CFR 575.53 Use as an emergency shelter.
(a) General. Any building for which emergency shelter grant amounts
are used for one or more of the eligible activities described in
575.21(a) (1) and (3) must be maintained as a shelter for the homeless
for not less than a three-year period, or for not less than a 10-year
period if the grant amounts are used for major rehabilitation or
conversion of the building. Using emergency shelter grant amounts for
eligible activities described in 575.21(a)(2) does not trigger either
the three- or ten-year period.
(b) Calculating the applicable period. The three- and 10-year
periods referred to hn paragraph (a) of this section begin to run:
(1) In the case of a building that was not operated as an emergency
shelter for the homeless before receipt of grant amounts under this
part, on the date of initial occupancy as an emergency shelter for the
homeless.
(2) In the case of a building that was operated as an emergency
shelter before receipt of grant amounts under this part, on the date
that grant amounts are first obligated to the shelter.
24 CFR 575.55 Building standards.
Any building for which emergency shelter grant amounts are used for
renovation, conversion, or major rehabilitation must meet local
government safety and sanitation standards.
24 CFR 575.57 Assistance to the homeless.
Homeless individuals must be given assistance in obtaining:
(a) Appropriate supportive services, including permanent housing,
physical health treatment, mental health treatment, counseling,
supervision, and other services essential for achieving independent
living; and
(b) Other Federal, State, local, and private assistance available for
such individuals.
24 CFR 575.59 Other Federal requirements.
Use of emergency shelter grant amounts must comply with the following
additional requirements:
(a) Nondiscrimination and Equal Opportunity. (1) The requirements of
Title VIII of the Civil Rights Act of 1968, 42 U.S.C. 3601 through 3619,
and implementing regulations; Executive Order 11063 and implementing
regulations at 24 CFR part 107; and Title VI of the Civil Rights Act of
1964 (42 U.S.C. 2002d through 2000d-4) and implementing regulations
issued at 24 CFR part 1;
(2) The prohibitions against discrimination on the basis of age under
the Age Discrimination Act of 1975 (42 U.S.C. 6101-6107) and the
prohibitions against discrimination against handicapped individuals
under section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794);
(3) The requirements of Executive Order 11246 and the regulations
issued under the Order at 41 CFR chapter 60; and
(4) The requirements of section 3 of the Housing and Urban
Development Act of 1968, 12 U.S.C. 1701u (see 570.607(b) of this
chapter); and
(5) The requirements of Executive Orders 11625, 12432, and 12138.
Consistent with HUD's responsibilities under these Orders, the grantee
must make efforts to encourage the use of minority and women's business
enterprises in connection with activities funded under this part.
(6) The requirement that the recipient or grantee make known that use
of the facilities and services is available to all on a
nondiscriminatory basis. Where the procedures that a recipient or
grantee intends to use to make known the availability of the ESG
services are unlikely to reach persons of any particular race, color,
religion, sex or national origin who may qualify for such services, the
recipient or grantee must establish additional procedures that will
ensure that these persons are made aware of the facility and services.
(7) The requirement of Executive Order 12372 and the regulations
issued under the order at 24 CFR part 52, to the extent provided by
Federal Register notice in accordance with 52.3.
(b) Grant Administration. The policies, guidelines, and requirements
of OMB Circulars Nos. A-110 and A-112, as they relate to the acceptance
and use of emergency shelter grant amounts by private nonprofit
organizations, and OMB Circular A-87 and OMB Circular A-102 (as set
forth in 24 CFR part 85), as they relate to the acceptance and use of
emergency shelter grant amounts by States and units of general local
government, except that 24 CFR 85.10, 85.24(a)(1) and (c)(1),
85.40(b)-(d) and (f) do not apply. Program income is authorized to be
used in accordance with 85.25(g)(2).
(c) Uniform Federal Accessibility Standards. For major
rehabilitation or conversion, the Uniform Federal Accessibility
Standards at 24 CFR part 40, appendix A.
(d) Lead-based paint. The requirements as applicable, of the
Lead-Based Paint Poisoning Prevention Act (42 U.S.C. 4821 through 4846)
and implementing regulations at 24 CFR part 35.
(e) Conflicts of interest. In addition to the conflict of interest
requirements in OMB Circular A-110 and 24 CFR part 85, no person (1) who
is an employee, agent, consultant, officer, or elected or appointed
official of the grantee, State recipient, or nonprofit recipient (or of
any designated public agency) that receives emergency shelter grant
amounts and who exercises or has exercised any functions or
responsibilities with respect to assisted activities or (2) who is in a
position to participate in a decision making process or gain inside
information with regard to such activities, may obtain a personal or
financial interest or benefit from the activity, or have an interest in
any contract, subcontract, or agreement with respect to the activity, or
the proceeds of any contract, subcontract, agreement related to the
activity, either for his or herself or those with whom he or she has
family or business ties, during his or her tenure or for one year
thereafter. (HUD may grant an exception to this exclusion as provided
in 570.611(d) and (e) of this chapter.)
(f) Use of debarred, suspended, or ineligible contractors. The
provisions of 24 CFR part 4 relating to the employment, engagement of
services, awarding of contracts, or funding of any contractors or
subcontractors during any period of debarment, suspension, or placement
in ineligibility status.
(g) Flood insurance. No site proposed on which renovation, major
rehabilitation, or conversion of a building is to be assisted under this
part, other than by grant amounts allocated to State, may be located in
an area that has been identified by the Federal Emergency Management
Agency (FEMA) as having special flood hazards, unless the community in
which the area is situated is participating in the National Flood
Insurance Program and the regulations thereunder (44 CFR parts 59
through 79) or less than a year has passed since FEMA notification
regarding such hazards, and the grantee will ensure that flood insurance
on the structure is obtained in compliance with section 102(a) of the
Flood Disaster Protection Act of 1973 (42 U.S.C. 4001 et seq.).
(h) Audit. The financial management system used by a State or unit
of general local government that is a grantee or State recipient shall
provide for audits in accordance with 24 CFR part 44. A private
nonprofit organization is subject to the audit requirements of OMB
Circular A-110.
(52 FR 38869, Oct. 19, 1987, as amended at 53 FR 8064, Mar. 11, 1988)
24 CFR 575.59 Subpart F -- Grant Administration
24 CFR 575.61 Responsibility for grant administration.
Grantees are responsible for ensuring that emergency shelter grant
amounts are administered in accordance with the requirements of this
part and other applicable laws. Thereafter, the grantee would be
reimbursed for the amount of its actual cash disbursement. In the case
of States making grant amounts available to State recipients, and in the
case of units of general local government distributing grant amounts to
nonprofit recipients, the States and the units of local government are
responsible for ensuring that their respective recipients carry out the
recipients' emergency shelter grant programs in compliance with all
applicable requirements.
24 CFR 575.63 Method of payment.
Payments are made to a grantee upon its request and may include a
working capital advance for 30 days' cash needs or an advance of $5,000,
whichever is greater. Thereafter, the grantee would be reimbursed for
the amount of its actual cash disbursement needs. If a grantee requests
a working capital advance, it must base the request on a realistic, firm
estimate of the amounts required to be disbursed over the 30-day period
in payment of eligible activity costs. Payments with respect to grants
of $120,000 or more will be made by letter of credit if the grantee
meets the requirements of 24 CFR part 85.
(53 FR 8065, Mar. 11, 1988)
24 CFR 575.65 Performance reports.
(a) Interim performance report -- (1) Timing of report. (i) A
metropolitan city or urban county must submit its interim performance
report to HUD no later than 30 days after the end of the 180-day period
allowed for the obligation of grant amounts under 575.37(b), or 30 days
after the date when all grant amounts are obligated, whichever comes
first.
(ii) A State must submit its interim performance report not later
than 90 days from the date of the State's distribution of funds to its
units of general local government; except that where a HUD Area Office
grants a State an extension of the 65-day deadline for obligating its
grant funds, a corresponding extension for filing of the interim report
will automatically be granted. A grantee receiving funds under 575.41,
Reallocation of funds, must submit its interim performance report to HUD
within the period specified in its grant agreement.
(2) Report content. (i) In the case of a grantee other than a State,
the interim performance report must contain information on the amount of
funds obligated for each of the three categories of eligible activities
described in 575.21(a) (1), (2), and (3).
(ii) A State report must provide this information for each State
recipient.
(3) Matching funds certification. A State grantee must submit with
its interim performance report the matching funds certification required
by 575.33(b)(3)(i).
(b) Annual performance report -- (1) Content. A grantee other than a
State must provide HUD with an annual performance report on the
obligation and expenditure of funds for each of the three categories of
eligible activities described in 575.21(a) (1), (2) and (3). A State
must provide this information for each State recipient.
(2) Timing. The initial annual performance report is required for
the period ending December 31 following the submission of the interim
report, and is due no later than 30 days after December 31. A grantee
must continue to submit this report annually until all emergency shelter
grant amounts are reported as expended.
24 CFR 575.67 Recordkeeping.
Each grantee and State recipient must maintain records necessary to
document compliance with the provisions of this part.
24 CFR 575.69 Sanctions.
(a) HUD sanctions. If HUD determines that a grantee is not complying
with the requirements of this part or of other applicable Federal law,
HUD may (in addition to any remedies that may otherwise be available)
take any of the following sanctions, as appropriate:
(1) Issue a warning letter that further failure to comply with such
requirements will result in a more serious sanction;
(2) Condition a future grant;
(3) Direct the grantee to stop the incurring of costs with grant
amounts;
(4) Require that some or all of the grant amounts be remitted to HUD;
(5) Reduce the level of funds the grantee would otherwise be entitled
to receive; or
(6) Elect not to provide future grant funds to the grantee until
appropriate actions are taken to ensure compliance.
(b) State sanctions. If a State determines that a State recipient is
not complying with the requirements of this part or other applicable
Federal laws, the State must take appropriate action which may include
the actions described in paragraph (a) of this section. Any grant
amounts that become available to a State as a result of a sanction under
this section must, at the option of the State, be made available (as
soon as practicable) to other units of general local government for use
within the time periods specified in 575.37(a)(2), or to HUD for
reallocation under 575.41.
(c) Reallocations. Any grant amounts that become available to HUD as
a result of the imposition of a sanction under this section will be
reallocated under 575.41.
24 CFR 575.69 PART 576 -- EMERGENCY SHELTER GRANTS PROGRAM: STEWART B. McKINNEY HOMELESS ASSISTANCE ACT
24 CFR 575.69 Part 576
24 CFR 575.69 Subpart A -- General
Sec.
576.1 Applicability and purpose.
576.3 Definitions.
576.5 Waivers.
24 CFR 575.69 Subpart B -- Eligible Activities
576.21 Eligible activities.
576.22 Limitations on the use of assistance.
576.23 Who may carry out eligible activities.
24 CFR 575.69 Subpart C -- Comprehensive Housing Affordability Strategy
576.31 Comprehensive housing affordability strategy.
24 CFR 575.69 Subpart D -- Allocations
576.41 Overall allocation of grant amounts.
576.43 Allocation of grant amounts to States, metropolitan cities,
and urban counties.
576.45 Allocation of grant amounts to Territories.
24 CFR 575.69 Subpart E -- Award and Use of Grant Amounts
576.51 Application requirements.
576.52 Environmental review.
576.53 Review and approval of applications.
576.55 Deadlines for using grant amounts.
24 CFR 575.69 Subpart F -- Reallocations
576.61 Reallocation of grant amounts; lack of approved Comprehensive
Housing Affordability Strategy; formula cities and counties.
576.63 Reallocation of grant amounts; lack of approved Comprehensive
Housing Affordability Strategy; States and Territories.
576.67 Reallocation of grant amounts; returned or unused amounts.
24 CFR 575.69 Subpart G -- Program Requirements
576.71 Matching funds.
576.73 Use as an emergency shelter.
576.75 Building standards.
576.77 Assistance to the homeless.
576.79 Other Federal requirements.
576.80 Relocation and acquisition.
24 CFR 575.69 Subpart H -- Grant Administration
576.81 Responsibility for grant administration.
576.83 Method of payment.
576.85 Performance reports.
576.87 Recordkeeping.
576.89 Sanctions.
Authority: Sec. 416, Stewart B. McKinney Homeless Assistance Act
(42 U.S.C. 11376); sec. 7(d), Department of Housing and Urban
Development Act (42 U.S.C. 3535(d)).
Source: 54 FR 46799, Nov. 7, 1989, unless otherwise noted.
24 CFR 575.69 Subpart A -- General
24 CFR 576.1 Applicability and purpose.
(a) General. This part implements the Emergency Shelter Grants
program contained in subtitle B of title IV of the Stewart B. McKinney
Homeless Assistance Act (Pub. L. 100-77, approved July 22, 1987). The
program authorizes the Secrtary of Housing and Urban Development to make
grants to States and units of general local government (and to private
nonprofit organizations providing assistance to homeless individuals in
the case of grants made with reallocated amounts) for the rehabilitation
or conversion of buildings for use as emergency shelter for the
homeless, for the payment of certain operating and social service
expenses in connection with emergency shelter for the homeless, and for
homeless prevention activities. The Emergency Shelter Grants program
authorized by the Homeless Housing Act of 1986 is contained in 24 CFR
part 575.
(b) Purpose. The program is designed to help improve the quality of
existing emergency shelters for the homeless, to help make available
additional emergency shelters, to help meet the costs of operating
emergency shelters and of providing certain essential social services to
homeless individuals, so that these persons have access not only to safe
and sanitary shelter, but also to the supportive services and others
kinds of assistance they need to improve their situations. The program
is also intended to restrict the increase of homelessness through the
funding of preventive programs and activities.
24 CFR 576.3 Definitions.
Comprehensive Housing Affordability Strategy (CHAS or housing
strategy). The housing strategy prepared by a jurisdiction and
submitted to HUD in accordance with 24 CFR part 91.
Conversion means a change in the use of a building to an emergency
shelter for the homeless under this part, where the cost of conversion
and any rehabilitation costs exceed 75 percent of the value of the
building before conversion. If such costs do not exceed 75 percent of
the value of the building before conversion, they are to be considered
rehabilitation and the three-year use requirement under 576.73 applies.
The conversion of any building to an emergency shelter that is assisted
under this part must meet local government safety and sanitation
standards under 576.75. For projects of 15 or more units where
rehabilitation costs are 75 percent or more of the replacement cost of
the building, that project must meet the requirements of 24 CFR 8.23(a).
Emergency shelter means any facility, the primary purpose of which is
to provide temporary or transitional shelter for the homeless in general
or for specific populations of the homeless.
Emergency shelter grant amounts or grant amounts mean grant amounts
made available under this part.
Essential services includes services concerned with employment,
health, drug abuse, and education and may include (but are not limited
to):
(a) Assistance in obtaining permanent housing.
(b) Medical and psychological counseling and supervision.
(c) Employment counseling.
(d) Nutritional counseling.
(e) Substance abuse treatment and counseling.
(f) Assistance in obtaining other Federal, State, and local
assistance including mental health benefits; employment counseling;
medical assistance; Veteran's benefits; and income support assistance
such as Supplemental Security Income benefits, Aid to Families with
Dependent Children, General Assistance, and Food Stamps;
(g) Other services such as child care, transportation, job placement
and job training; and
(h) Staff salaries necessary to provide the above services.
Formula city or county means a metropolitan city or urban county that
is eligible to receive an allocation of grant amounts under 576.43.
Grantee means the entity that executes a grant agreement with HUD
under this part. For purposes of this part, grantee is:
(a) Any State, metropolitan city, or urban county that receives a
grant allocation under 576.43;
(b) Any Territory that receives a grant allocation under 576.45;
and
(c) Any State, Territory, unit of general local government, or
private nonprofit organization that receives a grant based on a
reallocation under subpart F.
Homeless means:
(a) An individual or family which lacks a fixed, regular, and
adequate nighttime residence; or
(b) An individual or family which has a primary nighttime residence
that is:
(1) A supervised publicly or privately operated shelter designed to
provide temporary living accommodations (including welfare hotels,
congregate shelters, and transitional housing for persons with mental
illness);
(2) An institution that provides a temporary residence for
individuals intended to be institutionalized; or
(3) A public or private place not designed for, or ordinarily used
as, a regular sleeping accommodation for human beings.
(4) The term does not include any individual imprisoned or otherwise
detained pursuant to an Act of the Congress or a State law.
Homeless prevention means activities or programs designed to prevent
the incidence of homelessness, including (but not limited to):
(a) Short-term subsidies to defray rent and utility arrearages for
families that have received eviction or utility termination notices;
(b) Security deposits or first month's rent to permit a homeless
family to move into its own apartment;
(c) Mediation programs for landlord-tenant disputes;
(d) Legal services programs for the representation of indigent
tenants in eviction proceedings;
(e) Payments to prevent foreclosure on a home; and
(f) Other innovative programs and activities designed to prevent the
incidence of homelessness.
HUD means the Department of Housing and Urban Development.
Major rehabilitation means rehabilitation that involves costs in
excess of 75 percent of the value of the building before rehabilitation.
Major rehabilitation assisted under this part must meet local
government safety and sanitation standards under 576.75. In addition,
for projects of 15 or more units where rehabilitation costs are 75
percent or more of the replacement cost of the building, that project
must meet the requirements of 24 CFR 8.23(a).
Metropolitan city means a city that was classified as a metropolitian
city under section 102(a)(4) of the Housing and Community Development
Act of 1974 for the fiscal year immediately preceding the fiscal year
for which emergency shelter grant amounts are made available.
Nonprofit recipient means any private nonprofit organization
providing assistance to the homeless, to which a State or unit of
general local government distributes emergency shelter grant amounts.
Obligated means that the grantee or State recipient, as appropriate,
has placed orders, awarded contracts, received services, or entered
similar transactions that require payment from the grant amount. Grant
amounts that a unit of general local government or State awards to a
private nonprofit organization by a written agreement or letter of award
requiring payment from the grant amount are obligated.
Private nonprofit organization means a secular or religious
organization described in section 501(c) of the Internal Revenue Code of
1988 which:
(a) Is exempt from taxation under subtitle A of the Code;
(b) Has an accounting system and a voluntary board; and
(c) Practices nondiscrimination in the provision of assistance.
Rehabilitation means labor, materials, tools, and other costs of
improving buildings, including repair directed toward an accumulation of
deferred maintenance; replacement of principal fixtures and components
of existing buildings; installation of security devices; and
improvement through alterations or incidental additions to, or
enhancement of, existing buildings, including improvements to increase
the efficient use of energy in buildings, and structural changes
necessary to make the structure accessible for persons with physical
handicaps. Rehabilitation also includes the conversion of a building to
an emergency shelter for the homeless under this part, where the cost of
conversion and any rehabilitation costs does not exceed 75 percent of
the value of the building before conversion. Rehabilitation assisted
under this part must meet local government safety and sanitation
standards under 576.75. In addition, for projects of 15 or more units
where rehabilitation costs are 75 percent or more of the replacement
cost of the building, that project must meet the accessibility
requirements of section 504 of the Rehabilitation Act of 1973, as
amended, as set forth in 24 CFR 8.23(a); or where rehabilitation costs
are less than 75 percent of the replacement cost of the building, that
project must meet the requirements of 24 CFR 8.23(b).
Renovation means rehabilitation that involves costs of 75 percent or
less of the value of the building before rehabilitation. Renovations
assisted under this part must meet local government safety and
sanitation standards. ( 576.75.) In addition, for projects of 15 or
more units where rehabilitation costs are less than 75 percent of the
replacement cost of the building, that project must meet the
requirements of 24 CFR 8.23(b).
State means each of the several States and the Commonwealth of Puerto
Rico.
Territory means each of the following: the Virgin Islands, Guam,
American Samoa, the Northern Mariana Islands, Palau (Trust Territory of
the Pacific), and any other territory or possession of the United
States.
State recipient means any unit of general local government or
nonprofit organization to which a State makes available emergency
shelter grant amounts.
Unit of general local government means any city, county, town,
township, parish, village, or other general purpose political
subdivision of a State.
Urban county means a county that was classified as an urban county
under section 102(a)(6) of the Housing and Community Development Act of
1974 for the fiscal year immediately preceding the fiscal year for which
emergency shelter grant amounts are made available.
Value of the building means the monetary value assigned to a building
by an independent real estate appraiser, or as otherwise reasonably
established by the grantee or the State recipient.
(54 FR 46799, Nov. 7, 1989, as amended at 56 FR 56128, Oct. 31, 1991)
24 CFR 576.5 Waivers.
The Secretary of HUD may waive any requirement of this part that is
not required by law, whenever it is determined that undue hardship will
result from applying the requirement, or where application of the
requirement would adversely affect the purposes of the Emergency Shelter
Grants Program under this part.
24 CFR 576.5 Subpart B -- Eligible Activities
24 CFR 576.21 Eligible activities.
(a) Eligible activities. Emergency shelter grant amounts may be used
for one or more of the following activities relating to emergency
shelter for the homeless.
(1) Renovation, major rehabilitation, or conversion of buildings for
use as emergency shelters for the homeless.
(2) Provision of essential services to the homeless.
(3) Payment of maintenance, operation (including administration but
excluding staffing costs, rent, repair, security, fuels and equipment),
insurance, utilities, and furnishings.
(4)(i) Developing and implementing homeless prevention activities.
(ii) If grant funds under paragraph (a)(4)(i) of this section are to
be used to assist families that have received eviction notices or
notices of termination of utility services, the following conditions
must be met:
(A) The inability of the family to make the required payments must be
the result of a sudden reduction in income;
(B) The assistance must be necessary to avoid eviction of the family
or termination of services to the family;
(C) There must be a reasonable prospect that the family will be able
to resume payments within a reasonable period of time; and
(D) The assistance must not supplant funding for preexisting homeless
prevention activities from any other sources.
(b) Limitations on provisions of essential services -- (1) Units of
general local government. Grant amounts provided by HUD to units of
general local government may be used to provide an essential service
under paragraph (a)(2) of this section, only if the service is a new
service, or is a quantifiable increase in the level of a service above
that which the unit of general local government provided with local
funds during the 12 calendar months immediately before it received
initial grant amounts; and not more than 20 percent of the total of
each grant amount provided to a unit of general local government is used
for these services (whether or not the unit of local government provides
some or all of these grants funds to a nonprofit recipient).
(2) States. Grant amounts provided by a State to State recipients
may be used to provide an essential service under paragraph (a)(2) of
this section, only if the service is a new service, or is a quantifiable
increase in the level of a service above that which the unit of general
local government (or, in the case of a nonprofit organization, the unit
of general local government in which the proposed activities are to be
located) provided with local funds during the 12 months immediately
before the State recipient received initial grant amounts; and not more
than 20 percent of the aggregate amount of each ESG grant to a State is
used for these services.
(3) In calculating the 20 percent limitation under paragraph (b) (1)
or (2) of this section, homeless prevention activities under paragraph
(a)(4) of this section are to be treated as essential services.
(c) Waiver of limit on essential services. (1) HUD may waive the 20
percent limitation on essential services in paragraphs (b) (1) and (2)
of this section if the State or unit of local government receiving the
assistance demonstrates that program activities other than essential
services and homeless prevention (i.e., maintenance and operating costs,
renovation, rehabilitation and conversion activities) are already being
carried out in the locality with other resources.
(2) Waiver requests from State recipients under this paragraph (c)
must first be sent to the State. The State must promptly send the
requests to HUD, together with any comments or recommendations the State
may have on them. State waiver requests should be forwarded directly to
HUD.
(Approved by the Office of Management and Budget under OMB Control
Number 2506-0089)
(54 FR 46799, Nov. 7, 1989, as amended at 54 FR 52397, Dec. 21, 1989)
24 CFR 576.22 Limitations on the use of assistance.
(a) Ineligible activities. Emergency shelter grant amounts may not
be used for activities other than those authorized under 576.21 (a),
(b), and (c).
(b) Primarily religious organizations -- (1) Provision of assistance.
(i) Assistance may be provided under this part to a grantee or
recipient that is a primarily religious organization if the primarily
religious organization agrees to provide all eligible activities under
this program in a manner that is free from religious influences and in
accordance with the following principles:
(A) It will not discriminate against any employee or applicant for
employment on the basis of religion and will not limit employment or
give preference in employment to persons on the basis of religion;
(B) It will not discriminate against any person applying for shelter
or any of the eligible activities under this part on the basis of
religion and will not limit such housing or other eligible activities or
give preference to persons on the basis of religion; and
(C) It will provide no religious instruction or counseling, conduct
no religious worship or services, engage in no religious proselytizing,
and exert no other religious influence in the provision of shelter and
other eligible activities under this part; and
(ii) HUD will provide assistance to a recipient that is a primarily
religious organization if the assistance will not be used by the
organization to acquire a structure (in the case of homeless prevention
activities under 576.21(a)(4)) or to rehabilitate a structure owned by
the organization, except as described in paragraph (b)(2) of this
section.
(2) Rehabilitation or conversion of emergency shelters in structures
owned by primarily religious organizations. Emergency shelter grant
amounts may be used to rehabilitate or convert to an emergency shelter a
structure that is owned by a primarily religious organization, only if:
(i) The structure (or portion thereof) that is to be renovated,
rehabilitated or converted with HUD assistance has been leased to an
existing or newly established wholly secular organization (which may be
established by the religious organization under the provisions of
paragraph (b)(3) of this section);
(ii) The HUD assistance is provided to the secular organization (and
not the religious organization) to make the improvements;
(iii) The leased structure will be used exclusively for secular
purposes available to all persons regardless of religion;
(iv) The lease payments paid to the primarily religious organization
do not exceed the fair market rent for the structure before the
renovation, rehabilitation or conversion was done;
(v) The portion of the cost of any improvements that benefit any
unleased portion of the structure will be allocated to, and paid for by,
the religious organization; and
(vi) The primarily religious organization agrees that if the
recipient does not retain the use of the leased premises for wholly
secular purposes for the useful life of the improvements, the primarily
religious organization will pay an amount equal to the residual value of
the improvements to the original grantee from which the amounts used to
renovate, rehabilitate or convert the building were derived; e.g., if
the amounts used under this paragraph initially were made available to a
State or to a unit of general local government as a formula allocation
or reallocation, the amount that the primarily religious organization
provides to the recipient must be remitted to the State or unit of
general local government, as appropriate. While the original grantee is
expected to use this amount to alleviate homelessness in the original
grantee's jurisdiction, there is no requirement that funds received
after the close of the grant period be used in accordance with the
requirements of this part. If, however, a private nonprofit
organization is the lessee as well as the grantee, the organization must
remit the amount referred to above to HUD.
(3) Assistance to a wholly secular private nonprofit organization
established by a primarily religious organization.
(i) A primarily religious organization may establish a wholly secular
private nonprofit organization to serve as a recipient. The secular
organization may be eligible to receive all forms of assistance
available under this part.
(A) The secular organization must agree to provide shelter and other
eligible activities under this part in a manner that is free from
religious influences and in accordance with the principles set forth in
paragraph (b)(1)(i) of this section.
(B) The secular organization may enter into a contract with the
religious organization to provide essential services or undertake
homeless prevention activities for the project. In such a case, the
religious organization must agree in the contract to carry out its
contractual responsibilities in a manner free from religious influences
and in accordance with the principles set forth in paragraph (b)(1)(i)
of this section.
(C) The rehabilitation, conversion or renovation of emergency
shelters are subject to the requirements of paragraph (b)(2) of this
section.
(ii) HUD will not require the religious organization to establish the
secular organization before the selection of its application. In such a
case, the religious organization may apply on behalf of the secular
organization. The application will be reviewed on the basis of the
religious organization's financial responsibility and capacity, and its
commitment to provide appropriate resources to the secular organization
after formation. Since the secular organization will not be in
existence at the time of the application, it will be required to
demonstrate that it meets the definition of private nonprofit
organization contained in 576.3. The obligation of funds will be
conditioned upon compliance with these requirements.
24 CFR 576.23 Who may carry out eligible activities.
(a) Grantees and State recipients. All grantees (except States) and
State recipients may carry out activities with emergency shelter grant
amounts. All of a State's formula allocation must be made available to
the following entities:
(1) Units of general local government in the State, which may include
formula cities and counties, whether or not such cities and counties
receive grant amounts directly from HUD; or
(2) Private nonprofit organizations, if the unit of local government
in which the proposed activities are to be located certifies that it
approves each project.
(b) Nonprofit recipients. Units of general local government -- both
grantees and State recipients -- may distribute all or part of their
grant amounts to nonprofit recipients to be used for emergency shelter
grant activities. In addition, States may distribute all or a portion
of their grant amounts to nonprofit recipients if the unit of general
local government in which the proposed activities are to be located
certifies that it approves the project.
24 CFR 576.23 Subpart C -- Comprehensive Housing Affordability Strategy
24 CFR 576.31 Comprehensive housing affordability strategy.
(a) Certifications. Assistance may not be made available under this
part unless the applicant has submitted a certification that the
proposed activities are consistent with a Comprehensive Housing
Affordability Strategy (CHAS) and, in the case of a jurisdiction, it has
submitted a certification that it is following a HUD-approved CHAS.
(1) Jurisdictions. Grants for which these certifications must be
submitted, by the public official responsible for submitting the CHAS,
are the following:
(i) For States, allocations under 576.43 and reallocations under
576.61, 576.63, and 576.67;
(ii) For formula cities and counties, allocations under 576.43 and
reallocations under 576.63 and 576.67; and
(iii) For Territories, allocations under 576.45 and reallocations
under 576.63 and 576.67.
(2) Nonprofit organizations. If the proposed activities are to serve
a formula city or county or Territory, the city, county, or Territory
must certify that the activities are consistent with its CHAS; if the
proposed activities are not to serve such city or county, the lowest
level of government that has a CHAS in which the project is located must
certify compliance with its CHAS.
(b) Reallocations. (1) Reallocation amounts may be made available
under 576.67 to units of general local government that are not formula
cities and counties only if the unit of general local government has a
CHAS.
(2) Sections 576.61 and 576.63 govern the reallocation of grant
amounts initially allocated to a State or a formula city or county under
576.43, or to a Territory under 576.45, if the jurisdiction does not
obtain approval of its housing strategy within the time periods
specified in those sections.
(56 FR 56128, Oct. 31, 1991)
24 CFR 576.31 Subpart D -- Allocations
24 CFR 576.41 Overall allocation of grant amounts.
(a) Territories. HUD will set aside for allocation to the
Territories under 576.45 an amount equal to 0.2 percent of the total
amount of each appropriation under this part in any fiscal year.
(b) States, metropolitan cities and urban counties. HUD will
allocate the amounts that remain after the set-aside to Territories
under paragraph (a) of this section to States, metropolitan cities, and
urban counties under 576.43.
24 CFR 576.43 Allocation of grant amounts to States, metropolitan
cities, and urban counties.
(a) Calculation of allocations. In determining the amount of the
allocation for each State, metropolitan city, and urban county, HUD will
provide that the percentage of the total amount available for allocation
to any State, metropolitan city, or urban county is equal to the
percentage of the total amount available for section 106 of the Housing
and Community Development Act of 1974 for the prior fiscal year that was
allocated to such State, metropolitan city, or urban county.
(b) Reallocation to State. Except as otherwise provided by law, if
an allocation to a metropolitan city or urban county would be less than
.05 percent of each appropriation under this part in any fiscal year,
the amount is added to the allocation for the State in which the city or
county is located.
(c) Notification of allocation amount. HUD will notify in writing
each State, metropolitan city, and urban county that is eligible to
receive an allocation under this section, of the amount of its
allocation.
24 CFR 576.45 Allocation of grant amounts to Territories.
(a) Each Territory. HUD will allocate amounts set aside for
Territories under 576.41 to each Territory, based upon its
proportionate share of the total population of all Territories.
(b) Notification of allocation amount. HUD will notify each
Territory of the amount of its allocation under this section.
24 CFR 576.45 Subpart E -- Award and Use of Grant Amounts
24 CFR 576.51 Application requirements.
(a) Application deadlines. To receive grant amounts, a State or
formula city or county that elects to receive an emergency shelter grant
on the basis of an allocation under 576.43, and a Territory that elects
to receive an emergency shelter grant on the basis of an allocation
under 576.45, must submit an application that meets the requirements of
paragraph (b) of this section. The application must be submitted to the
responsible HUD field office, no later than 45 days after the date of
the notification to the State, city or county, or the Territory, of its
grant allocation, as provided by 576.43(c) or 576.45(b), respectively.
(b) Application. The application must contain:
(1) A Standard Form 424. Item (11) of Standard Form 424 must contain
a description of the proposed use of the emergency shelter grant
amounts. In the case of a formula city or county, or a Territory, the
proposed use must be identified for each of the four categories of
eligible activities under 576.21 (a)(1), (a)(2), (a)(3), and (a)(4).
In addition, the formula city or county, or Territory must include a
description of the process and criteria for awarding its grant funds to
units of general local government and nonprofit organizations. In the
case of a State, the proposed use must identify:
(i) How the State intends to implement the requirement in 576.23(a)
that the grant be made available to units of general local government
and/or private nonprofit organizations in the State, or
(ii) The specific units of general local government in the State that
will receive the grant, or
(iii) The nonprofit organizations that will receive grant funds
directly from the State, and the local jurisdictions in which the
proposed activities will be located.
In addition, the State must include a description of the process and
criteria for awarding its grant funds to State recipients.
(2) The following certifications and assurances:
(i) A certification by the public official responsible for submitting
the Comprehensive Housing Affordability Strategy for the State, formula
city or county, or Territory that is applying for ESG funding for the
proposed activities that the activities are consistent with the housing
strategy. In the case of a formula city or county, there must be an
additional certification that before any of the grant funds are used for
an activity conducted outside the applicant's jurisdiction, the
applicant will secure and provide to HUD a certification that the
activity is consistent with the housing strategy submitted by the
following jurisdiction, as applicable:
(A) If the activity is conducted within the boundaries of a city or
urban county having its own housing strategy, then a certification from
the appropriate official of that jurisdiction; or
(B) If the activity is not conducted within a unit of local
government having its own housing strategy, then a certification from
the appropriate State official.
(ii) A certification that the State, formula city or county, or
Territory will provide the matching supplemental funds required by
576.71. The certification must describe the sources and amounts of the
supplemental funds. A State's matching supplemental funds certification
is to be submitted with its interim performance report, as provided by
576.85.
(iii) A certification that the State will require any nonprofit
organization that applies for funding to submit a certification of
approval of the proposed project(s) from the unit of general local
government in which the proposed projects are to be located.
(iv) A certification that the formula city or county, or Territory,
will comply, and that the State will ensure that its State recipients
comply, with:
(A) The requirements of 576.73 concerning the continued use of
buildings, for which emergency shelter grant amounts are used, as
emergency shelter for the homeless;
(B) The building standards requirements of 576.75; and
(C) The requirements of 576.77 concerning assistance to the
homeless.
(v) If grant amounts are proposed to be used to provide emergency
shelter for the homeless in hotels or motels, or other commercial
facilities providing transient housing, a certification from the State,
metropolitan city, or urban county that:
(A) Leases negotiated between the grantee, or State recipient or
nonprofit recipient (as appropriate), and providers of such housing
provide (or will provide) that the living space will be rented at
substantially less than the daily room rate otherwise charged by the
facility; and
(B) The grantee, or State recipient (as appropriate), has considered
using other facilities as emergency shelter, and has determined that use
of the facilities referred to in this paragraph (b)(2)(v) provides the
most cost-effective means of providing emergency shelter for the
homeless in its jurisdiction. In the case of grant funds provided to
nonprofit recipients, the cost-effectiveness determination under this
paragraph must be completed by the formula city or county, Territory or
State in which the proposed activities are to be located.
(vi) A certification that the formula city or county, or Territory,
will conduct its emergency shelter grant activities under this part, and
that the State or unit of general local government (as appropriate) will
ensure that State recipients or nonprofit recipients conduct their
activities under this part, in conformity with the nondiscrimination and
equal opportunity requirements contained in 576.79(a) and the other
requirements of this part and of other applicable Federal law.
(vii) A certification by the State, formula city or county, or
Territory that the submission of the application required by this
paragraph (b) is authorized under applicable provisions of law, and that
the grantee possesses the legal authority to carry out emergency shelter
grant activities in accordance with the provisions of this part.
(viii) A certification by the State, formula city or county, or
Territory that any ESG funds allocated under 576.21(a)(4)(ii) (homeless
prevention for families that have received eviction notices or notices
of termination of utility services) will not supplant funding for
preexisting homeless prevention activities from any other sources.
(ix) Where the grantee is a State, Territory, formula city or county,
or other governmental entity with general purpose powers, an assurance
by the grantee that it will assume all the environmental review
responsibilities that would otherwise be performed by HUD as the
responsible Federal official under NEPA and related authorities citied
in 24 CFR 58.5, including acceptance of Federal court jurisdiction,
under 576.52.
(x) An assurance that the State, Territory, formula city or county
will comply with the requirements of the Uniform Relocation Assistance
and Real Property Acquisition and Real Property Acquisition Policies Act
of 1970 (URA) (42 U.S.C. 4601-4655) at 576.80.
(xi) An assurance that the grantee and its recipients will take all
reasonable steps to minimize the displacement of persons (families,
individuals, businesses, nonprofit oganizations, and farms) as a result
of a project assisted under this Part, in accordance with the URA.
(xii) A certification that the grantee and its recipients will
provide a drug free workplace in accordance with the Drug Free Workplace
Act of 1988 (see 24 CFR part 24, subpart F).
(c) Environmental review. The environmental effects of each
application must be assessed in accordance with the provisions of the
National Environmental Policy Act of 1969 (42 U.S.C. 4321 (NEPA)) and
the related authorities listed in HUD's implementing regulations at 24
CFR parts 50 or 58, as appropriate. See 576.52 for a full discussion
of the environmental requirements for applications for assistance.
(d) Substantial change in proposed use of funds. (1) If at any time
after submission of an application under this section, there is a
substantial change in the proposed use of funds, there must be submitted
to the responsible HUD field office a description of the revised
proposed use of funds and a certification (as required by paragraph
(b)(2)(i) of this section) that the proposed use of funds is consistent
with the applicable Comprehensive Housing Affordability Strategy. The
revised proposed use of funds and certification of consistency will be
approved as expeditiously as possible, and will be deemed approved 30
days after HUD receives them, unless notification is provided by HUD
within that period that they are not approved, and the basis for the
denial of approval. ESG funds may not be obligated by a grantee or by a
nonprofit recipient for the revised proposed use of funds until:
(i) HUD accepts the revised proposed use and certification, or 30
days have passed from the date of HUD receipt; and
(ii) Environmental review of the revised proposed use of funds has
been completed in accordance with 576.52.
(2) In the case of a State, a State may not obligate funds until the
revised proposed use of grant funds has been approved by HUD; and
(3) Submission of the certification and the description of the
revised use of funds under this paragraph (d) may require amendment of
the applicable Comprehensive Housing Affordability Strategy.
Requirements for Housing Strategy amendments may be found in the
notification that HUD provides for housing strategies. (See 24 CFR part
91).
(Approved by the Office of Management and Budget under OMB Control
Number 2506-0089)
(54 FR 46799, Nov. 7, 1989, as amended at 54 FR 52397, Dec. 21, 1989;
56 FR 56128, Oct. 31, 1991; 57 FR 11430, Apr. 3, 1992)
24 CFR 576.52 Environmental review.
(a) Generally. (1) The environmental effects of each application
must be assessed in accordance with the provisions of the National
Environmental Policy Act of 1969 (NEPA) and the related authorities
listed in HUD's implementing regulations at 24 CFR parts 50 and 58.
(2) Environmental regulations provide for certain categorical
exclusions under NEPA and under part 58 set conditions under which
excluded activities may be determined exempt from all environmental
review requirements. In cases where proposed assistance and matching
contributions solely involve operating costs for facilities or the
provision of essential services, and the structures and sites involved
in the project meet the program requirements of this part, these
activities are categorically excluded by regulation and may be
determined fully exempt from environmental review.
(b) Responsibility for review. (1) HUD will perform the
environmental review, in accordance with part 50, for applications
submitted by private nonprofit organizations for reallocated funds, and
any governmental entities with general purpose powers found not to have
the legal capacity to carry out this responsibility.
(2) Applicants that are States, Territories, formula cities and
counties, or other governmental entities with general purpose powers,
and that are deemed to have the legal capacity to do so, must assume
responsibility for environmental review, decisionmaking, and action for
each application for assistance in accordance with part 58.
Specifically, States, Territories or units of general local government
must complete the environmental review for each application for
assistance, as follows:
(A) In the case of ESG grants to States that are distributed to units
of general local government, the unit of general local government must
assume the environmental responsibilities specified in section 104(g)(1)
of the Housing and Community Development Act of 1974, and the State will
assume HUD's functions with regard to the release of funds, as provided
by section 104(g)(4) of that Act.
(B) In the case of ESG grants to States that are distributed to
nonprofit organizations, the State will assume the environmental
responsibilities specified in section 104(g)(1) of that Act and HUD will
perform the release of funds functions of section 104(g)(2).
(C) In the case of ESG grants to a unit of general local government
or Territory, whether used directly by the grantee or distributed to
nonprofit organizations, the unit of general local government or
Territory will assume the environmental responsibilities specified in
section 104(g)(1) of that Act and HUD will perform the release of funds
functions of section 104(g)(2).
(3) The assumption of legal responsibility by an applicant under
paragraph (b)(2) of this section does not preclude the applicant's
arranging for the conduct of technical reviews by cooperating local
governments having an established technical capability (e.g., by a
metropolitan city in which the project is proposed to be located). The
applicant under such arrangement must independently evaluate information
submitted and assume responsibility for its accuracy, scope and content;
meet legal requirements attached to the Release of Funds by HUD;
determine the completeness of the review; meet any requirements for
consultation, as applicable, under 24 CFR 58.5 authorities; and assure
the completion of any mitigation measures resulting from technical
review or from State consultations. The arrangements described in this
paragraph are in addition to the ability of an applicant to adopt
relevant and adequate prior reviews conducted by HUD or other
governmental entity for a related program or purpose, if the reviews
meet the particular requirements of the Federal environmental law or
authority under which they would be adopted, and if certain conditions
are met (e.g., a determination that no environmentally significant
changes have occurred since the review was completed.)
(c) Environmental review by HUD. With regard to the environmental
effects of applications for which HUD performs the review, HUD will
undertake its review in accordance with the provisions of NEPA and the
related authorities listed in 24 CFR 50.4. Any application subject to
environmental review by HUD that requires an Environmental Impact
Statement (EIS) (generally, an application that HUD determines would
have a significant impact on the human environment, in accordance with
the environmental assessment procedures at 24 CFR part 50, subpart E)
will not be eligible for assistance under this part.
(d) Environmental review by applicants. (1) An applicant that is
required, under paragraph (b)(2) of this section, to assume
environmental review responsibility must include in its application an
assurance that the applicant will assume all the environmental review
responsibilities that would otherwise be performed by HUD as the
responsible Federal official under NEPA and related authorities listed
in 24 CFR 58.5, including acceptance of jurisdiction of the Federal
courts.
(2) Applicants required to assume environmental review responsibility
need not complete the review until a reasonable time after grant award.
In such cases, the award is subject to completion of the environmental
responsibilities set out in 24 CFR part 58 within a reasonable time
after notification of the award. (This provision does not preclude the
applicant from enclosing its environmental certification and Request for
Release of Funds with its application.)
(i) Upon completion of the requirements in 24 CFR part 58, applicants
must certify the completion and submit a Request for Release of Funds.
This submission is not required in cases in which the applicant
determines and documents, in accordance with 24 CFR 58.34, that its
program components are exempt.
(ii) HUD will not release funds for an emergency shelter grant
activity if the grantee, recipient, or any other party commits emergency
shelter grant funds (i.e., incurs any costs or expenditures to be paid
or reimbursed with such funds) before the grantee submits, and HUD
approves, any required Request for Release of Funds.
(3) A general applicant that believes that it does not have the legal
capacity to carry out the responsibilities required by 24 CFR part 58
should contact the appropriate HUD field office for further
instructions. Determinations of legal capacity will be made on a
case-by-case basis.
(e) Location of projects in floodplains. Activities that are to be
assisted with emergency shelter grant funds and that are located in any
100-year floodplain, as designated by maps prepared by the Federal
Emergency Management Agency (FEMA), are subject to the floodplain review
requirements of Executive Order 11988, Floodplain Management (May 24,
1977). Executive Order 11988 review, as referenced under parts 50 and
58, is to be performed during the environmental review.
24 CFR 576.53 Review and approval of applications.
(a) Time for approval. An application from a State, formula city or
county, or Territory will be processed and approved as expeditiously as
possible, and will be deemed approved 30 days after HUD receives it,
unless within that period HUD notifies the applicant that the
application is not approved.
(b) Review of application. HUD will approve an application, unless
it determines that the application:
(1) Was not received or postmarked within the time period specified
in 576.51(a);
(2) Does not contain the items required by 576.51(b); or
(3) Does not otherwise comply with the requirements of this part or
of other Federal law.
(c) Conditional grant. HUD may make a conditional grant restricting
the obligation and use of emergency shelter grant amounts. Conditional
grants may be made where there is substantial evidence that there has
been, or there will be, a failure to meet the requirements of this part.
In such a case, the reason for the conditional grant, the action
necessary to remove the condition, and the deadline for taking those
actions will be specified. Failure to satisfy the condition may result
in imposition of a sanction under 576.89, or in any other action
authorized under applicable Federal law.
(d) Grant agreement. The grant will be made by means of a grant
agreement executed by HUD and the grantee. HUD will not disburse funds
before the grant agreement is fully executed.
(e) Reallocation amounts. Any emergency shelter grant amounts that
are returned to HUD because of:
(1) A failure to meet the application deadline under 576.51(a); or
(2) An application disapproval under paragraph (b) of this section
will be reallocated under 576.67.
24 CFR 576.55 Deadlines for using grant amounts.
(a)(1) States. Each State must make available to its State
recipients all emergency shelter grant amounts that it was allocated
under 576.43, within 65 days of the date of the grant award by HUD. A
State may set aside up to 10 percent of its grant funds for homeless
prevention activities under 576.21(a)(4). These set-aside funds must be
made available to State recipients within 180 days of the grant award by
HUD.
(2) State recipients -- (i) Obligation of grant funds. Each State
recipient must have its grant amounts obligated (as that term is defined
at 576.3) within 180 days of the date on which the State made the grant
amounts available to the State recipient. In the case of grants for
homeless prevention activities under 576.21(a)(4), State recipients are
required to obligate grant amounts within 30 days of the date on which
the State made the grant amounts available to the State recipient.
(ii) Expenditure of grant funds. Each State recipient must spend all
of its grant amounts within 24 months of the date on which the State
made the grant amounts available to the State recipient. In the case of
grants for homeless prevention activities, State recipients must spend
such sums within 180 days of the date on which the State made the grant
amounts available to the recipient.
(b) Formula cities and counties, and Territories) -- (1) Obligations
of funds. Each formula city and county, and each Territory, must have
all grant amounts that it was allocated under 576.43 or 576.45
obligated within 180 days of the date of the grant award by HUD.
(2) Expenditure of grant funds. Each formula city and county, and
each Territory, must spend all of the grant amounts it was allocated
under 576.43 or 576.45 within 24 months of the date of the grant award
by HUD.
(c) Reallocation amounts. (1) Any emergency shelter grant amounts
that are not made available or obligated within the time periods
specified in paragraphs (a)(1) (State distributions to State recipients)
or (b) (formula city or county or Territory allocation) of this section,
respectively, will be reallocated under 576.67.
(2) The State must recapture any grant amounts that a State recipient
does not obligate and spend within the time period specified in
paragraph (a)(2) (State recipients) of this section. The State, at its
option, must make these grant amounts and other amounts returned to the
State (except amounts referred to in 576.22(b)(2)(vi)) available as
soon as practicable to other units of general local government for use
within the time period specified in paragraph (a)(2) of this section, or
to HUD for reallocation under 576.67.
24 CFR 576.55 Subpart F -- Reallocations
24 CFR 576.61 Reallocation of grant amounts; lack of approved
Comprehensive Housing Affordability Strategy; formula cities and
counties.
(a) Applicability. This section applies where a formula city or
county fails to obtain approval of its Comprehensive Housing
Affordability Strategy within 90 days of the date upon which amounts
under this part first become available for allocation under 576.43 in
any fiscal year.
(b) Grantee. HUD will make available the amounts that a city or
county referred to in paragraph (a) of this section would have received
to the State in which the city or county is located.
(c) Notification of fund availability. The responsible HUD field
office will promptly notify the State of the availability of any
reallocation amounts under this section.
(d) Eligibility for reallocation amounts. In order to receive
reallocation amounts under this section, the State must:
(1) Execute a grant agreement with HUD to receive grant amounts
allocated to the State under 576.43 for the fiscal year for which the
amounts to be reallocated were initially made available.
(2) If necessary, submit an amendment to its application for that
fiscal year for the reallocation amounts it wishes to receive. The
amendment must (to the extent necessary) meet the requirements of
576.51(b), and must be submitted to the responsible HUD field office no
later than 30 days after notification is given to the State under
paragraph (c) of this section.
(e) Review and approval. (1) Section 576.53 (except paragraph (e))
governs the review and approval of application amendments under this
section.
(2) HUD will endeavor to make grant awards within 30 days of the
application amendment deadline, or as soon thereafter as practicable.
(3) Program activities represented by proposed amendments are subject
to environmental review under 576.52 in the same manner as original
proposals.
(f) Deadlines for using reallocated grant amounts. Section 576.55
governs the use of amounts reallocated under this section.
(g) Amounts that cannot be reallocated. Any grant amounts that
cannot be reallocated to a State under this section will be reallocated
to formula cities and counties located in the State and then to other
States and Territories, as provided by 576.63. Amounts that are
reallocated under this section, but that are returned or unused, will be
reallocated under 576.67.
(54 FR 46799, Nov. 7, 1989, as amended at 56 FR 56128, Oct. 31, 1991)
24 CFR 576.63 Reallocation of grant amounts; lack of approved
Comprehensive Housing Affordability Strategy; States and Territories.
(a) Applicability. This section applies where:
(1) A State or Territory fails to obtain approval of its
Comprehensive Housing Affordability Strategy within 90 days of the date
upon which amounts under this part first become available for allocation
in any fiscal year; or
(2) Grant amounts cannot be reallocated to a State under 576.61.
(b) Grantees. HUD will reallocate the amounts that a State referred
to in paragraph (a) of this section would have received, first, to
formula cities and counties located in the State that demonstrate
extraordinary need or large numbers of homeless individuals and if grant
amounts remain, then to other States and Territories that meet this
criterion. HUD will make available the amounts that a Territory under
paragraph (a)(1) of this section would have received to other
Territories that demonstrate extraordinary need or large numbers of
homeless individuals.
(c) Notification of fund availability. HUD will make reallocations
to States under this section by direct notification or Federal Register
Notice that will set forth the terms and conditions under which grant
amounts under this section are to be reallocated and grant awards made.
In the case of reallocations to Territories, the responsible HUD field
office will promptly notify each Territory of any reallocation amounts
under this section, and indicate the terms and conditions under which
reallocation amounts are to be made available and grant awards made.
(d) Eligibility for reallocation amounts. In order to receive
reallocation amounts under this section, the formula city or county, or
State or Territory, must:
(1) Submit an amendment to its application for that fiscal year for
the reallocation amounts it wishes to receive. The amendment must meet:
(i) To the extent necessary, the requirements of 576.51(b) and
(ii) Such additional requirements as HUD may specify in the
notification under paragraph (c) of this section.
Amendments are subject to environmental review under 576.52. The
amendment must be submitted to the responsible HUD field office no later
than 30 days after such notification is given.
(2) Execute a grant agreement with HUD to receive grant amounts
allocated under 576.43 or 576.45 (as appropriate) for the fiscal year
for which the amounts to be reallocated were initially made available.
(e) Review and approval. (1) Section 576.53 (except paragraph (e)),
and such additional requirements as HUD may specify in the notification
under paragraph (c) of this section, govern the review and approval of
application amendments under this section. HUD will rank the amendments
and make grant awards under this section on the basis of the following
factors:
(i) The nature and extent of the unmet homeless need within the
jurisdiction in which the grant amounts will be used;
(ii) The extent to which the proposed activities address this need;
and
(iii) The ability of the grantee to carry out the proposed activities
promptly.
(2) HUD will endeavor to make grant awards within 30 days of the
application amendment deadline, or as soon thereafter as practicable.
(f) Grant amounts. HUD may make a grant award for less than the
amount applied for or for fewer than all of the activities identified in
the application amendment, based on competing demand for grant amounts
and the extent to which the respective activities address the needs of
the homeless.
(g) Deadlines for using reallocated grant amounts. Section 576.55
governs the use of amounts reallocated under this section.
(h) Amounts that are not reallocated. Any grant amounts that are not
reallocated under this section, or that are reallocated, but are unused,
will be reallocated under 576.67(d). Any amounts that are reallocated,
but are returned, will be reallocated under 576.67(c).
(54 FR 46799, Nov. 7, 1989, as amended at 56 FR 56129, Oct. 31, 1991)
24 CFR 576.67 Reallocation of grant amounts; returned or unused
amounts.
(a) General. From time to time, HUD will reallocate emergency
shelter grant amounts that are returned or unused, as those terms are
defined in paragraph (f) of this section. HUD will make reallocations
under this section by direct notification or Federal Register Notice
that will set forth the terms and conditions under which the grant
amounts are to be reallocated and grant awards are to be made.
(b) FEMA boards. HUD may use State and local boards established
under the Emergency Food and Shelter Program administered by the Federal
Emergency Management Agency, as a resource to identify potential
applicants for reallocated grant amounts.
(c) Reallocation -- returned grant amounts. (1) States and formula
cities and counties. HUD will endeavor to reallocate returned emergency
shelter grant amounts that were initially allocated under 576.43 to a
State or a formula city or county, for use within the same jurisdiction.
Reallocation of these grant amounts is subject to the following
requirements:
(i) Returned grant amounts that were allocated to a State will be
made available (A) first, to units of general local government within
the State and (B) if grant amounts remain, then to other States.
(ii) Returned grant amounts that were allocated to a formula city or
county will be made available:
(A) First, for use in the city or county, to units of general local
government that are authorized under applicable law to carry out
activities serving the homeless in the jurisdiction;
(B) If grant amounts remain, then to the State in which the city or
county is located;
(C) If grant amounts remain, to units of general local government in
the State; and
(D) If grant amounts remain, to other States.
(2) Territories. Returned grant amounts that were allocated to a
Territory will be made available first, to other Territories and if
grant amounts remain, then to States.
(3) Further reallocation: States, formula cities and counties, and
Territories. Any grant amounts that:
(i) Remain after applying the preceding provisions of this paragraph
(c), or
(ii) Are returned to HUD after reallocation under such provisions,
will be further reallocated under paragraph (d) of this section.
(4) Other grantees. Returned grant amounts that were initially made
available to private nonprofit organizations, units of general local
government and States under paragraph (d) of this section will be made
available under that paragraph.
(5) The responsible HUD field office will announce the availability
of returned grant amounts. The announcement will establish deadlines
for submitting applications, and will set out other terms and conditions
relating to grant awards, consistent with this part. The announcement
will specify the application documents to be submitted, which include:
(i) A Standard Form 424;
(ii) Certifications required at 576.51(b)(2)(v); and
(iii) Other certifications and assurances similar to those required
from a formula city or county, or a Territory, under 576.51(b)(2).
(6) The responsible HUD field office may establish maximum grant
amounts, considering the grant amounts available, and will rank the
applications using the criteria in paragraph (e) of this section.
(7) HUD may make a grant award for less than the amount applied for
or for fewer than all of the activities identified in the application,
based on competing demands for grant amounts and the extent to which the
respective activities address the needs of the homeless.
(8) HUD will endeavor to make grant awards within 30 days of the
application deadline or as soon thereafter as practicable.
(9) Grants awarded under this section are subject to environmental
review under 576.52.
(d) Reallocation -- unused grant amounts. Unused grant amounts will
be available, in HUD's discretion, for reallocation from time to time
to:
(1) Units of general local government and States demonstrating
extraordinary need or large numbers of homeless individuals; and
(2) Private nonprofit organizations providing assistance to the
homeless.
(e) Selection criteria. HUD will award grants under paragraphs (c)
and (d) of this section based on consideration of the following
criteria:
(1) The nature and extent of the unmet homeless need within the
jurisdiction in which the grant amounts will be used;
(2) The extent to which the proposed activities address this need;
and
(3) The ability of the grantee to carry out the proposed activities
promptly.
(f) When grant amounts are returned or unused. (1) For purposes of
this section, emergency shelter grant amounts are considered
''returned'' when they become available for reallocation because a
grantee does not execute a grant agreement with HUD for them, e.g., when
a grantee for which an allocation is made under 576.43 or 576.45 fails
to meet the application deadlines under 576.51(a), or has its
application disapproved under 576.53(b), or approved with a reduced
grant amount in accordance with 576.89.
(2) For purposes of this section, emergency shelter grant amounts are
considered ''unused'' (i.e. Federal deobligation) when they become
available for reallocation by HUD after a grantee has executed a grant
agreement with HUD for them: e.g., where:
(i) A State fails to make its grant amounts available to State
recipients within the time period specified in 576.55(a)(1);
(ii) A formula city or county fails to obligate grant amounts within
the time specified in 576.55(b);
(iii) A State recaptures grant amounts from a State recipient and
makes them available to HUD as provided in 576.55(c)(2);
(iv) Grant amounts become available as a result of imposition of a
sanction (other than a reduction of grant amounts) under 576.89 or the
close-out of a grant; or
(v) A grantee referred to in paragraph (b) of this section fails to
obligate grant amounts within the time period specified in its grant
agreement.
Amounts that remain after reallocation under 576.63 or 576.67(c)
are considered unused for purposes of this section.
24 CFR 576.67 Subpart G -- Program Requirements
24 CFR 576.71 Matching funds.
(a) General. Each grantee must match the funding provided by HUD
under this part with an equal amount of funds from sources other than
under this part. These funds must be provided after the date of the
grant award to the grantee. Funds used to match a previous ESG grant
may not be used to match a subsequent grant award under this part. A
grantee may comply with this requirement by providing the supplemental
funds itself, or through supplemental funds or voluntary efforts
provided by any State recipient or nonprofit recipient (as appropriate).
(b) Calculating the matching amount. In calculating the amount of
matching funds, there may be included the value of any donated material
or building; the value of any lease on a building; any salary paid to
staff of the grantee or to any State recipient or nonprofit recipient
(as appropriate) in carrying out the emergency shelter program; and the
time and services contributed by volunteers to carry out the emergency
shelter program, determined at the rate of $5 per hour. For purposes of
this paragraph (b), the grantee will determine the value of any donated
material or building, or any lease, using any method reasonably
calculated to establish a fair market value.
24 CFR 576.73 Use as an emergency shelter.
(a)(1) General. Any building for which emergency shelter grant
amounts are used for one or more eligible activities described in
576.21(a)(1) must be maintained as a shelter for the homeless for not
less than a three-year period or, if the grant amounts are used for
major rehabilitation or conversion of the building, for not less than a
10-year period.
(2)(i) Any building for which emergency shelter grant amounts are
used for eligible activities described in 576.21 (a)(2) or (a)(3) must
be maintained as a shelter for the homeless for the period during which
such assistance is provided. A substitute site or shelter may be used
during this period, so long as the same general population is served.
(ii) For purposes of this section, the term ''same general
population'' means either the same types of homeless persons originally
served with ESG assistance (i.e. battered spouses, runaway children,
families, or mentally ill individuals) or persons in the same geographic
area.
(3) Using emergency shelter grant amounts for homeless prevention
activities under 576.21(a)(4) does not trigger any period of use
requirements.
(b) Calculating the applicable period. The three- and 10-year
periods referred to in paragraph (a) of this section begin to run:
(1) In the case of a building that was not operated as an emergency
shelter for the homeless before receipt of grant amounts under this
part, on the date of initial occupancy as an emergency shelter for the
homeless.
(2) In the case of a building that was operated as an emergency
shelter before receipt of grant amounts under this part, on the date
that grant amounts are first obligated for the shelter.
24 CFR 576.75 Building standards.
Any building for which emergency shelter grant amounts are used for
renovation, conversion, or major rehabilitation must meet local
government safety and sanitation standards.
24 CFR 576.77 Assistance to the homeless.
Homeless individuals and families must be given assistance in
obtaining:
(a) Appropriate supportive services, including permanent housing,
medical health treatment, mental health treatment, counseling,
supervision, and other services essential for achieving independent
living; and
(b) Other Federal, State, local, and private assistance available for
such individuals.
24 CFR 576.79 Other Federal requirements.
Use of emergency shelter grant amounts must comply with the following
additional requirements:
(a) Nondiscrimination and Equal Opportunity. (1) The requirements of
the Fair Housing Act (42 U.S.C. 3601-20) and implementing regulations at
24 CFR part 100; Executive Order 11063 and implementing regulations at
24 CFR part 107; and title VI of the Civil Rights Act of 1964 (42
U.S.C. 2000d-2000d-4) and implementing regulations issued at 24 CFR part
1;
(2) The prohibitions against discrimination on the basis of age under
the Age Discrimination Act of 1975 (42 U.S.C. 6101-07) and implementing
regulations at 24 CFR part 146 and the prohibitions against
discrimination against otherwise qualified individuals with handicaps
under section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) and
implementing regulations at 24 CFR part 8. For purposes of the
emergency shelter grants program, the term ''dwelling units'' in 24 CFR
part 8 shall include sleeping accommodations.
(3) The requirements of Executive Order 11246 and the regulations
issued under the Order at 41 CFR chapter 60;
(4) The requirements of section 3 of the Housing and Urban
Development Act of 1968, 12 U.S.C. 1701u (see 570.607(b) of this
chapter);
(5) The requirements of Executive Orders 11625, 12432, and 12138.
Consistent with HUD's responsibilities under these Orders, the grantee
must make efforts to encourage the use of minority and women's business
enterprises in connection with activities funded under this part; and
(6) The requirement that the grantee (or in the case of States, the
State recipient) make known that use of the facilities and services is
available to all on a nondiscriminatory basis. Where the procedures
that a grantee or recipient intends to use to make known the
availability of such facilities and services are unlikely to reach
persons with handicaps or persons of any particular race, color,
religion, sex, age or national origin within their service area who may
qualify for them, the recipient or grantee must establish additional
procedures that will ensure that these persons are made aware of the
facilities and services. Grantees and recipients must also adopt and
implement procedures designed to make available to interested persons
information concerning the existence and location of services and
facilities that are accessible to persons with a handicap.
(b) Applicability of OMB Circulars. /1/ The policies, guidelines,
and requirements of 24 CFR part 85 (codified pursuant to OMB Circular
No. A-102) and OMB Circular No. A-87, as they relate to the acceptance
and use of emergency shelter grant amounts by States and units of
general local government, and Nos. A-110 and A-122 as they relate to
the acceptance and use of emergency shelter grant amounts by private
nonprofit organizations.
(c) Lead-based paint. The requirements, as applicable, of the
Lead-Based Paint Poisoning Prevention Act (42 U.S.C. 4821-4846) and
implementing regulations at 24 CFR part 35. In addition, the grantee
(or in the case of States, the State recipient) must also meet the
following requirements relating to inspection and abatement of defective
lead-based paint surfaces:
(1) Treatment of defective paint surfaces must be performed before
final inspection and approval of the renovation, rehabilitation or
conversion activity under this part; and
(2) Appropriate action must be taken to protect shelter occupants
from the hazards associated with lead-based paint abatement procedures.
(d) Conflicts of interest. In addition to the conflict of interest
requirements in OMB Circulars A-102 and A-110, no person --
(1)(i) Who is an employee, agent, consultant, officer, or elected or
appointed official of the grantee, State recipient, or nonprofit
recipient (or of any designated public agency) that receives emergency
shelter grant amounts and (ii) who exercises or has exercised any
functions or responsibilities with respect to assisted activities, or
(2) Who is in a position to participate in a decisionmaking process
or gain inside information with regard to such activities, may obtain a
personal or financial interest or benefit from the activity, or have an
interest in any contract, subcontract, or agreement with respect
thereto, or the proceeds thereunder, either for him or herself or for
those with whom he or she has family or business ties, during his or her
tenure, or for one year thereafter. HUD may grant an exception to this
exclusion as provided in 570.611 (d) and (e) of this chapter.
(e) Use of debarred, suspended, or ineligible contractors. The
provisions of 24 CFR part 24 relating to the employment, engagement of
services, awarding of contracts, or funding of any contractors or
subcontractors during any period of debarment, suspension, or placement
in ineligibility status are applicable to grantees and recipients under
this part.
(f) Flood insurance. No site proposed on which renovation, major
rehabilitation, or conversion of a building is to be assisted under this
part, other than by grant amounts allocated to States under 576.43, may
be located in an area that has been identified by the Federal Emergency
Management Agency (FEMA) as having special flood hazards, unless
(1)(i) The community in which the area is situated is participating
in the National Flood Insurance Program and the regulations thereunder
(44 CFR parts 59 through 79) or
(ii) Less than a year has passed since FEMA notification regarding
such hazards; and
(2) The grantee will ensure that flood insurance on the structure is
obtained in compliance with section 102(a) of the Flood Disaster
Production Act of 1973 (42 U.S.C. 4001 et seq.).
(g) Coastal barriers. In accordance with the Coastal Barrier
Resources Act, 16 U.S.C. 3501, no financial assistance under this part
may be made available within the Coastal Barrier Resources System.
(h) Drug Free Workplace Act of 1988. Each grantee is required to
certify that it (and its recipients) will maintain a drug-free workplace
in accordance with the requirements of 24 CFR part 24, subpart F.
(i) Audit. The financial management system used by a State or unit
of general local government that is a grantee or State recipient must
provide for audits in accordance with 24 CFR part 44. A private
nonprofit organization is subject to the audit requirements of OMB
Circular A-110.
(j) Intergovernmental review. The requirements of Executive Order
12372 and the regulations issued under the order at 24 CFR part 52, to
the extent provided by Federal Register notice in accordance with 24 CFR
52.3.
/1/ OMB Circulars referenced in this section are available at the
Entitlement Cities Division, Room 7282, Department of Housing and Urban
Development, 451 Seventh Street, SW., Washington, DC 20410.
24 CFR 576.80 Relocation and acquisition.
(a) Minimizing displacement. Consistent with the other goals and
objectives of this part, grantees and recipients must assure that they
have taken all reasonable steps to minimize the displacement of persons
(families, individuals, businesses, nonprofit organizations, and farms)
as a result of a project assisted under this part.
(b) Relocation assistance for displaced persons. A displaced person
(defined in paragraph (f)(1) of this section) must be provided
relocation assistance at the levels described in, and in accordance
with, 49 CFR part 24, which contains the government-wide regulations
implementing the Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970 (URA) (42 U.S.C. 4601-4655).
(c) Real property acquisition requirements. The acquisition of real
property for a project is subject to the URA and the requirements
described in 49 CFR part 24, subpart B.
(d) Responsibility of grantees and recipients. Each grantee and
recipient must assure that it will comply with the URA, the regulations
at 49 CFR part 24, and the requirements of this section. The cost of
assistance required by this section may be paid from local public funds,
funds provided in accordance with this part, or funds available from
other sources.
(e) Appeals. A person who disagrees with the grantee's or
recipient's determination concerning a payment or other assistance
required by this section may file a written appeal of that determination
with the grantee or recipient. The appeal procedures to be followed are
described in 49 CFR 24.10.
(f) Definition. -- (1) Displaced person. (i) The term ''displaced
person'' means a person (family, individual, business, nonprofit
organization, or farm) that moves from real property, or moves personal
property from real property, permanently and involuntarily, as a direct
result of acquisition, rehabilitation, or demolition for a project
assisted under this part. Permanent, involuntary moves for an assisted
project include:
(A) A permanent move from the real property (building or complex)
following notice by the grantee, recipient or property owner to move
permanently from the property, if the move occurs on or after the date
that the grantee or recipient submits to HUD an application for
assistance that is later approved and funded;
(B) A permanent move from the real property that occurs before the
submission of the application to HUD, if the grantee, recipient or HUD
determines that the displacement resulted directly from acquisition,
rehabilitation, or demolition for the project, or
(C) A permanent move from the real property by a tenant-occupant of a
dwelling unit that occurs after the execution of the agreement between
the recipient and HUD if:
(1) The tenant has not been provided a reasonable opportunity to
lease and occupy a suitable, decent, safe and sanitary dwelling in the
same building/complex following the completion of the project at a rent,
including estimated average utility costs, that does not exceed the
greater of the tenant's rent and estimated average utility costs before
the initiation of negotiations, or 30 percent of gross household income;
or
(2) The tenant has been required to relocate temporarily but the
tenant is not offered payment for all reasonable out-of-pocket expenses
incurred in connection with the temporary relocation or other conditions
of the temporary relocation are not reasonable, and the tenant does not
return to the building/complex; or
(3) The tenant is required to move to another unit in the same
building/complex but is not offered reimbursement for all reasonable
out-of-pocket expenses incurred in connection with the move.
(ii) A person does not qualify as a ''displaced person'' if:
(A) The person has been evicted for cause based upon a serious or
repeated violation of material terms of the lease or occupancy agreement
and HUD determines that the eviction was not undertaken for the purpose
of evading the obligation to provide relocation assistance;
(B) The person moved into the property after the submission of the
application and, before commencing occupancy, received written notice of
the expected displacement;
(C) The person is ineligible under 49 CFR 24.2(g)(2); or
(D) HUD determines that the person was not displaced as a direct
result of acquisition, rehabilitation, or demolition for the project.
(iii) The grantee or recipient may, at any time, request a HUD
determination of whether a displacement is or would be covered under
this section.
(2) Initiation of negotiations. For purposes of determining the type
of replacement housing payment to be made to a residential tenant
displaced as a direct result of privately undertaken rehabilitation,
demolition, or acquisition of the real property, the term ''initiation
of negotiations'' means the execution of the agreement between the
grantee and HUD.
(Approved by the Office of Management and Budget under OMB Control
Number 2506-0089)
(54 FR 46799, Nov. 7, 1989, as amended at 54 FR 52397, Dec. 21, 1989)
24 CFR 576.80 Subpart H -- Grant Administration
24 CFR 576.81 Responsibility for grant administration.
Grantees are responsible for ensuring that emergency shelter grant
amounts are administered in accordance with the requirements of this
part and other applicable laws. In the case of States making grant
amounts available to State recipients, and in the case of units of
general local government distributing grant amounts to nonprofit
recipients, the States and the units of local government are responsible
for ensuring that their respective recipients carry out the recipients'
emergency shelter grant programs in compliance with all applicable
requirements.
24 CFR 576.83 Method of payment.
Payments are made to a grantee upon its request after the grant
agreement has been fully executed, and may include a working capital
advance for 30 days' cash needs or an advance of $5,000, whichever is
greater. Thereafter, the grantee will be reimbursed for the amount of
its actual cash disbursements. If a grantee requests a working capital
advance, it must base the request on a realistic, firm estimate of the
amounts required to be disbursed over the 30-day period in payment of
eligible activity costs. Payments with respect to grants of $120,000,
or more, will be made by letter of credit, if the grantee meets the
requirements of 24 CFR 85.21.
24 CFR 576.85 Performance reports.
(a) Interim performance report -- (1) Timing of report. (i) A
formula city or county, or Territory, must submit its interim
performance report to HUD no later than 30 days after the end of the
180-day period allowed for the obligation of grant amounts under
576.55(b), or 30 days after the date when all grant amounts are
obligated, whichever comes first.
(ii) A State must submit its interim performance report not later
than 30 days from the date of the State's distribution of funds to its
State recipients; except that where the responsible field office grants
a State an extension of the 65-day deadline for making available its
grant funds under 576.55(a)(1) a corresponding extension for filing of
the interim report will automatically be granted.
(iii) A grantee referred to in 576.67, ''Reallocation of funds,''
must submit its interim performance report to HUD within the period
specified in its grant agreement.
(2) Report content. (i) In the case of a grantee other than a State,
the interim performance report must contain information on the amount of
funds obligated for each of the four categories of eligible activities
described in 576.21(a) (1), (2), (3), and (4).
(ii) A State interim performance report must provide this information
for each State recipient.
(3) Matching funds certification. A State must submit with its
interim performance report the matching funds certification required by
576.51(b)(2)(ii).
(b) Annual performance report -- (1) Report content. A grantee other
than a State must provide HUD with an annual performance report on the
obligation and expenditure of funds for each of the four categories of
eligible activities described in 576.21(a) (1), (2), (3), and (4). A
State must provide this information for each State recipient.
(2) Timing of report. The initial annual performance report is
required for the period ending December 31 following the submission of
the interim report, and is due no later than 30 days after December 31.
A grantee must continue to submit this report annually until all
emergency shelter grant amounts are reported as expended, except that
the final report is to be submitted 90 days after all ESG funds are
expended and all activities are completed.
24 CFR 576.87 Recordkeeping.
Each grantee must ensure that records are maintained for a three-year
period to document compliance with the provisions of this part.
24 CFR 576.89 Sanctions.
(a) HUD sanctions. If HUD determines that a grantee is not complying
with the requirements of this part or of other applicable Federal law,
HUD may (in addition to any remedies that may otherwise be available)
take any of the following sanctions, as appropriate:
(1) Issue a warning letter that further failure to comply with such
requirements will result in a more serious sanction;
(2) Condition a future grant;
(3) Direct the grantee to stop the incurring of costs with grant
amounts;
(4) Require that some or all of the grant amounts be remitted to HUD;
(5) Reduce the level of funds the grantee would otherwise be entitled
to receive; or
(6) Elect not to provide future grant funds to the grantee until
appropriate actions are taken to ensure compliance.
(b) State sanctions. If a State determines that a State recipient is
not complying with the requirements of this part or other applicable
Federal laws, the State must take appropriate actions, which may include
the actions described in paragraph (a) of this section. Any grant
amounts that become available to a State as a result of a sanction under
this section must, at the option of the State, be made available (as
soon as practicable) to other nonprofit organizations or units of
general local government located in the State for use within the time
periods specified in 576.55(a)(2), or to HUD for reallocation under
576.67(d).
(c) Reallocations. Any grant amounts that become available to HUD as
a result of the imposition of a sanction under this section will be
reallocated under 576.67(d).
24 CFR 576.89 PART 577 -- TRANSITIONAL HOUSING
24 CFR 576.89 Subpart A -- General
Sec.
577.1 Applicability and scope.
577.5 Definitions.
577.10 Waivers.
24 CFR 576.89 Subpart B -- Assistance Provided
577.100 Types of assistance.
577.105 Acquisition/substantial rehabilitation advances.
577.110 Moderate rehabilitation grants.
577.112 New construction advances.
577.115 Funding for annual operating costs and supportive services
costs.
577.117 Grants for employment assistance programs.
577.120 Technical assistance.
577.125 Limitations on use of assistance.
577.130 Matching requirements.
577.135 Assistance under other HUD programs.
24 CFR 576.89 Subpart C -- Comprehensive Housing Affordability Strategy
577.150 Comprehensive Housing Affordability Strategy.
24 CFR 576.89 Subpart D -- Application and Selection Process
577.200 Notice of fund availability.
577.205 Selection process.
577.210 Application requirements.
577.215 Ranking criteria.
577.220 Environmental review.
577.225 Final selection.
24 CFR 576.89 Subpart E -- Program Requirements
577.300 Grant agreement.
577.305 General operation.
577.310 Term of commitment and repayment of advance.
577.315 Relocation and acquisition.
577.320 Resident rent.
577.325 Discharge of residents.
577.330 Flood insurance.
577.335 Applicability of other Federal requirements.
24 CFR 576.89 Subpart F -- Administration
577.400 Obligation of funds, funding amendments, and deobligation.
577.405 Site change.
Authority: Sec. 426, Stewart B. McKinney Homeless Assistance Act
(42 U.S.C. 11386); sec. 7(d), Department of Housing and Urban
Development Act (42 U.S.C 3535(d)).
Source: 54 FR 47031, Nov. 8, 1989, unless otherwise noted.
24 CFR 576.89 Subpart A -- General
24 CFR 577.1 Applicability and scope.
(a) General. The Supportive Housing Demonstration program contained
in subtitle C of title IV of the Stewart B. McKinney Homeless
Assistance Act is designed to develop innovative approaches for
providing supportive housing, especially to deinstitutionalized homeless
individuals, homeless families with children, and homeless individuals
with mental disabilities and other handicapped homeless persons. It is
designed to determine:
(1) The cost of acquisition, rehabilitation, acquisition and
rehabilitation, or leasing of existing structures for the provision of
supportive housing;
(2) The cost of operating such housing and providing supportive
services to the residents of such housing;
(3) The social, financial, and other advantages of such housing as a
means of assisting homeless individuals; and
(4) The lessons that the provision of supportive housing might have
for the design and implementation of housing programs that serve
homeless individuals and families with special needs, particularly
deinstitutionalized homeless individuals, homeless families with
children, homeless individuals with mental disabilities, and other
handicapped homeless persons.
A central purpose of the program is to provide supportive housing
for deinstitutionalized homeless individuals and other homeless
individuals with mental disabilities.
(b) The Supportive Housing Demonstration program consists of two
components: Permanent housing for handicapped homeless persons and
transitional housing. This part implements the transitional housing
component of the program. Part 578 provides for a program to assist in
providing permanent housing for handicapped homeless persons.
24 CFR 577.5 Definitions.
As used in this part:
Applicant means a State, metropolitan city, urban county,
governmental entity, tribe, or private nonprofit organization that
submits an application for assistance under this part. Governmental
entities include those that have general governmental powers (such as a
city or county), as well as those that have limited or special powers
(such as public housing agencies).
Comprehensive Housing Affordability Strategy (CHAS or housing
strategy). The housing strategy prepared by a jurisdiction and
submitted to HUD in accordance with 24 CFR part 91.
Date of initial occupancy means the date that the project is
initially occupied by a homeless person for whom assistance is provided
under this part. If the assistance provided under this part is used
only for the purposes described under 577.125(a)(2)(ii), the date of
initial occupancy is the date that expanded services are first provided
to the residents of the project.
Deinstitutionalized homeless individual means a homeless individual
with mental disabilities who has been discharged or released from a
mental institution or hospital, a halfway house, or similar facility
providing housing and supportive services to its residents. This term
includes a homeless family, if the head of the family (or the spouse of
the head of the family) is a deinstitutionalized homeless individual.
ESG formula city or county means a metropolitan city or urban county
that is eligible to receive a formula allocation under the Emergency
Shelter Grants program established by subtitle B of title IV of the
Stewart B. McKinney Homeless Assistance Act and described at 24 CFR
part 576.
Handicapped or Handicapped person means any individual having an
impairment that is expected to be of long-continued and indefinite
duration, is a substantial impediment to his or her ability to live
independently, and is of a nature that the ability to live independently
could be improved by a stable residential situation. This term
includes:
(a) An individual who is developmentally disabled, i.e., an
individual who has a severe chronic disability that:
(1) Is attributable to a mental or physical impairment or combination
of mental and physical impairments;
(2) Is manifested before the person attains age 22;
(3) Is likely to continue indefinitely;
(4) Results in substantial functional limitations in three or more of
the following areas of major life activity:
(i) Self-care;
(ii) Receptive and expressive language;
(iii) Learning;
(iv) Mobility;
(v) Self-direction;
(vi) Capacity for independent living; and
(vii) Economic self-sufficiency; and
(5) Reflects the person's need for a combination and sequence of
special, interdisciplinary, or generic care, treatment, or other
services that are of lifelong or extended duration and are individually
planned and coordinated.
(b) An individual who is chronically mentally ill, i.e., an
individual who has a severe and persistent mental or emotional
impairment that seriously limits his or her ability to live
independently (e.g., by limiting functional capacities relative to
primary aspects of daily living such as personal relations, living
arrangements, work, or recreation), and whose impairment could be
improved by more suitable housing conditions.
(c) A person whose sole impairment is alcoholism or drug addiction
will not be considered to be handicapped under this part.
Homeless means:
(a) An individual or family that lacks a fixed, regular, and adequate
nighttime residence; or
(b) An individual or family that has a primary nighttime residency
that is:
(1) A supervised publicly or privately operated shelter designed to
provide temporary living accommodations (including welfare hotels,
congregate shelters, and transitional housing for the mentally ill);
(2) An institution that provides a temporary residence for
individuals intended to be institutionalized; or
(3) A public or private place not designed for, or ordinarily used
as, a regular sleeping accommodation for human beings. This term does
not include any individual imprisoned or otherwise detained under an Act
of the Congress or a State law.
Homeless family with children means a homeless family that includes
at least one parent or guardian and one child under the age of 18, a
homeless pregnant women, and a homeless individual in the process of
securing legal custody of any person who has not attained the age of 18
years.
Homeless individual with mental disabilities means a homeless
individual who is a handicapped person and whose handicap is wholly or
partially attributable to a mental or emotional impairment. This term
includes a homeless family, if the head of the family (or the spouse of
the head of the family) is a homeless individual with mental
disabilities.
HUD means the Department of Housing and Urban Development.
Metropolitan city means a city that is classified as a metropolitan
city under section 102(a)(4) of the Housing and Community Development
Act of 1974. In general, metropolitan cities are those cities that are
eligible for an entitlement grant under 25 CFR part 570, subpart D.
Moderate rehabilitation means rehabilitation of a project that
involves costs of 75 percent or less of the value of the building before
rehabilitation. For projects of 15 or more units where rehabilitation
costs are less than 75 percent of the replacement cost of the building,
that project must meet the requirements of 24 CFR part 8.23(b).
Operating costs means expenses that a recipient incurs for:
(a) Administration (including staff salaries), maintenance, minor or
routine repair, security and rental of the housing;
(b) Utilities, fuel, furnishings, and equipment for the housing; and
(c) Relocation assistance under 577.315, including payments and
services.
Private nonprofit organization means a secular or religious
organization, no part of the net earnings of which may inure to the
benefit of any member, founder, contributor, or individual. The
organization must:
(a) Have a voluntary board;
(b)(1) Have a functioning accounting system that is operated in
accordance with generally accepted accounting principles; or
(2) Designate an entity that will maintain a functioning accounting
system for the organization in accordance with generally accepted
accounting principles; and
(c) Practice nondiscrimination in the provision of assistance under
the transitional housing program in accordance with the authorities
described in 577.335(a).
Project means one or more existing structures or incomplete
structures, or parts of one or more existing structures or incomplete
structures.
Recipient means the applicant, approved by HUD as financially
responsible, that executes a grant agreement with HUD to provide
transitional housing. The recipient must operate transitional housing
and provide (or coordinate the provision of) supportive services to the
residents of the housing.
Rehabilitation means labor, materials, tools, and other costs of
improving structures to a level that meets or exceeds applicable State
and local government health and safety standards. Rehabilitation
includes repairs directed toward an accumulation of deferred
maintenance, replacement of principal fixtures and components of
existing structures, installation of security devices, improvement
through alterations or additions to, or enhancement of, existing
structures, including improvements to increase the efficient use of
energy in structures, and structural changes necessary to make the
structure accessible for persons with physical handicaps.
Rehabilitation does not include minor or routine repairs or cosmetic
repairs or improvements. All buildings of 15 or more units undergoing
rehabilitation must meet the accessibility requirements of section 504
of the Rehabilitation Act of 1973, as amended, as set forth in 24 CFR
8.23(a) or (b).
State means any of the several States, the District of Columbia, the
Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa,
the Northern Mariana Islands, the Trust Territory of the Pacific
Islands, and any other territory or possession of the United States.
Substantial rehabilitation means rehabilitation of a project that
involves costs in excess of 75 percent of the value of the building
before rehabilitation. For projects of 15 or more units where
rehabilitation costs are 75 percent or more of the replacement cost of
the building, that project must meet the requirements of 24 CFR 8.23(a).
Supportive services means services provided to residents of
transitional housing for the purpose of facilitating the movement of the
residents to independent living. Supportive services, which must be
proposed by the applicant in its application and approved by HUD, must
address the spcial needs of the homeless to be served by the project
(such as deinstitutionalized homeless individuals, homeless families
with children, homeless individuals with mental disabilities, and other
handicapped homeless persons). Supportive services may include:
(a) Assistance in obtaining permanent housing;
(b) Medical and psychological counseling and supervision;
(c) Employment counseling;
(d) Nutritional counseling;
(e) Assistance in obtaining other Federal, State, and local
assistance available for residents of transitional housing facilities,
including mental health benefits; employment counseling; medical
assistance; Veterans' benefits; and income support assistance, such as
Supplemental Security Income benefits, Aid to Families with Dependent
Children, General Assistance, and Food Stamps; and
(f) Other services, such as child care, transportation, job
placement, and job training. All or part of the supportive services may
be provided directly by the recipient or by arrangement with public or
private service providers.
Transitional housing means a project assisted under this part:
(a) That is designed to provide housing and appropriate supportive
services to homeless persons, including (but not limited to)
deinstitutionalized homeless individuals with mental disabilities and
other homeless individuals with mental disabilities, and homeless
families with children; and
(b) That has as its purpose facilitating the movement of homeless
individuals to independent living within 24 months, or within a longer
period determined by HUD as necessary to facilitiate the transition.
Tribe means an Indian tribe, band, group, or nation, including Alaska
Indians, Aleuts, and Eskimos, and any Alaska Native Village, of the
United States, considered an eligible recipient under the Indian Self
Determination and Education Assistance Act (Pub. L. 93-638) or under the
State and Local Fiscal Assistance Act of 1972 (Pub. L. 92-512).
Urban county means a county that is classified as an urban county
under section 102(a)(6) of the Housing and Community Development Act of
1974. In general, urban counties are those counties that are eligible
for an entitlement grant under 24 CFR part 570, subpart D.
(54 FR 47031, Nov. 8, 1989, as amended at 56 FR 56129, Oct. 31, 1991)
24 CFR 577.10 Waivers.
The Secretary may waive any requirement of this part that is not
required by law, whenever it is determined that undue hardships will
result from applying the requirement, or where application of the
requirement would adversely affect the purposes of the transitional
housing program. Each waiver will be in writing and will be supported
by documentation of the pertinent facts and grounds. The Secretary
periodically will publish notice of granted waiver in the Federal
Register.
(55 FR 34154, Aug. 21, 1990)
24 CFR 577.10 Subpart B -- Assistance Provided
24 CFR 577.100 Types of assistance.
(a) Assistance available. Six types of assistance are available for
transitional housing:
(1) Advances for acquisition, substantial rehabilitation, or
acquisition and substantial rehabilitation;
(2) Advances for new construction (under limited circumstances);
(3) Grants for moderate rehabilitation;
(4) Grants for annual operating costs and supportive services costs
(up to five years);
(5) Grants for establishing and operating employment assistance
programs; and
(6) Technical assistance.
(b) Eligibility for more than one type of assistance. Applicants may
be eligible for one or any combination of the types of assistance,
except that HUD will offer technical assistance only in connection with
other assistance under this part.
(c) Rehabilitation of leased property. Acquisition/substantial
rehabilitation advances and moderate rehabilitation grants are available
for the rehabilitation of leased property.
24 CFR 577.105 Acquisition/substantial rehabilitation advances.
(a) Use. HUD will advance sums to recipients to:
(1) Defray the cost of the acquisition, substantial rehabilitation,
or acquisition and substantial rehabilitation of existing structures
selected by the recipients for use in the provision of transitional
housing; or
(2) Repay any outstanding debt on a loan made to purchase existing
structures for use in the provision of transitional housing.
(b) Amount. If the applicant meets the matching share requirements
at 577.130, the maximum advance available for acquisition/substantial
rehabilitation is the lower of:
(1) $200,000; or
(2) The total cost of the acquisition/substantial rehabilitation
minus the applicant's contribution toward the cost of the acquisition/
substantial rehabilitation.
(c) Terms of the advance. Advances are interest-free and, if the
conditions described in 577.310 are met, are not subject to repayment.
The sale or disposition of a structure acquired or rehabilitated with an
advance is subject to the requirements of 577.310(d).
(d) Increased amounts. In areas determined by HUD to have costs that
exceed the statutory limits of section 202 of the Housing Act of 1959
(12 U.S.C. 1701q) by at least 75 percent, advances of more than $200,000
but not more than $400,000 may be available. (A list of these
geographic areas is included in the application package or is available
from HUD field offices.) All requirements for matching funds described
in 577.130 are applicable to increased advances.
(e) Repayment of outstanding debt. An applicant for an
acquisition/substantial rehabilitation advance that intends to use the
advance to repay an outstanding debt on a loan made to purchase an
existing structure, as described in paragraph (a)(2) of this section,
must provide the following information and documentation as a part of
the application for the advance:
(1) A copy of the contract of sale;
(2) A copy of the loan agreement, mortgage agreement, or deed of
trust;
(3) Documentation showing the purpose of the loan;
(4) Documentation of the balance owed on the loan, mortgage, or deed
of trust; and
(5) Certification that the structure has not been assisted under this
part before the date of the application.
(f) Applicability. Paragraph (a)(2) of this section is applicable to
awards of assistance under this part on or after November 1, 1987.
(Approved by the Office of Management and Budget under OMB Control
Number 2502-0361)
24 CFR 577.110 Moderate rehabilitation grants.
(a) Use. HUD will make grants to recipients to defray the cost of
moderate rehabilitation of existing structures selected by the
recipients for use in the provision of transitional housing.
(b) Amount. If an applicant meets the matching share requirements at
577.130, the maximum grant available for moderate rehabilitation is the
lower of:
(1) $200,000; or
(2) The total cost of the moderate rehabilitation minus the
applicant's contribution toward the cost of the moderate rehabilitation.
(c) Terms of the grant. The sale or disposition of a structure
rehabilitated with a grant under this section is subject to the
requirements of 577.310(d).
(d) Increased grants. In areas determined by HUD to have costs that
exceed the statutory limits of section 202 of the Housing Act of 1959
(12 U.S.C. 1701q) by at least 75 percent, grants of more than $200,000
but not more than $400,000 may be available. (A list of these
geographic areas is included in the application package or is available
from HUD field offices.) All requirements for matching funds described
in 577.130 are applicable to increased grants.
24 CFR 577.112 New construction advances.
(a) Use. HUD will advance funds to recipients to defray the cost of
new construction of facilities for use in the provision of transitional
housing where HUD finds the following factors:
(1) The project involves the cooperation of a city and a State
university;
(2) The land has been donated to the applicant by a State university;
(3) The applicant proposes a transitional housing structure of at
least 10,000 square feet; and
(4) The applicant proposes a model transitional housing project with
a comprehensive support system, including health services, job
counseling, mental health services, and housing assistance and advocacy.
(b) Amount. If the applicant meets the matching share requirements
at 577.130, the maximum advance available for new construction is the
lower of:
(1) $200,000; or
(2) The total cost of the construction minus the applicant's
contribution toward the cost of the new construction.
(c) Increased advances. In areas determined by HUD to have costs
that exceed the statutory limits of section 202 of the Housing Act of
1959 (12 U.S.C. 1701q) by at least 75 percent, grants of more than
$200,000 but not more than $400,000 may be available. (A list of these
geographic areas is included in the application package or is available
from HUD field offices.) All requirements for matching funds described
in 577.130 are applicable to increased advances.
24 CFR 577.115 Funding for annual operating costs and supportive
services costs.
(a) General. HUD will provide grants for annual operating costs and
supportive services costs of transitional housing for a period not to
exceed five years. Assistance for operating costs and supportive
services costs will be available for up to 75 percent of the total cost
for two years and up to 50 percent of the total cost for three years.
(b) Operating costs. Grants for the costs associated with the
day-to-day operation of the transitional housing are available in
accordance with the provisions of paragraph (a) of this section. Such
costs include the expenses that a recipient incurs for the
administration (including staff salaries), maintenance, minor or routine
repair, security and rental of the housing; utilities, fuel,
furnishings and equipment for the housing; and relocation assistance
under 577.315, including payments and services.
(c) Supportive services costs. Grants for the costs associated with
providing supportive services, approved by HUD, to residents of
transitional housing are available in accordance with the provisions of
paragraph (a) of this section. Such costs include salaries paid to
providers of supportive services, the costs of conducting resident
supportive services needs assessments, and any other costs directly
associated with providing such services. Costs associated with
supportive services do not include any percentage of the costs described
in paragraph (b) that are attributable to the provision of supportive
services.
(d) Assistance for incomplete structures. If an applicant seeks
assistance under this section for projects with incomplete structures,
the applicant must provide reasonable assurance of completion of
construction within nine months after notification of an award. Such
assistance will begin on the date of initial occupancy. Reasonable
assurance may be satisfied by submission with the application for
assistance in the following:
(1) Evidence that construction financing has been obtained; and
(2) A copy of the construction contract for the proposed structure
containing the terms and conditions with regard to cost and date of
completion.
(e) Commitment of amounts for operating costs and supportive services
costs. Upon approval of an application for assistance under paragraphs
(a) and (b) of this section, HUD will obligate amounts for a period not
to exceed five operating years commencing on the date of initial
occupancy. The total amount obligated will be equal to an amount
necessary for five years of operation, based on the recipient's estimate
of such costs for five years of operation, less the recipient's
percentage share of such costs. Each year, for up to five years, HUD
will make operating cost payments to the recipient from the amounts
obligated. The annual funding level will be subject to reduction under
577.400.
(Approved by the Office of Management and Budget under OMB Control
Number 2502-0361)
24 CFR 577.117 Grants for employment assistance programs.
(a) Use. HUD will provide grants for establishing and operating an
employment assistance program for residents of transitional housing for
a period not to exceed five years. Assistance will be available for up
to 75 percent of program costs for two years and up to 50 percent of
program costs for three years.
(b) Eligibility. To be eligible for assistance, an employment
assistance program must provide for at least the following:
(1) Employment of residents in the operation and maintenance of the
transitional housing; and
(2) Where necessary and appropriate, payment of reasonable
transportation costs of residents to places of employment outside the
transitional housing.
(c) Commitment of amounts for assistance. Upon approval of an
application for assistance for an employment assistance program, HUD
will obligate amounts for the operating period sought, not to exceed
five years. The total amount obligated will be equal to an amount
necessary for five years of operating the program, based on the
recipient's estimate of such costs for five years of operation, less the
recipient's percentage share of such costs. The annual funding level
will be subject to reduction under 577.400.
24 CFR 577.120 Technical assistance.
Technical assistance will be offered in connection with an award of
funds under 577.105, 577.110, 577.112, 577.115, or 577.117. Technical
assistance is offered to recipients through HUD field offices in such
matters as the computation of resident rent under 577.320, compliance
with other Federal requirements under 577.335, the identification of
Federal housing assistance resources that may be available to residents
upon their departure from transitional housing. HUD will also
facilitate the exchange of information among recipients, and help
recipients to learn from the experience of other participants in the
program.
24 CFR 577.125 Limitations on use of assistance.
(a) Funding of existing housing facilities and programs. (1) HUD
will not provide assistance under this Part for acquisition of existing
facilties or programs that currently serve homeless persons.
(2) HUD will provide assistance for rehabilitation, operating costs,
or employment assistance programs for existing facilities or programs
that currently serve homeless persons only if the applicant proposes:
(i) A substantial increase in the number of homeless persons for whom
transitional housing will be provided;
(ii) A substantial increase in the level of supportive services to be
provided to homeless persons;
(iii) A substantial change in the use of existing facilities, e.g.,
if existing facilities for the homeless that are not currently used for
transitional housing (such as an emergency shelter for the homeless)
will be used to provide transitional housing, or if an applicant
currently providing transitional housing for one population of homeless
persons proposes to serve an additional or alternative segment of the
homeless population; or
(iv) Improvements to existing transitional housing structures
necessary to bring the structures to a level that meets applicable State
and local government health and safety standards.
(b) Maintenance of effort. (1) No assistance received under this
Part (or any State or local government funds used to supplement this
assistance) may be used to replace funds provided in the area to be
served by the applicant under any State or local government assistance
program, if the funds provided under the State or local government
assistance program were used to assist handicapped persons, homeless
individuals, or handicapped homeless persons (as defined in 578.5 of
this title) during the calendar year preceding the date of the
application, or were designated for such use through an official action
of the applicable State or local government during the calendar year
preceding the date of the application.
(2) For purposes of this section, the area to be served by the
applicant is:
(i) The State, if the applicant is a State;
(ii) The metropolitan city, if the applicant is a metropolitan city;
(iii) The urban county, if the applicant is an urban county;
(iv) The tribal jurisdiction, if the applicant is a tribe; and
(v) Cities and counties to be served by the project, if the applicant
is a private nonprofit organization or a governmental entity.
(c) Primarily religious organizations -- (1) Provision of assistance.
(i) HUD will provide assistance to a recipient that is a primarily
religious organization if the organization agrees to provide housing and
supportive services in a manner that is free from religious influences
and in accordance with the following principles:
(A) It will not discriminate against any employee or applicant for
employment on the basis of religion and will not limit employment or
give preference in employment to persons on the basis of religion;
(B) It will not discriminate against any person applying for housing
or supportive services on the basis of religion and will not limit such
housing or services or give preference to persons on the basis of
religion;
(C) It will provide no religious instruction or counseling, conduct
no religious worship or services, engage in no religious proselytizing,
and exert no other religious influence in the provision of housing and
supportive services.
(ii) HUD will provide assistance to a recipient that is a primarily
religious organization if the assistance will not be used by the
organization to acquire a structure or to rehabilitate a structure owned
by the organization, except as described in paragraph (c)(2) of this
section.
(2) Acquisition/substantial rehabilitation or moderate rehabilitation
of transitional housing in structures owned by a primarily religious
organization. An acquisition/substantial rehabilitation advance or a
moderate rehabilitation grant may be used to rehabilitate a structure
owned by a primarily religious organization, if the following conditions
are met:
(i) The structure (or portion of the structure) that is to be
rehabilitated with HUD assistance has been leased to an recipient that
is an existing or newly established wholly secular organization (which
may be established by the primarily religious organization under the
provisions of paragraph (c)(3) of this section);
(ii) The HUD assistance is provided to the wholly secular
organization (and not the primarily religious organization) to make the
improvements;
(iii) The leased structure will be used exclusively for secular
purposes available to all persons regardless of religion;
(iv) The lease payments paid to the primarily religious organization
do not exceed the fair market rent of the structure before the
rehabilitation was done;
(v) The portion of the cost of any improvements that benefit any
unleased portion of the structure will be allocated to, and paid for by,
the primarily religious organization;
(vi) The primarily religious organization agrees that, if the
recipient does not retain the use of the leased premises for wholly
secular purposes for the useful life of the improvements, the primarily
religious organization will pay an amount equal to the residual value of
the improvements to the secular organization, and the secular
organization will remit the amount to HUD.
(3) Assistance to a wholly secular private nonprofit organization
established by a primarily religious organization. (i) A primarily
religious organization may establish a wholly secular private nonprofit
organization to serve as a recipient. The wholly secular organization
may be eligible to receive all forms of assistance available under this
Part.
(A) The wholly secular organization must agree to provide housing and
supportive services in a manner that is free from religious influences
and in accordance with the principles set forth in paragraph (c)(1)(i)
of this section.
(B) The wholly secular organization may enter into a contract with
the primarily religious organization to provide supportive services for
the project. In such a case, the primarily religious organization must
agree in the contract to carry out its contractual responsibilities in a
manner free from religious influences and in accordance with the
principles set forth in paragraph (c)(1)(i) of this section.
(C) The acquisition/substantial rehabilitation advance and the
moderate rehabilitation grant are subject to the requirements of
paragraph (c)(2) of this section.
(ii) HUD will not require the primarily religious organization to
establish the wholly secular organization before the selection of its
application. In such a case, the primarily religious organization may
apply on behalf of the wholly secular organization. The application
will be reviewed on the basis of the primarily religious organization's
financial responsibility and capacity, and its commitment to provide
appropriate resources to the wholly secular organization after
formation. The requirement with regard to site control, described in
577.210(b)(8), may be satisfied if the primarily religious organization
demonstrates site control and a commitment to transfer control of the
site to the wholly secular organization after its formation. Since the
wholly secular organization will not be in existence at the time of the
application, it will be required to demonstrate that it meets the
definition of private nonprofit organization contained in 577.5. Is
such an application is selected for funding, the obligation of funds
will be conditioned upon the compliance with these requirements.
(d) Structures used for multiple purposes. Structures used to
provide transitional housing may also be used for other purposes. For
example, a structure may contain facilities for an emergency shelter as
well as transitional housing, may be used to provide supportive services
to the public at large, or may include commercial space. Under these
circumstances, however, the acquisition/substantial rehabilitation
advance and the moderate rehabilitation grant will be available only in
proportion to the use of the structure for transitional housing, and the
funding for annual operating costs will be available only to support the
costs that are related to the transitional housing to be provided. If
the applicant holds, or is donated, an interest in a structure and the
structure will be used for multiple purposes, only that portion of the
value of the structure that will be used for transitional housing may be
included in the calculation of the applicant's matching sources under
577.130.
(e) Administrative costs. Up to five percent of any advance or grant
awarded under this Part may be used for the purpose of paying costs of
administering the assistance.
24 CFR 577.130 Matching requirements.
(a) General. (1) The recipient must match the funding provided by
HUD for advances for acquisition/substantial rehabilitation and new
construction and for grants for moderate rehabilitation with an equal
amount of funds from non-Federal sources. Funds from Community
Development Block Grants and Community Services Block Grants are
considered non-Federal sources.
(2) The recipient must show that it has sources to pay the percentage
of operating costs, supportive services costs, and employment assistance
program costs not funded by HUD in grants for such costs.
(3) The maximum amount of funds that HUD will provide is based on the
percentage of the respective costs of each category of assistance.
(4) No match is required for technical assistance.
(b) Requirements for ''in-kind'' contributions as matching share for
advances for acquisition/substantial rehabilitation or new construction
or for grants for moderate rehabilitation. HUD will include in the
matching calculation for advances for acquisition/substantial
rehabilitation or new construction or for grants for moderate
rehabilitation the following ''in-kind'' contributions:
(1) Time and services contributed by volunteers, at the value of $5
an hour, to carry out the transitional housing program;
(2) The value of contributions of materials or contributions of
existing structures, or parts of structures, in the following manner:
(i) Contributions of materials and supplies;
(ii) A contribution of a fee ownership in a structure, to the extent
of the fair market value of the structure; and
(iii) A contribution of a leasehold interest in a structure, to the
extent of the fair rental value of the building.
(c) Maintenance of effort. State or local government funds used in
the matching contribution are subject to the maintenance of effort
requirements described at 577.125(b).
(d) Rental income. Rental amounts paid by residents of transitional
housing under 577.320 may be included in the calculation of the
recipient's percentage share of annual operating costs.
(e) Salaries paid to staff or residents. HUD will include in the
matching calculation for advances for acquisition/substantial
rehabilitation or new construction or for grants for moderate
rehabilitation:
(1) Salaries paid to staff from non-Federal sources to carry out the
program of the recipient; and
(2) Salaries paid from non-Federal sources to residents of
transitional housing under an employment assistance program as described
in 577.117.
24 CFR 577.135 Assistance under other HUD programs.
(a) Supplemental assistance. HUD will permit recipients to use any
assistance that may be awarded under the Supplemental Assistance for
Facilities to Assist the Homeless program (24 CFR part 579) in
conjunction with assistance awarded under this part.
(b) Ineligible projects. HUD will not assist a project under this
part, if the project involves a structure that is assisted, or residents
of the structure will receive assistance, under the United States
Housing Act of 1937; section 202 of the Housing Act of 1959; section
221(d)(3) (BMIR) or section 236 of the National Housing Act; or section
101 of the Housing and Urban Development Act.
(c) HUD-owned properties. (1) HUD will make HUD-owned single family
properties in its inventory available to applicants or potential
applicants for acquisition grants to purchase for use as transitional
housing for the homeless. To obtain these properties, applicants may
request a listing of available properties from the HUD field office,
Property Disposition Branch. If an applicant wishes to purchase a
property or properties, it must enter into a lease-option agreement with
HUD. Under the terms of the agreement, HUD will lease the property to
the applicant for up to six months for one dollar. The lease-option
agreement will state that the applicant may purchase the property at a
stated price during the lease period. Except as provided in paragraph
(c)(2) of this section, an applicant leasing property under this section
may not sublease or otherwise occupy the property until after closing of
the sale. During the lease period, applicants will be responsible for
all taxes, utilities, and maintenance, excluding hazard insurance.
Applicants demonstrating a lease-option agreement at the time their
application for assistance is filed will be regarded as having site
control of the property under 577.210(b). If the option is not
exercised, the lease-option agreement will expire at the end of six
months, and the property will be returned to HUD's inventory, unless an
extension of time is authorized by HUD.
(2) An applicant may be allowed to sublease the property to the
homeless while its application for assistance under this part is pending
if the applicant demonstrates to HUD's satisfaction that it has the
ability, in the event its application is not approved, to continue in a
lease arrangement with HUD beyond the six-month lease term under the
requirements of subpart E of 24 CFR part 291.
(54 FR 47031, Nov. 8, 1989, as amended at 56 FR 46961, Sept. 16,
1991)
24 CFR 577.135 Subpart C -- Comprehensive Housing Affordability Strategy
24 CFR 577.150 Comprehensive housing affordability strategy.
(a) Certifications. Assistance may not be made available under this
part unless the applicant has submitted a certification that the
proposed activities are consistent with a Comprehensive Housing
Affordability Strategy (CHAS) and, in the case of a jurisdiction, it has
submitted a certification that it is following a HUD-approved CHAS.
(b) Applicable CHAS for a jurisdiction. The certification of
consistency for a State, metropolitan city, urban county, or other
government entity must be submitted by the public official responsible
for submitting the CHAS.
(c) Applicable CHAS for a private nonprofit organization. The
certification of consistency for a private nonprofit organization must
indicate consistency with the CHAS of the lowest level of government in
which the project is located that has a CHAS and the certification must
be made by the public official responsible for submitting that CHAS.
(56 FR 56129, Oct. 31, 1991)
24 CFR 577.150 Subpart D -- Application and Selection Process
24 CFR 577.200 Notice of fund availability.
When funds are made available for assistance for transitional
housing, HUD will publish a notice of fund availability in the Federal
Register. The notice will:
(a) Give the location for obtaining application packages that provide
specific application requirements and guidance;
(b) Specify the time and the place for submitting completed
applications;
(c) State the amount of funding available under the notice;
(d) Indicate the weight or relative importance of the ranking
criteria contained in 577.215 as they will be applied to the funding
round announced in the notice;
(e) Announce any separate funding competitions under 577.205(b),
including the categories of transitional housing projects that will be
subject to the separate funding competitions and the amount of funding
available in each funding category; and
(f) Provide other appropriate program information and guidance.
24 CFR 577.205 Selection process.
(a) Selection process. The selection process for assistance under
this part consists of the following stages:
(1) Application for assistance (see 577.210);
(2) Ranking applications (see 577.215);
(3) Final selection (see 577.225).
(b) Separate funding competitions. (1) In accordance with funding
set-asides, funding priorities, or other statutory guidance, HUD may
establish separate funding competitions for specified categories of
transitional housing projects (e.g., transitional housing that is
primarily designed to serve homeless families with children or
deinstitutionalized homeless persons and other homeless persons with
mental disabilities). If separate funding competitions are established,
applicants within each category will compete against other applicants in
the same category for a specified amount of funding. Selections within
each category will be subject to the selection process described in
paragraph (a) of this section.
(2) HUD will announce separate funding competitions, if any, in the
notice of funds availability under 577.200. The notice will designate
the categories of transitional housing projects subject to the separate
funding competition and the amount of funding available in each funding
category.
24 CFR 577.210 Application requirements.
(a) Form, time, and adequacy of the application. To be considered
for assistance under this part, applications for assistance must be
filed in the form prescribed by HUD under this section, must meet the
requirements of this part, and must be submitted within the time period
established by HUD in the notice of funds availability under 577.200.
(b) Minimum requirements. At a minimum, HUD will require
applications to contain:
(1) Applicant data, including identity, description of past
experience, and, for private nonprofit organizations, information on
eligibility to receive assistance and financial responsibility.
(i) In determining the financial responsibility of private nonprofit
organizations, HUD will consider such factors as the past financial
history of the organization, its current and anticipated financial
outlook, the amount of funding that will be committed under the
proposal, and the applicant's other financial responsibilities. (HUD
has determined, for purposes of the requirements of this part, that all
States, metropolitan cities, urban counties, governmental entities and
tribes are financially responsible.)
(ii) Private nonprofit organizations applying for assistance must
include in their applications evidence that they meet the definition of
a private nonprofit organization contained in 577.5.
(2) The type or types of assistance requested and the amount of funds
requested for each type.
(3) A description of the proposed project, including information
regarding:
(i) The structure to be used, any proposed rehabilitation of the
structure and the estimated costs of the rehabilitation, and the value,
as determined by an appraisal, of the structure before rehabilitation if
rehabilitation assistance under 577.105 or 577.110 is requested or if
the fair market or fair rental value of the structure is to be used as a
source of matching funds;
(ii) The supportive services to be offered to the residents and the
method by which such services will be provided; and
(iii) An estimated annual budget of operating costs, supportive
services costs, and employment assistance program costs (if applicable)
for a five-year period.
(4) A description of the size and characteristics of the particular
homeless population that will occupy the transitional housing.
(5) A description of the public and private resources expected to be
made available to meet the matching fund requirements of 577.130.
(6) An assurance satisfactory to HUD that the project will be
operated for not less than 10 years for the purpose specified in the
application.
(7) A certification from the public official responsible for
submitting the Comprehensive Housing Affordability Strategy for the
appropriate jurisdiction, described in 577.150, stating that the
proposed project is consistent with the applicable housing strategy.
(8) Evidence that the applicant has control of the site involved
(e.g., ownership, lease, option to purchase or lease), or reasonable
assurance that the applicant will have control of the site not later
than six months after notification of an award of assistance.
''Reasonable assurances'' must be satisfied by identification of a
suitable site and a certification that the applicant is engaged in
negotiations or in other efforts for the purpose of gaining control of
the identified site, or other evidence satisfactory to HUD that the
application will gain control of the identified site.
(9) A written statement from the unit of general local government in
which the transitional housing is proposed to be located that the
proposed use of the structure and site is not inconsistent with any plan
of the local government that may have an effect on the use of the
structure or site. This requirement is satisfied if the applicant
demonstrates that a written request was made to the unit of local
government for the statement and the statement has not been received
within 30 days from the request.
(10) A written statement from the unit of general local government in
which the transitional housing is proposed to be located that the
proposed use of the site is permissible under applicable zoning
ordinances and regulations or other evidence that the use of the project
site is permissible under applicable zoning ordinances and regulations;
or a statement from the applicant describing the proposed actions
necessary to make the use of the site permissible under applicable
zoning ordinances and regulations, with evidence that there is a
reasonable basis to believe that the proposed zoning actions will be
completed successfully and within four months following submission of
the application.
(11) Other certification, information, or data as prescribed by HUD
in the application package.
(c) Environmental review. The environmental effects of each
application must be assessed in accordance with the provisions of the
National Environmental Policy Act of 1969 (42 U.S.C. 4321) (NEPA) and
the related authorities listed in HUD's implementing regulations at 24
CFR part 50 or part 58. See 577.220 for a full discussion of the
environmental review requirements for applications for assistance.
(Approved by the Office of Management and Budget under OMB Control
Number 2506-0112)
(54 FR 47031, Nov. 8, 1989, as amended at 54 FR 52794, Dec. 22, 1989;
56 FR 56129, Oct. 31, 1991)
24 CFR 577.215 Ranking criteria.
(a) In general. Applications will be assigned a rating score and
placed in ranked order, based upon the criteria described in paragraph
(b) of this section.
(b) Criteria. HUD will award points for the following criteria:
(1) Applicant capacity. HUD will consider the applicant's relative
ability to carry out activities under the program within a reasonable
time, and in a successful manner, after the execution of the grant
agreement with HUD. HUD will consider:
(i) The extent and quality of the applicant's past experience in
establishing and operating housing;
(ii) The extent and quality of the applicant's past experience in
providing or coordinating supportive services; and
(iii) The ability of the applicant's personnel to perform
administrative, managerial, and operational functions necessary to the
successful development and operation of transitional housing.
(2) Innovative quality of proposal. HUD will consider the innovative
quality of the proposal in providing housing and supportive services for
homeless persons in a manner that facilitates their transition to
independent living. HUD will consider the degree to which the proposal
uses a new or unusual approach to transitional housing that holds
promise of successfully facilitating the transition of homeless persons
to independent living.
(3) Need for transitional housing in the area to be served. HUD will
consider the extent to which the applicant demonstrates that an unmet
need for the proposed transitional housing, relative to the specific
need to be addressed, exists in the area to be served.
(4) Delivery of supportive services. HUD will consider:
(i) The extent to which the quality and comprehensiveness of the
proposed supportive services are related to the goal of moving people to
independent living;
(ii) The extent to which proposed supportive services are appropriate
to the unmet needs of the population to be served; and
(iii) The extent to which the applicant will use or coordinate with
other public or private entities to provide appropriate supportive
services to the residents of the housing.
(5) Matching. HUD will consider the extent to which the applicant
proposes to match the amount of assistance to be provided by HUD under
the program with more than the required amount of non-Federal funds from
other sources. Matching requirements are discussed at 577.130.
(6) Cost effectiveness. HUD will consider the extent to which the
applicant's proposed costs in acquiring or rehabilitating housing under
the program, and in operating the housing and providing supportive
services are:
(i) Reasonable in relation to the rehabilitation performed, the
property or properties acquired, and the goods and services to be
provided; and
(ii) Effective in accomplishing the purposes of the project.
(7) Employment assistance program. HUD will consider the extent to
which the applicant has an employment assistance program and the quality
of the program. HUD will consider:
(i) The extent to which the program meets the requirements of
577.117(b);
(ii) The nature of the employment and where it will be located;
(iii) Actions to coordinate employment efforts; and
(iv) The extent to which employment opportunities will be matched
with the needs of the resident population.
(8) Site control. HUD will consider the extent to which an applicant
has control of the site for the proposed project.
24 CFR 577.220 Environmental review.
(a) Generally. (1) The environmental effects of each application
must be assessed in accordance with the provisions of the National
Environmental Policy Act of 1969 (42 U.S.C. 4320) (NEPA) and the related
environmental laws and authorities listed in HUD's implementing
regulations at 24 CFR parts 50 or 58, depending on who is responsible
for environmental review.
(2) Environmental regulations provide for certain categorical
exclusions under NEPA and set conditions under which excluded activities
may be determined exempt from all environmental review requirements. In
cases where proposed assistance and matching contributions solely
involve operating costs for facilities or the provision of supportive
services and the structures and sites involved in the projects meet the
program requirements of this part, these activities are categorically
excluded by regulation under part 58 and may be determined fully exempt
from environmental review.
(b) Responsibility for review. (1) HUD will perform the
environmental review, in accordance with part 50, for applications
received directly from private nonprofit organizations, governmental
entities with special or limited purpose powers, and any governmental
entities with general purpose powers found not to have the legal
capacity to carry out this responsibility. HUD is not permitted to
approve such applications prior to its completion of this review.
(2) Applicants that are States, metropolitan cities, urban counties,
tribes, or other governmental entities with general purpose powers, and
that are deemed to have the legal capacity to do so, must assume
responsibility for environmental review, decisionmaking, and action for
each application for assistance in accordance with part 58. HUD is
permitted to approve such applications subject to the completion of
reviews by the applicant in accordance with part 58.
(3) The assumption of legal responsibility by an applicant under
paragraph (b)(2) of this section does not preclude the applicant's
arranging for the conduct of technical reviews by cooperating local
governments having an established technical capability, e.g.,
metropolitan cities in which the project is proposed to be located. The
applicant under such arrangements must independently evaluate
information submitted and assume responsibility for its accuracy, scope,
and content; meet legal requirements attached to the Release of Funds
by HUD; determine the completeness of the review; meet any
requirements for consultation, as applicable, under 24 CFR 58.5
authorities; and assure the completion of any mitigation measures
resulting from technical review or from State consultations. The
arrangements described in this paragraph are in addition to the ability
of an applicant to adopt relevant and adequate prior reviews conducted
by HUD or other governmental entity if the reviews meet the particular
requirements of the Federal environmental law or authority under which
they would be adopted, and only under certain conditions (e.g., a
determination that no environmentally significant changes have occurred
since the review was done).
(c) Environmental review by HUD. With regard to the environmental
effects of applications for which HUD performs the review, HUD will
undertake it review in accordance with the provisions of NEPA and the
related authorities listed in 24 CFR 50.4. Any application subject to
environmental review by HUD that requires an Environmental Impact
Statement (EIS) (generally, an application that HUD determines would
have a significant impact on the human environment, in accordance with
the environmental assessment procedures at 24 CFR part 50, subpart E)
will not be eligible for assistance under this part.
(d) Environmental review by applicants. (1) An applicant that is
required under paragraph (b)(2) of this section to assume environmental
review responsibility must include in its application an assurance that
the applicant will assume all the environmental review responsibility
that would otherwise be performed by HUD as the responsible Federal
official under NEPA and related authorities listed in 24 CFR 58.5,
including acceptance of jurisdiction of the Federal courts.
(2) Applicants required to assume environmental review responsibility
need not complete the review until a reasonable time after selection for
funding. In such cases, the award is subject to completion of the
environmental responsibilities set out in 24 CFR part 58 within a
reasonable time period after notification of the award. (This provision
does not preclude the applicant from enclosing its environmental
certification and Request for Release of Funds with its application.)
(i) Upon completion of the requirements in 24 CFR part 58, applicants
must certify the completion and submit a Request for Release of Funds.
This submission is not required in cases in which the applicant
determines, in accordance with part 58.34(a)(1)-(10) that its program
components are totally exempt.
(ii) HUD will not release funds for a transitional housing project if
the recipient or any other party commits transitional housing funds
(i.e., incurs any costs or expenditures to be paid or reimbursed with
such funds) before the grantee submits and HUD approves its Request for
Release of Funds (when such submission is required).
(3) A general government applicant that believes that it does not
have the legal capacity to carry out the responsibilities required by 24
CFR part 58 should contact the appropriate HUD field office for further
instructions. Determinations of legal capacity will be made on a
case-by-case basis.
(e) Location of projects in floodplains. Applications for projects
that are to be acquired, rehabilitated, or assisted with transitional
housing funds and that are located in any 100-year floodplain, as
designated by the Federal Emergency Management Agency (FEMA), are
subject to the floodplain review requirements of Executive Order 11988,
Floodplain Management (May 24, 1977). Executive Order 11988 review, as
referenced under parts 50 and 58, is to be performed during the
environmental review.
(Approved by the Office of Management and Budget under OMB Control
Number 2506-0112)
(54 FR 47031, Nov. 8, 1989, as amended at 54 FR 52794, Dec. 22, 1989)
24 CFR 577.225 Final selection.
(a) Selection for funding. In the final stage of the selection
process, the highest-ranked applications will be selected for funding in
accordance with their ranked order to the extent funds are available, as
determined under 577.215. After awards are announced, applicants may
contact HUD, with regard to applications not chosen for funding, for an
explanation.
(b) Ties between applicants. In the event of a tie between
applicants, HUD will use the quality of the proposal and the need for
the project in the area to determine which application should be
selected for funding.
(c) Procedural error. If HUD makes a procedural error in a funding
competition that, when corrected, would result in awarding sufficient
points to warrant funding of an otherwise eligible applicant during that
competitive year, HUD may fund that applicant in the next funding
competition.
24 CFR 577.225 Subpart E -- Program Requirements
24 CFR 577.300 Grant agreement.
(a) General. The duty to provide transitional housing in accordance
with the requirements of this part will be incorporated in a grant
agreement executed by HUD and the recipient.
(b) Enforcement. HUD will enforce the obligations in the grant
agreement through such action as may be appropriate.
24 CFR 577.305 General operation.
(a) Housing. Each recipient of assistance under this part must
provide safe and sanitary housing that is in compliance with all State
and local housing codes, licensing requirements, and any other
requirements in the jurisdiction in which the housing is located
regarding the condition of the structure and the operation of the
housing (except as provided in 577.325).
(b) Ongoing assessment of supportive services. Each recipient of
assistance under this part must conduct an ongoing assessment of the
supportive services required by the residents of the project and make
adjustments as appropriate.
(c) Residential supervision. Each recipient of assistance under this
part must provide any residential supervision determined by HUD as
necessary to facilitate the adequate provision of supportive services to
the residents of the housing throughout the term of the commitment to
operate transitional housing. Residential supervision may include the
employment of a full- or part-time residential supervisor with
sufficient knowledge to provide or to supervise the provision of
supportive services to the residents.
(d) Records and reports. Each recipient of assistance under this
part must keep any records and make any reports that HUD may require.
HUD may require recipients to monitor former residents for a reasonable
time set by HUD to determine whether former residents made successful
transitions to, and continue to reside in, permanent housing.
(Approved by the Office of Management and Budget under OMB Control
Number 2502-0361)
24 CFR 577.310 Term of commitment and repayment of advance.
(a) General. All projects assisted under this part must be operated
as transitional housing in accordance with this part for a term of at
least 10 years from the date of initial occupancy.
(b) Repayment of advance. (1) The recipient of an
acquisition/substantial rehabilitation advance under 577.105 or of a
new construction advance under 577.112 must repay the advance in the
amount prescribed under paragraph (b)(2) of this section and in
accordance with the terms prescribed by HUD.
(2) (i) The recipient must repay the full amount of the
acquisition/substantial rehabilitation advance or the new construction
advance if the project is used for transitional housing for less than 10
years following the date of initial occupancy. For each full year that
the project is used for transitional housing following the expiration of
this 10-year period, the amount that the recipient will be required to
pay will be reduced by one-tenth of the original advance. If the
project is used for transitional housing for 20 years following the date
of initial occupancy, the recipient will not be required to repay any
portion of the advance under this section.
(ii) The repayment provisions of paragraph (b)(2)(i) will not be
enforced if HUD determines that the project is no longer needed for use
as supportive housing and approves the use of such project for the
direct benefit of lower income persons.
(c) Eminent domain. A recipient of assistance under 577.105,
577.110, or 577.112 whose structure is taken by eminent domain during
the 20-year period following the initial date of occupancy must repay
the assistance provided under those sections, to the extent that funds
are available from the eminent domain proceeding.
(d) Prevention of undue benefits. (1) If assistance is provided for
a project under 577.105, 577.110, or 577.112, and the project is sold
or otherwise disposed of during the 20-year period following the date of
initial occupancy, the recipient must comply with such terms and
conditions as HUD may prescribe to prevent the recipient from unduly
benefiting from the sale or disposition.
(2) Paragraph (d)(1) of this section does not apply to sales or
dispositions that result in the continued use of the project for the
direct benefit of lower income persons or where all proceeds from the
sale or disposition are used to provide supportive housing.
24 CFR 577.315 Relocation and acquisition.
(a) Minimizing displacement. Consistent with the other goals and
objectives of this part, recipients and project sponsors must assure
that they have taken all reasonable steps to minimize the displacement
of persons (families, individuals, businesses, nonprofit organizations,
and farms) as a result of a project assisted under this part.
(b) Relocation assistance for displaced persons. A displaced person
(defined in paragraph (f)(1) of this section) must be provided
relocation assistance at the levels described in, and in accordance
with, 49 CFR part 24, which contains the government-wide regulations
implementing the Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970 (URA) (42 U.S.C. 4601-4655).
(c) Real property acquisition requirements. The acquisition of real
property for a project is subject to the URA and the requirements
described in 49 CFR part 24, subpart B.
(d) Responsibility of recipient. The recipient must assure that it
will comply with the URA, the regulations at 49 CFR part 24, and the
requirements of this section. The cost of assistance required by this
section may be paid from local public funds, funds provided in
accordance with this part, or funds available from other sources.
(e) Appeals. A person who disagrees with the recipient's
determination concerning a payment or other assistance required by this
section may file a written appeal of that determination with the
recipient. The appeal procedures to be followed are described in 49 CFR
24.10.
(f) Definitions -- (1) Displaced person. (i) The term ''displaced
person'' means a person (family, individual, business, nonprofit
organization, or farm) that moves from real property, or moves personal
property from real property, permanently and involuntarily, as a direct
result of acquisition, rehabilitation, or demolition for a project
assisted under this part. Permanent, involuntary moves for an assisted
project include:
(A) A permanent move from the real property (building or complex)
following notice by the recipient, project sponsor or property owner to
move permanently from the property, if the move occurs on or after the
date that the recipient submits to HUD an application for assistance
that is later approved and funded;
(B) A permanent move from the real property that occurs before the
submission of the application to HUD, if the recipient or HUD determines
that the displacement resulted directly from acquisition,
rehabilitation, or demolition for the project; or
(C) A permanent move from the real property by a tenant-occupant of a
dwelling unit that occurs after the execution of the agreement between
the recipient and HUD if:
(1) The tenant has not been provided a reasonable opportunity to
lease and occupy a suitable, decent, safe and sanitary dwelling in the
same building/complex following the completion of the project at a rent,
including estimated average utility costs, that does not exceed the
greater of
(i) the tenant's rent and estimated average utility costs before the
initiation of negotiations, or
(ii) 30 percent of gross household income; or
(2) The tenant has been required to relocate temporarily but
(i) the tenant is not offered payment for all reasonable
out-of-pocket expenses incurred in connection with the temporary
relocation or other conditions of the temporary relocation are not
reasonable, and
(ii) the tenant does not return to the building/complex; or
(3) The tenant is required to move to another unit in the same
building/complex but is not offered reimbursement for all reasonable
out-of-pocket expenses incurred in connection with the move.
(ii) A person does not qualify as a ''displaced person'' if:
(A) The person has been evicted for cause based upon a serious or
repeated violation of material terms of the lease or occupancy agreement
and HUD determines that the eviction was not undertaken for the purpose
of evading the obligation to provide relocation assistance;
(B) The person moved into the property after the submission of the
application and, before commencing occupancy, received written notice of
the expected displacement;
(C) The person is ineligible under 49 CFR 24.2(g)(2); or
(D) HUD determines that the person was not displaced as a direct
result of acquisition, rehabilitation, or demolition for the project.
(iii) The recipient or sponsor may, at any time, request a HUD
determination of whether a displacement is or would be covered by this
rule.
(2) Initiation of negotiations. For purposes of determining the type
of replacement housing replacement to be made to a residential tenant
displaced as a direct result of privately undertaken rehabilitation,
demolition or acquisition of the real property, the term ''initiation of
negotiations'' means the execution of the agreement between the
recipient and HUD.
24 CFR 577.320 Resident rent.
Each resident of a transitional housing project assisted under this
part must pay as rent an amount determined in accordance with section
3(a) of the United States Housing Act of 1937. Under section 3(a), each
resident must pay as rent the highest of:
(a) 30 percent of the family's monthly adjusted income (adjustment
factors include the number of people in the family, age of family
members, medical expenses, and child care expenses);
(b) 10 percent of the family's monthly income; or
(c) If the family is receiving payments for welfare assistance from a
public agency and a part of the payments, adjusted in accordance with
the family's actual housing costs, is specifically designated by the
agency to meet the family's housing costs, the portion of the payments
that is designated.
As part of its technical assistance under 577.120, HUD will provide
recipients with information and assistance concerning the calculation of
resident rent.
24 CFR 577.325 Discharge of residents.
(a) Preemption. No State or local law, ordinance, or regulation
shall have any force or effect to the extent that it prohibits, or has
the effect of prohibiting, recipients from discharging residents from
transitional housing at the end of the 24-month or other HUD-approved
limit on the stay of residents in the housing.
(b) Notice to residents. A recipient must personally serve written
notice to a resident, not less than 30 calendar days before the end of
the residency period for the resident, that he or she will be discharged
from the transitional housing at the end of the stated period.
(c) Resident contract. A recipient of assistance under this part may
execute a contract with each resident individual or family before
admission to transitional housing providing for the length of the
residency period (not to exceed 24 months or a longer time period
approved by HUD) and such other terms and conditions governing the
relationship between the recipient and the resident.
24 CFR 577.330 Flood insurance.
(a) The Flood Disaster Protection Act of 1973 (42 U.S.C. 4001-4128)
prohibits the approval of applications for assistance for acquisition or
construction (including rehabilitation) for projects/sites located in an
area identified by the Federal Emergency Management Agency (FEMA) as
having special flood hazards, unless:
(1) The community in which the area is situated is participating in
the National Flood Insurance Program (see 44 CFR parts 59 through 79),
or less than a year has passed since FEMA notification regarding such
hazards; and
(2) Flood insurance is obtained as a condition of approval of the
application.
(b) Recipients with projects/sites located in an area identified by
FEMA as having special flood hazards are responsible for assuring that
flood insurance under the National Flood Insurance Program is obtained
and maintained.
24 CFR 577.335 Applicability of other Federal requirements.
Each recipient of assistance under this part must comply with the
following additional requirements:
(a) Nondiscrimination and equal opportunity. The nondiscrimination
and equal opportunity requirements that apply to the transitional
housing program are discussed below. Notwithstanding the permissibility
of proposals that serve designated populations of homeless persons,
recipients serving a designated population of homeless persons are
required, within the designated population, to comply with these
requirements for nondiscrimination on the basis of race, color,
religion, sex, national origin, age, familial status, and handicap.
(1) The requirements of the Fair Housing Act (42 U.S.C. 3601-20) and
implementing regulations at 24 CFR part 100; Executive Order 11063
(Equal Opportunity in Housing) and implementing regulations at 24 CFR
part 107; and Title VI of the Civil Rights Act of 1964 (42 U.S.C.
2000d) (Nondiscrimination in Federally Assisted Programs) and
implementing regulations issued at 24 CFR part 1;
(2) The prohibitions against discrimination on the basis of age under
the Age Discrimination Act of 1975 (42 U.S.C. 6101-07) and implementing
regulations at 24 CFR part 146, and the prohibitions against
discrimination against handicapped individuals under section 504 of the
Rehabilitation Act of 1973 (29 U.S.C. 794) and implementing regulations
at 24 CFR part 8;
(3) The requirements of Executive Order 11246 (Equal Employment
Opportunity) and the regulations issued under the Order at 41 CFR
chapter 60;
(4) The requirements of section 3 of the Housing and Urban
Development Act of 1968, (12 U.S.C. 1701u) (Employment Opportunities for
Lower Income Persons in Connection with Assisted Projects); and
(5) The requirements of Executive Orders 11625, 12432, and 12138.
Consistent with HUD's responsibilities under these Orders, recipients
must make efforts to encourage the use of minority and women's business
enterprises in connection with funded activities.
(6) If the procedures that the recipient intends to use to make known
the availability of the transitional housing are unlikely to reach
persons of any particular race, color, religion, sex, age, national
origin, familial status, or handicap who may qualify for admission to
the housing, the recipient must establish additional procedures that
will ensure that interested persons can obtain information concerning
the existence and location of services and facilities that are
accessible to handicapped persons.
(b) Environmental. The National Environmental Policy Act of 1969,
the related authorities in 24 CFR parts 50 and 58, and the Coastal
Barrier Resources Act of 1982 (16 U.S.C. 3601) are applicable to
proposals under this program.
(c) Applicability of OMB Circulars. The policies, guidelines, and
requirements of OMB Circular Nos. A-87 and A-102 (as set forth in 24
CFR part 85) apply to the acceptance and use of assistance under the
program by governmental entities, and OMB Circular Nos. A-110 and A-122
apply to the acceptance and use of assistance by private nonprofit
organizations, except the requirements of 24 CFR 85.24 are modified by
577.130, and the requirements of 24 CFR 85.31 are modified by 577.310.
(d) Lead-based paint. (1) The requirements of the Lead-Based Paint
Poisoning Prevent Act (42 U.S.C. 4821-4846) and implementing regulations
at 24 CFR part 35 (except as superseded in paragraph (d)(2) of this
section) apply to transitional housing assisted under this part.
(2)(i) This paragraph implements the provisions of section 302 of the
Lead-Based Paint Poisoning Prevention Act (42 U.S.C. 4822) by
establishing procedures to eliminate, as far as practicable, the hazards
of lead-based paint poisoning with respect to structures for which
assistance is provided under this part. This paragraph is promulgated
under 24 CFR 35.24(b)(4) and supersedes, with respect to the program,
the requirements prescribed in subpart C of 24 CFR part 35. The
requirements of this paragraph apply to structures that will be occupied
by children under seven years of age.
(ii) The follow definitions apply to this paragraph (d):
Applicable surface means all intact and non-intact painted interior
and exterior surfaces of a residential structure.
Chewable surface means all chewable, protruding painted surfaces up
to five feet from the floor or ground, which are readily accessible to
children under seven years of age: e.g., protruding corners,
windowsills and frames, doors and frames, and other protruding woodwork.
Defective paint surfaces means paint on applicable surfaces that is
cracking, scaling, chipping, peeling, or loose.
Elevated blood lead level or EBL means execssive absorption of lead:
That is, a confirmed concentration of lead in whole blood of 25 g/dl
(micrograms of lead per deciliter of whole blood) or greater.
Lead-based paint surface means a paint surface, whether or not
defective, identified as having a lead content greater than or equal to
1 mg/cm2.
(iii) In the case of a structure constructed before 1978 or
substantially rehabilitated prior to 1978, the applicant must inspect
the structure for defective paint surfaces before it submits an
application. Recipients must inspect assisted structures at least
annually during the term of their operating commitment to HUD. If
defective paint surfaces are found, treatment in accordance with 24 CFR
35.24(b)(2)(ii) is required. Correction of defective surfaces found
during the initial inspection must be completed before initial detail
occupancy of the project. Correction of defective paint conditions
discovered at periodic inspection must be completed within 30 days of
their discovery. When weather conditions prevent completion of
repainting of exterior surfaces within the 30-day period, repainting may
be delayed, but covering or removal of the defective paint must be
completed within the prescribed period.
(iv) In the case of a structure constructed before 1978 or
substantially rehabilitated prior to 1978, if the recipient is presented
with test results that indicate that a child under the age of seven
years occupies the structure and has an elevated blood lead level (EBL),
the recipient must cause the unit to be tested for lead-based paint on
chewable surfaces. Testing must be conducted by a State or local health
or housing agency, by an inspector certified or regulated by a State or
local health or housing agency, or an organization recognized by HUD.
Lead content must be tested by using an X-ray florescence analyzer (XRF)
or other method approved by HUD. Test readings of 1 mg/cm or higher
using an XRF shall be considered positive for presence of lead-based
paint. Where lead-based paint on chewable surfaces is identified,
covering or removal of the paint surface in accordance with 24 CFR
35.24(b)(2)(ii) is required.
(v) In lieu of the procedures set forth in the preceding clause, the
recipient may, at its discretion, abate all interior and exterior
chewable surfaces in accordance with the methods set out at 24 CFR
35.24(b)(2)(ii).
(vi) The recipient must take appropriate action to protect tenants
from hazards associated with abatement procedures.
(vii) The recipient must keep a copy of each inspection report for at
least three years. If a unit requires testing, or treatment of chewable
surfaces based on the testing, the recipient must keep the test results
and, if applicable, the certification of treatment indefinitely. The
records must indicate which chewable surfaces in the units have been
tested or treated. If records establish that certain chewable surfaces
were tested, or tested and treated, in accordance with the standards
prescribed in this section, these surfaces do not have to be tested or
treated at any subsequent time.
(e) Conflicts of interest. aIn addition to the conflict of interest
requirements in OMB Circulars A-102 and 24 CFR part 85, no person who is
an employee, agent, consultant, officer, or elected or appointed
official of the recipient that receives assistance under the program and
who exercises or has exercised any functions or responsibilities with
respect to assisted activities, or who is in a position to participate
in a decisionmaking process or gain inside information with regard to
such activities, may obtain a personal or financial interest or benefit
from the activity, or have an interest in any contract, subcontract, or
agreement with respect thereto, or the proceeds thereunder, either for
himself or herself or for those with whom he or she has family or
business ties, during his or her tenure or for one year thereafter.
(f) Use of debarred, suspended, or ineligible contractors. The
provisions of 24 CFR part 24 apply to the employment, engagement of
services, awarding of contracts, or funding of any contractors or
subcontractors during any period of debarment, suspension, or placement
in ineligibility status.
(g) Audit. The financial management systems used by States,
metropolitan cities, urban counties, governmental entities and tribes
that are recipients under this program must provide for audits in
accordance with 24 CFR part 44. Private nonprofit organization
recipients are subject to the audit requirements of OMB Circular A-110.
HUD may perform or require additional audits as it finds necessary or
appropriate.
(h) Davis-Bacon Act. The provisions of the Davis-Bacon Act (40
U.S.C. 276a-276a-5) do not apply to the program.
(i) Drug-and alcohol-free facilities. Section 402 of the Stewart B.
McKinney Homeless Assistance Amendments Act of 1988 requires recipients
assisted under this part to administer, in good faith, a policy designed
to ensure that the homeless facility is free from the illegal use,
possession, or distribution of drugs or alcohol by its residents.
Recipients are also subject to the requirements of sections 5151-5160 of
the Drug-Free Workplace Act of 1988 and HUD's implementing regulations
at 24 CFR part 24.
24 CFR 577.335 Subpart F -- Administration
24 CFR 577.400 Obligation of funds, funding amendments, and
deobligation.
(a) Obligation of funds. When HUD selects an application for funding
and notifies the recipient, it will obligate funds to cover the amount
of the approved assistance under subpart B of this part.
(b) Increases. After the initial obligation of funds, HUD will not
make any upward revisions to the amount obligated for any approved
assistance.
(c) Deobligation. (1) HUD may deobligate amounts for the
acquisition/substantial rehabilitation advance, the moderate
rehabilitation grant, or the new construction advance:
(i) If the actual total costs of acquisition/substantial
rehabilitation, moderate rehabilitation, or new construction are less
than the total cost anticipated in the application; or
(ii) If proposed activities for which funding was approved are not
begun or completed within a reasonable time after selection.
(2)(i) HUD may deobligate the amounts for annual operating costs,
supportive services costs, or annual operating costs of an employment
assistance program in any year following the first year of operation,
based on the any revisions to the recipient's budget as originally
approved. Additionally, if a recipient's operations generate a
substantial amount of resident rent (see 577.320), HUD may adjust the
operating costs allowed under the grant agreement downward, to the
extent of the rent received in excess of that anticipated and budgeted
in the application.
(ii) HUD may deobligate the amounts for annual operating costs,
supportive services costs, or costs of establishing and operating an
employment assistance program if the proposed transitional housing
operations are not begun within a reasonable time following selection or
carried out expeditiously.
(3) The grant agreement may set forth in detail other circumstances
under which funds may be deobligated, and other sanctions may be
imposed.
(4) HUD may:
(i) Readvertise the availability of funds that have been deobligated
under this section in a notice of fund availability under 557.200, or
(ii) Reconsider applications that were submitted in response to the
most recently published notice of fund availability and select
applications for funding with the deobligated funds. Such selections
will be made in accordance with subpart D of this part.
(d) Site control. HUD will deobligate any award for assistance under
this part if the recipient does not have control of a suitable site
within one year after notification of an award.
24 CFR 577.405 Site change.
(a) General. A recipient may obtain ownership or control of a
suitable site different from the one specified in its application.
Retention of an assistance award is subject to the new site's meeting
all requirements under this part for suitable sites.
(b) Increased costs. If the acquisition/substantial rehabilitation
or moderate rehabilitation costs for the substitute site are greater
than the amount of the advance or grant awarded for the site specified
in the application, the recipient must provide for all additional costs.
If the recipient is unable to demonstrate to HUD that it is able to
provide for the difference in costs, HUD may deobligate the award of
assistance.
(c) Applicability. This section is applicable to awards of
assistance made under this part on or after November 1, 1987.
24 CFR 577.405 PART 578 -- PERMANENT HOUSING FOR HANDICAPPED HOMELESS PERSONS
24 CFR 577.405 Subpart A -- General
Sec.
578.1 Applicability and scope.
578.5 Definitions.
578.10 Waivers.
24 CFR 577.405 Subpart B -- Assistance Provided
578.100 Types of assistance.
578.105 Acquisition/substantial rehabilitation advances.
578.110 Moderate rehabilitation grants.
578.112 New construction advances.
578.115 Funding for annual operating costs and supportive services
costs.
578.120 Technical assistance.
578.125 Limitations on use of assistance.
578.130 Matching requirements.
578.135 Assistance under other HUD programs.
24 CFR 577.405 Subpart C -- Comprehensive Housing Affordability
Strategy
578.150 Comprehensive housing affordability strategy.
24 CFR 577.405 Subpart D -- Application and Selection Process
578.200 Notice of fund availability.
578.205 Selection process.
578.210 Application requirements.
578.215 Ranking criteria.
578.220 Environmental review.
578.225 Final selection.
24 CFR 577.405 Subpart E -- Program Requirements
578.300 Grant agreement.
578.305 General operation.
578.310 Term of commitment and repayment of advance.
578.315 Relocation and acquisition.
578.320 Resident rent.
578.325 Project sites and number of residents.
578.330 Flood insurance.
578.335 Applicability of other Federal requirements.
24 CFR 577.405 Subpart F -- Administration
578.400 Obligation of funds, funding amendments, and deobligation.
578.405 Site change.
Authority: Sec. 426, Stewart B. McKinney Homeless Assistance Act
(42 U.S.C. 11386); sec. 7(d), Housing and Urban Development Act (42
U.S.C. 3535(d)).
Source: 54 FR 47043, Nov. 8, 1989, unless otherwise noted.
24 CFR 577.405 Subpart A -- General
24 CFR 578.1 Applicability and scope.
(a) General. The Supportive Housing Demonstration program contained
in Subtitle C of Title IV of the Stewart B. McKinney Homeless
Assistance Act is designed to develop innovative approaches for
providing supportive housing, especially to deinstitutionalized homeless
individuals, homeless families with children, and homeless individuals
with mental disabilities and other handicapped homeless persons. It is
designed to determine:
(1) The cost of acquisition, rehabilitation, acquisition and
rehabilitation, or leasing of existing structures for the provision of
supportive housing;
(2) The cost of operating such housing and providing supportive
services to the residents of such housing;
(3) The social, financial, and other advantages of such housing as a
means of assisting homeless individuals; and
(4) The lessons that the provision of supportive housing might have
for the design and implementation of housing programs that serve
homeless individuals and families with special needs, particularly
deinstitutionalized homeless individuals, homeless families with
children, and homeless individuals with mental disabilities and other
handicapped homeless persons. A central purpose of the Supportive
Housing Demonstration program is to provide supportive housing for
deinstitutionalized homeless individuals and other homeless individuals
with mental disabilities.
(b) The Supportive Housing Demonstration program consists of two
components: Permanent housing for handicapped homeless persons and
transitional housing. This part implements the program for permanent
housing for handicapped homeless persons. Part 577 implements the
transitional housing program.
24 CFR 578.5 Definitions.
As used in this part:
Applicant means the State in which permanent housing for handicapped
homeless persons is to be located. An applicant may be the state
housing finance agency (or other State agency) that customarily
implements housing programs for the State and that is identified by
statute to participate in housing programs in the State.
Comprehensive Housing Affordability Strategy (CHAS or housing
strategy). The housing strategy prepared by a jurisdiction and
submitted to HUD in accordance with 24 CFR part 91.
Date of initial occupancy means the date that the project is
initially occupied by a homeless person for whom assistance is provided
under this part.
Handicapped homeless person means a handicapped person who
(a) Is a homeless individual;
(b) Is currently not a homeless individual but who is at risk of
becoming a homeless individual; or
(c) Has been a resident of transitional housing assisted under the
Transitional Housing program, described in 24 CFR part 577.
This term may include a homeless family, if the head of the family
(or the spouse of the head of the family) is a handicapped homeless
person.
Handicapped or handicapped person means any individual having an
impairment that is expected to be of long-continued and indefinite
duration, is a substantial impediment to his or her ability to live
independently, and is of a nature that the ability to live independently
could be improved by a stable residential situation. This term
includes:
(a) An individual who is developmentally disabled, i.e., an
individual who has a severe chronic disability that:
(1) is attributable to a mental or physical impairment or combination
of mental and physical impairments;
(2) Is manifested before the person attains age 22;
(3) Is likely to continue indefinitely;
(4) Results in substantial function limitations in three or more of
the following areas of major life activity:
(i) Self-care,
(ii) Receptive and expressive language,
(iii) Learning,
(iv) Mobility,
(v) Self-direction,
(vi) Capacity for independent living, and
(vii) Economic self-sufficiency; and
(5) Reflects the person's need for a combination and sequence of
special, interdisciplinary, or generic care, treatment, or other
services that are of lifelong or extended duration and are individually
planned and coordinated.
(b) An individual who is chronically mentally ill, i.e., an
individual who has a severe and persistent mental or emotional
impairment that seriously limits his or her ability to live
independently (e.g., by limiting functional capacities relative to
primary aspects of daily living such as personal relations, living
arrangements, work, or recreation), and whose impairment could be
improved by more suitable housing conditions.
(c) A person whose sole impairment is alcoholism or drug addition
will not be considered to be handicapped under this part.
Homeless means:
(a) An individual or family that lacks a fixed, regular, and adequate
nighttime residence; or
(b) An individual or family that has a primary nighttime residence
that is:
(1) A supervised publicly or privately operated shelter designed to
provide temporary living accommodations (including welfare hotels,
congregate shelters, and transitional housing for the mentally ill);
(2) An institution that provides a temporary residence for
individuals intended to be institutionalized; or
(3) A public or private place not designed for, or ordinarily used
as, a regular sleeping accommodation for human beings.
This term does not include any individual imprisoned or otherwise
detained under an Act of the Congress or a State law.
Homeless family with children means a homeless family that includes
at least one parent or guardian and one child under the age of 18, a
homeless pregnant woman, and a homeless individual in the process of
securing legal custody of any person who has not attained the age of 18
years.
HUD means the Department of Housing and Urban Development.
Moderate rehabilitation means rehabilitation of a project that
involves costs of 75 percent or less of the value of the building before
rehabilitation. For projects of 15 or more units where rehabilitation
costs are less than 75 percent of the replacement cost of the building,
that project must meet the requirements of 24 CFR part 8.23(b).
Operating costs means expenses that a recipient incurs for:
(a) Administration (including staff salaries), maintenance, minor or
routine repair, security and rental of the housing;
(b) Utilities, fuel, furnishings, and equipment for the housing; and
(c) Relocation assistance under 578.315, including payments and
services.
Permanent housing for handicapped homeless persons or permanent
housing means a project assisted under this part:
(a) That provides community-based, long-term housing and appropriate
supportive services for not more than eight handicapped homeless persons
(unless waived by HUD) and that is carried out by a project sponsor;
and
(b) That has as its purpose, through providing housing and supportive
services, maximizing each resident's ability to live independently
within a permanent housing environment.
All or part of the supportive services may be provided directly by
the recipient or the project sponsor, or by arrangement with public or
private service providers.
Private nonprofit organization means a secular or religious
organization, no part of the net earnings of which may inure to the
benefit of any member, founder, contributor, or individual. The
organization must:
(a) Have a voluntary board;
(b)(1) Have a functioning accounting system that is operated in
accordance with generally accepted accounting principles, or
(2) Designate an entity that will maintain a functioning accounting
system for the organization in accordance with generally accepted
accounting principles; and
(c) Practice nondiscrimination in the provision of assistance under
the permanent housing program in accordance with the authorities
described in 578.335(a).
Project means one or more existing structures or incomplete
structures, or parts of one or more existing structures or incomplete
structures, owned or leased by the project sponsor (or by the recipient)
for use in connection with permanent housing for handicapped homeless
persons. The project must be:
(a) Homes designed soley for housing handicapped homeless persons, or
(b) Dwelling units in a rental apartment building, a condominium
project, or a cooperative project.
Project sponsor means a private nonprofit organization that an
authorized official of the applicant approves as financially
responsible, or a public housing agency (PHA). The project sponsor must
operate the permanent housing for handicapped homeless persons, and must
provide (or coordinate the provision of) supportive services to the
residents of such housing.
Recipient means the applicant that executes a grant agreement with
HUD. The recipient provides assistance to the project sponsor for the
operation of permanent housing for handicapped homeless persons and
facilitates the provision of necessary supportive services to the
residents of the permanent housing.
Rehabilitation means labor, materials, tools, and other costs of
improving structures to a level that meets or exceeds applicable State
and local government health and safety standards. Rehabilitation
includes repairs directed toward an accumulation of deferred
maintenance, replacement of principal fixtures and components of
existing structures, installation of security devices, improvement
through alterations or additions to or enhancement of existing
structures, including improvements to increase the efficient use of
energy in structures, and structural changes necessary to make the
structure accessible for persons with physical handicaps.
Rehabilitation does not include minor or routine repairs or cosmetic
repairs or improvements. All buildings of 15 or more units undergoing
rehabilitation must meet the accessibility requirements of section 504
of the Rehabilitation Act of 1973, as amended, as set forth in 24 CFR
8.23 (a) or (b).
State means any of the several States, the District of Columbia, the
Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa,
the Northern Mariana Islands, the Trust Territory of the Pacific
Islands, and any other territory or possession of the United States.
Substantial rehabilitation means rehabilitation of a project that
involves costs in excess of 75 percent of the value of the building
before rehabilitation. For projects of 15 or more units where
rehabilitation costs are 75 percent or more of the replacement cost of
the building, that project must meet the requirements of 24 CFR 8.23(a).
Supportive services means services provided to residents of permanent
housing for the purpose of maximizing each resident's ability to live
independently within a permanent housing environment. Supportive
services must be proposed by the applicant in its application and
approved by HUD; must address the special needs of the handicapped
homeless persons to be served by the project; and must assist in
accomplishing the purpose of permanent housing. Supportive services may
include:
(a) Medical and psychological counseling and supervision;
(b) Employment counseling;
(c) Nutritional counseling;
(d) Assistance in obtaining other Federal, State, and local
assistance available for residents of permanent housing facilities,
including mental health benefits; employment counseling; medical
assistance; Veterans' benefits; and income support assistance, such as
Supplemental Security Income benefits, Aid to Families with Dependent
Children, General Assistance, and Food Stamps; and
(e) Other services, such as child care, transportation, job
placement, and job training.
(54 FR 47043, Nov. 8, 1989, as amended at 56 FR 56129, Oct. 31, 1991)
24 CFR 578.10 Waivers.
The Secretary may waive any requirement of this part that is not
required by law, whenever it is determined that undue hardship will
result from applying the requirement, or where application of the
requirement would adversely affect the purposes of the permanent housing
for the handicapped homeless program. Each waiver will be in writing
and will be supported by documentation of the pertinent facts and
grounds. The Secretary periodically will publish notice of granted
waivers in the Federal Register.
(55 FR 34154, Aug. 21, 1990)
24 CFR 578.10 Subpart B -- Assistance Provided
24 CFR 578.100 Types of assistance.
(a) Types of assistance available. Five types of assistance are
available for permanent housing for handicapped homeless persons:
(1) Advances for acquisition or substantial rehabilitation;
(2) Advances for new construction (under limited circumstances);
(3) Grants for moderate rehabilitation;
(4) Grants for annual operating costs and supportive services costs
(up to two years); and
(5) Technical assistance.
(b) Eligibility for more than one type of assistance. Applicants may
be eligible for one or any combination of the types of assistance,
except that HUD will offer technical assistance only in connection with
other assistance under this part.
(c) Rehabilitation of leased property. Acquisition/substantial
rehabilitation advances and moderate rehabilitation grants are available
for the rehabilitation of leased property.
24 CFR 578.105 Acquisition/substantial rehabilitation advances.
(a) Use. HUD will advance sums to recipients to:
(1) Defray the cost of the acquisition, substantial rehabilitation,
or acquisition and substantial rehabilitation of existing structures
selected by the recipients for use in the provision of permanent housing
for handicapped homeless persons; or
(2) Repay any outstanding debt on a loan made to purchase existing
structures for use in the provision of permanent housing for handicapped
homeless persons.
(b) Amount. If an applicant meets the matching requirements of
578.130, the maximum advance for acquisition/substantial rehabilitation
available is the lower of:
(1) $200,000; or
(2) The total cost of the acquisition/substantial rehabilitation
minus the applicant's contribution toward the cost of the
acquisition/substantial rehabilitation.
(c) Terms of advance. Advances are interest-free and, if the
conditions described in 578.310 are met, are not subject to repayment.
The sale or disposition of a structure acquired or rehabilitated with an
advance is subject to the requirements of 578.310(e).
(d) Increased advances. In areas determined by HUD to have costs
that exceed the statutory limits of section 202 of the Housing Act of
1959 (12 U.S.C. 1701q) by at least 75 percent, advances of more than
$200,000 but not more than $400,000 may be available. (A list of these
geographic areas is included in the application package or is available
from HUD field offices.) All requirements with regard to matching funds
described in 578.130 are applicable to such increased advances.
(e) Repayment of outstanding debt. An applicant for an
acquisition/substantial rehabilitation advance to repay an outstanding
debt on a loan made to purchase an existing structure, as described in
paragraph (a)(2) of this section, must provide the following information
and documentation as a part of the application for the advance:
(1) A copy of the contract of sale;
(2) A copy of the loan agreement, mortgage agreement, or deed of
trust;
(3) Documentation showing the purpose of the loan;
(4) Documentation of the balance owed on the loan, mortgage, or deed
of trust; and
(5) Certification that the structure has not been assisted under this
part before the date of the application.
(f) Retroactive applicability. The provision regarding advances to
repay an outstanding debt on a loan made to purchase an existing
structure, contained in paragraph (e) of this section, is applicable to
awards of assistance made under this part on or after November 1, 1987.
(Approved by the Office of Management and Budget under OMB Control
Number 2502-0361)
24 CFR 578.110 Moderate rehabilitation grants.
(a) Use. HUD will make grants to recipients to defray the cost of
moderate rehabilitation of existing structures selected by the
recipients for use in the provision of permanent housing for handicapped
homeless persons.
(b) Amount. If an applicant meets the matching share requirements at
578.130, the maximum grant for moderate rehabilitation available is the
lower of:
(1) $200,000; or
(2) The total cost of the moderate rehabilitation minus the
applicant's contribution toward the cost of the moderate rehabilitation.
(c) Terms of the grant. The sale or disposition of a structure
rehabilitated with a grant under this section is subject to the
requirements of 578.310(e).
24 CFR 578.112 New construction advances.
(a) Use. HUD will advance funds to recipients to defray the cost of
construction of facilities for use in the provision of permanent housing
for handicapped persons, where HUD finds the following factors:
(1) The project involves the cooperation of a city and a State
university;
(2) The land has been donated to the applicant by a State university;
(3) The applicant proposes a permanent housing structure of at least
10,000 square feet; and
(4) The applicant proposes a model permanent housing project with a
comprehensive support system, including, health services, job
counseling, mental health services, and housing assistance and advocacy.
(b) Amount. If an applicant meets the matching share requirements at
578.130, the maximum advance for new construction available is the
lower of:
(1) $200,000; or
(2) The total cost of the new construction minus the applicants
contribution toward the cost of the new construction.
(c) Increased advances. In areas determined by HUD to have costs
that exceed the statutory limits of section 202 of the Housing Act of
1959 (12 U.S.C. 1701q) by at least 75 percent, advances of more than
$200,000 but not more than $400,000 may be available. (A list of these
geographic areas is included in the application package or is available
from HUD field offices.) All requirements with regard to matching funds
described in 578.130 are applicable to such increased advances.
24 CFR 578.115 Funding for annual operating costs and supportive
services costs.
(a) General. HUD will provide grants for annual operating costs and
supportive services costs of permanent housing for handicapped homeless
persons for a period not to exceed two years. Assistance for operating
costs and supportive services costs will be available for up to 50
percent of the total cost for the first year and for up to 25 percent of
the total cost for the second year.
(b) Operating costs. Grants for the costs associated with the
day-to-day operation of the permanent housing are available in
accordance with the provisions of paragraph (a) of this section. Such
costs include the expenses that a recipient incurs for the
administration (including staff salaries), maintenance, minor or routine
repair, security and rental of the housing; utilities, fuel,
furnishings and equipment for the housing; and relocation assistance
under 578.315, including payments and services.
(c) Supportive services costs. Grants for the costs associated with
providing supportive services to residents of permanent housing are
available in accordance with the provisions of paragraph (a) of this
section. Such costs include salaries paid to providers of supportive
services, the costs of conducting resident supportive services needs
assessments, and any other costs directly associated with providing such
services. Costs associated with supportive services do not include any
percentage of the costs described in paragraph (b) that are attributable
to the provision of supportive services.
(d) Assistance for incomplete structures. If an applicant seeks
assistance under this section for projects with incomplete structures,
the applicant must provide reasonable assurance of completion of
construction within nine months after notification of an award. Such
assistance will begin on the date of initial occupancy. Reasonable
assurance may be satisfied by submission, with the application for
assistance, of the following:
(1) Evidence that construction financing has been obtained; and
(2) A copy of the construction contract for the proposed structure
containing the terms and conditions with regard to cost and date of
completion.
(e) Commitment of amounts for operating costs and supportive services
costs. Upon approval of an application requesting assistance under
paragraphs (a) and (b) of this section, HUD will obligate amounts for a
period not to exceed two operating years commencing on the date of
initial occupancy. The total amount obligated will be equal to an
amount necessary for two years of operation, based on the recipient's
estimate of such costs for two years of operation, less the recipient's
percentage share of such costs. In each of the two years, HUD will make
assistance payments to the recipient from the amounts obligated. The
annual funding level will be subject to reduction under 578.400.
(Approved by the Office of Management and Budget under OMB Control
Number 2502-0361)
24 CFR 578.120 Technical assistance.
Technical assistance will be offered in connection with an award of
funds under 578.105, 578.110, 578.112, or 578.115. Technical
assistance is offered to recipients through HUD field offices in such
matters as the computation of resident rent under 578.320, compliance
with other Federal requirements under 578.335. HUD will also facilitate
the exchange of information among recipients and project sponsors to
learn from the experience of other participants in the programs.
24 CFR 578.125 Limitations on use of assistance.
(a) Funding of existing housing facilities and programs. (1) HUD
will not provide assistance under this part for the acquisition of
existing facilities or programs that currently serve homeless persons.
(2) HUD will provide assistance for rehabilitation, operating costs,
or supportive services costs for existing facilities or programs that
currently serve homeless persons only if the applicant proposes:
(i) A substantial increase in the number of handicapped homeless
persons for whom permanent housing will be provided (subject to the
limitation on the number of residents contained in 578.330);
(ii) A substantial increase in the level of supportive services to be
provided to homeless persons;
(iii) A substantial change in the use of existing facilities, e.g.,
if existing facilities for the homeless that are not currently used for
permanent housing (such as an emergency shelter for the homeless) will
be used to provide permanent housing, or if an applicant currently
providing permanent housing for one population of handicapped homeless
persons proposes to serve an additional or alternative segment of the
handicapped homeless population; or
(iv) Improvements to structures for permanent housing for handicapped
homeless persons necessary to bring the structures to a level that meets
applicable State and local government health and safety standards.
(b) Maintenance of effort. No assistance received under this part
(or any State or local government funds used to supplement this
assistance) may be used to replace funds provided in the State under any
State or local government assistance program, if the funds provided
under the State or local government assistance program were used to
assist handicapped persons, homeless individuals, or handicapped
homeless persons during the calendar year preceding the date of the
application, or were designated for such use through an official action
of the applicable governmental entity during the calendar year preceding
the date of the application.
(c) Primarily religious organizations -- (1) Provision of assistance.
(i) HUD will provide assistance to a recipient that will use a
primarily religious organization as a project sponsor, if the primarily
religious organization agrees to provide housing and supportive services
in a manner that is free from religious influence and in accordance with
the following principles:
(A) It will not discriminate against any employee or applicant for
employment on the basis of religion and will not limit employment or
give preference in employment to persons on the basis of religion;
(B) It will not discriminate against any person applying for housing
or supportive services on the basis of religion and will not limit such
housing or services or give preference to persons on the basis of
religion;
(C) It will provide no religious instruction or counseling, conduct
no religious worship or services, engage in no religious proselytizing,
and exert no other religious influence in the provision of housing and
supportive services.
(ii) HUD will provide assistance to a recipient that will use a
primarily religious organization as a project sponsor, only if the
assistance will not be used to acquire a structure to be owned by the
project sponsor or to rehabilitate a structure owned by the project
sponsor, except as described in paragraph (c)(2) of this section.
(2) Acquisition/substantial rehabilitation or moderate rehabilitation
of permanent housing in structures owned by primarily religious
organizations. The acquisition/substantial rehabilitation advance and
the moderate rehabilitation grant may be used to rehabilitate a
structure that is owned by a primarily religious organization, only if;
(i) The structure (or portion of the structure) that is to be
rehabilitated with HUD assistance has been leased to a wholly secular
private nonprofit organization that will serve as the project sponsor,
or to the recipient;
(ii) The HUD assistance will be provided to the project sponsor or to
the recipient to make the improvements, rather than to the primarily
religious organization;
(iii) The leased structure will be used exclusively for secular
purposes available to all persons regardless of religion;
(iv) The lease payments provided to the primarily religious
organization do not exceed the fair market rent of the structure without
the rehabilitation;
(v) The cost of improvements that benefit any portion of the
structure that is not used for the provision of permanent housing
assisted under this part will be allocated to and paid for by the
primarily religious organization; and
(vi) The primarily religious organization agrees that if the project
sponsor or the recipient does not retain the use of the leased premises
for wholly secular purposes for the useful life of the improvements, the
primarily religious organization will pay an amount equal to the
residual value of improvements to the project sponsor or recipient that
will remit the amount to HUD.
(3) Assistance to a wholly secular private nonprofit organization
established by a primarily religious organization. (i) If a primarily
religious organization is foreclosed from direct participation as a
project sponsor under the requirements set forth in paragraph (c)(2) of
this section, the primarily religious organization may establish a
wholly secular private nonprofit organization to serve as the project
sponsor under this part.
(A) The wholly secular organization must agree to provide housing and
supportive services in a manner that is free from religious influences
and in accordance with the principles set forth in paragraph (c)(1)(i)
of this section.
(B) The wholly secular organization may enter into a contract with
the primarily religious organization to provide supportive services for
the project. In such a case, the primarily religious organization must
agree in the contract to carry out is contractual responsibilities in a
manner free from religious influences and in accordance with the
principles set forth in paragraph (c)(1)(i) of this section.
(C) The acquisition/substantial rehabilitation advance and the
moderate rehabilitation grant are subject to the requirements of
paragraph (c)(2) of this section.
(ii) HUD will not require the primarily religious organization to
establish the wholly secular organization before the selection of the
application. In such a case, the applicant must name the wholly secular
organization as the project sponsor in the application. In determining
whether the wholly secular organization is financially responsible, the
applicant may consider the primarily religious organization's financial
responsibility and its commitment to provide appropriate resources to
the project sponsor upon its formation. The project sponsor's capacity
to provide housing and supportive services to handicapped homeless
persons may be used on the primarily religious organization's capacity
and its commitment to provide appropriate resources to the project
sponsor after its formation. The requirement with regard to site
control, described in 578.210(b)(11), may be satisfied if the applicant
demonstrates that the primarily religious organization has site control
and has a commitment to transfer control of the site to the recipient or
the project sponsor following selection. Since the wholly secular
organization will not be in existence at the time of the application, it
will be required to demonstrate that it meets the definition of a
private nonprofit organization, described in 578.5. If such an
application is selected for funding, the obligation of funds will be
conditioned upon the compliance with these requirements.
(d) Structures used for multiple purposes. Structures used to
provide permanent housing may also be used for other purposes. For
example, a structure may contain facilities for an emergency shelter as
well as permanent housing, may be used to provide supportive services to
the public at large, or may include commercial space. Under these
circumstances, however, the acquisition/substantial rehabilitation
advance and the moderate rehabilitation grant will be available only in
proportion to the use of the structure for permanent housing.
(e) Administrative costs. Up to five percent of any advance or grant
awarded under this part may be used for the purpose of paying costs of
administering the assistance.
24 CFR 578.130 Matching requirements.
(a) General. (1) The recipient must match the funding provided by
HUD for advances for acquisition/substantial rehabilitation and new
construction and for grants for moderate rehabilitation with an equal
amount of funds from non-Federal sources. Community Development Block
Grants and Community Services Block Grants are considered non-Federal
sources.
(2) The recipient must show that it has sources to pay the percentage
of operating costs or supportive services costs not funded by HUD in a
grant for operating costs or supportive services costs.
(3) The maximum amount of funds that HUD will provide is based on the
percentage of the respective costs of each category of assistance.
(4) No match is required for technical assistance.
(b) Requirements for ''in-kind'' contributions as matching share for
advances for acquisition/substantial rehabilitation or new construction
or for grants for moderate rehabilitation. HUD will include in the
matching calculation for advances for acquisition/substantial
rehabilitation or new construction or for grants for moderate
rehabilitation the following ''in-kind'' contributions:
(1) The time and services contributed by volunteers, as the value of
$5 an hour, to carry out the transitional housing program;
(2) The value of contributions of materials or contributions of
existing structures, or parts of structures, in the following manner:
(i) Contributions of materials and supplies;
(ii) A contribution of a fee ownership in a structure, to the extent
of the fair market value of the structure; and
(iii) A contribution of a leasehold interest in a structure, to the
extent of the fair rental value of the building.
(c) Maintenance of effort. State or local government funds used in
the matching contribution are subject to the maintenance of effort
requirements described at 578.125(b).
(d) Rental Income. Rental amounts paid by residents of permanent
housing for the handicapped homeless under 578.320 may be included in
the calculation of the recipient's percentage share of annual operating
costs.
(e) Salaries. HUD will include in the matching calculation for
advances for acquisition/substantial rehabilitation or new construction
or for grants for moderate rehabilitation salaries paid to staff from
non-Federal sources to carry out the program of the recipient.
24 CFR 578.135 Assistance under other HUD programs.
(a) Supplemental assistance. HUD will permit recipients to use any
assistance that may be awarded under the Supplemental Assistance for
Facilities to Assist the Homeless program (24 CFR part 579) in
conjunction with assistance awarded under this part.
(b) Ineligible projects. HUD will not assist a project under this
part if the project involves a structure that is assisted, or residents
of the structure will receive assistance, under the United States
Housing Act of 1937; section 202 of the Housing Act of 1959; section
221(d)(3) (BMIR) or section 236 of the National Housing Act; or section
101 of the Housing and Urban Development Act.
(c) HUD-owned properties. (1) HUD will make HUD-owned single family
properties in its inventory available to applicants or potential
applicants for acquisition grants to purchase for use as permanent
housing for handicapped homeless persons. To obtain these properties,
applicants may request a listing of available properties from the HUD
field office, Property Disposition Branch. If an applicant wishes to
purchase a property or properties, it must enter into a lease-option
agreement with HUD. Under the terms of the agreement, HUD will lease
the property to the applicant for up to six months for one dollar. The
lease-option agreement will state that the applicant may purchase the
property at a stated price during the lease period. Except as provided
in paragraph (c)(2) of this section, an applicant leasing property under
this section may not sublease or otherwise occupy the property until
after closing of the sale. During the lease period, applicants will be
responsible for all taxes, utilities, and maintenance, excluding hazard
insurance. Applicants demonstrating a lease-option agreement at the
time their application for assistance is filed will be regarded as
having site control of the property under 578.210(b). If the option is
not exercised, the lease-option agreement will expire at the end of six
months, and the property will be returned to HUD's inventory, unless an
extension of time is authorized by HUD.
(2) An applicant may be allowed to sublease the property to the
homeless while its application for assistance under this part is pending
if the applicant demonstrates to HUD's satisfaction that it has the
ability, in the event its application is not approved, to continue in a
lease arrangement with HUD beyond the six-month lease term under the
requirements of subpart E of 24 CFR part 291.
(54 FR 47043, Nov. 8, 1989, as amended at 56 FR 46961, Sept. 16,
1991)
24 CFR 578.135 Subpart C -- Comprehensive Housing Affordability Strategy
24 CFR 578.150 Comprehensive housing affordability strategy.
Assistance may not be made available under this part unless the
applicant has submitted certifications, by the official responsible for
submitting the Comprehensive Housing Affordability Strategy, that the
proposed activities are consistent with the housing strategy and that
the jurisdiction is following its HUD-approved CHAS.
(56 FR 56129, Oct. 31, 1991)
24 CFR 578.150 Subpart D -- Application and Selection Process
24 CFR 578.200 Notice of fund availability.
When funds are made available for assistance for permanent housing
for handicapped homeless persons, HUD will publish a notice of fund
availability in the Federal Register. The notice will:
(a) Give the location for obtaining application packages that provide
specific application requirements and guidance;
(b) Specify the time and the place for submitting completed
applications;
(c) State the amount of funding available under the notice;
(d) Indicate the weight or relative importance of the ranking
criteria contained in 578.215 as they will be applied to the funding
round announced in the notice; and
(e) Provide other appropriate program information and guidance.
24 CFR 578.205 Selection process.
The selection process for applications for assistance under this part
consists of the following stages;
(a) Application for assistance (see 578.210);
(b) Ranking applications (see 578.215);
(c) Final selection (see 578.225).
24 CFR 578.210 Application requirements.
(a) Form, time, and adequacy of the application. To be considered
for assistance under this part, applications for assistance must be
filed in the form prescribed by HUD under this section, must meet the
requirements of this part, and must be submitted within the time period
established by HUD in the notice of funds availability under 578.200.
(b) Minimum requirements. At a minimum, HUD will require
applications to contain:
(1) Project sponsor data, including identity, a description of past
experience, and information on eligibility to receive assistance and
financial responsibility. Where the project sponsor is a private
nonprofit organization, the applicant must demonstrate that the project
sponsor has been approved by an authorized official of the State as to
financial responsibility.
(2) The type or types of assistance requested and the amount of funds
requested for each type.
(3) A description of the proposed project, including information
regarding:
(i) The structure to be used, any proposed rehabilitation of the
structure and the estimated costs of the rehabilitation, and the value,
as determined by an appraisal, of the structure before rehabilitation if
rehabilitation assistance under 578.105 or 578.110 is requested or if
the fair market or fair rental value of the structure is to be used as a
source of matching funds;
(ii) The supportive services to be offered to the residents and the
method by which such services will be provided;
(iii) An estimated annual budget of operating costs and supportive
services costs for a two-year period.
(4) A description of the characteristics of the handicapped homeless
population that will occupy the permanent housing, the number of
individuals proposed to be served.
(5) An assessment of how the proposed project would meet the needs of
handicapped homeless persons in the State.
(6) A description of the public and private resources expected to be
made available to meet the matching fund requirements of 578.125.
(7) A certification from the State official responsible for
submitting the Comprehensive Housing Affordability Strategy for the
State, as described in 578.150, that the proposed project is consistent
with the housing strategy.
(8) An assurance satisfactory to HUD that the project will be
operated for not less than 10 years in accordance with this part.
(9) A letter of participation from an authorized official of the
applicant State containing assurances that the State will promptly
transmit assistance to the project sponsor and will facilitate the
provision of necessary supportive services to the residents of the
project.
(10) A designation of the State agency responsible for the provision
of services to handicapped persons that will assist the applicant in
fulfilling the State's responsibilities under this part.
(11) Evidence that demonstrates that the applicant or project sponsor
has control of the site involved (e.g., ownership, lease, option to
purchase or lease), or reasonable assurance that the applicant or
project sponsor will have control of the site not later than six months
after notification of an award of assistance. ''Reasonable assurances''
must be satisfied by identification of a suitable site and a
certification that the applicant or project sponsor is engaged in
negotiations or in other efforts for the purpose of gaining control of
the identified site, or other evidence satisfactory to HUD that the
applicant or project sponsor will gain control of the identified site.
(12) A written statement from the unit of general local government in
which the permanent housing is proposed to be located that the proposed
use of the structure and site is not inconsistent with any plan of the
local government that may have an effect on the use of the structure or
site. (This requirement is satisfied if the applicant demonstrates that
a written request was made to the unit of local government for the
statement and the statement has not been received within 30 days from
the request.)
(13) A written statement from the unit of general local government in
which the permanent housing is proposed to be located that the proposed
use of the site is permissible under applicable zoning ordinances and
regulations or other evidence that the use of the project site is
permissible under applicable zoning ordinances and regulations; or a
statement from the applicant describing the proposed actions necessary
to make the use of the site permissible under applicable zoning
ordinances and regulations, with evidence that there is a reasonable
basis to believe that the proposed zoning actions will be completed
successfully and within four months following submission of the
application.
(14) An assurance that the applicant as the State will assume all the
environmental review responsibility that would otherwise be performed by
HUD under 24 CFR part 50 as the responsible Federal official under the
National Environmental Policy Act of 1969 (NEPA) and related authorities
(see 578.220 for a full discussion of the environmental review
requirements for applicants under this part).
(15) Other certifications, information, or data as prescribed by HUD
in the application package.
(Approved by the Office of Management and Budget under OMB Control
Number 2506-0112)
(54 FR 47043, Nov. 8, 1989, as amended at 54 FR 52794, Dec. 22, 1989;
56 FR 56129, Oct. 31, 1991)
24 CFR 578.215 Ranking criteria.
(a) In general. Applications will be assigned a rating score and
placed in ranked order, based upon the criteria described in paragraph
(b) of this section.
(b) Criteria. HUD will award points and rank applications for
assistance based on the following criteria:
(1) Project sponsor capacity. HUD will consider the project
sponsor's relative ability to carry out activities under the program
within a reasonable time, and in a successful manner, after the
execution of the grant agreement with HUD. HUD will consider:
(i) The extent and quality of the project sponsor's past experience
in establishing and operating housing;
(ii) The extent and quality of the applicant's past experience in
providing or coordinating supportive services; and
(iii) The ability of the project sponsor's personnel to perform
administrative, managerial, and operational functions necessary to the
successful development and operation of permanent housing.
(2) Innovative quality of proposal. HUD will consider the innovative
quality of the proposal in providing permanent housing and supportive
services for handicapped homeless persons. HUD will consider the extent
to which the proposal uses a new or unusual approach to the provision of
housing and supportive services that maximizes each handicapped homeless
person's ability to live independently in the permanent housing
environment.
(3) Need for permanent housing in the area to be served. HUD will
consider the extent to which the applicant demonstrates that an unmet
need for the proposed permanent housing for handicapped homeless
persons, relative to the specific needs to be addressed, exists in the
area to be served.
(4) Delivery of supportive services. HUD will consider:
(i) The extent to which the quality and comprehensiveness of the
proposed supportive services are related to the goal of maximizing the
ability of residents to live more independently within a permanent
housing environment. Factors that indicate that ability include:
(A) Variety and flexibility of supportive services;
(B) Activities of residents outside the facility; and
(C) If appropriate, an employment assistance program.
(ii) The extent to which proposed supportive services are appropriate
to the unmet needs of the population to be served; and
(iii) The extent to which the applicant will use or coordinate with
other public or private entities to provide appropriate supportive
services to the residents of the housing.
(5) Matching. HUD will consider the extent to which the applicant
proposes to match the amount of assistance to be provided by HUD with
more than the required amount of non-Federal funds from other sources.
Matching requirements are discussed at 578.130.
(6) Cost effectiveness. HUD will consider the extent to which the
applicant's proposed costs in acquiring or rehabilitating housing under
the program, and in operating the housing and providing supportive
services are:
(i) Reasonable in relation to the rehabilitation performed, the
property or properties acquired, and the goods and services to be
provided; and
(ii) Effective in accomplishing the purposes of the project.
(7) Project quality. HUD will consider the extent to which the
proposed project will meet the needs of handicapped homeless persons in
the State, as described in the State's assessment of needs submitted
under 578.210(b)(5).
(8) Site control. HUD will consider the extent to which an applicant
has control of the site for the proposed project.
(9) Integration into the neighborhood. HUD will consider the extent
to which the proposed project is integrated into the neighborhood in
which it is, or is proposed to be, located.
24 CFR 578.220 Environmental review.
(a) Generally. (1) The environmental effects of each application
must be assessed in accordance with the provisions of the National
Environmental Policy Act of 1969 (NEPA) (42 U.S.C. 4321) and related
environmental laws and authorities listed in HUD's implementing
regulations in 24 CFR part 58.
(2) Environmental regulations provide for certain categorical
exclusions under NEPA and set conditions under which excluded activities
may be determined exempt from all environmental review requirements. In
cases where proposed assistance and matching contributions solely
involve operating costs for facilities or the provisions of supportive
services, and the structures and sites involved in the project meet the
program requirements of this part, these activities are categorically
excluded by regulation and may be determined fully exempt from
environmental review.
(b) Responsibility for review. (1) Applicants must assume
responsibility for environmental review, decisionmaking, and action for
each application for assistance, in accordance with the procedural
provisions of the NEPA and related environmental laws and authorities
defined in HUD's implementing regulations in 24 CFR part 58.
(2) An applicant must include in its application an assurance that
the applicant will assume all the environmental review responsibility
that would otherwise be performed by HUD as the responsible Federal
official under NEPA and related authorities listed in 24 CFR 58.5,
including acceptance of jurisdiction of the Federal courts.
(3) The assumption of legal responsibility by applicants does not
preclude the applicant's arranging for the conduct of technical reviews
by cooperating local governments having an established technical
capability, e.g., metropolitan cities in which the project is proposed
to be located. The applicant under such arrangements must independently
evaluate information submitted and assume responsibility for its
accuracy, scope, and content; meet legal requirements attached to the
Release of Funds by HUD; determine the completeness of the review;
meet any requirements for consultation; as applicable, under 24 CFR
58.5 authorities; and assure the completion of any mitigation measures
resulting from technical review or from State consultations. The
arrangements described in this paragraph are in addition to the ability
of the applicant to adopt relevant and adequate prior reviews conducted
by HUD or other governmental entity if the reviews meet the particular
requirements of the Federal environmental law or authority under which
they would be adopted, and only under certain conditions (e.g., a
determination that no environmentally significant changes have occurred
since the review was done).
(c) Timing of review process and restrictions on release of funds.
(1) An Applicant need not complete the review until a reasonable time
after HUD has approved the application. In such cases, the award is
subject to completion of the environmental responsibilities set out in
24 CFR part 58 within a reasonable time period after notification of the
award. (This provision does not preclude the applicant from enclosing
its environmental certification and Request for the Release of Funds
with its application.)
(2) Upon completion of the requirements in part 58, applicants must
certify the completion and submit a Request for Release of Funds. This
submission is not required in cases in which the applicant determines in
accordance with 24 CFR 58.34(a) (1)-(10) that its program components are
totally exempt.
(3) HUD will not release funds for a permanent housing project if the
recipient, project sponsor, or any other party commits permanent housing
funds (i.e., incurs any costs or expenditures to be paid or reimbursed
with such funds) before the grantee submits and HUD approves its Request
for Release of Funds (when such submission is required).
(d) Location of projects in floodplains. Applications for projects
that are to be acquired, rehabilitated, or assisted with permanent
housing funds and that are located in any 100-year floodplain, as
designated by the Federal Emergency Management Agency (FEMA), are
subject to the floodplain review requirements of Executive Order 11988,
Floodplain Management (May 24, 1977). Executive Order 11988 review, as
referenced under part 58, is to be performed during the environmental
review.
(Approved by the Office of Management and Budget under OMB Control
Number 2506-0112)
(54 FR 47043, Nov. 8, 1989, as amended at 54 FR 52794, Dec. 22, 1989)
24 CFR 578.225 Final selection.
(a) Selection for funding. In the final stage of the selection
process, the highest-ranked applications will be selected for funding in
accordance with their ranked order to the extent funds are available, as
determined under 578.215. After awards are announced, applicants may
contact HUD, with regard to applications not chosen for funding, for an
explanation.
(b) Ties between applicants. In the event of a tie between
applicants, HUD will use the quality of the proposal and the need for
the project in the area to determine which application should be
selected for funding.
(c) Procedural errors. If HUD makes a procedural error in a funding
competition that, when corrected, would result in awarding sufficient
points to warrant funding of an otherwise eligible applicant during that
competitive year, HUD may fund that applicant in the next funding
competition.
24 CFR 578.225 Subpart E -- Program Requirements
24 CFR 578.300 Grant agreement.
(a) General. The duty to provide permanent housing in accordance
with the requirements of this part will be incorporated in a grant
agreement executed by HUD and the recipient.
(b) Enforcement. HUD will enforce the obligations in the grant
agreement through such action as may be appropriate.
24 CFR 578.305 General operation.
Each recipient of assistance for permanent housing for handicapped
homeless persons must require the project sponsor to agree:
(a) General. To operate a project providing permanent housing for
handicapped homeless persons in accordance with this part.
(b) Housing. To provide housing that is in compliance with all State
and local housing codes, licensing requirements, and any other
requirements in the jurisdiction in which the housing is located
regarding the condition of the structure and the operation of the
housing.
(c) Ongoing assessment of supportive services. To conduct an ongoing
assessment of the supportive services required by the residents of the
project and make adjustments as appropriate.
(d) Residential supervision. To provide any residential supervision
determined by HUD as necessary to facilitate the adequate provision of
supportive services to the residents of the housing throughout the term
of the commitment to operate permanent housing. Residential supervision
may include the employment of a full- or part-time residential
supervisor with sufficient knowledge to provide, or to supervise the
provision of, supportive services to the residents of permanent housing.
(e) Records and reports. To keep any records and make any reports
that HUD may require.
(Approved by the Office of Management and Budget under OMB Control
number 2502-0361)
24 CFR 578.310 Term of commitment and repayment of advance.
(a) General. All projects assigned under this part must be operated
as permanent housing in accordance with this part for a term of at least
10 years from the date of initial occupancy.
(b) Repayment of advance. (1) The recipient of an
acquisition/substantial rehabilitation advance under 578.105 or a new
construction advance under 578.112 must repay the advance in the amount
prescribed under paragraph (b)(2) of this section and in accordance with
the terms prescribed by HUD.
(2)(i) The recipient must repay the full amount of the
acquisition/substantial rehabilitation advance or the new construction
advance if the project is used for permanent housing for less than 10
years following the date of initial occupancy. For each full year that
the project is used for permanent housing following the expiration of
this 10-year period, the amount that the recipient will be required to
pay will be reduced by one-tenth of the original advance. If the
project is used for permanent housing for 20 years following the date of
initial occupancy, the recipient will not be required to repay any
portion of the advance under this section.
(ii) The repayment provisions of paragraph (b)(2)(i) will not be
enforced if HUD determines that the project is no longer needed for use
as supportive housing and approves the use of such project for the
direct benefit of lower income persons.
(c) Successors. A recipient may select a new project sponsor to
operate the housing in accordance with the project sponsor's obligations
under this part. The successor-project sponsor must be approved by HUD
before operations of the project may be transferred.
(d) Eminent domain. A recipient of assistance under 578.105,
578.110, or 578.112 whose structure is taken by eminent domain during
the 20-year period following the initial date of occupancy must repay
the assistance provided under those sections, to the extent that funds
are available from the eminent domain proceeding.
(e) Prevention of undue benefits. (1) If assistance is provided for
a project under 578.105, 578.110, or 578.112, and the project is sold
or otherwise disposed of during the 20-year period following the date of
initial occupancy, the recipient must comply with such terms and
conditions as HUD may prescribe to prevent the recipient from unduly
benefiting from the sale or disposition.
(2) Paragraph (e)(1) of this section does not apply to sales or
dispositions that result in the continued use of the project for the
direct benefit of lower income persons or where all proceeds from the
sale or disposition are used to provide supportive housing.
24 CFR 578.315 Relocation and acquisition.
(a) Minimizing displacement. Consistent with the other goals and
objectives of this part, recipients and project sponsors must assure
that they have taken all reasonable steps to minimize the displacement
of persons (families, individuals, businesses, nonprofit organizations,
and farms) as a result of a project assisted under this part.
(b) Relocation assistance for displaced persons. A displaced person
(defined in paragraph (f)(1) of this section) must be provided
relocation assistance at the levels described in, and in accordance
with, 49 CFR part 24, which contains the government-wide regulations
implementing the Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970 (URA) (42 U.S.C. 4601-4655).
(c) Real property acquisition requirements. The acquisition of real
property for a project is subject to the URA and the requirements
described in 49 CFR part 24, subpart B.
(d) Responsibility of recipient. The recipient must assure that it
will comply with the URA, the regulations at 49 CFR part 24, and the
requirements of this section. The cost of assistance required by this
section may be paid from local public funds, funds provided in
accordance with this part, or funds available from other sources.
(e) Appeals. A person who disagrees with the recipient's
determination concerning a payment or other assistance required by this
section may file a written appeal of that determination with the
recipient. The appeal procedures to be followed are described in 49 CFR
24.10.
(f) Definitions -- (1) Displaced person. (i) The term ''displaced
person'' means a person (family, individual, business, nonprofit
organization, or farm) that moves from real property, or moves personal
property from real property, permanently and involuntarily, as a direct
result of acquisition, rehabilitation, or demolition for a project
assisted under this part. Permanent, involuntary moves for an assisted
project include:
(A) A permanent move from the real property (building or complex)
following notice by the recipient, project sponsor or property owner to
move permanently from the property, if the move occurs on or after the
date that the recipient submits to HUD an application for assistance
that is later approved and funded;
(B) A permanent move from the real property that occurs before the
submission of the application to HUD, if the recipient or HUD determines
that the displacement resulted directly from acquisition,
rehabilitation, or demolition for the project; or
(C) A permanent move from the real property by a tenant-occupant of a
dwelling unit that occurs after the execution of the agreement between
the recipient and HUD if:
(1) The tenant has not been provided a reasonable opportunity to
lease and occupy a suitable, decent, safe and sanitary dwelling in the
same building/complex following the completion of the project at a rent,
including estimated average utility costs, that does not exceed the
greater of:
(i) The tenant's rent and estimated average utility costs before the
initiation of negotiations, or
(ii) 30 percent of gross household income; or
(2) The tenant has been required to relocate temporarily but:
(i) The tenant is not offered payment for all reasonable
out-of-pocket expenses incurred in connection with the temporary
relocation or other conditions of the temporary relocation are not
reasonable, and
(ii) The tenant does not return to the building/complex; or
(3) The tenant is required to move to another unit in the same
building/complex but is not offered reimbursement for all reasonable
out-of-pocket expenses incurred in connection with the move.
(ii) A person does not qualify as a ''displaced person'' if:
(A) The person has been evicted for cause based upon a serious or
repeated violation of material terms of the lease or occupancy agreement
and HUD determines that the eviction was not undertaken for the purpose
of evading the obligation to provide relocation assistance;
(B) The person moved into the property after the submission of the
application and, before commencing occupancy, received written notice of
the expected displacement;
(C) The person is ineligible under 49 CFR 24.2(g)(2); or
(D) HUD determines that the person was not displaced as a direct
result of acquisition, rehabilitation, or demolition for the project.
(iii) The recipient or sponsor may, at any time, request a HUD
determination of whether a displacement is or would be covered by this
rule.
(2) Initiation of negotiations. For purposes of determining the type
of replacement housing payment to be made to a residential tenant
displaced as a direct result of privately undertaken rehabilitation,
demolition or acquisition of the real property, the term ''initiation of
negotiations'' means the execution of the agreement between the
recipient and HUD.
24 CFR 578.320 Resident rent.
Each homeless individual residing in permanent housing assisted under
this part must pay as rent an amount determined in accordance with
Section 3(a) of the United States Housing Act of 1937. Under section
3(a), each resident must pay as rent the highest of:
(a) 30 percent of the family's monthly adjusted income (adjustment
factors include the number of people in the family members, medical
expenses, and child care expenses);
(b) 10 percent of the family's monthly income; or
(c) If the family is receiving payments for welfare assistance from a
public agency and a part of the payments, adjusted in accordance with
the family's actual housing costs, is specifically designated by the
agency to meet the family's housing costs, the portion of the payments
that is designated. As part of the technical assistance under 578.120,
HUD will provide recipients and project sponsors with information and
assistance concerning the calculation of resident rent.
24 CFR 578.325 Project sites and number of residents.
(a) Project site. Each project must be either a home designed solely
for housing handicapped persons or dwelling units in a multi-family
housing project, condominium project, or cooperative project. Not more
than one home may be located on any one site, and no such home may be
located on a site contiguous to another site containing such a home.
(b) Neighborhood integration. All projects must be integrated into
the neighborhoods in which they are located. Indicators of neighborhood
integration may include:
(1) Indications of neighborhood acceptance;
(2) Plans for resident participation in neighborhood activities and
institutions;
(3) Integration of the project with community plans;
(4) Zoning compatibility;
(5) Provision of supportive services outside the project but within
the neighborhood.
(c) Number of residents. If the permanent housing consists of
dwelling units in a rental building, a condominium, or cooperative, the
project may not serve more than eight handicapped homeless persons, and
the homeless families of the eight homeless persons (if the head of the
family or the spouse of the head of the family is a handicapped homeless
person). If the permanent housing is a group home, the project may not
serve more than eight handicapped homeless persons, and may not serve
the families of the handicapped homeless persons.
(d) Waiver. HUD may waive, on a case-by-case basis, the limitation
on residents contained in paragraph (c) of this section if the applicant
demonstrates that local market conditions dictate the development of a
larger project, and that a larger project will achieve the neighborhood
integration objectives of the program within the community.
24 CFR 578.330 Flood insurance.
(a) The Flood Disaster Protection Act of 1973 (42 U.S.C. 4001-4128)
prohibits the approval of applications for assistance for acquisition or
construction (including rehabilitation) for projects/sites located in an
area identified by the Federal Emergency Management Agency (FEMA) as
having special flood hazards, unless:
(1) The community in which the area is situated is participating in
the National Flood Insurance Program (see 44 CFR parts 59 through 79),
or less than a year has passed since FEMA notification regarding such
hazards; and
(2) Flood insurance is obtained as a condition of approval of the
application.
(b) Applicants with projects/sites located in an area identified by
FEMA as having special flood hazards are responsible for assuring that
flood insurance under the National Flood Insurance Program is obtained
and maintained.
24 CFR 578.335 Applicability of other Federal requirements.
Use of assistance provided under this Part must comply with the
following additional requirements:
(a) Nondiscrimination and equal opportunity. The nondiscrimination
and equal opportunity requirements that apply to the permanent housing
program are discussed below. Notwithstanding the permissibility of
proposals that serve designated populations of handicapped homeless
persons, recipients and project sponsors serving a designated population
of handicapped homeless persons are required, within the designated
population, to comply with these requirements for nondiscrimination on
the basis of race, color, religion, sex, national origin, age, familiar
status, and handicap.
(1) The requirements of the Fair Housing Act (42 U.S.C. 3601-20) and
implementing regulations at 24 CFR part 100; Executive Order 11063
(Equal Opportunity in Housing) and implementing regulations at 24 CFR
part 107; and Title VI of the Civil Rights Act of 1964 (42 U.S.C.
2000d) (Nondiscrimination in Federally Assisted Programs) and
implementing regulations issued at 24 CFR part 1;
(2) The prohibitions against discrimination on the basis of age under
the Age Discrimination Act of 1975 (42 U.S.C. 6101-07) and implementing
regulations at 24 CFR part 146, and the prohibitions against
discrimination against handicapped individuals under section 504 of the
Rehabilitation Act of 1973 (29 U.S.C. 794) and implementing regulations
at 24 CFR part 8;
(3) The requirements of Executive Order 11246 (Equal Employment
Opportunity) and the regulations issued under the Order at 41 CFR
Chapter 60;
(4) The requirements of section 3 of the Housing and Urban
Development Act of 1968, 12 U.S.C. 1701u (Employment Opportunities for
Lower Income Persons in Connection with Assisted Projects); and
(5) The requirements of Executive Orders 11625, 12432, and 12138.
Consistent with HUD's responsibilities under these Orders, recipients
and project sponsors must make efforts to encourage the use of minority
and women's business enterprises in connection with funded activities.
(6) If the procedures that the recipient or project sponsor intends
to use to make known the availability of the permanent housing are
unlikely to reach persons of any particular race, color, religion, sex,
age, national origin, familial status, or handicap who may qualify for
admission to the housing, the recipient or project sponsor must
establish additional procedures that will ensure that interested persons
can obtain information concerning the existence and location of services
and facilities that are accessible to handicapped persons.
(b) Environmental. The National Environmental Policy Act of 1969,
the related authorities in 24 CFR part 58, and the Coastal Barrier
Resources Act of 1982 (16 U.S.C. 3601) are applicable to proposals under
this program.
(c) Applicability of OMB Circulars. The policies, guidelines, and
requirements of OMB Circular Nos. A-87 and A-102 (as set forth in 24
CFR part 85) apply to the acceptance and use of assistance under the
program by governmental entities, and OMB Circular Nos. A-110 and A-122
apply to the acceptance and use of assistance by private nonprofit
organizations, except the requirements of 24 CFR 85.24 are modified by
578.130, and the requirements of 24 CFR 85.31 are modified by 578.310.
(d) Lead-based paint. (1) The requirements of the Lead-Based Paint
Poisoning Prevent Act (42 U.S.C. 4821-4846) and implementing regulations
at 24 CFR part 35 (except as superseded in paragraph (d)(2) of this
section) apply to permanent housing assisted under this part.
(2)(i) This paragraph implements the provisions of section 302 of the
Lead-Based Paint Poisoning Prevention Act (42 U.S.C. 4822), by
establishing procedures to eliminate, as far as practicable, the hazards
of lead-based paint poisoning with respect to structures for which
assistance is provided under this part. This paragraph is promulgated
under 24 CFR 35.24(b)(4) and supersedes, with respect to the program,
the requirements prescribed in subpart C of 24 CFR part 35. The
requirements of this paragraph apply to structures that will be occupied
by children under seven years of age.
(ii) The following definitions apply to this paragraph (d):
Applicable surface means all intact and non-intact painted interior
and exterior surfaces of a residential structure.
Chewable surface means all chewable protruding painted surfaces up to
five feet from the floor or ground, which are readily accessible to
children under seven years of age, e.g., protruding corners, windowsills
and frames, doors and frames, and other protruding woodwork.
Defective paint surfaces means paint on applicable surfaces that is
cracking, scaling, chipping, peeling, or loose.
Elevated blood lead level or EBL means excessive absorption of lead:
that is, a confirmed concentration of lead in whole blood of 25 ug/dl
(micrograms of lead per deciliter of whole blood) or greater.
Lead-based paint surface means a paint surface, whether or not
defective, identified as having a lead content greater than or equal to
1 mg/cm.
(iii) In the case of a structure constructed before 1978 or
substantially rehabilitated prior to 1978, the applicant must inspect
the structure for defective paint surfaces before it submits an
application. Recipients must inspect assisted structures at least
annually during the term of their operating commitment to HUD. If
defective paint surfaces are found, treatment in accordance with 24 CFR
35.24(b)(2)(ii) is required. Correction of defective surfaces found
during the initial inspection must be completed before initial occupancy
of the project. Correction of defective paint conditions discovered at
periodic inspection must be completed within 30 days of their discovery.
When weather conditions prevent completion of repainting of exterior
surfaces within the 30-day period, repainting may be delayed, but
covering or removal of the defective paint must be completed within the
prescribed period.
(iv) In the case of a structure constructed before 1978 or
substantially rehabilitated prior to 1978, if the recipient is presented
with test results that indicate that a child under the age of seven
years occupies the structure and has an elevated blood lead level (EBL),
the recipient must cause the unit to be tested for lead-based paint on
chewable surfaces. Testing must be conducted by a State or local health
or housing agency, by an inspector certified or regulated by a State or
local health or housing agency, or an organization recognized by HUD.
Lead content must be tested by using an X-ray florescence analyzer (XRF)
or other method approved by HUD. Test readings of 1 mg/cm or higher
using an XRF shall be considered positive for presence of lead-based
paint. Where lead-based paint on chewable surfaces is identified,
covering or removal of the paint surface in accordance with 24 CFR
35.24(b)(2)(ii) is required.
(v) In lieu of the procedures set forth in the preceding clause, the
recipient may, at its discretion, abate all interior and exterior
chewable surfaces in accordance with the methods set out at 24 CFR
35.24(b)(2)(ii).
(vi) The recipient must take appropriate action to protect tenants
from hazards associated with abatement procedures.
(vii) The recipient must keep a copy of each inspection report for at
least three years. If a unit requires testing, or treatment of chewable
surfaces based on the testing, the recipient must keep the test results
and, if applicable, the certification of treatment indefinitely. The
records must indicate which chewable surfaces in the units have been
tested or treated. If records establish that certain chewable surfaces
were tested, or tested and treated, in accordance with the standards
prescribed in this section, these surfaces do not have to be tested or
treated at any subsequent time.
(3) Applicants and recipients under this part may require project
sponsors to comply with some or all of the requirements of this
paragraph (d). The applicant or recipient, however, must ensure that
the program sponsor carries out all requirements in accordance with the
paragraph, and must retain ultimate responsibility for complying with
the requirements of this paragraph.
(e) Conflicts of interest. In addition to conflict of interest
requirements in OMB Circulars A-102 and 24 CFR part 85, no person who is
an employee, agent, consultant, officer, or elected or appointed
official of the recipient, or the project sponsor, that receives
assistance under the program and who exercises or has exercised any
functions or responsibilities with respect to assisted activities, or
who is in a position to participate in a decisionmaking process or gain
inside information with regard to such activities, may obtain a personal
or financial interest or benefit from the activity, or have an interest
in any contract, subcontract, or agreement with respect thereto, or the
proceeds thereunder, either for himself or herself or for those with
whom he or she has family or business ties, during his or her tenure or
for one year thereafter.
(f) Use of debarred, suspended, or ineligible contractors. The
provisions of 24 CFR part 24 apply to the employment, engagement of
services, awarding of contracts, or funding of any contractors or
subcontractors during any period of debarment, suspension, or placement
in ineligibility status.
(g) Audit. The financial management systems used by recipients under
this program must provide for audits in accordance with 24 CFR part 44.
Project sponsors are subject to the audit requirements of OMB Circular
A-110. HUD may perform or require additional audits as it finds
necessary or appropriate.
(h) Davis-Bacon Act. The provisions of the Davis-Bacon Act (40
U.S.C. 276a -- 276a-5 do not apply to projects assisted under this part.
(i) Drug and alcohol-free facilities. Section 402 of the Stewart B.
McKinney Homeless Assistance Amendments Act of 1988 requires grantees,
recipients, and project sponsors of projects assisted under this part to
administer, in good faith, a policy designed to ensure that the homeless
facility is free from the illegal use, possession, or distribution of
drugs or alcohol by its beneficiaries. Recipients are also subject to
the requirements of sections 5151-5160 of the Drug-Free Workplace Act of
1988 and HUD's implementing regulations at 24 CFR part 24.
24 CFR 578.335 Subpart F -- Administration
24 CFR 578.400 Obligation of funds, funding amendments, and
deobligation.
(a) Obligation of funds. When HUD selects an application for funding
and notifies the recipient, it will obligate funds to cover the amount
of the approved assistance under subpart B of this part.
(b) Increases. After the initial obligation of funds, HUD will not
make any upward revisions to the amount obligated for any approved
funding.
(c) Deobligaton. (1) HUD may deobligate amounts for the
acquisition/substantial rehabilitation advance, moderate rehabilitation
grant, or new construction advance:
(i) If the actual total costs of acquisition/substantial
rehabilitation, moderate rehabilitation, or new constructon are less
than the total cost anticipated in the application, or
(ii) If proposed activities for which funding was approved are not
begun or completed within a reasonable time after selection.
(2) (i) HUD may deobligate the amounts for annual operating costs or
supportive services costs for the year following the first year of
operation, based on a revision to the recipient's budget as originally
approved. Additionally, if a recipient's operations generate a
substantial amount of resident rent (see 578.320), HUD may adjust the
operating costs allowed under the grant agreement downward, to the
extent of the rent received in excess of that anticipated and budgeted
in the application.
(ii) HUD may deobligate the amounts for annual operating costs or
supportive services costs if the proposed permanent housing operations
are not begun within a reasonable time following selection or carried
out expeditiously.
(3) The grant agreement may set forth in detail other circumstances
under which funds may be deobligated, and other sanctions may be
imposed.
(4) HUD may:
(i) Readvertise the availability of funds that have been deobligated
under this section in a notice of fund availability under 578.200, or
(ii) Reconsider applications that were submitted in response to the
most recently published notice of fund availability and select
applications for funding with the deobligated funds. Such selections
will be made in accordance with subpart D of this part.
(d) Site control. HUD will deobligate any award for assistance if
the recipient does not have control of a suitable site within one year
after notification of an award.
24 CFR 578.405 Site change.
(a) General. A recipient may obtain ownership or control of a
suitable site different from the one specified in its application.
Retention of an assistance award is subject to the new site's meeting
all requirements under this part for suitable sites.
(b) Increased costs. If the acquisition/substantial rehabilitation
or moderate rehabilitation costs for the substitute site are greater
than the amount of the advance or grant awarded for the site specified
in the application, the recipient must provide for all additional costs.
If the recipient is unable to demonstrate to HUD that it is able to
provide for the difference in costs, HUD may deobligate the award of
assistance.
(c) Applicability. This section is applicable to awards of
assistance made under this part on or after November 1, 1987.
24 CFR 578.405 PART 579 -- SUPPLEMENTAL ASSISTANCE FOR FACILITIES TO ASSIST THE HOMELESS
24 CFR 578.405 Subpart A -- General
Sec.
579.1 Applicability and scope.
579.5 Definitions.
579.10 Waivers.
24 CFR 578.405 Subpart B -- Assistance Provided
579.100 Comprehensive assistance.
579.105 Assistance in excess of ESG and SHD program funding.
579.110 Limitations on use of assistance.
579.115 Leveraging.
24 CFR 578.405 Subpart C -- Comprehensive Housing Affordability
Strategy
579.150 Comprehensive housing affordability strategy.
24 CFR 578.405 Subpart D -- Application and Selection Process
579.200 Notice of fund availability.
579.205 Selection process.
579.210 Application requirements.
579.215 Ranking criteria.
579.220 Environmental review.
579.225 Final selection.
24 CFR 578.405 Subpart E -- Program Requirements
579.300 Grant agreement.
579.305 General operation.
579.310 Term of commitment and repayment of advance.
579.315 Relocation and acquisition.
579.320 Flood insurance.
579.325 Applicability of other Federal requirements.
24 CFR 578.405 Subpart F -- Administration
579.400 Obligation of funds, funding amendments, and deobligation.
579.405 Site change.
Authority: Sec. 485 of the Stewart B. McKinney Homeless Assistance
Amendments Act of 1988 (42 U.S.C. 11301 note); Sec. 7(d) of the Housing
and Urban Development Act (42 U.S.C. 3535(d)).
Source: 54 FR 46817, Nov. 7, 1989, unless otherwise noted.
24 CFR 578.405 Subpart A -- General
24 CFR 579.1 Applicability and scope.
The Supplemental Assistance for Facilities to Assist the Homeless
program (SAFAH), contained in subtitle D of title IV of the Stewart B.
McKinney Homeless Assistance Act, is designed to provide:
(a) Comprehensive assistance for particularly innovative programs
for, or alternative methods of, meeting the immediate and long-term
needs of homeless individuals and families by assisting:
(1) The purchase, lease, renovation, operation, or conversation of
facilities to assist the homeless; or
(2) The provision of supportive services for the homeless; or
(b) Assistance to cover the costs in excess of assistance provided
under the Emergency Shelter Grants program (24 CFR part 576) and the
Supportive Housing Demonstration program (24 CFR parts 577 and 578) that
are required:
(1) To meet the needs of homeless families with children, elderly
homeless individuals, or handicapped homeless persons;
(2) To facilitate the transfer and use of public buildings to assist
homeless individuals and families; or
(3) To provide supportive services for the homeless.
24 CFR 579.5 Definitions.
Applicant means a State, metropolitan city, urban county,
governmental entity, tribe, or private nonprofit organization that
submits an application for assistance under this part, or any eligible
applicant under the ESG program (part 576) or SHD program (parts 577
(transitional housing) and 578 (permanent housing for handicapped
homeless persons)). Governmental entities include those that have
general governmental powers (such as a city or county), as well as those
that have limited or special powers (such as a public housing agency or
a state housing finance agency).
Comprehensive Housing Affordability Strategy (CHAS or housing
strategy). The housing strategy prepared by a jurisdiction and
submitted to HUD in accordance with 24 CFR part 91.
Conversion means a change in the use of a building to an emergency
shelter for the homeless under part 576, transitional housing under part
577, or permanent housing for handicapped homeless persons under part
578, where the cost of conversion and any rehabilitation costs exceed 75
percent of the value of the building before conversion.
Date of initial occupancy means the date that the project is
initially used as a facility to assist the homeless for which assistance
is provided under this part or under parts 576, 577, or 579.
Elderly homeless individual means a homeless individual who is 62
years of age or older. This term includes a homeless family, if the
head of the family (or the spouse of the head of the family) is an
elderly homeless individual.
Emergency Shelter Grants program or ESG program means the homeless
assistance program established by subtitle B of title IV of the McKinney
Act and described in 24 CFR part 576, or part C of the Homeless Housing
Act of 1986 and described in 24 CFR part 575.
ESG formula city or county means a metropolitan city or urban county
that is eligible to receive a formula allocation under the Emergency
Shelter Grants program.
Facilities designed primarily to benefit homeless elderly individuals
and homeless families with children means facilities to assist the
homeless, in which more than 50 percent of the homeless to be served are
either elderly homeless individuals or homeless families with children.
Handicapped homeless person means a handicapped person who:
(a) Is a homeless individual;
(b) Is currently not a homeless individual but who is at risk of
becoming a homeless individual; or
(c) Has been a resident of transitional housing assisted under the
Transitional Housing program, described in 24 CFR part 577.
This term may include a homeless family, if the head of the family
(or the spouse of the head of the family) is a handicapped homeless
person.
HHS means the Department of Health and Human Services.
Homeless means:
(a) An individual or family that lacks a fixed, regular, and adequate
nighttime residence; or
(b) An individual or family that has a primary nighttime residence
that is:
(1) A supervised publicly or privately operated shelter designed to
provide temporary living accommodations (including welfare hotels,
congregate shelters, and transitional housing for the mental ill);
(2) An institution that provides a temporary residence for
individuals intended to be institutionalized; or
(3) A public or private place not designed for, or ordinarily used
as, a regular sleeping accommodation for human beings.
This term does not include any individual imprisoned or otherwise
detained under an Act of the Congress or a State law.
Homeless family with children means a homeless family that includes
at least one parent or guardian and one child under the age of 18, a
homeless pregnant woman, and a homeless individual in the process of
securing legal custody of any individual who has not attained the age of
18.
HUD means the Department of Housing and Urban Development.
Major rehabilitation means the same as substantial rehabilitation.
McKinney Act means the Stewart B. McKinney Homeless Assistance Act,
as amended, generally titles I through V (42 U.S.C. 11301-11412).
Metropolitan city means a city that is classified as a metropolitan
city under section 102(a)(4) of the Housing and Community Development
Act of 1974. In general, metropolitan cities are those cities that are
eligible for an entitlement grant under 24 CFR part 570, subpart D.
Moderate rehabilitation means rehabilitation of a project that
involves costs of 75 percent or less of the value of the building before
rehabilitation. For projects of 15 or more units where rehabilitation
costs are less than 75 percent of the replacement cost of the building,
that project must meet the requirements of 24 CFR part 8.23(b). As used
in this part, moderate rehabilitation has the same meaning as renovation
in the ESG program.
Operating costs means expenses that a recipient incurs for:
(a) The administration (including staff salaries), maintenance, minor
or routine repair, security and rental of the housing;
(b) Utilities, fuel, furnishings, and equipment for the housing; and
(c) Relocation assistance under 579.315, including payments and
services.
Outpatient health services means:
(a) Outpatient health care (including on-site health screening and
evaluation, diagnostic services, health status monitoring, medication
dispensing and monitoring, and referral and follow-up for health
services);
(b) Outpatient mental health services (including mental health
screening and diagnosis, evaluation of treatment needs, prescription and
medication management, individual and group counseling, and referral and
follow-up);
(c) Case management services (including coordination with existing
services and referral and tracking of client progress).
Private nonprofit organization means a secular or religious
organization, no part of the net earnings of which may inure to the
benefit of any member, founder, contributor, or individual. The
organization must:
(a) Have a voluntary board;
(b) (1) Have a functioning accounting system that is operated in
accordance with generally accepted accounting principles, or
(2) Designate an entity that will maintain a functioning accounting
system for the organization in accordance with generally accepted
accounting principles; and
(c) Practice nondiscrimination in the provision of assistance under
this part in accordance with the authorities described in 579.325(a).
Project means:
(a) Facilities to assist the homeless; or
(b) Any activities eligible under this Part that the applicant
proposes in its application and HUD approves for funding under this
Part.
Recipient means an applicant HUD approves as to financial
responsibility and that executes a grant agreement with HUD for
assistance under this Part.
Rehabilitation means labor, materials, tools, and other costs of
improving structures to a level that meets or exceeds applicable State
and local government health and safety standards. Rehabilitation
includes repairs directed toward an accumulation of deferred
maintenance, replacement of principal fixtures and components of
existing structures, installation of security devices, improvement
through alterations or additions to or enhancement of existing
structures, including improvements to increase the efficient use of
energy in structures, and structural changes necessary to make the
structure accessible for persons with physical handicaps.
Rehabilitation does not include minor or routine repairs or cosmetic
repairs or improvements. All buildings of 15 or more units undergoing
rehabilitation must meet the accessibility requirements of section 504
of the Rehabilitation Act of 1973, as amended, as set forth in 24 CFR
8.23(a) or (b).
Renovation means the same as moderate rehabilitation.
SAFAH means the program of Supplemental Assistance for Facilities to
Assist the Homeless established by subtitle D of title IV of the
McKinney Act, described in this part.
State means any of the several States, the District of Columbia, the
Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa,
the Northern Mariana Islands, the Trust Territory of the Pacific
Islands, and any other territory or possession of the United States.
Substantial rehabilitation means rehabilitation of a project that
involves costs in excess of 75 percent of the value of the building
before rehabilitation. For projects of 15 or more units where
rehabilitation costs are 75 percent or more of the replacement cost of
the building, that project must meet the requirements of 24 CFR 8.23(a).
As used in this part, substantial rehabilitation has the same meaning as
major rehabilitation in the ESG program.
Supportive Housing Demonstration program or SHD program means the
homeless assistance program established by subtitle C of title IV of the
McKinney Act. This term includes transitional housing and permanent
housing for handicapped homeless.
Supportive services includes:
(a) Food;
(b) Child care;
(c) Assistance in obtaining permanent housing;
(d) Outpatient health service;
(e) Employment counseling;
(f) Nutritional counseling;
(g) Security arrangements necessary for the protection of residents
of facilities to assist the homeless;
(h) Assistance in obtaining other Federal, State, and local
assistance available to the homeless, including mental health benefits;
employment counseling; medical assistance; Veterans' benefits; and
income support assistance, such as Supplemental Security Income
benefits, Aid to Families with Dependent Children, General Assistance,
and Food Stamps; and
(i) Other services proposed by the applicant in its application and
approved by HUD, that are essential for achieving or maintaining
independent living and that address the needs of the homeless to be
served. These services may include, among other things, drug and
alcohol abuse programs and job training. Supportive services do not
include major medical equipment.
Tribe means an Indian tribe, band, group or nation, including Alaskan
Indians, Aleuts, and Eskimos, and any Alaska Native Village, of the
United States, considered an eligible recipient under the Indian Self
Determination and Education Assistance Act (Pub. L. 93-638) or under
the State and Local Fiscal Assistance Act of 1972 (Pub. L. 92-512).
Urban county means a county that is classified as an urban county
under section 102(a)(6) of the Housing and Community Development Act of
1974. In general, urban counties are those counties that are eligible
for an entitlement grant under 24 CFR part 570, subpart D.
(54 FR 46817, Nov. 7, 1989, as amended at 56 FR 56129, Oct. 31, 1991)
24 CFR 579.10 Waivers.
The Secretary may waive any requirement of this part that is not
required by law, whenever it is determined that undue hardship will
result from applying the requirement, or where application of the
requirement would adversely affect the purposes of the SAFAH program.
Each waiver will be in writing and will be supported by documentation of
the pertinent facts and grounds. The Secretary periodically will
publish notice of granted waivers in the Federal Register.
(55 FR 34155, Aug. 21, 1990)
24 CFR 579.10 Subpart B -- Assistance Provided
24 CFR 579.100 Comprehensive assistance.
(a) General. HUD will provide comprehensive assistance for
particularly innovative programs for, or alternative methods of, meeting
the immediate and long-term needs of homeless individuals and families.
The purpose of comprehensive assistance is to stimulate the development
and implementation of innovative, community-based, compehensive efforts
to respond to the problems of the homeless.
(b) Advances. HUD will advance sums to recipients to defray the
costs of the acquisition, lease, substantial rehabilitation, or
conversion of existing structures selected by the recipients for use as
facilities to assist the homeless. Advances are interest-free and, if
the conditions described in 579.310 are met, are not subject to
repayment. The sale or disposition of facilities purchased, leased,
substantially rehabilitated, or converted with an advance is subject to
the requirements of 579.310(d).
(c) Grants for moderate rehabilitation. HUD will make grants to
recipients to defray the cost of moderate rehabilitation of existing
structures selected by the recipients for use as facilities to assist
the homeless. The sale or disposition of facilities rehabilitated with
a grant under this paragraph is subject to the requirements of
579.310(d).
(d) Grants for supportive services. HUD will make grants to
recipients to defray the cost of providing supportive services,
described in the applications and approved by HUD, for the homeless.
(e) Grants for operating costs. HUD will make grants to recipients
to defray the cost of operating facilities to assist the homeless.
24 CFR 579.105 Assistance in excess of ESG and SHD program funding.
(a) General. HUD will provide assistance to cover costs in excess of
assistance provided under the ESG (part 576) and SHD (parts 577 and 578)
programs that are required.
(1) To meet the special needs of homeless families with children,
elderly homeless individuals, or handicapped homeless persons;
(2) To facilitate the transfer and utilization of public buildings to
assist homeless individuals and families; or
(3) To provide supportive services for the homeless.
(b) Eligible projects. Assistance under this section may only be
made available in connection with a project that has been approved for,
or has received, funding under the ESG or SHD program. Such
applications will be evaluated and ranked under the selection criteria
in 579.215, without regard to their ranking in the ESG or SHD program.
(c) Advances. HUD will advance sums to recipients to defray the
costs of the acquisition, lease, substantial rehabilitation, or
conversion of existing structures selected by the recipients for use as
facilities to assist the homeless. Advances are interest-free and, if
the conditions described in 579.310 are met, are not subject to
repayment. The sale or disposition of facilities purchased, leased,
substantially rehabilitated, or converted with an advance is subject to
the requirements of 579.310(d).
(d) Grants for moderate rehabilitation. HUD will make grants to
recipients to defray the cost of moderate rehabilitation of existing
structures selected by the recipients for use as facilities to assist
the homeless. The sale or disposition of facilities rehabilitated with
a grant under this paragraph is subject to the requirements of
579.310(d).
(e) Grants for supportive services. HUD will make grants to
recipients to defray the cost of providing supportive services,
described in the applications and approved by HUD, for the homeless.
(f) Other assistance. HUD will make grants to recipients for any
other type of assistance available under the ESG and SHD programs.
24 CFR 579.110 Limitations on use of assistance.
(a) Funding of existing facilities and programs. (1) HUD will not
provide assistance under this part for acquisition of existing
facilities or programs that currently serve homeless persons.
(2) HUD will provide comprehensive assistance to existing facilities
or programs under this part only if the applicant proposes:
(i) A substantial increase in the number of homeless persons for whom
housing will be provided or a substantial increase in the level of
supportive services to be provided;
(ii) A substantial change in the use of existing facilities, e.g., if
existing facilities for the homeless currently used for one type of
project (such as an emergency shelter) will be used for a different type
of project (such as transitional housing) where it can be shown a need
for the current type of project no longer exists, or if an applicant
currently providing a program for one population of homeless persons
proposes to serve an additional or alternative segment of the homeless
population.
(3) HUD will provide assistance in excess of ESG or SHD to existing
facilities or programs under this part only if the applicant proposes:
(i) A substantial increase in the number of homeless persons for whom
housing will be provided or a substantial increase in the level of
supportive services to be provided;
(ii) A substantial change in the use of existing facilities, e.g., if
existing facilities for the homeless currently used for one type of
project (such as an emergency shelter) will be used for a different type
of project (such as transitional housing) where it can be shown a need
for the current type of project no longer exists, or if an applicant
currently providing a program for one population of homeless persons
proposes to serve an additional or alternative segment of the homeless
population; or
(iii) Improvements to existing structures necessary to bring the
structures to a level that meets applicable State and local government
health and safety standards.
(b) Maintenance of effort. No assistance received under this part
may be used to replace non-Federal resources with respect to any
project.
(c) Primarily religious organizations -- (1) Provision of assistance.
(i) HUD will provide assistance to a recipient that is a primarily
religious organization if the organization agrees to provide housing and
supportive services in a manner that is free from religious influences
and in accordance with the following principles:
(A) It will not discriminate against any employee or applicant for
employment on the basis of religion and will not limit employment or
give preference in employment to persons on the basis of religion;
(B) It will not discriminate against any person applying for housing
or supportive services on the basis of religion and will not limit such
housing or services or give preference to persons on the basis of
religion;
(C) It will provide no religious instruction or counseling, conduct
no religious worship or services, engage in no religious proselytizing,
and exert no other religious influence in the provision of such public
services.
(ii) HUD will provide assistance to a recipient that is a primarily
religious organization if the assistance will not be used by the
organization to acquire a structure or to convert or rehabilitate a
structure owned by the organization, except as described in paragraph
(c)(2) of this section.
(2) Acquisition/substantial rehabilitation or moderate rehabilitation
of structures owned by a primarily religious organization. An
acquisition/substantial rehabilitation advance or a moderate
rehabilitation grant may be used to convert or rehabilitate a structure
owned by a primarily religious organization, if the following conditions
are met:
(i) The structure (or portion of the structure) that is to be
converted or rehabilitated with HUD assistance has been leased to a
recipient that is an existing or newly established wholly secular
organization (which may be established by the primarily religious
organization under the provisions of paragraph (c)(3) of this section);
(ii) The HUD assistance is provided to the wholly secular
organization (and not the primarily religious organization) to make the
improvements;
(iii) The leased structure will be used exclusively for secular
purposes available to all persons regardless of religion;
(iv) The lease payments paid to the primarily religious organization
do not exceed the fair market rent of the structure before the
rehabilitation was done;
(v) The portion of the cost of any improvements that benefit any
unleased portion of the structure will be allocated to, and paid for by,
the primarily religious organization;
(vi) The primarily religious organization agrees that, if the
recipient does not retain the use of the leased premises for wholly
secular purposes for the useful life of the improvements, the primarily
religious organization will pay an amount equal to the residual value of
the improvements to the wholly secular organization, and the wholly
secular organization will remit the amount to HUD.
(3) Assistance to a wholly secular private nonprofit organization
established by a primarily religious organization. (i) A primarily
religious organization may establish a wholly secular private nonprofit
organization to serve as a recipient. The wholly secular organization
may be eligible to receive all forms of assistance available under this
part.
(A) The wholly secular organization must agree to provide housing and
supportive services in a manner that is free from religious influences
and in accordance with the principles set forth in paragraph (c)(1)(i)
of this section.
(B) The wholly secular organization may enter into a contract with
the primarily religious organization to provide supportive services for
the project. In such a case, the primarily religious organization must
agree in the contract to carry out its contractual responsibilities in a
manner free from religious influences and in accordance with the
principles set forth in paragraph (c)(1)(i) of this section.
(C) The acquisition/substantial rehabilitation advance and the
moderate rehabilitation grant are subject to the requirements of
paragraph (c)(2) of this section.
(ii) HUD will not require the primarily religious organization to
establish the wholly secular organization before the selection of its
application. In such a case, the primarily religious organization may
apply on behalf of the wholly secular organization. The application
will be reviewed on the basis of the primarily religious organization's
financial responsibility and capacity, and its commitment to provide
appropriate resources to the wholly secular organization after
formation. The requirement with regard to site control, described in
579.210(b)(10), may be satisfied if the primarily religious organization
demonstrates site control and a commitment to transfer control of the
site to the wholly secular organization after its formation. Since the
wholly secular organization will not be in existence at the time of the
application, it will be required to demonstrate that it meets the
definition of private nonprofit organization contained in 579.5. If
such an application is selected for funding, the obligation of funds
will be conditioned upon the compliance with these requirements.
(d) Structures used for multiple purposes. Facilities assisted under
this part may also be used for other purposes. For example, a structure
may contain facilities for outpatient health care and may also be used
to provide services to the public at large or include commercial space.
Under these circumstances, however, assistance under this part will be
available only in proportion to the use of the facilities to assist the
homeless. No assistance may be used to support the costs of the
facility that are not related to providing approved assistance to the
homeless.
(e) Administrative costs. Up to five percent of any advance or grant
awarded under this part may be used for the purpose of paying costs of
administering the assistance.
(f) Outpatient health services. Not more than $10,000 of any grant
or advance under this part may be used for outpatient health services.
This limitation does not apply to amounts expended for the
rehabilitation or conversion of facilities to assist the homeless that
are used to provide outpatient health services.
24 CFR 579.115 Leveraging.
(a) General. Applicants are not required to provide matching sources
of funds for HUD assistance provided under this part. However,
applications that show other public or private sources of funds will
receive points for leveraging under the ranking criterion described in
579.215(b)(3).
(b) Computation of leveraged amounts. Resources that may be included
for leveraging purposes are:
(1) Monetary contributions. HUD will include in the leveraging
computation non-Federal monetary contributions from public or private
organizations. Funds from Community Development Block Grants and
Community Services Block Grants are considered non-Federal sources.
(2) In-kind contributions. HUD will include in the leveraging
computation, at the value of $5 an hour, the time and services
contributed by volunteers to carry out the proposed project. HUD will
also include the value of contributions of materials, supplies,
equipment, or structures (including a leasehold interest).
24 CFR 579.115 Subpart C -- Comprehensive Housing Affordability Strategy
24 CFR 579.150 Comprehensive housing affordability strategy.
(a) Certifications. Assistance may not be made available under this
part unless the applicant has submitted a certification that the
proposed activities are consistent with a Comprehensive Housing
Affordability Strategy (CHAS) and, in the case of a jurisdiction, it has
submitted a certification that it is following a HUD-approved CHAS.
(b) Applicable CHAS for a jurisdiction. The certification of
consistency for a State, metropolitan city, urban county, or other
government entity must be submitted by the public official responsible
for submitting the CHAS.
(c) Applicable CHAS for a private nonprofit organization. The
certification of consistency for a private nonprofit organization must
indicate consistency with the CHAS of the lowest level of government in
which the project is located that has a CHAS and the certification must
be made by the public official responsible for submitting that CHAS.
(56 FR 56129, Oct. 31, 1991)
24 CFR 579.150 Subpart D -- Application and Selection Process
24 CFR 579.200 Notice of fund availability.
When funds are made available for assistance under this part, HUD
will publish a notice of fund availability in the Federal Register. The
notice will:
(a) Give the instructions for obtaining application packages that
provide specific application requirements and guidance;
(b) Specify the time and the place for submitting completed
applications;
(c) State the amount of funding available under the notice;
(d) Indicate the weight or relative importance of the ranking
criteria contained in 24 CFR 579.215 as they will be applied to the
funding round announced in the notice; and
(e) Provide other appropriate information and guidance.
24 CFR 579.205 Selection process.
(a) Selection process. The selection process for assistance under
this part consists of the following stages:
(1) Application for assistance (see 579.210).
(2) Ranking applications determined eligible for assistance (see
579.215).
(3) Final selection (see 579.225).
(b) Reservation of funds. To the maximum extent practicable, HUD
will reserve not less than 50 percent of all funds available under this
part for assistance to projects that are designed primarily to benefit
homeless elderly persons or homeless families with children (with a
portion of such funds to be used for child care facilities that serve
children of homeless families).
24 CFR 579.210 Application requirements.
(a) Form, time, and adequacy of the application. To be considered
for assistance under this part, applications for assistance must be
filed in the form prescribed by HUD under this section, must meet the
requirements of this part, and must be submitted within the time period
established by HUD in the notice of funds availability under 579.200.
(b) Minimum requirements. At a minimum, HUD will require
applications to contain:
(1) Applicant data. Identity, description of past experience, and,
for private nonprofit organizations, information on eligibility to
receive assistance and financial responsibility.
(i) In determining the financial responsibility of private nonprofit
organizations, HUD will consider such factors as the past financial
history of the organization, its current and anticipated financial
outlook, the amount of funding that will be committed under the
proposal, and the applicant's other financial responsibilities. (HUD
has determined, for purposes of the requirements of this part, that all
States, metropolitan cities, urban counties, governmental entities, and
tribes are financially responsible.)
(ii) Private nonprofit organizations applying for assistance must
include in their applications evidence that they meet the definition of
a private nonprofit organization contained in 579.5.
(2) Evidence of the applicant's commitment to alleviating poverty.
HUD will consider the applicant's past efforts and its continuing
commitment to serve lower income persons, and, in the case of a private
nonprofit organization, whether the applicant's organizational
objectives foster service to such persons.
(3) Evidence of the applicant's capacity. HUD will consider the
applicant's ability to initiate the proposed activities within a
reasonable time in a successful manner, and to continue to carry out the
proposed activities throughout the term of the proposed commitment to
HUD. HUD will consider the applicant's experience in establishing and
operating facilities to assist the homeless or in providing or
coordinating supportive services, and the ability of the applicant's
personnel to perform administrative, managerial, and operational
functions necessary to the successful development and operation of
facilities to assist the homeless.
(4) Category of funding requested. Comprehensive assistance or
assistance in excess of ESG or SHD program funding, the type or types of
assistance requested (i.e., rehabilitation assistance, operating costs,
etc.), and the amount of funds requested for each type.
(5) Description of the proposed project. Information, if applicable,
regarding:
(i) The structure to be used, any proposed rehabilitation of the
structure and the estimated costs of the rehabilitation, and the value,
as determined by an appraisal, of the structure before rehabilitation if
assistance for rehabilitation or conversion is requested;
(ii) The supportive services to be offered, the source of funds for
such services, and the identification of the providers of the services;
(iii) An estimated annual budget of operating costs, supportive
services costs, and any other applicable costs for the period such
assistance is requested.
(6) Homeless population. A description of the size and
characteristics of the particular homeless population that will be
served.
(7) Other resources. A description of other resources, both public
and private, expected to be made available to the project.
(8) Operating assurances. An assurance satisfactory to HUD that the
facility will be operated as a facility for the homeless for not less
than 10 years from the date of initial occupancy, if the application
requests assistance to acquire, lease, rehabilitate, or convert
facilities to assist the homeless.
(9) Consistency with Comprehensive Housing Affordability Strategy. A
certification from the public official responsible for submitting the
housing strategy for the appropriate jurisdiction, described in
579.150, stating that the proposed project is consistent with the
applicable Comprehensive Plan.
(10) Site control. Evidence that the applicant has control of the
site involved (e.g., ownership, lease, option to purchase or lease), or
reasonable assurance that the applicant will have control of the site
not later than six months after notification of an award of assistance.
''Reasonable assurances'' must be satisfied by identification of a
suitable site and certification that the applicant is engaged in
negotiations or in other efforts for the purpose of gaining control of
the identified site, or other evidence satisfactory to HUD that the
applicant will gain control of the identified site.
(11) Consistency with local plans. (i) A written statement from the
unit of general local government in which the project is proposed to be
located that the proposed use of the structure and site is not
inconsistent with any plan of the local government that may have an
effect on the use of the structure or site. This requirement is
satisfied if the applicant demonstrates that a written request was made
to the unit of local government for the statement and the statement has
not been received within 30 days from the request.
(ii) A written statement from the unit of general local government in
which the project is proposed to be located, or other evidence
satisfactory to HUD, that the proposed use of the site is permissible
under applicable zoning ordinances and regulations; or a statement from
the applicant describing the proposed actions necessary to make the use
of the site permissible under applicable zoning ordinances and
regulations, with evidence that there is a reasonable basis to believe
that the proposed zoning actions will be completed successfully and
within four months following submission of the application.
(12) Reasonable efforts. Evidence that the applicant has made
reasonable efforts to use all available local resources, including State
and local government funding, resources available from the private
sector, and resources available under title IV of the McKinney Act (the
ESG program, the SHD program, and the section 8 -- Moderate
Rehabilitation program for Single Room Occupancy Dwellings authorized
under subtitle E). The application must also demonstrate that other
resources are not sufficient or are not available to carry out the
purpose for which the assistance is requested.
(13) Other. Other certifications, information, or data as prescribed
by HUD in the application package.
(c) Environmental review. The environmental effects of each
application must be assessed in accordance with the provisions of the
National Environmental Policy Act of 1969 (42 U.S.C. 4321) (NEPA) and
the related authorities listed in HUD's implementing regulations at 24
CFR part 50 or part 58. See 579.220 for a full discussion of the
environmental review requirements for applications for assistance.
(Approved by the Office of Management and Budget under OMB control
number 2506-0111)
(54 FR 46817, Nov. 7, 1989, as amended at 54 FR 52397, Dec. 21, 1989;
56 FR 56130, Oct. 31, 1991)
24 CFR 579.215 Ranking criteria.
(a) General. Applications will be assigned a rating score and placed
in ranked order, based upon the critera described in paragraph (b) of
this section.
(b) Criteria. HUD will award points for the following criteria:
(1) Innovative quality. HUD will consider the extent to which the
proposal involves a particularly innovative program for, or alternate
method of, meeting the immediate and long-term needs of homeless
individuals and families. In assessing an application under this
criterion, HUD will consider the degree to which the applicant
demonstrates that the proposal uses a new or unusual approach that holds
promise of successfully meeting the immediate and long-term needs of
homeless individuals or families.
(2) Comprehensiveness. HUD will consider the comprehensiveness of
the proposed assistance in serving the identified homeless population.
In assessing an application under this criterion, HUD will consider:
(i) The extent to which the facilities and supportive services to be
provided under the proposal, and to be available from others in the area
proposed to be served, will satisfy the immediate (e.g., temporary
housing, food, clothing, medical needs, etc.) and long-term (e.g.,
assistance in obtaining permanent housing and supportive services
necessary to move the homeless population to independent living) needs
of the population to be served;
(ii) The extent to which the proposal reflects a clear understanding
of the needs of the homeless population to be served and the extent to
which the proposal addresses those needs; and
(iii) The extent to which the proposal is the result of coordinated
efforts of members of the community and represents a diversity of
experience, broad-based and enduring community commitment, and access to
resources.
(3) Leveraging. HUD will consider the extent to which the applicant
will leverage the amount of assistance to be provided under this part
with funds and other resources from other public or private sources,
particularly non-Federal sources. (See 579.115 for a discussion of
leveraging sources.)
(4) Special homeless populations. HUD will consider the extent to
which the application proposes facilities designed primarily to benefit
homeless elderly individuals or homeless families with children, or
proposes facilities to be used for child care for homeless families.
(5) Cost effectiveness. HUD will consider the extent to which the
applicant's proposed costs under the proposal are reasonable in relation
to the work done and the goods and services purchased; and are
effective in accomplishing the purposes of the proposal.
24 CFR 579.220 Environmental review.
(a) General. (1) The environmental effects of each application must
be assessed in accordance with the provisions of the National
Environmental Policy Act of 1969 (42 U.S.C. 4321) (NEPA) and the related
environmental laws and authorities listed in HUD's implementing
regulations at 24 CFR part 50 or part 58, depending on who is
responsible for the environmental review.
(2) Environmental regulations provide for certain categorical
exclusions under NEPA and set conditions under which excluded activities
may be determined exempt from all environmental review requirements. In
cases where proposed assistance and leveraging contributions solely
involve operating costs for facilities or the provision of supportive
services and the structures and sites involved in the projects meet the
program requirements of this part, these activities are categorically
excluded by regulation and, under part 58, may be determined fully
exempt from environmental review.
(b) Responsibility for review. (1) HUD will perform the
environmental review, in accordance with part 50, for applications
received directly from private nonprofit organizations, governmental
entities with special or limited purpose powers, and any governmental
entities with general purpose powers found not to have the legal
capacity to carry out this responsibility. HUD cannot approve such
applications prior to its completion of this review.
(2) Applicants that are States (including all recipients under the
permanent housing for handicapped homeless program described in 24 CFR
part 578), metropolitan cities, urban counties, tribes, or other
governmental entities with general purpose powers, and that are deemed
to have the legal capacity to do so, must assume responsibility for
environmental review, decisionmaking, and action for each application
for assistance in accordance with part 58. HUD is permitted to approve
such applications subject to later completion of the review by the
applicant in accordance with part 58.
(3) The assumption of legal responsibility by an applicant under
paragraph (b)(2) of this section does not preclude the applicant's
arranging for the conduct of technical reviews by cooperating local
governments having an established technical capability, e.g.,
metropolitan cities in which the project is proposed to be located. The
applicant under such arrangements must independently evaluate
information submitted and assume responsibility for its accuracy, scope,
and content; meet legal requirements attached to the Release of Funds
by HUD; determine the completeness of the review; meet any
requirements for consultation, as applicable, under 24 CFR 58.5
authorities; and assure the completion of any mitigation measures
resulting from technical review or from State consultations. The
arrangements described in this paragraph are in addition to the ability
of an applicant to adopt relevant and adequate prior reviews conducted
by HUD or other governmental entity if the reviews meet the particular
requirements of the Federal environmental law or authority under which
they would be adopted, and only under certain conditions (e.g., a
determination that no environmentally significant changes have occurred
since the review was done).
(c) Environmental review by HUD. With regard to the environmental
effects of applications for which HUD performs the review, HUD will
undertake its review in accordance with the provisions of NEPA and the
related authorities listed in 24 CFR 50.4. Any application subject to
environmental review by HUD that requires an Environmental Impact
Statement (EIS) (generally, an application that HUD determines would
have a significant impact on the human environment, in accordance with
the environmental assessment procedures at 24 CFR part 50, subpart E)
will not be eligible for assistance under this part.
(d) Environmental review by applicants. (1) An applicant that is
required under paragraph (b)(2) of this section to assume environmental
review responsibility must include in its application an assurance that
the applicant will assume all the environmental review responsibility
that would otherwise be performed by HUD as the responsible Federal
official under NEPA and related authorities listed in 24 CFR 58.5,
including acceptance of jurisdiction of the Federal courts.
(2) Applicants required to assume environmental review responsibility
need not complete the review until a reasonable time after selection for
funding. In such cases, the award is subject to completion of the
environmental responsibilities set out in 24 CFR part 58 within a
reasonable time period after notification of the award. (The provision
does not preclude the applicant from enclosing its environmental
certification and Request for Release of Funds with its application.)
(i) Upon completion of the requirements in 24 CFR part 58, applicants
must certify the completion and submit a Request for Release of Funds.
This submission is not required in cases in which the applicant
determines, and documents, in accordance with 24 CFR 58.34, that its
program components are exempt.
(ii) HUD will not release funds for a project if the recipient or any
other party commits SAFAH funds (i.e., incurs any costs or expenditures
to be paid or reimbursed with such funds) before the grantee submits and
HUD approves its Request for Release of Funds (when such submission is
required).
(3) A general government applicant that believes that it does not
have the legal capacity to carry out the responsibilities required by 24
CFR part 58 should contact the appropriate HUD field office for further
instructions. Determinations of legal capacity will be made on a
case-by-case basis.
(e) Location of projects in floodplains. Applications for projects
that are to be required, rehabilitated, or assisted with SAFAH funds and
that are located in any 100-year floodplain, as designated by the
Federal Emergency Management Agency (FEMA), are subject to the
floodplain review requirements of Executive Order 11988, Floodplain
Management (May 24, 1977). Executive Order 11988 review, as referenced
under parts 50 and 58, is to be performed during the environmental
review.
24 CFR 579.225 Final selection.
(a) Selection for funding. Eligible applications for comprehensive
assistance under 579.100 will be ranked separately and funded first.
The highest-ranked applications will be selected for funding in
accordance with their ranked order, to the extent funds are available,
as determined under 579.215. If funds are available after all eligible
applications for comprehensive assistance have been funded, eligible
applications for assistance in excess of ESG or SHD under 579.105 will
be funded in accordance with their ranked order. After awards are
announced, applicants may contact HUD, with regard to applications not
chosen for funding, for an explanation.
(b) Ties between applicants. In the event of a tie between
applicants, HUD will use the quality of the proposal and the need for
the project in the area to determine which application should be
selected for funding.
(c) Procedural error. If HUD makes a procedural error in a funding
competition that, when corrected, would result in awarding sufficient
points to warrant funding of an otherwise eligible applicant during that
competitive year, HUD may fund that applicant in the next funding
competition.
24 CFR 579.225 Subpart E -- Program Requirements
24 CFR 579.300 Grant agreement.
(a) General. The duty to provide housing in accordance with the
requirements of this part will be incorporated in a grant agreement
executed by HUD and the recipient.
(b) Enforcement. HUD will enforce the obligations in the grant
agreement through such action as may be appropriate.
24 CFR 579.305 General operation.
(a) Assistance in excess of ESG or SHD programs. The program
requirements with regard to the operation of facilities or provision of
supportive services under the ESG or SHD programs apply to a recipient
of assistance in excess of the ESG or SHD programs.
(b) Comprehensive assistance -- (1) Facilities to assist the
homeless. Any facility to assist the homeless assisted with
comprehensive assistance under this part must be safe and sanitary and
must comply with all State and local housing codes, licensing
requirements, and any other requirements in the jurisdiction in which
the facility is located regarding the condition of the structure and the
operation of the facility.
(2) Ongoing assessment of supportive services. Each recipient of
assistance under this part must conduct an ongoing assessment of the
supportive services required by the homeless population receiving such
services from the recipient and make adjustments as appropriate.
(c) Outpatient health services. Outpatient health services provided
by the recipient must be approved as appropriate by HUD and the
Department of Health and Human Services. Upon receipt of an application
that proposes the provision of outpatient health services, HUD will
consult with HHS with respect to the appropriateness of the proposed
services.
(d) Records and reports. Each recipient of assistance under this
part must keep any records and make any reports that HUD may require.
HUD may require recipients to monitor individuals or families served by
the project for a reasonable time set by HUD to determine whether such
individuals or families made successful transitions to, and continue to
reside in, permanent housing.
24 CFR 579.310 Term of commitment and repayment of advance.
(a) All projects receiving assistance under this part for the
purchase, lease, renovation, or conversion of property must be operated
to assist the homeless for not less than 10 years.
(b) Repayment of advance. (1) The recipient of an advance under this
part must repay the advance in the amount prescribed under paragraph
(b)(2) of this section and in accordance with the terms prescribed by
HUD.
(2) (i) The recipient must repay the full amount of the advance if
the project is used to assist the homeless for less than 10 years
following the date of initial occupancy. For each full year that the
project is used as a facility to assist the homeless following the
expiration of this 10-year period, the amount that the recipient will be
required to pay will be reduced by one-tenth of the original advance.
If the project is used as a facility to assist the homeless for 20 years
following the date of initial occupancy, the recipient will not be
required to repay any portion of the advance under this section.
(ii) The repayment provisions of paragraph (b)(2)(i) of this section
will not be enforced if HUD determines that the project is no longer
needed for use as a facility to assist the homeless and approves the use
of such project for the direct benefit of lower income persons.
(c) Eminent domain. A recipient of assistance under this part for
the purchase, lease, renovation, rehabilitation, or conversion of a
structure that is taken by eminent domain during the 20-year period
following the initial date of occupancy must repay the assistance
provided, to the extent that funds are available from the eminent domain
proceeding.
(d) Prevention of undue benefits. (1) If assistance is provided
under this part for the purchase, lease, renovation, rehabilitation, or
conversion of a structure, and the project is sold or otherwise disposed
of during the 20-year period following the date of initial occupancy,
the recipient must comply with such terms and conditions as HUD may
prescribe to prevent the recipient from unduly benefiting from the sale
or disposition.
(2) Paragraph (d)(1) of this section does not apply to sales or
dispositions, approved by HUD, that result in the continued use of the
project for the direct benefit of lower income persons.
24 CFR 579.315 Relocation and acquisition.
(a) Minimizing displacement. Consistent with the other goals and
objectives of this part, recipients must assure that they have taken all
reasonable steps to minimize the displacement of persons (families,
individuals, businesses, nonprofit organizations, and farms) as a result
of a project assisted under this part.
(b) Relocation assistance for displaced persons. A displaced person
(defined in paragraph (f)(1) of this section) must be provided
relocation assistance at the levels described in, and in accordance
with, 49 CFR part 24, which contains the government-wide regulations
implementing the Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970 (URA) (42 U.S.C. 4601-4655).
(c) Real property acquisition requirements. The acquisition of real
property for a project is subject to the URA and the requirements
described in 49 CFR part 24, subpart B.
(d) Responsibility of recipient. The recipient must assure that it
will comply with the URA, the regulations at 49 CFR part 24, and the
requirements of this section. The cost of assistance required by this
section may be paid from local public funds, funds provided in
accordance with this part, or funds available from other sources.
(e) Appeals. A person who disagrees with the recipient's
determination concerning a payment or other assistance required by this
section may file a written appeal of that determination with the
recipient. The appeal procedures to be followed are described in 49 CFR
24.10.
(f) Definitions -- (1) Displaced person. (i) The term ''displaced
person'' means a person (family, individual, business, nonprofit
organization, or farm) that moves from real property, or moves personal
property from real property, permanently and involuntarily, as a direct
result of acquisition, rehabilitation, or demolition for a project
assisted under this part. Permanent, involuntary moves for an assisted
project include:
(A) A permanent move from the real property (building or complex)
following notice by the recipient, project sponsor or property owner to
move permanently from the property, if the move occurs on or after the
date that the recipient submits to HUD an application for assistance
that is later approved and funded;
(B) A permanent move from the real property that occurs before the
submission of the application to HUD, if the recipient or HUD determines
that the displacement resulted directly from acquisition,
rehabilitation, or demolition for the project; or
(C) A permanent move from the real property by a tenant-occupant of a
dwelling unit that occurs after the execution of the agreement between
the recipient and HUD if:
(1) The tenant has not been provided a reasonable opportunity to
lease and occupy a suitable, decent, safe and sanitary dwelling in the
same building/complex following the completion of the project at a rent,
including estimated average utility costs, that does not exceed the
greater of (i) the tenant's rent and estimated average utility costs
before the initiation of negotiations, or (ii) 30 percent of gross
household income; or
(2) The tenant has been required to relocate temporarily, but (i) the
tenant is not offered payment for all reasonable out-of-pocket expenses
incurred in connection with the temporary relocation or other conditions
of the temporary relocation are not reasonable, and (ii) the tenant does
not return to the building/complex; or
(3) The tenant is required to move to another unit in the same
building/complex but is not offered reimbursement for all reasonable
out-of-pocket expenses incurred in connection with the move.
(ii) A person does not qualify as a ''displaced person'' if:
(A) The person has been evicted for cause based upon a serious or
repeated violation of material terms of the lease or occupancy agreement
and HUD determines that the eviction was not undertaken for the purpose
of evading the obligation to provide relocation assistance;
(B) The person moved into the property after the submission of the
application and, before commencing occupancy, received written notice of
the expected displacement;
(C) The person is ineligible under 49 CFR 24.2(g)(2); or
(D) HUD determines that the person was not displaced as a direct
result of acquisition, rehabilitation, or demolition for the project.
(iii) The recipient or sponsor may, at any time, request a HUD
determination of whether a displacement is or would be covered by this
rule.
(2) Initiation of negotiations. For purposes of determining the type
of replacement housing payment to be made to a residential tenant
displaced as a direct result of privately undertaken rehabilitation,
demolition or acquisition of the real property, the term ''initiation of
negotiations'' means the execution of the agreement between the
recipient and HUD.
24 CFR 579.320 Flood insurance.
(a) The Flood Disaster Protection Act of 1973 (42 U.S.C. 4001-4128)
prohibits the approval of applications for assistance for acquisition or
construction (including rehabilitation) for projects/sites located in an
area identified by the Federal Emergency Management Agency (FEMA) as
having special flood hazards, unless:
(1) The community in which the area is situated is participating in
the National Flood Insurance Program (see 44 CFR parts 59 through 79),
or less than a year has passed since FEMA notification regarding such
hazards; and
(2) Flood insurance is obtained as a condition of approval of the
application.
(b) Recipients with projects/sites located in an area identified by
FEMA as having special flood hazards are responsible for assuring that
flood insurance under the National Flood Insurance Program is obtained
and maintained.
24 CFR 579.325 Applicability of other Federal requirements.
Each recipient of assistance under this part must comply with the
following additional requirements:
(a) Nondiscrimination and equal opportunity. The nondiscrimination
and equal opportunity requirements that apply to the SAFAH program are
discussed below. Notwithstanding the permissibility of proposals that
serve designated populations of homeless persons, recipients serving a
designated population of homeless persons are required, within the
designated population, to comply with these requirements for
nondiscrimination on the basis of race, color, religion, sex, national
origin, age, and handicap.
(1) The requirements of the Fair Housing Act (42 U.S.C. 3601-20) and
implementing regulations at 24 CFR part 100; Executive Order 11063
(Equal Opportunity in Housing) and implementing regulations at 24 CFR
part 107; and title VI of the Civil Rights Act of 1964 (42 U.S.C.
2000d) (Nondiscrimination in Federally Assisted Programs) and
implementing regulations issued at 24 CFR part 1;
(2) The prohibitions against discrimination on the basis of age under
the Age Discrimination Act of 1975 (42 U.S.C. 6101-07) and implementing
regulations at 24 CFR part 146, and the prohibitions against
discrimination against handicapped individuals under section 504 of the
Rehabilitation Act of 1973 (29 U.S.C. 794) and implementing regulations
at 24 CFR part 8;
(3) The requirements of Executive Order 11246 (Equal Employment
Opportunity) and the regulations issued under the Order at 41 CFR
chapter 60;
(4) The requirements of section 3 of the Housing and Urban
Development Act of 1968, (12 U.S.C. 1701u) (Employment Opportunities for
Lower Income Persons in Connection with Assisted Projects); and
(5) The requirements of Executive Orders 11625, 12432, and 12138.
Consistent with HUD's responsibilities under these Orders, recipients
must make efforts to encourage the use of minority and women's business
enterprises in connection with funded activities.
(6) If the procedures that the recipient intends to use to make known
the availability of the facilities to assist the homeless are unlikely
to reach persons of any particular race, color, religion, sex, age,
national origin, familial status, or handicap who may qualify for the
services provided by the facilities, the recipient must establish
additional procedures that will ensure that interested persons can
obtain information concerning the existence and location of services and
facilities that are accessible to handicapped persons.
(b) Environmental. The National Environmental Policy Act of 1969,
the related authorities in 24 CFR part 50 or part 58, and the Coastal
Barrier Resources Act of 1982 (16 U.S.C. 3601) are applicable to
proposals under this program.
(c) Applicability of OMB Circulars. The policies, guidelines, and
requirements of OMB Circular Nos. A-87 and A-102 (as set forth in 24
CFR part 85) apply to the acceptance and use of assistance under the
program by governmental entities, and OMB Circular Nos. A-110 and A-122
apply to the acceptance and use of assistance by private nonprofit
organizations, except the requirements of 24 CFR 85.24 are modified by
579.115, and the requirements of 24 CFR 85.31 are modified by 579.310.
(d) Lead-based paint. (1) The requirements of the Lead-Based Paint
Poisoning Prevention Act (42 U.S.C. 4821-4846) and implementing
regulations at 24 CFR part 35 (except as superseded in paragraph (d)(2)
of this section) apply to facilities to assist the homeless assisted
under this part.
(2)(i) This paragraph implements the provisions of section 302 of the
Lead-Based Poisoning Prevention Act (42 U.S.C. 4822) by establishing
procedures to eliminate, as far as practicable, the hazards of
lead-based paint poisoning with respect to structures for which
assistance is provided under this part. This paragraph is promulgated
under 24 CFR 35.24(b)(4) and supersedes, with respect to the program,
the requirements prescribed in subpart C of 24 CFR part 35. The
requirements of this paragraph apply to structures that will be occupied
by children under seven years of age.
(ii) The following definitions apply to this paragraph (d):
Applicable surface means all intact and non-intact painted interior
and exterior surfaces of a residential structure.
Chewable surface means all chewable, protruding painted surfaces up
to five feet from the floor or ground, which are readily accessible to
children under seven years of age: e.g., protruding corners,
windowsills and frames, doors and frames, and other protruding woodwork.
Defective paint surfaces means paint on applicable surfaces that is
cracking, scaling, chipping, peeling, or loose.
Elevated blood lead level or EBL means excessive absorption of lead:
that is, a confirmed concentration of lead in whole blood of 25 g/dl
(micrograms of lead per deciliter of whole blood) or greater.
Lead-based paint surface means a paint surface, whether or not
defective, identified as having a lead content greater than or equal to
1 mg/cm2.
(iii) In the case of a structure constructed before 1978 or
substantially rehabilitated prior to 1978, the applicant must inspect
the structure for defective paint surfaces before it submits an
application. Recipients must inspect assisted structures at least
annually during the term of their operating commitment to HUD. If
defective paint surfaces are found, treatment in accordance with 24 CFR
35.24(b)(2)(ii) is required. Correction of defective surfaces found
during the initial inspection must be completed before initial occupancy
of the project. Correction of defective paint conditions discovered at
periodic inspection must be completed within 30 days of their discovery.
When weather conditions prevent completion of repainting of exterior
surfaces within the 30-day period, repainting may be delayed, but
covering or removal of the defective paint must be completed within the
prescribed period.
(iv) In the case of a structure constructed before 1978 or
substantially rehabilitated prior to 1978, if the recipient is presented
with test results that indicate that a child under the age of seven
years occupies the structure and has an elevated blood lead level (EBL),
the recipient must cause the unit to be tested for lead-based paint on
chewable surfaces. Testing must be conducted by a State or local health
or housing agency, by an inspector certified or regulated by a State or
local health or housing agency, or an organization recognized by HUD.
Lead content must be tested by using an X-ray florescence analyzer (XRF)
or other method approved by HUD. Test readings of 1 mg/cm or higher
using an XRF shall be considered positive for presence of lead-based
paint. Where lead-based paint on chewable surfaces is identified,
covering or removal of the paint surface in accordance with 24 CFR
35.24(b)(2)(ii) is required.
(v) In lieu of the procedures set forth in the preceding clause, the
recipient may, at its discretion, abate all interior and exterior
chewable surfaces in accordance with the methods set out at 24 CFR
35.24(b)(2)(ii).
(vi) The recipient must take appropriate action to protect tenants
from hazards associated with abatement procedures.
(vii) The recipient must keep a copy of each inspection report for at
least three years. If a unit requires testing, or treatment of chewable
surfaces based on the testing, the recipient must keep the test results
and, if applicable, the certification of treatment indefinitely. The
records must indicate which chewable surfaces in the facility has been
tested or treated. If records establish that certain chewable surfaces
were tested, or tested and treated, in accordance with the standards
prescribed in this section, these surfaces do not have to be tested or
treated at any subsequent time.
(e) Conflicts of interest. In addition to the conflict of interest
requirements in OMB Circulars A-102 and 24 CFR part 85, no person who is
an employee, agent, consultant, officer, or elected or appointed
official of the recipient that receives assistance under the program and
who exercises or has exercised any functions or responsibilities with
respect to assisted activities, or who is in a position to participate
in a decisionmaking process or gain inside information with regard to
such activities, may obtain a personal or financial interest or benefit
from the activity, or have an interest in any contract, subcontract, or
agreement with respect thereto, or the proceeds thereunder, either for
himself or herself or for those with whom he or she has family or
business ties, during his or her tenure or for one year thereafter.
(f) Use of debarred, suspended, or ineligible contractors. The
provisions of 24 CFR part 24 apply to the employment, engagement of
services, awarding of contracts, or funding of any contractors or
subcontractors during any period of debarment, suspension, or placement
in ineligibility status.
(g) Audit. The financial management systems used by States,
metropolitan cities, urban counties, governmental entities and tribes
that are recipients under this program must provide for audits in
accordance with 24 CFR part 44. Private nonprofit organization
recipients are subject to the audit requirements of OMB Circular A-110.
HUD may perform or require additional audits as it finds necessary or
appropriate.
(h) Davis-Bacon Act. The provisions of the Davis-Bacon Act (40
U.S.C. 276a-276a-5) do not apply to the program.
(i) Drug- and alcohol-free facilities. Section 402 of the Stewart B.
McKinney Homeless Assistance Amendments Act of 1988 requires recipients
assisted under this part to administer, in good faith, a policy designed
to ensure that the homeless facility is free from the illegal use,
possession, or distribution of drugs or alcohol by its residents.
Recipients are also subject to the requirements of sections 5151-5160 of
the Drug-Free Workplace Act of 1988 and HUD's implementing regulations
at 24 CFR part 24.
24 CFR 579.325 Subpart F -- Administration
24 CFR 579.400 Obligation of funds, funding amendments, and
deobligation.
(a) Obligation of funds. When HUD selects an application for funding
and notifies the recipient, it will obligate funds to cover the amount
of the approved assistance under subpart B of this part.
(b) Increases. After the initial obligation of funds, HUD will not
make any upward revisions to the amount obligated for any approved
assistance.
(c) Deobligation. (1) HUD may deobligate amounts for approved
assistance is proposed activities are not begun or carried out
expeditiously within a reasonable time following selection.
(2) The grant agreement may set forth in detail other circumstances
under which funds may be deobligated, and other sanctions may be
imposed.
(3) HUD may:
(i) Fund eligible applications that were submitted in response to the
most recently published notice of funds availability with the
deobligated funds; or
(ii) Readvertise the availability of funds that have been obligated
under this section in a notice of fund availability under 579.200.
(d) Site control. HUD will deobligate any award for assistance under
this part if the recipient does not have control of a suitable site
within one year after notification of an award.
24 CFR 579.405 Site change.
(a) General. A recipient may obtain ownership or control of a
suitable site different from the one specified in its application.
Retention of an assistance award is subject to the new site's meeting
all requirements under this part for suitable sites.
(b) Increased costs. If the costs for the purchase, lease,
rehabilitation, renovation, or conversion of the substitution site are
greater than the amount awarded for such assistance for the site
specified in the application, the recipient must provide for all
additional costs. If the recipient is unable to demonstrate to HUD that
it is able to provide for the difference in costs, HUD may deobligate
the award of assistance.
(c) Applicability. This section is applicable to awards of
assistance made under this part on or after November 1, 1987.
24 CFR 579.405 PART 580 -- MODEL CITIES TRANSITION POLICIES
24 CFR 579.405 Subpart A -- General Provisions
Sec.
580.1 Applicability.
580.2 Deadline for approval of new projects and activities.
580.3 Deadline for city to obligate grant funds.
580.4 Deadline for completion of model cities grant assistance to
CCDP.
580.5 Exceptions to grant assistance completion deadline.
24 CFR 579.405 Subpart B -- Policies for Program Closeout
580.6 Final HUD audit of CCDP.
580.7 Certification of program completion.
580.8 Reports on projects and activities continuing after grant
assistance completion deadline.
580.9 Letter of credit adjustment and draw downs.
580.10 Final local evaluation of model cities program.
580.11 Citizen participation requirements.
24 CFR 579.405 Subpart C -- Disposition of Property Purchased With
Model Cities Funds
580.12 Disposition of personal property.
580.13 Assets held by economic and housing development corporations.
580.14 Disposition of real property.
Authority: Sec. 7(d) of the Department of Housing and Urban
Development Act (42 U.S.C. 3535(d)).
Source: 40 FR 12073, Mar. 17, 1975, unless otherwise noted.
24 CFR 579.405 Subpart A -- General Provisions
24 CFR 580.1 Applicability.
The purpose of this part is to prescribe policies to be followed to
complete the program of Federal categorical grant assistance to
comprehensive city demonstration programs provided under Title I of the
Demonstration Cities and Metropolitan Development Act of 1966, Pub. L.
89-754.
24 CFR 580.2 Deadline for approval of new projects and activities.
(a) General. The deadline for HUD approval of new projects and
activities, to be carried out with funds committed by tender letter from
HUD to the city on or prior to December 31, 1974, is June 30, 1975.
(b) Reprogramming. Prior to June 30, 1975, grant funds may be
reprogrammed into both previously approved and new projects and
activities, as well as into program administration. Thereafter, model
cities grant funds may only be reprogrammed into previously approved
projects and activities and into program administration.
(c) Budget revision requirements. In revising budgets prior to June
30, 1975, the city shall adhere to existing budget requirements. After
June 30, 1975, the budget revision requirements listed below shall
apply:
(1) HUD approval of budget revisions will be required only for
substantial changes in the program and for changes in model neighborhood
boundaries which add or subtract ten percent of the model neighborhood
population. Substantial changes, whether in key projects or
administrative arrangements, are those which represent a major departure
from the direction of the program as previously approved.
(2) The city shall report to HUD an increase of a program category
budget of more than the greater of 5 percent of the model cities grant
funded portion of its budget or $25,000 in model cities grant funds.
(3) Any increase in program administration must take into
consideration that the model cities grant shall not exceed 80 percent of
the eligible costs for program administration.
(4) No budget revisions may be made which will cause the total amount
of the model cities grant to be exceeded.
24 CFR 580.3 Deadline for city to obligate grant funds.
Model cities grant funds must be obligated under contracts between
the city and third parties (i.e. operating agencies and contractors) or
under formal cooperation agreements between the City Demonstration
Agency and other city departments on or prior to September 30, 1975,
except for program administration. Any grant funds not so obligated by
that date will be recaptured by HUD. Any grant funds which become
de-obligated after the obligation deadline date, may be reprogrammed
into previously approved projects and activities or into program
administration.
24 CFR 580.4 Deadline for completion of model cities grant assistance
to CCDP.
HUD, in consultation with each city, shall establish a grant
assistance completion deadline date by which all model cities grant fund
assistance to the comprehensive city demonstration program shall end
subject to exceptions set forth in 580.5. Any costs incurred with
respect to the comprehensive city demonstration program after the grant
assistance completion deadline shall be considered ineligible for
funding under the Grant Agreement, with the exception of costs incurred
for activities listed in 580.5 of this part.
24 CFR 580.5 Exceptions to grant assistance completion deadline.
Costs may continue to be incurred after the grant assistance
completion deadline date in the following areas:
(a) Program administration. The city must continue to provide an
adequate number of knowledgeable staff to carry out its responsibilities
under the model cities grant agreement until all HUD audit findings with
respect to the comprehensive city demonstration program have been
cleared by HUD. The cost of providing such staff may be paid either
with model cities grant funds on an 80-20 percent basis or with other
funds at the option of the city. If the city elects to continue to pay
for such staff with model cities grant funds, such funds should be
budgeted for program administration, in order that grant funds will be
available to pay staff expenses until all HUD audit findings have been
resolved.
(b) Capital projects and relocation activities. Grant funds for
completion of capital projects and relocation activities shall be
obligated under contracts between the city and third parties or under
formal cooperation agreements between the City Demonstration Agency and
other city departments on or prior to September 30, 1975 (see 580.3).
However, such grant funds may be budgeted for expenditure after the
grant assistance completion deadline, subject to a written agreement
between HUD and the city.
(c) Economic and housing development corporations. Grant funds for
economic and housing development corporations shall be obligated under
contracts between the city and the development corporations on or before
September 30, 1975 (see 580.3). However, such grant funds may be
budgeted for expenditure after the grant assistance completion deadline,
subject to a written agreement between HUD and the city.
(d) Special circumstances. In order to facilitate the establishment
of a grant assistance completion deadline when there are projects and
activities, not subject to paragraphs (a), (b), or (c) of this section,
which involve longer term contractual obligations than other projects
and activities, HUD Regional Administrators may allow additional
exceptions to the grant assistance completion deadline. Grant funds for
projects and activities excepted from the deadline by HUD Regional
Administrators shall be obligated under contracts between the city and
third parties or under formal cooperation agreements between the City
Demonstration Agency and other city departments on or prior to September
30, 1975 (see 580.3). However, such grant funds may be budgeted for
expenditure after the grant assistance completion deadline, subject to a
written agreement between HUD and the city.
24 CFR 580.5 Subpart B -- Policies for Program Closeout
24 CFR 580.6 Final HUD audit of CCDP.
The final HUD audit of the comprehensive city demonstration program
shall be conducted as early as possible after the grant assistance
completion deadline. HUD, in consultation with the city, shall
determine the specific date on which the audit will begin. Capital
projects, relocation activities, development corporations, and other
excepted projects and activities for which funds are budgeted for
expenditure after the grant assistance completion deadline, will remain
subject to additional HUD audits. Program administration costs incurred
by the city after the final audit of the comprehensive city
demonstration program will be certified to on a certificate of program
completion. (See 580.7.) The costs will be reviewed by HUD field
representatives and are subject to audit.
24 CFR 580.7 Certification of program completion.
When all audit findings contained in the final HUD audit report have
been cleared, and if applicable, when HUD and the city have entered into
a written agreement regarding the completion of any activities
continuing after the grant assistance completion deadline, the city
shall be required to certify program completion on a form prescribed by
HUD.
24 CFR 580.8 Reports on projects and activities continuing after grant
assistance completion deadline.
The city shall be required to submit to HUD such reports as HUD shall
deem necessary with respect to capital projects, relocation activities,
development corporations, and other excepted projects and activities
continuing beyond the grant assistance completion deadline.
24 CFR 580.9 Letter of credit adjustment and draw downs.
Upon HUD approval of the certificate of program completion and final
financial statements, the city's letter of credit will be adjusted to
equal the amount of the undisbursed allowable grant due to the city as
shown on the certificate.
24 CFR 580.10 Final local evaluation of model cities program.
HUD will require a final evaluation of each locality's model cities
program. The manner and forms for the final evaluation will be provided
by HUD.
24 CFR 580.11 Citizen participation requirements.
Model cities policies relating to citizen participation remain in
effect until the grant assistance completion deadline has been reached.
24 CFR 580.11 Subpart C -- Disposition of Property Purchased With Model Cities Funds
24 CFR 580.12 Disposition of personal property.
All office equipment, supplies, materials, and other personal
property, purchased in whole or in part with grant funds and used for
the administration of the program or in the administration of a project
or activity operated by the city, shall be the sole property of the
city. Final disposition of personal property, as described above, in
the hands of a non-city operating agency shall be a contract matter
between the city and the operating agency.
24 CFR 580.13 Assets held by economic and housing development
corporations.
Investment assets derived from the use of grant funds, such as loan
notes, collateral in a guarantee fund and real property, are the
property of the city or the development corporation, depending upon the
contract between them. When such investment assets return to liquid
form upon the completion of their specific investment purpose, the
proceeds will belong to the city or the development corporation,
depending upon the contract between them. Income derived from
investment assets shall also belong to the city or the development
corporation, depending upon the contract between them. If the ownership
of investment assets and the income derived therefrom is not otherwise
specified by contract or law, the city shall be the sole owner of such
assets and income.
24 CFR 580.14 Disposition of real property.
Following HUD approval of the certificate of program completion, HUD
concurrence in the transfer of title to real property shall no longer be
required.
24 CFR 580.14 PART 581 -- USE OF FEDERAL REAL PROPERTY TO ASSIST THE
HOMELESS
Sec.
581.1 Definitions.
581.2 Applicability.
581.3 Collecting the information.
581.4 Suitability determination.
581.5 Real property reported excess to GSA.
581.6 Suitability criteria.
581.7 Determination of availability.
581.8 Public notice of determination.
581.9 Application process.
581.10 Action on approved applications.
581.11 Unsuitable properties.
581.12 No applications approved.
581.13 Waivers.
Authority: 42 U.S.C. 11411 note; 42 U.S.C. 3535(d).
Source: 56 FR 23794, 23795, May 24, 1991, unless otherwise noted.
24 CFR 581.1 Definitions.
Applicant means any representative of the homeless which has
submitted an application to the Department of Health and Human Services
to obtain use of a particular suitable property to assist the homeless.
Checklist or property checklist means the form developed by HUD for
use by landholding agencies to report the information to be used by HUD
in making determinations of suitability.
Classification means a property's designation as unutilized,
underutilized, excess, or surplus.
Day means one calendar day including weekends and holidays.
Eligible organization means a State, unit of local government or a
private non-profit organization which provides assistance to the
homeless, and which is authorized by its charter or by State law to
enter into an agreement with the Federal government for use of real
property for the purposes of this subpart. Representatives of the
homeless interested in receiving a deed for a particular piece of
surplus Federal property must be section 501(c)(3) tax exempt.
Excess property means any property under the control of any Federal
executive agency that is not required for the agency's needs or the
discharge of its responsibilities, as determined by the head of the
agency pursuant to 40 U.S.C. 483.
GSA means the General Services Administration.
HHS means the Department of Health and Human Services.
Homeless means:
(1) An individual or family that lacks a fixed, regular, and adequate
nighttime residence; and
(2) An individual or family that has a primary nighttime residence
that is:
(i) A supervised publicly or privately operated shelter designed to
provide temporary living accommodations (including welfare hotels,
congregate shelters, and transitional housing for the mentally ill);
(ii) An institution that provides a temporary residence for
individuals intended to be institutionalized; or
(iii) A public or private place not designed for, or ordinarily used
as, a regular sleeping accommodation for human beings. This term does
not include any individual imprisoned or otherwise detained under an Act
of the Congress or a State law.
HUD means the Department of Housing and Urban Development.
ICH means the Interagency Council on the Homeless.
Landholding agency means a Federal department or agency with
statutory authority to control real property.
Lease means an agreement between either the Department of Health and
Human Services for surplus property, or landholding agencies in the case
of non-excess properties or properties subject to the Base Closure and
Realignment Act (Public Law 100-526; 10 U.S.C. 2687), and the
applicant, giving rise to the relationship of lessor and lessee for the
use of Federal real property for a term of at least one year under the
conditions set forth in the lease document.
Non-profit organization means an organization no part of the net
earnings of which inures to the benefit of any member, founder,
contributor, or individual; that has a voluntary board; that has an
accounting system or has designated an entity that will maintain a
functioning accounting system for the organization in accordance with
generally accepted accounting procedures; and that practices
nondiscrimination in the provision of assistance.
Permit means a license granted by a landholding agency to use
unutilized or underutilized property for a specific amount of time under
terms and conditions determined by the landholding agency.
Property means real property consisting of vacant land or buildings,
or a portion thereof, that is excess, surplus, or designated as
unutilized or underutilized in surveys by the heads of landholding
agencies conducted pursuant to section 202(b)(2) of the Federal Property
and Administrative Services Act of 1949 (40 U.S.C. 483(b)(2).)
Regional Homeless Coordinator means a regional coordinator of the
Interagency Council on the Homeless.
Representative of the Homeless means a State or local government
agency, or private nonprofit organization which provides, or proposes to
provide, services to the homeless.
Screen means the process by which GSA surveys Federal agencies, or
State, local and non-profit entities, to determine if any such entity
has an interest in using excess Federal property to carry out a
particular agency mission or a specific public use.
State Homeless Coordinator means a state contact person designated by
a state to receive and disseminate information and communications
received from the Interagency Council on the Homeless in accordance with
section 210(a) of the Stewart B. McKinney Act of 1987, as amended.
Suitable property means that HUD has determined that a particular
property satisfies the criteria listed in 581.6.
Surplus property means any excess real property not required by any
Federal landholding agency for its needs or the discharge of its
responsibilities, as determined by the Administrator of GSA.
Underutilized means an entire property or portion thereof, with or
without improvements which is used only at irregular periods or
intermittently by the accountable landholding agency for current program
purposes of that agency, or which is used for current program purposes
that can be satisfied with only a portion of the property.
Unsuitable property means that HUD has determined that a particular
property does not satisfy the criteria in 581.6.
Unutilized property means an entire property or portion thereof, with
or without improvements, not occupied for current program purposes for
the accountable executive agency or occupied in caretaker status only.
24 CFR 581.2 Applicability.
(a) This part applies to Federal real property which has been
designated by Federal landholding agencies as unutilized, underutilized,
excess or surplus and is therefore subject to the provisions of title V
of the McKinney Act (42 U.S.C. 11411).
(b) The following categories of properties are not subject to this
subpart (regardless of whether they may be unutilized or underutilized).
(1) Machinery and equipment.
(2) Government-owned, contractor-operated machinery, equipment, land,
and other facilities reported excess for sale only to the using
contractor and subject to a continuing military requirement.
(3) Properties subject to special legislation directing a particular
action.
(4) Properties subject to a Court Order.
(5) Property not subject to survey requirements of Executive Order
12512 (April 29, 1985).
(6) Mineral rights interests.
(7) Air Space interests.
(8) Indian Reservation land subject to section 202(a)(2) of the
Federal Property and Administrative Service Act of 1949, as amended.
(9) Property interests subject to reversion.
(10) Easements.
(11) Property purchased in whole or in part with Federal funds if
title to the property is not held by a Federal landholding agency as
defined in this Part.
24 CFR 581.3 Collecting the information.
(a) Canvass of landholding agencies. On a quarterly basis, HUD will
canvass landholding agencies to collect information about property
described as unutilized, underutilized, excess, or surplus, in surveys
conducted by the agencies under section 202 of the Federal Property and
Administrative Services Act (40 U.S.C. 483), Executive Order 12512, and
41 CFR part 101-47.800. Each canvass will collect information on
properties not previously reported and about property reported
previously the status or classification of which has changed or for
which any of the information reported on the property checklist has
changed.
(1) HUD will request descriptive information on properties sufficient
to make a reasonable determination, under the criteria described below,
of the suitability of a property for use as a facility to assist the
homeless.
(2) HUD will direct landholding agencies to respond to requests for
information within 25 days of receipt of such requests.
(b) Agency Annual Report. By December 31 of each year, each
landholding agency must notify HUD regarding the current availability
status and classification of each property controlled by the agency
that:
(1) Was included in a list of suitable properties published that year
by HUD, and
(2) Remains available for application for use to assist the homeless,
or has become available for application during that year.
(c) GSA Inventory. HUD will collect information, in the same manner
as described in paragraph (a) of this section, from GSA regarding
property that is in GSA's current inventory of excess or surplus
property.
(d) Change in Status. If the information provided on the property
checklist changes subsequent to HUD's determination of suitability, and
the property remains unutilized, underutilized, excess or surplus, the
landholding agency shall submit a revised property checklist in response
to the next quarterly canvass. HUD will make a new determination of
suitability and, if it differs from the previous determination,
republish the property information in the Federal Register. For
example, property determined unsuitable for national security concerns
may no longer be subject to security restrictions, or property
determined suitable may subsequently be found to be contaminated.
Effective Date Note: At 56 FR 23794, 23795, May 24, 1991, part 581
was added, except for 581.3 which will not become effective until
approved by the District Court for the District of Columbia, pending
further proceedings. The Department of Housing and Urban Development
will publish a document in the Federal Register at a later date
announcing the effective date.
24 CFR 581.4 Suitability determination.
(a) Suitability determination. Within 30 days after the receipt of
information from landholding agencies regarding properties which were
reported pursuant to the canvass described in 581.3(a), HUD will
determine, under criteria set forth in 581.6, which properties are
suitable for use as facilities to assist the homeless and report its
determination to the landholding agency. Properties that are under
lease, contract, license, or agreement by which a Federal agency retains
a real property interest or which are scheduled to become unutilized or
underutilized will be reviewed for suitability no earlier than six
months prior to the expected date when the property will become
unutilized or underutilized, except that properties subject to the Base
Closure and Realignment Act may be reviewed up to eighteen months prior
to the expected date when the property will become unutilized or
underutilized.
(b) Scope of suitability. HUD will determine the suitability of a
property for use as a facility to assist the homeless without regard to
any particular use.
(c) Environmental information. HUD will evaluate the environmental
information contained in property checklists forwarded to HUD by the
landholding agencies solely for the purpose of determining suitability
of properties under the criteria in 581.6.
(d) Written record of suitability determination. HUD will assign an
identification number to each property reviewed for suitability. HUD
will maintain a written public record of the following:
(1) The suitability determination for a particular piece of property,
and the reasons for that determination; and
(2) The landholding agency's response to the determination pursuant
to the requirements of 581.7(a).
(e) Property determined unsuitable. Property that is reviewed by HUD
under this section and that is determined unsuitable for use to assist
the homeless may not be made available for any other purpose for 20 days
after publication in the Federal Register of a Notice of unsuitability
to allow for review of the determination at the request of a
representative of the homeless.
(f) Procedures for appealing unsuitability determinations. (1) To
request review of a determination of unsuitability, a representative of
the homeless must contact HUD within 20 days of publication of notice in
the Federal Register that a property is unsuitable. Requests may be
submitted to HUD in writing or by calling 1-800-927-7588 (Toll Free).
Written requests must be received no later than 20 days after notice of
unsuitability is published in the Federal Register.
(2) Requests for review of a determination of unsuitability may be
made only by representatives of the homeless, as defined in 581.1.
(3) The request for review must specify the grounds on which it is
based, i.e., that HUD has improperly applied the criteria or that HUD
has relied on incorrect or incomplete information in making the
determination (e.g., that property is in a floodplain but not in a
floodway).
(4) Upon receipt of a request to review a determination of
unsuitability, HUD will notify the landholding agency that such a
request has been made, request that the agency respond with any
information pertinent to the review, and advise the agency that it
should refrain from initiating disposal procedures until HUD has
completed its reconsideration regarding unsuitability.
(i) HUD will act on all requests for review within 30 days of receipt
of the landholding agency's response and will notify the representative
of the homeless and the landholding agency in writing of its decision.
(ii) If a property is determined suitable as a result of the review,
HUD will request the landholding agency's determination of availability
pursuant to 581.7(a), upon receipt of which HUD will promptly publish
the determination in the Federal Register. If the determination of
unsuitability stands, HUD will inform the representative of the homeless
of its decision.
24 CFR 581.5 Real property reported excess to GSA.
(a) Each landholding agency must submit a report to GSA of properties
it determines excess. Each landholding agency must also provide a copy
of HUD's suitability determination, if any, including HUD's
identification number for the property.
(b) If a landholding agency reports a property to GSA which has been
reviewed by HUD for homeless assistance suitability and HUD determined
the property suitable, GSA will screen the property pursuant to
581.5(g) and will advise HUD of the availability of the property for use
by the homeless as provided in 581.5(e). In lieu of the above, GSA may
submit a new checklist to HUD and follow the procedures in 581.5(c)
through 581.5(g).
(c) If a landholding agency reports a property to GSA which has not
been reviewed by HUD for homeless assistance suitability, GSA will
complete a property checklist, based on information provided by the
landholding agency, and will forward this checklist to HUD for a
suitability determination. This checklist will reflect any change in
classification, i.e., from unutilized or underutilized to excess.
(d) Within 30 days after GSA's submission, HUD will advise GSA of the
suitability determination.
(e) When GSA receives a letter from HUD listing suitable excess
properties in GSA's inventory, GSA will transmit to HUD within 45 days a
response which includes the following for each identified property:
(1) A statement that there is no other compelling Federal need for
the property, and therefore, the property will be determined surplus;
or
(2) A statement that there is further and compelling Federal need for
the property (including a full explanation of such need) and that,
therefore, the property is not presently available for use to assist the
homeless.
(f) When an excess property is determined suitable and available and
notice is published in the Federal Register, GSA will concurrently
notify HHS, HUD, State and local government units, known homeless
assistance providers that have expressed interest in the particular
property, and other organizations, as appropriate, concerning suitable
properties.
(g) Upon submission of a Report of Excess to GSA, GSA may screen the
property for Federal use. In addition, GSA may screen State and local
governmental units and eligible nonprofit organizations to determine
interest in the property in accordance with current regulations. (See
41 CFR 101-47.203-5, 101-47.204-1 and 101-47.303-2.)
(h) The landholding agency will retain custody and accountability and
will protect and maintain any property which is reported excess to GSA
as provided in 41 CFR 101-47.402.
24 CFR 581.6 Suitability criteria.
(a) All properties, buildings and land will be determined suitable
unless a property's characteristics include one or more of the following
conditions:
(1) National security concerns. A property located in an area to
which the general public is denied access in the interest of national
security (e.g., where a special pass or security clearance is a
condition of entry to the property) will be determined unsuitable.
Where alternative access can be provided for the public without
compromising national security, the property will not be determined
unsuitable on this basis.
(2) Property containing flammable or explosive materials. A property
located within 2000 feet of an industrial, commercial or Federal
facility handling flammable or explosive material (excluding underground
storage) will be determined unsuitable. Above ground containers with a
capacity of 100 gallons or less, or larger containers which provide the
heating or power source for the property, and which meet local safety,
operation, and permitting standards, will not affect whether a
particular property is determined suitable or unsuitable. Underground
storage, gasoline stations and tank trucks are not included in this
category and their presence will not be the basis of an unsuitability
determination unless there is evidence of a threat to personal safety as
provided in paragraph (a)(5) of this section.
(3) Runway clear zone and military airfield clear zone. A property
located within an airport runway clear zone or military airfield clear
zone will be determined unsuitable.
(4) Floodway. A property located in the floodway of a 100 year
floodplain will be determined unsuitable. If the floodway has been
contained or corrected, or if only an incidental portion of the property
not affecting the use of the remainder of the property is in the
floodway, the property will not be determined unsuitable.
(5) Documented deficiencies. A property with a documented and
extensive condition(s) that represents a clear threat to personal
physical safety will be determined unsuitable. Such conditions may
include, but are not limited to, contamination, structural damage or
extensive deterioration, friable asbestos, PCB's, or natural hazardous
substances such as radon, periodic flooding, sinkholes or earth slides.
(6) Inaccessible. A property that is inaccessible will be determined
unsuitable. An inaccessible property is one that is not accessible by
road (including property on small off-shore islands) or is land locked
(e.g., can be reached only by crossing private property and there is no
established right or means of entry).
24 CFR 581.7 Determination of availability.
(a) Within 45 days after receipt of a letter from HUD pursuant to
581.4(a), each landholding agency must transmit to HUD a statement of
one of the following:
(1) In the case of unutilized or underutilized property:
(i) An intention to declare the property excess,
(ii) An intention to make the property available for use to assist
the homeless, or
(iii) The reasons why the property cannot be declared excess or made
available for use to assist the homeless. The reasons given must be
different than those listed as suitability criteria in 581.6.
(2) In the case of excess property which had previously been reported
to GSA:
(i) A statement that there is no compelling Federal need for the
property, and that, therefore, the property will be determined surplus;
or
(ii) A statement that there is a further and compelling Federal need
for the property (including a full explanation of such need) and that,
therefore, the property is not presently available for use to assist the
homeless.
24 CFR 581.8 Public notice of determination.
(a) No later than 15 days after the last 45 day period has elapsed
for receiving responses from the landholding agencies regarding
availability, HUD will publish in the Federal Register a list of all
properties reviewed, including a description of the property, its
address, and classification. The following designations will be made:
(1) Properties that are suitable and available.
(2) Properties that are suitable and unavailable.
(3) Properties that are suitable and to be declared excess.
(4) Properties that are unsuitable.
(b) Information about specific properties can be obtained by
contacting HUD at the following toll free number, 1-800-927-7588.
(c) HUD will transmit to the ICH a copy of the list of all properties
published in the Federal Register. The ICH will immediately distribute
to all state and regional homeless coordinators area-relevant portions
of the list. The ICH will encourage the state and regional homeless
coordinators to disseminate this information widely.
(d) No later than February 15 of each year, HUD shall publish in the
Federal Register a list of all properties reported pursuant to
581.3(b).
(e) HUD shall publish an annual list of properties determined
suitable but which agencies reported unavailable including the reasons
such properties are not available.
(f) Copies of the lists published in the Federal Register will be
available for review by the public in the HUD headquarters building
library (room 8141); area-relevant portions of the lists will be
available in the HUD regional offices and in major field offices.
24 CFR 581.9 Application process.
(OMB approval number 09370191)
(a) Holding period. (1) Properties published as available for
application for use to assist the homeless shall not be available for
any other purpose for a period of 60 days beginning on the date of
publication. Any representative of the homeless interested in any
underutilized, unutilized, excess or surplus Federal property for use as
a facility to assist the homeless must send to HHS a written expression
of interest in that property within 60 days after the property has been
published in the Federal Register.
(2) If a written expression of interest to apply for suitable
property for use to assist the homeless is received by HHS within the 60
day holding period, such property may not be made available for any
other purpose until the date HHS or the appropriate landholding agency
has completed action on the application submitted pursuant to that
expression of interest.
(3) The expression of interest should identify the specific property,
briefly describe the proposed use, include the name of the organization,
and indicate whether it is a public body or a private non-profit
organization. The expression of interest must be sent to the Division
of Health Facilities Planning (DHFP) of the Department of Health and
Human Services at the following address:
Director, Division of Health Facilities Planning, Public Health
Service, Room 17A-10, Parklawn Building, 5600 Fishers Lane, Rockville,
Maryland 20857.
HHS will notify the landholding agency (for unutilized and
underutilized properties) or GSA (for excess and surplus properties)
when an expression of interest has been received for a particular
property.
(4) An expression of interest may be sent to HHS any time after the
60 day holding period has expired. In such a case, an application
submitted pursuant to this expression of interest may be approved for
use by the homeless if:
(i) No application or written expression of interest has been made
under any law for use of the property for any purpose; and
(ii) In the case of excess or surplus property, GSA has not received
a bona fide offer to purchase that property or advertised for the sale
of the property by public auction.
(b) Application Requirements. Upon receipt of an expression of
interest, DHFP will send an application packet to the interested entity.
The application packet requires the applicant to provide certain
information, including the following --
(1) Description of the applicant organization. The applicant must
document that it satisfies the definition of a ''representative of the
homeless,'' as specified in 581.1 of this subpart. The applicant must
document its authority to hold real property. Private non-profit
organizations applying for deeds must document that they are section
501(c)(3) tax-exempt.
(2) Description of the property desired. The applicant must describe
the property desired and indicate that any modifications made to the
property will conform to local use restrictions except for local zoning
regulations.
(3) Description of the proposed program. The applicant must fully
describe the proposed program and demonstrate how the program will
address the needs of the homeless population to be assisted. The
applicant must fully describe what modifications will be made to the
property before the program becomes operational.
(4) Ability to finance and operate the proposed program. The
applicant must specifically describe all anticipated costs and sources
of funding for the proposed program. The applicant must indicate that
it can assume care, custody, and maintenance of the property and that it
has the necessary funds or the ability to obtain such funds to carry out
the approved program of use for the property.
(5) Compliance with non-discrimination requirements. Each applicant
and lessee under this part must certify in writing that it will comply
with the requirements of the Fair Housing Act (42 U.S.C. 3601-3619) and
implementing regulations; and as applicable, Executive Order 11063
(Equal Opportunity in Housing) and implementing regulations; title VI
of the Civil Rights Act of 1964 (42 U.S.C. 2000d to d-4)
(Nondiscrimination in Federally Assisted Programs) and implementing
regulations; the prohibitions against discrimination on the basis of
age under the Age Discrimination Act of 1975 (42 U.S.C. 6101-6107) and
implementing regulations; and the prohibitions against otherwise
qualified individuals with handicaps under section 504 of the
Rehabilitation Act of 1973 (29 U.S.C. 794) and implementing regulations.
The applicant must state that it will not discriminate on the basis of
race, color, national origin, religion, sex, age, familial status, or
handicap in the use of the property, and will maintain the required
records to demonstrate compliance with Federal laws.
(6) Insurance. The applicant must certify that it will insure the
property against loss, damage, or destruction in accordance with the
requirements of 45 CFR 12.9.
(7) Historic preservation. Where applicable, the applicant must
provide information that will enable HHS to comply with Federal historic
preservation requirements.
(8) Environmental information. The applicant must provide sufficient
information to allow HHS to analyze the potential impact of the
applicant's proposal on the environment, in accordance with the
instructions provided with the application packet. HHS will assist
applicants in obtaining any pertinent environmental information in the
possession of HUD, GSA, or the landholding agency.
(9) Local government notification. The applicant must indicate that
it has informed the applicable unit of general local government
responsible for providing sewer, water, police, and fire services, in
writing of its proposed program.
(10) Zoning and Local Use Restrictions. The applicant must indicate
that it will comply with all local use restrictions, including local
building code requirements. Any applicant which applies for a lease or
permit for a particular property is not required to comply with local
zoning requirements. Any applicant applying for a deed of a particular
property, pursuant to 581.9(b)(3), must comply with local zoning
requirements, as specified in 45 CFR part 12.
(c) Scope of evaluations. Due to the short time frame imposed for
evaluating applications, HHS' evaluation will, generally, be limited to
the information contained in the application.
(d) Deadline. Completed applications must be received by DHFP, at
the above address, within 90 days after an expression of interest is
received from a particular applicant for that property. Upon written
request from the applicant, HHS may grant extensions, provided that the
appropriate landholding agency concurs with the extension. Because each
applicant will have a different deadline based on the date the applicant
submitted an expression of interest, applicants should contact the
individual landholding agency to confirm that a particular property
remains available prior to submitting an application.
(e) Evaluations. (1) Upon receipt of an application, HHS will review
it for completeness, and, if incomplete, may return it or ask the
applicant to furnish any missing or additional required information
prior to final evaluation of the application.
(2) HHS will evaluate each completed application within 25 days of
receipt and will promptly advise the applicant of its decision.
Applications are evaluated on a first-come, first-serve basis. HHS will
notify all organizations which have submitted expressions of interest
for a particular property regarding whether the first application
received for that property has been approved or disapproved. All
applications will be reviewed on the basis of the following elements,
which are listed in descending order of priority, except that paragraphs
(e)(2)(iv) and (e)(2)(v) of this section are of equal importance.
(i) Services offered. The extent and range of proposed services,
such as meals, shelter, job training, and counseling.
(ii) Need. The demand for the program and the degree to which the
available property will be fully utilized.
(iii) Implementation Time. The amount of time necessary for the
proposed program to become operational.
(iv) Experience. Demonstrated prior success in operating similar
programs and recommendations attesting to that fact by Federal, State,
and local authorities.
(v) Financial Ability. The adequacy of funding that will likely be
available to run the program fully and properly and to operate the
facility.
(3) Additional evaluation factors may be added as deemed necessary by
HHS. If additional factors are added, the application packet will be
revised to include a description of these additional factors.
(4) If HHS receives one or more competing applications for a property
within 5 days of the first application HHS will evaluate all completed
applications simultaneously. HHS will rank approved applications based
on the elements listed in 581.8(e)(2), and notify the landholding
agency, or GSA, as appropriate, of the relative ranks.
24 CFR 581.10 Action on approved applications.
(a) Unutilized and underutilized properties.
(1) When HHS approves an application, it will so notify the applicant
and forward a copy of the application to the landholding agency. The
landholding agency will execute the lease, or permit document, as
appropriate, in consultation with the applicant.
(2) The landholding agency maintains the discretion to decide the
following:
(i) The length of time the property will be available. (Leases and
permits will be for a period of at least one year unless the applicant
requests a shorter term.)
(ii) Whether to grant use of the property via a lease or permit;
(iii) The terms and conditions of the lease or permit document.
(b) Excess and surplus properties. (1) When HHS approves an
application, it will so notify the applicant and request that GSA assign
the property to HHS for leasing. Upon receipt of the assignment, HHS
will execute a lease in accordance with the procedures and requirements
set out in 45 CFR part 12. In accordance with 41 CFR 101-47.402,
custody and accountability of the property will remain throughout the
lease term with the agency which initially reported the property as
excess.
(2) Prior to assignment to HHS, GSA may consider other Federal uses
and other important national needs; however, in deciding the
disposition of surplus real property, GSA will generally give priority
of consideration to uses to assist the homeless. GSA may consider any
competing request for the property made under section 203(k) of the
Federal Property and Administrative Services Act of 1949 (40 U.S.C.
484(k)) that is so meritorious and compelling that it outweighs the
needs of the homeless, and HHS may likewise consider any competing
request made under subsection 203(k)(1) of that law.
(3) Whenever GSA or HHS decides in favor of a competing request over
a request for property for homeless assistance use as provided in
paragraph (b)(2) of this section, the agency making the decision will
transmit to the appropriate committees of the Congress an explanatory
statement which details the need satisfied by conveyance of the surplus
property, and the reasons for determining that such need was so
meritorious and compelling as to outweigh the needs of the homeless.
(4) Deeds. Surplus property may be conveyed to representatives of
the homeless pursuant to section 203(k) of the Federal Property and
Administrative Services Act of 1949 (40 U.S.C. 484(k)(1), and section
501(f) of the McKinney Act as amended, 42 U.S.C. 11411. Representatives
of the homeless must complete the application packet pursuant to the
requirements of 581.9 of this part and in accordance with the
requirements of 45 CFR part 12.
(c) Completion of Lease Term and Reversion of Title. Lessees and
grantees will be responsible for the protection and maintenance of the
property during the time that they possess the property. Upon
termination of the lease term or reversion of title to the Federal
government, the lessee or grantee will be responsible for removing any
improvements made to the property and will be responsible for
restoration of the property. If such improvements are not removed, they
will become the property of the Federal government. GSA or the
landholding agency, as appropriate, will assume responsibility for
protection and maintenance of a property when the lease terminates or
title reverts.
24 CFR 581.11 Unsuitable Properties.
The landholding agency will defer, for 20 days after the date that
notice of a property is published in the Federal Register, action to
dispose of properties determined unsuitable for homeless assistance.
HUD will inform landholding agencies or GSA if appeal of an
unsuitability determination is filed by a representative of the homeless
pursuant to 581.4(f)(4). HUD will advise the agency that it should
refrain from initiating disposal procedures until HUD has completed its
reconsideration process regarding unsuitability. Thereafter, or if no
appeal has been filed after 20 days, GSA or the appropriate landholding
agency may proceed with disposal action in accordance with applicable
law.
24 CFR 581.12 No applications approved.
(a) At the end of the 60 day holding period described in 581.9(a),
HHS will notify GSA, or the landholding agency, as appropriate, if an
expression of interest has been received for a particular property.
Where there is no expression of interest, GSA or the landholding agency,
as appropriate, will proceed with disposal in accordance with applicable
law.
(b) Upon advice from HHS that all applications have been disapproved,
or if no completed applications or requests for extensions have been
received by HHS within 90 days from the date of the last expression of
interest, disposal may proceed in accordance with applicable law.
24 CFR 581.13 Waivers.
The Secretary may waive any requirement of this part that is not
required by law, whenever it is determined that undue hardship would
result from applying the requirement, or where application of the
requirement would adversely affect the purposes of the program. Each
waiver will be in writing and will be supported by documentation of the
pertinent facts and grounds. The Secretary periodically will publish
notice of granted waivers in the Federal Register.
24 CFR 581.13 PART 590 -- URBAN HOMESTEADING
Sec.
590.1 Scope and purpose of regulation.
590.3 Waiver authority.
590.5 Definitions.
590.7 Program requirements.
590.9 Listing of Federally-owned properties.
590.11 Applications.
590.13 Standards for HUD review and approval of a local urban
homesteading program.
590.15 Urban homesteading program participation agreement.
590.17 Transfer of HUD-owned property.
590.18 Reimbursement to FmHA, VA and RTC.
590.19 Use of section 810 funds.
590.21 Reservation of funds.
590.23 Program close-out.
590.25 Retention of records.
590.27 Audit.
590.29 HUD review of LUHA performance.
590.31 Corrective and remedial actions.
Authority: Sec. 810, Housing and Community Development Act of 1974
(12 U.S.C. 1706e); sec. 7(d), Department of Housing and Urban
Development Act (42 U.S.C. 3535(d)).
Source: 54 FR 23937, June 2, 1989, unless otherwise noted.
24 CFR 590.1 Scope and purpose of regulation.
(a) Scope. This part applies to the Urban Homesteading Program
authorized under section 810(b) of the Housing and Community Development
Act of 1974. The program is generally administered through the
Department's field offices, which can provide information to the public
about the States and localities participating, as well as technical
assistance to participants about applying for and operating the program.
(b) Purpose. The purpose of the Urban Homesteading Program is to use
existing housing stock to provide homeownership opportunities, primarily
for lower income families, thereby encouraging public and private
investment in selected neighborhoods and assisting in their preservation
and revitalization. The program provides for the transfer without
payment to a local urban homesteading agency (LUHA) of federally owned
properties for use in a HUD-approved local urban homesteading program.
24 CFR 590.3 Waiver authority.
HUD may waive any requirement of this part not required by law
whenever it determines that undue hardship would result from applying
the requirement, or where applying the requirement would adversely
affect achievement of the purposes of the program.
24 CFR 590.5 Definitions.
Act means section 810 of the Housing and Community Development Act of
1974, as amended from time to time.
Applicant means any State or unit of general local government that
applies for HUD approval of a local urban homesteading program under
these regulations.
Federally-owned property means any real property which the Secretary
of HUD, the Secretary of Agriculture, the Secretary of Veterans Affairs,
or the Director of the RTC (as receiver, or in its corporate capacity)
has power to dispose of, and which is:
(1) Improved with a one-to-four-family residence, including a
single-family dwelling unit in a condominium project;
(2) Unrepaired and not the subject of an outstanding repair or sales
contract; and
(3) Not occupied by an individual or family under a lease. (Property
of this nature is also referred to as ''HUD-owned property,''
''FmHA-owned property,'' ''VA-owned property,'' or ''RTC-owned
property'' when the context requires identification of the particular
agency.)
FmHA means the Farmers Home Administration, an agency within the U.S.
Department of Agriculture.
Homesteader means an individual or family that participates in a
local urban homesteading program by agreeing to rehabilitate and occupy
a property in accordance with 590.7(b)(5).
HUD means the U.S. Department of Housing and Urban Development.
Local urban homesteading agency (LUHA) means a State, a unit of
general local government, or a public agency or qualified community
organization designated in accordance with 590.7(c) by a State or a
unit of general local government.
Local urban homesteading program means the operating procedures and
requirements developed by a LUHA and approved by HUD in accordance with
this part for selecting and conveying federally-owned properties to
qualified homesteaders.
Lower income families means those families and individuals whose
adjusted incomes do not exceed 80 per centum of the median income for
the area, as determined by the Secretary under section 3(b)(2) of the
United States Housing Act of 1937. Under the provision of 24 CFR part
813, the Secretary's income limits for this purpose are updated annually
and are are available from the Housing Management Division in HUD field
offices.
Qualified community organization has the meaning specified in
590.7(c)(4).
RTC means the Resolution Trust Corporation.
Section 810 funds means funds available to reimburse HUD, FmHA, VA,
or RTC (as applicable) for federally-owned property transferred to LUHAs
in accordance with this part.
State means any State of the United States, any instrumentality of a
State approved by the Governor, and the Commonwealth of Puerto Rico.
Unit of general local government means any city, county, town,
township, parish, village, or other general purpose political
subdivision of a State, Guam, the Virgin Islands, or American Samoa, or
any general purpose political subdivision thereof; the District of
Columbia; the Trust Territory of the Pacific Islands; and Indian
tribes, bands, groups, and nations of the United States, including
Alaska Indians, Aleuts, and Eskimos.
Urban homesteading neighborhood means any geographic area approved by
HUD for the conduct of a local urban homesteading program that meets the
requirements of this part.
VA means the Department of Veterans Affairs.
(54 FR 23937, June 2, 1989, as amended at 54 FR 39525, Sept. 27,
1989; 56 FR 6808, Feb. 20, 1991)
24 CFR 590.7 Program requirements.
(a) Designation of urban homesteading neighborhood; coordinated
approach toward neighborhood improvement. The applicant shall designate
the neighborhood or neighborhoods in which it will carry out its local
urban homesteading program, and it shall develop a plan that provides
for the improvement of these neighborhoods through the homesteading
program and the upgrading of community services and facilities, and
through other measures needed to assure a suitable living environment,
in combination with any other public or private revitalization efforts
affecting the neighborhood. In general, the applicant should select
neighborhoods so that it can reasonably anticipate homesteading a
minimum of five (5) properties per year for the LUHA's overall program
during its first full year of operation and each program year
thereafter.
(b) Development of local urban homesteading program. The applicant
shall develop, in compliance with this part, a local urban homesteading
program containing the following major elements:
(1) Selection and management of properties. The program shall
include procedures for selecting federally-owned properties suitable for
homesteading and for managing the properties before conditional
conveyance to homesteaders. The program shall also provide that, by
accepting title to a property under this part, the LUHA assumes
liability for injury or damage to persons or property by reason of a
defect in the dwelling, its equipment or appurtenances, or for any other
reason related to ownership of the property.
(2) Homesteader selection. The program shall include equitable
procedures for homesteader selection which:
(i) Exclude prospective homesteaders who own other residential
property;
(ii) Take into account a prospective homesteader's capacity to make
or cause to be made the repairs and improvements required under the
homesteader agreement, including the capacity to contribute a
substantial amount of labor to the rehabilitation process, or to obtain
assistance from private sources, community organizations, or other
sources;
(iii) Provide that membership in, or other ties to, any private
organization (including a qualified community organization) may not be
made a factor affecting selection as a homesteader;
(iv) Include locally adopted criteria reasonably matching family size
to the number of bedrooms in each property for which a homesteader is
being selected, provided that a prospective homesteader who is a one
person household shall not be permitted to receive a property having
more than two bedrooms, unless there are no larger households on the
waiting list, notwithstanding the relative standing of the respective
households under the lower income priority (see 590.7(b)(2)(v)).
(v) Provide that, before a property is offered to other prospective
homesteaders who are eligible, the property will be offered to eligible
lower income families, except that properties obtained under the RTC's
Affordable Housing Disposition Program (12 CFR part 1609) must be
transferred to lower-income families; and
(vi) Include other reasonable selection criteria which are consistent
with this 590.7(b)(2) and which shall be specified in the applicant's
application pursuant to 590.11(a) and approved by HUD under 590.13.
Such selection criteria may include preferences for the selection of
neighborhood residents or other local residents, but only to the extent
that they are not inconsistent with this section and with affirmative
marketing objectives under 590.11(d)(5)(ii). Such preferences based on
residential location may not be based upon the length of time the
prospective homesteader has resided in the jurisdiction or the
neighborhood. Also, persons who are employed, or who have been notified
that they have been hired, in the jurisdiction shall be extended any
preference available to current residents.
(3) Conditional conveyance. The program shall provide for the
conditional conveyance of federally-owned properties to homesteaders
without any substantial consideration within one year, or less, of title
transfer to the LUHA, unless otherwise approved by HUD in writing prior
to the transfer.
(4) Financing. The program shall provide procedures for the LUHA to
undertake, or to assist the homesteader in arranging, financing for the
rehabilitation required under the homesteader agreement. Where direct
Federal loans under section 312 of the Housing Act of 1964 (42 USC
1452b) are used as a rehabilitation financing resource by the LUHA, the
LUHA shall make reasonable efforts to assist HUD in monitoring and
securing compliance with the terms of the loan during the homesteader's
conditional title period.
(5) Homesteader Agreement. The program shall provide for the
execution, concurrent with or as a part of the conditional conveyance,
of a homesteader agreement between the LUHA and the homesteader which
shall require the homesteader:
(i) To repair, within one year from the date of conditional
conveyance of the property to the homesteader, any defects that pose a
substantial danger to health and safety;
(ii) To make or cause to be made additional repairs and improvements
necessary to meet the applicable local standards for decent, safe, and
sanitary housing within three years from the date of conditional
conveyance of the property to the homesteader, and to comply with any
energy conservation measures designated by the LUHA as part of the
repairs;
(iii) To occupy the property as his or her principal residence for
not less than five consecutive years from the date of initial occupancy
except as otherwise approved in writing by HUD on a case-by-case basis
when emergency conditions make compliance with this requirement
infeasible;
(iv) To permit reasonable inspections at reasonable times by
employees or designated agents of the LUHA to determine compliance with
the agreement; and
(v) To surrender possession of, and any interest in, the property
upon material breach of the homesteader agreement (including default on
any rehabilitation financing secured by the property), as determined by
the LUHA in accordance with this part.
(6) Monitoring and selecting successor homesteaders. The program
shall provide that the LUHA will monitor the homesteader's compliance
with the homesteader agreement, will revoke the conditional conveyance
and homesteader agreement upon any material breach by the homesteader,
and, to the extent necessary and practicable, will select one or more
successor homesteaders for the property. The LUHA shall make reasonable
efforts to assure that any proposed successor homesteader assumes any
section 312 loan on the property, subject to HUD approval of the terms
of the assumption. If the LUHA selects a successor homesteader, it
shall require the successor homesteader to assume the original
homesteader's remaining obligations under his/her homesteader agreement
and conditional conveyance in compliance with this part. However, the
LUHA shall require the successor homesteader to occupy the property for
at least five consecutive years after he/she assumes these obligations
unless the LUHA requests and HUD approves a lesser occupancy period
where necessary to facilitate assumption of a Federal rehabilitation
loan under section 312 of the Housing Act of 1964 (42 USC 1452b) or any
other public or private financing. Such period will not be less than
the greater of (i) two additional years, or (ii) the remaining amount of
the original occupancy period.
(7) Fee simple title. The program shall provide for the conveyance
of fee simple title to the property from the LUHA to the homesteader, or
successor homesteader, without substantial consideration upon compliance
with the terms of the homesteader agreement and conditional conveyance.
(8) Homesteading infeasible; alternative use. If completion of
homesteading proves, in the judgment of HUD, to be infeasible for any
reason after a LUHA has accepted title to a federally-owned property,
the LUHA shall not demolish, dispose of, rent or otherwise convert the
property to its own use until HUD approves an alternative use consistent
with the coordinated approach to neighborhood improvement.
(c) Designation of LUHA -- (1) Responsibilities. Under the
requirements of this 590.7(c), the applicant shall designate a LUHA,
which shall have primary responsibility for administering the local
urban homesteading program for the applicant. The LUHA shall be the
legal entity that accepts title in its own name to federally-owned
properties conveyed by the applicable Federal agency with reimbursement
from section 810 funds and which conveys title to such properties to
homesteaders under paragraph (b) of this 590.7. Although the applicant
may at any time amend its local urban homesteading program to designate
a new LUHA, subject to HUD approval as described in 590.13-.15 of this
part, neither the applicant nor the designated LUHA may delegate or
contract out to another legal entity the function of accepting and
conveying in its own name title to properties for homesteading purposes
under this part. To the extent permitted by the applicant, the LUHA may
use third parties as contractors, consultants, or agents to assist if in
carrying out other functions and responsibilities with respect to the
local urban homesteading program, by entering into a written agreement
between the LUHA and the third party. No such agreement shall be deemed
to relieve the LUHA or the applicant of responsibility for the thrid
party's actions in connection with the local urban homesteading program.
(2) Identity of LUHA. The LUHA must have legal authority to carry
out a local urban homesteading program as described in this part,
including the authority to accept and convey title to properties under
paragraph (b) of this 590.7. To the extent consistent therewith, the
applicant State or unit of general local government may:
(i) Act as LUHA in its own name, while identifying within its
administrative organization a lead department or agency to act as the
primary contact point for HUD, VA, FmHA and RTC as described in
590.11(a)(7);
(ii) Designate, and enter into a written agreement with, a legally
separate public body or agency to act as LUHA in accordance with this
part; or
(iii) Designate and enter into a written agreement with, a qualified
community organization (as defined in 590.7(c)(4)) to act as LUHA in
accordance with this part.
(3) Content of Agreement with Designated Public Agency or Qualified
Community Organization. The applicant's written agreement with its
designated public agency or qualified community organization shall
contain at least the following provisions, and nothing inconsistent
therewith:
(i) The agreement of the LUHA to carry out the local urban
homesteading program, including the acceptance and conveyance of title
to properties for homesteading purposes, in accordance with the Act,
this part, and the applicant's HUD-approved urban homesteading
application;
(ii) The agreement of the LUHA to hold title (and the right of
reverter or other interest retained after conveyance of conditional
title to a homesteader) to former federally-owned properties conveyed to
it under this part in trust, solely for the purpose of conveying such
title to homesteaders (or for such alternative use as may be approved by
HUD) pursuant to this part, and not to convey, encumber or otherwise
deal with such property for its own benefit or account;
(iii) The agreement of the LUHA promptly to assign or convey title
and or other interests in properties held under this part to the
applicant, or to such new LUHA as may be designated by the applicant and
approved by HUD, if the applicant terminates the LUHA's designation;
and
(iv) The agreement of the applicant and the LUHA that the LUHA's
designation shall not relieve the applicant of full responsibility to
HUD for the conduct of the local urban homesteading program, and that
HUD may take any corrective or remedial action under this part against
the applicant, the LUHA, or both, solely at HUD's option.
(4) Definition of Qualified Community Organization. As used in this
part, the term ''qualified community organization'' means a private
non-profit corporation which is:
(i) Incorporated under applicable State or local enabling legislation
and which has the authority necessary to carry out the program;
(ii) Controlled by a board to directors whose members receive no
compensation of any kind for the performance of their duties; and
(iii) Is organized exclusively for charitable, educational, or
scientific purposes, or the promotion of social welfare, and qualifies
as an exempt organization under paragraph (3) or (4) of section 501(c)
of the Internal Revenue Code of 1986.
(54 FR 23937, June 2, 1989, as amended at 56 FR 6808, Feb. 20, 1991)
24 CFR 590.9 Listing of Federally-owned properties.
In order to facilitate planning for local urban homesteading
programs, HUD, FmHA, VA and RTC, upon request by a LUHA, each shall
provide the LUHA with a listing of all residential one-to-four-unit
properties, including single-family dwelling units in a condominium
project, in the LUHA's jurisdiction, which each has the power to dispose
of, and which are not subject to executed repair or sale contracts or
leases. The list of residential one-to-four-unit properties to be
provided by the RTC is limited to those properties obtained under the
RTC's Affordable Housing Disposition Program. The LUHA shall give the
public access to the list during ordinary business hours at the offices
of the LUHA.
(56 FR 6808, Feb. 20, 1991)
24 CFR 590.11 Applications.
(a) Initial application requirements. Applicants may submit an
initial application under this part to the responsible HUD Field Office
at any time during the year. Applications shall consist of:
(1) Standard Form-424;
(2) A map of each proposed urban homesteading neighborhood with
geographic boundaries indicated and census tracts shown;
(3) A brief statement of the local goals for the homesteading program
for each neighborhood selected;
(4) A description of the applicant's proposed homesteader selection
procedures which complies with 590.7(b)(2);
(5) The applicant's proposed legal documents which when read together
comply with 590.7(b) (3), (5), and (7);
(6) An estimate of the amount of section 810 funds to be used during
the current Federal fiscal year and a statement concerning the basis for
the estimate, including the number of properties expected to be acquired
during the year, prepared after consultation with HUD/FHA, FmHA, VA, and
RTC, as appropriate;
(7) The applicant's written agreement designating its LUHA which
complies with 590.7(c), or, if the applicant proposes to act as its own
LUHA, identification of the lead agency primarily responsible for
administration of the program;
(8) The certifications required by paragraph (d) of this section;
and
(9) Any additional documentation HUD specifically requests after
review of the initial application under 590.13.
(b) Annual Requests for Program Participation. (1) An applicant that
has previously submitted and received approval of an initial application
under paragraph (a) of this section shall notify the HUD Field Office in
writing on or before August 1 of each succeeding fiscal year if it
wishes to continue in the program. At the same time, the applicant
shall notify HUD of its estimate of the section 810 funds to be used
during the upcoming Federal fiscal year, along with an explanation of
the basis for the estimate, including the number of properties expected
to be acquired during the year, prepared after consultation with
HUD/FHA, FmHA, VA, and RTC, as appropriate.
(2) Participants with previously approved applications will be
required to submit the items described in paragraphs (a) (4), (5), (7),
(8), and (9) of section 590.11 with their annual request for program
participation for the first Federal fiscal year following the effective
date of this regulation. Except for those items, HUD will deem the
initial application still in effect as it was finally approved, unless
the applicant concurrently submits other amendments under paragraph (c)
of this section.
(c) Amendments. If the applicant wishes to change any element of its
local urban homesteading program that is specifically described in the
HUD-approved application (such as the identification of urban
homesteading neighborhoods or the designation of the LUHA to carry out
the program), the applicant shall submit its proposal to the HUD Field
Office for approval before making any such change. The proposal shall
identify specifically the elements to be changed, and shall set forth
the proposed amendment. Proposed amendments may be submitted with an
annual request for program participation or at any other time during the
program year.
(d) Certifications. As part of its application, the applicant shall
certify that:
(1) Except for States, the applicant's governing body has duly
adopted or passed an official act, resolution, motion, or similar action
authorizing the filing of the application, including all understandings
and assurances contained in these certifications.
(2) The LUHA possesses the legal authority to and will carry out the
local urban homesteading program described in its approved application
in accordance with this part, including the specific program
requirements described in 590.7(b).
(3) The LUHA has:
(i) An adequate administrative organization capable of carrying out
the program in a timely and cost effective manner;
(ii) Procedures for selecting and accepting property suitable for
homesteading and rehabilitation as required by 590.7(b)(1);
(iii) Procedures to assist in arranging, or for itself to undertake,
rehabilitation financing for property conveyed to homesteaders, as
required by 590.7(b)(4).
(iv) Procedures for monitoring the homesteader agreement and for
revoking a conditional conveyance upon material breach of the agreement,
and for selecting a successor homesteader as required by 590.7(b)(6);
and
(v) Procedures for conveying fee simple title to the residential
property received from HUD, FmHA, VA or RTC to the homesteader, without
substantial consideration, upon his or her full compliance with the
agreement required in 590.7(b)(7).
(4) The applicant or the LUHA has, before submission of the
application:
(i) Developed a plan for a coordinated approach toward neighborhood
improvement as required by 590.7(a); and
(ii) Provided citizens an adequate opportunity to express preferences
about the proposed location of the urban homesteading neighborhood or
neighborhoods, and to comment on the plan for a coordinated approach
toward neighborhood improvement.
(5) The applicant and LUHA will:
(i) Assure non-discrimination in the selection of homesteaders and
that no eligible person is denied equal opportunity for housing, or
excluded from equal participation in the homestead program, on the basis
of race, creed, color, national origin, age, sex or handicapping
condition and that it will comply with all requirements of Title VI of
the Civil Rights Act of 1964; Executive Order 11063; Title VIII of the
Civil Rights Act of 1968, as amended; section 504 of the Rehabilitation
Act of 1973; the Age Discrimination Act of 1975, section 562 of the
Housing and Community Development Act of 1987, and all applicable
regulations issued under these authorities, in any activity in its local
urban homestead program; and
(ii) Employ affirmative marketing procedures in the advertising of
homesteading properties.
(6) The LUHA will comply with the lead-based paint procedures set
forth in 24 CFR part 35 for properties constructed or substantially
rehabilitated prior to 1978.
(7) (i) The LUHA will submit any information which HUD requests for
the purpose of assisting HUD in meeting its environmental
responsibilities under 24 CFR part 50 and the Coastal Barrier Resources
Act of 1982.
(ii) The use of any funds provided under this part shall be subject
to sections 102(a) and 202(a) of the Flood Disaster Protection Act of
1973 which respectively requires owners of assisted flood-prone property
to purchase flood insurance and requires participation by the community
in the National Flood Insurance Program.
(8) The applicant and its designated LUHA will give HUD and the
Comptroller General, through their authorized representatives, access to
and the right to examine all records, books, papers, or documents
related to the local urban homesteading program.
(9) The LUHA will maintain in writing and on file a description of
its approved local urban homesteading program for public information and
review.
(54 FR 23937, June 2, 1989, as amended at 56 FR 6808, Feb. 20, 1991)
24 CFR 590.13 Standards for HUD review and approval of a local urban
homesteading program.
(a) Applications. The appropriate HUD Field Office will review an
applicant's initial application and the Field Office Manager will
approve the proposed local urban homesteading program, unless the Field
Office Manager determines that the program does not comply with the Act,
this part or other applicable laws and regulations, or that it is
plainly inappropriate or plainly inconsistent with available facts and
data. If the program is disapproved, HUD shall notify the applicant in
writing of the specific reasons.
(b) Annual requests for program participation and program amendments.
The HUD Field Office will review any proposed application amendments
and an applicant's annual request for program participation and will
approve the applicant's submission unless the Field Office Manager
determines that the proposal does not comply with the Act, this part, or
other applicable laws and regulations, is plainly inappropriate or
plainly inconsistent with available facts and data, or that the
applicant's past performance does not meet the standards of 590.29(a).
HUD will notify the applicant in writing of the specific reasons for any
disapproval. Program amendments will be considered approved as of the
date of HUD's written notification of approval to the applicant. Annual
requests for program participation will be considered approved as of the
date of HUD's written notification to the applicant of approval, or
notice of satisfaction of any approval conditions, whichever is later.
24 CFR 590.15 Urban homesteading program participation agreement.
Upon approval of an application, HUD, the State or unit of general
local government and the designated LUHA, if any, will execute an urban
homesteading program participation agreement in the form prescribed by
HUD. The agreement authorizes the LUHA to request HUD, VA, FmHA, and
RTC to transfer properties to the LUHA under the provisions of this
part, to the extent that funds available are sufficient to reimburse the
Federal agency for the properties. The agreement also obligates the
LUHA to use the properties in accordance with the Act, this part, other
applicable laws and regulations, and its approved application. However,
the agreement does not obligate HUD, FmHA, VA or RTC to transfer a
specific number of properties or particular properties identified in a
program application, or a program amendment.
(56 FR 6808, Feb. 20, 1991)
24 CFR 590.17 Transfer of HUD-owned property.
(a) Property disposition assistance. HUD's property disposition
activity shall support local urban homesteading programs as follows:
(1) After execution of its initial urban homesteading agreement, but
before the initial selection of any HUD-owned property, a LUHA may
request HUD to suspend its routine property disposition activity for up
to 45 days for HUD-owned properties listed under 590.9 and identified
by the LUHA as located in a HUD-approved urban homesteading
neighborhood. Based upon this request, HUD shall state in writing the
starting and closing dates of the suspension of property disposition
activity for all such identified HUD-owned properties. During this
period, the LUHA may notify the HUD Field Office of specific HUD-owned
properties that it intends to use in its local urban homesteading
program under this part.
(2) With respect to properties coming into HUD's inventory later, the
HUD Field Offices shall develop and implement property disposition plans
for HUD-owned properties located in HUD-approved urban homesteading
neighborhoods. These plans shall include the following procedures:
(i) As soon as feasible, but in no event later than ten days after
HUD receives a notice of property transfer and application for insurance
benefits for a HUD-owned property located in a HUD-approved urban
homesteading neighborhood, the HUD Field Office shall notify the LUHA in
writing of the potential availability of the property for homesteading.
(ii) The HUD Field Office shall not approve a property disposition
program for a HUD-owned property until the LUHA has informed the Field
Office, in writing, whether or not it intends to use the property in the
local urban homesteading program, or until 21 days from the date of
HUD's notice, whichever comes first. The Field Office Manager may
extend the 21-day deadline if the Field Office Manager makes a written
determination that notification by the LUHA within 21 days is
impracticable.
(b) Conditions for transferring HUD-owned properties. Except as
provided in paragraph (c) of this section, HUD shall offer to transfer
the title of a HUD-owned property to a LUHA, without payment, if:
(1) The property is located in a HUD-approved urban homesteading
neighborhood;
(2) The LUHA has notified the HUD Field Office, within the applicable
period specified in paragraph (a)(1) or (a)(2)(ii) of this section, that
it intends to use the property in the local homesteading program;
(3) HUD has reserved section 810 funds in an amount sufficient to
reimburse the applicable housing loan or mortgage insurance accounts for
the estimated as-is fair market value of the property, or a negotiated
lesser amount, plus closing costs as approved by HUD; and
(4) The HUD Field Office determines that the requested property is
suitable for the approved local urban homesteading program, as follows:
(i) The agreed-upon transfer value of the property does not exceed
$25,000 (excluding closing costs) for a one-unit single family residence
and an additional $8,000 for each additional unit of two- to four-family
residences; or
(ii) The Field Office Manager authorizes, on a property-by-property
basis, the transfer of a HUD-owned property where the agreed-upon
transfer value exceeds the preceding limitations if the benefit to the
community expected from the expedited occupancy of the property, and the
expected reduction of difficulties and delays (such as vandalism to the
property) that HUD typically encounters in the disposition and sale of
property, warrant the additional cost to the Federal government.
(c) Exceptions. (1) If a LUHA fails to accept title within 30 days
of its acceptance of HUD's offer of a property for a specific price in
accordance with paragraphs (b)(1) through (4) of this section, HUD may
approve an alternative disposition plan for the property. The HUD Field
Office Manager may extend, for a reasonable period of time, this 30-day
deadline if the HUD Field Office Manager makes a written determination
that acceptance of title by the LUHA within 30 days of property
selection is impracticable. A reservation made under paragraph (b)(2)
of this section may be cancelled by HUD if the closing for the
applicable property does not occur within the time permitted under this
paragraph (c)(1).
(2) A property otherwise eligible for transfer to a LUHA may be used
to meet higher priority needs if the Field Office Manager makes a
determination in writing that the property is essential to meet an
existing legal obligation such as:
(i) Settlement of a sales warranty claim;
(ii) Settlement of a claim under section 518 of the National Housing
Act for critical structural defects in certain one- to four-family
dwellings;
(iii) Emergency housing needs (disaster housing and urgent public
housing needs, such as providing shelter for the homeless);
(iv) Reconveyance for noncompliance with 24 CFR 203.363;
(v) Reconveyance pursuant to a Civil Frauds Act settlement;
(vi) Reconveyance where the mortgage was never insured; and
(vii) Other legal obligations as determined by HUD.
24 CFR 590.18 Reimbursement to FmHA, VA and RTC.
The Secretary shall reimburse FmHA, VA or RTC from LUHA's section 810
funds in an amount agreed to between the LUHA and the respective Federal
agency for each agency's property plus approved closing costs under the
following conditions:
(a) The property is located in a HUD-approved urban homesteading
neighborhood;
(b) HUD has reserved section 810 funds in an amount sufficient to
support the agreed reimbursement, including closing costs;
(c) The reimbursement (excluding closing costs) does not exceed the
lesser of the amounts specified in paragraphs (c) (1), (2) or (3) of
this section:
(1)(i) $25,000 for a one-unit single family residence, plus $8,000
for each additional unit of a two- to four-family residence; or
(ii) An amount greater than the amount in paragraph (c)(1)(i) of this
section, if authorized by the HUD Field Office Manager on a
property-by-property basis, where the benefit to the community expected
from the expedited occupancy of the property, and the expected reduction
of difficulties and delays (such as vandalism to the property) that HUD
typically encounters in the disposition and sale of similar property,
warrant the additional cost to the Federal government; or
(2) The amount certified by FmHA or VA to be a fair value for the
property based on the lesser of the market value or the amount of FmHA's
or VA's claim plus the expenses connected with Federal ownership; or
(3) The amount certified by RTC as the applicable price consistent
with RTC pricing policies in effect at the time; and
(d) The property has been conveyed to a LUHA for use in a
HUD-approved local urban homesteading program. The closing shall occur
not longer than 30 days after the reservation is made under paragraph
(b) of this section, and the reservation may be cancelled by HUD if it
does not.
(54 FR 23937, June 2, 1989, as amended at 56 FR 6808, Feb. 20, 1991)
24 CFR 590.19 Use of section 810 funds.
Section 810 funds may be used to reimburse HUD, VA, FmHA or RTC for
federally-owned properties. Section 810 funds may not be used to
reimburse LUHAs for administrative costs, nor may they be used to
acquire property other than through reimbursement for federally-owned
property. Participants receiving Community Development Block Grant
(CDBG) funds may charge eligible administrative expenses incurred in
operating their urban homesteading programs to their otherwise available
CDBG administrative funds, provided such administrative expenditures
would satisfy other Title I requirements.
(56 FR 6809, Feb. 20, 1991)
24 CFR 590.21 Reservation of funds.
After execution of the applicant's urban homesteading program
participation agreement during the first program year, and thereafter
following approval of the applicant's annual request for program
participation, HUD will reserve funds to reimburse the FHA Fund, HUD's
Rehabilitation Loan Fund, FmHA, VA, or RTC when specific properties are
identified for transfer to the LUHA, as stated in 590.17 or 590.18.
Funds will be reserved by HUD on a first-come, first-served basis
subject to availability from the applicable field office subassignment,
except that field offices may designate a temporary minimum initial
allocation of section 810 funds to be exclusively available for each
participating LUHA for a period not to exceed 90 days from the date the
LUHA is notified of such temporary allocation. During the term of the
temporary allocation, all reservations made under 590.17 or 590.18 on
behalf of the particular LUHA for specific properties shall be charged
to the allocation. After the temporary allocation has been used, or has
expired, the LUHA shall compete for reservations from the balance of the
Field Office subassignment with other LUHAs in the Field Office
jurisdiction. At any time during a fiscal year, HUD may decline making
funds available when in HUD's judgment the LUHA's performance does not
meet the standards set out in 590.29(a) or when, due to market
conditions in the area, there are an insufficient number (generally less
than five) of affordable, federally-owned properties available to
warrant continuation in accordance with 590.7(a) and 590.13.
(54 FR 23937, June 2, 1989, as amended at 56 FR 6809, Feb. 20, 1991)
24 CFR 590.23 Program close-out.
(a) Initiation of close-out. This section prescribes procedures for
program close-out when continuing a program is no longer feasible or
where the beneficial results are not commensurate with the further
expenditure of section 810 funds in a locality's designated urban
homesteading neighborhoods. The LUHA will institute close-out
procedures, in accordance with HUD instructions, when one or more of the
following occurs:
(1) The LUHA determines that it does not have the capacity to
continue administering the program in a timely and cost-effective
manner;
(2) HUD terminates the LUHA's program because the LUHA's performance
does not meet the standards specified in 590.29(a); or
(3) HUD terminates the LUHA's program because the LUHA did not
acquire any federally-owned properties in the previous two Federal
fiscal years and because local market conditions demonstrate that an
insufficient number of affordable, federally-owned properties is likely
to be available for the next Federal fiscal year.
(b) Close-out may be subject to later audit in accordance with
590.27(b).
(c) Close-Out Conditions. Upon completion of HUD close-out review,
HUD will send the LUHA a letter of completion, which HUD may condition.
Conditions may reflect unmet obligations, deadlines to meet them, and a
statement of any required interim reporting procedures. In addition to
any other conditions that may be specifically set forth in the letter of
completion, the LUHA remains reponsible after close-out to take whatever
actions may be necessary to enforce the homesteader agreement and
complete final fee simple conveyance to the homesteader or a successor
homesteader, or to obtain alternative use approval from HUD under
590.7(b)(8), for properties conveyed to the LUHA for homesteading prior
to close-out. LUHAs are required to report to HUD on a quarterly basis
until each property has been conveyed in fee simple title to the
homesteader.
(d) Monitoring of closed-out programs. HUD shall monitor closed-out
programs to determine compliance with any conditions imposed under
paragraph (c) of this section, the certifications under 590.11(d), the
Act, this part and other applicable Federal laws and regulations until
the LUHA transfers fee simple title to all federally-owned properties to
the homesteader, or until HUD approves an alternative use and the LUHA
implements it under 590.7(c).
24 CFR 590.25 Retention of records.
The LUHA shall maintain adequate financial records, property
disposition documents, supporting documents, statistical records, and
all other records pertinent to the local urban homesteading program
until fee simple title has been conveyed to all homesteaders, generally
a five-year period. The LUHA will also maintain current and accurate
data on the race and ethnicity of program beneficiaries.
24 CFR 590.27 Audit.
(a) Access to records. The Secretary, the Comptroller General of the
United States, or any of their duly authorized representatives, shall
have access to all books, accounts, records, reports, files, and other
papers or property of LUHAs pertaining to funds or property transferred
under this part, for the purpose of making surveys, audits,
examinations, excerpts, and transcripts.
(b) Audit. The LUHA's financial management system shall provide for
audits in accordance with 24 CFR part 44.
24 CFR 590.29 HUD review of LUHA performance.
(a) HUD shall review the performance of each LUHA that has an urban
homesteading program participation agreement at least once each Federal
fiscal year to determine whether:
(1) The program complies with the urban homesteading program
participation agreement and certifications, the Act, this part, and
other applicable Federal laws and regulations;
(2) The LUHA is carrying out its program substantially as approved by
HUD;
(3) The federally-owned properties the LUHA selects are suitable for
homesteading and rehabilitation;
(4) The LUHA is making reasonable progress in moving properties
through the stages of the homesteading process, including acquisition,
homesteader selection, conditional conveyance, rehabilitation, and final
conveyance, and is not making an unreasonable number of requests for
extension of the time periods specified in 590.17 (a)(2)(ii) and
(c)(1);
(5) The improvements in neighborhood public facilities and services
provided for in the coordinated approach toward neighborhood improvement
are occurring on a timely basis; and
(6) The LUHA has a continuing administrative and legal capacity to
carry out the approved program in a cost-effective and timely manner.
(b) In reviewing a LUHA's performance, HUD will consider all
available evidence, which may include, but need not be limited to, the
following:
(1) Records maintained by the LUHA;
(2) Results of HUD's monitoring of the LUHA's performance;
(3) Audit reports, whether conducted by the LUHA or by HUD auditors;
(4) Records of comments and complaints by citizens and organizations;
and
(5) Litigation history.
(c) LUHAs shall supply data and make available records necessary for
HUD's annual evaluation of the LUHA's local urban homesteading program.
24 CFR 590.31 Corrective and remedial action.
When HUD determines on the basis of its review that the LUHA's
performance does not meet the standards specified in 590.29(a), HUD
shall take one or more of the following corrective or remedial actions,
as appropriate in the circumstances:
(a) Issue a letter of warning that advises the LUHA of the deficiency
and puts it on notice that HUD will take more serious corrective and
remedial action if the LUHA does not correct the deficiency, or if it is
repeated;
(b) Advise the LUHA to suspend, discontinue or not incur costs for
identified defective aspects of the local program;
(c) Condition the approval of the annual request for program
participation if there is substantial evidence of a lack of progress,
noncompliance, or a lack of continuing capacity. In such cases, HUD
shall specify the reasons for the conditional approval and the actions
necessary to remove the conditions;
(d) In cases of continued substantial noncompliance, terminate the
urban homesteading program participation agreement, close out the
program and advise the LUHA of the reasons for such action; or
(e) Where HUD determines that a LUHA has, contrary to its obligations
under 590.7(b), converted a property received under this part to its
own use, failed to adequately preserve and protect the property, failed
to timely secure a homesteader for the property, or received excessive
consideration for conveyance of the property, HUD may direct the LUHA to
repay to HUD either the amount of compensation HUD finds that the LUHA
has received for the property or the amount of section 810 funds
expended for the property, as HUD determines appropriate.
24 CFR 590.31 Part 595
24 CFR 590.31 PART 595 -- NEIGHBORHOOD SELF-HELP DEVELOPMENT PROGRAM
Sec.
595.101 Purpose.
595.102 Definitions.
595.103 Eligible applicants.
595.104 Eligible projects and activities.
595.105 Ineligible activities.
595.106 Project selection criteria.
595.107 Eligibility for other forms of assistance.
595.108 Local Government certification.
595.109 (Reserved)
595.110 Application requirements.
595.111 Program administration.
595.112 Other program requirements.
Authority: Title VII of the Housing and Community Development
Amendments of 1978 (42 U.S.C. 8123).
Source: 44 FR 60936, Oct. 22, 1979, unless otherwise noted.
Redesignated at 47 FR 5886, Feb. 9, 1982.
24 CFR 595.101 Purpose.
The purpose of this program is to assist neighborhood organizations,
through grants and other forms of assistance, to increase their capacity
to effectively plan, finance, package and manage various housing,
community and economic development projects which result in the
revitalization of low- and moderate-income neighborhoods and which
directly benefit the residents of those neighborhoods. The intent of
the program is to encourage and support such projects as identified and
developed by neighborhood organizations which are in the best position
to determine the most appropriate ways to satisfy their neighborhoods'
revitalization needs. The program will also provide assistance to
neighborhood organizations to work in partnership with the public and
private sectors to prepare and implement projects. Certification by the
unit of general local government is required for each project being
proposed by neighborhood organizations.
24 CFR 595.102 Definitions.
(a) Act means the Neighborhood Self-Help Development Act of 1978,
Title VII of the Housing and Community Development Amendment of 1978.
(b) Neighborhood means, for the purpose of this program, a distinct
geographical area which has a readily identifiable residential
population. Ordinarily in urban and suburban areas, in cities with over
10,000 in population, a neighborhood is an area smaller than a city.
Some of the factors which could be demonstrated in defining a
neighborhood include:
(1) A sense of belonging or identity that ties residents to a given
area;
(2) Social, cultural, political, or economic activities around which
people organize themselves;
(3) The existence of cohesive organizations formed by residents;
(4) A history of acting or being treated as a distinct or cohesive
unit.
(i) Examples of this definition include: An area which is
geographically separated from the rest of the city by a river and two
highways and is known as the South End neighborhood; an area of several
blocks of multi-family buildings where tenants have worked on several
projects and which is identified by name; one, two or more adjacent
public housing projects which have become identified as the Joseph
project or area or community; a commercial area with residential areas
adjacent to the main retail street which is known by both residents and
business owners as the Loeste neighborhood.
(ii) In rural areas and in small cities with under 10,000 in
population, there are active, community-based organizations which share
all of the characteristics and carry out the functions of neighborhood
development organizations in more populous areas. However, the target
areas served are small cities or regions within a rural area.
(iii) Projects proposed by such organizations will be considered
neighborhood projects if they meet the other requirements of this Act (
595.103 and 595.104). Wherever the word neighborhood appears in the
following regulations, it should be read as applying also to the target
area, or areas, designated by an organization in a small city or rural
area.
(c) Low- and moderate-income for the purpose of this program, means
the following: Moderate-income is defined as persons whose income does
not exceed 80 percent of the median income of all residents in the
county; low-income is defined as persons whose income does not exceed
50 percent of the median income of all residents in the county.
(44 FR 60936, Oct. 22, 1979. Redesignated at 47 FR 5886, Feb. 9, 1982
and amended at 50 FR 12789, Apr. 1, 1985)
24 CFR 595.103 Eligible applicants.
To be eligible, the applicant must be a voluntary, non-profit
organization which meets each of the following criteria. The applicant
must provide evidence which documents how each criterion has been met.
(a) The organization must be broadly representative of the
neighborhood in which the project will be located. This may include
representation from local businesses, financial, governmental and
non-governmental entities. The applicant organization must provide
evidence that its membership, its board of directors or the structure
governing the project being proposed (see 595.103(b) of this part) has
an economic, racial, ethnic, age and sexual composition appropriate to
the neighborhood where the proposed project will be located;
(b) The organization must be accountable to neighborhood residents
with respect to the project being proposed. The applicant organization
must provide and must describe a structure through which it is
accountable to neighborhood residents for the proposed project. That
structure may be the permanent corporate structure of the applicant
organization or may be a structure of the applicant created specifically
for the project being proposed.
(c) The organization must have as one of its objectives the
preservation and revitalization of such neighborhoods. The applicant
organization may submit its charter, by-laws, articles of incorporation,
mission statements, minutes from board meetings, or other organizational
documents which state this objective or may describe its past activities
which demonstrate that it embraces this objective;
(d) The organization must be found by the Secretary to have a proven
record or demonstrable capacity for developing resources for, and
effectively implementing, neighborhood conservation and revitalization
projects. In order for the Secretary to make such a determination, the
applicant organization must provide evidence of:
(1) Successful past or present neighborhood revitalization activities
or activities comparable to the neighborhood revitalization project
being proposed; and
(2) Existing management expertise for development and administration
of the neighborhood projects proposed.
(i) The applicant organization will be responsible for documenting
either its proven record or demonstrable capacity.
(ii) Both in the program area and in management ability applicant
organizations may either have a proven record in the same type project
as that which they propose, or they may have demonstrated a capacity for
the project they propose by their success in a different type of project
but one which required comparable program development and management
skill.
(iii) Some examples of groups with a sufficient ''proven record''
are: A non-profit housing sponsor which has purchased and successfully
managed several multi-family buildings now proposes to purchase,
rehabilitate and manage several new properties; a neighborhood
development organization which has done several improvement projects on
a commercial strip now proposes to develop a vacant piece of property on
the strip for a new supermarket. Some examples of groups with a
''demonstrable capacity'' for the programs they propose are: A tenants'
organization with experience in housing management which now proposes to
purchase the building for conversion to a cooperative; a multi-service
neighborhood center with experience in running programs (i.e., food
stamps, youth employment, social services) now proposes to design,
finance and build a neighborhood retail project which results in job
creation. The track record or capability of the applicant will be
evaluated with respect to the scale and type of project being proposed;
(iv) All applicants must demonstrate their management capacity for
the project they propose by documenting the skills and experience of
their staff; the fiscal, personnel and program monitoring systems they
are using; and their ability to retain and control the type of
consultants needed for the project.
(e) The organization must be incorporated as a non-profit
organization. The applicant organization must submit a copy of its
Articles of Incorporation.
(f) The organization must have a Board of Directors, composed chiefly
of elected persons who are other than paid staff of the organization,
though a small number of paid corporate officers may be part of the
Board. The applicant organization must submit a list of the names,
occupations and addresses of the Board of Directors.
(g) The organization must have financial records in an auditable
form, or must have had an audit of its financial records within the year
prior to application.
HUD will endeavor to select a variety of applicant organizations by
size, type and term of existence. Special attention will be given to
applicants in non-metropolitan areas and in cities under 10,000 in
population so that they receive a reasonable amount of funding available
under this Act.
(44 FR 60936, Oct. 22, 1979. Redesignated at 47 FR 5886, Feb. 9, 1982
and amended at 50 FR 12789, Apr. 1, 1985)
24 CFR 595.104 Eligible projects and activities.
Any housing, community and economic development projects which are
not excluded under 595.105 and which contribute to the revitalization
of low- and moderate-income neighborhoods and directly benefit the
residents of those neighborhoods, will be eligible under this program.
Examples include:
(a) Neighborhood-initiated housing rehabilitation;
(b) Creative reuse of existing buildings;
(c) Neighborhood commercial revitalization;
(d) Neighborhood economic development;
(e) Energy conservation and weatherization projects.
(1) HUD will select projects to create a balance between the variety
of types and sizes of eligible projects.
(2) Grants and other forms of assistance under this program may
support any activities necessary to prepare and implement specific
neighborhood housing, economic and community development projects.
(3) Preparation activities eligible under this program include, but
are not limited to: Architectural services including services for
making buildings and facilities accessible to and usable by the
physically handicapped; rehabilitation specifications; financial
planning and packaging; and land acquisition.
(4) While implementation costs are eligible, the intent of the
program is to fund only a small portion of the full costs of
implementation. Especially where part of the capital or construction
costs is requested, the program will require maximum use of other public
and private financing. Examples of acceptable implementation costs are:
A portion of the equity infusion in a local development corporation
commercial project; or construction management costs of a housing or
economic development project whose capital cost is funded by other
sources.
(44 FR 60936, Oct. 22, 1979. Redesignated at 47 FR 5886, Feb. 9, 1982
and amended at 50 FR 12789, Apr. 1, 1985)
24 CFR 595.105 Ineligible activities.
The following activities will not be eligible for assistance under
this program:
(a) Planning functions which are not directly combined with project
implementation;
(b) Public works such as street repairs which are not associated with
the specific project being funded;
(c) Operating social services which are not associated with the
specific project to be funded;
(d) Economic development which will not primarily benefit the
residents of the neighborhood in which it will be located; and
(e) Operating costs of a community group which are not associated
with the specific projects being funded;
24 CFR 595.106 Project selection criteria.
Any project being proposed by applicant organizations must meet each
of the following criteria to some extent and provide evidence which
documents the extent to which each of these criteria will be met:
(a) Projects must be related to and supportive of a conservation or
revitalization strategy for the neighborhood in which the project is
located. The applicant organization will be expected to document the
needs and opportunities of the neighborhood; how the organization has
planned to address those needs and opportunities over time; and how the
proposed project fits into that strategy. The revitalization needs
statement may include such factors as: Level of disinvestment,
abandoned properties and other unused facilities; unemployment and
income data; housing deterioration; lack of business providing
essential goods and services; special levels of need of low- and
moderate-income residents in portions of the neighborhood; the
existence of architectural barriers to the physically handicapped.
(b) Projects must, to the extent feasible, include a self-help
component which may involve a contribution of time or resources by
neighborhood residents. The self-help component may include resources
involved in project planning, preparation, implementation and/or
evaluation. The level of self-help will be evaluated in comparison to
the type of project being proposed by the applicant;
(c) Projects must directly benefit the residents of a low- or
moderate-income neighborhood. The applicant will be expected to address
this requirement in the proposal. Examples of projects which directly
benefit low- and moderate-income residents may include:
(1) A project where eligibility is based on income criteria limiting
the benefits to low- or moderate-income persons;
(2) Rehabilitation of multi-family buildings, or other facilities,
for low- or moderate-income residents which results in their management
or ownership of the building;
(3) Non-profit organization sponsorship of single family housing
acquisition and rehabilitation to preserve neighborhood housing
resources for low income residents;
(4) Establishment of neighborhood-based housing trusts or
cooperatives to own and manage multi-family properties for low- and
moderate-income residents;
(5) Acquisition by a neighborhood development organization
representing low- and moderate-income people of a capital asset
essential to accomplishment of the organization's strategy for
revitalization of the community;
(6) Neighborhood non-profit sponsorship of congregate housing
programs including health, homemaker and other essential services to
prevent displacement of senior citizens in revitalizing neighborhoods;
(7) Neighborhood stabilization projects which are directed toward
preventing or minimizing the displacement of current residents.
In evaluating how the proposed project directly benefits low- and
moderate-income residents, HUD will consider the extent to which the
proposed project eliminates or reduces the magnitude of the special
problems of low- and moderate-income persons and minorities (e.g., the
relative levels of unemployment and underemployment, discrimination in
housing and employment, locational impaction, and lack of sufficient
supportive services and facilities).
(d) Projects must, to the extent feasible, involve leveraging of
resources available from the private sector. The level of private
support will be evaluated relative to the level of risk in the project
and the likelihood of the private sector to support the specific type of
project. Private sector resources may include other than direct
financial support of projects; for example, technical assistance and
voluntary involvement of representatives from the private sector;
(e) Projects must, to the extent feasible, involve the coordination
of resources available from the local, state or Federal Government.
Applicant organizations will be expected to indicate those public
programs which will be supportive of the implementation of proposed
projects including: The Community Development Block Grant (CDBG), Urban
Development Action Grants (UDAG), Section 8, Section 202 and/or programs
from other agencies.
(f) The applicant organization must demonstrate that the residents of
the neighborhood where the project will be located, and particularly
residents who will be directly affected by the project, have been and
will continue to be actively involved in, and supportive of, the
selection of the project, and will continue to be involved in project
development, implementation, and evaluation through an effective and
continuing participation mechanism. The applicant organization must
describe its method of resident participation in each stage of project
development including those stages of project completed prior to
submitting an application; and
(g) The applicant organization must provide evidence that funding
sources identified in accordance with paragraphs (d) and (e) of this
section support the project and can make funds available contingent on
the progress of the project. For organizations which propose
implementation projects, written documentation must be provided, to
demonstrate the interest, commitment and level of involvement of other
funding sources for the project. Funding sources may include public,
private and self-help organizations.
24 CFR 595.107 Eligibility for other forms of assistance.
(a) Under this program, neighborhood organizations may apply for
grants and/or other forms of assistance for the development of specific
neighborhood revitalization projects. Assistance to applicant
organizations will include training, on-site consultants and other forms
of information exchange directed at organizational and financial
management, project coordination, development of comprehensive
neighborhood revitalization strategies, and techniques in proposal
writing and project packaging. Assistance in preparing specific
projects will be offered, as long as the proposal contains the local
government certification ( 595.108).
(b) Assistance directly through HUD or through contracts and
cooperative agreements will be provided to neighborhood organizations
which request capacity-building technical assistance to enable them to
engage in local partnerships with government and the private sector.
This assistance will always include support to neighborhood
organizations to plan, prepare and implement specific revitalization
projects.
24 CFR 595.108 Local Government certification.
An applicant organization must submit, as a part of its proposal, a
letter from the chief elected official of the most immediate
jurisdiction of general local government. The letter must state that he
or she has reviewed the proposal prepared by the neighborhood
organization and that the proposed project(s) is (are) consistent with,
and supportive of the specific objectives of that unit of local
government including housing and community development, economic
development, and neighborhood conservation or revitalization activities
being carried out by that unit of general local government.
595.109 (Reserved)
24 CFR 595.110 Application requirements.
Neighborhood organizations which intend to apply to this program must
satisfactorily meet all the application requirements. The requirements
must include all documentation stated in previous sections of the
regulations. In addition to this documentation, applications will also
be required to contain other materials including:
(a) A brief letter of transmittal containing the signature of the
Executive Director of the applicant organization and President or
Chairperson of the Board of Directors who will be primarily responsible
for execution of the project;
(b) A one page abstract of the project summarizing the proposal;
(c) A proposed budget clearly showing the proposed expenditure of HUD
funds, as well as other resources necessary to complete the project;
(d) A project narrative statement describing the nature of the
problem, the proposed solution, the goals and objectives of the project,
the resources to be used, the management plan, the tasks to be carried
out, the plan for evaluation and such other elements as are necessary to
describe applicant responsibilities for the project;
(e) A summary of the operating costs, and the finanical resources
supporting them of the applicant organization;
(f) Affirmative action statements from the organization if the staff
intends to hire staff through the grant, or work with other persons or
firms on a sub-contract basis.
(g) Letters of support or other attachments which may strengthen the
overall proposal.
Complete information on all the application requirements will be
included in the periodic ''Notices of Availability of Grants'' (refer to
595.111). Application kits will be available from the HUD office upon
request at the time of the notices.
24 CFR 595.111 Program administration.
(a) The Neighborhood Self-Help Development Program shall be
administered by the Office of the Assistant Secretary for Neighborhoods,
Voluntary Associations and Consumer Protection.
(b) Grants and other forms of assistance under this program will be
announced through ''Notices of Availability of Grants'' periodically
published in the Federal Register. The factors for award which HUD will
use in selecting projects will be a part of the program announcement.
(c) All organizations which receive support under this program must
conform to reporting and record maintenance requirements determined
appropriate by the administering office. Standards for monitoring the
grants will be established by the Office of the Assistant Secretary for
Neighborhoods, Voluntary Associations and Consumer Protection. These
standards will include terms by which HUD may recapture funds if the
organizations receiving the grants do not conform to these requirements.
(d) An organization may request support for more than one project but
will be required to submit a proposal clarifying each project with a
separate local government certification, and budgets for each project.
(e) HUD will reserve the right to decline to fund any proposals
received under each program announcement if they do not satisfactorily
meet the criteria for eligibility based on the factors for award.
Applicant organizations which do not meet these requirements will
receive such notification from HUD after selections are made. These
organizations will, at that time, be notified of the availability of
other forms of assistance. These organizations will also be eligible to
submit proposals in response to future program announcements.
24 CFR 595.112 Other program requirements.
The requirements of Title VI of the Civil Rights Act. 42 U.S.C.
2000 et. seq. Second, the regulations issued pursuant thereto, 24 CFR
part I that no person in the United States shall on the ground of race,
color, or national origin, be excluded from participation and be denied
the benefits of, or be otherwise subjected to discrimination under any
program or activity receiving Federal Financial Assistance are
applicable to grants and assistance provided and contracts entered into
under the Act.
Participation in this program requires compliance with Title VIII of
the Civil Rights Act of 1968, 42 U.S.C 3601 et seq. , Executive Order
11063, and Section 3 of the Housing and Urban Development Act of 1968 12
U.S.C. 1701u, and all rules, regulations, and requirements issued
pursuant thereto.
24 CFR 595.112
24 CFR 595.112 PART 596 -- ENTERPRISE ZONE DEVELOPMENT
24 CFR 595.112 Subpart A -- General Provisions
Sec.
596.1 Applicability and scope.
596.2 Objective and purpose.
596.3 Definitions.
596.4 Secretarial review and enterprise zone designation.
596.5 Waivers.
596.6 Consultation with other federal agencies.
24 CFR 595.112 Subpart B -- Area Requirements
596.100 General.
596.101 Eligibility requirements.
24 CFR 595.112 Subpart C -- State and Local Government Actions
596.200 Nominations by State and local governments.
596.201 Nomination of Indian reservations.
596.202 Course of action.
24 CFR 595.112 Subpart D -- Zone Designation Process
596.300 Nomination for designation of an enterprise zone.
596.301 HUD action and review of nominations for zone designation.
596.302 Selection factors for designation of nominated zones.
596.303 Zone designation in rural areas.
596.304 Number of zones designated.
24 CFR 595.112 Subpart E -- Post Zone Designation
596.400 Monitoring.
596.401 Revocation of enterprise zone designation.
596.402 Evaluation and reporting.
24 CFR 595.112 Subpart F -- Waiver or Modification of Rules
596.500 Requests for waivers or modifications.
596.501 Waiver or modification of HUD rules in enterprise zones.
24 CFR 595.112 Subpart G -- Coordination of Housing and Urban
Development Programs
596.600 Coordination of HUD programs.
Authority: Title VII, Housing and Community Development Act of 1987
(42 U.S.C. 11501-11505); Sec. 7(d), Department of Housing and Urban
Development Act (42 U.S.C. 3535(d)).
Source: 53 FR 30946, Aug. 16, 1988, unless otherwise noted.
24 CFR 595.112 Subpart A -- General Provisions
24 CFR 596.1 Applicability and scope.
(a) This part covers policies and procedures applicable to enterprise
zones authorized under Title VII of the Housing and Urban Development
Act of 1987, (Pub. L. 100-242, approved February 5, 1988).
(b) This part includes provisions relating to area requirements, the
process of nomination of enterprise zones and the designation of
enterprise zones by HUD.
24 CFR 596.2 Objective and purpose.
The purpose of this part is to provide for the establishment of
enterprise zones in order to stimulate the creation of new jobs,
particularly for disadvantaged workers and long-term unemployed
individuals, and to promote revitalization of economically distressed
areas primarily by providing or encouraging:
(a) Tax incentives at the State and local levels;
(b) Specific actions to reduce, remove, simplify, or streamline
governmental requirements at the Federal, State, and local levels; and
(c) Improved local services and an increase in the economic stake of
enterprise zone residents in their own community and in its development,
particularly through the increased involvement of private, local, and
neighborhood organizations.
24 CFR 596.3 Definitions.
The following definitions apply to this Part:
Act means Title VII of the Housing and Community Development Act of
1987 (Pub. L. 100-242, approved February 5, 1988).
Course of Action means a strategy developed and agreed to by the
appropriate State and local governments to reduce the various burdens
borne by employers and employees in an area determined to meet the
eligibility requirements of the statute. The course of action must
include four out of six provisions identified in 596.202(b), and must
include written comments from the local government and State in which
the nominated area is located that they will follow the course of
action.
Designated enterprise zone means an area which has been designated by
the Secretary as an enterprise zone and within which the provisions of
section 703, 704, and 705 of the Act will apply.
HUD means the United States Department of Housing and Urban
Development.
Indian reservation means an area determined to be a reservation by
the Secretary of the Interior. As with the UDAG program, for the
purposes of the Enterprise Zones program, the term ''Indian
reservation'' will include former Indian reservations in Oklahoma, as
determined by the Secretary of the Interior.
Indian tribal government means the governing body of any tribe, band,
community, village, or group of Indians, or Alaska Natives which is
determined by the Secretary, after consultation with the Secretary of
the Interior, to exercise substantial governmental functions.
Local government means any county, city, town, township, parish,
village, the District of Columbia, or other general purpose political
subdivision of a State, or combination thereof, which is an eligible
applicant for assistance under the Urban Development Action Grant
program under 24 CFR 570.451(e).
Metropolitan Statistical Area is an area designated by the Office of
Management and Budget as a freestanding Metropolitan Statistical Area or
a Primary Metropolitan Statistical Area, where both primary and
consolidated Metropolitan Statistical Areas exist.
Nominated enterprise zone means an area which has been nominated by a
State and by a unit or units of local government for designation as an
enterprise zone.
Rural area means either:
(a) An area located within the jurisdiction of a unit or units of
local government with a population of less than 50,000 and which is
wholly located outside of a Metropolitan Statistical Area; or
(b) An area located within the jurisdiction of a unit or units of
local government not meeting the criteria of paragraph (a) of this
Section which is determined by the Secretary, after consultation with
the Secretary of Commerce, to be a rural area.
Secretary means the Secretary of Housing and Urban Development.
State means any State of the United States and the District of
Columbia, Puerto Rico, the Virgin Islands, Guam, American Samoa, the
Northern Mariana Islands, and any other of the possessions of the United
States.
24 CFR 596.4 Secretarial review and enterprise zone designation.
(a) Review and Designation. The Secretary of Housing and Urban
Development will review nominations submitted by State and local
governments to determine the adequacy of courses of action submitted in
accordance with the requirements of the Act. The Secretary will
designate a maximum of 100 enterprise zones. The designations shall be
based entirely upon the rank order of distress, except that the
Secretary will not designate a zone if it is determined to have an
inadequate course of action.
(b) Rural Set Aside. Of the areas designated by the Secretary
pursuant to paragraph (a), at least one-third shall be located in rural
areas.
(c) Period of Designation. The designation of an area as an
enterprise zone shall remain in full effect during the period beginning
in the effective date of designation by the Secretary and ending on the
earliest of:
(1) December 31 of the 24th year after such date;
(2) The date designated by the State and local governments as set
forth in their nomination; or
(3) The date the Secretary revokes the designation of the zone
pursuant to 596.401.
24 CFR 596.5 Waivers.
The Secretary may waive any requirement of this Part not required by
statute when it is determined that the application of the requirement
would adversely affect the purposes of the Act.
24 CFR 596.6 Consultation with other federal agencies.
The Secretary will consult with other Federal agencies regarding
enterprise zones as follows:
(a) Data. The Secretary will consult with the Director of the Bureau
of the Census or the Commissioner of the Bureau of Labor Statistics, as
appropriate, with regard to the data required for determinations of
eligibility of areas nominated as enterprise zones under this Part.
(b) Designation Process. Before the designation of nominated
enterprise zones by the Secretary, the Secretary will consult with the
Secretaries of Agriculture, Commerce, Labor, and the Treasury, the
Director of the Office of Management and Budget; and the Administrator
of the Small Business Administration.
(c) Indian Reservations. The Secretary will consult with the
Secretary of the Interior regarding the designation of nominated
enterprise zones located within Indian reservations.
(d) Regulatory Waivers. The Secretary may consult with other Federal
agencies, as appropriate, regarding requests for waivers and
modifications submitted to HUD or to such other agencies under 596.500.
24 CFR 596.6 Subpart B -- Area Requirements
24 CFR 596.100 General.
(a) Eligibility. An area is eligible for nomination by a State and
one or more local governments, and for designation under the
requirements of this Part if the area:
(1) Meets the population and boundary tests set forth in 596.101(a);
(2) Is located wholly within the jurisdiction of one or more units of
local government which meet the requirements for Federal assistance
under section 119 of the Housing and Community Development Act of 1974;
(3) Meets the tests of pervasive poverty, unemployment, and general
distress set forth in 596.101(c);
(4) Meets the additional tests of unemployment, poverty, and low
income or population loss in 596.101(d); and
(5) Contains no portion of an area which is included either in an
area previously designated as a federal enterprise zone under this Part
or as part of another area nominated for designation as a federal
enterprise zone.
(b) Data usage for eligibility determinations. The tests of
population and distress set forth in 596.101 are to be computed based
on data from the Bureau of Census and from the Bureau of Labor
Statistics. The data shall be comparable as to point or period of time
and as to methodology. Appropriate data will be identified by a Notice
published in the Federal Register.
(c) Usage of statistical area boundaries. While the boundary of an
enterprise zone does not have to coincide with the boundaries of census
statistical areas, the eligibility requirements set forth in 596.101
will be computed using the lowest level of census statistical areas for
which appropriate census data are available and which can reliably be
used to perform the tests. The various tests describe the appropriate
level of census statistical areas for making the determination regarding
each test (i.e., tract, block group, block, minor civil divisions, or
enumeration district). The census statistical areas must be the
smallest group to entirely contain the nominated zone.
24 CFR 596.101 Eligibility requirements.
To be eligible for nomination and designation as an enterprise zone,
an area must meet each of the following criteria:
(a) Population and physical location. The area must:
(1) Be located in its entirety within the jurisdiction of the unit or
units of local government nominating the area;
(2) Have a continuous boundary;
(3) Have a population of at least 4,000, unless:
(i) It is located in a rural area, in which case it must have a
population of at least 1,000; or
(ii) It is located on an Indian reservation, in which case there is
no minimum population requirement.
No maximum population size or geographic size is stipulated for an
enterprise zone because HUD does not want to limit the flexibility of
local governments and states in defining the zones to meet local goals
for stimulating economic development.
(b) Meeting the requirement for federal assistance under the Urban
Development Action Grant program. Eligibility for designation of an
enterprise zone under this part is limited to areas located within the
jurisdiction of one or more units of local government eligible for
assistance under the Urban Development Action Grant (UDAG) program. The
jurisdiction must be identified to meet the minimum distress tests or
meet the requirements for pocket of poverty based on designations
considered current for the purpose of enterprise zone eligibility.
Local governments must have been determined eligible by HUD to
participate in the UDAG program under 24 CFR 570.453 or 570.466(a), and
eligibility has not been subsequently withdrawn by HUD. Nominations
from local governments that do not meet this requirement will not be
accepted for processing by HUD.
(c) Pervasive poverty, unemployment, and general distress. An area
must evidence conditions of pervasive poverty, unemployment, and general
distress.
(1) Pervasive poverty and unemployment. The conditions of poverty
must be reasonably distributed throughout the entire area. The poverty
rate shall be described by citing nationally and locally available
statistics on poverty. The unemployment situation shall be demonstrated
through provision of information on job loss, plant closing, or other
unemployment indicators which have affected the area.
(2) General distress. The area must be an area of general distress.
General distress shall be evidenced by describing conditions of distress
existing within the area, other than those of poverty and unemployment,
such as abandoned housing, infrastructure deficiencies, or other
appropriate indicators of conditions of general distress.
(d) Tests for unemployment, poverty, low income, or population loss.
A nominated enterprise zone in an urban area must meet the requirements
of unemployment and poverty, and either low income or population loss.
The data used to make tests will be expressed to the nearest tenth of a
percent. The criteria are as follow:
(1) Unemployment. The unemployment rate for the smallest number of
block groups or enumeration districts which entirely contain the
nominated enterprise zone must be at least one and one half times the
national rate for the same period. Unemployment for this purpose will
be based upon decennial census data adjusted by the most recently
available annual average unemployment estimates from the Bureau of Labor
Statistics for the smallest jurisdiction which includes the nominated
zone. The adjustment shall be made by multiplying the decennial
unemployment and employment data by the ratio of the latest annual
average unemployment estimate over the decennial year estimate.
(2) Poverty. The poverty rate for each census tract that contains
any part of the nominated enterprise zone must be at least 20 percent
under the most recent available census data. If census tracts are not
defined, evidence of the 20 percent rate of poverty is required at the
equivalent county division as defined by the Bureau of the Census for
the purpose of defining poverty areas. The poverty rate will be
determined using the estimated number of persons in families or as
unrelated individuals who had incomes below the poverty thresholds for
the decennial census. Census tracts (or other comparable areas)
containing fewer than 100 persons as of the decennial census will not be
tested under 596.101 (c)(1) and (d)(2);
(3) Low income. For the smallest number of block groups or
enumeration districts which entirely contain the nominated enterprise
zone, at least 70 percent of the households must be below 80 percent of
the median household income for the local government(s). The percent of
household below 80 percent of median income is interpolated using
decennial census tables which show the number of households in various
income intervals. In the case of a joint application, each part of the
zone must meet the 80 percent of median income criterion for its
jurisdiction; or,
(4) Population loss. There must be at least a 20 percent population
loss from 1970 to 1980. The 1970 population will be based on the
smallest group of census areas for which data are available and which
entirely contain the zone. The 1980 data will be based on the smallest
group of census areas which entirely contain the 1970 areas.
(e) Eligibility requirements for rural areas. A nominated area that
is a rural area as defined by these regulations must meet the
requirements of paragraphs (a), (b) and (c) of this section and at least
one of the criteria set forth in paragraph (d).
24 CFR 596.101 Subpart C -- State and Local Government Actions
24 CFR 596.200 Nominations by State and local governments.
A State and local government may nominate an area which is located
wholly within the jurisdiction of the local government and which meets
the nomination criteria set forth in paragraph (b) of this section for
designation as an enterprise zone.
(a) Nominations involving more than one unit of local government.
Two or more units of local government jointly may nominate, in
conjunction with the State, areas that meet the nomination criteria set
forth in paragraph (b) for designation as an enterprise zone.
(b) Nomination criteria. A nomination must comply with each of the
following requirements:
(1) The area must meet the eligibility requirements set forth in
596.100(a).
(2) The State and local government, or governments in which the area
is located must have the legal authority to nominate the area for zone
designation and to carry out the course of action in accordance with
596.202.
(3) All requirements of State and local law for the nomination must
have been fulfilled.
(4) The State and local government or, in the case of joint
nominations, each local government, must agree in writing to the
specific provisions of the course of action to be carried out by each
governmental entity, and must provide assurances that the commitments
set forth in the course of action will be carried out during the period
specified in the course of action.
24 CFR 596.201 Nomination of Indian reservations.
(a) In the case of an Indian reservation, the governing body of the
reservation may nominate areas located within the jurisdiction of the
Indian reservation.
(b) The governing body of the reservation shall be deemed, for
purposes of this part, to be both the State and local government for the
reservation, and shall be responsible for meeting the requirements of
596.200(b).
24 CFR 596.202 Course of action.
The State and local government shall develop a course of action
designed to reduce the various burdens borne by employers or employees
in the nominated area and to promote community revitalization, as
follows:
(a) Implementation. A course of action may be implemented by the
local government or by the State nominating an area for designation (or
both), and by nongovernmental entities. A course of action may be
funded from the proceeds of any Federal assistance program as well as
from State, local, or private resources.
(b) Elements of Course of action. A course of action must include,
but is not limited to, four of the following six elements:
(1) A reduction of tax rates, fees, or user charges applying within
the enterprise zone;
(2) An increase in the level or efficiency of public services within
the enterprise zone;
(3) Actions to reduce, remove, simplify, or streamline paperwork
requirements within the enterprise zone;
(4) Involvement of public authorities or private entities,
organizations, neighborhood associations, and community groups,
particularly those within the nominated area, including a written
commitment to provide employers, employees and residents of the
nominated area:
(i) Jobs and job training;
(ii) Technical assistance;
(iii) Financial assistance; and
(iv) Other assistance.
(5) The giving of special contract preference to businesses owned and
operated by members of any minority; and
(6) The gift (or sale at below fair market value) of surplus land in
the enterprise zone to neighborhood organizations agreeing to operate a
business on the land.
(c) Recognition of past efforts. In evaluating courses of action
agreed to by any State or local government, the Secretary will take into
account the past efforts of a State or local government in reducing the
various burdens borne by employers and employees in the area involved.
(d) Prohibition of assistance for business relocations.
(1) The course of action may not include any action to assist:
(i) The relocation of any establishment; or
(ii) Any subcontractor whose purpose is to divest, or whose economic
success is dependent upon divesting, any other contractor or
subcontractor of a contract customarily performed by such other
contractor or subcontractor.
(2) This limitation does not apply to the expansion of an existing
business entity through the establishment of a new branch, affiliate, or
subsidiary where:
(i) The establishment of the new branch, affiliate, or subsidiary
will not result in an increase in unemployment in the area of original
location or in any other area where the existing business entity
conducts business operation; and
(ii) There is no reason to believe that the new branch, affiliate, or
subsidiary is being established with the intention of closing down the
operations of the existing business entity in the area of its original
location or in any other areas where the existing business entity
conducts business operations.
24 CFR 596.202 Subpart D -- Zone Designation Process
24 CFR 596.300 Nomination for designation of an enterprise zone.
A separate Nomination for Designation of an Enterprise Zone must be
submitted for each area for which enterprise zone designation is
requested. The Nomination for Designation of an Enterprise Zone must be
submitted in a form prescribed by HUD, and must consist of complete and
accurate information. The Nomination for Designation of an Enterprise
Zone shall contain:
(a) Eligibility information. Information necessary to determine
whether the area meets the eligibility requirements of 596.101(a);
(b) State and local government certifications. The nomination
Certifications by the State and by each unit of local government in
which the designated zone is located that:
(1) Each unit of local government meets each of the eligibility
criteria set forth in 596.101 (a) and (b);
(2) The area meets the population and boundary tests of 596.101(a);
(3) The area is one of poverty, unemployment, and general distress
and that the conditions are pervasive throughout the area as required by
596.101(c);
(4) The area meets the tests of unemployment, poverty, low income or
loss of population, set out in 596.101(d); and
(5) The area contains no portion of an area that is either already
designated as an enterprise zone under this part or is otherwise
included in any other area nominated for designation as an enterprise
zone under this part;
(6) Each governmental entity has the authority, with respect to the
nominated area, to:
(i) Nominate the area for designation as an enterprise zone;
(ii) Make the State and local commitments required under
596.200(b)(4); and
(iii) Provide assurances that these commitments will be fulfilled.
(7) The written agreement between the State and local government or
governments required by 596.200(b)(4) has been executed.
(c) Maps and zone description. Maps and a general description of the
area shall accompany the nomination request.
24 CFR 596.301 HUD action and review of nominations for zone
designation.
(a) Establishment of submission procedures. HUD will establish a
time period and procedures for the submission of Nominations for
Designation of an Enterprise Zone. The submission deadline and
addresses for submission of nominations will be published by Notice in
the Federal Register. The data and specific criteria which will be used
to establish eligibility will also be identified in the Notice.
(b) Acceptance for processing. HUD will accept for processing those
Nominations for Designation of an Enterprise Zone which HUD determines
have met the criteria required by this part. HUD will notify the State
and local government or tribal governing body within 10 working days
from receipt of the nomination whether or not the nomination has been
accepted for processing. The criteria for acceptance for processing are
as follows:
(1) The Nomination for Designation of an Enterprise Zone must be
received by HUD on or before the close of business on the date
established by Notice in the Federal Register.
(2) Each unit of local government must be determined by HUD to have
met the requirements of 596.101(b).
(3) The Nomination for Designation of an Enterprise Zone must be
complete and contain a proposed course of action as required by
596.202, and the certifications required by 596.300 (b) and (c).
(c) Evaluation of nominations. Each nomination accepted for
processing will be reviewed by HUD to determine that, in the judgement
of the reviewing official, the problems to be addressed have been
adequately accessed and the actions proposed in the course of action
appear to address these problems.
(d) Publication of designations. Announcements of those zones
receiving designation will be made by publication of a Notice in the
Federal Register.
24 CFR 596.302 Selection factors for designation of nominated zones.
Zone designations will be based soley on rank order of distress.
Each area will be ranked within each of the criteria set forth in
596.101(d) on the basis of the amount by which the area exceeds the
criteria. For the poverty criterion, the ranking will be based on the
overall poverty rate for the smallest number of block groups or
enumeration districts which contain the zone. Except as otherwise
provided for rural areas in 596.303, the rank order will then be
determined by the highest average ranking with respect to the criteria
set forth in 596.101(d)(1) and 596.101(d)(2) and the one criterion, of
those set forth in 596.101(d)(3) or 596.101(d)(4), that would give an
area the higher ranking. In any instance where the data are missing and
the applicant did not establish that the area would pass the test, the
zone would be unranked on that criterion. If two or more zones have the
same overall rank, ties will be broken based on the statutory order of
the four ranking criteria, with unemployment considered first, followed
by poverty, low income, and population loss.
(53 FR 48639, Dec. 2, 1988)
24 CFR 596.303 Zone designation in rural areas.
For rural areas as defined in 596.3, designation will be based on
the highest ranking with respect to the single criterion among the four
set forth in 596.101(d), that gives an area the highest ranking. If
two or more zones have the same overall rank, ties will be broken based
on the statutory order of the four ranking criteria, with unemployment
considered first, followed by poverty, low income, and population loss.
(53 FR 48639, Dec. 2, 1988)
24 CFR 596.304 Number of zones designated.
HUD may choose in advance to designate less than the maximum number
of eligible zones in any one submission period. When HUD announces a
submission period, HUD will announce the number of enterprise zones
which will be designated as a result of that period. Qualified areas
which are not selected in one submission period may reapply in a
subsequent submission period.
24 CFR 596.304 Subpart E -- Post Zone Designation
24 CFR 596.400 Monitoring.
HUD's role in monitoring Enterprise Zone activity will be kept to the
minimum necessary to determine compliance with the state and local
commitments made in accordance with 596.200(4) or (for an Indian
Reservation) the assurance required by 596.201(b). Monitoring will be
carried out in conjunction with ongoing CPD activities in the community,
e.g., CDBG monitoring visits.
24 CFR 596.401 Revocation of enterprise zone designation.
The Secretary, after the consultations required by 596.6 (b) or (c),
as appropriate, may revoke the designation of an area as an enterprise
zone if the Secretary finds that a local government or the State in
which the zone is located is not complying substantially with the State
and local commitments made in accordance with 596.200(b)(4) or, (for an
Indian reservation) the assurance required by 596.201(b).
(a) Warning letter. Before revoking the designation of an area as an
enterprise zone, the Secretary will issue a letter of warning to the
nominating State and local governments:
(1) Advising that the Secretary has determined that one or more
parties to the written agreement required by 596.200(b)(4) or, (for an
Indian reservation) the assurance required by 596.201(b), are not
complying substantially with the agreement or assurance; and
(2) Requesting a reply from all involved parties, within a specified
period of time.
(b) Issuance of a notice of revocation. After providing a minimum of
90 days for parties to respond and upon a finding by the Secretary under
this section, the Secretary may issue a final notice of revocation of
the designation of the area as an enterprise zone.
24 CFR 596.402 Evaluation and reporting.
For the zones designated in accordance with 596.302, the Department
will require periodic reports. These reports will identify the local
and state actions which have been taken in accordance with the course of
action and describe the economic and physical revitalizations which has
occurred in the zone. The following types of data will be needed for
evaluation of Enterprise Zone progress:
(a) Base line data. Base line data for the zone and the city as a
whole to permit comparison of the city and zone before and after
designation.
(b) Job strategy. A description of the strategy employed to create
and maintain jobs in the zone;
(c) Business data. Collection of annual data on new firms created
and terminated in the zone and for the city as a whole, the origin of
firms moving into the zone (within or outside the SMSA), whether or not
the firms are branches of existing firms, the number of firm expansions,
jobs created, jobs retained for firms which provide solid evidence that
they would have moved out of the zone in the absence of incentives, and
a listing of benefits received by new and expanding firms.
24 CFR 596.402 Subpart F -- Waiver or Modification of Rules
24 CFR 596.500 Requests for waivers or modifications.
(a) Parties to a request. A Request for Waiver or Modification of a
HUD rule shall be executed by the local government or Indian tribal
government of the jurisdiction that nominated an area designated an
enterprise zone under this part.
(b) Submission requirements. A Request for Waiver or Modification
must be submitted in writing in a form prescribed by HUD. The Request
shall contain:
(1) A citation of the specific rule or rules for which a waiver or
modification is requested;
(2) A brief description of the change requested; and
(3) A brief description of why the change would promote the
achievement of job creation, community development, or economic
revitalization.
24 CFR 596.501 Waiver or modification of HUD rules in enterprise zones.
(a) Authority to grant waivers or modifications. Upon the written
request of the governments that nominated an area as enterprise zone
under this part, the Secretary may waive or modify all or part of any
rule which the Secretary has authority to promulgate, as such rule
pertains to the carrying out of projects, activities, or undertakings
within the designated enterprise zone, in order to further the
objectives of the program.
(b) Standards for consideration of requests for waivers and
modifications. In considering a request for a waiver or modification,
the Secretary will weigh the extent to which the proposed change is
likely to further job creation, community development, or economic
revitalization against the effect the change is likely to have on the
underlying purposes of applicable statutes and rules affected by the
change.
(c) Secretarial determination. A request for a waiver or
modification may be approved whenever the Secretary finds that the
public interest served by the modification would outweigh the public
interest served by continuing the rule unchanged.
(d) Waivers or modifications not authorized. The Secretary will not
approve any request to waive or modify any rule which:
(1) Was adopted to carry out a statute or Executive Order which
prohibits, or the purpose of which is to protect persons against,
discrimination on the basis of race, color, religion, sex, marital
status, national origin, age, or handicap;
(2) Would directly violate a statutory requirement; or
(3) Would be likely to present a significant risk to the public
health, including envionmental health or safety.
(e) View of interested parties. To facilitate reaching a decision on
any requested waiver or modification, the Secretary may seek the views
of interested parties.
(f) 90 day review period for requests. Not later than 90 days after
receipt of a request under 596.501, the Secretary will make a
determination whether to grant a request for waiver or modification.
(g) Notification. Upon a determination by the Secretary to approve a
waiver or modification, HUD shall inform the State and local governments
requesting the waiver or modification.
(h) Effect of subsequent amendments to rules waived or modified. If,
subsequent to the granting of a waiver or modification, HUD amends the
rule for which the waiver or modification has been granted, the waiver
or modification shall continue, in full force and effect unless the
governments requesting the waiver or modification are consulted with
respect to the effect of the amendment on the requested waiver or
modification and the Secretary determines, that the justification for
the waiver or modification is no longer valid.
24 CFR 596.501 Subpart G -- Coordination of Housing and Urban Development Programs
24 CFR 596.600 Coordination of HUD programs.
(a) To the maximum extent possible, the Secretary of HUD will provide
special assistance to Enterprise Zones designated in accordance with
596.302. This will include, but not be limited to:
(1) Expedited processing;
(2) Priority funding;
(3) Program setasides; and
(4) Provision of technical assistance in furtherance of the
objectives of Title VII.
(b) Although the designation of a federal enterprise zone under this
part does not in itself constitute a federal action that would trigger
application of Executive Orders 11625 and 12432 concerning minority
business enterprise, the provision of federal funds to carry out
elements of a course of action will require that the appropriate
provisions of the program providing the funds regarding Executive Orders
11625 and 12432 be met.
24 CFR 596.600 PART 598 -- ADVANCES FOR PUBLIC WORKS PLANNING
24 CFR 596.600 Subpart A -- Advances for Public Works Planning (First
Program)
Sec.
598.1 Definitions.
598.2 Purpose of the Act.
598.3 Advances.
598.4 Apportionment of funds.
598.5 Submission of applications.
598.6 Types of public works.
598.7 Conformity to over-all plan.
598.8 Arrangements for construction.
598.9 Agreements.
598.10 Plan preparation.
598.11 Payment to applicants.
598.12 Repayment of advances.
598.13 Records and documents.
598.15 Operating procedures and instructions.
598.16 Reports to the Administrator.
598.17 Interest of member of or delegate to Congress.
24 CFR 596.600 Subpart B -- Advances for Public Works Planning (First,
Second, and Third Programs): Determinations With Respect to Liability
for Repayment of Advances
598.30 Purpose.
598.31 Definitions.
598.32 Repayment of advance.
598.33 Advance repayable in full.
598.34 Proportionate repayment of advance.
598.35 Advance not presently repayable.
598.36 Termination of liability.
598.37 Termination of agreement.
598.38 Termination of liability as result of Accelerated Public Works
grant.
Source: 36 FR 24702, Dec. 22, 1971, unless otherwise noted.
Redesignated at 49 FR 6713, Feb. 23, 1984.
24 CFR 596.600 Subpart A -- Advances for Public Works Planning (First
Program)
Authority: Sec. 501, 58 Stat. 791; 50 U.S.C. App. 1671, Reorg.
Plan No. 17 of 1950 15 FR 3177; 3 CFR, 1950 Supp.; sec. 7(d),
Department of Housing and Urban Development Act (42 U.S.C. 3535(d)).
Note: This program is now in Revolving Fund for Liquidating Programs
(12 U.S.C. 1701g-1). All references in this part to ''Administrator'',
''Administration'', ''Commissioner'', etc. mean ''the Secretary of
Housing and Urban Development'' (42 U.S.C. 3534).
24 CFR 598.1 Definitions.
For the purpose of this subpart, the following terms shall be
construed, respectively, to mean:
(a) Act. Title V of the Act of Congress of October 3, 1944, entitled
the ''War Mobilization and Reconversion Act of 1944'' (58 Stat. 791; 50
U.S.C. App., 1671) which provides for assist- ance to States and other
non-Federal public agencies in the plan preparation of their proposed
public works. The authority to make new loans or advances expired on
June 30, 1947, under the provisions of section 603 of the War
Mobilization and Reconversion Act of 1944, 58 Stat. 792.
(b) Administrator. The Housing and Home Finance Administrator,
Housing and Home Finance Agency.
(c) Administration. The Community Facilities Administration, an
organization unit within the Office of the Administrator, Housing and
Home Finance Agency, which is authorized to administer the Act.
(d) Commissioner. The Community Facilities Commissioner, Community
Facilities Administration, Office of the Administrator, Housing and Home
Finance Agency.
(e) State. Any one of the several States of the United States, the
District of Columbia, Alaska, Hawaii, or Puerto Rico.
(f) Public agencies. The States and their agencies and political
subdivisions established by law and which have basic authority to
construct public works.
(g) Applicant. Any public agency which makes application for Federal
Assistance under the Act and this subpart.
(h) Application. The document or documents, including amendments and
communications, filed with the Administration by the applicant for an
advance of funds for plan preparation.
(i) Plan preparation. Architectural engineering, and economic
investigations and studies, surveys, designs, plans, working drawings,
specifications, estimates of costs, procedures and other planning
activities in advance of the construction of specific public works.
(j) Advances. The Federal funds advanced under the authority of the
Act and this subpart to any public agency to aid in financing the cost
of plan preparation.
(k) Agreement. The document executed by the applicant and the
Administration covering the terms and conditions of an advance and the
repayment thereof.
24 CFR 598.2 Purpose of the Act.
The Act authorizes the Housing and Home Finance Administrator to make
loans or advances to public agencies in order to encourage and to assist
them in completing the plan preparation of useful public works, thereby
developing a reserve of non-Federal public works which can be placed
under construction with a minimum of delay as circumstances warrant.
24 CFR 598.3 Advances.
(a) The Act authorizes assistance in the form of loans or advances of
Federal funds, but in order to simplify the administration of the Act
this subpart limits assistance to advances.
(b) The making of an advance does not in any way commit the Congress
of the United States to appropriate funds to undertake any public works
planned with the proceeds of such advance.
(c) The applicant in accepting an advance for plan preparation agrees
that it will not accept any loan from any Federal agency for the
construction of the public work planned in whole or in part with such
advance unless the making of such construction loan shall be
specifically authorized by Federal law.
(d) An advance shall not be required to be repaid until the
construction of the public work for which the advance is made is
undertaken or started as provided in 598.12. Until such construction is
undertaken or started the advance shall not be deemed by the United
States to be a debt or obligation within the meaning of any
constitutional or statutory limitation.
(e) No interest charge shall be made for any advance.
(f) Advances shall not be approved to reimburse the applicant for any
disbursement made or to defray any costs incurred prior to the approval
of an application. Funds advanced shall not be used to defray the cost
of any contract entered into by the public agency prior to the approval
of the application for an advance if in such contract the public agency
has agreed to finance the plan preparation from other funds.
(g) Funds advanced shall not be used for the acquisition of land or
any interest in land.
24 CFR 598.4 Apportionment of funds.
Funds appropriated for the making of advances under the Act shall be
apportioned among the several States in the following manner:
(a) Ninety percent in the proportion which the population of each
State bears to the total population of all the States, as shown by the
Federal census of 1940;
(b) States whose apportionments do not total one-half of 1 percent of
the total amount appropriated for advances after the above distribution
shall have their apportionments increased to that percentage from the 10
percent available for discretionary use; and
(c) The balance of the funds as may be determined by the Commissioner
with the approval of the Administrator.
24 CFR 598.5 Submission of applications.
Applications for advances for plan preparation shall be submitted to
the Regional Offices of the Office of the Administrator, Housing and
Home Finance Agency.
24 CFR 598.6 Types of public works.
(a) Applications for advances for the plan preparation of the
following types of public works of States and other non-Federal public
agencies are eligible under the provisions of the Act:
(1) Highways, roads and streets, for which other Federal funds are
not legally available, which shall consist of highways, roads, and urban
streets, including such items as culverts, drainage facilities,
sidewalks, curbs and gutters, guard rails and guard walls, road and
street lighting, traffic control facilities, roadside landscaping, and
other similar work.
(2) Bridges, viaducts and grade separations, for which other Federal
funds are not legally available, which shall consist of bridges,
viaducts, grade separation structures, grade crossing eliminations,
tunnels, and other similar work.
(3) Airports, for which other Federal funds are not legally
available, which shall consist of all types of public airport buildings
and landing facilities, including such items as terminal buildings,
hangars, administration buildings, grading, leveling and seeding of land
fields, construction of runways, taxi strips, aprons, landing platforms,
seaplane ramps, drainage facilities, lighting facilities, airway markers
and beacons, and other airport and airway facilities.
(4) Sewer, water, and sanitation facilities, which shall consist of
sewer systems, including such items as sewage treatment and disposal
plants, sanitary sewers, storm sewers, and drainage systems; water
systems, including such items as water supply and storage, water
treatment plants, pumping stations, water distribution and irrigation
systems; and sanitary facilities such as incinerator plants, malarial
control facilities, and other similar work.
(5) Schools and other educational facilities, which shall consist of
public school facilities such as school buildings, administration
buildings, auditoriums, gymnasiums, and dormitories; public libraries:
and other educational facilities.
(6) Hospitals and health facilities, which shall consist of public
hospitals, nurses' homes, clinics, health centers and laboratories,
sanitariums and other health facilities.
(7) Other public buildings, which shall consist of city halls,
courthouses, institutional buildings, administrative buildings, police
and fire stations, armories, garages, storage buildings, community
buildings, and other public buildings not included under paragraphs
(a)(3), (5), (6), (8), and (9) of this section.
(8) Parks and other recreational facilities, which shall consist of
public parks, playgrounds, fairgrounds, and other recreational
facilities, not included under paragraph (a)(5) of this section,
including such items as recreation centers, gymnasiums, athletic fields,
swimming pools, tennis courts, and other such recreational facilities.
(9) Miscellaneous public facilities, which shall consist of other
types of public facilities such as transportation facilities, port
facilities, electric power plants, and distribution systems, public
docks, wharves and piers, non-Federal river and harbor improvements, and
other miscellaneous public facilities.
(b) The following types of public works are not eligible for
assistance under the provisions of the Act:
(1) Public housing projects of Federal, State or local housing
agencies or authorities.
(2) Federal projects of Federal departments, agencies, and
instrumentalities.
(3) Federal-aid and State highway projects of the Federal Public
Roads Administration and the State Highway Departments.
24 CFR 598.7 Conformity to over-all plan.
Each application for an advance for plan preparation shall contain
evidence that the public work to be planned conforms to an over-all
State, local or regional plan approved by competent State, local or
regional authority. Where no legally authorized over-all planning
agency exists, evidence of the approval of the proposed public work by
the authority having jurisdiction thereof shall be required.
24 CFR 598.8 Arrangements for construction.
Each application shall contain evidence that the applicant has basic
legal authority to finance and construct the public works, and that it
plans and reasonably expects to initiate the construction of the
proposed public works within 4 years after the receipt of the advance
and to prosecute the public works to completion.
24 CFR 598.9 Agreements.
(a) An agreement between the applicant and the Service shall be
executed for each advance on a form furnished by the Service. No
payment on any advance shall be made by the United States unless and
until such agreement has been executed.
(b) Subsequent to execution of the advance agreement, no change shall
be made which will increase the amount of the advance of the Federal
Government or alter its terms or conditions except upon agreement with
the Serv- ice.
24 CFR 598.10 Plan preparation.
(a) The applicant shall be responsible for the character, adequacy,
and method of plan preparation, in accordance with acceptable
professional practices, and upon the receipt of the initial payment
shall take prompt steps to initiate and prosecute the plan preparation
to completion.
(b) The applicant agrees that it will use the funds advanced only for
the plan preparation for the public work for which the advance is made
and that such plan preparation will be adequate and suitable for the
purpose intended to be served by the advance.
(c) If the plan preparation is performed on a contractual basis,
State or local regulations affecting employment within the professions
involved shall be observed.
(d) If the applicant uses its own employees for the plan preparation,
only those costs incurred by the applicant for the plan preparation
which would not have been incurred except for such plan preparation
shall be paid with the funds advanced.
24 CFR 598.11 Payment to applicants.
Upon execution of the agreement a partial payment of the agreed
advance may be made by the Administration to the applicant. Final
payment shall not be made until the plan preparation has been completed
and final costs determined. Any funds advanced which are found to be in
excess of the final costs incurred by the applicant in the plan
preparation shall be promptly refunded.
24 CFR 598.12 Repayment of advances.
Each advance shall be repaid in full without interest by the
applicant when the construction of the public work for which the advance
is made is undertaken or started. The construction shall be considered
as undertaken or started when the first construction contract is awarded
or the applicant begins construction with its own forces.
24 CFR 598.13 Records and documents.
Applicants shall keep accurate accounting records of all costs
involved in connection with plan preparation. The accounts and records
of the applicants shall be open at all times to inspection by the
authorized representatives of the Administration, and copies shall be
furnished when requested. The applicant shall furnish the
Administration a copy of any contract for architectural or engineering
services for any other contract entered into in connection with plan
preparation immediately upon execution thereof.
When requested by the Administration, the applicant shall furnish a
report on the progress of plan preparation.
24 CFR 598.15 Operating procedures and instructions.
The Commissioner is hereby authorized to issue such operating
procedures and instructions not in conflict with Federal law or with
this subpart as he may deem necessary for carrying out the provisions
and effectuating the purposes of the Act and this subpart, and all such
operating procedures and instructions issued by him shall be and
continue in full force and effect from the date on which issued or made
effective until modified or revoked by him.
24 CFR 598.16 Reports to the Administrator.
The Commissioner will submit to the Administrator a semi-annual
report of operations under the Act and such other special reports as he
may request.
24 CFR 598.17 Interest of member of or delegate to Congress.
No member of or delegate to Congress or resident commissioner, shall
be admitted to any share or part of any agreement providing for the
making of an advance, or to any benefit arising from any such agreement.
24 CFR 598.17 Subpart B -- Advances for Public Works Planning (First,
Second, and Third Programs): Determinations With Respect to Liability
for Repayment of Advances
Authority: Sec. 502, 62 Stat. 1283; 12 U.S.C. 1701c; and sec.
702; 40 U.S.C. 462; sec. 7(d), Department of Housing and Urban
Development Act (42 U.S.C. 3535(d)).
24 CFR 598.30 Purpose.
The regulations in this Subpart B prescribe standards forming the
bases for determinations with respect to liability for repayment of a
planning advance under the following programs:
(a) Advances for Public Works Planning (First Program). Title V of
War Mobilization and Reconversion Act of 1944, as amended, 50 U.S.C.
1671.
(b) Advances for Public Works Planning (Second Program). Act of
October 13, 1949, entitled ''An Act to provide for the advance planning
of non-Federal public works,'' as amended, 40 U.S.C. 451.
(c) Advances for Public Works Planning (Third Program). Section 702
of Housing Act of 1954, as amended, 40 U.S.C. 462.
24 CFR 598.31 Definitions.
For the purpose of this subpart, the following terms shall be
construed, respectively, to mean:
(a) Administrator. The Housing and Home Finance Administrator.
(b) Applicant. Any public agency or Indian tribe which has obtained
a planning advance.
(c) Final plans. Final plans are based on preliminary planning and
include preparation of all detailed plans and specifications required to
award construction contracts and complete the project for its intended
use.
(d) Planning advance. The Federal funds advanced under Title V of
War Mobilization and Reconversion Act of 1944, as amended, 50 U.S.C.
1671, Act of October 13, 1949, as amended, 40 U.S.C. 451, or section 702
of Housing Act of 1954, as amended, 40 U.S.C. 462, to any public agency
or Indian tribe to aid in financing the cost of plan preparation.
(e) Planning agreement. The document executed by the applicant and
the United States of America covering the terms and conditions of a
planning advance and the repayment thereof.
(f) Proportionate payment. Partial repayment of the planning advance
accepted in full satisfaction of the obligation to repay under the law
and planning agreement.
24 CFR 598.32 Repayment of advance.
Each planning advance shall be repaid by the applicant without
interest when the construction of the public work planned is undertaken
or started: Provided, That in the event repayment is not made promptly,
such unpaid sum shall bear interest at the rate of 4 per centum per
annum from the date of the Administrator's demand for repayment to the
date of payment.
24 CFR 598.33 Advance repayable in full.
If the Administrator determines that a public work placed under
construction is essentially the same as the public work planned with the
Federal advance, the advance shall be repayable in full. An advance may
be repayable in full even though there are some elements of
dissimilarity, but these should be relatively minor and few in relation
to the total scope of the project. An advance for preparation of final
plans shall be repayable in full regardless of the number of minor
changes provided the scope or size of the project constructed is
approximately the same as that of the project planned.
24 CFR 598.34 Proportionate repayment of advance.
(a) If the Administrator determines that construction of only a
portion of a planned project or of a separate segment of a planned
project has been undertaken, a proportionate repayment of the advance
shall be due. The Administrator will determine the amount of such
proportionate repayment by making a comparison of the project planned
with the advance to the project placed under construction. Such
comparison shall take into consideration project type and scope and
include such factors as specifications, cost estimates, drawings,
planning surveys, site location, subsurface studies, and area served.
This 598.34(a) shall not be construed to supersede any agreement
executed under the Third Advance Planning Program providing for a
schedule of repayment under other terms.
(b) If the Administrator determines that a proportionate repayment of
the advance is due and that there is no reasonable likelihood that the
remaining portions of the planned project will be placed under
construction, liability for repayment of such remaining portion shall be
terminated as provided under 598.36. If the Administrator determines
that there is a reasonable likelihood that such remaining portion will
be placed under construction at a future date, liability for repayment
of such portion shall be continued.
24 CFR 598.35 Advance not presently repayable.
If the Administrator determines that construction of a project
planned has not been undertaken or started but that there is reasonable
likelihood that such construction will be undertaken or started in the
future, no change shall be made in the status of the advance.
24 CFR 598.36 Termination of liability.
(a) If the Administrator determines that there is no reasonable
likelihood that the public work, or a portion of the public work,
planned with an advance will be constructed, all or a portion of the
liability for repayment of such advance shall be terminated. This
determination shall take into consideration among other things, such
factors as significant changes in population, technology, community
needs, and governmental organizational structure of the applicant which
would obviate the need for or diminish the usefulness of the planned
project.
(b) If the Administrator determines that there is no reasonable
likelihood that the public work, or any portion of the public work,
planned with an advance will be constructed, liability for repayment of
the entire advance shall be terminated.
(c) If the Administrator determines that a proportionate repayment of
an advance is due and that liability for repayment as to the remainder
shall be terminated, such determination shall be based on the
considerations set forth under 598.34.
(d) If no construction has been undertaken and the Administrator
determines that there is no reasonable likelihood that the entire public
work planned will be constructed, but that there is reasonable
likelihood that a portion thereof may be undertaken or started in the
future, liability for repayment shall be terminated in part and shall
continue as to the remainder.
24 CFR 598.37 Termination of agreement.
If the Administrator determines in accordance with 598.36 that there
is no reasonable likelihood that the public work, or any portion of the
public work, planned with an advance will be constructed, the agreement
for such advance will be terminated.
24 CFR 598.38 Termination of liability as result of Accelerated Public
Works grant.
If construction of a public work planned with an advance made under
the Third Advance Planning Program is initiated as a result of a
grant-in-aid under the Public Works Acceleration Act, Pub. L. 87-657,
76 Stat. 541, there shall be no liability for repayment of such
advance, under subsection 702(g) of the Housing Act of 1954, as added by
section 6 of the Public Works Acceleration Act. If the Administrator
determines that only a portion of the planned project has been
constructed as a result of the grant-in-aid assistance, a proportionate
amount of the liability shall be terminated. The determination as to
the amount of liability to be terminated shall be based upon the
proportion that the scope of the Accelerated Public Works project as
reflected in the approved application therefor bears to the scope of the
project planned under the Third Advance Planning Program.
24 CFR 598.38 PART 599 -- GRANTS FOR ADVANCE ACQUISITION OF LAND
Sec.
599.1 Definitions.
599.2 Grants for advance acquisition of land.
599.3 Amount of grant.
599.4 Requirements for assistance.
599.5 Diversion of land; repayment of grant.
599.6 Application of other Federal laws.
599.7 Eligibility of land for other Federal assistance.
599.8 Information, application forms, and applications.
Authority: Sec. 7(d), 79 Stat. 670, sec. 705(a), 79 Stat. 492;
42 U.S.C. 3535(d), 42 U.S.C. 3105(a).
Source: 36 FR 24705, Dec. 22, 1971, unless otherwise noted.
Redesignated at 49 FR 6713, Feb. 23, 1984.
Note: Now in Revolving Fund for Liquidating Programs (12 U.S.C.
1701g-5).
24 CFR 599.1 Definitions.
(a) Local public bodies and agencies means any public corporate
bodies or political subdivisions; public agencies or instrumentalities
of one or more States (including public agencies and instrumentalities
of one or more municipalities or other political subdivisions of one or
more States); Indian tribes; or boards or commissions established
under the laws of any State to finance specific capital improvement
projects.
(b) Public purposes includes the construction of public works and
facilities; retention of land as open space to be utilized for
recreation, conservation, scenic, or historic preservation purposes;
and other purposes recognized as public under applicable State law,
subject to such limitations as the Secretary may establish.
(c) Secretary means the Secretary of Housing and Urban Development,
or an officer authorized to perform the functions of the Secretary.
(d) Section 704 means section 704 of the Housing and Urban
Development Act of 1965 (Pub. L. 89-117), as amended by section 603 of
the Housing and Urban Development Act of 1968 (Pub. L. 90-448), 42
U.S.C. 3104.
(e) State means the several States, the District of Columbia, the
Commonwealth of Puerto Rico, and the territories and possessions of the
United States.
24 CFR 599.2 Grants for advance acquisition of land.
Grants may be made to States and local public bodies and agencies to
assist in financing the acquisition of a fee simple estate or other
interest in land planned to be utilized in the future for public
purposes.
24 CFR 599.3 Amount of grant.
The amount of any grant may not exceed the aggregate amount of
reasonable interest charges on the loans or other financial obligations
incurred by a State or local public body or agency to finance the
acquisition of such land for a period not exceeding the lesser of (a) 5
years from the date of acquisition of such land, or (b) the period of
time between the date on which the land was acquired and the date its
use begins for the purpose for which it was acquired. If all or any
portion of the cost of the land is not financed through borrowings, the
amount of the grant shall be computed on the basis of the aggregate
amount of reasonable interest charges that the Secretary determines
would have been required.
24 CFR 599.4 Requirements for assistance.
(a) Grant assistance will be made available only if the Secretary
determines that:
(1) The land is planned to be utilized for a public purpose within 5
years after the date on which the contract to make such grant was
entered into (unless the Secretary determines that due to unusual
circumstances a longer period of time is necessary and in the public
interest and reports such determination to the Committees on Banking and
Currency of the Senate and House of Representatives); and
(2) The utilization of the land for the public purpose will
contribute to economy, efficiency, and the comprehensively planned
development of the area.
(b) Grant assistance will be made available only if the applicant
possesses adequate legal authority to finance the acquisition of the
land, and demonstrates that the land will be utilized for the
anticipated public purpose within a reasonable period of time (as
required by paragraph (a)(1) of this section).
24 CFR 599.5 Diversion of land; repayment of grant.
(a) Land acquired with assistance under section 704 may not be
diverted from the purpose originally approved without the approval of
the Secretary. No such diversion may be approved unless the Secretary
finds that it is in accord with the then applicable comprehensive plan
for the area. In cases of diversion of land to other than a public
purpose, the Secretary may require repayment of the grant or
substitution of land of approximately equal fair market value, whichever
he deems appropriate.
(b) An interim use of the land for a public or private purpose in
accordance with standards prescribed by the Secretary, or approved by
him, shall not constitute a diversion within the meaning of this
section.
24 CFR 599.6 Application of other Federal laws.
(a) Grants authorized by section 704 are subject to provisions of:
(1) Title VI of the Civil Rights Act of 1964, 42 U.S.C. 2000d --
2000d -- 4, which provides that no person in the United States shall, on
the ground of race, color, or national origin, be excluded from
participation in, or be denied the benefits of, or be otherwise
subjected to discrimination under any program or activity receiving
Federal financial assistance; and
(2) Title IV of the Housing and Urban Development Act of 1965, as
amended, 42 U.S.C. 3071-3074, which requires that, as a condition of
eligibility for assistance under section 704, the applicant will follow
certain prescribed policies in the acquisition of real property, and
also provides policies to be followed for the relocation of individuals
and businesses displaced by the assisted land acquisition.
(b) An applicant for grant assistance under section 704 will be
required to furnish satisfactory assurance that it will comply with the
requirements and policies referred to in paragraph (a) of this section.
24 CFR 599.7 Eligibility of land for other Federal assistance.
No land acquired with assistance under section 704 shall, solely as a
result of such advance acquisition, be considered ineligible for the
purpose of any other Federal loan or grant program. The amount of the
purchase price paid for the land by the recipient of a grant under
section 704 may be considered an eligible cost for the purpose of such
other Federal loan or grant program.
24 CFR 599.8 Information, application forms, and applications.
Information and application forms may be obtained from, and
applications may be submitted to, the Regional Office of the Department
of Housing and Urban Development which serves the area in which the
applicant is located.
24 CFR 599.8 24 CFR Ch. VI (4-1-92 Edition)
24 CFR 599.8 Office of Asst. Secy., Community Planning, Development, HUD
24 CFR 599.8 CHAPTER VI -- OFFICE OF ASSISTANT SECRETARY FOR COMMUNITY
PLANNING AND DEVELOPMENT, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Part
Page
600 Comprehensive planning assistance
24 CFR 599.8
24 CFR 599.8 24 CFR Ch. VI (4-1-92 Edition)
24 CFR 599.8 Office of Asst. Secy., Community Planning, Development, HUD
24 CFR 599.8 PART 600 -- COMPREHENSIVE PLANNING ASSISTANCE
24 CFR 599.8 Subpart A -- General Information
Sec.
600.1 Purpose.
600.5 Objectives.
600.6 Cooperative agreements.
600.7 Definitions.
600.10 Financial support.
600.15 Staff and consultant services.
600.20 Inservice training.
600.25 Who may be assisted.
600.30 Legal status and authority.
600.35 Applicants.
600.37 Provision of planning and management assistance and services
to large cities, urban counties and localities by areawide planning
organizations.
600.38 Grants for the Insular areas -- the Virgin Islands, Guam,
American Samoa, the Trust Territory of the Pacific Islands, and the
Commonwealth of the Northern Mariana Islands.
600.40 Grants for areawide planning and management assistance.
600.50 Assistance to applicants having special needs.
600.55 Eligible activities: All applicants.
600.58 Ineligible activities: All applicants.
600.59 Waivers.
24 CFR 599.8 Subpart B -- Special Requirements
600.60 Purpose.
600.65 Environmental requirements.
600.66 Historic preservation requirements.
600.67 Comprehensive planning requirement.
600.68 Energy conservation requirements.
600.70 Required housing element.
600.72 Required land use element.
600.73 Land use and housing elements; review and approval process.
600.75 Equal opportunity requirements.
600.77 Handicapped requirements.
600.80 Citizen involvement.
600.81 Interchange of cartographic data.
24 CFR 599.8 Subpart C -- Procedural Requirements
600.85 Purpose.
600.90 Steps for application submission, negotiation and approval.
600.95 Applications by States.
600.100 The application package.
600.105 Overall Program Design.
600.107 Annual work program.
24 CFR 599.8 Subpart D -- State Procedures for Substate Planning and
Management Assistance and Services
600.110 Purpose.
600.115 State Overall Program Design.
600.120 Summary of substate planning and management assistance
procedures.
600.135 State review and evaluation.
24 CFR 599.8 Subpart E -- Evaluation and Coordination Procedures
600.140 Purpose.
600.145 Evaluation and review.
24 CFR 599.8 Subpart F -- Special Allocations for Areawide Housing
Opportunity Plans
600.180 Purpose.
600.190 Eligible applicants.
600.200 Allocation of Special Comprehensive Planning Assistance
funds.
600.210 Eligible activities.
600.220 Administrative activities.
600.230 Application procedures.
600.240 Application requirements.
600.250 Submission requirements.
24 CFR 599.8 Subpart G -- Managing a Grant
600.400 General information.
600.405 Administrative policies of the grantee.
600.410 Fiscal management.
600.420 Program performance reporting.
600.425 Submission of 701-assisted reports.
Appendix 1 to Subpart G -- Planning Depository Libraries
Appendix 2 to Subpart G -- State Depository Libraries
Appendix 3 to Subpart G -- Planning School Libraries
Appendix 4 to Subpart G -- Project Inspection Fee Schedule
Appendix I To Part 600 -- Comprehensive Planning Assistance,
Department of Housing and Urban Development
Authority: Sec. 701, Housing Act of 1954, 68 Stat. 640; (40 U.S.C.
461); Secretary's delegation of authority published at 36 FR 5004,
effective March 8, 1971, unless otherwise noted.
Source: 40 FR 36856, Aug. 22, 1975, unless otherwise noted.
24 CFR 599.8 Subpart A -- General Information
24 CFR 600.1 Purpose.
The purpose of this subpart is to set forth the Department's
requirements for general applicability with respect to section 701 of
the Housing Act of 1954, 40 USC 461, as amended by the Housing and
Community Development Act of 1974, 42 USC 5301, et seq.
24 CFR 600.5 Objectives.
The purpose of the Comprehensive Planning Assistance program is to
assist recipients to undertake comprehensive planning and management
strategies which further the following National Policy Objectives in
urban and rural areas:
(a) The conservation and improvement of existing communities by
correcting or modifying conditions of distress, blight or decline;
(b) Increasing housing and employment opportunities and choice for
the poor, minorities and disadvantaged; and
(c) The promotion of orderly and efficient growth and development
which prevent future conditions of distress and conserve existing
communities.
(44 FR 54434, Sept. 19, 1979)
24 CFR 600.6 Cooperative agreements.
(a) Intent. It is HUD's intent to encourage the development of plans
which have relevance and utility for Area Office's decision-making and
to facilitate the implementation of plans developed by applicants. This
will be accomplished by encouraging applicants funded by HUD or by the
State to enter into agreements with HUD Area Office Managers regarding
existing plans and/or the development of plans and their use by HUD Area
Offices.
(b) Contents of agreements. Applicants, and the HUD Area Office
Manager or Managers covering their jurisdiction may agree to specific
plans, data, policies or priorities which would be useful to the HUD
Area Office Managers in making funding or other decisions for HUD
Programs for which they have responsibility. If such plans, data,
policies or priorities exist or are developed and adopted by the
applicant as agreed to, HUD will follow them as specified in the
agreement in its decision-making. Such plans and policies must be
consistent with the National Policy Objectives contained in 600.5 and
the assisted activities must be eligible under 600.55.
(c) Form of agreements. Where such agreements are entered into by
HUD and the applicant, they shall be in writing and clearly state for
existing plans and/or those to be developed by the applicant, both the
contents of the plans, policies or priorities and HUD's intended use of
them. Provision for HUD participation in plan refinement, development
and review may be spelled out in the agreement. Additional matters
deemed appropriate by the parties to the agreement may also be included.
(d) Plan implementation assistance. Cooperative agreements may
include not only how HUD will use the plans in its own decision-making
but also how HUD will assist the applicant in implementing its plan with
other Federal agencies. HUD shall encourage and facilitate to the
maximum degree possible interagency coordination in the implementation
of the applicant's plans and policies.
(44 FR 54434, Sept. 19, 1979)
24 CFR 600.7 Definitions.
As used in this part, the following terms shall have the meaning
indicated.
(a) Applicant means a State or unit of general local government, or
any combination thereof, areawide planning organization or Indian tribal
group or body, as defined in paragraph (f) of this section, which makes
application pursuant to the provisions of this part.
(b) Areawide planning organization means an organization authorized
by law or by interlocal agreement to undertake planning for a
metropolitan or nonmetropolitan area which meets the areawide
organizational and jurisdictional requirements of this part; or a
Council of Governments.
(c) Chief Executive Officer means the elected official, or the
legally designated official, who has the primary responsibility for the
conduct of the governmental affairs of a state, unit of general local
government or areawide planning organization. Examples of the Chief
Executive Officer of a state, unit of general local government or an
areawide planning organization may be: The governor of a state; the
elected mayor of a municipality; the elected county executive of a
county; the chairman of a county commission or board in a county that
has no elected county executive; the official designated pursuant to
law by the governing body of the unit of general local government (e.g.,
City Manager or City Administrator); the chairman, governor, chief, or
president (as the case may be) of an Indian tribe or Alaskan native
village; and the highest policy officer (president or chairman) of an
areawide planning organization.
(d) Council of Governments and COG each means an organization
authorized by law or by interlocal agreement to undertake planning for a
metropolitan or nonmetropolitan area and whose voting membership is
composed solely of elected officials of units of general local
government within the planning jurisdiction, or their representatives
which meets the areawide organizational and jurisdictional requirements
of 600.40(b).
(e) Department and HUD each means Department of Housing and Urban
Development.
(f) Distressed, for purposes of this Part, means communities or
places within a State or region which the State or areawide planning
organization determine require greater attention and assistance than
other communities or places within the State or region because of their
relatively greater proportion of physical, social and economic problems.
Factors indicating distress may include, but need not be limited to,
income levels, unemployment rates, fiscal disparity, population change,
economic base change, declining revenue base, poverty and dependent
population, percentage of population requiring public assistance and
substandard housing units.
(g) Indian tribal group or body means any Indian tribe, band, group,
and nation, including Alaska Indians, Aleuts, and Eskimos, and any
Alaskan Native Village, of the United States, which is considered an
eligible recipient under the Indian Self-Determination and Education
Assistance Act (Pub. L. 93-638) or under the State and Local Fiscal
Assistance Act of 1972 (Pub. L. 92-512).
(h) Large city means a city (including the District of Columbia)
having a population of at least 50,000 according to the latest decennial
census.
(i) Locality means a city or other municipality having a population
of less than 50,000 according to the latest decennial census; a county
without regard to population; or any group of adjacent communities,
either incorporated or unincorporated, having common or related urban
planning problems and having a total population of less than 50,000
according to the latest decennial census.
(j) (Reserved)
(k) Ongoing comprehensive planning process means a process, which
includes chief executive leadership, coordination and citizen
involvement where major plans, policies, priorities, or objectives are
being determined and that involves the development and subsequent
modification of a comprehensive plan and provides for at least triennial
review of the elements thereof for necessary or desirable amendments.
For the purposes of this part, the comprehensive plan shall include, as
a minimum, the housing and land use elements described in 600.70 and
600.72.
(l) Policy-planning-evaluation capacity means the analytical ability
to identify its problems and needs more rationally, set long-term policy
goals and short-term policy objectives for meeting its needs, devise
programs and activities to meet those policy goals and objectives, and
evaluate its progress towards meeting those goals and objectives.
Development of such capacity may involve, e.g., studies to identify
problems in one or more policy areas; strengthening budgeting systems;
improving capability to gather, process and analyze data necessary for
rational decision-making; devising programs and reorganizing
governmental structures; and strengthening the capacity for analyzing
the impact of programs in meeting policy objectives.
(m) Professionally competent person means a person having relevant
training and/or experience that is necessary for the tasks to be carried
out.
(n) Recipient means an applicant whose application for a
comprehensive planning assistance grant has been formally approved by
HUD or the state.
(o) State means any State, the District of Columbia, Puerto Rico, any
territory or possession of the United States, and the Trust Territory of
the Pacific Islands.
(p) State central information reception agency means the State agency
which has been designated to serve as the central reception point for
Federal grant-in-aid information furnished pursuant to section 201 of
the Intergovernmental Cooperation Act of 1968.
(q) Substate means any governmental jurisdiction which is smaller
than the State in which it is situated. The term includes inter- and
intra-state areawide planning organization.
(r) Urban county means any county within a metropolitan area which
(1) is authorized under State law to undertake essential community
development and housing assistance activities in its unincorporated
areas, if any, which are not units of general local government, and (2)
has a combined population of 200,000 or more (excluding the population
of metropolitan cities therein) in such unincorporated areas and in its
included units of general local government; (i) in which it has
authority to undertake or to assist in the undertaking of essential
community development and housing assistance activities and which do not
elect to have their population excluded; or (ii) with which it has
entered into cooperation agreements to undertake or to assist in the
undertaking of essential community development and housing assistance
activities. For the purposes of this part a county will be considered
an urban county upon designation as such by HUD pursuant to the
regulations issued under Title I of the Housing and Community
Development Act of 1974.
(E.O. 12372, July 14, 1982 (47 FR 30959), amended April 8, 1983 (48
FR 15887); sec. 401, Intergovernmental Cooperation Act of 1968, as
amended (31 U.S.C. 6506); sec. 204 of the Demonstration Cities and
Metropolitan Development Act of 1966, as amended (42 U.S.C. 3334); sec.
7(d), Department of Housing and Urban Development Act (42 U.S.C.
3535(d)))
(40 FR 36856, Aug. 22, 1975, as amended at 42 FR 6095, Feb. 1, 1977;
44 FR 54435, Sept. 19, 1979; 48 FR 29218, June 24, 1983; 49 FR 10665,
Mar. 22, 1984)
24 CFR 600.10 Financial support.
(a) Grant ratio. Comprehensive planning assistance grants shall not
exceed two-thirds of the total cost of eligible activities. Although
grants equal to not more than four-fifths of the total costs of eligible
activities may be made pursuant to section 701(n) of the Housing Act of
1954, as amended, HUD, pursuant to the discretion permitted in the Act,
will not fund grants in excess of two-thirds of eligible costs.
(b) Non-Federal share. The non-Federal share of the total cost of
assisted activities may be provided in the form of cash and/or services.
(c) Project period. Grant assistance will ordinarily cover a
12-month work period, but may cover a different period in appropriate
cases. HUD may authorize applicants to incur costs prior to the award
of a grant in appropriate cases. An authorization to incur costs will
not obligate HUD to make a grant nor to reimburse the applicant for
costs incurred if a grant is not made. A grant, if made, will be
subject to a HUD determination of the eligibility of costs incurred and
to any other conditions included as a part of the authorization.
(d) Funding determinations. The decision to fund or not fund an
applicant and the amount of assistance to be provided will be based on
the amount of funds available and the criteria in paragraphs (d)(1) to
(4) of this section. When there are insufficient funds to assist all
applicants, those ranking highest on the basis of the criteria will be
funded. The Secretary may establish minimum grant sizes when the amount
of funds available are considered inadequate to assist all applicants.
The specific factors to be reviewed in assessing an applicant's
performance relative to the following criteria are more fully detailed
in 600.145. A performance evaluation system description will be
provided to applicants in advance of the review.
(1) Performance in plan development and endorsement. The degree to
which an applicant has developed and is maintaining a comprehensive
planning process. In evaluating this criteria, HUD will assess the
extent to which the applicant's planning process results in the
development of plans, policies and programs which identify problems,
needs and objectives; address difficult or controversial issues; are
periodically up-dated to reflect changing needs and priorities; and are
adopted and/or endorsed by appropriate State and local governmental
decision-makers or bodies. HUD, in evaluating performance in plan
development and endorsement, will place increasing emphasis on the
degree to which applicants' plans, programs, and policies are directly
related to National Policy Objectives.
(2) Performance in planning implementation and the use of plans. The
degree to which an applicant has or is implementing its plans, policies
and programs. In evaluating this criteria, HUD will look for evidence
that the applicants' planning process is or has made impact upon local,
Federal and State public decision-making and has affected the decisions
or actions of private enterprise and citizen groups. This will include
the degree to which program objectives have been achieved, the grantee's
ability to achieve improvements in public services and facilities
consistent with its planning recommendations, and the degree to which
housing and land use objectives have been or are being achieved.
(3) Coordination performance. An applicant's prior success and
continuing performance in coordinating the development and
implementation of policies and strategies by various agencies within its
jurisdiction and by other levels of government. In evaluating
coordination, HUD will emphasize the pursuit of common strategies in
aiding distressed areas, improving housing and employment opportunites
and fostering orderly growth.
(4) Program management performance. An applicant's ability to manage
program funds properly. The following factors, at a minimum, shall be
included:
(i) Ability to undertake work for which assistance is requested;
(ii) Compliance with requirements for fiscal management and
accountability for the use of program funds;
(iii) Timely completion of all projects, and submission of program
reports; and
(iv) Compliance with all general and special program requirements.
(40 FR 36856, Aug. 22, 1975, as amended at 44 FR 54435, Sept. 19,
1979)
24 CFR 600.15 Staff and consultant services.
(a) Professionally competent persons. Each applicant must be able to
demonstrate that it has available the services of professionally
competent persons to carry out the program for which assistance is
sought.
(b) Staff. Each State, areawide planning organization, large city
and urban county must also be able to demonstrate that it has a staff of
professionally competent persons to carry out the program for which
assistance is sought.
(c) Employment standards. Each areawide planning organization must
establish standards for the recruitment and retention of personnel
consonant with State or local merit or civil service standards. In the
event no State or local standards exist or they are not used when
available, the standards adopted will be subject to HUD approval.
(d) Provision of consulting services. Staff capability may be
supplemented through consulting services by other public agencies
(State, areawide, local), by instrumentalities of State and local
governments (such as universities, municipal leagues, and county officer
associations), and by private contractors and consulting firms.
24 CFR 600.20 Inservice training.
Applicants may engage in inservice training to increase the level of
knowledge and skills of their staff.
(a) Eligible trainees. Eligible trainees are limited to those staff
members engaged in activities related to a grant under this part.
(b) Maximum costs. Except for work study programs, the total cost of
an inservice training program shall not exceed 5 percent of the total
grant.
24 CFR 600.25 Who may be assisted.
Grants may be made by HUD to the following:
(a) States for State, interstate, metropolitan, district or regional
activities;
(b) States for the provision of planning and management assistance to
localities, large cities, urban counties, Indian tribal groups or
bodies, and areawide planning organizations;
(c) Large cities. Although eligible for assistance, large cities
will not be funded. This decision is based on Congressional intentions
that large cities should use their Community Development Block Grant
(CDBG) funds for planning consistent with 24 CFR 570.205.
(d) Urban counties. Although eligible for assistance, urban counties
will not be funded. This decision is based on Congressional intentions
that urban counties should use their CDBG funds for planning consistent
with 24 CFR 570.205.
(e) Metropolitan clearinghouses;
(f) Councils of Governments;
(g) Indian tribal groups or bodies; and
(h) Other governmental applicants having special planning needs
related to the purpose of section 701 of the Housing Act of 1954, as
amended, to the extent that these needs cannot otherwise be adequately
met.
(40 FR 36856, Aug. 22, 1975, as amended at 44 FR 54435, Sept. 19,
1979)
24 CFR 600.30 Legal status and authority.
An applicant must:
(a) Be authorized by State law or interstate compact or other
agreement to perform the comprehensive planning work for which the grant
is requested;
(b) Have authority to receive and expend Federal and other funds, to
contract with Federal and other units of government, private concerns,
or individuals for performance of planning work and services and to plan
for its entire jurisdiction; and
(c) Assure HUD that the non-Federal share of the program cost will be
provided.
24 CFR 600.35 Applicants.
The applicant shall be a State, large city, urban county, locality,
areawide planning organization or Indian tribal group or body. One or
more agencies may be designated by the Governor or chief executive
officer to undertake the comprehensive planning and management
assistance program in whole or in part. Notwithstanding such a
designation, the State, large city urban county, locality, areawide
planning organization or Indian tribal group or body shall be the
applicant (except that inter-tribal or multi-tribal organizations which
have been delegated authority by member Indian tribal groups or bodies
to conduct planning and management activities on their behalf may be the
applicant); and in the absence of special circumstances in which there
is a legal incapacity on the part of the applicant to accept funds for
eligible activities, the grant agreement shall be between HUD and the
applicant. Such designations do not relieve the applicant of its
responsibilities in assuring the administration of the program in
accordance with all HUD requirements, including these regulations.
24 CFR 600.37 Provision of planning and management assistance and
services to large cities, urban counties and localities by areawide
planning organizations.
An areawide planning organization may provide planning and management
assistance and services to localities, large cities and urban counties
within its jurisdiction using funds made available by HUD to the State
for such purpose. An areawide planning organization may also provide
services to localities, large cities and urban counties within its
jurisdiction using grant funds made available for areawide activities
provided such services are reflected in its approved application and do
not impede reasonable progress in carrying out areawide planning and
management activities.
24 CFR 600.38 Grants for the Insular areas -- the Virgin Islands, Guam,
American Samoa, the Trust Territory of the Pacific Islands, and the
Commonwealth of the Northern Mariana Islands.
In all respects, the Insular Areas, including the Virgin Islands,
Guam, American Samoa, the Trust Territory of the Pacific Islands, and
the Commonwealth of the Northern Mariana Islands, shall file
applications pursuant to 600.100 except as follows:
(a) An Insular Area applicant may choose to file an application for a
consolidated grant that includes comprehensive planning funds under this
part, and community development funds under part 570, subpart E,
570.405 -- Secretary's Fund. The Insular Areas. Applications shall be
in accordance with the parts cited, but assurances and other material
called for in both programs need not be duplicated.
(b) Notwithstanding any other provisions of this part, the Insular
Areas need not provide a local match in order to receive the
comprehensive planning assistance portion of a consolidated grant.
(c) Notwithstanding any other provisions of this part, and
irrespective of whether grants are consolidated or not, the Commonwealth
of the Northern Mariana Islands and American Samoa need not provide
local matching funds, where such funds are $100,000 or less, in order to
receive Comprehensive Planning Assistance grants.
(d) Consolidated grant applications must provide for an adequate
balance of Section 701 Comprehensive Planning activities and Community
Development activities. Therefore, within the discretion of each
Insular Area, no less than half, nor more than one-and-a-half times the
amount of funds provided from Section 701 Comprehensive Planning funds
shall be used for planning activities authorized by section 701. In no
event shall more than 20% of the Community Development Block Grant funds
provided be spent in total for planning, including comprehensive
planning, as defined in subpart C, 570.205, and administration, as
defined in 570.206.
(e) Activities supported by a consolidated grant shall be carried out
in accordance with instructions in this part for comprehensive planning
and in part 570 for community development. The Department strongly
encourages that a substantive relationship be demonstrated between the
planning and community development activities to be supported.
(f) A consolidated final report shall be provided for a consolidated
grant.
(g) Where a consolidated grant application is approved for an Insular
Area, the following grant and audit procedures will occur.
(1) A single grant will be awarded encompassing community development
and comprehensive planning funds.
(2) The Insular Area recipient shall maintain records that will
permit discrimination between expenditures for community development and
comprehensive planning funded activities.
(3) Combined audits will be performed.
(Sec. 701, Housing Act of 1954, 68 Stat. 640 (40 U.S.C. 461); sec.
7(d), Department of Housing and Urban Development Act. (42 U.S.C.
3535(d)))
(45 FR 59869, Sept. 11, 1980)
24 CFR 600.40 Grants for areawide planning and management assistance.
(a) Single recipient. Assistance will be provided to only one
areawide planning organization in each metropolitan and nonmetropolitan
planning jurisdiction. An exception may be made when State enabling
legislation does not permit the formation of a single areawide planning
organization for a multistate planning area.
(b) Jurisdiction and organization requirements -- (1) Jurisdiction.
Planning area jurisdiction is determined by consideration of the
following factors:
(i) The planning area jurisdiction for a metropolitan area should
include the Standard Metropolitan Statistical Area (SMSA) plus any
contiguous county or counties now urbanized or likely to become
urbanized in the foreseeable future. Where feasible, contiguous SMSA's
should be included in the same metropolitan areawide planning
jurisdiction. Where the State has established substate planning and
development areas, or districts, the boundaries of proposed areawide
planning jurisdictions should conform to the State-designated areas.
(ii) The planning area jurisdiction for a nonmetropolitan area shall
include one or more counties and one or more units of general local
government, but may not include any portion of any metropolitan area.
Where the State has established substate planning and development areas
or districts, the boundaries of proposed areawide planning jurisdictions
should conform to the State designated areas.
(2) Organization. Unless specifically prohibited by State law,
areawide planning organizations shall meet the following areawide
organizational requirements:
(i) Have open membership to all units of general local government
within the areawide planning jurisdiction;
(ii) Include representatives of units of general local government
which, in aggregate, have within their jurisdiction not less than 75
percent of the population of the metropolitan or nonmetropolitan area.
One representative may represent more than one local governmental
jurisdiction, particularly in the case of smaller jurisdictions, if
jointly selected by the local governments;
(iii) Have a policy-making body with the authority to:
(A) Establish goals, objectives and policies, evaluate programs for
achieving their objectives, and provide for program balance and
coordination in response to State and local needs and priorities;
(B) Provide an overall framework and guide for the preparation of
functional and project plans; and
(C) Provide for coordination and review of projects and activities
that affect development and public management; and
(iv) Provide that at least two-thirds of the voting membership be
composed of, or responsible to the elected officials of a unit of
general local government within the planning jurisdiction. HUD will
consider a waiver of this requirement at the request of the applicant on
a case by case basis. Where HUD determines that it impedes the
development of a unified organization meeting other Federal
organizational requirements, HUD will waive this requirement.
Applicants are encouraged to foster the development of unified
organizations and to seek HUD assistance and cooperation in doing so.
(v) Provide, to the maximum extent possible, proportional
representation for minorities, and adequate representation for women.
(3) Proportional representation. HUD strongly encourages areawide
planning organizations to provide for proportional voting representation
on the basis of population.
(40 FR 36856, Aug. 22, 1975, as amended at 44 FR 54435, Sept. 19,
1979)
24 CFR 600.50 Assistance to applicants having special needs.
(a) Eligible applicants and special requirements. Planning and
management assistance may be provided to applicants having special
needs, as determined by HUD, to the extent that such needs cannot
otherwise be adequately met, including but not limited to the following:
(1) Interstate regional commissions established under the Appalachian
Regional Development Act of 1965 or the Public Works and Economic
Development Act of 1965.
(2) Federally-impacted areas to plan adjustments occasioned by:
(i) Rapid urbanization due to establishments; or rapid and
substantial expansion of a Federal installation; or
(ii) Rapid urbanization, or expectation of such urbanization because
of the development of a new community under Title VII of the Housing and
Urban Development Act of 1970;
(iii) Rapid urbanization or other major impacts due to large-scale
production from major sources of domestic energy resources including the
siting and construction of necessary facilities; or
(iv) Substantial reduction in employment opportunities as the result
of the closing, in whole or in part, of a Federal installation or as a
result of a decline in the volume of government orders for the
procurement of articles or materials produced or manufactured in the
area; provided the actual or foreseen change in employment over a
two-year period is at least 5 percent of the preimpact level.
(3) Any area which is designated by the President as a ''major
disaster area'' in accordance with the Disaster Relief Act of 1974 to
plan for the recovery from the disaster subject to the following:
(i) The application shall be submitted within 180 days from the date
an area is designated by the President as a disaster area; and
(ii) The application shall be reviewed by, and coordinated with, the
designated State disaster relief agency (if such agency exists), as
prescribed in the Disaster Relief Act of 1974.
(b) Form of application. Applicants desiring assistance for special
needs shall apply in the manner and format prescribed by HUD at the time
of inquiry. Due to the extraordinary circumstances facing most
applicants with special needs HUD will determine the most effective
application procedures under those circumstances.
24 CFR 600.55 Eligible activities: All applicants.
(a) Relation to program objectives. (1) Beginning with FY 1979, the
Department will award grants only for those planning and management
activities which clearly further the National Policy Objectives listed
in 600.5. Activities which HUD finds are not clearly related to these
objectives will not be funded. Applicants shall have the discretion to
select work tasks and activities which relate to their local needs and
priorities, so long as all work can be shown to be clearly related to
conserving and improving existing communities, expanding housing and
employment opportunities, and promoting orderly growth. Demonstration,
Indian assistance, and special needs grants may be awarded for such
purposes as are deemed appropriate by the Secretary.
(2) The specific activities undertaken should comprise or contribute
to a State, areawide, or local strategy directed toward the National
Policy Objectives. A strategy consists of a coordinated and consistent
set of action oriented plans, policies, programs and related
implementation activities which are directed toward achieving the
National Policy Objectives. In the case of States and local
governments, a strategy would include the adoption of plans and
policies, the coordinated use of the powers to tax, spend, regulate,
legislate and administer, the provision of technical assistance and
services and the coordination of Federal, State and local programs. In
the case of areawide planning organizations, a strategy would include
the adoption of plans and policies, the establishment of priorities,
recommendations for needed programs and legislative changes, the
promotion of intergovernmental cooperation, and the provision of
services and technical assistance in support of the National Policy
Objectives.
(3) The strategies of all applicants should emphasize coordination of
federal, State and local programs directed toward the achievement of the
Program Objectives.
(b) Eligible activities. In combination, section 701(b), (c), and
(m)(4) of the Housing Act of 1954, as amended, define the planning and
management activities that are eligible for Comprehensive Planning
Assistance grants. These activities, which should be part of a
coordinated strategy to achieve National Policy Objectives, are:
(1) Developing comprehensive plans and processes, including:
(i) Identification of economic, physical and social needs within the
jurisdiction;
(ii) Establishing or revising long term goals and short term
objectives;
(iii) Formulating comprehensive plans, policies, and priorities to
meet identified needs;
(iv) Preparing or revising a housing element, as part of a
comprehensive plan, pursuant to 600.70;
(v) Preparing or revising a land use element, as part of a
comprehensive plan, pursuant to 600.72;
(vi) Preparing any other comprehensive plan elements such as for
commercial or industrial development, community facilities and services,
transportation, economic development, social services, parks and
recreation, energy conservation, public utilities or facilities, flood
protection, environmental or historic preservation, natural resource
protection, or government services.
(2) Implementation of comprehensive plans and policies, including:
(i) Preparation of regulatory or legislative measures;
(ii) Setting public and private investment priorities;
(iii) Design of legislative, fiscal, administrative or structural
reform;
(iv) Capital improvement programming;
(v) Coordination of the implementing programs;
(vi) Evaluation of progress in achieving the comprehensive
plan/strategy and relative effectiveness of each implementing measure.
(3) Developing or improving the recipient's capacity for policy
planning and evaluation, particularly for the Chief Executive Officer.
Policy planning and evaluation include the analytical ability of a
recipient to identify its needs and problems more rationally, set long
term policy goals and short term objectives to meet its needs, devise
programs and activities and evaluate its progress towards meeting those
goals and objectives. Development of such capacity may involve, e.g.,
studies to identify problems in one or more policy areas; strengthening
budgeting systems; improving capability to gather, process and analyze
data necessary for rational decisionmaking; devising programs and
reorganizing governmental structures, and strengthening the capacity for
analyzing the impact of programs in meeting policy objectives.
(c) HUD suggested activities. In order to provide direction to
applicants and to illustrate the kinds of activities the Department has
determined to be clearly related to achieving the National Policy
Objectives, and to provide a more precise guide for negotiating annual
grants, the Department offers a list of suggested activities that
grantees, at their option, may undertake. Appendix I to this part
contains a list of activities. The list is not intended to be an
exclusive list of eligible activities. Applicants may undertake other
activities which are clearly related to the National Policy Objectives.
(44 FR 54436, Sept. 19, 1979)
24 CFR 600.58 Ineligible activities: All applicants.
Applicants, as part of their assisted Comprehensive Planning work,
may not include the following:
(a) Acquisition, construction, repair, or rehabilitation of, or the
preparation of engineering drawings or similar detailed specifications
for, specific housing, capital facilities or public works projects;
(b) Routine administrative activities not allowable under Federal
Management Circular, FMC 74-4, Cost Principles Applicable to Grants and
Contract with State and local Governments, or related to the purposes of
the grant, and direct administration of governmental programs;
(c) Political activities; and
(d) Assistance to businesses in relocating to the detriment of
communities where businesses currently are located and assistance to
subcontractors in acquiring business customarily performed by other
subcontractors.
24 CFR 600.59 Waivers.
The Assistant Secretary for Community Planning and Development may
waive any Section, or part thereof, of the regulations in this part not
required by law whenever he determines that:
(a) A planning need exists which cannot otherwise be adequately met
and where the application of such requirement would adversely affect the
purposes of the planning assistance; or
(b) Such requirement would inhibit effective and efficient
administration of Integrated Grant Administration (IGA) or other joint
funding projects.
24 CFR 600.59 Subpart B -- Special Requirements
24 CFR 600.60 Purpose.
The purpose of this subpart is to describe special requirements with
which applicants must comply in order to receive Comprehensive Planning
Assistance.
24 CFR 600.65 Environmental requirements.
(a) Requirements. This subsection applies to planning and management
activities, funded in whole or part by a Comprehensive Planning
Assistance grant, which directly relate to physical development policies
and programs of the applicant. Such physical developmental planning and
management must conform to the provisions of the National Environmental
Policy Act of 1969. For such activities, applicants must include in
their comprehensive planning process adequate consideration of
environmental problems, and formulation of policies and programs to
address such problems to assure that environmental matters are addressed
during the comprehensive planning process.
(b) Inclusion of environmental planning in the comprehensive planning
process. Each applicant throughout all phases of the physical
developmental planning aspects of its assisted comprehensive planning
work must:
(1) Identify environmental problems and issues, including applicable
Federal, State and local environmental policies and standards, which it
determines to be of major significance within the planning area;
examples of the types of issues which may need to be considered include:
land resources, air and water quality, noise, flood plain management,
wetlands and historic preservation.
(2) Identify and analyze any adverse environmental effects which
cannot be avoided, resulting from proposed developmental policies and
programs;
(3) Formulate policies and programs, including possible alternative
solutions, to address such problems, and
(4) Identify Federal, State and local environmental programs and
mitigation measures which can assist in alleviating identified problems
and indicate how such resources and mitigation measures shall be
utilized.
(44 FR 54436, Sept. 19, 1979)
24 CFR 600.66 Historic preservation requirements.
This section applies to physical development planning and management
activities, funded in whole or part by a Comprehensive Planning
Assistance grant, or any other type of funded activity, which may
adversely impact any property or district included in, or found by the
Secretary of the Interior pursuant to 36 CFR part 63 to be eligible for
inclusion in, the National Register of Historic Places. Where the
applicant determines that assisted planning and management activities
are likely to impact on such properties, an applicant must:
(a) Consult with the appropriate State Historic Preservation Officer,
designated under agreements between the State and the Secretary of the
Interior, concerning action to be taken to avoid the adverse impacts on
the property or district; and
(b) Consider or propose alternative policies or plans to mitigate or
avoid the adverse impacts on the property or district.
(c) Where the proposed plans are general or cover a large area (city,
county, region or State) include general types of mitigation or
safeguard actions that should be observed in planning the development of
those specific sectors which contain National Register properties.
(44 FR 54437, Sept. 19, 1979)
24 CFR 600.67 Comprehensive planning requirement.
(a) General. Each recipient of assistance shall carry out an ongoing
comprehensive planning process.
(b) Comprehensive plan requirement. Each recipient of assistance
shall develop a comprehensive plan that, over time, addresses the
elements of comprehensive planning as described in 600.53 as the
recipient determines to be appropriate to its needs and
responsibilities. Such plan shall include, as a minimum, a housing
element and a land use element, which elements shall be consistent with
each other and with stated national policy objectives including the
President's National Urban Policy. The elements shall specify broad
goals and annual objectives (in measurable terms wherever possible);
programs designed to accomplish the objectives and procedures, including
criteria set forth in advance for evaluating programs and activities to
determine whether the objectives are being met.
(c) Limitations. No grant shall be made to any applicant identified
in 600.25 (a) through (f) unless the applicant has satisfied the
requirements of the housing and land use elements in 600.70 and
600.72, except that this prohibition shall not be applicable if the
applicant has never been a prior recipient of a comprehensive planning
grant (other than a special needs grant pursuant to 600.50). For the
purpose of making the determination whether an applicant has received a
prior 701 grant, a 701 grant is defined as:
(1) The use of 701 funds by or on behalf of a recipient who provides
all or a portion of the non-Federal match or
(2) The use of 701 funds to support a recipient's staff regardless of
who provides the non-Federal match. Services, financed in whole or in
part with 701 funds, provided at no cost to recipients are not
considered grants.
(d) Use of other plans and studies. Section 701(a) of the Housing
Act of 1954, as amended, provides that,
To the maximum extent feasible, pertinent plans and studies already
made for areas shall be utilized so as to avoid unnecessary repetition
of effort and expense.
It is HUD policy to accept such plans and studies to the degree that
they meet the requirements of this part, particularly the requirements
of 600.70 and 600.72. Accordingly, HUD will not approve applications
which propose activities that duplicate existing or ongoing plans or
studies.
(40 FR 36856, Aug. 22, 1975, as amended at 44 FR 54437, Sept. 19,
1979)
24 CFR 600.68 Energy conservation requirements.
(a) Requirements. This section applies to planning and management
activities funded in whole or in part by a Comprehensive Planning
Assistance grant. As specified in 600.55, all 701 funded planning
activities must clearly further the National Policy Objectives for the
conservation and improvement of existing communities, the increase of
housing and employment opportunities, and the promotion of orderly and
efficient growth and development. As part of these activities,
applicants must include in their comprehensive planning process
consideration of energy conservation measures, as appropriate. To
assure that energy conservation is addressed as part of the
comprehensive planning process, applicants should include consideration
of:
(1) Energy problems and issues, including applicable Federal, State
and local energy policies and standards which the applicant determines
to be of major significance in its efforts to conserve and improve
existing communities, increase housing and employment opportunities for
the poor, disadvantaged and minorities; and to promote orderly growth
and development.
(2) The impact of proposed development policies and programs to
determine effects on energy consumption, particularly petroleum and
natural gas.
(3) Federal, State and local energy conservation plans and programs
in the development of plans, programs and policies which achieve the
National Policy objectives.
(Sec. 7(d), Department of HUD (42 U.S.C. 3535(d)), sec. 701 of the
Housing Act of 1954, as amended (40 U.S.C. 461, et seq.))
(45 FR 57967, Aug. 29, 1980)
24 CFR 600.70 Required housing element.
(a) General. The housing element required in 600.67 shall promote
the realization as soon as feasible of the goals of a decent home and a
suitable living environment for every American family pursuant to Title
XVI of the Housing Act of 1968, as amended. In developing this element
recipients shall:
(1) Take into account all available evidence of the assumptions and
statistical bases upon which the projection of zoning, community
facilities and population growth is based;
(2) Provide for the elimination of the effects of discrimination in
housing based on race, color, religion, sex or national origin and
provide safeguards for the future;
(3) Take into account the need to preserve existing housing and
neighborhoods through such measures as housing preservation,
rehabilitation, changes in tax policies and building codes, improvements
in housing management and maintenance, and the provision of adequate
municipal services; and
(4) Develop and carry out policies, procedures and mechanisms
necessary for coordinating local, areawide and State housing policies
with functional planning and capital investment strategies, when
available.
(b) Requirements. The housing element requirements by applicant
category are as follows:
(1) States. States shall develop policies, strategies, legislative
and administrative proposals and evaluation techniques necessary to
accomplish State housing goals and objectives and, where applicable,
develop a policy or plan for the geographical allocation of State
controlled housing assistance.
(2) Areawide planning organizations. Areawide planning organizations
shall: (i) Identify the housing needs of the current and prospective
population by appropriate geographic sectors and provide for the
distribution of housing resources (including assisted housing) to meet
the needs of all citizens in order to provide a choice of housing types
and location; and
(ii) Develop policies, strategies and legislative and administrative
proposals necessary to accomplish areawide housing goals and objectives.
(3) Large cities, urban counties and localities. Large cities, urban
counties and localities shall: (i) Identify the housing needs of the
current and prospective population by appropriate geographic sectors and
identifiable segments of the population and provide for the distribution
of housing resources (including assisted housing) to meet the needs of
all citizens in order to provide a choice of housing types and location;
(ii) Develop public-private policies, strategies and implementation
activities necessary to accomplish housing goals and objectives,
including the provision of essential public facilities and services;
and
(iii) Take into account the housing planning activities and plans
undertaken pursuant to Titles I and II of the Housing and Community
Development Act of 1974 in developing their housing element. Funds will
not be made available for duplicative basic data collection and
analysis.
(c) Agreements for housing planning. Large cities, counties and
localities may enter into agreements with county or areawide planning
organizations to provide some or all of the required housing planning,
provided that the combined housing planning is of sufficient detail
(pursuant to this section) and the large city, county, or locality
develops policies, strategies and implementation activities necessary to
accomplish housing goals and objectives, including the provision of
essential public facilities and services.
(40 FR 36856, Aug. 22, 1975, as amended at 44 FR 54437, Sept. 19,
1979)
24 CFR 600.72 Required land use element.
(a) Intent. It is the intent of this section to enable States, units
of general local government and areawide planning organizations to
integrate all existing land use policies and functional planning
activities impacting land use and to involve Federal, State and other
public agencies charged with significant functional planning or land
management responsibilities in the development of the land use element
required in 600.67. The unified land use policies and plans of a State,
unit of general local government and areawide planning organization
should be such that they serve as a guide for Federal, State and local
governmental decisionmaking on all matters related to the use of land,
including, for example, air and water quality concerns, waste disposal,
transportation, protection of coastal areas, open space, agricultural
food and fiber production, environmental conservation, development and
housing. A further objective is to facilitate coordinated land use
policies among the various levels of government. Recipients will have
latitude to develop the land use element in a form which will allow them
to meet the requirements of other Federal programs requiring comparable
land use elements or components thereof. It is the further intent of
this section to permit recipient jurisdictions to address other
significant land use problems which it determines to be of priority
concern based on a consideration of those which are of principal
relevance to the area affected. In selecting its priorities for action,
each recipient should consider:
(1) Existing uses of land and land resources;
(2) Projections of land use needs and land resource development
including energy facilities siting needs;
(3) Housing needs, including housing assistance, and the relationship
of housing to employment opportunities;
(4) Identification of public facilities, utilities, open space and
recreation needs, transportation needs and other services required to
support projected uses of land;
(5) The impact of the recipient's proposed policies (including tax
policies) on air and water quality, coastal zone management, waste
disposal, areas of critical concern, natural resources including
productive soils (especially for agricultural production), availability
of and need for conserving natural resources and energy, and disaster
mitigation activities;
(6) Distribution of growth including possible locations for new
communities, large scale projects and key facilities;
(7) The conservation of energy through land use strategies designed
to reduce energy consumption and the development of policies designed to
facilitate the recovery of energy resources in a manner compatible with
environmental protection and future reuse of lands; and
(8) The effect of major Federal activities on State, areawide and/or
local planning and development.
(b) States and areawide planning organizations. Each State and
areawide planning organization, in accordance with the policies
established through the consultation process in 600.120 and included in
the State overall program design, shall include the following in its
land use element:
(1) Long and short term policies, and where appropriate
administrative procedures and legislative proposals, with regard to
where growth should and should not take place;
(2) The type, intensity and timing of growth;
(3) Studies, criteria, standards and implementing procedures
necessary for effectively guiding and controlling major decisions as to
where growth shall and shall not take place; and
(4) Policies, procedures, and mechanisms necessary for coordinating
local, areawide, and State land use policies with functional planning
and capital investment strategies, when available, and improvements in
governmental structures, systems and procedures that will facilitate the
achievement of land use objectives.
(c) Large cities, urban counties and localities. In accordance with
the policies established through the consultation process in 600.120
and included in the State overall program design, each large city, urban
county and locality shall include the following in its land use element:
(1) Long and short term policies and plans with respect to the
physical development of the large city, urban county or locality,
considering the social, economic and environmental impacts;
(2) Studies, criteria, standards and implementing procedures
necessary for effectively guiding and controlling major decisions as to
where growth shall and shall not take place;
(3) The pattern, intensity and timing of land use for residential,
commercial, industrial and other uses; and
(4) Policies, procedures and mechanisms necessary for coordination of
land use planning with community development strategies; capital
improvement programs; transportation; open space; public utilities
and facilities planning; and State and areawide land use plans.
(d) Agreements for land use planning. Large cities, urban counties
and localities may enter into agreements with county or areawide
planning organizations to undertake land use planning of sufficient
detail, pursuant to this section, in lieu of undertaking land use
planning individually, provided that:
(1) The large city, urban county or locality land use element
includes studies, criteria, standards and implementing procedures
necessary for effectively guiding and controlling major decisions as to
where growth shall and shall not take place; and
(2) The land use planning and implementation efforts are coordinated
with other municipal or county functional programs and policies.
(40 FR 36856, Aug. 22, 1975, as amended at 44 FR 54437, Sept. 19,
1979)
24 CFR 600.73 Land use and housing elements; review and approval
process.
Compliance by applicants, identified in 600.25(a) through (f), with
the housing and land use elements required by 600.67(b), and more
particularly described in 600.70 and 600.72 will be determined in
accordance with the following:
(a) Request for approval. The request for approval shall be
transmitted by letter from the applicant's chief executive officer and
shall consist of a summary statement and documentation as identified in
paragraphs (b), (c) and (d) of this section. The letter shall indicate
that the summary statement and documents submitted in support of the
applicant's request for approval have been endorsed or adopted by the
chief executive for the jurisdiction with respect to the element in
question. In cases where the chief executive officer indicates in the
letter that he or she lacks the authority to endorse or adopt, the
letter shall indicate what measures are being undertaken to achieve
endorsement and/or adoption by the legislature or other agencies or
officials authorized by State or local law to endorse and/or adopt the
land use and housing elements for the jurisdiction.
(b) Summary statement. Each applicant shall submit a summary
statement, prepared in accordance with paragraph (c) of this section.
This summary statement will serve as the primary basis for review by HUD
or by the State (in the case of applicants applying to the state for
grant assistance) to determine the acceptability of the housing and land
use elements. To facilitate review, HUD or the state may also require
an oral presentation of data relating to the elements. Applicants may
initiate informal consultation with HUD or the state prior to formal
submission. As an advisory service, HUD is publishing a companion
Notice in the Federal Register entitled Guidelines for Compliance with
Land Use and Housing Element Requirements.
(c) Summary statement contents. The summary statement shall contain
a brief description of how each requirement of the land use and housing
elements has been satisfied with citations to the supporting reports and
documents. Each of the following requirements must be addressed,
including descriptions and citations of other Federally supported plans
and program documents which are used to satisfy all or a portion of the
701 land use and housing element requirements. Where no report or
document exists to evidence compliance with a requirement, the summary
statement should be of sufficient detail to enable HUD to make a
determination of compliance with the requirement.
(1) Land use and housing elements. All applicants. Section
600.67(b): consistency of the two elements, broad goals, annual
objectives, programs designed to accomplish the objectives and
procedures and criteria to be used in evaluating programs and activities
to determine whether the objectives are being met.
(2) Land use element -- (i) States and areawides. Section 600.72(b)
(1) through (4).
(ii) Large cities, urban counties and localities. Section 600.72(c)
(1) through (4).
(3) Housing element -- (i) All applicants. Section 600.70(a) (1)
through (4).
(ii) States. Section 600.70(b)(1).
(iii) Areawide planning organizations. Section 600.70(b)(2) (i) and
(ii).
(iv) Large cities, urban counties and localities. Section
600.70(b)(3) (i) through (iii).
(4) Environmental requirements: All applicants. Section
600.65(b)(1) through (4).
(5) Historic preservation requirements: All applicants. Section
600.66.
(6) Consistency assurances. Comprehensive planning assistance
recipients who have completed one or more of the plans required under
the Federal planning programs included below shall assure that the land
use related provisions of such plans and the land use and/or housing
elements prepared to fulfill the requirements of the 701 program are
consistent with one another. If such assurance cannot be made because
there are inconsistencies, the summary statement shall identify the
inconsistencies and the steps that will be taken to make them
consistent. Recipients that are preparing, but have not completed plans
required under the Federal planning programs included below shall assure
that such plans and the 701 land use and/or housing elements will be
made consistent with each other.
(i) Comprehensive Management Program of the Coastal Zone Management
Act of 1972, as amended.
(ii) Areawide Waste Treatment Management Planning Assistance Program
(208) of the Federal Water Pollution Control Act Amendments of 1972.
(iii) State Implementation Plan (SIP) Program of the Clean Air Act,
as amended.
(iv) Outdoor Recreation Program, Land and Water Conservation Fund Act
of 1965, as amended.
(d) Documentation. Applicants shall submit all documents which in
their judgment are necessary to satisfy the requirements of 600.65,
600.66, 600.67, 600.70, 600.72 and this section. Such documents may
consist of policy plans, statements, texts, maps or other means of
policy expression, and capital improvement programs, regulatory programs
and other means of implementation. In cases where such documents have
been previously submitted to HUD, they need only be cited.
(e) Notifications. The notifications provided below shall be carried
out by all applicants:
(1) Legislative notification. Where a state or local government
chief executive officer or other designated official or agency intends
to submit proposals to implement the land use and/or housing elements to
the legislative body, such intentions should be indicated in the summary
statement. In the case of areawide planning organizations, the summary
statement shall be officially transmitted to member jurisdictions and
shall cite all documents which constitute the 701 land use and/or
housing elements. Member jurisdictions shall have all documents cited
in the summary statement available to them upon request to the areawide
planning organization. The transmittal letter shall identify areas of
potential municipal or county legislative or other action and indicate
that the summary statement and documents are being submitted to HUD in
satisfaction of HUD's land use and/or housing element requirements.
(2) Clearinghouse notification. The summary statement shall be
submitted for review and comment to the state and regional or
metropolitan clearinghouses having jurisdiction simultaneously with
submittal to HUD. Each clearinghouse has a maximum of 45 days to
provide HUD with comments. Such comments shall take into account the
subject matter of clearinghouse comments and recommendations as
discussed in paragraph 5, Part I, Attachment A of OMB Circular No. A-95
(41 FR 2052). The clearinghouse may request any documents cited by the
applicant in the summary statement that the clearinghouse deems
necessary to complete its review.
(f) Review criteria. HUD review shall be based on whether the
applicant has met the requirements applicable to the land use and
housing element, as found in:
(1) Section 600.67(b). Comprehensive plan requirements establishing
general requirements applicable to the requisite elements;
(2) Section 600.70. Required housing element describing the
components of the housing element:
(3) Section 600.72. Required land use element describing the
components of the land use element;
(4) Section 600.65. Environmental requirements describing the
environmental considerations required for developmental plans or
policies including land use and housing plans and policies.
(5) Section 600.66. Historic preservation requirements describing the
historic preservation consideration required for plans or policies which
may impact properties included in, or found by the Secretary of Interior
pursuant to 36 CFR part 63 to be eligible for inclusion in the National
Register, including land use and housing plans and policies.
(g) Approval and disapproval. Approvals and disapprovals shall be
made by designated Department officials.
(1) Approvals. Approvals shall be made in writing and be based upon
a finding that all of the requirements applicable to the land use and
housing elements required of recipients have been met. Such approval
extends only to compliance with the land use and/or housing element
requirements and not to the appropriateness of the policies and plans
submitted for the jurisdiction.
(2) Disapprovals. A disapproval action shall be made in writing and
clearly delineate the reasons for disapproval and specify what
corrective actions shall be necessary to obtain approval.
(h) Timing of approvals. Requests for approval may be submitted at
the convenience of the applicant. In order to insure continuity in
on-going programs, requests for approval after August 22, 1977 should be
submitted to HUD at least 75 days prior to the expected date of the
beginning of the recipient's next project period.
(i) Certification by new applicants. Applicants which have never
been a recipient of a comprehensive planning grant applying directly to
HUD or to the State after August 22, 1977 shall indicate in writing that
they have never received a grant.
(j) State review and approval process. Pursuant to 600.115(c), the
State overall program design (OPD) shall describe the review and
approval process to be used in determining substate compliance by
applicants applying to the State with the requirements identified in
600.73(f). Approvals and disapprovals shall be made by the official
designated by law or by the governor for approving substate grants.
Such approval shall extend only to compliance with the land use and/or
housing element requirements and not to the appropriateness of the
policies and plans submitted for the jurisdiction. At a minimum the
State process shall include:
(1) Request for approval by the applicant's chief executive officer
in accordance with the general provisions of 600.73(a);
(2) Clearinghouse review and comment;
(3) Interagency coordination pursuant to 600.73(c)(6);
(4) Compliance with all applicable requirements of this part;
(5) A clear statement of the reasons for any disapprovals; and
(6) An adequate record of all actions taken.
(k) HUD review of State approvals of required elements. (1) HUD
shall review and concur in all State actions on land use and housing
elements for an applicant applying to the State on a voluntary basis
pursuant to 600.120(j): A state may not award any grants to such an
applicant, except as provided in 600.67(c) until HUD concurrence has
been obtained on the State approval of the applicant's land use and
housing element. When mutually agreeable between HUD and the State, a
joint review and approval process is encouraged to facilitate the review
of land use and housing elements for applicants applying to the State on
a voluntary basis.
(2) For monitoring purposes HUD will also selectively review State
actions on applicants required to apply to the State.
(l) Triennial review. Each applicant whose land use and housing
elements are approved pursuant to this section shall submit an
evaluation to HUD or the State triennially, beginning no later than
three years from the date the last element was approved.
(1) Applicant's evaluation. The evaluation of progress shall
indicate:
(i) The extent to which the comprehensive plan (including land use,
housing and any other elements) is consistent with the National Policy
Objectives;
(ii) Actions taken to implement HUD approved land use and housing
elements, and other elements of the comprehensive plan or strategies
which are consistent with the National Policy Objectives;
(iii) Relative effectiveness and impacts of actions taken to
implement the comprehensive plan, its elements or strategies; and
(iv) The reasons for lack of implementation, where such actions have
not been carried out.
(2) Triennial review criteria. HUD or the State will review the
applicant's evaluation and otherwise monitor applicant performance in
order to determine:
(i) Progress in achieving the National Policy Objectives through
implementation of comprehensive plans or strategies;
(ii) Potential need for technical assistance to the applicant
regarding:
(a) Failure to address the National Policy Objectives adequately and
additional actions to be taken to achieve consistency with National
Policy Objectives;
(b) The relationship of the applicant's strategies to other State,
areawide or local strategies and implementation actions, and
(c) The feasibility and utility of comprehensive plans or strategies
as aids for administration of Federal, State, and local housing and
community and economic development programs.
(42 FR 6095, Feb. 1, 1977, as amended at 44 FR 21227, Apr. 9, 1979;
44 FR 54437, Sept. 19, 1979)
24 CFR 600.75 Equal opportunity requirements.
(a) General. All planning assisted under the Comprehensive Planning
Assistance Program is subject to the provisions of:
(1) Title VI of the Civil Rights Act of 1964, 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
subjected to discrimination under any program or activity receiving
Federal financial assistance.
(2) Title VIII of the Civil Rights Act of 1968, which provides that
it is the policy of the United States to provide, within constitutional
limitations, fair housing throughout the United States, and requires the
Secretary of HUD to administer the Department's programs and activities
in a manner affirmatively to further the policies of Title VIII.
(3) The equal opportunity clause included in Part IV of the Grant
Document, Terms and Conditions Governing Grants for Comprehensive
Planning Assistance.
(4) Section 3 of the Housing and Urban Development Act of 1968 and
the regulations and requirements issued by HUD pursuant thereto (24 CFR
part 135). For purposes of this section the section 3 project area is
defined as follows:
(i) For State agencies where work programs will be accomplished by
the State, the location of the project area shall be the smallest
political jurisdiction within which the agency maintains its office. If
the anticipated work program will generate employment relative to the
grant in any political jurisdiction other than the one where the agency
office is located, such jurisdiction shall be considered to be the
location of a project area for work performed there.
(ii) For areawide planning organizations (metropolitan and
nonmetropolitan), the location of the project area shall be the smallest
political jurisdiction in which the agency maintains its office. If the
anticipated work program will generate employment relative to the grant
in any political jurisdiction other than the one where the agency office
is located, such jurisdiction shall be considered to be the location of
a project area for work performed there.
(iii) For large cities, counties and localities, the location of the
project area shall be the recipient's political jurisdiction.
(b) Requirements. Each applicant shall:
(1) Submit in its application package a copy of Form HUD-7026.4,
Assurances; and
(2) Indicate in the Overall Program Design those work activities
which will contribute to correcting the effects of past discrimination
and the manner in which they will do so, and describe how those work
activities that relate to the provision of opportunities, services and
facilities will benefit residents of the planning area on a
nondiscriminatory basis.
(c) Evaluation. States providing planning and management assistance
and services to substate applicants shall obtain from such applicants an
assurance of compliance with all equal opportunity requirements; and on
a continuing basis, as provided in 600.135(f), the States shall
evaluate the substate applicants' performance in determining the scope
of equal opportunity activities and programs and in fulfilling the
obligations of such assurance.
24 CFR 600.77 Handicapped requirements.
Recipients of Comprehensive Planning Assistance shall comply with
section 504 of the Rehabilitation Act of 1973, as amended, regarding
nondiscrimination based on Handicapped in programs or activities
receiving Federal financial assistance.
(44 FR 54438, Sept. 19, 1979)
24 CFR 600.80 Citizen involvement.
(a) Requirement. The ongoing comprehensive planning process required
by 600.67 shall make provision for citizen involvement where major
plans, policies, priorities, or objectives are being determined.
Consideration must be given to insuring that handicapped citizens may
also participate in this process.
(b) Criteria. The following criteria will be used to measure
compliance with the citizen involvement requirement.
(1) Extent of interaction and involvement. Citizens in addition to
being informed should have the opportunity to help initiate as well as
react to proposals.
(2) Access to the decision making process. The applicant should
provide citizens with access to the decision making process. The
requirements of this section do not include concurrence by any person or
group involved in the citizen involvement activities in making final
determinations. Such determinations shall be the sole responsibility of
the applicant.
(3) Communication techniques. Information should be provided
sufficiently in advance of public decisions to give citizens an adequate
opportunity to review and to react to proposals. Applicants should seek
to relate technical data and other professional material to the affected
citizens so that they understand the impact of public programs,
available options, and alternative decisions.
(c) Statement of citizen involvement. Each applicant must include a
statement of citizen involvement in its progress report. Such statement
shall identify specific activities undertaken to meet the criteria in
paragraph (b) of this section.
(40 FR 36856, Aug. 22, 1975, as amended at 44 FR 54438, Sept. 19,
1979)
24 CFR 600.81 Interchange of cartographic data.
(a) General. HUD and the U.S. Geological Survey (USGS) have agreed
to establish procedures for the interchange of cartographic data to
support the needs of HUD and other Federal programs. USGS will provide
701 grantees with information on basic cartographic data from existing
sources, and in turn cartographic data generated by 701 grantees will be
entered into the USGS data bases and made available to other users.
(b) Implementation. Applicants proposing to undertake mapping
projects as part of the program shall comply with the following
procedures.
(1) Submit the specific needs for aerial photographs and/or base map
data to the USGS National Cartographic Information Center (NCIC) on the
Cartographic Information Inquiry form available from HUD or USGS.
(2) Conduct a local search to determine whether other suitable
cartographic data is available.
(3) Determine from the USGS response, which will be made within 30
days on a Cartographic Information Response form, and the local search
whether existing aerial photographs and base map sources can serve the
needs identified.
(4) Include a copy of the USGS response with the application for 701
assistance.
(5) Submit to USGS, and to HUD as a part of the Project Completion
Report, a copy of the Cartographic Products Description Report form that
will be enclosed with the USGS response to the initial inquiry.
(c) Funding limitation. HUD will not fund any mapping activities
that are undertaken without following the procedures in paragraph (b) of
this section.
(44 FR 54438, Sept. 19, 1979)
24 CFR 600.81 Subpart C -- Procedural Requirements
24 CFR 600.85 Purpose.
This subpart sets forth the procedures for requesting a Comprehensive
Planning Assistance grant.
24 CFR 600.90 Steps for application submission, negotiation and
approval.
Applications may be submitted in accordance with an administrative
schedule established by HUD, annually. The following are the basic
steps in the process of submitting application proposals:
(a) Notification of the appropriate HUD Office of the intention to
submit an application for Comprehensive Planning Assistance. This
notification procedure refers primarily to first time applicants.
(b) Notification of the appropriate designated clearinghouse(s) of
the intent to submit an application consistent with OMB Circular A-95.
Notification to USGS of proposed mapping activities in accordance with
600.81, if appropriate.
(c) Submission of a preliminary application upon request to the
appropriate HUD Office. This should be accomplished well in advance of
expiration of any current grant.
(d) Holding a negotiation conference with HUD officials. The
Governor, mayor, or city or county executive or the highest policy
officer of an areawide planning organization should be represented at
the negotiation conference. Negotiations with HUD, when necessary, will
focus on:
(1) Relevance of the proposed activities to the National Policy
Objectives of 600.5;
(2) Applicant performance relative to the criteria of 600.10(d);
(3) Relationship of proposed activities to the applicant's three year
overall program design required by 600.105 and
(4) Cooperative agreements to be undertaken as is provided for under
600.6.
(e) Resubmission of the application with changes as agreed upon
following the negotiation with HUD officials.
(f) Receipt of approval of application and notice of grant award.
(40 FR 36856, Aug. 22, 1975, as amended at 44 FR 54438, Sept. 19,
1979)
24 CFR 600.95 Applications by States.
States are required to submit a single application which shall
include sections for statewide planning, assistance to legislatures, if
applicable, and for substate assistance as is required by 600.115(d).
Substate applicant categories (large city, urban county, metropolitan,
nonmetropolitan and locality). States may request separate grants based
upon one Overall program design.
(44 FR 54438, Sept. 19, 1979)
24 CFR 600.100 The application package.
States, areawide planning organizations, large cities and urban
counties are required to use a standard application package and to
prepare a brief and concise overall program design except when applying
for the first time or applying on the basis of a special planning need
pursuant to 600.50. The application package shall include:
(a) Application for Federal Assistance (Standard Form 424);
(b) Overall Program Design, as described by 600.105 and 600.115,
shall be submitted, beginning in FY 1979, to cover a 3 year period. At
the end of the 3 year period, a new Overall Program Design shall be
submitted which covers the next three year period;
(c) Annual Work Program, as described in 600.107, and Annual Work
Program Summary (Form HUD-7026.2) listing all subcategories (or portions
thereof) to be undertaken during the first work year.
(d) Annual Grant Budget (Form HUD-7026.3) which shall be the basis
for fiscal audit of the grant;
(e) Such additional information as HUD may request relating to such
items as applicant's legal status and planning jurisdiction;
(f) A brief statement of the applicant's organizational
characteristics, including policy board composition and representation
in the case of areawide planning organizations as required in
600.40(b). Also included should be the staffing profile by type, number,
racial composition and sex of staff positions, authorized and filled,
and by salary range for each position.
(g) A copy of all A-95 review comments (and any other review
comments) received regarding the proposed Overall Program Design.
(h) A copy of ''Assurances'' (Form HUD-7026.4).
(40 FR 36856, Aug. 22, 1975, as amended at 44 FR 54438, Sept. 19,
1979)
24 CFR 600.105 Overall Program Design.
(a) Content. The Overall Program Design (OPD) is a statement of the
objectives the applicant intends to achieve over the next three years
with Comprehensive Planning Assistance, as well as with other Federal or
non-Federal assistance. The OPD must address the objectives identified
in 600.5. An OPD shall be submitted to cover a 3 year period except for
new, first time applicants, and those that are not funded annually who
need only prepare an annual work program.
(b) Format. The format of the OPD may take any form deemed
appropriate by the applicant provided it conveys how all work to be
funded with 701 clearly relates to the National Policy Objectives
including:
(1) The applicants key issues, problems and opportunities, including
at a minimum, those related to the National Policy Objectives;
(2) The brief statement of the applicants' goals relative to the
issues identified in paragraph (b)(1) of this section;
(3) The objectives, in measurable terms, that will be undertaken
within the next three years in support of the goals identified in
paragraph (b)(2) of this section;
(4) The source of funds to be used in support of the objectives
including local funds and other Federal assistance on the annual work
program summary (Form HUD-7026.2); and
(5) A narrative statement of how the proposed goals and objectives
address all of the National Policy Objectives 600.5 over the three year
period of the OPD or an explanation of how one or more of the National
Policy Objectives has been achieved or needs no further work.
(44 FR 54438, Sept. 19, 1979)
24 CFR 600.107 Annual work program.
An annual work program shall be submitted as part of each
application. The annual work program shall describe the activities
proposed to be undertaken in the upcoming program year. It shall
include the following information:
(a) Work elements. A brief identification of major work elements to
be conducted to achieve program objectives. Over a three year period,
activities must be undertaken to further the achievement of each of the
National Policy Objectives identified in 600.5 consistent with the
overall program design. All National Policy Objectives need not be
addressed each year. However, over the span of the three years covered
by the OPD, activities must be carried out in support of each of the
three National Policy Objectives unless an applicant has shown in the
OPD that one or more of the objectives has been achieved and needs no
further work. Annual work programs of individual localities must also
be clearly related to the National Policy Objectives. Locality work
programs need not address all three objectives since their programs are
usually limited to one year or less and they are not funded each year.
States, however, must assure that funds awarded to them for pass-thru to
localities, in the aggregate, support all three National Policy
Objectives.
(b) End products. A brief statement of the end products and
anticipated impacts of the proposed work activities.
(c) Coordination statement. A brief statement which describes how
the applicant will coordinate its work elements with related activities
being performed by other agencies, other levels of government, or the
private sector, in support of the Objectives in 600.5.
(d) Citizen involvement statement. A brief statement of how the
applicant will meet the citizen involvement requirements of 600.80.
(e) Mapping response. For applicants proposing to undertake the
preparation of base maps or aerial photography, a copy of the U.S.
Geological Survey response as required by 600.81.
(44 FR 54439, Sept. 19, 1979)
24 CFR 600.107 Subpart D -- State Procedures for Substate Planning and Management Assistance and Services
24 CFR 600.110 Purpose.
This subpart sets forth procedural requirements by which States
submit Overall Program Designs for statewide planning, and planning and
management assistance and services for substate applicants.
24 CFR 600.115 State Overall Program Design.
A State OPD shall include the following:
(a) A statewide planning and management program in the format
prescribed by 600.105.
(b) A statewide planning and management services section that
identifies State services to be provided to substate units of government
and areawide planning organizations.
(c) A State monitoring and evaluation section that identifies the
procedures to be followed by the State in monitoring and evaluating its
subgrantees and for insuring that recipients comply with all program
requirements.
(d) A section developed in consultation with the advisory group
required by 600.120(b), that addresses the following:
(1) State strategies and objectives for the use of substate
assistance which clearly relate to the objectives in 600.5 and state
and substate needs;
(2) Identification of the responsibilities of all units of government
for implementing State, regional and local strategies clearly supporting
objectives in 600.5;
(3) State allocation systems to be used in determining grant awards
to substate applicants applying to the State, which shall be developed
in consultation with the advisory group required by 600.120(b), must
include, but are not limited to, the following:
(i) Criteria to ensure that, in the aggregate, local assistance funds
are used in support of all three of the National Policy Objectives of
600.5;
(ii) The degree to which areawide applicants are responsive to all
three National Policy Objectives of 600.5;
(iii) The degree to which applicants are responsive to State policies
and priorities and the consistency of plans among levels of government;
(iv) An evaluation of areawide use of plans and coordination of
activities; and
(v) The adequacy of program management and the degree to which
special program requirements are satisfied.
(40 FR 36856, Aug. 22, 1975, as amended at 44 FR 54439, Sept. 19,
1979)
24 CFR 600.120 Summary of substate planning and management assistance
procedures.
The following describes procedures which States shall employ for
managing substate planning and management assistance;
(a) Intent. It is HUD's intent to give States major responsibility
and discretion, in consultation with substate applicants, for
administering a program of planning and management assistance and
services for substate applicants required under 600.25, or electing to
apply to the State under paragraph (j) of this section. HUD's main
concern will be with the State's administration of substate assistance
and services according to the requirements of this part.
(b) Consultation process. States shall develop policies, strategies,
administrative procedures and requirements to be employed in
administering substate assistance, in carrying out State
responsibilities under the A-95 procedure and in providing overall
guidance to all substate applicants. These policies shall be developed
in consultation with an advisory group representative of substate
applicant categories. The State shall undertake consultations annually,
prior to the submission of its application.
(c) Advisory group composition. The advisory group shall be composed
of persons designated by the State and shall include appropriate
representation from each of the following:
(1) Localities;
(2) Large cities and urban counties;
(3) Metropolitan areawide planning organizations; and
(4) Nonmetropolitan areawide planning organizations.
(d) Elected officials review. Elected officials representative of
the categories identified in paragraph (c) of this section shall be
afforded an opportunity for review and comment on the policies and
strategies developed by the State in consultation with its advisory
group. These comments shall be considered by the State prior to the
inclusion of these policies in the applicable sections of the State
Overall Program Design. The elected officials to be provided an
opportunity to review and comment on the State policies shall be
designated by the State in consultation with its advisory group.
(e) OPD section copies. State shall provide each substate applicant
eligible to apply directly to HUD a copy of the section of the OPD
required by 600.115(d). Substate applicants required by law to apply to
the State shall be provided copies at the time they make inquiry for
assistance.
(f) Consultation records. The State shall maintain a record of all
its actions taken pursuant to the consultation requirement and of the
comments received from elected officials.
(g) Application submission. After the HUD Office has identified
bench mark grant figures, the State may submit an application, based
upon which lump sum amounts of assistance for substate categories will
be negotiated with HUD.
(h) Annual grant budget. The grant amounts for substate categories
will be included in the State annual grant and will appear as subtotals
in the annual grant budget (Form HUD 7026.3). States may use a
reasonable portion of the metropolitan, nonmetropolitan and local
assistance funds they are administering to defray the cost of its
administration. The amount to be used for such purpose must be
negotiated with HUD and should be identified separately in the annual
grant budget. States may also use a portion of local assistance funds
to provide services to substate governments. The amount of local
assistance funds proposed to be retained for such services shall be
reviewed in the State consultation with its advisory group and approved
by HUD. A portion of the funds budgeted for localities may be utilized
by States or areawide planning organizations to provide services through
their own staff. Reasonable opportunities shall be provided to
localities to use local staff or to obtain the professional services of
public or private consultants.
(i) Substate timing. Eligible substate applicants for which the
State has responsibility shall request comprehensive planning and
management assistance from the State at times and in the manner
established by the State.
(j) Voluntary agreements. Substate applicants who are eligible to
apply directly to HUD may decide voluntarily to enter into agreements
with States providing for State administration of 701 grant funds. The
substate applicant's decision must be communicated to the State in
writing and be endorsed by the Chief Executive Officer, or in the case
of an areawide planning organization, the highest policy officer. Once
a substate applicant has committed itself in the manner indicated above,
it may not change its decision during the Federal fiscal year in
question. The State shall accept or reject substate requests for State
administration and notify HUD by the date annually established by HUD.
The State notification to HUD must identify the applicants to be
assisted by the State and include copies of the substate applicant
requests.
(k) Expenditure of funds. The grant will be available to the State
only for the duration of the project period.
(l) Commitment of funds. After receiving from HUD the formal
notification of grant approval, the State agency may commit and/or
expend funds effective with the beginning of the project period and
without further HUD concurrence. However, in the case of grants to
counties having a population of 50,000 or more located within
metropolitan areas, prior HUD concurrence is required.
(m) State notification. Each State shall notify its State central
information reception agency of each subgrant that it awards within (7)
days of the award, using Standard Form 240 (Notification of Grant-in-Aid
Action), copies of which can be obtained from HUD. Three copies of the
notification shall be submitted to HUD along with a copy of the annual
work program summary and the organizational characteristics statement
for areawide planning organizations, urban counties, and large cities,
and a copy of the description of work or scope of services for
localities. The Standard Form 240 (line 3) should indicate the Federal
grantor (HUD) and the State grantor. Lines 13, 14 and 15 need not be
completed. The State shall also indicate in line 16 (Remarks) the
county within which the subgrantee is located and, for areawide planning
organizations, the counties of jurisdiction, and the population of the
jurisdiction or organization being assisted.
(40 FR 36856, Aug. 22, 1975, as amended at 44 FR 54439, Sept. 19,
1979)
24 CFR 600.135 State review and evaluation.
The State shall review the planning activities of recipients on a
continuing basis. The State review must include, but is not limited to,
the following:
(a) Applicant performance relative to the criteria of 600.10(d);
and
(b) Applicant progress in achieving the National Policy Objectives of
600.5.
(44 FR 54439, Sept. 19, 1979)
24 CFR 600.135 Subpart E -- Evaluation and Coordination Procedures
24 CFR 600.140 Purpose.
This subpart sets forth the procedures for evaluation of programs and
the coordination of assisted planning among agencies and governmental
levels which may enhance or be affected by such planning.
24 CFR 600.145 Evaluation and review.
(a) Annual HUD evaluation. HUD will annually evaluate each
applicant's performance. This evaluation will serve as a major factor
in making a determination pursuant to 600.10(d). The major factors to
be considered in the evaluation are as follows:
(1) Performance in Plan Development and Endorsement.
(i) Grantee's progress in developing and adopting or endorsing plans,
policies and programs and establishing priorities through the
development of investment strategies, development standards or criteria
and laws and ordinances in support of identified objectives;
(ii) Grantee's progress in up-dating plans, policies and programs,
particularly those designed to conserve existing housing and
communities, effectively guide major decisions as to where growth and
development should and should not take place, and increase housing
opportunities and choice.
(iii) The degree to which plans, policies and programs are
increasingly related to the National Policy Objectives.
(2) Performance in planning implementation and use of plans.
(i) Assessment of grantee's ability to initiate programs to achieve
program objectives.
(ii) Assessment of grantee's efforts to undertake cooperative
activities between private enterprise, citizens and governmental
entities.
(iii) Assessment of grantee's use of plans as a guide for
governmental decision-making.
(iv) Assessment of grantee's ability to achieve improvements in the
provision of facilities and the delivery of services.
(3) Program coordination performance.
(i) Assessment of grantee's progress in achieving effective
coordination on an inter and intra-governmental basis;
(ii) Assessment of State and areawide grantee's use of A-95 process
as a coordination mechanism; and
(iii) Assessment of grantee's progress in implementing housing and
community development programs on a coordinated basis.
(4) Program management performance and administration of subgrants.
(i) Assessment of grantee's compliance with all program requirements,
particularly equal opportunity, citizen involvement, environmental and
historic preservation, and handicapped requirements; and
(ii) Assessment of State's administration of substate and voluntary
agreement pass-through grants.
(b) Evaluation review. Each applicant will receive a written
assessment of the results of the HUD evaluation and be provided an
opportunity to comment on HUD findings. The applicant may discuss the
evaluation at the time it is completed and/or during the annual
negotiation conference.
(c) Evaluation process. The annual HUD evaluation will be based on
all reports, documents, applications and other material provided by an
applicant. In addition, the findings of HUD staff obtained as a result
of site visits will also be used. Applicants may provide any additional
data that they believe will be useful to HUD in making the annual
evaluation.
(d) Administration of substate assistance. The evaluation of State
performance will include an assessment of State administration of
substate assistance.
(44 FR 54439, Sept. 19, 1979)
24 CFR 600.145 Subpart F -- Special Allocations for Areawide Housing
Opportunity Plans
Source: 43 FR 34058, Aug. 2, 1978, unless otherwise noted.
24 CFR 600.180 Purpose.
The purpose of this subpart is to describe the policies and
procedures to be utilized in awarding special allocations of 701 funds
made to areawide planning organizations in support of Areawide Housing
Opportunity Plans (24 CFR part 791, subpart F).
(Sec. 7(d), Department of Housing and Urban Development Act (42
U.S.C. 3535(d)))
(43 FR 34058, Aug. 2, 1978, as amended at 49 FR 6714, Feb. 23, 1984)
24 CFR 600.190 Eligible applicants.
Eligible applicants are only those areawide planning organizations
(APO's) for a multi-county area or for a single county whose boundaries
are coterminous with a designated Standard Metropolitan Statistical Area
eligible for comprehensive planning assistance, and whose approved
AHOP's have been selected by HUD for special allocations under 24 CFR
part 791, subpart F.
24 CFR 600.200 Allocation of Special Comprehensive Planning Assistance
funds.
The amount of comprehensive planning assistance funds each APO is to
receive will be proportional to special allocation of section 8 contract
authority made to the AHOP area, except that the Department reserves the
right to limit such grants to a maximum of $150,000 and a minimum of
$25,000. Awards of special allocations of section 8 contract authority
are made pursuant to 24 CFR part 791, subpart F.
(Sec. 7(d), Department of Housing and Urban Development Act (42
U.S.C. 3535(d)))
(43 FR 34058, Aug. 2, 1978, as amended at 49 FR 6714, Feb. 23, 1984)
24 CFR 600.210 Eligible activities.
Grants will be made only for activities which clearly and directly
further the implementation of the AHOP, address the AHOP program
objective and are otherwise eligible under the comprehensive planning
assistance program. APO's must utilize such grants for one or both of
these activities:
(a) Develop outreach programs designed to facilitate movement of low
and moderate income and minority persons to housing outside areas of
concentration, particularly interjurisdictional moves when necessary to
achieve the AHOP program objective, such as:
(1) Developing a program for the provision of fair housing counseling
and legal aid services,
(2) Establishing or strengthening an areawide relocation service,
(3) Working with member jurisdictions on a program to provide
information to eligible low and moderate income persons on the
availability and locations of housing in areas or communities outside
areas of undue concentration,
(4) Working with member jurisdictions on the provisions of escort,
transportation, child care or other services which assist low income and
minority persons to shop for housing outside traditional or immediate
neighborhoods,
(5) Developing affirmative marketing agreements with builders,
apartment managers, real estate agents,
(6) Preparing training and educational programs for real estate
agents, housing managers, city officials and others to increase
knowledge of techniques for promoting economically and racially
integrated housing,
(7) Initiating revisions to existing laws or regulations or enactment
of new laws or regulations to promote increased interjurisdictional
mobility, such as improved fair housing laws, revisions in assisted
housing admission practices, including the elimination of residency
requirements or preferences for admission to Federally assisted housing,
state grants or aids to communities accepting low income nonresidents.
(b) Develop programs or activities designed to facilitate the
construction, rehabilitation, acquisition or renting of housing for low
and moderate income and minority persons outside areas of concentration,
such as:
(1) Facilitating the establishment of housing authorities or
development corporations, especially those capable of operation on an
areawide basis,
(2) Working to make Section 8 Certificates of Family Participation
usable in all APO member communities,
(3) Working with county and municipal governments and housing
development corporations to assist private developers to locate sites
for new construction and units to be rehabilitated,
(4) Working with county, municipal and State governments to increase
the areawide availability of State and local funds for housing
assistance, such as the establishment of rehabilitation and construction
loan funds and mortgage finance programs,
(5) Helping public and private developers to secure financing and
assurance of necessary facilities and services required to make the
assisted housing successful.
Special allocations of Comprehensive Planning Assistance funds may
not be used for activities, otherwise eligible under the statute, which
propose the revision of allocation formulas or plans, housing studies
and data collection and analysis.
24 CFR 600.220 Administrative activities.
Use of funds for administrative activities related to implementing
are limited to activities related to soliciting, assisting in the
preparation of, reviewing and ranking applications from eligible member
jurisdictions applying for the housing and Community Development Block
Grant special funds under the AHOP.
24 CFR 600.230 Application procedures.
Applications may be in the form of proposed amendments to the current
year 701 grant or a new application. HUD will inform the APO of the
amount of special allocations of Comprehensive Planning Assistance funds
to be made available at the same time the APO is notified it has
received HUD approval of a HOP under subpart F of 24 CFR part 791.
Funds will be awarded pursuant to 600.200 of this subpart. Work
activities will then be negotiated with the appropriate Field Office to
ensure the most effective use of funds to implement the AHOP program
objective of spatial deconcentration.
24 CFR 600.240 Application requirements.
An application will consist of the following items:
(a) Standard Form 424, Federal Assistance, prescribed by OMB Circular
A-102.
(b) A detailed work program describing the proposed activities,
including a discussion of the relationship of these activities to the
AHOP implementation activities (see 24 CFR 791.503(f)).
(c) A revised or new Annual Work Program Summary (Form HUD-7026.2).
(d) A revised or new Annual Grant Budget (Form HUD-7026.2).
(e) A copy of A-95 review comments.
(Sec. 7(d), Department of Housing and Urban Development Act (42
U.S.C. 3535(d)))
(43 FR 34058, Aug. 2, 1978, as amended at 49 FR 6714, Feb. 23, 1984)
24 CFR 600.250 Submission requirements.
(a) Date of Submission. HUD field offices will negotiate application
submission dates with each eligible applicant. These dates will be set
so that HUD has sufficient time to obligate the 701 special allocation
funds prior to the end of the Federal fiscal year.
(b) How to Submit. Two copies of the application for special
allocations of Comprehensive Planning Assistance shall be submitted to
the HUD Regional Administrator, Attention: Regional AHOP Coordinator
for the HUD regional office serving the APO's jurisdiction. If the APO
is served by more than one regional office, the request shall be
submitted to the office which services the APO's regular 701 grant.
(E.O. 12372, July 14, 1982 (47 FR 30959), amended April 8, 1983 (48
FR 15887); sec. 401, Intergovernmental Cooperation Act of 1968, as
amended (31 U.S.C. 6506); sec. 204 of the Demonstration Cities and
Metropolitan Development Act of 1966, as amended (42 U.S.C. 3334); sec.
7(d), Department of Housing and Urban Development Act (42 U.S.C.
3535(d)))
(43 FR 34058, Aug. 2, 1978, as amended at 48 FR 29218, June 24, 1983;
49 FR 10665, Mar. 22, 1984)
24 CFR 600.250 Subpart G -- Managing a Grant
Source: 44 FR 72037, Dec. 12, 1979, unless otherwise noted.
24 CFR 600.400 General information.
(a) Purpose. The purposes of this subpart are to set forth
requirements and procedures for managing a Comprehensive Planning
Assistance grant and reflect changes made in grant administration
pursuant to the revised Office of Management and Budget Circular No.
A-102 dated September 12, 1977, and Federal Management Circular 74-4.
Other subparts of these regulations explain the policies and procedures
an applicant must follow to obtain a grant. This subpart describes the
management aspects of grant administration from grant approval to
project completion, including such items as accounting, requisitions,
allowable costs, personnel, travel and subsistence, subcontracting and
reporting.
(b) Application. This subpart applies to all types of Comprehensive
Planning Assistance grantees (including subgrantees and subcontractors)
except those with publicly financed educational institutions subject to
Federal Management Circular A-21. All grants made before the effective
date of this subpart may be completed under the terms and conditions
thereof and in conformance to the policies and procedures in effect at
the time the grants were made.
24 CFR 600.405 Administrative policies of the grantee.
(a) Administrative practices -- (1) General policy. Each grantee
must establish or be subject to policies and regulations governing major
operating areas such as personnel, compensation, annual and sick leave,
travel, procurement and other adminstrative practices. Such policies
and regulations must be used in preparing budgets submitted for HUD
approval and are subject to the following limitations:
(i) That such policies and regulations are not inconsistent with HUD
regulations governing eligible costs (see 600.410(f));
(ii) That costs are within the limits of the approved budget;
(iii) That when the costs are less than the maximum permitted by
these requirements, the cost charged to the planning grant shall be
based on the lower amount; and
(iv) That the cost for each trip to a destination outside the
jurisdiction of the grantee, which is to be charged wholly or in part to
a planning grant, be specifically approved by a designated official of
the grantee as necessary to the conduct of the work authorized by the
grant documents. This does not pertain to routine trips to nearby
communities to carry out the normal functions of the grantee.
(2) Grantees subject to or adopting State or municipal policies.
When the grantee's administrative practices are governed by State or
municipal policies or regulations applicable to all units of State or
local government and all employees, such administrative practices will
be considered satisfactory to HUD to determine the eligibility of costs
subject to the limitations stated in paragraph (a)(1) of this section.
(3) Grantees electing to establish independent policies -- adoption
and approval. When a grantee adopts policies and regulations governing
administrative practices other than those of a State or municipality as
indicated above, the policies so adopted must be established in writing,
and approved by resolution of its governing body (board, commission,
council, etc.). The policies and a written explanation of how the
grantee has determined that such administrative practices are reasonable
must be retained in the grantee's office. Administrative practices will
be considered reasonable when they are comparable with pertinent local
public practice. If there are no pertinent local established practices,
grantees may wish to adopt Federal standards. Further information is
available from the HUD Office managing the grant.
(4) Travel expense of job candidates and moving expense of new
employees. The policy of the grantee may provide for payment of (i)
travel expense for employment interviews incurred by candidates for
permanent professional and supervisory positions, and (ii) moving
expenses incurred by new employees, including moving expenses for their
immediate families and household goods and personal effects, provided
the incurring of such expenses are authorized in each instance in
advance by official action of the grantee, and the authorization
includes a determination that the expense is reasonable and necessary in
the particular case. Reimbursement for travel expense must be on a
basis which does not exceed that provided for regular employees in the
grantee regulations.
(b) Procurement standards -- (1) General policy. The procurement of
supplies, equipment and services shall be consistent with the
requirements of OMB Circular No. A-102, Attachment O, Procurement
Standards. All procurements not specifically provided for in the grant
budget shall be referred to HUD for prior approval. Requirements for
equipment purchases are contained in 600.410(f)(2).
(2) Special limitation. Grantees are prohibited from using
Comprehensive Planning Assistance funds to pay the salary of a
consultant in excess of the daily equivalent rate paid for GS-18 Federal
employees. For this purpose, a consultant is an individual who is hired
for a temporary or interim period, under an employer-employee type
relationship, to provide advice or expertise that cannot be provided by
regular staff. The salary paid to such individuals is subject to the
GS-18 limitation. This limitation is not applicable to consultant
services provided under an independent Contractor relationship. Such
contracts will be governed by the Procurement Standards of Attachment O
of OMB Circular A-102.
(c) Political activities. Section 12(a) of the Hatch Act, 5 U.S.C.
73, 721-727, restricts the political activities of some non-Federal
employees if their principal employment is in connection with an
activity financed in whole or in part by a Federal grant. These
restrictions are enforced by the Office of Personnel Management. The
restrictions prohibit:
(1) Use of official authority or influence for the purpose of
interfering with an election or nomination for office, or effecting the
result thereof.
(2) Directly or indirectly coercing, attempting to coerce,
commanding, or advising any other officer or employee to pay, lend, or
contribute any part of his or her salary or compensation or anything
else of value to any party, committee, organization, agency, or person
for political purposes.
(3) Active participation in political management or in political
campaigns. A pamphlet entitled, ''Political Activity of Federal
Officers and Employees'', commonly referred to as GC-46, is available
from the Office of Personnel Management. The pamphlet contains more
detailed information concerning the applicability of the Hatch Act. Any
questions regarding the applicability of the Hatch Act in particular
situations should be referred to an agency's own counsel or to the
counsel of the HUD office administering the grant.
(d) Audit requirements -- (1) Audit authority. Sections 814-816 of
the United States Housing Act of 1954, as amended, provide that audits
may be conducted by, or on behalf of HUD, to ensure that grant funds are
being used only to defray eligible costs and that the grant funds are
being well managed. Accordingly, the terms and conditions of grant
awards between HUD and grantees provide that HUD and the Comptroller
General of the United States may make such audits of any grantee as they
deem appropriate.
(2) Audit policy. Grantee financial management systems shall:
(i) Provide for audits to be made by the grantee or at its direction
to determine, at a minimum, the fiscal integrity of financial
transactions and reports, and the compliance with laws, regulations, and
administrative requirements. The grantee will schedule such audits at
least once every two years.
(ii) Provide for a final audit within two years of the completion of
activities under non-continuous grants.
(iii) Provide for a systematic method to assure timely and
appropriate resolution of audit findings and recommendations.
(iv) Require subgrantees (recipients of grants which are passed
through by the grantee) to comply with the ''701'' audit policies.
(3) Audit guide and costs. (i) The ''Audit Guide for the
Comprehensive Planning Assistance Program'', HUD Handbook IG 6042.2,
contains audit standards for all 701 Comprehensive Planning Assistance
grants -- whether they are performed by auditors employed by State or
local governments, independent public accountants (IPAs), or other
qualified auditors. Audits made by the grantee or at its direction
which meet the above standards will be acceptable to HUD in lieu of an
audit made by HUD or at its direction.
(ii) Audit costs may be charged to the ''701'' program, but shall be
prorated on an equitable basis between HUD, and other benefiting Federal
grantors, State and local grantors and the grantee.
(4) Management use of audit reports. Audits of the books, records
and activities of program participants in the 701 program serve to
provide both HUD and the local program officials with objective,
independent and factual information with regard to the activities that
have been conducted under HUD contracts or grant agreements. The
management purpose of such audits is to inform HUD program officials and
local program officials that the financial interest of HUD and the
locality and contract compliance are assured by determining that:
(i) Costs incurred are eligible under the contract and HUD policies,
rules and regulations;
(ii) The program participant has complied with the terms and
conditions of the grant contract and HUD regulations;
(iii) Receipts are accounted for and disbursements are proper;
(iv) The program participant's accounting system conforms to HUD
requirements and affords an adequate degree of internal control.
(5) Failure on part of grantee to obtain audit. Failure to obtain an
audit may be grounds for disapproval of subsequent grants. If a grantee
fails to obtain an audit, as required, HUD shall obtain such audit and
the grantee shall promptly reimburse HUD for its costs. Any such amount
not immediately repaid will be collected by setoff against amounts
outstanding under any other HUD grant award to the grantee.
(6) Qualifications and independence of auditor -- (i) Qualifications.
The auditor or audit staff assigned to perform the audit must
collectively possess adequate professional proficiency for the work
required. If the grantee obtains the services of an independent public
accountant (IPA) to make the audit, the IPA should be certified,
licensed or registered by a regulatory authority of a State or other
political subdivision of the United States and meet any legal
requirements concerning registration by the State in which the grantee
is located.
(ii) Independence. In all matters relating to audit work, the
auditor and audit organization shall maintain an independent attitude.
If the auditor is not sufficiently independent to produce unbiased
opinions, conclusions, and judgments, the auditor should state in a
prominent place in the audit report his or her relationship with the
organization or officials being audited.
(iii) When an IPA is employed to perform the audit, the IPA will not
be considered independent with respect to any grantee with which such
IPA has, or has had during the period covered by audit, any relationship
deemed as creating a conflict of interest: Family relationship with
grantee officials, officer or employee (whether or not paid) of the
grantee, and financial interest, either direct or indirect, in any
grantee activity (other than in the performance of the audit function).
(iv) Auditors employed by State or local governments will be
considered independent if they are sufficiently removed from political
pressures to ensure objectivity in performing the audit and reporting
the conclusions thereon. To achieve maximum independence, such auditors
and the audit organization itself should report to the highest practical
echelon within the governmental organization, be organizationally
located outside the line-management function of the entity being
audited, and be placed under a merit system for determining
compensation, training, job tenure, and advancement.
(7) Audit period and costs. The audit period will generally cover a
period of two years commencing from the ending date of the period
covered by the last audit. Preferably, the end of the audit period
should coincide with the close of the audit entity's fiscal year. The
HUD share of the audit costs should be added to the grantee's overhead
item in the Annual Grant Budget and identified in the Program
Administration section of the Overall Program Design.
(8) Documentation supporting selection of auditor. The selection of
an auditor shall be based on provisions of OMB Circular A-102,
Attachment O (Procurement) or, if a governmental auditor is selected,
grantee files shall include the authority for such audit and the basis
for determining the fee.
(9) Suggested scope of audit and form of audit report. (i) The
grantee should furnish interested auditors with a copy of the HUD Audit
Guide and pertinent regulations. Part IV of the Grant Document, and any
pertinent local requirements or policies. The suggested minimum scope
of audit and suggested form of audit report are contained in the Audit
Guide. The audit report should contain an opinion on the fairness of
the financial statements and data on findings and other pertinent
financial information.
(ii) In some cases, the auditor may request the grantee to prepare a
Representation Letter at the close of the audit. This letter deals with
the status of particular accounts and any other facts which might affect
the overall accuracy of the financial statement.
(10) Submission of audit report and access to working papers -- (i)
Submission of report. The Audit Report is distributed as follows:
(A) Five copies to the applicable Regional Inspector General for
Audit (RIGA). The name, address and jurisdiction of RIGAs are included
as Appendix 2 of the Audit Guide.
(B) Sufficient copies to the grantee to satisfy its needs (as
specified in the contract).
To facilitate the review of the report by HUD and the determination
of its acceptability, the grantee should authorize the auditor, in the
contract, to make simultaneous distribution of the Audit Report to HUD
and the grantee.
(ii) Access to working papers. The grantee should also provide in
the contract that the working papers are to be made available during the
audit and for a period of three years thereafter to representatives of
the Comptroller General of the United States and of HUD on request by
the Inspector General or his or her representatives. The working papers
can be reproduced by HUD at its own expense, if such need arises. Such
a provision will enable the grantee and HUD to determine whether the
audit standards have been met.
(11) Review of audit report by HUD. The RIGA will review the Audit
Report to determine whether the scope of audit and the format of Audit
Report are, as a minimum, equal to the suggested guidelines in the Audit
Guide, and will immediately advise the grantee of any significant
deficiencies in the Audit Report which need correction. It is the
grantee's responsibility to assure that the audit report submitted to
HUD meets generally accepted auditing standards. The HUD office
managing the grant should be notified when audit reports are submitted
to RIGA.
24 CFR 600.410 Fiscal management.
(a) General. This section prescribes the principles which must be
followed by a grantee to account for the funds, costs and activities
authorized under a Comprehensive Planning Assistance Grant, to obtain
the funds due the grantee under the grant, and to prepare and transmit
to HUD necessary financial statements.
(b) Basic responsibilities -- (1) Primary responsibility. The
primary responsibility for the establishment and maintenance of adequate
procedures and internal financial controls governing the management and
utilization of Federal funds rests with the grantee.
(2) Advice and assistance. The grantee should look first within its
own organization, to public financial officers, or to independent public
accountants for advice and assistance in establishing the necessary
accounting and financial control systems based on the guidelines and
requirements in this section. If necessary, however, HUD will, upon
request, assist the grantee in establishing the necessary systems.
Standards for the development of an adequate system may be found in HUD
Handbook 1900.2, Financial Aspects of Administration of Grants-in-Aid,
Loans and Contracts with Program Participants.
(3) Using existing governmental capacity. It is suggested that new
grantees organize in such a way that, wherever possible, the existing
facilities of a city, county, or State can be utilized to perform the
necessary accounting and fiscal management functions.
(c) Financial management. Grantees shall have financial management
systems which comply with OMB Circular A-102, Attachment G, Standards
for Grantee Financial Management System.
(d) HUD evaluation. If HUD has had no prior experience with a
grantee or its designated fiscal agent, HUD will conduct an evaluation
of the grantee's financial management system prior to disbursing any
program funds or issuing a letter of credit under the terms of the grant
award to assure that the grantee's financial management system is in
compliance with paragraph (c) of this section.
(e) Property management standards. Grantees may use their own
property management standards and procedures as long as the provisions
of OMB Circular No. A-102, Attachment N, Property Management Standards,
are included. Requirements for equipment purchases are contained in
600.410(f)(2).
(f) Eligible costs -- (1) Basic criteria. To be eligible under the
Comprehensive Planning Assistance Program, costs must be:
(i) Necessary and reasonable for proper and efficient administration
of the Comprehensive Planning Assistance Grant, be allocable thereto
under these principles, and, except as specifically provided herein, not
be a general expense required to carry out the overall responsibilities
of the grantee.
(ii) Authorized or not prohibited under State or local laws or
regulations.
(iii) In conformity with any limitations or exclusions set forth in
these principles, the Approved Budget and grant agreement, these
regulations, Federal laws, or other governing limitations as to types or
amounts of cost items.
(iv) Consistent with policies, regulations, and procedures that apply
uniformly to both Federally assisted and other activities of the unit of
government of which the grantee is a part.
(v) Accorded consistent treatment through application of generally
accepted accounting principles appropriate to the circumstances.
(vi) Not allocable to or included as a cost of any other Federally
financed program in either the current or a prior period.
(vii) Net of all applicable credits and must make no provision for
profit or other increment above cost.
(2) Cost principles for allowable and unallowable costs. Federal
Management Circular 74-4, Cost Principles Applicable to Grants and
Contracts with State and Local Governments, shall be applicable except
that equipment and other capital acquisitions will not be allowed.
Grantees may be compensated for the use of buildings and equipment
through use allowance or depreciation.
(3) Project inspection fee. The necessary expenses of Federal
inspections, audits, and technical assistance with respect to a grant
must be compensated by grantees through the payment of fixed fees.
Provision for this fee will be made in each grant. The project
inspection fee may be collected by billing the grantee, by an offset
against the grant agreement, or by an offset against the first request
for grant disbursement. The project inspection fee will be based on the
Federal grant amount and will be determined from the Project Inspection
Fee Schedule included in Appendix 4. The fee is an eligible project
cost and grantees may be reimbursed for such costs in the same ratio as
for other eligible project costs. If the grant amount is subsequently
amended to increase the grant amount, the fee will be increased
accordingly. However, there will not be any downward adjustment of the
fee based on a reduced grant amount or on a lower final grant amount
calculated on the basis of final costs.
(4) Indirect cost circulars. (i) For grantees which are departments
or other units of a State, the provisions of HUD Circular 1900.9 dated
August 29, 1969, shall apply. Where the grantee determines it is
preferable, such as when other agencies are utilizing HHS procedures,
the provisions of HHS document OASC-10, ''A Guide for State and Local
Government Agencies,'' are an acceptable substitute for HUD Circular
1900.9. Indirect proposals of grantees for which HUD is cognizant shall
be forwarded to the appropriate Area Office for approval.
(ii) Grantees other than those which are subdivisions of State
government shall recover indirect costs in accordance with the
provisions of HUD Circular 1900.13 ''Principles and Standards for Cost
Applicable to Grants and Contracts with Local Governments.'' Where the
grantee determines it is preferable, the provisions of HHS document
OASC-10, ''A Guide for State and Local Government Agencies,'' are an
acceptable substitute for HUD Circular 1900.13.
(g) Matching share -- (1) Non-Federal matching share. Expenditures
or contributions used as the non-Federal share shall represent an amount
equal to or greater than one-third ( 1/3) of total project costs. The
grantee shall not expend Federal funds in relation to non-Federal funds
at a ratio greater than the Federal share of the grant bears to the
non-Federal share of the grant.
(2) The provisions of OMB Circular No. A-102, Attachment F, Matching
Share, shall be used to determine the allowability of cash and in-kind
contributions made by grantees, subgrantees or third parties.
(h) Program income. Grantees shall account for program income
related to Comprehensive Planning Assistance projects in the manner
prescribed by OMB Circular No. A-102, Attachment E, Program Income.
(i) Financial reporting. Grantees shall make financial reports on
Comprehensive Planning Assistance grants in the manner prescribed by OMB
Circular No. A-102, Attachment H, Financial Reporting Requirements,
except as modified by these regulations.
(1) Basis for reporting. All reports shall be submitted on the
accrual basis. If the accounting records are not normally kept on the
accrual basis, the grantee shall develop such information through an
analysis of the documentation on hand.
(2) Financial status report. Each grantee shall use the Financial
Status Report (HUD-237) to report the status of funds for all
outstanding grants.
(3) Frequency of reporting. The Financial Status Report shall be
submitted in an original and two copies within 90 days after the
completion of the project. If the HUD Area Office determines that a
grantee's financial management activities are inadequate more frequent
reports may be requested.
(4) Report of Federal cash transactions. This report will not be
used by 701 grantees. The request for payment or requisition for
payment will be used to monitor grantee cash balances and to obtain
disbursement information.
(j) Project and budget revisions. Grantees shall report deviations
from grant budgets and request approvals for budget revisions in the
manner prescribed by Attachment K of OMB Circular No. A-102, Budget
Revision Procedures, except as modified by these regulations.
(1) The transfer of amounts budgeted for indirect costs to absorb
increases in direct cost shall require prior HUD approval.
(2) The transfer of amounts budgeted for use by a specific applicant
category (State, local assistance, metropolitan, nonmetropolitan, large
city, urban county, Indian and other) to increase the amount budgeted
for a different applicant category shall require prior HUD approval.
(3) The transfer of funds among direct cost categories, or among
programs, functions and activities for awards in which the Federal share
exceeds $100,000 when the cumulative amount of such transfers exceeds or
is expected to exceed five percent of the total budget shall require
prior HUD approval. No transfer may be made that would cause any grant
funds, or part thereof, to be used for purposes other than those
intended.
(4) Grantees must maintain a record of all budget revisions that do
not require prior HUD approval.
(k) Grant payments. Payments to grantees will be made in the manner
prescribed by OMB Circular No. A-102, Attachment J, Grant Payment
Requirements, except as modified by these regulations.
(1) Cash depositories. There are no eligibility requirements for
State and local governments except as provided for by OMB Circular No.
A-102, Attachment A. Grant payment checks will be mailed by the U.S.
Treasury Department directly to the bank designated by the recipient for
credit to the recipient's bank account and shall not be mailed directly
to the recipient's office. In the case of State governments however,
checks may also be mailed directly to:
(i) The State Treasury, or (ii) the State Treasurer or Comptroller.
In the case of disbursements based on requisitions for funds sent to
HUD, as distinguished from requests for funds sent directly to the U.S.
Treasury Department, the appropriate HUD accounting office shall advise
the recipient at the time the schedule for payment is submitted to the
U.S. Treasury Department of the amount of Federal funds that the U.S.
Treasury will transmit by check.
(2) Use of minority banks. Consistent with the national goal of
expanding the opportunities for minority business enterprises, grantees
are encouraged to use minority banks.
(3) Bonding and insurance. Grantees shall satisfy the requirements
of State and local laws, as applicable, relative to bonding and
insurance.
(4) Requisition form. Form HUD-259, Requisition for Grant Payment,
shall be submitted to the HUD office managing the grant to requisition a
grant payment or advance by Treasury Check. Detailed instructions are
contained in HUD Handbook 1900.17, Requisition for Grant Payment
Procedures.
(5) Requisition submission. Requisitions for advances by Treasury
Check or reimbursement shall be submitted in accordance with the
following:
(i) Initial requisition. The initial requisition may be submitted to
HUD after receipt by the grantee of the executed Grant Documents.
(ii) Establishing fiscal management. The requirements for
establishing adequate fiscal management procedures as set forth in
600.410(c) must be met before HUD will process the initial requisition.
(iii) Interim requisitions. Interim requisitions, when on a
reimbursable basis, may be submitted either on a monthly, quarterly or
semi-annual basis. The grantee can expect to receive a check within ten
days to two weeks after the requisition has been received by HUD.
(iv) Overpayments. Overpayments, if not immediately repaid, will be
collected by setoff against amounts due under any other Comprehensive
Planning Assistance grant award to the grantee.
(v) Final requisition. Payment of final requisition will be adjusted
for amounts of overpayment by HUD, if any, and will not preclude the
government from collecting any excess payment made to the grantee due to
ineligible costs which are discovered during the final settlement or
periodic audit of the grantee's books and records.
(6) Letter of Credit procedures. The letter of credit will be
administered in accordance with HUD Handbook 1900.24, Rev. (Treasury
Regional Disbursing Office).
(7) Advances by Treasury Check. Advances by Treasury Check shall be
requested in amounts to meet immediate disbursement needs.
(l) Grant closeout. Grant closeouts will be carried out in the
manner prescribed by OMB Circular No. A-102, Attachment L, Grant
Closeout Procedures, except as modified by these regulations and the
provisions of the Notice of Grant Award (contract).
(1) Final payment. Upon request, HUD will make prompt payment to a
grantee for allowable reimbursable costs under the grant being closed
out.
(2) Settlement documentation. Within 90 days after the date of
completion the grantee shall submit the following:
(i) Financial Status Report;
(ii) Annual Program Report;
(iii) One copy of all reports, maps, plans and other documents
identified in the Annual Program Report.
(iv) An accounting for any property acquired with grant funds, or
received from HUD in accordance with the provisions of 600.410(e).
(3) Determination of completion and compliance. HUD shall review the
settlement documentation to determine whether it constitutes adequate
and acceptable evidence that the required project work has been
completed in an acceptable manner, all conditions and regulations have
been met by the grantee or properly waived by the Department, and there
are no unresolved qualifications or objections to final settlement of
the grant agreement.
(4) Financial settlement. HUD, following the above reviews, shall
make any upward or downward adjustments to the Federal share of costs,
subject to the availability of funds, and make a settlement with the
grantee accordingly. Any such settlement shall be subject to final
audit as noted in paragraph (l)(5) of this section.
(5) Final audit. In the event a final audit has not been performed
prior to the closeout of the grant, HUD shall retain the right to
recover an appropriate amount after fully considering the
recommendations on disallowed costs resulting from the final audit.
(6) Termination or suspension. HUD may at any time terminate or
suspend the grant in accordance with the, ''Terms and Conditions
Governing Grants for Comprehensive Planning Assistance'' (Part IV of the
Grant Document) which provides for such actions and the causes and
procedures to be followed.
(m) Revision in grant period. The HUD Area Manager is authorized to
approve requests for revisions in project periods. For any given grant
only one time extension, not to exceed 120 days, shall be allowed.
(1) Grantee justification. Grantees must notify the HUD office
administering the grant not less than sixty days prior to the end of the
grant period. The notification must include the following information:
(i) The problems causing the slippage in the work schedule, and steps
taken or contemplated to resolve the problems;
(ii) A status report which provides the following information for
each uncompleted work element:
(A) The work remaining,
(B) The cost and staff requirements to complete the work element.
(iii) An assessment of the impact of the time extension and resultant
workload on the grantee's ability to carry out activities in a timely
manner under any other outstanding 701 grant awards.
(2) HUD approval of extension requests. Extension requests shall
only be approved if:
(i) It is not feasible to reprogram activities into subsequent work
programs;
(ii) The grantee can complete all activities within the extended
project period;
(iii) The grantee's ability to complete activities in any other
outstanding 701 work program is not adversely affected; and
(iv) Subsequent grant awards are reduced commensurate with the
grantee's ability to use funds.
(A) If the revision of the projected period is approved, the new
completion date will be placed on the approved budget, Form HUD 7026.3.
A letter to the applicant approving the time extension and transmitting
the new budget form will be prepared and signed by the Area Manager.
(B) If the time extension is not approved, the grantee will be so
notified by letter from the Area Manager. In such an event, the grantee
will also be advised that all outstanding work must be completed by the
end of the project period or, as appropriate, reprogrammed into
subsequent work programs.
(n) Project records. Project records shall be maintained in the
manner prescribed by OMB Circular No. A-102, Attachment C, Retention
and Custodial Requirements for Records.
(Sec. 7(d), Department of Housing and Urban Development Act (42
U.S.C. 3535(d))
(44 FR 72037, Dec. 12, 1979, as amended at 50 FR 9269, Mar. 7, 1985)
24 CFR 600.420 Program performance reporting.
The reporting of program performance shall comply with OMB Circular
No. A-102, Attachment I, Monitoring and Reporting of Program
Performance, paragraphs 1, 2, 5 and 6. A completion report shall also
be prepared by each grantee and submitted to the HUD office
administering the grant. The completion report shall include the
following:
(a) Evaluation of Objectives (Part I). (1) This shall be a brief
evaluation statement for each objective included in the overall program
design, describing the extent to which activities proposed in the annual
work plan were completed and their impact on the achievement of the
objective.
(2) This part shall also include separately or by objective, as
appropriate, grantee progress in:
(i) Fostering equal opportunity in employment, housing and
participation in the benefits of Federally assisted programs, and
(ii) Involving and interacting with citizens, providing citizens
access to the decision making process and improvement in communication
techniques.
(b) Statement of Outstanding Achievements (Part II). This part
consists of one page narrative statements of the one or two outstanding
achievements resulting from the grantee's use of ''701'' which has
occurred since the last report. Such statements should include the
following, as appropriate:
(1) A brief description of the specific achievements,
(2) Specific impacts, i.e., management improvements, improved
operations, effectiveness, services, capability, etc.,
(3) Estimated dollar savings per activity, project, etc.,
(State or other agencies servicing local assistance and/or
non-metropolitan recipients shall also include statements of the one or
two outstanding achievements of such recipient groups in their
submission).
(c) Listing of Program Documents (Part III). This part shall list
all reports, maps, plans and other documents resulting from the 701
assisted portion of the program. This list shall identify the documents
being transmitted and those previously transmitted.
(d) Nonmetropolitan Areawide Planning (Part IV). (1) List in the
following format nonmetropolitan areawide planning organizations
receiving assistance:
(2) List by recipient, all reports, maps, plans and other documents
resulting from assisted objectives and identify those being transmitted
and previously transmitted.
(e) Local Planning and Management Services (Part V). (1) Identify
701 share of costs of advisory, informational and technical services
provided by the grantee, other public agencies or consultants without
cost to local, nonmetrolpolitan and/or metropolitan recipients.
(2) Identify the amount of subgrants (the use of 701 funds by or on
behalf of a recipient who provides all or a portion of the non-Federal
match or to support a recipient's staff regardless of who provides the
non-Federal match) provided to recipients using the following format:
(3) List all reports, maps, plans and other documents resulting from
assisted services, by recipient, (including general information
documents available to all municipalities) and identify those being
transmitted and previously transmitted.
(f) A copy of the Cartographic Products Description Report form
received from the U.S. Geological Survey pursuant to 24 CFR 600.81, as
appropriate.
(g) Submission requirements. The Program Completion Report and
project documents shall be transmitted to the HUD Office managing the
grant within 90 days after the completion of the grant. The report
should be submitted in accord with the following:
(1) Letter of transmittal;
(2) Program Completion Report (original + 2);
(3) Reports, maps, plans, and other documents listed in the Annual
Program Report (1 copy).
(i) That all maps and plans transmitted be folded to the size of the
reports. On the outside top fold of each such map and plan indicate its
title, the municipality or area covered, and the report or study to
which it relates.
(ii) Unless instructed otherwise by HUD the grantee should not submit
reports, plans, maps and other documents in advance of submission of the
Program Completion Report.
24 CFR 600.425 Submission of 701-assisted reports.
(a) Depository library system. The depository library system is a
process of distribution, deposit, and indexing of all 701-assisted
reports for the purposes of reference and purchase by all interested
parties. It was set up to insure a wide dissemination of information
and to encourage maximum use of Federally-supported reports. Components
of the depository system include documents and abstracts, both of which
are on deposit for reference only. Personal copies must be obtained
from the grantees or the National Technical Information Service. See
paragraph (e) of this section for more information on abstracts.
(b) Submission requirements. Reports published under the ''701''
program (except the Annual Program Report), and any interim material
which in the opinion of the grantee is of scholarly or public interest,
must be deposited as follows:
(1) For all grantees. (i) One copy of each document and each
abstract to the HUD Washington Library:
Librarian, Department of Housing and Urban Development, 451 7th
Street, SW., Washington, D.C. 20410.
(ii) One copy of each document and each abstract to the HUD Field
Office managing the grant.
(iii) One copy of each document and each abstract to the library of
the HUD Regional Office having jurisdiction.
(iv) Two copies of each document and each abstract to the Library of
Congress:
Unit X Documents, Expediting Project, Library of Congress,
Washington, D.C. 20540.
(v) One copy of each document to each of the nine Planning Depository
Libraries listed in Appendix 1.
(vi) One copy of each document to the participating State depository
library for the State(s) in which the grantee is located, except when
such State(s) are already served by a Planning Depository Library. The
State depository libraries are listed in Appendix 2.
(2) For cities and other municipalities (50,000 or less in
population) and counties. Requirements paragraphs (b)(1)(iv) through
(vi) of this section apply only to the final comprehensive or summary
planning report. To satisfy requirements paragraphs (b)(1)(i) and (iii)
of this section such grantees need submit only an abstract of the
comprehensive or summary report.
(3) For State, city (50,000 or more in population) urban county and
areawide grantees only. These grantees must send one copy of each
document to each participating planning school library within the HUD
Region in which they are located, except where doing so would duplicate
a submission made according to paragraph (b)(1)(v) or (b)(1)(vi) of this
section. These libraries are noted in Appendix 3.
(c) Notation of 701 support. A notation indicating the participation
of the Federal government must be carried on all reports and maps
produced as part of a HUD-assisted project, and on the annual program
report. Other periodic administrative reports and those documents
exclusively for internal use within the grantee are excluded from this
requirement. The suggested wording of that notation is as follows:
The preparation of this report was financed in part through a
Comprehensive Planning Assistance grant from the Department of Housing
and Urban Development. (Include project number).
(d) Submission to National Technical Information Service -- (1) The
grantee. Grantees are no longer required to submit copies of reports to
the National Technical Information Service (NTIS). However, grantees
are encouraged to file copies of reports considered to be of more than
local or regional interest with NTIS. Submission requirements are noted
below. Alternatively, the grantee should maintain sufficient copies to
meet estimated demand.
(2) Department of Commerce National Technical Information Service --
(i) Purpose. The Department of Commerce National Technical Information
Service makes technical reports generated by all Federal agencies
accessible in a uniformly indexed system. The NTIS has agreed to
announce and disseminate all HUD-assisted publications provided that it
can reproduce the report.
(ii) NTIS submission requirements. If a grantee wishes to file
reports with the NTIS, 10 copies of each document must be sent to the
NTIS. The NTIS does not charge for this service. Reports must also
meet NTIS reproduction specifications (see paragraph (d)(2)(iii) of this
section. A NTIS Accession Notice must accompany each report submitted to
the NTIS. The notice (Form NTIS-79) may be obtained directly from:
Input Section. National Technical Information Service, 5285 Port
Royal Road, Springfield, Virginia 22151.
(iii) Reproduction specifications. Generally reports to be submitted
to NTIS should not exceed 8 1/2 11 inches; however, NTIS can
reproduce larger reports if they can be sectionalized in the
reproduction process. NTIS cannot copy foldout maps and is unable to
reproduce color, but when possible, will reproduce color plates in black
and white. When reports do not meet the above specifications, copies
should not be submitted to NTIS and NTIS should not be mentioned as a
source of copies in the reports abstract. (See paragraph (e) of this
section.)
(iv) Availability. In general, publications will be announced in the
semi-monthly ''Government Reports Announcements and the Government
Reports Index''. Copies of publications in the NTIS are available to
the general public for purchase in paper copy and microfiche.
Literature searches are made in the NTIS search system.
(e) Abstracts. Any interim material which, in the opinion of the
grantee is of scholarly or public interest, and every report published
with HUD assistance must contain an abstract (Form NTIS 35) of the
publication on the first page after the cover.
(1) Content. The abstract must first indicate innovative work and
then briefly summarize the publication. New approaches, new methods,
and unusual or particularly successful solutions of management or
development problems must be emphasized in the abstract.
(2) Form. The abstract must be 200 words or less, exact and
unambiguous using the present tense and active voice, and be
comprehensible to the average citizen. Repetition of titles, project
identification numbers, etc., should be avoided. If the abstract refers
to previous reports or if the report is one of series, insert the exact
citation if possible. (NTIS accession number.)
(3) Format. The abstract must be prepared on the National Technical
Information Service Bibliographic Data Sheet (BDS) (Form NTIS-35).
Instructions for completing this form are printed on the reverse side of
the form. Items 17a and 17c are optional and may be left blank. For
item 17b, provide descriptors, index terms or key words which represent
the major concepts or applications. The linked set of descriptors
serves as a condensed abstract and in many cases reveals more of the
nature of the report than the abstract. If the report is not submitted
to the NTIS or if the NTIS is unable to reproduce a report for public
distribution, it must not be listed in Item 18 as a source of copies.
(See paragraph (d)(2)(iii) of this section for NTIS reproduction
specifications.) A supply of the BDS (Form NTIS-35) may be obtained
directly from the NTIS . (See paragraph (d)(2)(ii) of this section for
the mailing address.) Reproduction of the form is authorized.
24 CFR 600.425 Subpt. G, App. 1
24 CFR 600.425 Appendix 1 to Subpart G -- Planning Depository Libraries
Harvard University, Frances Loeb Library, Gund Hall, Cambridge,
Massachusetts 02138.
Documents Collection, Perry-Castaneda Library, University of Texas
Library, PCL 2.403, Austin, Texas 78712.
Library, Urban and Regional Studies Collection, Washington
University, Box 1061, St. Louis, Missouri 63130.
Librarian, Urban Documents Library, Library West, University of
Florida, Gainesville, Florida 32611.
Urban Policy and Planning Library, Michigan State University Library,
East Lansing, Michigan 48824.
Documents Librarian, Auraria Libraries, Laurence at 11th Street,
Denver, Colorado 80204.
Architecture and Urban Planning Library, 1302 Architecture,
University of California, Los Angeles, California 90024.
Architecture and Planning Library, JO-30, University of Washington,
Seattle, Washington 98105.
Documents Department, University of Illinois at Chicago Circle, Box
8198, Chicago, Illinois 60680.
24 CFR 600.425 Appendix 2 to Subpart G -- State Depository Libraries
24 CFR 600.425 App. 2
1. Alabama -- Library, Sanford University, Birmingham, Alabama 35309.
2. Arizona -- Government Documents Department, Main Library,
University of Arizona, Tucson 85271.
3. Arkansas -- Library, University of Arkansas, Fayetteville 72701.
4. California -- Already served by the Architecture Urban and
Planning Depository Library at Los Angeles.
5. Colorado -- Already served by the Planning Depository Library at
Denver, Colorado.
6. Connecticut -- Public Documents Room, Library, Yale University,
New Haven 06520.
7. Delaware -- Documents and Maps Librarian, University of Delaware,
Newark 19711.
8. D.C. -- Already served by the HUD Depository Library.
9. Florida -- Already served by University of Florida -- Gainesville.
10. Georgia -- Prince Gilbert Memorial Library, Georgia Institute of
Technology, Atlanta, Georgia 30332.
11. Idaho -- Library, University of Idaho, Moscow, Idaho 83843.
12. Illinois -- Already served by the University of Illinois Library,
Chicago.
13. Indiana -- Library, Indiana University and Purdue University at
Indianapolis 46202.
14. Iowa -- Governments Documents Department, Library, University of
Iowa, Iowa City 52240.
15. Kansas -- Library, Kansas State University, Manhattan, Kansas
66506.
16. Kentucky -- Government Publications Dept., Library, University of
Kentucky, Lexington 40506.
17. Louisiana -- Serials Section, Attention Mrs. Whittemore,
Library, Tulane University of Louisiana, New Orleans, Louisiana 70118.
18. Maine -- University of Maine, Orono, Maine 04473.
19. Maryland -- Johns Hopkins, Baltimore 21218.
20. Massachusetts -- Already served by Harvard University, Cambridge.
21. Michigan -- Already served by Michigan State University, East
Lansing 48823.
22. Minnesota -- Government Publications Division -- OD, 409 Wilson
Library, University of Minnesota at Minneapolis 55455.
23. Mississippi -- University of Mississippi, University, Mississippi
38677.
24. Missouri -- Already served by Washington University, St. Louis.
25. Montana -- Documents Librarian, University of Montana, Bozeman,
Montana 59717.
26. Nebraska -- Acquisitions Division, Library, University of
Nebraska, Lincoln, Nebraska 68588.
27. Nevada -- Government Publications Dept., Library, University of
Nevada, Reno 89557.
28. New Hampshire -- Documents Dept., Library, University of New
Hampshire, Durham 03824.
29. New Jersey -- Government Publications, Alexander Library, Rutgers
University, New Brunswick 08903.
30. New Mexico -- Documents Dept., Zimmerman Library, University of
New Mexico, Albuquerque 87131.
31. New York -- Avery Architectural Library, Columbia University, New
York, New York 10027.
32. North Carolina -- BA/SS Division -- Documents, Wilson Library
024A, University of North Carolina, Chapel Hill 27515.
33. North Dakota -- Documents Department, Library, North Dakota State
University, Fargo, North Dakota 58102.
34. Ohio -- Documents Division, Library, Ohio State University,
Columbus 43210.
35. Oklahoma -- Government Documents Collection, Library, University
of Oklahoma, 401 West Brooks, Norman, Oklahoma 73019.
36. Oregon -- Bureau of Governmental Research and Science, University
of Oregon, Box 3177, Eugene, Oregon 97403.
37. Pennsylvania -- Acquisitions Department, Library, University of
Pennsylvania, 3420 Walnut Street Philadelphia, Pennsylvania, 19106.
38. Puerto Rico -- Documents Section, UPR Station, Library,
University of Puerto Rico, Rio Piedras, Puerto Rico 00931.
39. Rhode Island -- Community Planning and Area Development,
University of Rhode Island, Kingston, Rhode Island 02881.
40. South Dakota -- University of South Dakota, Vermillion, South
Dakota 57069.
41 Tennessee -- Documents Dept., Library, University of Tennessee,
Knoxville 37916.
42. Texas -- Already served by University of Texas, Austin 78712.
43. Utah -- Library, University of Utah, Salt Lake City 84112.
44. Vermont -- Library, University of Vermont, Burlington 05401.
45. Virginia -- Fiske Kimball Fine Arts Library, Bayly Drive,
University of Virginia, Charlottesville 22903.
46. Washington -- Already served by University of Washington,
Seattle.
47. West Virginia -- Library, West Virginia University, Morgantown
26506.
48. Wisconsin -- Documents Dept., Memorial Library, University of
Wisconsin, Madison 53706.
49. Wyoming -- COE Library-Documents Division, Box 3334, University
Station, University of Wyoming, Laramie 82070.
24 CFR 600.425 Appendix 3 to Subpart G -- Planning School Libraries
24 CFR 600.425 Subpt. G, App. 3
Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and
Vermont
1. M.I.T. Libraries, Documents Section, Room 14E-210, HUD,
Massachusetts Institute of Technology, Cambridge, Mass. 02139.
2. Library, Community Planning and Area Development University of
Rhode Island, Kingston, Rhode Island 02881.
3. Library, Public Documents Room, Yale University, New Haven,
Connecticut 06520.
New Jersey, New York, Puerto Rico and the Virgin Islands
1. Documents Section, Serials Department, Library, Cornell
University, Ithaca, New York 14853.
2. Library, Hunter College, New York, N.Y. 10021.
3. Bobst Library, Documents Center-7th Floor, 70 Washington Square
South, New York University, New York, N.Y. 10003.
4. Library, Pratt Institute, Brooklyn, N.Y. 11205.
5. Social Sciences Library, Bird Library, Waverly Avenue, Syracuse
University, Syracuse, N.Y. 13210.
6. Library, Serials Dept., Princeton University, Princeton, N.J.
08540.
7. Alexander Library, Government Publication, Rutgers University, New
Brunswick, New Jersey 08901.
8. Documents Section, UPR Station, Library, University of Puerto
Rico, Rio Piedras, Puerto Rico 00931.
Delaware, District of Columbia, Maryland, Pennsylvania, Virginia and
West Virginia
1. Engineering and Architecture Library, Catholic University of
America, Washington, D.C. 20064.
2. Documents Section C-207, Pattee Library, Pennsylvania State
University, University Park, Pennsylvania 16801.
3. Library, Acquisition Division, Graduate School of Public and
International Affairs, Forbes Quadrangle, 1st Floor West, University of
Pittsburgh, Pennsylvania 15260.
4. Acquisition Division, University Libraries, Virginia Polytechnic
Institute and State University, Blackburg, Virginia 24061.
5. Fiske Kimball Fine Arts Library, Bayley Drive, University of
Virginia, Charlottesville, Va. 22903.
Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina,
South Carolina and Tennessee
1. Documents Division, Florida State University Library, Tallahassee,
Florida 32306.
2. Tampa Bay Regional Planning Council Research and Information
Library, 3151 Third Avenue North, Suite 540, St. Petersburg, Florida
33713.
3. Library, University of Mississippi, University, Mississippi 38677.
4. BA/SS Division-Documents, Wilson Library 024A, Planning Library,
Department of City and Regional Planning, Room 211, New East Hall,
University of North Carolina, Chapel Hill, North Carolina 27515.
5. Documents Librarian, the University of Tennessee Library,
Knoxville, Tennessee 37916.
6. Memphis State University, Memphis, Tennessee 38111.
7. Government Publications Dept., Library, Serials Section, Attn:
Mrs. Whittemore, University of Kentucky, Lexington, Kentucky 40506.
Illinois, Indiana, Minnesota, Michigan, Ohio and Wisconsin
1. Acquisition Librarian, Library, Ball State University, Muncie,
Indiana 47306.
2. Bohn Housing and Planning Library, Case Western Reserve
University, Cleveland, Ohio 44106.
3. Documents Processing, University of Chicago Library, 1100 E 57th
Street, Chicago, Illinois 60637.
4. Central Library -- Documents, University of Cincinnati,
Cincinnati, Ohio 45221.
5. The John Crerar Library, Illinois Institute of Technology,
Chicago, Illinois 60616.
6. Documents Division, University of Illinois, Library, Urbana,
Illinois 61801.
7. Documents Department, Library, Miami University, Oxford, Ohio
45056.
8. Architecture Library, University of Michigan, Ann Arbor, Michigan
48109.
9. Northwestern University Library, Documents Department, Evanston,
Illinois 60201.
10. The Ohio State University Libraries, 1858 Neil Avenue, Columbus,
Ohio 43210, Attention: Documents.
11. Head, Purdy Library, Wayne State University, Detroit, Michigan
48202.
12. State and Urban Documents Collection, Government Publications
Section, Memorial Library, Mankato State College, Mankato, Minn. 56001.
13. Library, Documents Dept. Memorial Library, University of
Wisconsin, Madison, Wisconsin 53706.
Arkansas, Louisiana, New Mexico, Oklahoma and Texas
1. Acquisitions Division, University Library, Texas A&M University,
College Station, Texas 77843.
2. Documents Division, University of Houston Libraries, Houston,
Texas 77004.
3. Documents Division, University of Oklahoma Library, 401 West
Brooks Street, Norman, Oklahoma 73069.
Iowa, Kansas, Missouri, and Nebraska
1. Library, Government Documents Section, Iowa State University,
Ames, Iowa 50011.
2. Government Documents Department, Library, University of Iowa, Iowa
City, Iowa 52242.
Colorado, Montana, North Dakota, South Dakota, Utah and Wyoming
1. Documents Librarian, Montana State University Library, Bozeman,
Montana 59715.
Arizona, California, Guam, Hawaii and Nevada
1. Government Documents Department, Main Library, University of
Arizona, Tucson, Arizona 85721.
2. Von Kleinsmid Library, University of Southern California, Los
Angeles, California 90007.
3. Arizona State University, Tempe, Arizona 85281.
Alaska, Idaho, Oregon and Washington
1. University of Oregon Library, Documents Section, Box 3177, Eugene,
Oregon 97403.
2. Washington State Library, Olympia, Washington, 98501.
24 CFR 600.425 Appendix 4 to Subpart G -- Project Inspection Fee Schedule
24 CFR 600.425 App. 4
24 CFR 600.425 Appendix I to Part 600 -- Comprehensive Planning Assistance, Department of Housing and Urban Development
24 CFR 600.425 Pt. 600, App. I
This list contains examples of the types of comprehensive planning
and management activities that States, areawide planning organizations
and localities may undertake, beginning in FY 1979, which would be
clearly supportive of National Policy Objectives. The listing is meant
to be illustrative only and should not be construed as being mandatory,
exclusionary or finite.
A. To conserve and revitalize communities:
Reform State income, sales, business and property tax systems and
laws, including tax revenue sharing formulas, to provide more cost
efficient public services and facilities; assure that distressed
population groups are equitably treated; and the needs of distressed
communities and populations are adequately addressed.
Identify disparities among communities in State services, facilities
and assistance, and reprogram State aid to alleviate such disparities.
Conduct ''fair share'' analyses of State aid and State administered
Federal aid to communities.
Develop program(s) for targeting the development, rehabilitation or
modernization of State facilities to distressed communities.
Seek State legislative endorsement for priorities and programs
designed to carry out community conservation, energy conservation, and
revitalization objectives.
Increase State role to finance and deliver aid to communities for
such local functions as education, public transit and economic
development.
Enhance communities borrowing capacity.
Establish a State Development Cabinet, or equivalent mechanism, to
enable Governors to coordinate State and local strategy actions.
Create a program of tax incentives for homeowners and corporations to
encourage weatherization and energy retrofit conservation measures at
the local level.
Establish an urban impact review capacity.
To expand housing choice:
Develop State and regional policies to guide major public and private
decisions on priority areas where growth should occur, with due
consideration of the need to conserve energy, where conventional housing
should be located and HUD and FmHA should provide insured housing.
Develop a three year State housing allocation plan and coordinate the
provision of State assisted housing with HUD and FmHA assisted housing.
Establish or increase State funding for State programs of housing
loans, grants and guarantee programs.
Establish a system for constructing State facilities or allocating
State expenditures which gives priority based on a community's provision
of low and moderate income housing.
Provide new authority for State, regional, or local housing
authorities to develop a wide variety of housing and rehabilitation
programs and assistance.
Develop model housing and rehabilitation standards and/or process to
assist in a revitalization program.
Establish a State Housing Finance Agency.
Reform tax policies to encourage rehabilitation and ensure equity in
property taxes for the elderly and low income homeowners.
Reform tax policies to ensure equity in property taxes for renters
and reform landlord-tenant, consumer protection and fair housing laws,
including the strengthening of administration and enforcement actions.
Reform model and existing building codes by eliminating unjustified
cost-increasing requirements, and encouraging the use of new technology
in construction materials and methods for conventional and factory built
housing.
Establish laws and regulations for financial institution that prevent
red-lining.
Reform State laws relating to lending and land title practices which
tend to increase housing costs.
Establish uniform State building and housing maintenance codes and
adopt standards for energy conservation in construction and
rehabilitation projects.
Reform local zoning, subdivision, and other land-use ordinances to
facilitate the construction of assisted and unassisted, modest cost,
multi-family and single family housing, including approaches such as
metropolitan or State zoning appeals boards, State established maximums
for house and lot size, garage, density, site development requirements,
and fees and charges.
Develop and carry out a comprehensive fair housing strategy (New
Horizons Fair Housing Assistance Project).
Establish State standards for accessibility to the handicapped and
adopt or revise building and housing codes as necessary.
Develop model single family and multifamily rehabilitation codes
which foster revitalization efforts and also promote energy conservation
by including weatherization and other appropriate standards in the code
revisions, and encouraging their adoption by local governments.
Modify codes to encourage use of energy recovery methods, solid waste
processing and solar systems to achieve maximum energy efficiencies in
new construction and through retrofit of established structures. Revise
codes to permit use of equally energy efficient, but less expensive
materials in construction.
C. To expand employment opportunities:
Establish State financed economic development programs for distressed
communities and allocate State resources on a preferential basis to such
communities.
Establish State programs to encourage the restoration, rehabilitation
and more efficient utilization of existing public and private commercial
and industrial structures and facilities in distressed and declining
communities.
D. To promote orderly growth:
Develop policies which coordinate State resources and State
administrated Federal community and housing development resources for
transportation and access, major utility sites, and air and water
quality management actions.
Develop State policies and guidelines for land use and development
which will assure that adequate amounts of reasonably priced developable
land will be available for the development of modest-cost housing.
Streamline regulatory mechanisms to reduce the cost of procedural
delay in the administration of State and local regulations governing
housing development and renovation.
Provide assistance to develop data to fulfill Community Development
Block Grant, Urban Development Action Grant, Housing Opportunity Plan
and other HUD program application or regulatory requirements.
Assess extent to which HUD approved land use and housing elements
address the Program Objectives and modify the elements, as necessary, to
formulate a State strategy for community conservation and orderly
growth.
Promote legislative initiatives and actions and address the needs of
distressed communities and population, including handicapped
populations.
Consider major patterns of existing and future State land use and
relate to energy conservation, emphasizing factors such as
transportation, industrial needs and development, water availability and
population mobility which are the most efficient.
A. To conserve and revitalize communities:
Prepare a multi-year strategy to include a regional development guide
for major public and private investments coordinated with air quality
and transportation control strategies, energy efficiency and
conservation measures and regional housing strategies.
Implement HUD approved areawide land use and housing elements that
are consistent with the Program Objectives.
Prepare a regional economic development program(s) to identify job
requirements and preferred major development sites in keeping with
Federal, State and local energy conservation objectives.
Strengthen APOs by moving to establish proportional representation
voting systems during the 1971-1981 period.
B. To expand housing choice:
Develop three year regional housing guide and implementation programs
for conventional housing to promote investment and reduce sprawl.
Develop and carry out a comprehensive fair housing strategy (New
Horizons Fair Housing Assistance Program).
Develop a three year assisted housing allocation plan and
implementation program, it includes guidelines for coordinating the
programs of State, HUD and FmHA assistance, or establish or refine a
Housing Opportunity Plan pursuant to 24 CFR Part 791.
Establish multijurisdictional housing authority which operates
program to expand opportunities for low income households outside areas
of concentration.
Establish procedures to ensure consistency of areawide housing
opportunity plan (HOP) goals with housing assistance plans (HAP) goals
of CDBG applicants.
Promote fair and equal housing and facilitate interjurisdictional
mobility, by such means as an Areawide Affirmative Marketing Plan,
counseling programs, relocation information and assistance, advertising
or promotional campaigns, establishing fair housing groups or agencies,
adoption of fair housing ordinances and recommendation for new
legislation.
Operate programs to expand housing choice directed at assisting local
governments to modify their practices which affect housing cost or
restrict housing choice particularly in the area of inclusionary and
exclusionary land use and zoning ordinances.
Propose and encourage programs to eliminate redlining or other public
or private practices which contribute to the problems of distressed
areas.
Propose programs to reduce involuntary relocation of low income
households in areas undergoing redevelopment and reinvestment.
Use A-95 or other review authorities established by State law or
voluntary agreements to implement State and regional housing plans.
Establish standards for local regulations that are consistent with
illustrated State activities, so as to facilitate the construction of
assisted and unassisted modest-cost housing, and monitor compliance with
such standards which may cover house and lot size requirements,
allowable densities, site development requirements, fees and charges,
and procedures governing changes in zoning, and energy conservation.
Develop and implement procedures for monitoring land prices so as to
determine that development policies and controls are not unreasonably
driving up land prices.
C. To expand employment opportunities:
Designate preferential locations for new employment through
development of regional public facilities within communities to be
conserved.
Identify sites for major new private economic development and
otherwise assist private developers to provide new employment to serve
areas and persons of greatest need.
Promote improved transportation services to job centers from areas of
high unemployment.
Establish priorities to promote the redevelopment or modernization of
commercial and industrial areas in older, highly urbanized areas.
Use A-95 or other authorities to divert new employment opportunities
into areas of highest unemployment and poverty.
D. To promote orderly growth:
Develop regional public investment programs and schedules for
regional public facilities which include timing and staging of
facilities coordinated with orderly urban development in existing
communities or neighborhoods, and promoting revitalization of distressed
areas.
Formulate an energy conservation strategy to serve as a guide in
formulating housing, transportation, economic development and other land
use related plans, programs and policies which achieve the Program
Objectives, and encourage its adoption by local governments.
Delineate priority areas where private sector growth should occur, in
order to minimize the cost of additional government services and
maximize the use of existing services.
Establish and operate an urban impact review system.
Implement HUD approved land use and housing elements that are
consistent with the Program Objective.
Establish or strengthen programs to assist localities to apply for
and manage CDBG Small City funds, including analysis of local needs and
problems, and establishment or improvement of local CDBG program
management systems.
Consider major patterns of existing and future regional land use and
relate to energy conservation measures, emphasizing factors such as
transportation, industrial needs and development, water availability and
population mobility.
Develop model building codes and zoning ordinances which ensure
access to sunlight to enable single family and multiple family units to
utilize solar energy.
A. To conserve and revitalize communities:
Develop and carry out a comprehensive plan, or strategy, and action
programs to identify, conserve, and rehabilitate neighborhoods and
business areas within the locality.
Prepare community development plans, annual programs, and plans for
neighborhood strategy areas, and develop applications to qualify for
assistance under the CDBG Small Cities program.
Develop programs for land clearance and site aggregation for private
or public developments within distressed areas.
Promote infilling of vacant land within the locality.
Survey sites, structures, and districts, and develop programs for
historic preservation.
Develop energy conservation measures and facility siting plans.
B. To expand housing choice:
Develop plans and develop implementation programs to conserve and
rehabilitate the existing housing stock.
Formulate the production of new housing to reduce the isolation of
income groups and families and handicapped persons within the locality
and to foster interjurisdictional mobility.
Develop and carry out a comprehensive fair housing strategy (New
Horizons Fair Housing Assistance Project).
Develop, promulgate and adopt single and multi-family
energy-efficient rehabilitation codes which encourage revitalization
efforts.
Develop programs to promote assisted housing, such as land
write-downs, establishment of a housing authority or joining a
multijurisdictional housing authority, and identification and
improvement of sites for assisted housing.
Develop outreach programs and informational services to promote
interjurisdictional mobility and expand housing opportunities for
non-residents.
Update, modernize, and adopt land development and structural codes
and ordinances, to remove exclusionary barriers and create inclusionary
opportunities consistent with 701 Program Objectives.
Streamline local administrative procedures pertaining to the
regulation of land development and building construction so as to reduce
the costs of delay and increase the degree of predictability of the
governmental review and approval process.
C. To expand employment opportunity:
Develop and carry out plans and programs to attract or retain
business and industry, to retain or upgrade the local labor force, or to
create new job opportunities for the unemployed, underemployed or
handicapped in the locality.
Revise local tax and business regulation structures to remove
barriers and encourage new economic development consistent with Program
Objectives.
Prepare applications and development plans necessary to qualify for
assistance under the Urban Development Action Grant program.
D. To promote orderly growth:
Develop and carry out a comprehensive plan (including the statutorily
prescribed land use and housing elements) as a guide for public and
private development, redevelopment, or resource conservation, as
appropriate within the locality, to include priority areas for Federal
community development and housing assistance (insured and subsidized).
Such comprehensive plan to consider the needs of all population groups,
the availability of land, the public sector costs and benefits of
additional growth, and the incidence of their impact on the population,
energy consumption, and the environment.
Assess and revise functional plans and investment programs, such as
transportation, parks and recreation, and social services to alleviate
any disparities and to provide services to meet the special needs of
distressed areas and population groups within the locality.
Plan local facilities consistent with a regional or State public
investment program.
Carry out programs to detail and implement a regional development
guide at the local level.
Conduct flood control studies and develop programs for flood plain
management.
Formulate, and revise as appropriate, local zoning codes and
ordinances to ensure that buildings are constructed in a manner which
meet energy conservation objectives and encourages the utilization of
solar energy and other renewable energy resources.
(Sec. 7(d), Department of HUD (42 U.S.C. 3535(d)), sec. 701 of the
Housing Act of 1954, as amended (40 U.S.C. 461, et seq.))
(45 FR 57967, Aug. 29, 1980, as amended at 49 FR 6714, Feb. 23, 1984)
24 CFR 600.425 FINDING AIDS
A list of CFR titles, subtitles, chapters, subchapters and parts and
an alphabetical list of agencies publishing in the CFR are included in
the CFR Index and Finding Aids volume to the Code of Federal Regulations
which is published seperately and revised annually.
Table of CFR Titles and Chapters
Alphabetical List of Agencies Appearing in the CFR
List of CFR Sections Affected
Chap.
24 CFR 600.425 Table of CFR Titles and Chapters
24 CFR 600.425 Title 1 -- General Provisions
I Administrative Committee of the Federal Register (Parts 1 -- 49)
II Office of the Federal Register (Parts 50 -- 299)
III Administrative Conference of the United States (Parts 300 -- 399)
IV Miscellaneous Agencies (Parts 400 -- 500)
24 CFR 600.425 Title 2 -- (Reserved)
24 CFR 600.425 Title 3 -- The President
I Executive Office of the President (Parts 100 -- 199)
24 CFR 600.425 Title 4 -- Accounts
I General Accounting Office (Parts 1 -- 99)
II Federal Claims Collection Standards (General Accounting Office --
Department of Justice) (Parts 100 -- 299)
III General Accounting Office (CASB) (Parts 300 -- 499)
24 CFR 600.425 Title 5 -- Administrative Personnel
I Office of Personnel Management (Parts 1 -- 1199)
II Merit Systems Protection Board (Parts 1200 -- 1299)
III Office of Management and Budget (Parts 1300 -- 1399)
IV Advisory Committee on Federal Pay (Parts 1400 -- 1499)
V The International Organizations Employees Loyalty Board (Parts 1500
-- 1599)
VI Federal Retirement Thrift Investment Board (Parts 1600 -- 1699)
VII Advisory Commission on Intergovernmental Relations (Parts 1700 --
1799)
VIII Office of Special Council (Parts 1800 -- 1899)
IX Appalachian Regional Commission (Parts 1900 -- 1999)
XI United States Soldiers' and Airmen's Home (Parts 2100 -- 2199)
XIV Federal Labor Relations Authority, General Counsel of the Federal
Labor Relations Authority and Federal Service Impasses Panel (Parts 2400
-- 2499)
XV Office of Administration, Executive Office of the President (Parts
2500 -- 2599)
XVI Office of Government Ethics (Parts 2600 -- 2699)
24 CFR 600.425 Title 6 -- Economic Stabilization (Reserved)
24 CFR 600.425 Title 7 -- Agriculture
Subtitle A -- Office of the Secretary of Agriculture (Parts 0 -- 26)
Subtitle B -- Regulations of the Department of Agriculture
I Agricultural Marketing Service (Standards, Inspections, Marketing
Practices), Department of Agriculture (Parts 27 -- 209)
II Food and Nutrition Service, Department of Agriculture (Parts 210
-- 299)
III Animal and Plant Health Inspection Service, Department of
Agriculture (Parts 300 -- 399)
IV Federal Crop Insurance Corporation, Department of Agriculture
(Parts 400 -- 499)
V Agricultural Research Service, Department of Agriculture (Parts 500
-- 599)
VI Soil Conservation Service, Department of Agriculture (Parts 600 --
699)
VII Agricultural Stabilization and Conservation Service (Agricultural
Adjustment), Department of Agriculture (Parts 700 -- 799)
VIII Federal Grain Inspection Service, Department of Agriculture
(Parts 800 -- 899)
IX Agricultural Marketing Service (Marketing Agreements and Orders;
Fruits, Vegetables, Nuts), Department of Agriculture (Parts 900 -- 999)
X Agricultural Marketing Service (Marketing Agreements and Orders;
Milk), Department of Agriculture (Parts 1000 -- 1199)
XI Agricultural Marketing Service (Marketing Agreements and Orders;
Miscellaneous Commodities), Department of Agriculture (Parts 1200 --
1299)
XIV Commodity Credit Corporation, Department of Agriculture (Parts
1400 -- 1499)
XV Foreign Agricultural Service, Department of Agriculture (Parts
1500 -- 1599)
XVI Rural Telephone Bank, Department of Agriculture (Parts 1600 --
1699)
XVII Rural Electrification Administration, Department of Agriculture
(Parts 1700 -- 1799)
XVIII Farmers Home Administration, Department of Agriculture (Parts
1800 -- 2099)
XXI Foreign Economic Development Service, Department of Agriculture
(Parts 2100 -- 2199)
XXII Office of International Cooperation and Development, Department
of Agriculture (Parts 2200 -- 2299)
XXV Office of the General Sales Manager, Department of Agriculture
(Parts 2500 -- 2599)
XXVI Office of Inspector General, Department of Agriculture (Parts
2600 -- 2699)
XXVII Office of Information Resources Management, Department of
Agriculture (Parts 2700 -- 2799)
XXVIII Office of Operations, Department of Agriculture (Parts 2800 --
2899)
XXIX Office of Energy, Department of Agriculture (Parts 2900 -- 2999)
XXX Office of Finance and Management, Department of Agriculture
(Parts 3000 -- 3099)
XXXI Office of Environmental Quality, Department of Agriculture
(Parts 3100 -- 3199)
XXXII Office of Grants and Program Systems, Department of Agriculture
(Parts 3200 -- 3299)
XXXIII Office of Transportation, Department of Agriculture (Parts
3300 -- 3399)
XXXIV Cooperative State Research Service, Department of Agriculture
(Parts 3400 -- 3499)
XXXVI National Agricultural Statistics Service, Department of
Agriculture (Parts 3600 -- 3699)
XXXVII Economic Research Service, Department of Agriculture (Parts
3700 -- 3799)
XXXVIII World Agricultural Outlook Board, Department of Agriculture
(Parts 3800 -- 3899)
XXXIX Economic Analysis Staff, Department of Agriculture (Parts 3900
-- 3999)
XL Economics Management Staff, Department of Agriculture (Parts 4000
-- 4099)
XLI National Agricultural Library, Department of Agriculture (Part
4100)
24 CFR 600.425 Title 8 -- Aliens and Nationality
I Immigration and Naturalization Service, Department of Justice
(Parts 1 -- 499)
24 CFR 600.425 Title 9 -- Animals and Animal Products
I Animal and Plant Health Inspection Service, Department of
Agriculture (Parts 1 -- 199)
II Packers and Stockyards Administration, Department of Agriculture
(Parts 200 -- 299)
III Food Safety and Inspection Service, Meat and Poultry Inspection,
Department of Agriculture (Parts 300 -- 399)
24 CFR 600.425 Title 10 -- Energy
I Nuclear Regulatory Commission (Parts 0 -- 199)
II Department of Energy (Parts 200 -- 699)
III Department of Energy (Parts 700 -- 999)
X Department of Energy (General Provisions) (Parts 1000 -- 1099)
XV Office of the Federal Inspector for the Alaska Natural Gas
Transportation System (Parts 1500 -- 1599)
XVII Defense Nuclear Facilities Safety Board (Parts 1700 -- 1799)
24 CFR 600.425 Title 11 -- Federal Elections
I Federal Election Commission (Parts 1 -- 9099)
24 CFR 600.425 Title 12 -- Banks and Banking
I Comptroller of the Currency, Department of the Treasury (Parts 1 --
199)
II Federal Reserve System (Parts 200 -- 299)
III Federal Deposit Insurance Corporation (Parts 300 -- 399)
IV Export-Import Bank of the United States (Parts 400 -- 499)
V Office of Thrift Supervision, Department of The Treasury (Parts 500
-- 599)
VI Farm Credit Administration (Parts 600 -- 699)
VII National Credit Union Administration (Parts 700 -- 799)
VIII Federal Financing Bank (Parts 800 -- 899)
IX Federal Housing Finance Board (Parts 900 -- 999)
XI Federal Financial Institutions Examination Council (Parts 1100 --
1199)
XIII Farm Credit System Assistance Board (Parts 1300 -- 1399)
XIV Farm Credit System Insurance Corporation (Parts 1400 -- 1499)
XV Thrift Depositor Protection Oversight Board (Parts 1500 -- 1599)
XVI Resolution Trust Corporation (Parts 1600 -- 1699)
24 CFR 600.425 Title 13 -- Business Credit and Assistance
I Small Business Administration (Parts 1 -- 199)
III Economic Development Administration, Department of Commerce
(Parts 300 -- 399)
24 CFR 600.425 Title 14 -- Aeronautics and Space
I Federal Aviation Administration, Department of Transportation
(Parts 1 -- 199)
II Office of the Secretary, Department of Transportation (Aviation
Proceedings) (Parts 200 -- 399)
III Office of Commercial Space Transportation, Department of
Transportation (Parts 400 -- 499)
V National Aeronautics and Space Administration (Parts 1200 -- 1299)
24 CFR 600.425 Title 15 -- Commerce and Foreign Trade
Subtitle A -- Office of the Secretary of Commerce (Parts 0 -- 29)
Subtitle B -- Regulations Relating to Commerce and Foreign Trade
I Bureau of the Census, Department of Commerce (Parts 30 -- 199)
II National Institute of Standards and Technology, Department of
Commerce (Parts 200 -- 299)
III International Trade Administration, Department of Commerce (Parts
300 -- 399)
IV Foreign-Trade Zones Board (Parts 400 -- 499)
VII Bureau of Export Administration, Department of Commerce (Parts
700 -- 799)
VIII Bureau of Economic Analysis, Department of Commerce (Parts 800
-- 899)
IX National Oceanic and Atmospheric Administration, Department of
Commerce (Parts 900 -- 999)
XI Technology Administration, Department of Commerce (Parts 1100 --
1199)
XII United States Travel and Tourism Administration, Department of
Commerce (Parts 1200 -- 1299)
XIII East-West Foreign Trade Board (Parts 1300 -- 1399)
XIV Minority Business Development Agency (Parts 1400 -- 1499)
Subtitle C -- Regulations Relating to Foreign Trade Agreements
XX Office of the United States Trade Representative (Parts 2000 --
2099)
Subtitle D -- Regulations Relating to Telecommunications and
Information
XXIII National Telecommunications and Information Administration,
Department of Commerce (Parts 2300 -- 2399)
24 CFR 600.425 Title 16 -- Commercial Practices
I Federal Trade Commission (Parts 0 -- 999)
II Consumer Product Safety Commission (Parts 1000 -- 1799)
24 CFR 600.425 Title 17 -- Commodity and Securities Exchanges
I Commodity Futures Trading Commission (Parts 1 -- 199)
II Securities and Exchange Commission (Parts 200 -- 399)
IV Department of the Treasury (Parts 400 -- 499)
24 CFR 600.425 Title 18 -- Conservation of Power and Water Resources
I Federal Energy Regulatory Commission, Department of Energy (Parts 1
-- 399)
III Delaware River Basin Commission (Parts 400 -- 499)
VI Water Resources Council (Parts 700 -- 799)
VIII Susquehanna River Basin Commission (Parts 800 -- 899)
XIII Tennessee Valley Authority (Parts 1300 -- 1399)
24 CFR 600.425 Title 19 -- Customs Duties
I United States Customs Service, Department of the Treasury (Parts 1
-- 199)
II United States International Trade Commission (Parts 200 -- 299)
III International Trade Administration, Department of Commerce (Parts
300 -- 399)
24 CFR 600.425 Title 20 -- Employees' Benefits
I Office of Workers' Compensation Programs, Department of Labor
(Parts 1 -- 199)
II Railroad Retirement Board (Parts 200 -- 399)
III Social Security Administration, Department of Health and Human
Services (Parts 400 -- 499)
IV Employees' Compensation Appeals Board, Department of Labor (Parts
500 -- 599)
V Employment and Training Administration, Department of Labor (Parts
600 -- 699)
VI Employment Standards Administration, Department of Labor (Parts
700 -- 799)
VII Benefits Review Board, Department of Labor (Parts 800 -- 899)
VIII Joint Board for the Enrollment of Actuaries (Parts 900 -- 999)
IX Office of the Assistant Secretary for Veterans' Employment and
Training, Department of Labor (Parts 1000 -- 1099)
24 CFR 600.425 Title 21 -- Food and Drugs
I Food and Drug Administration, Department of Health and Human
Services (Parts 1 -- 1299)
II Drug Enforcement Administration, Department of Justice (Parts 1300
-- 1399)
24 CFR 600.425 Title 22 -- Foreign Relations
I Department of State (Parts 1 -- 199)
II Agency for International Development, International Development
Cooperation Agency (Parts 200 -- 299)
III Peace Corps (Parts 300 -- 399)
IV International Joint Commission, United States and Canada (Parts
400 -- 499)
V United States Information Agency (Parts 500 -- 599)
VI United States Arms Control and Disarmament Agency (Parts 600 --
699)
VII Overseas Private Investment Corporation, International
Development Cooperation Agency (Parts 700 -- 799)
IX Foreign Service Grievance Board Regulations (Parts 900 -- 999)
X Inter-American Foundation (Parts 1000 -- 1099)
XI International Boundary and Water Commission, United States and
Mexico, United States Section (Parts 1100 -- 1199)
XII United States International Development Cooperation Agency (Parts
1200 -- 1299)
XIII Board for International Broadcasting (Parts 1300 -- 1399)
XIV Foreign Service Labor Relations Board; Federal Labor Relations
Authority; General Counsel of the Federal Labor Relations Authority;
and the Foreign Service Impasse Disputes Panel (Parts 1400 -- 1499)
XV African Development Foundation (Parts 1500 -- 1599)
XVI Japan-United States Friendship Commission (Parts 1600 -- 1699)
24 CFR 600.425 Title 23 -- Highways
I Federal Highway Administration, Department of Transportation (Parts
1 -- 999)
II National Highway Traffic Safety Administration and Federal Highway
Administration, Department of Transportation (Parts 1200 -- 1299)
III National Highway Traffic Safety Administration, Department of
Transportation (Parts 1300 -- 1399)
24 CFR 600.425 Title 24 -- Housing and Urban Development
Subtitle A -- Office of the Secretary, Department of Housing and
Urban Development (Parts 0 -- 99)
Subtitle B -- Regulations Relating to Housing and Urban Development
I Office of Assistant Secretary for Equal Opportunity, Department of
Housing and Urban Development (Parts 100 -- 199)
II Office of Assistant Secretary for Housing-Federal Housing
Commissioner, Department of Housing and Urban Development (Parts 200 --
299)
III Government National Mortgage Association, Department of Housing
and Urban Development (Parts 300 -- 399)
V Office of Assistant Secretary for Community Planning and
Development, Department of Housing and Urban Development (Parts 500 --
599)
VI Office of Assistant Secretary for Community Planning and
Development, Department of Housing and Urban Development (Parts 600 --
699)
VII Office of the Secretary, Department of Housing and Urban
Development (Section 8 Housing Assistance Programs and Public and Indian
Housing Programs) (Parts 700 -- 799)
VIII Office of the Assistant Secretary for Housing -- Federal Housing
Commissioner, Department of Housing and Urban Development (Section 8
Housing Assistance Programs and Section 202 Direct Loan Program) (Parts
800 -- 899)
IX Office of Assistant Secretary for Public and Indian Housing,
Department of Housing and Urban Development (Parts 900 -- 999)
X Office of Assistant Secretary for Housing -- Federal Housing
Commissioner, Department of Housing and Urban Development (Interstate
Land Sales Registration Program) (Parts 1700 -- 1799)
XI Solar Energy and Energy Conservation Bank, Department of Housing
and Urban Development (Parts 1800 -- 1899)
XII Office of Inspector General, Department of Housing and Urban
Development (Parts 2000 -- 2099)
XV Mortgage Insurance and Loan Programs under the Emergency
Homeowners' Relief Act, Department of Housing and Urban Development
(Parts 2700 -- 2799)
XX Office of Assistant Secretary for Housing -- Federal Housing
Commissioner, Department of Housing and Urban Development (Parts 3200 --
3699)
XXV Neighborhood Reinvestment Corporation (Parts 4100 -- 4199)
24 CFR 600.425 Title 25 -- Indians
I Bureau of Indian Affairs, Department of the Interior (Parts 1 --
299)
II Indian Arts and Crafts Board, Department of the Interior (Parts
300 -- 399)
III National Indian Gaming Commission (Parts 500 -- 599)
IV Office of Navajo and Hopi Indian Relocation (Parts 700 -- 799)
24 CFR 600.425 Title 26 -- Internal Revenue
I Internal Revenue Service, Department of the Treasury (Parts 1 --
799)
24 CFR 600.425 Title 27 -- Alcohol, Tobacco Products and Firearms
I Bureau of Alcohol, Tobacco and Firearms, Department of the Treasury
(Parts 1 -- 299)
24 CFR 600.425 Title 28 -- Judicial Administration
I Department of Justice (Parts 0 -- 199)
III Federal Prison Industries, Inc., Department of Justice (Parts 300
-- 399)
V Bureau of Prisons, Department of Justice (Parts 500 -- 599)
VI Offices of Independent Counsel, Department of Justice (Parts 600
-- 699)
VII Office of Independent Counsel (Parts 700 -- 799)
24 CFR 600.425 Title 29 -- Labor
Subtitle A -- Office of the Secretary of Labor (Parts 0 -- 99)
Subtitle B -- Regulations Relating to Labor
I National Labor Relations Board (Parts 100 -- 199)
II Bureau of Labor-Management Relations and Cooperative Programs,
Department of Labor (Parts 200 -- 299)
III National Railroad Adjustment Board (Parts 300 -- 399)
IV Office of Labor-Management Standards, Department of Labor (Parts
400 -- 499)
V Wage and Hour Division, Department of Labor (Parts 500 -- 899)
IX Construction Industry Collective Bargaining Commission (Parts 900
-- 999)
X National Mediation Board (Parts 1200 -- 1299)
XII Federal Mediation and Conciliation Service (Parts 1400 -- 1499)
XIV Equal Employment Opportunity Commission (Parts 1600 -- 1699)
XVII Occupational Safety and Health Administration, Department of
Labor (Parts 1900 -- 1999)
XX Occupational Safety and Health Review Commission (Parts 2200 --
2499)
XXV Pension and Welfare Benefits Administration, Department of Labor
(Parts 2500 -- 2599)
XXVI Pension Benefit Guaranty Corporation (Parts 2600 -- 2699)
XXVII Federal Mine Safety and Health Review Commission (Parts 2700 --
2799)
24 CFR 600.425 Title 30 -- Mineral Resources
I Mine Safety and Health Administration, Department of Labor (Parts 1
-- 199)
II Minerals Management Service, Department of the Interior (Parts 200
-- 299)
III Board of Surface Mining and Reclamation Appeals, Department of
the Interior (Parts 300 -- 399)
IV Geological Survey, Department of the Interior (Parts 400 -- 499)
VI Bureau of Mines, Department of the Interior (Parts 600 -- 699)
VII Office of Surface Mining Reclamation and Enforcement, Department
of the Interior (Parts 700 -- 999)
24 CFR 600.425 Title 31 -- Money and Finance: Treasury
Subtitle A -- Office of the Secretary of the Treasury (Parts 0 -- 50)
Subtitle B -- Regulations Relating to Money and Finance
I Monetary Offices, Department of the Treasury (Parts 51 -- 199)
II Fiscal Service, Department of the Treasury (Parts 200 -- 399)
IV Secret Service, Department of the Treasury (Parts 400 -- 499)
V Office of Foreign Assets Control, Department of the Treasury (Parts
500 -- 599)
VI Bureau of Engraving and Printing, Department of the Treasury
(Parts 600 -- 699)
VII Federal Law Enforcement Training Center, Department of the
Treasury (Parts 700 -- 799)
VIII Office of International Investment, Department of the Treasury
(Parts 800 -- 899)
24 CFR 600.425 Title 32 -- National Defense
Subtitle A -- Department of Defense
I Office of the Secretary of Defense (Parts 1 -- 399)
V Department of the Army (Parts 400 -- 699)
VI Department of the Navy (Parts 700 -- 799)
VII Department of the Air Force (Parts 800 -- 1099)
Subtitle B -- Other Regulations Relating to National Defense
XII Defense Logistics Agency (Parts 1200 -- 1299)
XVI Selective Service System (Parts 1600 -- 1699)
XIX Central Intelligence Agency (Parts 1900 -- 1999)
XX Information Security Oversight Office (Parts 2000 -- 2099)
XXI National Security Council (Parts 2100 -- 2199)
XXIV Office of Science and Technology Policy (Parts 2400 -- 2499)
XXVII Office for Micronesian Status Negotiations (Parts 2700 -- 2799)
XXVIII Office of the Vice President of the United States (Parts 2800
-- 2899)
24 CFR 600.425 Title 33 -- Navigation and Navigable Waters
I Coast Guard, Department of Transportation (Parts 1 -- 199)
II Corps of Engineers, Department of the Army (Parts 200 -- 399)
IV Saint Lawrence Seaway Development Corporation, Department of
Transportation (Parts 400 -- 499)
24 CFR 600.425 Title 34 -- Education
Subtitle A -- Office of the Secretary, Department of Education (Parts
1 -- 99)
Subtitle B -- Regulations of the Offices of the Department of
Education
I Office for Civil Rights, Department of Education (Parts 100 -- 199)
II Office of Elementary and Secondary Education, Department of
Education (Parts 200 -- 299)
III Office of Special Education and Rehabilitative Services,
Department of Education (Parts 300 -- 399)
IV Office of Vocational and Adult Education, Department of Education
(Parts 400 -- 499)
V Office of Bilingual Education and Minority Languages Affairs,
Department of Education (Parts 500 -- 599)
VI Office of Postsecondary Education, Department of Education (Parts
600 -- 699)
VII Office of Educational Research and Improvement, Department of
Education (Parts 700 -- 799)
24 CFR 600.425 Title 35 -- Panama Canal
I Panama Canal Regulations (Parts 1 -- 299)
24 CFR 600.425 Title 36 -- Parks, Forests, and Public Property
I National Park Service, Department of the Interior (Parts 1 -- 199)
II Forest Service, Department of Agriculture (Parts 200 -- 299)
III Corps of Engineers, Department of the Army (Parts 300 -- 399)
IV American Battle Monuments Commission (Parts 400 -- 499)
V Smithsonian Institution (Parts 500 -- 599)
VII Library of Congress (Parts 700 -- 799)
VIII Advisory Council on Historic Preservation (Parts 800 -- 899)
IX Pennsylvania Avenue Development Corporation (Parts 900 -- 999)
XI Architectural and Transportation Barriers Compliance Board (Parts
1100 -- 1199)
XII National Archives and Records Administration (Parts 1200 -- 1299)
24 CFR 600.425 Title 37 -- Patents, Trademarks, and Copyrights
I Patent and Trademark Office, Department of Commerce (Parts 1 --
199)
II Copyright Office, Library of Congress (Parts 200 -- 299)
III Copyright Royalty Tribunal (Parts 300 -- 399)
IV Assistant Secretary for Technology Policy, Department of Commerce
(Parts 400 -- 499)
V Under Secretary for Technology, Department of Commerce (Parts 500
-- 599)
24 CFR 600.425 Title 38 -- Pensions, Bonuses, and Veterans' Relief
I Department of Veterans Affairs (Parts 0 -- 99)
24 CFR 600.425 Title 39 -- Postal Service
I United States Postal Service (Parts 1 -- 999)
III Postal Rate Commission (Parts 3000 -- 3099)
24 CFR 600.425 Title 40 -- Protection of Environment
I Environmental Protection Agency (Parts 1 -- 799)
V Council on Environmental Quality (Parts 1500 -- 1599)
24 CFR 600.425 Title 41 -- Public Contracts and Property Management
Subtitle B -- Other Provisions Relating to Public Contracts
50 Public Contracts, Department of Labor (Parts 50-1 -- 50-999)
51 Committee for Purchase from the Blind and Other Severely
Handicapped (Parts 51-1 -- 51-99)
60 Office of Federal Contract Compliance Programs, Equal Employment
Opportunity, Department of Labor (Parts 60-1 -- 60-999)
61 Office of the Assistant Secretary for Veterans Employment and
Training, Department of Labor (Parts 61-1 -- 61-999)
Subtitle C -- Federal Property Management Regulations System
101 Federal Property Management Regulations (Parts 101-1 -- 101-99)
105 General Services Administration (Parts 105-1 -- 105-999)
109 Department of Energy Property Management Regulations (Parts 109-1
-- 109-99)
114 Department of the Interior (Parts 114-1 -- 114-99)
115 Environmental Protection Agency (Parts 115-1 -- 115-99)
128 Department of Justice (Parts 128-1 -- 128-99)
132 Department of the Air Force (Parts 132-1 -- 132-99)
Subtitle D -- Other Provisions Relating to Property Management
(Reserved)
Subtitle E -- Federal Information Resources Management Regulations
System
201 Federal Information Resources Management Regulation (Parts 201-1
-- 201-99)
Subtitle F -- Federal Travel Regulation System
301 Travel Allowances (Parts 301-1 -- 301-99)
302 Relocation Allowances (Parts 302-1 -- 302-99)
303 Payment of Expenses Connected with the Death of Certain Employees
(Parts 303-1 -- 303-2)
304 Payment from a non-Federal source for travel expenses (Parts
304-1 -- 304-99)
24 CFR 600.425 Title 42 -- Public Health
I Public Health Service, Department of Health and Human Services
(Parts 1 -- 199)
IV Health Care Financing Administration, Department of Health and
Human Services (Parts 400 -- 499)
V Office of Inspector General-Health Care, Department of Health and
Human Services (Parts 1000 -- 1999)
24 CFR 600.425 Title 43 -- Public Lands: Interior
Subtitle A -- Office of the Secretary of the Interior (Parts 1 --
199)
Subtitle B -- Regulations Relating to Public Lands
I Bureau of Reclamation, Department of the Interior (Parts 200 --
499)
II Bureau of Land Management, Department of the Interior (Parts 1000
-- 9999)
24 CFR 600.425 Title 44 -- Emergency Management and Assistance
I Federal Emergency Management Agency (Parts 0 -- 399)
IV Department of Commerce and Department of Transportation (Parts 400
-- 499)
24 CFR 600.425 Title 45 -- Public Welfare
Subtitle A -- Department of Health and Human Services, General
Administration (Parts 1 -- 199)
Subtitle B -- Regulations Relating to Public Welfare
II Office of Family Assistance (Assistance Programs), Family Support
Administration, Department of Health and Human Services (Parts 200 --
299)
III Office of Child Support Enforcement (Child Support Enforcement
Program), Family Support Administration, Department of Health and Human
Services (Parts 300 -- 399)
IV Office of Refugee Resettlement, Administration for Children and
Families Department of Health and Human Services (Parts 400 -- 499)
V Foreign Claims Settlement Commission of the United States,
Department of Justice (Parts 500 -- 599)
VI National Science Foundation (Parts 600 -- 699)
VII Commission on Civil Rights (Parts 700 -- 799)
VIII Office of Personnel Management (Parts 800 -- 899)
X Office of Community Services, Family Support Administration,
Department of Health and Human Services (Parts 1000 -- 1099)
XI National Foundation on the Arts and the Humanities (Parts 1100 --
1199)
XII ACTION (Parts 1200 -- 1299)
XIII Office of Human Development Services, Department of Health and
Human Services (Parts 1300 -- 1399)
XVI Legal Services Corporation (Parts 1600 -- 1699)
XVII National Commission on Libraries and Information Science (Parts
1700 -- 1799)
XVIII Harry S. Truman Scholarship Foundation (Parts 1800 -- 1899)
XX Commission on the Bicentennial of the United States Constitution
(Parts 2000 -- 2099)
XXI Commission on Fine Arts (Parts 2100 -- 2199)
XXII Christopher Columbus Quincentenary Jubilee Commission (Parts
2200 -- 2299)
XXIV James Madison Memorial Fellowship Foundation (Parts 2400 --
2499)
24 CFR 600.425 Title 46 -- Shipping
I Coast Guard, Department of Transportation (Parts 1 -- 199)
II Maritime Administration, Department of Transportation (Parts 200
-- 399)
III Coast Guard (Great Lakes Pilotage), Department of Transportation
(Parts 400 -- 499)
IV Federal Maritime Commission (Parts 500 -- 599)
24 CFR 600.425 Title 47 -- Telecommunication
I Federal Communications Commission (Parts 0 -- 199)
II Office of Science and Technology Policy and National Security
Council (Parts 200 -- 299)
III National Telecommunications and Information Administration,
Department of Commerce (Parts 300 -- 399)
24 CFR 600.425 Title 48 -- Federal Acquisition Regulations System
1 Federal Acquisition Regulation (Parts 1 -- 99)
2 Department of Defense (Parts 200 -- 299)
3 Department of Health and Human Services (Parts 300 -- 399)
4 Department of Agriculture (Parts 400 -- 499)
5 General Services Administration (Parts 500 -- 599)
6 Department of State (Parts 600 -- 699)
7 Agency for International Development (Parts 700 -- 799)
8 Department of Veterans Affairs (Parts 800 -- 899)
9 Department of Energy (Parts 900 -- 999)
10 Department of the Treasury (Parts 1000 -- 1099)
12 Department of Transportation (Parts 1200 -- 1299)
13 Department of Commerce (Parts 1300 -- 1399)
14 Department of the Interior (Parts 1400 -- 1499)
15 Environmental Protection Agency (Parts 1500 -- 1599)
16 Office of Personnel Management Federal Employees Health Benefits
Acquisition Regulation (Parts 1600 -- 1699)
17 Office of Personnel Management (Parts 1700 -- 1799)
18 National Aeronautics and Space Administration (Parts 1800 -- 1899)
19 United States Information Agency (Parts 1900 -- 1999)
22 Small Business Administration (Parts 2200 -- 2299)
24 Department of Housing and Urban Development (Parts 2400 -- 2499)
25 National Science Foundation (Parts 2500 -- 2599)
28 Department of Justice (Parts 2800 -- 2899)
29 Department of Labor (Parts 2900 -- 2999)
34 Department of Education Acquisition Regulation (Parts 3400 --
3499)
35 Panama Canal Commission (Parts 3500 -- 3599)
44 Federal Emergency Management Agency (Parts 4400 -- 4499)
51 Department of the Army Acquisition Regulations (Parts 5100 --
5199)
52 Department of the Navy Acquisition Regulations (Parts 5200 --
5299)
53 Department of the Air Force Federal Acquisition Regulation
Supplement (Parts 5300 -- 5399)
57 African Development Foundation (Parts 5700 -- 5799)
61 General Services Administration Board of Contract Appeals (Parts
6100 -- 6199)
63 Department of Transportation Board of Contract Appeals (Parts 6300
-- 6399)
99 Cost Accounting Standards Board, Office of Federal Procurement
Policy, Office of Management and Budget (Parts 9900 -- 9999)
24 CFR 600.425 Title 49 -- Transportation
Subtitle A -- Office of the Secretary of Transportation (Parts 1 --
99)
Subtitle B -- Other Regulations Relating to Transportation
I Research and Special Programs Administration, Department of
Transportation (Parts 100 -- 199)
II Federal Railroad Administration, Department of Transportation
(Parts 200 -- 299)
III Federal Highway Administration, Department of Transportation
(Parts 300 -- 399)
IV Coast Guard, Department of Transportation (Parts 400 -- 499)
V National Highway Traffic Safety Administration, Department of
Transportation (Parts 500 -- 599)
VI Urban Mass Transportation Administration, Department of
Transportation (Parts 600 -- 699)
VII National Railroad Passenger Corporation (AMTRAK) (Parts 700 --
799)
VIII National Transportation Safety Board (Parts 800 -- 899)
X Interstate Commerce Commission (Parts 1000 -- 1399)
24 CFR 600.425 Title 50 -- Wildlife and Fisheries
I United States Fish and Wildlife Service, Department of the Interior
(Parts 1 -- 199)
II National Marine Fisheries Service, National Oceanic and
Atmospheric Administration, Department of Commerce (Parts 200 -- 299)
III International Regulatory Agencies (Fishing and Whaling) (Parts
300 -- 399)
IV Joint Regulations (United States Fish and Wildlife Service,
Department of the Interior and National Marine Fisheries Service,
National Oceanic and Atmospheric Administration, Department of
Commerce); Endangered Species Committee Regulations (Parts 400 -- 499)
V Marine Mammal Commission (Parts 500 -- 599)
VI Fishery Conservation and Management, National Oceanic and
Atmospheric Administration, Department of Commerce (Parts 600 -- 699)
24 CFR 600.425 CFR Index and Finding Aids Subject/Agency Index
List of Agency Prepared Indexes Parallel Table of Statutory Authorities
and Rules Acts Requiring Publication in the Federal Register List of CFR
Titles, Chapters, Subchapters, and Parts
24 CFR 600.425 Alphabetical List of Agencies Appearing in the CFR
CFR Title, Subtitle or
Agency
Chapter
ACTION 45, XII
Administrative Committee of the Federal Register 1, I
Administrative Conference of the United States 1, III
Advisory Commission on Intergovernmental Relations 5, VII
Advisory Committee on Federal Pay 5, IV
Advisory Council on Historic Preservation 36, VIII
African Development Foundation 22, XV; 48, 57
Agency for International Development 22, II; 48, 7
Agricultural Marketing Service 7, I, IX, X, XI
Agricultural Research Service 7, V
Agricultural Stabilization and Conservation Service 7, VII
Agriculture Department
Agricultural Marketing Service 7, I, IX, X, XI
Agricultural Research Service 7, V
Agricultural Stabilization and Conservation Service 7, VII
Animal and Plant Health Inspection Service 7, III; 9, I
Commodity Credit Corporation 7, XIV
Cooperative State Research Service 7, XXXIV
Economic Analysis Staff 7, XXXIX
Economic Research Service 7, XXXVII
Economics Management Staff 7, XL
Energy, Office of 7, XXIX
Environmental Quality, Office of 7, XXXI
Farmers Home Administration 7, XVIII
Federal Acquisition Regulation 48, 4
Federal Crop Insurance Corporation 7, IV
Federal Grain Inspection Service 7, VIII
Finance and Management, Office of 7, XXX
Food and Nutrition Service 7, II
Food Safety and Inspection Service 9, III
Foreign Agricultural Service 7, XV
Foreign Economic Development Service 7, XXI
Forest Service 36, II
General Sales Manager, Office of 7, XXV
Grants and Program Systems, Office of 7, XXXII
Information Resources Management, Office of 7, XXVII
Inspector General, Office of 7, XXVI
International Cooperation and Development Office 7, XXII
National Agricultural Library 7, XLI
National Agricultural Statistics Service 7, XXXVI
Operations Office 7, XXVIII
Packers and Stockyards Administration 9, II
Rural Electrification Administration 7, XVII
Rural Telephone Bank 7, XVI
Secretary of Agriculture, Office of 7, Subtitle A
Soil Conservation Service 7, VI
Transportation, Office of 7, XXXIII
World Agriculture Outlook Board 7, XXXVIII
Air Force Department 32, VII; 41, Subtitle C, Ch. 132
Federal Acquisition Regulation Supplement 48, 53
Alaska Natural Gas Transportation System, Office of the Federal
Inspector 10, XV
Alcohol, Tobacco and Firearms, Bureau of 27, I
AMTRAK 49, VII
American Battle Monuments Commission 36, IV
Animal and Plant Health Inspection Service 7, III; 9, I
Appalachian Regional Commission 5, IX
Architectural and Transportation Barriers Compliance Board 36, XI
Arms Control and Disarmament Agency, U.S. 22, VI
Army Department 32, V
Engineers, Corps of 33, II; 36, III
Federal Acquisition Regulation 48, 51
Assistant Secretary for Technology Policy, Department of Commerce 37,
IV
Benefits Review Board 20, VII
Bicentennial of the United States Constitution, Commission on the 45,
XX
Bilingual Education and Minority Languages Affairs, Office of 34, V
Blind and Other Severely Handicapped, Committee for Purchase from 41,
51
Board for International Broadcasting 22, XIII
Budget, Office of Management and 5, III
Census Bureau 15, I
Central Intelligence Agency 32, XIX
Child Support Enforcement, Office of 45, III
Christopher Columbus Quincentenary Jubilee Commission 45, XXII
Civil Rights Commission 45, VII
Civil Rights, Office for (Education Department) 34, I
Claims Collection Standards, Federal 4, II
Coast Guard 33, I; 46, I, III; 49, IV
Commerce Department 44, IV
Census Bureau 15, I
Assistant Secretary for Technology Policy 37, IV
Economic Affairs, Under Secretary 37, V
Economic Analysis, Bureau of 15, VIII
Economic Development Administration 13, III
Endangered Species Committee 50, IV
Export Administration Bureau 15, VII
Federal Acquisition Regulation 48, 13
Fishery Conservation and Management 50, VI
International Trade Administration 15, III; 19, III
National Institute of Standards and Technology 15, II
National Marine Fisheries Service 50, II, IV
National Oceanic and Atmospheric Administration 15, IX; 50, II, III,
IV, VI
National Telecommunications and Information Administration 15, XXIII;
47, III
Patent and Trademark Office 37, I
Productivity, Technology and Innovation, Assistant Secretary for 37,
IV
Secretary of Commerce, Office of 15, Subtitle A
Technology Administration 15, XI
Under Secretary for Technology 37, V
United States Travel and Tourism Administration 15, XII
Commercial Space Transportation, Office of, Department of
Transportation 14, III
Commission on the Bicentennial of the United States Constitution 45,
XX
Committee for Purchase from the Blind and Other Severely Handicapped
41, 51
Commodity Credit Corporation 7, XIV
Commodity Futures Trading Commission 17, I
Community Planning and Development, Office of Assistant Secretary for
24, V, VI
Community Services, Office of 45, X
Comptroller of the Currency 12, I
Construction Industry Collective Bargaining Commission 29, IX
Consumer Product Safety Commission 16, II
Cooperative State Research Service 7, XXXIV
Copyright Office 37, II
Copyright Royalty Tribunal 37, III
Cost Accounting Standards Board, Office of Federal Procurement Policy
48, 99
Council on Environmental Quality 40, V
Customs Service, United States 19, I
Defense Department 32, Subtitle A
Air Force Department 32, VII; 41, Subtitle C, Ch. 132
Army Department 32, V; 33, II; 36, III, 48, 51
Engineers, Corps of 33, II; 36, III
Federal Acquisition Regulation 48, 2
Navy Department 32, VI; 48, 52
Secretary of Defense, Office of 32, I
Defense Logistics Agency 32, XII
Defense Nuclear Facilities Safety Board 10, XVII
Delaware River Basin Commission 18, III
Drug Enforcement Administration 21, II
East-West Foreign Trade Board 15, XIII
Economic Affairs, Under Secretary (Commerce) 37, V
Economic Analysis, Bureau of 15, VIII
Economic Analysis Staff, Department of Agriculture 7, XXXIX
Economic Development Administration 13, III
Economics Management Staff 7, XL
Economic Research Service 7, XXXVII
Education, Department of
Bilingual Education and Minority Languages Affairs, Office of 34, V
Civil Rights, Office for 34, I
Educational Research and Improvement, Office of 34, VII
Elementary and Secondary Education, Office of 34, II
Federal Acquisition Regulation 48, 34
Postsecondary Education, Office of 34, VI
Secretary of Education, Office of 34, Subtitle A
Special Education and Rehabilitative Services, Office of 34, III
Vocational and Adult Education, Office of 34, IV
Educational Research and Improvement, Office of 34, VII
Elementary and Secondary Education, Office of 34, II
Employees' Compensation Appeals Board 20, IV
Employees Loyalty Board, International Organizations 5, V
Employment and Training Administration 20, V
Employment Standards Administration 20, VI
Endangered Species Committee 50, IV
Energy, Department of 10, II, III, X; 41, 109
Federal Acquisition Regulation 48, 9
Federal Energy Regulatory Commission 18, I
Energy, Office of, Department of Agriculture 7, XXIX
Engineers, Corps of 33, II; 36, III
Engraving and Printing, Bureau of 31, VI
Environmental Protection Agency 40, I; 41, 115; 48, 15
Environmental Quality, Office of (Agriculture Department) 7, XXXI
Equal Employment Opportunity Commission 29, XIV
Equal Opportunity, Office of Assistant Secretary for 24, I
Executive Office of the President 3, I
Administration, Office of 5, XV
Export Administration Bureau 15, VII
Export-Import Bank of the United States 12, IV
Family Assistance, Office of 45, II
Family Support Administration 45, II, III, IV, X
Farm Credit Administration 12, VI
Farm Credit System Assistance Board 12, XIII
Farm Credit System Insurance Corporation 12, XIV
Farmers Home Administration 7, XVIII
Federal Acquisition Regulation 48, 1
Federal Aviation Administration 14, I
Federal Claims Collection Standards 4, II
Federal Communications Commission 47, I
Federal Contract Compliance Programs, Office of 41, 60
Federal Crop Insurance Corporation 7, IV
Federal Deposit Insurance Corporation 12, III
Federal Election Commission 11, I
Federal Emergency Management Agency 44, I; 48, 44
Federal Energy Regulatory Commission 18, I
Federal Financial Institutions Examination Council 12, XI
Federal Financing Bank 12, VIII
Federal Grain Inspection Service 7, VIII
Federal Highway Administration 23, I, II; 49, III
Federal Home Loan Mortgage Corporation 1, IV
Federal Housing Finance Board 12, IX
Federal Information Resources Management Regulations 41, Subtitle E,
Ch. 201
Federal Inspector for the Alaska Natural Gas Transportation System,
Office of 10, XV
Federal Labor Relations Authority, and General Counsel of the Federal
Labor Relations Authority 5, XIV; 22, XIV
Federal Law Enforcement Training Center 31, VII
Federal Maritime Commission 46, IV
Federal Mediation and Conciliation Service 29, XII
Federal Mine Safety and Health Review Commission 29, XXVII
Federal Pay, Advisory Committee on 5, IV
Federal Prison Industries, Inc. 28, III
Federal Procurement Policy Office 48, 99
Federal Property Management Regulations 41, 101
Federal Property Management Regulations System 41, Subtitle C
Federal Railroad Administration 49, II
Federal Register, Administrative Committee of 1, I
Federal Register, Office of 1, II
Federal Reserve System 12, II
Federal Retirement Thrift Investment Board 5, VI
Federal Service Impasses Panel 5, XIV
Federal Trade Commission 16, I
Federal Travel Regulation System 41, Subtitle F
Finance and Management, Department of Agriculture 7, XXX
Fine Arts Commission 45, XXI
Fiscal Service 31, II
Fish and Wildlife Service, United States 50, I, IV
Fishery Conservation and Management 50, VI
Fishing and Whaling, International Regulatory Agencies 50, III
Food and Drug Administration 21, I
Food and Nutrition Service 7, II
Food Safety and Inspection Service 9, III
Foreign Agricultural Service 7, XV
Foreign Assets Control, Office of 31, V
Foreign Claims Settlement Commission of United States 45, V
Foreign Economic Development Service 7, XXI
Foreign Service Grievance Board 22, IX
Foreign Service Impasse Disputes Panel 22, XIV
Foreign Service Labor Relations Board 22, XIV
Foreign-Trade Zones Board 15, IV
Forest Service 36, II
General Accounting Office 4, I, II, III
General Sales Manager, Office of 7, XXV
General Services Administration
Contract Appeals Board 48, 61
Federal Acquisition Regulation 48, 5
Federal Information Resources Management Regulations 41, Subtitle E,
Ch. 201
Federal Property Management Regulations System 41, 101, 105
Federal Travel Regulation System 41, Subtitle F
Payment of Expenses Connected With the Death of Certain Employees 41,
303
Reduction in Meeting and Training Allowance Payments 41, 304
Relocation Allowances 41, 302
Travel Allowances 41, 301
Geological Survey 30, IV
Government Ethics, Office of 5, XVI
Government National Mortgage Association 24, III
Grants and Program Systems, Office of 7, XXXII
Great Lakes Pilotage 46, III
Harry S. Truman Scholarship Foundation 45, XVIII
Health and Human Services, Department of 45, Subtitle A
Child Support Enforcement, Office of 45, III
Community Services, Office of 45, X
Family Assistance, Office of 45, II
Family Support Administration 45, II, III, IV, X
Federal Acquisition Regulation 48, 3
Food and Drug Administration 21, I
Health Care Financing Administration 42, IV
Human Development Services Office 45, XIII
Inspector General, Office of 42, V
Public Health Service 42, I
Refugee Resettlement, Office of 45, IV
Social Security Administration 20, III; 45, IV
Health Care Financing Administration 42, IV
Housing and Urban Development, Department of
Community Planning and Development, Office of Assistant Secretary for
24, V, VI
Equal Opportunity, Office of Assistant Secretary for 24, I
Federal Acquisition Regulation 48, 24
Government National Mortgage Association 24, III
Housing -- Federal Housing Commissioner, Office of Assistant
Secretary for 24, II, VIII, X, XX
Inspector General, Office of 24, XII
Mortgage Insurance and Loan Programs Under Emergency Homeowners'
Relief Act 24, XV
Public and Indian Housing, Office of Assistant Secretary for 24, IX
Secretary, Office of 24, Subtitle B, VII
Solar Energy and Energy Conservation Bank 24, XI
Housing -- Federal Housing Commissioner, Office of Assistant
Secretary for 24, II, VIII, X, XX
Human Development Services Office 45, XIII
Immigration and Naturalization Service 8, I
Indian Affairs, Bureau of 25, I
Indian Arts and Crafts Board 25, II
Information Agency, United States 22, V; 48, 19
Information Resources Management, Office of, Agriculture Department
7, XXVII
Information Security Oversight Office 32, XX
Inspector General, Office of, Agriculture Department 7, XXVI
Inspector General, Office of, Health and Human Services Department
42, V
Inspector General, Office of, Housing and Urban Development
Department 24, XII
Inter-American Foundation 22, X
Intergovernmental Relations, Advisory Commission on 5, VII
Interior Department
Endangered Species Committee 50, IV
Federal Acquisition Regulation 48, 14
Federal Property Management Regulations System 41, 114
Fish and Wildlife Service, United States 50, I, IV
Geological Survey 30, IV
Indian Affairs, Bureau of 25, I
Indian Arts and Crafts Board 25, II
Land Management Bureau 43, II
Minerals Management Service 30, II
Mines, Bureau of 30, VI
National Park Service 36, I
Reclamation Bureau 43, I
Secretary of the Interior, Office of 43, Subtitle A
Surface Mining and Reclamation Appeals, Board of 30, III
Surface Mining Reclamation and Enforcement, Office of 30, VII
United States Fish and Wildlife Service 50, I, IV
Internal Revenue Service 26, I
International Boundary and Water Commission, United States and Mexico
22, XI
International Cooperation and Development Office, Department of
Agriculture 7, XXII
International Development, Agency for 22, II
International Development Cooperation Agency 22, XII
International Development, Agency for 22, II
Overseas Private Investment Corporation 22, VII
International Joint Commission, United States and Canada 22, IV
International Organizations Employees Loyalty Board 5, V
International Regulatory Agencies (Fishing and Whaling) 50, III
International Trade Administration 15, III; 19, III
International Trade Commission, United States 19, II
Interstate Commerce Commission 49, X
Japan-United States Friendship Commission 22, XVI
Joint Board for the Enrollment of Actuaries 20, VIII
Justice Department 28, I; 41, 128
Drug Enforcement Administration 21, II
Federal Acquisition Regulation 48, 28
Federal Claims Collection Standards 4, II
Federal Prison Industries, Inc. 28, III
Foreign Claims Settlement Commission of the United States 45, V
Immigration and Naturalization Service 8, I
Offices of Independent Counsel 28, VI
Prisons, Bureau of 28, V
Labor Department
Benefits Review Board 20, VII
Employees' Compensation Appeals Board 20, IV
Employment and Training Administration 20, V
Employment Standards Administration 20, VI
Federal Acquisition Regulation 48, 29
Federal Contract Compliance Programs, Office of 41, 60
Federal Procurement Regulations System 41, 50
Labor-Management Relations and Cooperative Programs, Bureau of 29, II
Labor-Management Standards, Office of 29, IV
Mine Safety and Health Administration 30, I
Occupational Safety and Health Administration 29, XVII
Pension and Welfare Benefits Administration 29, XXV
Public Contracts 41, 50
Secretary of Labor, Office of 29, Subtitle A
Veterans' Employment and Training, Office of the Assistant Secretary
for 41, 61; 20, IX
Wage and Hour Division 29, V
Workers' Compensation Programs, Office of 20, I
Labor-Management Relations and Cooperative Programs, Bureau of 29, II
Labor-Management Standards, Office of 29, IV
Land Management, Bureau of 43, II
Legal Services Corporation 45, XVI
Library of Congress 36, VII
Copyright Office 37, II
Management and Budget, Office of 5, III; 48, 99
Marine Mammal Commission 50, V
Maritime Administration 46, II
Merit Systems Protection Board 5, II
Micronesian Status Negotiations, Office for 32, XXVII
Mine Safety and Health Administration 30, I
Minerals Management Service 30, II
Mines, Bureau of 30, VI
Minority Business Development Agency 15, XIV
Miscellaneous Agencies 1, IV
Monetary Offices 31, I
Mortgage Insurance and Loan Programs Under the Emergency Homeowners'
Relief Act, Department of Housing and Urban Development 24, XV
National Aeronautics and Space Administration 14, V; 48, 18
National Agricultural Library 7, XLI
National Agricultural Statistics Service 7, XXXVI
National Archives and Records Administration 36, XII
National Bureau of Standards 15, II
National Capital Planning Commission 1, IV
National Commission for Employment Policy 1, IV
National Commission on Libraries and Information Science 45, XVII
National Credit Union Administration 12, VII
National Foundation on the Arts and the Humanities 45, XI
National Highway Traffic Safety Administration 23, II, III; 49, V
National Indian Gaming Commission 25, III
National Institute of Standards and Technology 15, II
National Labor Relations Board 29, I
National Marine Fisheries Service 50, II, IV
National Mediation Board 29, X
National Oceanic and Atmospheric Administration 15, IX; 50, II, III,
IV, VI
National Park Service 36, I
National Railroad Adjustment Board 29, III
National Railroad Passenger Corporation (AMTRAK) 49, VII
National Science Foundation 45, VI; 48, 25
National Security Council 32, XXI
National Security Council and Office of Science and Technology Policy
47, II
National Telecommunications and Information Administration 15, XXIII;
47, III
National Transportation Safety Board 49, VIII
Navy Department 32, VI; 48, 52
Neighborhood Reinvestment Corporation 24, XXV
Nuclear Regulatory Commission 10, I
Occupational Safety and Health Administration 29, XVII
Occupational Safety and Health Review Commission 29, XX
Office of Independent Counsel 28, VII
Office of Navajo and Hopi Indian Relocation 25, IV
Offices of Independent Counsel, Department of Justice 28, VI
Operations Office, Department of Agriculture 7, XXVIII
Overseas Private Investment Corporation 22, VII
Oversight Board 12, XV
Packers and Stockyards Administration 9, II
Panama Canal Commission 48, 35
Panama Canal Regulations 35, I
Patent and Trademark Office 37, I
Payment of Expenses Connected With the Death of Certain Employees 41,
303
Peace Corps 22, III
Pennsylvania Avenue Development Corporation 36, IX
Pension and Welfare Benefits Administration, Department of Labor 29,
XXV
Pension Benefit Guaranty Corporation 29, XXVI
Personnel Management, Office of 5, I; 45, VIII; 48, 17
Federal Employees Health Benefits Acquisition Regulation 48, 16
Postal Rate Commission 39, III
Postal Service, United States 39, I
Postsecondary Education, Office of 34, VI
President's Commission on White House Fellowships 1, IV
Presidential Documents 3
Prisons, Bureau of 28, V
Productivity, Technology and Innovation, Assistant Secretary
(Commerce) 37, IV
Property Management Regulations System, Federal 41, Subtitle C
Public Contracts, Department of Labor 41, 50
Public Health Service 42, I
Railroad Retirement Board 20, II
Reclamation Bureau 43, I
Reduction in Meeting and Training Allowance Payments 41, 304
Refugee Resettlement, Office of 45, IV
Regional Action Planning Commissions 13, V
Relocation Allowances 41, 302
Research and Special Programs Administration 49, I
Resolution Trust Corporation 12, XVI
Rural Electrification Administration 7, XVII
Rural Telephone Bank 7, XVI
Saint Lawrence Seaway Development Corporation 33, IV
Science and Technology Policy, Office of 32, XXIV
Science and Technology Policy, Office of, and National Security
Council 47, II
Secret Service 31, IV
Securities and Exchange Commission 17, II
Selective Service System 32, XVI
Small Business Administration 13, I; 48, 22
Smithsonian Institution 36, V
Social Security Administration 20, III; 45, IV
Soil Conservation Service 7, VI
Solar Energy and Energy Conservation Bank, Department of Housing and
Urban Development 24, XI
Soldiers' and Airmen's Home, United States 5, XI
Special Counsel, Office of 5, VIII
Special Education and Rehabilitative Services, Office of 34, III
State Department 22, I
Federal Acquisition Regulation 48, 6
Surface Mining and Reclamation Appeals, Board of 30, III
Susquehanna River Basin Commission 18, VIII
Technology Administration 15, XI
Tennessee Valley Authority 18, XIII
Thrift Supervision Office, Department of the Treasury 12, V
Trade Representative, United States, Office of 15, XX
Transportation, Department of 44, IV
Coast Guard 33, I; 46, I, III; 49, IV
Commercial Space Transportation, Office of 14, III
Contract Appeals Board 48, 63
Federal Acquisition Regulation 48, 12
Federal Aviation Administration 14, I
Federal Highway Administration 23, I, II; 49, III
Federal Railroad Administration 49, II
Maritime Administration 46, II
National Highway Traffic Safety Administration 23, II, III; 49, V
Research and Special Programs Administration 49, I
Saint Lawrence Seaway Development Corporation 33, IV
Secretary of Transportation, Office of 14, II; 49, Subtitle A
Urban Mass Transportation Administration 49, VI
Transportation, Office of, Department of Agriculture 7, XXXIII
Travel Allowance 41, 301
Travel and Tourism Administration, United States 15, XII
Treasury Department 17, IV
Alcohol, Tobacco and Firearms, Bureau of 27, I
Comptroller of the Currency 12, I
Customs Service, United States 19, I
Engraving and Printing, Bureau of 31, VI
Federal Acquisition Regulation 48, 10
Federal Law Enforcement Training Center 31, VII
Fiscal Service 31, II
Foreign Assets Control, Office of 31, V
Internal Revenue Service 26, I
Monetary Offices 31, I
Secret Service 31, IV
Secretary of the Treasury, Office of 31, Subtitle A
Thrift Supervision Office 12, V
United States Customs Service 19, I
Truman, Harry S. Scholarship Foundation 45, XVIII
Under Secretary for Technology, Department of Commerce 37, V
United States and Canada, International Joint Commission 22, IV
United States Arms Control and Disarmament Agency 22, VI
United States Customs Service 19, I
United States Fish and Wildlife Service 50, I, IV
United States Information Agency 22, V; 48, 19
United States International Development Cooperation Agency 22, XII
United States International Trade Commission 19, II
United States Postal Service 39, I
United States Soldiers' and Airmen's Home 5, XI
United States Trade Representative, Office of 15, XX
United States Travel and Tourism Adminstration 15, XII
Urban Mass Transportation Administration 49, VI
Veterans Affairs Department 38, I; 48, 8
Veterans' Employment and Training, Office of the Assistant Secretary
for 41, 61; 20, IX
Vice President of the United States, Office of 32, XXVIII
Vocational and Adult Education, Office of 34, IV
Wage and Hour Division 29, V
Water Resources Council 18, VI
Workers' Compensation Programs, Office of 20, I
World Agriculture Outlook Board 7, XXXVIII
24 CFR 600.425 24 CFR (4-1-92 Edition)
24 CFR 600.425 List of CFR Sections Affected
24 CFR 600.425 List of CFR Sections Affected
All changes in this volume of the Code of Federal Regulations which
were made by documents published in the Federal Register since January
1, 1986, are enumerated in the following list. Entries indicate the
nature of the changes effected. Page numbers refer to Federal Register
pages. The user should consult the entries for chapters and parts as
well as sections for revisions.
For the period before January 1, 1986, see the ''List of CFR Sections
Affected, 1949-1963, 1964-1972, and 1973-1985'' published in seven
separate volumes.
24 CFR 600.425 1986
24 CFR
51 FR
Page
Chapter V
511.11 (h) added (effective date pending) 43302
511.30 (d)(1) revised (effective date pending) 28705
Eff. 10-3-86 31764
511.31 Revised 20221
511.32 Eff. 3-1-86 7439
511.33 (b) revised 12701
(c) revised (effective date pending) 28705
Eff. 10-3-86 31764
511.50 Revised (effective date pending) 28705
Eff. 10-3-86 31764
511.73 (b) revision confirmed (effective date pending) 30480
Eff. 10-8-86 37567
570.460 (d) added 16021
570.496 (g) revised (effective date pending) 30480
Eff. 10-8-86 37567
570.509 (b) revision confirmed (effective date pending) 30480
Eff. 10-8-86 37567
570.512 (b)(1) introductory text and (i), (3), (g), and (h) revised
(effective date pending) 30480
Eff. 10-8-86 37567
571.602 (a) amended 6913
571.607 Eff. 3-1-86 7439
24 CFR 600.425 1987
24 CFR
52 FR
Page
Chapter V
510.52 Revised 3613
510.410 Added 4881
511.11 Eff. 3-2-87 3795
(f) revised 4883
(f)(3)(iii)(B) corrected 11598
511.32 Suspended 11467
511.33 Heading and (b) revised 25595
570.202 (b)(7)(iv) 4884
570.303 (g) revised; (h) added 4884
570.457 Revised 3614
570.458 (c)(14(ix)(I) revised 3615
(c)(14)(ix)(N) added 4884
570.460 (d) revised; 4-6-87 6972
570.461 (g) added 4884
570.608 Revised 4884
570.701 (g) added 6141
570.703 (d) and (g)(3) introductory text and (i) revised; (h) added
6141
571.3 Revised 4900
571.302 (a)(3) added; (c) revised 4900
571.303 Redesignated as 571.302; new 571.303 added 4900
571.304 Redesignated as 571.308 4900
571.305 Added 4901
571.306 Added 4901
571.307 Redesignated from 571.303 4900
571.308 Redesignated from 371.304 4900
575 Added (effective date pending) 38869
Eff. 12-2-87 44861
590.11 (d)(6) revised 4886
24 CFR 600.425 1988
24 CFR
53 FR
Page
Chapter V
510.34 Removed (effective date pending) 43866
510.36 Removed (effective date pending) 43866
510.410 (c)(1) amended; (c)(2) revised 20800
511 Authority citation revised 28991
511.1 Revised; interim 25466
Revised (effective date pending) 34411
Eff. 10-6-88 40221
Regulation at 53 FR 25466 confirmed 49139
511.2 Amended (effective date pending) 34411
Eff. 10-6-88 40221
511.3 Revised; interim 25466
Regulation at 53 FR 25466 confirmed (effective date pending) 49139
511.4 Revised; interim 25467
Regulation at 53 FR 25467 confirmed (effective date pending) 49139
511.10 (e)(2) and (k) revised; interim 25467
(e)(2)(i)(D) corrected 28115
Regulation at 53 FR 25467 confirmed (effective date pending) 49139
511.11 (c) revised; eff. 10-1-88 8057
511.11 (f)(3)(i) amended; (f)(3)(ii) revised 20800
511.20 (b)(4) revised; interim 25468
(b) (3), (6), (10) and (13) revised (effective date pending) 34411
Eff. 10-6-88 40221
Regulation at 53 FR 25468 confirmed 49139
511.33 (c) amended; interim 25468
Heading and (b) revised 28991
Regulation at 53 FR 25468 confirmed 49139
511.40 (Subpart E) Revised 34411
511.50 Existing text designated as (a); new (a) amended; (b) added;
interim 25468
Regulation at 53 FR 25468 confirmed 49139
511.51 (a) and (b) revised; interim 25468
Regulation at 53 FR 25468 confirmed 49139
511.74 Revised; interim 25468
Regulation at 53 FR 25486 confirmed 49139
511.76 Added; eff. 10-1-88 8057
570 Authority citation revised 31239, 34437
Funding schedule 44187
570.1 -- 570.5 (Subpart A) Revised (effective date pending) 34437
Eff. 10-6-88 40221
570.3 (j), (v)(3)(i), (w) and (x) corrected 41330
570.4 (e) revised; eff. 10-1-88 8058
570.200 -- 570.208 (Subpart C) Revised (effective date pending) 34439
Eff. 10-6-88 40221
570.200 (d)(2) and (f)(1)(ii) revised; eff. 10-1-88 8058
570.200 (j)(2) flush text following (vii) corrected 41330
570.201 (b) revised; eff. 10-1-88 8058
570.201 (i) revised; interim (effective date pending) 31239
Eff. 10-6-88 40221
570.202 (b)(6) and (d) corrected 41330
570.206 (c) and (g) introductory text, (3) and (4) corrected 41330
570.207 (b)(2)(ii) corrected 41330
570.208 (a)(3)(i)(A) and (d)(1) corrected 41330
570.300 -- 570.308 (Subpart D) Revised (effective date pending) 34449
Eff. 10-6-88 40221
570.301 (b)(1)(i) corrected 41330
570.303 (h) redesignated as (i); new (h) added; interim (effective
date pending) 31239
Eff. 10-6-88 40221
(h) corrected 41330
570.402 (f)(4)(ii) revised; eff. 10-1-88 8058
570.403 (i)(1) revised; eff. 10-1-88 8058
570.403 (i)(2)(i) amended; interim (effective date pending) 31239
Eff. 10-6-88 40221
570.451 (m) through (p) added (effective date pending) 33028
Eff. 10-6-88 40221
570.452 (c)(2), (d)(1)(ii) and (2)(ii), and (e) revised;
(d)(1)(ii)(E) added (effective date pending) 33028
Eff. 10-6-88 40221
570.455 (c) and (d) added (effective date pending) 33028
Eff. 10-6-88 40221
570.456 (a) revised (effective date pending) 33028
Eff. 10-6-88 40221
570.457 Revised; interim (effective date pending) 31239
Eff. 10-6-88 40221
570.458 (c)(1) and (14)(ix) (L) and (M) revised; eff. 10-1-88 8058
570.458 (c)(14)(ix)(I) revised; interim (effective date pending)
31240
Eff. 10-6-88 40221
(c)(14)(ix)(I) revised; (c)(14)(xvi) and (xvii) added (effective
date pending) 33029
Eff. 10-6-88 40221
570.459 Revised (effective date pending) 33029
Eff. 10-6-88 40221
570.460 (a) revised; (c) (1) through (5) redesignated as (c) (4)
through (8); (c) (1), (2), and (3) added; (d) removed (effective date
pending) 33030
Eff. 10-6-88 40221
570.461 (e) revised (effective date pending) 33031
Eff. 10-6-88 40221
570.464 Revised; eff. 10-1-88 8058
570.467 Added (effective date pending) 52415
570.496a Added; interim (effective date pending) 31240
Eff. 10-6-88 40221
570.500 -- 570.513 (Subpart J) Revised; eff. 10-1-88 8058
570.500 (a)(2) amended 41331
570.503 (b)(8)(i) amended 41331
570.505 (a)(1) amended 41331
570.506 Revised (effective date pending) 34454
Eff. 10-6-88 40221
(b) introductory text and (2)(ii) and (g)(5) corrected 41330
570.507 Revised (effective date pending) 34456
Eff. 10-6-88 40221
570.600 -- 570.612 (Subpart K) Revised (effective date pending) 34456
Eff. 10-6-88 40221
570.606 Revised; interim (effective date pending) 31243
Eff. 10-6-88 40221
(b)(1)(iii)(B) and (d) corrected 41330
570.608 (c)(2) amended; (c)(3) revised 20801
(c) introductory text and (2) corrected 41330
570.609 Corrected 41330
570.610 Revised; eff. 10-1-88 8063
570.610 Heading correctly revised 41330
570.611 (a) revised, eff. 10-1-88 8063
570.611 (a)(2) corrected 41330
570.700 -- 570.706 (Subpart M) Revised (effective date pending) 34464
Eff. 10-6-88 40221
570.702 (f) added; interim (effective date pending) 31245
Eff. 10-6-88 40221
570.801 (c)(2) revised; eff. 10-1-88 8064
570.804 (b)(7)(i) revised; eff. 10-1-88 8064
570.900 -- 570.913 (Subpart O) Revised (effective date pending) 34466
Eff. 10-6-88 40221
570.900 (a) revised; interim (effective date pending) 31246
Eff. 10-6-88 40221
570.904 (c)(2)(iv) corrected 41330
570.905 (b) revised; eff. 10-1-88 8064
570.906 Removed; eff. 10-1-88 8064
570.907 (a) revised; eff. 10-1-88 8064
571.502 (e) revised; eff. 10-1-88 8064
571.503 (d)(2)(iii) and (3) revised; eff. 10-1-88 8064
571.607 (a) (1) and (2) revised; eff. 10-1-88 8064
575 Heading and authority citation revised 30193
575.1 (a) revised 30193
575.59 (b) and (e) revised; eff. 10-1-88 8064
575.63 Revised; eff. 10-1-88 8065
576 Added 30193
590.11 (a)(1) revised; eff. 10-1-88 8065
596 Added (effective date pending) 30946
596.302 Revised 48639
596.303 Revised 48639
24 CFR 600.425 1989
24 CFR
54 FR
Page
Chapter V
510.34 Eff. 3-3-89 8321
510.36 Eff. 3-3-89 8321
510.106 Added 39698
511.2 Amended (effective date pending) 47657
Regulation at 54 FR 47657 effective 12-22-89 52795
511.3 Eff. 3-3-89 8321
511.4 Eff. 3-3-89 8321
511.10 Eff. 3-3-89 8321
(c) revised; (effective date pending) 47657
(g)(3) added; (effective date pending) 47658
Regulations at 54 FR 47657 and 47658 effective 12-22-89; OMB number
52795
570 Authority citation revised 31672
570.200 (j)(3)(iv) removed (effective date pending) 47031
Regulation at 54 FR 47031 effective 12-22-89 52794
570.206 (c) revised 37411
570.303 (d)(2) revised 37411
570.410 (c) redesignated as (c)(1); (c)(2) added 31672
570.415 Added 27131
570.456 (c) revised 21169
Effective date corrected 25713
570.458 (c)(14)(xviii) added 21171
Effective date corrected 25713
570.459 (e) (1), (3), (8) introductory text, (10), (11) and (UDAG)
table revised; (e)(8)(ii)(B) undesignated text, (12), and (13) added;
interim 21390
Effective date corrected 25713
Table corrected 27271
Regulation at 53 FR 21390 confirmed 31294
570.467 Eff. 3-3-89 8321
570.601 (b) revised 37411
570.904 (c) introductory text and (1) introductory text revised 37411
576 Revised (effective date pending) 46799
Regulation at 54 FR 46799 effective 12-21-89 52396
576.1 Note added 13061
Note corrected 13978
576.3 Note added 13061
Note corrected 13978
576.21 Note added 13061
Note corrected 13978
Amended (OMB number) 52397
576.23 Note added 13061
Note corrected 13978
576.51 Note added 13061
Note corrected 13978
Amended (OMB number) 52397
576.53 Note added 13061
Note corrected 13978
576.55 Note added 13061
Note corrected 13978
576.73 Note added 13061
Note corrected 13978
576.80 Amended (OMB number) 52397
576.85 Note added 13061
Note corrected 13978
577 Added (effective date pending) 47031
Regulation at 54 FR 47031 effective 12-22-89 52794
577.210 Amended (OMB numbers) 52794
577.220 Amended (OMB numbers) 52794
578 Added (effective date pending) 47043
Regulation at 54 FR 47043 effective 12-22-89 52794
578.210 Amended (OMB numbers) 52794
578.220 Amended (OMB numbers) 52794
579 Added (effective date pending) 46817
Regulation at 54 FR 46817 effective 12-21-89 52397
579.210 Amended (OMB numbers) 52397
590 Revised 23937
590.5 Nomenclature change 39525
24 CFR 600.425 1990
24 CFR
55 FR
Page
Chapter V
510.51 Added 18494
511 Revised 20050
511.10 Amended (OMB number); (e) regulation at 55 FR 20052 eff.
9-6-90 36612
511.15 Amended (OMB number); (c)(7) regulation at 55 FR 20058 eff.
9-6-90 36612
511.20 Amended (OMB number); (b)(5) and (11) regulation at 55 FR
20060 eff. 9-6-90 36612
511.40 Amended (OMB number); regulation at 55 FR 20063 eff. 9-6-90
36612
511.50 Amended (OMB number); (a) regulation at 55 FR 20064 eff.
9-6-90 36612
570.201 (i) revised 29308
570.301 (b)(1)(iv) amended 29308
570.303 (h) revised 29308
570.403 (i)(2) revised 29309
570.410 (f) amended 29309
570.457 Revised 29309
570.458 (c)(14)(ix)(I) amended 29309
570.496 (h) added 18494
570.496a Revised 29309
570.511 Added 32369
570.606 Revised 29312
570.613 Added 18494
570.702 (f) revised 29316
577.10 Added 34154
577.135 (c) revised 1164
578.10 Added 34154
578.135 (c) revised 1164
579.10 Added 34155
24 CFR 600.425 1991
24 CFR
56 FR
Page
Chapter V
570 Authority citation revised 41938, 56126, 56906
570.1 (b) amended 56126
570.3 Amended 56126
570.205 (a)(3)(i) amended 56127
570.301 (b)(1)(iv) and (d) amended 56127
570.303 (f) and (l) amended 56127
570.304 (a)(3) amended 56127
570.306 Revised 56127
570.307 (b) and (d) amended 56127
570.400 -- 570.415 (Subpart E) Heading revised 18968, 41938
570.400 (h) added 18968
570.402 Revised 41938
570.403 (b)(1)(i) and (e)(3)(i)(C) amended 56127
570.404 Revised 18968
570.406 Revised 41940
570.407 Removed 41940
570.410 (b) amended 56127
570.423 (c)(2)(ii) amended 56127
570.426 (c)(1) amended 56128
570.430 (c)(1) amended 56128
570.451 (a) amended 56128
570.456 (c)(5)(ii) amended 56128
570.490 (b)(3) amended; (b)(4) added 56128
570.509 (d) revised 56128
570.606 (c)(1)(iii)(G), (iv)(A) and (3)(iv) amended 56128
570.700 -- 570.710 (Subpart M) Revised 56906
571 Authority citation revised 920
571.606 Revised 920
576 Authority citation revised 56128
576.3 Amended 56128
576.31 (Subpart C) Heading revised 56128
576.31 Revised 56128
576.51 (b)(2)(i), (d)(1) and (3) amended 56128
576.61 Heading and (a) revised 56128
576.63 Heading and (a)(1) revised 56129
577.5 Amended 56129
577.135 (c) revised 46961
577.150 (Subpart C) Heading revised 56129
577.150 Revised 56129
577.210 (b)(7) amended 56129
578.5 Amended 56129
578.135 (c) revised 46961
578.150 (Subpart C) Heading revised 56129
578.150 Revised 56129
578.210 (b)(7) amended 56129
579.5 Amended 56129
579.150 (Subpart C) Heading revised 56129
579.150 Revised 56129
579.210 (b)(9) amended 56130
581 Added; interim 23794, 23795
581.3 Effective date pending 23794, 23795
581.13 Added; interim 23794
590.5 Amended 6808
590.7 (b)(2)(v) and (c)(2)(i) revised 6808
590.9 Revised 6808
590.11 (a)(6), (b)(1) and (d)(3)(v) revised 6808
590.15 Revised 6808
590.18 Heading, introductory text, (c) introductory text and (2)
revised; (c)(3) added 6808
590.19 Revised 6809
590.21 Amended 6809
24 CFR 600.425 1992
24 CFR 600.425 1992
24 CFR
57 FR
Page
Chapter V
576.51 (b)(2)(i) corrected 11430
24
Housing and Urban Development
PARTS 500 TO 699
Revised as of April 1, 1992
CONTAINING
A CODIFICATION OF DOCUMENTS
OF GENERAL APPLICABILITY
AND FUTURE EFFECT
AS OF APRIL 1, 1992
With Ancillaries
Published by
the Office of the Federal Register
National Archives and Records
Administration
as a Special Edition of
the Federal Register
Washington, DC 20402-9328
24 CFR 600.425 Table of Contents
Page
Explanation v
Title 24:
Subtitle B -- Regulations Relating to Housing and Urban Development
(Continued):
Chapter V -- Office of Assistant Secretary for Community Planning and
Development, Department of Housing and Urban Development
Chapter VI -- Office of Assistant Secretary for Community Planning
and Development, Department of Housing and Urban Development
Finding Aids:
Table of CFR Titles and Chapters
Alphabetical List of Agencies Appearing in the CFR
List of CFR Sections Affected
24 CFR 600.425 Explanation
The Code of Federal Regulations is a codification of the general and
permanent rules published in the Federal Register by the Executive
departments and agencies of the Federal Government. The Code is divided
into 50 titles which represent broad areas subject to Federal
regulation. Each title is divided into chapters which usually bear the
name of the issuing agency. Each chapter is further subdivided into
parts covering specific regulatory areas.
Each volume of the Code is revised at least once each calendar year
and issued on a quarterly basis approximately as follows:
Title 1 through Title 16 as of January 1
Title 17 through Title 27 as of April 1
Title 28 through Title 41 as of July 1
Title 42 through Title 50 as of October 1
The appropriate revision date is printed on the cover of each volume.
LEGAL STATUS
The contents of the Federal Register are required to be judicially
noticed (44 U.S.C. 1507). The Code of Federal Regulations is prima facie
evidence of the text of the original documents (44 U.S.C. 1510).
HOW TO USE THE CODE OF FEDERAL REGULATIONS
The Code of Federal Regulations is kept up to date by the individual
issues of the Federal Register. These two publications must be used
together to determine the latest version of any given rule.
To determine whether a Code volume has been amended since its
revision date (in this case, April 1, 1992), consult the ''List of CFR
Sections Affected (LSA),'' which is issued monthly, and the ''Cumulative
List of Parts Affected,'' which appears in the Reader Aids section of
the daily Federal Register. These two lists will identify the Federal
Register page number of the latest amendment of any given rule.
EFFECTIVE AND EXPIRATION DATES
Each volume of the Code contains amendments published in the Federal
Register since the last revision of that volume of the Code. Source
citations for the regulations are referred to by volume number and page
number of the Federal Register and date of publication. Publication
dates and effective dates are usually not the same and care must be
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instances where the effective date is beyond the cut-off date for the
Code a note has been inserted to reflect the future effective date. In
those instances where a regulation published in the Federal Register
states a date certain for expiration, an appropriate note will be
inserted following the text.
OMB CONTROL NUMBERS
The Paperwork Reduction Act of 1980 (Pub. L. 96-511) requires Federal
agencies to display an OMB control number with their information
collection request. Many agencies have begun publishing numerous OMB
control numbers as amendments to existing regulations in the CFR. These
OMB numbers are placed as close as possible to the applicable
recordkeeping or reporting requirements.
OBSOLETE PROVISIONS
Provisions that become obsolete before the revision date stated on
the cover of each volume are not carried. Code users may find the text
of provisions in effect on a given date in the past by using the
appropriate numerical list of sections affected. For the period before
January 1, 1986, consult either the List of CFR Sections Affected,
1949-1963, 1964-1972, or 1973-1985, published in seven separate volumes.
For the period beginning January 1, 1986, a ''List of CFR Sections
Affected'' is published at the end of each CFR volume.
CFR INDEXES AND TABULAR GUIDES
A subject index to the Code of Federal Regulations is contained in a
separate volume, revised annually as of January 1, entitled CFR Index
and Finding Aids. This volume contains the Parallel Table of Statutory
Authorities and Agency Rules (Table I), and Acts Requiring Publication
in the Federal Register (Table II). A list of CFR titles, chapters, and
parts and an alphabetical list of agencies publishing in the CFR are
also included in this volume.
An index to the text of ''Title 3 -- The President'' is carried
within that volume.
The Federal Register Index is issued monthly in cumulative form.
This index is based on a consolidation of the ''Contents'' entries in
the daily Federal Register.
A List of CFR Sections Affected (LSA) is published monthly, keyed to
the revision dates of the 50 CFR titles.
REPUBLICATION OF MATERIAL
There are no restrictions on the republication of material appearing
in the Code of Federal Regulations.
INQUIRIES AND SALES
For a summary, legal interpretation, or other explanation of any
regulation in this volume, contact the issuing agency. Inquiries
concerning editing procedures and reference assistance with respect to
the Code of Federal Regulations may be addressed to the Director, Office
of the Federal Register, National Archives and Records Administration,
Washington, DC 20408 (telephone 202-523-3517). All mail order sales are
handled exclusively by the Superintendent of Documents, Attn: New
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be telephoned to the Government Printing Office order desk at
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Martha L. Girard,
Director,
Office of the Federal Register.
April 1, 1992.
24 CFR 600.425 THIS TITLE
Title 24 -- Housing and Urban Development is composed of five
volumes. The first four volumes containing parts 0-199, parts 200-499,
parts 500-699, parts 700-1699, represent the regulations of the
Department of Housing and Urban Development. The fifth volume,
containing part 1700 to end continues with regulations of the Department
of Housing and Urban Development and also includes regulations of the
Neighborhood Reinvestment Corporation. The contents of these volumes
represent all current regulations codified under this title of the CFR
as of April 1, 1992.
For this volume, Ina C. Masters was Chief Editor. The Code of
Federal Regulations publication program is under the direction of
Richard L. Claypoole, assisted by Alomha S. Morris.
24 CFR 0.0 24 CFR Ch. VII (4-1-92 Edition)
24 CFR 0.0 Office of the Secretary, HUD
24 CFR 0.0 Title 24 -- Housing and Urban Development
24 CFR 0.0 (This book contains parts 700 to 1699)
Part
SUBTITLE B -- Regulations Relating to Housing and Urban Development
-- Continued:
chapter vii -- Office of the Secretary, Department of Housing and
Urban Development (Section 8 Housing Assistance Programs and Public and
Indian Housing Programs) 750
chapter viii -- Office of the Assistant Secretary for Housing --
Federal Housing Commissioner, Department of Housing and Urban
Development (Section 8 Housing Assistance Programs and Section 202
Direct Loan Program) 811
chapter ix -- Office of Assistant Secretary for Public and Indian
Housing, Department of Housing and Urban Development 900
Cross References: Office of Thrift Supervision, Department of the
Treasury, 12 CFR chapter V.
Department of Veterans Affairs regulations on assistance to certain
veterans in acquiring specially adapted housing and guaranty of loans on
homes: See Loan Guaranty, 38 CFR part 36.
24 CFR 0.0 Subtitle B -- Regulations Relating
24 CFR 0.0 to Housing and Urban
24 CFR 0.0 Development -- Continued
24 CFR 0.0 24 CFR Ch. VII (4-1-92 Edition)
24 CFR 0.0 Office of the Secretary, HUD
24 CFR 0.0 CHAPTER VII -- OFFICE OF THE SECRETARY, DEPARTMENT OF
HOUSING AND URBAN DEVELOPMENT (SECTION 8 HOUSING ASSISTANCE PROGRAMS AND
PUBLIC AND INDIAN HOUSING PROGRAMS)
Part
Page
700-749 (Reserved)
750 Disclosure and verification of social security numbers and
employer identification numbers by applicants and participants in
certain housing asssistance programs
751-759 (Reserved)
760 Procedures for obtaining wage and claim information about
applicants and participants in HUD's Section 8 and Public Housing
programs from state wage information collection agencies (SWICAs)
761-790 (Reserved)
791 Review of applications for housing assistance and allocations of
housing assistance funds
792-798 (Reserved)
799 Waiver authority
24 CFR 0.0
24 CFR 0.0 24 CFR Ch. VII (4-1-92 Edition)
24 CFR 0.0 Office of the Secretary, HUD
24 CFR 0.0 PARTS 700-749 (RESERVED)
24 CFR 0.0 PART 750 -- DISCLOSURE AND VERIFICATION OF SOCIAL SECURITY NUMBERS AND EMPLOYER IDENTIFICATION NUMBERS BY APPLICANTS AND PARTICIPANTS IN CERTAIN HOUSING ASSISTANCE PROGRAMS
24 CFR 0.0 Subpart A -- General
Sec.
750.1 Summary and purpose.
750.3 Applicability.
750.5 Definitions.
24 CFR 0.0 Subpart B -- Disclosure and Verification of Social Security
and Employer Identification Numbers
750.10 Disclosure and verification of Social Security and Employer
Identification Numbers.
750.15 Penalties for failing to disclose and verify Social Security
and Employer Identification Numbers.
750.20 Limitation on the collection, maintenance, use, and
dissemination of Social Security and Employer Identification Numbers,
and on information derived therefrom.
24 CFR 0.0 Subpart C -- Implementation
750.25 Implementation.
Authority: Sec. 165, Housing and Community Development Act of 1987
(42 U.S.C. 3543); secs. 3, 6, 8, 17, 205, United States Housing Act of
1937 (42 U.S.C. 1437a, 1437d, 1437f, 1437o, 1437(ee)); sec. 202,
Housing Act of 1959 (12 U.S.C. 1701q); sec 7(d), sec. 811, National
Affordable Housing Act (42 U.S.C. 8013), Department of Housing and Urban
Development Act (42 U.S.C. 3535(d)).
Source: 54 FR 39699, Sept. 27, 1989, unless otherwise noted.
24 CFR 0.0 Subpart A -- General
24 CFR 750.1 Summary and purpose.
(a) Summary. (1) This part implements section 165 of the Housing and
Community Development Act of 1987 (42 U.S.C. 3543), as it pertains to
the Section 8 Housing Assistance Payments programs administered by the
Department under 24 CFR chapter VIII, and the Public Housing and the
Indian Housing programs administered under 24 CFR chapter IX.
(2) This part requires applicants that seek to receive, and certain
recipients of, housing assistance under any of the covered programs to
disclose, and to submit documentation to verify, their Social Security
Numbers. Individuals, and certain officials of corporations and other
entities, that seek to participate as private owners in certain covered
programs must disclose and verify their Social Security or Employer
Identification Numbers, as appropriate. The failure of any person or
entity to make the required disclosure and verification constitutes
grounds for denial of eligibility, or termination of assistance or
tenancy (or both), under the progam involved.
(3) Section 165 is implemented for HUD's unassisted mortgage and loan
insurance and coinsurance programs under 24 CFR chapter II, subchapter
B, at 24 CFR part 200, subpart T. The provision is implemented for the
assisted mortgage and loan insurance and related programs administered
by the Department under 24 CFR chapter II, subchapter B, at 24 CFR part
200, subpart U; and for the section 312 Rehabilitation Loan program, at
24 CFR 510.106.
(b) Purpose. The purpose of this part is to enable the Department to
use Social Security and Employer Identification Numbers to help decrease
the incidence of fraud, waste, and abuse in the covered programs.
Specific examples of how the Department may use these Numbers include
(but are not limited to) the following:
(1) Identifying a person or entity in manual or automated records.
(2) Identifying a person or entity during debt collection efforts.
(3) Cross-checking among the Department's automated systems for the
previous or current participation of the person or entity in other
programs.
(4) Identifying persons or entities in the records of other Federal
agencies for the purpose of obtaining information on their eligibility
for, or level of benefits in, the Department's programs.
(5) Identifying persons or entities for the purpose of requesting
information about them from other government or private sources during
audit or investigation.
(6) Confirming the identity of a person or entity with the Social
Security Administration or the Internal Revenue Service.
(7) Ensuring that the person or entity is eligible for the covered
program and that the level of benefits provided to it is appropriate.
(Approved by the Office of Management and Budget under control number
2502-0204)
(54 FR 39699, Sept. 27, 1989, as amended at 56 FR 921, Jan. 9, 1991)
24 CFR 750.3 Applicability.
This part applies to the following housing assistance programs
contained in chapters VIII and IX of this title:
(a) Part 880, section 8 Housing Assistance Payments Program for New
Construction.
(b) Part 881, section 8 Housing Assistance Payments Program for
Substantial Rehabilitation.
(c) Part 882, section 8 Housing Assistance Payments Program for
Housing Certificates and Moderate Rehabilitation.
(d) Part 883, section 8 Housing Assistance Payments Program for State
Housing Agencies.
(e) Part 884, section 8 Housing Assistance Payments Program, New
Construction Set-aside for section 515 Rural Rental Housing Projects.
(f) Part 885, Loans for Housing for the Elderly or Handicapped.
(g) Part 886, section 8 Housing Assistance Payments Program --
Special Allocations (subpart A, Loan Management, and subpart C, Property
Disposition).
(h) Part 887, Housing Vouchers.
(i) Part 889, Supportive Housing for the Elderly.
(j) Part 890, Supportive Housing for Persons with Disabilities.
(k) Part 900, section 23 Housing Assistance Payments Program -- New
Construction and Substantial Rehabilitation.
(l) Part 904, Low Rent Housing Homeownership Opportunities.
(m) Part 905, Indian Housing.
(n) Part 960, Admission to, and Occupancy of Public Housing.
(54 FR 39699, Sept. 27, 1989, as amended at 56 FR 27077, June 12,
1991)
24 CFR 750.5 Definitions.
As used in this part:
Assistance applicant has the following meaning for the programs
referred to in 750.3:
(a) Parts 880, 881, 882, 883, 884, 885, 886, 887, 889, 890 and 900:
A family that seeks rental assistance under the program.
(b) Part 904: A prospective homebuyer under the program.
(c) Part 905: A prospective tenant or homebuyer under the program.
(d) Part 960: A prospective tenant under the program.
Employer Identification Number (EIN) means the taxpayer identifying
number of an individual, trust, estate, partnership, association,
company, or corporation that is assigned pursuant to section 6011(b) of
the Internal Revenue Code of 1986, or corresponding provisions of prior
law, or pursuant to section 6109 of the Code. The EIN has nine digits
separated by a hyphen, as follows: 00-0000000.
Entity applicant means a partnership, corporation, or any other
association or entity that seeks to participate as a private owner in
any of the project-based assistance programs contained in 24 CFR part
880, 881, 882, 884, 885, 886, 889 or 890. Entity applicant does not
include a public entity, such as a PHA or State Housing Finance Agency.
HUD or Department means the United States Department of Housing and
Urban Development.
Individual owner applicant means an individual who seeks to
participate as a private owner in any of the project-based assistance
programs contained in 24 CFR part 880, 881, 882, 884, 885, 886, 889 or
890.
Participant has the following meaning for the programs referred to in
750.3:
(a) Parts 880, 881, 882, 883, 884, 885, 886, 887, 889, 890 and 900:
A family receiving rental assistance under the program.
(b) Part 904: A homebuyer under the program.
(c) Part 905: A tenant or homebuyer under the program.
(d) Part 960: A tenant under the program.
Public housing agency (PHA) means any State, county, municipality, or
other governmental entity or public body (or agency or instrumentality
thereof) that is authorized to engage or assist in the development or
operation of housing for lower income families under 24 CFR chapters
VIII or IX. For purposes of this part, the term includes an Indian
Housing Authority.
Processing entity means the person or entity that is responsible for
making eligibility determinations and any income reexaminations under
any of the programs referred to in 750.3.
Social Security Number (SSN) means the number that is assigned to a
person by the Social Security Administration of the Department of Health
and Human Services, and that identifies the record of the person's
earnings that are reported to the Administration. The SSN has nine
digits separated by hyphens, as follows: 000-00-0000; it does not
include a number with a letter as a suffix that is sued to identify an
auxiliary beneficiary under the Social Security System.
(54 FR 39699, Sept. 27, 1989, as amended at 56 FR 921, Jan. 9, 1991;
56 FR 27077, June 12, 1991)
24 CFR 750.5 Subpart B -- Disclosure and Verification of Social Security and Employer Identification Numbers
24 CFR 750.10 Disclosure and vertification of Social Security and
Employer Identification Numbers.
(a) Disclosure: assistance applicants. Each assistance applicant
must submit the following information to the processing entity when the
applicant's eligibility under the program involved is being determined:
(1)(i) The complete and accurate SSN(s) assigned to the applicant and
to each member of the applicant's household who is at least six years of
age; and
(ii) The documentation referred to in paragraph (f)(1) of this
section to verify each such SSN; or
(2) If the applicant or any member of the applicant's household who
is at least six years of age has not been assigned an SSN, a
certification executed by the individual(s) involved that meets the
requirements of paragraph (j) of this section.
(b) Disclosure: individual owner applicants. Each individual owner
applicant must submit the following information to the processing entity
when the applicant's eligibility under the program involved is being
determined:
(1)(i) The complete and accurate SSN(s) assigned to the applicant and
to each member of the applicant's household who will be obligated to pay
the debt evidenced by the mortgage documents; and
(ii) The documentation referred to in paragraph (f)(1) of this
section to verify the SSN(s); or
(2) If any individual referred to in paragraph (a)(1)(i) of this
section has not been assigned an SSN, a certification executed by the
individual that meets the requirements of paragraph (j) of this section.
(c) Disclosure: certain officials of entity applicants. Each
officer, director, principal stockholder (as defined in HUD
administrative instructions), or other official of an entity applicant
(as specified in HUD administrative instructions) must submit the
following information to the processing entity when the applicant's
eligibility under the program involved is being determined:
(1) The complete and accurate SSN(s) assigned to each such
individual; and
(2) The documentation referred to in paragraph (f)(1) of this section
to verify each SSN.
(d) Disclosure: participants -- (1) Initial disclosure by those who
were participants before November 6, 1989. Each participant whose
initial determination of eligibility under the program involved was
initiated before November 6, 1989, must submit the following information
to the processing entity at the next regularly scheduled income
reexamination for the program involved:
(i)(A) The complete and accurate SSN(s) assigned to the participant
and to each member of the participant's family who is at least six years
of age; and
(B) The documentation referred to in paragraph (f)(1) of this section
to verify each such SSN; or
(ii) If the participant or any member of the participant's household
who is at least six years of age has not been asssigned an SSN, a
certification executed by the individual(s) involved that meets the
requirements of paragraph (j) of this section.
(2) Subsequent disclosure by participants who have made an initial
disclosure under this section. Once a participant has disclosed and
verified SSN(s), or submitted a certification(s) that no SSN(s) has been
assigned, as provided by paragraph (a) (as an applicant) or paragraph
(d)(1) (as a preexisting participant) of this section, the following
rules apply:
(i) If the participant's household adds a new member(s) who is at
least six years of age, the participant must submit to the processing
entity, at the next interim or regularly scheduled income reexamination
that includes the new member(s):
(A) The complete and accurate SSN(s) assigned to each new member and
the documentation referred to in paragraph (f)(1) of this section to
verify the SSN(s) for each new member; or
(B) If the new member(s) has not been assigned an SSN, a
certification executed by the individual(s) involved that meets the
requirements of paragraph (j) of this section.
(ii) If the participant or any member of the participant's household
who is at least six years of age obtains a previously undisclosed SSN,
or has been assigned a new SSN (including any member who is six years of
age or older and has been assigned an SSN, as required by section
6109(e) of the Internal Revenue Code of 1986), the participant must
submit to the processing entity at the next regularly scheduled income
reexamination:
(A) The complete and accurate SSN(s) assigned to the participant or
household member(s) involved; and
(B) The documentation referred to in paragraph (f)(1) of this section
to verify the SSN(s) of each such individual.
(iii) HUD (and in the case of the public housing program, or the
section 8 Certificate, Voucher, or Moderate Rehabilitation program, the
PHA) may specify in administrative instructions additional SSN
disclosure and verification requirements, including the nature of the
disclosure and the verification required, and the time and manner for
making the disclosure and verification.
(e) Disclosure: entity applicants. Each entity applicant must
submit the following information to the processing entity when the
applicant's eligibility under the program involved is being determined:
(1) The complete and accurate (EIN(s) assigned to the applicant; and
(2) The documentation referred to in paragraph (f)(2) of this section
to verify the EIN(s).
(f) Required documentation -- (1) Social Security Numbers. The
documentation necessary to verify the SSN of an individual who is
required to disclose his or her SSN(s) under paragraphs (a) through (d)
of this section is a valid SSN card issued by the Social Security
Administration of the Department of Health and Human Services, or such
other evidence of the SSN, (including one or more alternate documents or
such other substantiation of the SSN) as HUD (and in the case of the
public housing program, or the section 8 Certificate, Voucher, or
Moderate Rehabilitation program, the PHA) may prescribe in
administrative instructions. Examples of such evidence may include:
(i) A State driver's license that displays the SSN of the individual;
and
(ii) If a PHA conducts reexaminations of participants' income by
mail, copies of the documentation required under this paragraph (f)(1).
(2) Employer Indentification Numbers. The documentation necessary to
verify the EIN(s) of an entity applicant that is required to disclose
its EIN(s) under paragraph (e) of this section is the official, written
communication from the IRS assigning the EIN(s) to the entity applicant,
or such other evidence of the EIN(s) (including such substantiation) as
HUD may prescribe in administrative instructions.
(g) Special documentation rules for assistance applicants and
participants -- (1) Certification of inability to meet documentation
requirements. If an individual who is required to disclose his or her
SSN(s) under paragraph (a) (assistance applicants) or paragraph (d)
(participants) of this section is able to disclose the SSN, but cannot
meet the documentation requirements of paragraph (f)(1) of this section,
the assistance applicant or participant (as appropriate) must submit to
the processing entity the individual's SSN(s) and a certification
executed by the individual that the SSN(s) submitted has been assigned
to the individual, but that acceptable documentation to verify the
SSN(s) cannot be provided.
(2) Acceptance or certification by processing entity. Except as
provided by paragraph (h) of this section, the processing entity must
accept the certification referred to in paragraph (g)(1) of this
section, and continue to process the applicant's or participant's
eligibility to participate in the program involved.
(3) Effect on applicants. If the processing entity determines that
the assistance applicant is otherwise eligible to participate in the
program, the applicant may not become a participant in the program,
unless it submits to the processing entity the documentation required
under paragraph (f)(1) of this section within the time period specified
in paragraph (g)(5) of this section. During such period, the applicant
will retain the position that it occupied in the program at the time the
determination of eligibility was made, including (as appropriate) its
place on any waiting list maintained for the program.
(4) Effect on participants. If the processing entity determines that
the participant otherwise continues to be eligible to participate in the
program, participation will continue, provided that the participant
submits to the processing entity the documentation required under
paragraph (f)(1) of this section within the time period specified in
paragraph (g)(5) of this section.
(5) Time for submitting documentation. The time period referred to
in paragraphs (g) (4) and (5) of this section is 60 calendar days from
the date on which the certification referred to in paragraph (g)(1) of
this section is excuted, except that the processing entity may, in its
discertion and in such circumstances as it may permit, extend this
period for up to an additional 60 days, if the individual is at least 62
years of age and is unable to submit the required documentation within
the initial 60-day period.
(h) Rejection of documentation or certification. The processing
entity may reject documentation referred to in paragraph (f) of this
section, or a certification provided under paragraph (a)(2), (b)(2) (d),
or (g)(1) of this section, only for such reasons (including the
timeliness of the submission) as HUD (and in the case of the public
housing program, or the section 8 Certificate, Voucher, or Moderate
Rehabilitation program, the PHA) may prescribe in administrative
instructions.
(i) Information on SSNs and EINs. (1) information regarding SSNs and
SSN cards may be obtained by contacting the local Social Security Office
or consulting the Social Security Administration regulations at 20 CFR
chapter III (see particularly, part 422).
(2) Information regarding EINs may be obtained by contacting the
local office of the Internal Revenue Service or consulting the
appropriate regulations for the Internal Revenue Service.
(j) Form and manner of certifications. The certifications referred
to in paragraph (a)(2), (b)(2), (d), and (g)(1) of this section must be
in the form and manner that HUD (and in the case of the public housing
program, or the section 8 Certificate, Voucher, or Moderate
Rehabilitation program, the PHA) prescribes in administrative
instructions. If an individual who is required to execute a
certification is less than 18 years of age, it must be executed by his
or her parent or guardian, or (in accordance with administrative
instructions issued by HUD and, it the case of the public housing
program, or the section 8 Certificate, Voucher, or Moderate
Rehabilitation program, the PHA) by the individual or another person.
(Approved by the Office of Management and Budget under control number
2502-0204)
24 CFR 750.15 Penalties for failing to disclose and verify Social
Security and Employer Identification Numbers.
(a) Denial of eligibility: assistance applicants and individual
owner applicants. The processing entity must deny the eligibility of an
assistance applicant or of an individual owner applicant in accordance
with the provisions governing the program involved, if the applicant
does not meet the applicable SSN disclosure, documentation and
verification, and certification requirements specified in 750.10.
(b) Denial of eligibility: entity applicants. The processing entity
must deny the eligibility of an entity applicant in accordance with the
provisions governing the program involved; if:
(1) The applicant does not meet the applicable EIN disclosure and
verification requirements specified in 750.10; or
(2) Any of the officials of the entity applicant referred to in
750.10(c) does not meet the applicable SSN disclosure, and documentation
and verification requirements specified in 750.10.
(c) Termination of assistance or tenancy: participants; The
processing entity must terminate the assistance or the tenancy (or both)
of a participant in accordance with the provisions governing the program
involved, if the participant does not meet the applicable SSN
disclosure, documentation and verification, and certification
requirements specified in 750.10.
(d) Cross reference. Individuals should consult the regulations and
administrative instructions for the programs referred to in 750.3 for
further information on the use of SSNs and EINs in determining the
eligibility of applicants, and the continued eligibility of
participants.
(Approved by the Office of Management and Budget under control number
2502-0204)
24 CFR 750.20 Limitations on the collection, maintenance, use, and
dissemination of Social Security and Employer Identification Numbers,
and on information derived therefrom.
The collection, maintenance, use, and dissemination of SSNs and EINs
obtained pursuant to this part, and of any information derived
therefrom, must be conducted, to the extent applicable, in compliance
with the Privacy Act (5 U.S.C. 552a) and all other provisions of
Federal, State, and local law.
(Approved by the Office of Management and Budget under control number
2502-0204)
24 CFR 750.20 Subpart C -- Implementation
24 CFR 750.25 Implementation.
(a) Applicants. The provisions of this part, and the conforming
changes made with respect to the disclosure, documentation and
verification, and use of SSNs and EINs for applicants in the regulations
governing the programs referred to in 750.3, apply to all applicant
eligibility determinations initiated on or after November 6, 1989.
(b) Participants. The provisions of this part, and the conforming
changes made with respect to the disclosure, documentation and
verification, and use of SSNs for participants in the regulations
governing the programs referred to in 750.3, apply to each regularly
scheduled reexamination (and in the circumstances specified in
750.10(d)(2)(i), each interim reexamination) of the income of a
participant initiated by the processing entity on or after November 6,
1989.
(Approved by the Office of Management and Budget under control number
2502-0204)
24 CFR 750.25 PARTS 751-759 (RESERVED)
24 CFR 750.25 PART 760 -- PROCEDURES FOR OBTAINING WAGE AND CLAIM INFORMATION ABOUT APPLICANTS AND PARTICIPANTS IN HUD'S SECTION 8 AND PUBLIC HOUSING PROGRAMS FROM STATE WAGE INFORMATION COLLECTION AGENCIES (SWICAs)
24 CFR 750.25 Subpart A -- General
Sec.
760.1 Summary, purpose, and Federal preemption.
760.3 Applicability.
760.5 Definitions.
24 CFR 750.25 Subpart B -- Conditions Governing Collection and Use of
Information Obtained Pursuant to Consent Forms
760.10 Consent by applicants and participants.
760.15 Penalties for failing to sign consent forms.
760.20 Compliance with the Privacy Act and other requirements.
760.25 Request for wage and claim information from SWICAs and
restrictions on the use of the information.
760.30 Procedures for termination, denial, suspension, or reduction
of assistance based on information obtained from a SWICA.
760.35 Criminal and civil penalties.
24 CFR 750.25 Subpart C -- Implementation
760.40 Effective date of rule.
Authority: Sec. 904, Stewart B. McKinney Homeless Assistance
Amendments Act of 1988 (42 U.S.C. 3544), sec. 3, 6, 8, 205, United
States Housing Act of 1937 (42 U.S.C. 1437a, 1437d, 1437f, 1437ee);
sec. 202, Housing Act of 1959 (12 U.S.C. 1701q); sec. 7(d), Department
of Housing and Urban Development Act (42 U.S.C. 3535(d)).
Source: 56 FR 7532, Feb. 22, 1991, unless otherwise noted.
24 CFR 750.25 Subpart A -- General
24 CFR 760.1 Summary, purpose, and Federal preemption.
(a) Summary. (1) This part implements section 904 of the Stewart B.
McKinney Homeless Assistance Amendments Act of 1988 (''McKinney
Amendments'') as it pertains to the Section 8 Housing Assistance
Payments program and the Public and Indian Housing programs. Section
904 is implemented for the assisted mortgage and loan insurance and
related programs administered by HUD under 24 CFR chapter II, subchapter
B, at 24 CFR part 200, subpart V.
(2) This part requires applicants and participants in the covered
programs to sign consent forms authorizing:
(i) HUD, the PHA, or the owner to verify employee income information;
and
(ii) HUD or the PHA to request a SWICA to release wage and claim
information.
The failure of any person to sign these consent forms constitutes
grounds for denial of eligibility, or termination of assistance or
tenancy (or both), for the covered program.
(3) This part restricts the use of information received by HUD or a
PHA from a SWICA to:
(i) Verifying an applicant's or participant's eligibility for or
level of assistance; or
(ii) In the case of an owner, informing the owner that an applicant's
or participant's eligibility for or level of assistance is uncertain and
needs to be verified.
This part prohibits termination, denial, suspension, or reduction of
assistance without prior independent verification of wage and claim
information obtained from a SWICA. The applicant or participant shall
then be notified of any adverse findings and given an opportunity to
contest them.
(4) This part provides criminal and civil penalties for certain
wrongful or negligent actions under this part.
(b) Purpose. The purpose of this part is to enable HUD and PHAs to
obtain wage and claim information about applicants and participants in
the covered programs through computer matches with SWICAs in order to
verify an applicant's or participant's eligibility for or level of
assistance and help decrease the incidence of fraud, waste, and abuse in
these programs. The procedures covered by this part are intended
primarily to augment current income verification procedures and/or
requirements, and are in no way intended to supplant or otherwise affect
those procedures and/or requirements.
(c) Federal preemption. This part preempts any State law, including
restrictions and penalties, which governs the collection and use of
employee income information and wage and claim information to the extent
it is inconsistent with this part.
24 CFR 760.3 Applicability.
(a) Information to be covered by consent forms. The information
covered by consent forms described in this part involves employee income
information, and wage and claim information from a SWICA. In addition,
consent forms may authorize the collection of other information,
including information which can be obtained under other laws,
regulations, and handbooks. See 24 CFR 813.109(b) and 24 CFR 913.109(b)
for current verification procedures, including requirements regarding
signing and submitting consent forms, for the covered programs.
(b) Programs covered. This part applies to the following housing
assistance programs under chapters VIII and IX of this title:
(1) Part 880, Section 8 Housing Assistance Payments for New
Construction.
(2) Part 881, Section 8 Housing Assistance Payments for Substantial
Rehabilitation.
(3) Part 882 (except Subparts D and E), Section 8 Housing Certificate
Program.
(4) Part 882, Subparts D and E, Section 8 Moderate Rehabilitation
Program.
(5) Part 883, Section 8 Housing Assistance Payments Program for State
Housing Agencies.
(6) Part 884, Section 8 Housing Assistance Payments Program, New
Construction Set-aside for Section 515 Rural Rental Housing Projects.
(7) Part 885, Loans for Housing for the Elderly or Handicapped.
(8) Part 886, Section 8 Housing Assistance Program Special
Allocations (subpart A, Loan Management, and subpart C, Property
Disposition).
(9) Part 887, Housing Vouchers.
(10) Part 900, Section 23 Housing Assistance Payments Program -- New
Construction and Substantial Rehabilitation.
(11) Part 904, Low Income Housing Homeownership Opportunities.
(12) Part 905, Indian Housing.
(13) Part 960, Admission to, and Occupancy of, Public Housing (other
than Indian Housing).
(56 FR 7532, Feb. 22, 1991; 56 FR 11510, Mar. 19, 1991)
24 CFR 760.5 Definitions.
As used in this part:
Applicant means an applicant for assistance under the programs
referred to in 760.3.
Claim information means information regarding:
(a) Whether an individual is receiving, has received, or has applied
for unemployment compensation;
(b) The amount of compensation the individual is receiving or is
entitled to receive; and
(c) The period or periods when, or with respect to which, the
individual actually received such compensation.
Computer match means the automated comparison of data bases
containing records about individuals.
Computer matching agreement means the agreement which describes the
responsibilities and obligations of the parties regarding a computer
match.
Consent form means a consent form or forms approved by HUD to be
signed by applicants and participants for the purpose of obtaining
employee income information from employers and wage and claim
information from a SWICA or other information which can be obtained
under other laws, regulations and handbooks.
Employee income information means all the information known to
current or previous employers which HUD or the processing entity
determines is necessary for purposes of determining an applicant's or
participant's eligibility for or level of assistance in a covered
program.
HUD means the United States Department of Housing and Urban
Development.
Owner means the person or entity (or employee of an owner) that
leases an assisted dwelling unit to an eligible family.
Participant means a family receiving assistance under the programs
referred to in 760.3.
Public Housing Agency (PHA) means any State, county, municipality, or
other governmental entity or public body (or agency or instrumentality
thereof) that is authorized to engage in or assist in the development or
operation of housing for lower income families under 24 CFR Chapters
VIII or IX. The term includes Indian Housing Authorities.
Processing entity means the person or entity that is responsible for
making eligibility determinations and any interim or regularly scheduled
income reexaminations under any of the programs referred to in 760.3.
State Wage Information Collection Agency (SWICA) means the SWICA,
including any Indian tribal agency, receiving quarterly wage reports
from employers in the State (which may be the agency administering the
State's unemployment compensation program), or an alternative system
which has been determined by the Secretary of Labor, to be as effective
and timely in providing employment related income and eligibility
information.
Wage information means information about wages as defined in the
State's unemployment compensation law and includes the Social Security
Number (or numbers, if more than one), name of the employee, quarterly
wages of an employee, and the name, address, State, telephone number,
and (when known) Federal employer identification number of an employer
reporting wages under a State unemployment compensation law.
24 CFR 760.5 Subpart B -- Conditions Governing Collection and Use of Information Obtained Pursuant to Consent Forms
24 CFR 760.10 Consent by applicants and participants.
(a) Required consent by applicants and participants. Each of the
following individuals shall sign one or more consent forms authorizing
HUD, the PHA, or the owner to verify employee income information, and
HUD or the PHA to request a SWICA to release wage and claim information:
(1) Each member of an applicant family who is at least 18 years of
age, including the family head and spouse regardless of age; and
(2) Each member of the participant family who is at least 18 years of
age, including the family head and spouse regardless of age.
(b) Consent authorization: To whom and when -- (1) Consent by
applicants. The applicant shall submit the signed consent forms to the
processing entity when their eligibility under a program referred to in
760.3 is being determined. Applicants shall be responsible for the
signing and submitting of consent forms by each applicable family
member.
(2) Initial consent by participants. If participation for a program
referred to in 760.3 was initiated before the effective date of the
part, participants, including applicable members of their family, shall
sign and submit consent forms at the next regularly scheduled income
reexamination. Participants shall be responsible for the signing and
submitting of consent forms by the family members.
(3) Subsequent consent forms to be signed at the next interim or
regularly scheduled income reexamination -- special cases. Consent
forms are required under the following circumstances:
(i) Where there has been a change in the composition of the
participant's family, any new member of the family 18 years or older
shall sign and submit a consent form at the next interim or regularly
scheduled reexamination;
(ii) When a member of a family turns 18 years of age, that member
shall sign and submit a consent form at the next interim or regularly
scheduled reexamination;
(iii) Once a participant has submitted signed consent forms as an
applicant or as a preexisting participant, subsequent consent forms are
required to be signed and submitted at the next interim or regularly
scheduled income reexamination as required by the PHA or as prescribed
by HUD in administrative instructions.
(c) Consent form requirements. The consent form required by this
section shall contain, at a minimum, provisions authorizing:
(1) HUD and PHAs to obtain from SWICAs any information or materials
necessary to complete or verify the application for participation and/or
to maintain continued assistance under a program referred to in 760.3;
and
(2) HUD, PHAs, or the owner responsible for determining eligibility
for or level of assistance, to verify with previous or current employers
employee income information pertinent to the applicant's or
participant's eligibility for or level of assistance under a program
referred to in 760.3. These requirements may be contained on more than
one consent form.
24 CFR 760.15 Penalties for failing to sign consent forms.
(a) Denial of assistance. The processing entity shall deny admission
of an applicant, in accordance with the provisions governing the program
involved, if the applicant, or any member of the applicant's family,
does not sign and submit the consent form as required in 760.10.
(b) Termination of assistance or tenancy. It shall be considered
grounds for termination of assistance, and (if provided by the
individual program covered by this part) the tenancy of a participant,
in accordance with the provisions governing the program involved, if the
participant, or any member of the participant's family, fails to sign
and submit the consent forms as required in 760.10.
(c) Cross references. Individuals should consult the regulations and
administrative instructions for the programs referred to in 760.3 for
further information on the use of employee income information and wage
and claim information in determining the eligibility of applicants and
the continued eligibility of participants.
24 CFR 760.20 Compliance with the Privacy Act and other requirements.
(a) Compliance with the Privacy Act. The collection, maintenance,
use, and dissemination of employee income information and wage and claim
information under this part shall be conducted, to the extent
applicable, in compliance with the Privacy Act (5 U.S.C. 552a) and all
other provisions of Federal, State, and local law.
(b) Privacy Act Notice. All applicants shall be provided with a
Privacy Act notice at the time of application. All participants shall
be provided with a Privacy Act notice at each annual income
recertification.
24 CFR 760.25 Request for wage and claim information from SWICAs and
restrictions on the use of the information.
(a) Information available from SWICA -- to whom and what. HUD or the
PHA may, after signed consent forms have been submitted to the
processing entity by an applicant or participant, request wage and claim
information from a SWICA. Where HUD is to conduct the computer match
with a SWICA, the processing entity shall certify to HUD that the
applicable applicants and participants have signed consent forms meeting
the requirements of 760.10(c) and have received a Privacy Act Notice as
required by 760.20(b). Where the PHA is to conduct the computer match
with a SWICA, the PHA shall certify to the SWICA that the applicable
applicants and participants have signed consent forms meeting the
requirements of 760.10(c). Regulations prescribed by the Secretary of
Labor govern how often and in what form information may be disclosed by
a SWICA. Wage and claim information will generally be obtained through
computer matching agreements between HUD or a PHA and a SWICA, as
described in paragraph (c) of this section.
(b) Restrictions on use of wage and claim information obtained from
SWICA. HUD or a PHA may only use wage and claim information obtained
from a SWICA:
(1) To verify an applicant's or participant's eligibility for or
level of assistance; or
(2) In the case of an owner, to inform the owner that an applicant's
or participant's eligibility for or level of assistance is uncertain and
needs to be verified.
(c) Computer matching agreements between PHAs and SWICA. Computer
matching agreements shall specify, among other things, the purpose and
the legal authority for the match, a description of the records to be
matched, a statement regarding disposition of information generated
through the match, a description of the administrative and technical
safeguards to be used in protecting the information obtained through the
match, a description of the use of records, duplication and redisclosure
restrictions, a certification and the amount a SWICA will charge HUD or
a PHA for processing a request.
(Approved by the Office of Management and Budget under control number
2508-0008)
24 CFR 760.30 Procedures for termination, denial, suspension, or
reduction of assistance based on information obtained from a SWICA.
(a) Termination, denial, suspension, or reduction of assistance.
Assistance may be terminated, denied, suspended, or reduced for an
applicant or participant based on wage and claim information obtained
from a SWICA if:
(1) the steps contained in paragraph (b) of this section have been
taken to independently verify wage and claim information relating to --
(i) The amount of the wages or unemployment compensation involved;
(ii) Whether such applicant or participant actually has (or had)
access to such wages or benefits for his or her own use; and
(iii) The period or periods when, or with respect to which, the
applicant or participant actually received the wages or benefits; and
(2) The applicant or participant has been given an opportunity to
contest any adverse findings in accordance with paragraph (c) of this
section.
(b) Procedures for independent verification. Independent
verification may be satisfied by any of the following procedures:
(1) Where a PHA is responsible for determining eligibility for or
level of assistance. (i) Where HUD obtains wage and claim information
from a SWICA, HUD shall compare the information with applicant and
participant information about a family's income provided by the PHA to
HUD. Where the wage and claim information reveals an employer that was
not disclosed by the applicant or participant or where the wage and
claim information differs substantially from the information received
from the applicant or participant or from his or her employer, HUD shall
have the PHA request the undisclosed employer or other employer to
furnish in writing to the PHA any information necessary to establish an
applicant's or participant's eligibility for or level of assistance in a
covered program. PHAs shall not be required to pursue these
verification procedures where the sums of money at issue are too small
to raise an inference of fraud or justify the expense of independent
verification and the procedures related to termination, denial,
suspension, or reduction of assistance. The PHA may also verify the
wage and claim information directly with an applicant or participant.
(ii) Where a PHA obtains wage and claim information from a SWICA, the
PHA shall compare the information with applicant and participant
information about a family's income provided by the applicant or
participant or from his or her employer. Where the wage and claim
information reveals an employer that was not disclosed by the applicant
or participant or where the wage and claim information differs
substantially from the information received from the applicant or
participant or from his or her employer, the PHA shall request the
undisclosed employer or other employer to furnish in writing to the PHA
any information necessary to establish an applicant's or participant's
eligibility for or level of assistance in a covered program. PHAs shall
not be required to pursue these verification procedures where the sums
of money at issue are too small to raise an inference of fraud or
justify the expense of independent verification and the procedures
related to termination, denial, suspension, or reduction of assistance.
The PHA may also verify the wage and claim information directly with an
applicant or participant.
(2) Where an owner is responsible for determining eligibility for or
level of assistance. (i) Upon receiving wage and claim information from
a SWICA, HUD or the PHA, in cases where the PHA is contract
administrator for an owner, shall compare the wage and claim information
with the information about a family's income obtained by the owner from
the applicant or participant or from his or her employer. Where the
wage and claim information reveals an employer that was not disclosed by
the applicant or participant or where the wage and claim information
differs substantially from the information received from the applicant
or participant or from his or her employer, HUD or the PHA, as
applicable, shall request the undisclosed employer or other employer to
furnish in writing to the owner any information HUD or the PHA
determines to be necessary for purposes of having the owner redetermine
an applicant's or participant's eligibility for or level of assistance
in a covered program. Neither HUD nor the PHA shall be required to
contract the employer where the sums of money at issue are too small to
raise an inference of fraud or justify the expense of independent
verification and the procedures related to termination, denial,
suspension, or reduction of assistance. Neither HUD nor the PHA may
disclose wage and claim information obtained from a SWICA directly to an
owner (unless a PHA is the owner).
(ii) Based on the wage and claim information, HUD or the PHA may
inform an owner that an applicant's or participant's eligibility for or
level of assistance is uncertain and needs to be verified. The owner
shall then reverify the applicant's or participant's income information
by checking the accuracy of the information with the employer or
directly with the family. Neither HUD nor the PHA may disclose wage and
claim information obtained from a SWICA directly to an owner (unless a
PHA is the owner).
(c) Opportunity to contest. HUD, the PHA, or the owner shall
promptly notify any applicant or participant in writing of any adverse
findings made on the basis of the information verified in accordance
with paragraph (b) of this section. Where the PHA conducts the computer
match with a SWICA, termination, denial, suspension, or reduction of
assistance shall be carried out in accordance with requirements and
procedures applicable to each individual program, and shall not be
required until the expiration of any notice period provided by the
program's law or regulations. Where HUD conducts the computer match
with a SWICA, termination, denial, suspension, or reduction of
assistance shall be carried out in accordance with requirements and
procedures applicable to each individual program, and shall not be
required until the expiration of any notice period provided by the
program's law or regulations, or 30 days from the date of the notice,
whichever is later. Any determination or redetermination of family
income made on the basis of information verified in accordance with
paragraph (b) of this section shall also be carried out in accordance
with the requirements and procedures applicable to the individual
covered program. The notice required by this subsection shall run
concurrently with any other notice required by any other law,
regulation, or handbook. The applicant or participant shall be given an
opportunity to contest the findings in the same manner as applies to
other information and findings relating to determination of family
income or composition under the applicable housing assistance program.
24 CFR 760.35 Criminal and civil penalties.
(a) Criminal penalties. Any person who knowingly and willfully
requests or obtains under false pretenses any wage and claim information
concerning an applicant or participant from a SWICA pursuant to this
part, or who knowingly and willfully discloses any such information in
any manner to any individual not entitled under any law to receive it,
shall be guilty of a misdemeanor and fined not more than $5,000. The
term ''person'' for purposes of this paragraph shall include an officer
or employee of HUD, an officer or employee of any PHA, and any owner (or
employee of an owner) responsible for determining eligibility for or
level of assistance.
(b) Civil penalties. Any applicant or participant affected by:
(1) A negligent or knowing disclosure of information referred to in
section 904 of the McKinney Amendments or section 303(i) of the Social
Security Act about such person by an officer or employee of any PHA or
owner (or employee of an owner), which disclosure is not authorized by
section 904, section 303(i), or any implementing regulation, or
(2) Any other negligent or knowing action that is inconsistent with
section 904, section 303(i), or any implementing regulation may bring a
civil action for damages and such other relief as may be appropriate
against any officer or employee of any PHA or owner (or employee of an
owner) responsible for any such unauthorized action.
Authorized use of employee income information includes any use of the
information determined by HUD, a PHA, or an owner to be necessary for
determining eligibility for or level of assistance in a covered program
and not prohibited by any Federal or State law. Jurisdiction of such a
case is in the United States district court in the district in which the
affected applicant or participant resides, in which the unauthorized
action occurred, or in which the applicant or participant alleged to be
responsible for the unauthorized action resides. Appropriate relief
that may be ordered by the district court shall include reasonable
attorney fees and other litigation costs.
24 CFR 760.35 Subpart C -- Implementation
24 CFR 760.40 Effective date of rule.
(a) Applicants. The provisions of this part, and the conforming
changes made with respect to consent forms in the regulations governing
the programs referred to in 760.3, apply to all applicant eligibility
determinations initiated on or after the effective date of this rule.
(b) Participants. The provisions of this part, and the conforming
changes made with respect to the execution of income verification
consent forms for participants in the regulations governing the programs
referred to in 760.3, apply to each interim or regularly scheduled
reexamination of the income of a participant initiated by the processing
entity on or after the effective date of the rule.
24 CFR 760.40 PARTS 761-790 (RESERVED)
24 CFR 760.40 PART 791 -- REVIEW OF APPLICATIONS FOR HOUSING ASSISTANCE AND ALLOCATIONS OF HOUSING ASSISTANCE FUNDS
24 CFR 760.40 Subpart A -- General Provisions
Sec.
791.101 Applicability and scope.
791.102 Definitions.
24 CFR 760.40 Subpart B -- Applications for Housing Assistance in Areas
With Housing Assistance Plans
791.201 General.
791.202 Notification of local government.
791.203 Review and comment period.
791.204 Local government response.
791.205 HUD review of applications for housing assistance.
791.206 Notifications of HUD determination. (effective April 8,
1991)
24 CFR 760.40 Subpart C -- Applications for Housing Assistance in Areas
Without Housing Assistance Plans
791.301 General.
791.302 Finding of need for housing assistance.
791.303 Notification of local government.
791.304 Review and comment period.
791.305 HUD review of applications for housing assistance.
24 CFR 760.40 Subpart D -- Allocation of Budget Authority for Housing
Assistance
791.401 General.
791.402 Determination of lower income housing needs.
791.403 Allocation of housing assistance.
791.404 Field Office allocation plan.
791.405 Reallocations of budget authority.
791.406 Competition.
791.407 Headquarters Reserve.
Authority: Sec. 213, Housing and Community Development Act of 1974
(42 U.S.C. 1439); sec. 7(d), Department of Housing and Urban
Development Act (42 U.S.C. 3535(d)).
Source: 43 FR 50641, Oct. 30, 1978, unless otherwise noted.
Redesignated at 49 FR 6714, Feb. 23, 1984.
Editorial Note: For nomenclature changes to this part, see 49 FR
6714, Feb. 23, 1984.
24 CFR 760.40 Subpart A -- General Provisions
Source: 47 FR 24123, June 3, 1982, unless otherwise noted.
Redesignated at 49 FR 6714, Feb. 23, 1984.
24 CFR 791.101 Applicability and scope.
(a) This part describes the roles and responsibilities of HUD and
local governments under section 213 of the Housing and Community
Development Act of 1974 (42 U.S.C. 1437). It applies to the allocation
of budget and loan authority, and the review and approval of
applications for housing assistance under the United States Housing Act
of 1937 (42 U.S.C. 1437-1437q), section 101 of the Housing and Urban
Development Act of 1965 (12 U.S.C. 1701s), and with respect to subpart D
only, section 202 of the Housing Act of 1959 (12 U.S.C. 1710q), except
as follows:
(1) This part does not apply to programs for public housing operating
subsidy, public housing modernization, or rental rehabilitation grant
assistance under sections 9, 14, or 17 of the United States Housing Act
of 1937; and
(2) Subpart D of this part does not apply to the allocation of budget
authority for housing development grant assistance under section 17 of
the U.S. Housing Act of 1937.
(b) HUD and local government reviews of applications for housing
assistance shall be based upon applicable housing assistance plans
(HAPs) or comparable estimates of need for non-HAP areas. The
three-year goals and preferences in the HAP apply to the fiscal year in
which they are initially approved and the two succeeding fiscal years.
(56 FR 9826, Mar. 7, 1991)
24 CFR 791.102 Definitions.
Act. The Housing and Community Development Act of 1974, as amended.
Allocation area. A municipality, county, or group of municipalities
or counties or Indian areas identified by the HUD field office for the
purpose of allocating housing assistance.
Application for housing assistance. The first submission to HUD for
housing assistance under one of the programs identified in 791.101(a).
For the purposes of this part, the term includes an application, a
preliminary proposal, or a proposal, so long as it meets the applicable
program regulations. For the public housing and State agency programs,
the first application identifying a project site will be considered the
application for housing assistance.
Assistant Secretary. The Assistant Secretary for Housing or the
Assistant Secretary for Public and Indian Housing, as appropriate to the
housing assistance under consideration.
Budget authority. The maximum amount authorized by the Congress for
payments over the term of assistance contracts.
Chief executive officer. The elected official or legally designated
official who has the primary responsibility for conducting the
governmental affairs of a unit of general local government. Examples of
the ''chief executive officer'' include: the elected mayor of a
municipality; the elected county executive of a county; the presiding
officer of a county commission or board in a county that has no elected
county executive; the official designated by the governing body of the
local government pursuant to law (e.g., the city manager or city
administrator); and the chairman, governor, chief or president of an
Indian tribe or Alaskan native village.
Field Office Manager. The Manager of a HUD Field Office which has
been delegated the responsibility of allocating housing assistance and
reviewing applications for housing assistance. The term also means the
Regional Administrator of a HUD Regional Office, and references to Field
Offices shall also mean Regional Offices, in cases where the Regional
Office performs Field Office functions in its co-location capacity or
Regional Office jurisdictions are established as allocation areas for
particular housing programs.
Fiscal year. The official operating period of the Federal
government, beginning on October 1 and ending on September 30.
Household type. The three household types are: elderly, small
family, and large family. References to household type shall mean the
household type within the appropriate tenure type.
Housing assistance plan (HAP). A local housing assistance plan
approved by HUD and meeting the requirements of 24 CFR 570.306.
Housing type. The three housing types are: new construction,
rehabilitation, and existing housing.
HUD. The Department of Housing and Urban Development.
Loan authority. The amount authorized by the Congress for HUD to
make direct loans to cover eligible development costs of a Section 202
project.
Local government. Any city, county, town, township, parish, village
or other unit of general local government which is a general purpose
political subdivision of a State or the Commonwealth of Puerto Rico;
Guam, the Commonwealth of the Northern Marianas, the Virgin Islands and
American Samoa, or a general purpose political subdivision thereof; a
combination of such political subdivisions recognized by the Secretary
of HUD: the District of Columbia; the Trust Territory of the Pacific
Islands; Indian tribes, bands, groups and nations, including Alaska
Indians, Aleuts and Eskimos; and any Alaskan native village of the
United States. The term also includes a State or local public body or
agency, community association, or other entity which is approved by HUD
to provide public facilities or services to a new community meeting the
requirements of Title IV of the Housing and Urban Development Act of
1968 (42 U.S.C. 3901) or Title VII of the Housing and Urban Development
Act of 1970 (42 U.S.C. 4501).
Metropolitan area. See MSA.
MSA. A metropolitan statistical area established by the Office of
Management and Budget. The term also includes primary metropolitan
statistical areas (PMSAs), which are the component parts of larger
urbanized areas designated as consolidated metropolitan statistical
areas (CMSAs). Where an MSA is divided among two or more Field Offices,
references to an MSA mean the portion of the MSA within the Field Office
jurisdiction.
Public housing agency. Any State, county, municipality, or other
governmental entity or public body (or agency or instrumentality
thereof) which is authorized to engage in or assist in the development
or operation of housing for lower-income families.
State housing agency. A Statewide agency which qualifies as a public
housing agency and has been notified by HUD under 24 CFR part 883 that
it is authorized to apply for a set-aside or to use the fast-track
procedures of part 883, or both.
Tenure type. The two tenure types are owners and renters.
Urban county. Any county within a metropolitan area which is
authorized under State law to undertake essential community development
and housing assistance activities in its unincorporated areas, and which
meets the other requirements of 24 CFR 570.307 for qualification as an
urban county.
(47 FR 24123, June 3, 1982. Redesignated at 49 FR 6714, Feb. 23,
1984, and amended at 55 FR 9257, March 12, 1990; 56 FR 9826, Mar. 7,
1991)
24 CFR 791.102 Subpart B -- Applications for Housing Assistance in Areas With Housing Assistance Plans
24 CFR 791.201 General.
This subpart establishes the policies and procedures governing
reviews and determinations pursuant to section 213 (a) and (b) of the
Act with respect to applications for housing assistance, under the
programs identified in 791.101(a), to be provided in areas for which a
HAP is applicable. This subpart does not apply to the following
applications for housing assistance, and the field office is not
required to submit these applications for local government review and
comment:
(a) Applications for assistance involving 12 or fewer units in a
single project or development.
(b) Applications for assistance with respect to housing in new
community developments which the Secretary determines is necessary to
meet the housing requirements in the developments.
(c) Applications for assistance with respect to housing financed by
loans or loan guarantees from a State or agency thereof (including loans
which also have Federal mortgage insurance or co-insurance), unless the
local government in which the assistance is to be provided objects in
its HAP to the exemption. Where the local government does not object in
its HAP to the exemption under this paragraph, the policies and
procedures governing reviews, determinations and local government
comments shall be in accordance with subpart C.
(d) Applications amending previously approved applications, which
initially were submitted for local government review and comments, if
the amended application (1) does not increase the number of units by
more than 12, (2) does not cause a change in household type of more than
12 units, and (3) does not change the proposed location.
24 CFR 791.202 Notification of local government.
(a) The field office shall notify the chief executive officer of the
local government having a HAP, no later than ten working days after
receipt (or completion of any preliminary review and determination that
the application is acceptable for further processing), that an
application for housing assistance to be provided in that jurisdiction
has been received and is under consideration.
(1) When the application is for housing assistance in an area which
is covered by more than one HAP (e.g., a municipality which has a HAP
located in a county which also has a HAP covering the municipality), the
field office shall notify each chief executive officer.
(2) When the application is for housing assistance in several
non-overlapping political jurisdictions (e.g., a scattered site
project), the field office shall notify the chief executive officer of
each local government having a HAP. If such application is also for
housing assistance in a jurisdiction for which a HAP is not applicable,
the notification shall also be in accordance with subpart C.
(3) When the application is for housing assistance within an area
covered by an urban county HAP, the field office shall notify the chief
executive officer of the urban county, indicating that comments on HAP
consistency are the responsibility of the urban county. In addition,
the field office shall request the chief executive officer of the
locality in which the housing is to be located to comment, indicating
that the purpose of the request is to encourage coordination between
Federal programs and local planning, but is not required under section
213 of the Act.
(4) For a section 8 existing housing, moderate rehabilitation, or
housing voucher application submitted in accordance with 24 CFR part 882
or part 887, the Field Office shall notify the chief executive officers
of the localities that are identified in the application as:
(i) Primary areas from which households to be assisted under the
existing housing program will be drawn, or
(ii) Primary areas in which units will be rehabilitated under the
moderate rehabilitation program.
(b) The notification to the chief executive officer shall:
(1) Indicate that the field office has received and is considering an
application for housing assistance, identify the housing program, the
housing type, the number of units by bedroom size and household type,
and the proposed location(s).
(2) Indicate whether the number of units in the application, when
taken together with other applications previously approved, would exceed
the three-year household type goals and housing type preferences in the
HAP.
(3) Indicate whether the proposed location is in a general location
identified in the HAP.
(4) Indicate that any objection to the approval of the application
based on inconsistency with the approved HAP must be received within 30
calendar days from the date of the field office letter.
(5) Indicate that, where there is no objection to the approval of the
application despite an inconsistency with the approved HAP, the local
government must submit the additional documentation required under
791.204.
(6) Invite the submission of any other comments which are relevant to
the field office's consideration of the application (e.g., comments on
the project site, whether the project is approvable under local codes
and zoning ordinances, etc.).
(E.O. 12372, July 14, 1982 (47 FR 30959), amended April 8, 1983 (48
FR 15887); sec. 401, Intergovernmental Cooperation Act of 1968, as
amended (31 U.S.C. 6506); sec. 204, Demonstration Cities and
Metropolitan Development Act of 1966, as amended (42 U.S.C. 3334); sec.
7(d), Dept. of Housing and Urban Development Act (42 U.S.C. 3535(d))
(43 FR 50641, Oct. 30, 1978, as amended at 47 FR 24124, June 3, 1982;
48 FR 29220, June 24, 1983. Redesignated at 49 FR 6714, Feb. 23, 1984,
and amended at 56 FR 9827, Mar. 7, 1991)
24 CFR 791.203 Review and comment period.
(a) The chief executive officer shall have a 30-calendar-day comment
period, beginning on the date of the notification letter described in
791.202, to submit a written objection to the field office's approval of
the application on the ground that it is inconsistent with the local
government's HAP, and the reasons for the objection. The field office
manager shall consider the comment period closed for that local
government when the written objection or other comments pursuant to this
subpart are received. In no case shall the field office be obligated to
consider subsequent or revised objections unless the initial response
indicated that additional comments would be provided and such comments
are received prior to the expiration of the 30-day comment period. As
an alternative to this process, the chief executive officer may submit
any comments on the application, with the application at the time it is
submitted to HUD. Such early comment shall state whether such comment
is intended to be the final comment, notwithstanding the 30-day period
otherwise provided under this paragraph.
(b) Applications for housing assistance shall be reviewed for
consistency with the HAP on which the invitation or notification of
funds availability was based. If a HAP was not in effect at the time
that the invitation or notification was issued, the field office shall
not be required to review the applications for consistency with any
subsequently approved HAP. However, where an interim or amended HAP is
approved prior to approval of the applications, the chief executive
officer may indicate in writing that special circumstances require its
consideration in the review of the applications received. The field
office shall make an independent determination of whether consideration
of the interim or amended HAP is in the public interest.
(43 FR 50641, Oct. 30, 1978; 44 FR 3036, Jan. 15, 1979, as amended
at 47 FR 24124, June 3, 1982. Redesignated at 49 FR 6714, Feb. 23,
1984, and amended at 56 FR 9827, Mar. 7, 1991)
24 CFR 791.204 Local government response.
(a) No objection. If the local government has no objection to an
application for housing assistance, the chief executive officer may
provide written notification of this determination during the 30-day
comment period. Where the local government determines that the
application is inconsistent with the approved HAP or is likely to result
in a disproportionate achievement of HAP goals, the chief executive
officer shall submit the following additional documentation during the
30-day comment period:
(1) If the number of units in the application, taken together with
other applications previously approved, would exceed the three-year
household type goals in the HAP by no more than 20 percent, the chief
executive officer shall submit a written statement indicating that:
(i) There is a need for the housing assistance being proposed;
(ii) There is no objection on the part of the local government to the
approval of the application; and
(iii) Where the application is for newly constructed or substantially
rehabilitated housing, there are or will be available sufficient public
facilities and services in the area to serve the housing being proposed.
(2) If the number of units in the application, taken together with
other applications previously approved, would exceed the three-year
household type goals in the HAP by more than 20 percent, the local
government shall submit a HAP amendment increasing the household type
goals to include the proposed project.
(3) If the locality is in the second or third year of its HAP and the
number of units in the application, taken together with other
applications previously approved, would make it unlikely that the
housing assistance provided during the three-year period would be
proportional to the three-year household type goals in the HAP, the
local government shall submit a HAP amendment in accordance with 24 CFR
570.306(e)(3)(vi).
(4) If an application for newly constructed or substantially
rehabilitated units is in a location which is not within the general
locations specified in the HAP, the local government shall submit a HAP
amendment revising the general locations to include the proposed
project.
(b) Objection. If the local government objects to an application for
housing assistance based upon its inconsistency with the approved HAP,
the chief executive officer may submit a written objection to the Field
Office at any time during the 30-day comment period. The objection may
be for one or more of the following reasons:
(1) The proposed number of units, when taken together with other
applications previously approved, would exceed the three-year household
type goals or housing type preferences in the HAP.
(2) The proposed location of newly constructed or substantially
rehabilitated units is not within the general locations specified in the
HAP.
(3) The proposed housing assistance is inconsistent with any other
limiting factors set forth in the HAP.
(c) No response. The local government may choose not to comment with
respect to an application for housing assistance.
(Approved by the Office of Management and Budget under control
numbers 2502-0441 and 2577-0129)
(43 FR 50641, Oct. 30, 1978, as amended at 47 FR 24124, June 3, 1982;
48 FR 29221, June 24, 1983. Redesignated at 49 FR 6714, Feb. 23, 1984,
and amended at 56 FR 9827, Mar. 7, 1991)
24 CFR 791.205 HUD review of applications for housing assistance.
(a) Review period. The field office shall review each application
for housing assistance to determine if it is consistent or inconsistent
with the applicable HAP for the area in which the proposed housing is to
be located. The field office determination shall be completed within 30
calendar days after the close of the comment period specified in
791.203(a) or within 30 calendar days after the receipt of the comments
of the local government, whichever is earlier.
(b) Review process. The field office finding of consistency or
inconsistency shall be based on the information provided in the HAP, the
application for housing assistance, and an analysis of the comments of
the local government, including comments submitted by the chief
executive officer on behalf of the local government.
(1) HUD review when response indicates no objection. The field
office may approve the application unless it makes an independent
determination that it is inconsistent with the applicable HAP. The
field office shall give consideration to other comments provided by the
local government, if any, which are relevant to a determination
concerning approval of the application for housing assistance.
(2) HUD review when objections are received. The field office shall
concur in an objection by the local government unless it makes an
independent determination of consistency, based on substantial evidence,
that the application is consistent with the applicable HAP.
(3) HUD review when no response is received. The field office may
approve the application unless it makes an independent determination
that it is inconsistent with the applicable HAP.
(c) Review criteria. The Field Office shall assure that, to the
maximum extent practicable, an application for housing assistance meets
the housing needs and goals identified in the approved HAP. The Field
Office shall approve only those applications that are consistent with
the following criteria:
(1) The Field Office may not approve an application which, taken
together with other applications previously approved, would:
(i) Exceed the three-year household type goals in the HAP by no more
than 20 percent, unless the chief executive officer of the local
government submits a written statement as specified in 791.204(a)(1),
and approval of the application is necessary to obtain a project of
feasible size, meet an urgent or unforeseen need (e.g., displacement due
to a natural disaster), or use residual budget authority allocated to
that allocation area;
(ii) Exceed the three-year household type goals in the HAP by more
than 20 percent, unless the local government submits, and the Field
Office approves, a HAP amendment increasing the household type goals to
include the proposed project;
(iii) Make it unlikely that the housing assistance provided during
the three-year period would be proportional to the three-year household
type goals in the HAP, unless the locality is in the second or third
year of its HAP and the local government submits and the Field Office
approves a HAP amendment in accordance with 24 CFR 570.306(e)(3)(vi);
or
(iv) Exceed the three-year housing type preferences in the HAP, if
the local government has submitted a written objection in accordance
with 791.204(b).
(2) The Field Office may not approve an application for newly
constructed or substantially rehabilitated units in a location that is
not within the general locations specified in the HAP, unless the local
government submits and the Field Office approves, a HAP amendment
revising the general locations to include the proposed project. Such
amendment may be limited to the specific project site.
(3) The Field Office may approve an application for assistance under
24 CFR part 886 without regard to variations from the three-year
household type goals and housing type preferences in the HAP.
(4) The Field Office may approve an application for section 8
assistance without regard to variations from the three-year goals and
housing type preferences in HAP, where such assistance is used as a
legally necessary substitution or replacement for already assisted
housing.
(5) Notwithstanding the other provisions of this subpart, where the
local government is required to emphasize a particular household type
because it had proportionally underserved that household type in
providing assisted housing under a previous HAP, the Field Office may
not approve an application which exceeds the three-year HAP goals for
other household types until the requirement has been met.
(E.O. 12372, July 14, 1982 (47 FR 30959), amended April 8, 1983 (48
FR 15887); sec. 401, Intergovernmental Cooperation Act of 1968, as
amended (31 U.S.C. 6506); sec. 204 of the Demonstration Cities and
Metropolitan Development Act of 1966, as amended (42 U.S.C. 3334); sec.
7(d), Department of Housing and Urban Development Act (42 U.S.C.
3535(d))
(43 FR 50641, Oct. 30, 1978; 44 FR 3036, Jan. 15, 1979, as amended
at 47 FR 24124, June 3, 1982; 48 FR 29221, June 24, 1983. Redesignated
at 49 FR 6714, Feb. 23, 1984, and amended at 56 FR 9827, Mar. 7, 1991)
24 CFR 791.206 Notifications of HUD determination.
The field office shall notify the chief executive officer and the
applicant in writing of the finding made with respect to the consistency
or inconsistency of the application with the HAP. The notification
shall be made within 30 calendar days after the close of the comment
period indicating the reasons for the determination and, as appropriate,
state that the field office will, or will not, continue to process the
application for housing assistance. In the event an objection is
received during the comment period, this notification shall be made
within 30 calendar days of receipt of the objection.
(43 FR 50641, Oct. 30, 1978. Redesignated at 56 FR 9828, Mar. 7,
1991)
24 CFR 791.206 Subpart C -- Applications for Housing Assistance in Areas Without Housing Assistance Plans
24 CFR 791.301 General.
This subpart establishes the policies and procedures governing
reviews and determinations, pursuant to section 213(c) of the Act, with
respect to applications for housing assistance, under the programs
identified in 791.101(a), to be provided in areas for which a HAP is
not applicable and to HFDA applications where the local government does
not object in its HAP to exemption for these applications (see
791.201(c)).
24 CFR 791.302 Finding of need for housing assistance.
With respect to each application for housing assistance to be
provided in an area which does not have a HAP, the field office is
required to make a determination as to whether there is a need for such
housing and whether there is or will be available in the area public
facilities and services adequate to serve the proposed housing.
(a) The initial determination of need for housing assistance within
an allocation area is made as part of the allocation process in
791.404. In making this determination, the field office shall give
consideration to the contents of any applicable State or areawide
housing plan proposing housing assistance in the area, as well as
generally available data on population, poverty, housing overcrowding,
housing vacancies, amount of substandard housing, or other objectively
measurable conditions pertaining to lower-income housing needs.
(b) Prior to making a determination with regard to a specific
application, the field office shall give the local government in which
the proposed assistance is to be provided an opportunity to provide
comments, during a 30 calendar day period, concerning the need for
housing assistance and the adequacy of public facilities and services.
If the local government finding is negative, it must be accompanied by
supporting evidence.
(43 FR 50641, Oct. 30, 1978, as amended at 47 FR 24125, June 3, 1982.
Redesignated at 49 FR 6714, Feb. 23, 1984)
24 CFR 791.303 Notification of local government.
(a) The field office shall notify the chief executive officer no
later than 10 working days after receipt (or completion of any
preliminary review and determination that the application is acceptable
for further processing) that an application for housing assistance to be
provided in that jurisdiction has been received and is under
consideration.
(1) When the application is for housing assistance in newly
constructed or rehabilitated housing within the overlapping
jurisdictions of more than one local government (e.g., a municipality
which is also within a county), the field office shall notify the chief
executive officer of each local government.
(2) When the application is for housing assistance in newly
constructed or rehabilitated housing within several nonoverlapping
political jurisdictions (e.g., a scattered site project), the field
office shall notify the chief executive officer of each local government
where housing assistance is proposed. If such application is also for
housing assistance in a jurisdiction for which a HAP is applicable,
notification shall also be given in accordance with subpart B.
(3) For a Section 8 existing housing, moderate rehabilitation, or
housing voucher application submitted in accordance with 24 CFR part 882
or part 887, the Field Office shall notify the chief executive officers
of the localities that are identified in the application as:
(i) Primary areas from which households to be assisted under the
existing housing program will be drawn, or
(ii) Primary areas in which units will be rehabilitated under the
moderate rehabilitation program.
(b) The notification to the chief executive officer shall:
(1) Indicate that the field office has received and is considering an
application for housing assistance, identify the housing program, the
housing type, the number of units by bedroom size and household type,
and the proposed location(s).
(2) Invite the submission, within a period of 30 calendar days from
the date of the field office letter, of a statement on behalf of the
local government concerning the need for housing assistance and the
adequacy of public facilities and services and any other comments which
are relevant to a determination by the field office concerning the
proposed housing assistance (e.g., comments on the site; whether the
project is approvable under local codes and zoning ordinances).
(E.O. 12372, July 14, 1982 (47 FR 30959), amended April 8, 1983 (48
FR 15887); sec. 401, Intergovernmental Cooperation Act of 1968, as
amended (31 U.S.C. 6506); sec. 204 of the Demonstration Cities and
Metropolitan Development Act of 1966, as amended (42 U.S.C. 3334); sec.
7(d), Department of Housing and Urban Development Act (42 U.S.C.
3535(d))
(43 FR 50641, Oct. 30, 1978, as amended at 47 FR 24125, June 3, 1982;
48 FR 29221, June 24, 1983. Redesignated at 49 FR 6714, Feb. 23, 1984,
and amended at 56 FR 9828, Mar. 7, 1991)
24 CFR 791.304 Review and comment period.
The chief executive officer shall have a 30-calendar day comment
period, beginning on the date of the notification letter described in
791.303, to submit written comments relevant to a determination by the
field office concerning the approval of an application for housing
assistance. The field office shall consider the comment period closed
when the written comments are received. In no case shall the field
office manager be obligated to consider subsequent or revised comments
unless the initial response indicated that additional comments would be
provided and such comments are received prior to the expiration of the
30-day comment period. As an alternative to this process, the chief
executive officer may submit any comments on the application, with the
application at the time it is submitted to HUD. Such early comment
shall state whether such comment is intended to be the final comment,
notwithstanding the 30-day period otherwise provided under this
paragraph.
(56 FR 9828, Mar. 7, 1991)
24 CFR 791.305 HUD review of applications for housing assistance.
(a) The field office shall not approve an application for housing
assistance prior to either: (1) Receipt of comments pursuant to
791.304, or (2) expiration of the 30-day comment period, whichever
occurs earlier.
(b) In determining whether an application will be approved, the field
office shall consider the comments provided by the local government
including comments submitted by the chief executive officer on behalf of
the local government. The field office shall make an independent
determination as to whether there is a need for housing assistance and
whether facilities and services are adequate before approving the
application.
(c) The field office shall promptly notify both the chief executive
officer and the applicant of the HUD determination with respect to the
approval or disapproval of the application for housing assistance.
(E.O. 12372, July 14, 1982 (47 FR 30959), amended April 8, 1983 (48
FR 15887); sec. 401, Intergovernmental Cooperation Act of 1968, as
amended (31 U.S.C. 6506); sec. 204 of the Demonstration Cities and
Metropolitan Development Act of 1966, as amended (42 U.S.C. 3334); sec.
7(d), Department of Housing and Urban Development Act (42 U.S.C.
3535(d))
(43 FR 50641, Oct. 30, 1978, as amended at 47 FR 24125, June 3, 1982;
48 FR 29221, June 24, 1983. Redesignated at 49 FR 6714, Feb. 23, 1984)
24 CFR 791.305 Subpart D -- Allocation of Budget Authority for Housing
Assistance
Source: 56 FR 9828, Mar. 7, 1991, unless otherwise noted.
24 CFR 791.401 General.
This subpart establishes the procedures for allocating budget
authority under section 213(d) of the Act for the programs identified in
791.101(a). It describes the allocation of budget authority by the
appropriate Assistant Secretary to the Regional Administrators or
directly to the Field Office Managers, by the Regional Administrators to
the Field Office Managers, and by the Field Office Managers to
allocation areas within their jurisdiction. References in this subpart
to allocation of budget authority also apply to loan authority for the
section 202 program; references to budget authority mean (as
appropriate) grant authority for the Public and Indian Housing program.
24 CFR 791.402 Determination of lower income housing needs.
(a) Before budget authority is allocated, the Assistant Secretary for
Policy Development and Research shall determine the relative need for
lower income housing assistance in each HUD Field Office jurisdiction.
This determination shall be based upon data from the most recent,
available decennial census and, where appropriate, upon more recent data
from the Bureau of the Census or other Federal agencies, or from the
American Housing Survey.
(b) Except for paragraph (c) of this section, the factors used to
determine the relative need for assistance shall be based upon the
following criteria:
(1) Population. The renter population;
(2) Poverty. The number of renter households with annual incomes at
or below the poverty level, as defined by the Bureau of the Census;
(3) Housing overcrowding. The number of renter-occupied housing
units with an occupancy ratio of 1.01 or more persons per room;
(4) Housing vacancies. The number of renter housing units that would
be required to maintain vacancies at levels typical of balanced market
conditions;
(5) Substandard housing. The number of housing units built before
1940 and occupied by renter households with annual incomes at or below
the poverty level, as defined by the Bureau of the Census; and,
(6) Other objectively measurable conditions. Data indicating
potential need for rental housing assistance, such as the number of
renter households with incomes below specified levels and paying a gross
rent of more than 30 percent of household income.
(c)(1) For the section 202 elderly program, the data used shall
reflect relevant characteristics of the elderly population. The data
shall use the criteria specified in paragraph (b)(1) and (6) of this
section, as modified to apply specifically to the needs of the elderly
population.
(2) Budget authority for the Indian housing program under 24 CFR part
905 shall be allocated on the basis of the relative housing needs of the
Indian tribal population, as measured by the Bureau of Indian Affairs,
and by data for non-BIA recognized groups served by the Indian housing
program.
(d) Based on the criteria in paragraphs (b) and (c)(1), the Assistant
Secretary for Policy Development and Research shall establish housing
needs factors for each county and independent city in the Field Office
jurisdiction, and shall aggregate the factors into metropolitan and
nonmetropolitan totals for the Field Office. The Field Office total for
each metropolitan and nonmetropolitan factor is then divided by the
respective national total for that factor. The resulting housing needs
ratios under paragraph (b) of this section are then weighted to provide
metropolitan and nonmetropolitan housing needs percentages for each
Field Office, using the following weights: Population, 20 percent;
poverty, 20 percent; housing overcrowding, 10 percent; housing
vacancies, 10 percent; substandard housing, 20 percent; other
objectively measurable conditions, 20 percent. For the section 202
elderly program, the two criteria described in paragraph (c)(1) of this
section are weighted equally.
(e) The Assistant Secretary for Policy Development and Research shall
adjust the housing needs percentages derived in paragraph (d) to reflect
the relative cost of providing housing among the Field Office
jurisdictions.
24 CFR 791.403 Allocation of housing assistance.
(a) The Assistant Secretary for Housing and the Assistant Secretary
for Public and Indian Housing shall confer to determine how the
available budget authority is to be allocated. The total budget
authority available for any fiscal year shall be determined by adding
any available, unreserved budget authority from prior fiscal years to
any newly appropriated budget authority for each housing program. On a
nationwide basis, at least 20 percent, but not more than 25 percent, of
the total budget authority available for any fiscal year, which is
allocated pursuant to paragraph (b)(2) of this section and any amounts
which are retained pursuant to 791.407, shall be allocated for use in
nonmetropolitan areas.
(b) Budget authority available for the fiscal year, except for that
retained pursuant to 791.407, shall be allocated to the Field Offices
as follows:
(1) Budget authority shall be allocated as needed for uses that the
Secretary determines are incapable of geographic allocation by formula,
including --
(i) Amendments of existing contracts, renewal of assistance
contracts, assistance to families that would otherwise lose assistance
due to the decision of the project owner to prepay the project mortgage
or not to renew the assistance contract, assistance to prevent
displacement or to provide replacement housing in connection with the
demolition or disposition of public and Indian housing, assistance in
support of the property disposition and loan management functions of the
Secretary,
(ii) Assistance which is the subject of a line item identification in
the HUD appropriations law, or in the table customarily included in the
Conference Report on the appropriation for the Fiscal Year in which the
funds are to be allocated,
(iii) Section 8 and public housing assistance reserved pursuant to
section 23(i)(4) of the United States Housing Act of 1937, and
(iv) Assistance determined by the Secretary to be necessary in
carrying out the following programs authorized by the Cranston-Gonzalez
National Affordable Housing Act: the Homeownership and Opportunity
Through HOPE Act under title IV and HOPE for Elderly Independence under
section 803.
(2) Budget authority remaining after carrying out allocation steps
outlined in paragraph (b)(1) of this section shall be allocated in
accordance with the housing needs percentages calculated under 791.402
(b), (c), (d), and (e). If the budget authority for a particular
program is insufficient to fund feasible projects, or to promote
meaningful competition, at the Field Office level, authority may be
allocated to the Regional Office with no requirement for suballocation.
Alternatively, where the level of available program resources would
permit meaningful competition at the Field Office level in some Regions
and not in others, the budget authority for the given program may be so
allocated among Field and Regional Offices. HUD may allocate assistance
under this paragraph in such a manner that each State shall receive not
less than one-half of one percent of the amount of funds available for
each program referred to in 791.101(a) in each fiscal year.
(c) At least annually HUD will publish a notice in the Federal
Register informing the public of all allocations under 791.403(b)(2).
24 CFR 791.404 Field Office allocation planning.
(a) General objective. The allocation planning process should
provide for the equitable distribution of available budget authority,
consistent with the relative housing needs of each allocation area
within the Field Office jurisdiction.
(b) Establishing allocation areas. Allocation areas, consisting of
one or more counties or independent cities, shall be established by the
Field Office in accordance with the following criteria:
(1) Each allocation area shall be to the smallest practicable area,
but of sufficient size so that at least three eligible entities are
viable competitors for funds in the allocation area, and so that all
applicable statutory requirements can be met. (It is expected that in
many instances individual MSAs will be established as metropolitan
allocation areas.) For the section 202 program for the elderly, the
allocation area must include sufficient units to promote a meaningful
competition among disparate types of providers of such housing (e.g.,
local as well as national sponsors, minority as well as non-minority
sponsors). The preceding sentence shall not apply to projects acquired
from the Resolution Trust Corporation under section 21A(c) of the
Federal Home Loan Bank Act.
(2) Each allocation area shall also be of sufficient size, in terms
of population and housing need, that the amount of budget authority
being allocated to the area will support at least one feasible program
or project.
(3) In establishing allocation areas, counties and independent cities
within MSAs should not be combined with counties that are not in MSAs.
(c) Determining the amount of budget authority. Where the Field
Office establishes more than one allocation area, it shall determine the
amount of budget authority to be allocated to each allocation area,
based upon a housing needs percentage which represents the needs of that
area relative to the needs of the metropolitan or nonmetropolitan
portion of the Field Office jurisdiction, whichever is appropriate. For
each program, a composite housing needs percentage developed under
791.402 for those counties and independent cities comprising the
allocation area shall be aggregated into allocation area totals.
(d) Planning for the allocation. The Field Office should develop an
allocation plan which reflects the amount of budget authority determined
for each allocation area in paragraph (c). The plan should include a
map or maps clearly showing the allocation areas within the Field Office
jurisdiction. The relative share of budget authority by individual
program type need not be the same for each allocation area, so long as
the total amount of budget authority made available to the allocation
area is not significantly reduced.
24 CFR 791.405 Reallocations of budget authority.
(a) The Field Office shall make every reasonable effort to use the
budget authority made available for each allocation area within such
area. If the Field Office Manager determines that not all of the budget
authority allocated for a particular allocation area is likely to be
used during the fiscal year, the remaining authority may be allocated to
other allocation areas where it is likely to be used during that fiscal
year.
(b) If the Regional Administrator or the Assistant Secretary
determines that not all of the budget authority allocated to a Field
Office is likely to be used during the fiscal year, the remaining
authority may be reallocated to another Field Office where it is likely
to be used during that fiscal year. Only the Assistant Secretary may
reallocate budget authority among Regions. The Assistant Secretary
shall approve reallocations among States.
(c) Any reallocations of budget authority among allocation areas,
Field Offices, or Regions shall be consistent with the assignment of
budget authority for the specific program type and established
set-asides.
(d) Notwithstanding the requirements of paragraphs (a) through (c) of
this section, budget authority shall not be reallocated for use in
another State unless the Field Office Manager, the Regional
Administrator, or the Assistant Secretary has determined that other
allocation areas within the same State cannot use the available
authority during the fiscal year.
24 CFR 791.406 Competition.
(a) All budget authority allocated pursuant to 791.403(b)(2) shall
be reserved and obligated pursuant to a competition. Any such
competition shall be conducted pursuant to specific criteria for the
selection of recipients of assistance. These criteria shall be
contained in a regulation promulgated after notice and public comment
or, to the extent authorized by law, a notice published in the Federal
Register.
(b) This section shall not apply to assistance referred to in
791.403(b)(1) and 791.407.
24 CFR 791.407 Headquarters Reserve.
(a) A portion of the budget authority available for the housing
programs listed in 791.101(a), not to exceed five percent of the total
amount of budget authority available under 791.403(b)(2), may be
retained by the Assistant Secretary for subsequent allocation to
specific areas and communities, and may only be used for:
(1) Unforeseen housing needs resulting from natural and other
disasters, including hurricanes, tornadoes, storms, high water, wind
driven water, tidal waves, tsunamis, earthquakes, volcanic eruptions,
landslides, mudslides, snowstorms, drought, fires, floods, or
explosions, which in the determination of the Secretary cause damage of
sufficient severity and magnitude to warrant Federal housing assistance;
(2) Housing needs resulting from emergencies, as certified by the
Secretary, other than disasters described in paragraph (a)(1) of this
section. Emergency housing needs that can be certified are only those
that result from unpredictable and sudden circumstances causing housing
deprivation (such as physical displacement, loss of Federal rental
assistance, or substandard housing conditions) or causing an unforeseen
and significant increase in lower income housing demand in a housing
market (such as influx of refugees or plant closings);
(3) Housing needs resulting from the settlement of litigation; and
(4) Housing in support of desegregation efforts.
(b) Applications for funds retained under paragraph (a) of this
section shall be made to the Field Office, which will make
recommendations to Headquarters for approval or rejection of the
application. Applications generally will be considered for funding on a
first-come, first-served basis. Specific instructions governing access
to the Headquarters Reserve shall be published by notice in the Federal
Register, as necessary.
(c) Any amounts retained in any fiscal year under paragraph (a) of
this section that are not reserved by the end of such fiscal year shall
remain available for the following fiscal year under the program under
791.101(a) from which the amount was retained. Such amounts shall be
allocated pursuant to 791.403(b)(2).
24 CFR 791.407 PARTS 792-798 (RESERVED)
24 CFR 791.407 PART 799 -- WAIVER AUTHORITY
24 CFR 799.101 Waivers.
(a) Basic provision. Upon determination of good cause, the Secretary
of Housing and Urban Development may, subject to statutory limitations,
waive any provision of this chapter. Each such waiver shall be in
writing and shall be supported by documentation of the pertinent facts
and grounds.
(b) Reservation of authority by the Secretary. The authority under
paragraph (a) of this section is reserved to the Secretary and no
delegation of this waiver authority shall be effective unless executed
subsequent to June 7, 1976, for the Assistant Secretary for Housing --
Federal Housing Commissioner on September 6, 1983, for the Assistant
Secretary for Public and Indian Housing. Authority to waive by either
Assistant Secretary is limited to each Assistant Secretary's respective
programs.
(Sec. 7(d), Department of Housing and Urban Development Act (42
U.S.C. 3535(d))
(49 FR 6715, Feb. 23, 1984)
24 CFR 799.101 24 CFR Ch. VIII (4-1-92 Edition)
24 CFR 799.101 Office of the Assistant Secretary, HUD
24 CFR 799.101 CHAPTER VIII -- OFFICE OF THE ASSISTANT SECRETARY FOR
HOUSING -- FEDERAL HOUSING COMMISSIONER, DEPARTMENT OF HOUSING AND URBAN
DEVELOPMENT (SECTION 8 HOUSING ASSISTANCE PROGRAMS AND SECTION 202
DIRECT LOAN PROGRAM)
Part
Page
800-810 (Reserved)
811 Tax exemption of obligations of public housing agencies and
related amendments
812 Definition of family and other related terms; occupancy by
single persons
813 Definition of income, income limits, rent and reexamination of
family income for the Section 8 housing assistance payments programs and
related programs
842 Pet ownership in housing for the elderly or handicapped
850 Housing development grants
880 Section 8 housing assistance payments program for new
construction
881 Section 8 housing assistance payments program for substantial
rehabilitation
882 Section 8 housing assistance payments program -- existing housing
883 Section 8 housing assistance payments program -- State housing
agencies
884 Section 8 housing assistance payments program, new construction
set-aside for Section 515 rural rental housing projects
885 Loans for housing for the elderly or handicapped
886 Section 8 housing assistance payments program -- special
allocations
887 Housing vouchers
888 Section 8 housing assistance payments program -- fair market
rents and contract rent annual adjustment factors
889 Supportive housing for the elderly
890 Supportive housing for persons with disabilities
892 Public housing agency section 8 fraud recoveries
899 Waiver authority
24 CFR 799.101
24 CFR 799.101 24 CFR Ch. VIII (4-1-92 Edition)
24 CFR 799.101 Office of the Assistant Secretary, HUD
24 CFR 799.101 PARTS 800 -- 810 (RESERVED)
24 CFR 799.101 PART 811 -- TAX EXEMPTION OF OBLIGATIONS OF PUBLIC HOUSING AGENCIES AND RELATED AMENDMENTS
24 CFR 799.101 Subpart A -- Tax Exemption, Under Section 11(b) of the
Act, of Obligations Issued by Public Housing Agencies to Finance Section
8 Projects
Sec.
811.101 Purpose and scope.
811.102 Definitions.
811.103 General.
811.104 Approval of Public Housing Agency (other than agency or
instrumentality PHAS).
811.105 Approval of agency or instrumentality PHA.
811.106 Term of permanent obligations and contract.
811.107 Financing documents and data.
811.108 Amount of permanent obligations, debt service reserve and
mortgage debt service.
811.109 Yield and servicing fee.
811.110 Interim financing.
811.111 Construction inspections.
811.112 Issuance of permanent obligations and escrow.
811.113 Execution of contract.
811.114 Trust indenture provisions.
811.115 Other requirements.
811.116 Approval of obligations as tax-exempt.
811.117 Applicability to tax exemption other than under Section
11(b).
811.118 Tax-exempt financing under Section 17(j) of the Act for
housing development grant projects.
24 CFR 799.101 Subpart B -- Purchase of GNMA Guaranteed Mortgage-Backed
Securities With Tax- Exempt Obligations
811.201 General.
811.202 Definitions.
811.203 Approval of financing agency.
811.204 Financing documents and data.
811.205 Trust indenture, loan agreement and prospectus.
811.206 Amount and maturity of obligations and field office
processing.
811.207 Sale of the obligations.
811.208 Approval of the financing, execution of the agreement and
initial endorsement.
811.209 Approval of obligations as tax-exempt pursuant to Section
11(b).
811.210 Approval where tax exemption is not pursuant Section 11(b).
811.211 Delivery of proceeds and final endorsement.
Authority: Sec. 7(d), Dept. of HUD Act (42 U.S.C. 3535(d)); secs.
3(6), 5(b), 8, 11(b) of the U.S. Housing Act of 1937 (42 U.S.C. 1437a,
1437c, 1437f, and 1437).
Source: 44 FR 12360, Mar. 6, 1979, unless otherwise noted.
Editorial Note: Nomenclature changes affecting this part appear at
49 FR 6714, Feb. 23, 1984.
24 CFR 799.101 Subpart A -- Tax Exemption, Under Section 11(b) of the Act, of Obligations Issued by Public Housing Agencies to Finance Section 8 Projects
24 CFR 811.101 Purpose and scope.
(a) Section 11(b) of the Act provides that: ''Except as provided in
section 5(g), obligations, including interest thereon, issued by public
housing agencies in connection with low-income housing projects shall be
exempt from all taxation now or hereafter imposed by the United States
whether paid by such agencies or by the Secretary. The income derived
by such agencies from such projects shall be exempt from all taxation
now or hereafter imposed by the United States.''
(b) The purpose of this subpart is to provide a basis for determining
tax exemption of obligations issued by public housing agencies pursuant
to Section 11(b) or the U.S. Housing Act of 1937 for Section 8 new
construction or substantial rehabilitation projects (24 CFR parts 880,
881 and 883).
(c) This subpart does not apply to tax exemption pursuant to Section
11(b) for low-income housing projects developed pursuant to 24 CFR parts
905 and 941.
(d) Where good cause, supported by documentation of the pertinent
facts and grounds, is shown, provisions of this subpart, subject to
statutory limitations, may be waived pursuant to 24 CFR part 899.
24 CFR 811.102 Definitions.
(a) Act. The United States Housing Act of 1937 (42 U.S.C. 1437, et
seq.).
(b) Agency or Instrumentality PHA. A not-for-profit private or
public organization that is authorized to engage in or assist in the
development or operation of low-income housing and that has the
relationship to a parent entity PHA required by this subpart.
(c) Agreement. An Agreement to Enter Into Housing Assistance
Payments Contract as defined in the applicable Section 8 regulations.
The form of agreement for projects financed with tax-exempt obligations
shall be amended in accordance with this subpart.
(d) Annual Contributions Contract (ACC). An Annual Contributions
Contract as defined in the applicable Section 8 regulations. The form
of ACC for projects financed with tax-exempt obligations shall be
amended in accordance with this subpart.
(e) Applicable Section 8 Regulations. The provisions of 24 CFR parts
880, 881, or 883 that apply to the project.
(f) Capitalized Interest During Construction. The amount necessary
for debt service payments on the permanent obligations, less anticipated
investment income, during the anticipated escrow period.
(g) Contract. A Housing Assistance Payments Contract as defined in
the applicable Section 8 regulations. The form of contract for projects
financed with tax-exempt obligations shall be amended in accordance with
this subpart.
(h) Cost of issuance. Ordinary, necessary, and reasonable costs in
connection with the issuance of obligations. These costs shall include
attorney fees, rating agency fees, trustee fees, printing costs, bond
counsel fees, feasibility studies (for non-FHA-insured projects only),
consultant fees and other fees or expenses approved by HUD.
(i) Debt service reserve. A fund maintained by the trustee as a
supplemental source of money for the payment of debt service on the
obligations.
(j) Development cost. Ordinary, necessary, and reasonable costs for
planning, land acquisition, demolition, construction or rehabilitation,
equipment, and other items necessary for the development or acquisition
of a low-income housing project, costs of the interim financing and
inspections.
(k) Financing Agency. The PHA (parent entity PHA or agency or
instrumentality PHA) that issues the tax-exempt obligations for
financing of the project.
(l) HUD. The Department of Housing and Urban Development.
(m) Low-income Housing Project. Housing for families and persons of
lower income developed, acquired or assisted by a PHA under Section 8 of
the Act and the improvement of any such housing.
(n) Obligations. Bonds, notes or other evidence of indebtedness that
are issued to provide interim or permanent financing of a low-income
housing project. Pursuant to Section 319(b) of the Housing and
Community Development Act of 1974, the term obligations shall not
include any obligation secured by a mortgage insured under Section
221(d)(3) of the National Housing Act and issued by a public agency as
mortgagor in connection with the financing of a project assisted under
Section 8 of the Act. This exclusion does not apply to a public agency
as mortgagee.
(o) Owner. An owner as defined in the applicable Section 8
regulations.
(p) Parent Entity PHA. Any state, county, municipality or other
governmental entity or public body that is authorized to engage in or
assist in the development or operation of low-income housing and that
has the relationship to an agency or instrumentality PHA required by
this subpart.
(q) Public Housing Agency (PHA). Any state, county, municipality, or
other government entity or public body (or agency or instrumentality
thereof) that is authorized to engage in or assist in the development or
operation of low-income housing.
(r) Servicing fees. The annual costs of servicing the obligations
(including any debt service reserve), including trustee fees, mortgage
servicing fees, PHA expenses in connection with annual reviews,
maintenance of books and accounts, audit expenses, agent fees and other
costs of servicing the obligations.
(s) Trust indenture. A contract setting forth the rights and
obligations of the issuer, bondholders, owner and trustee in connection
with the tax-exempt obligations. The trust indenture may also include
provisions regarding the loan to the owner or these may be set forth in
a separate mortgage.
(t) Trustee. The entity that has legal responsibility under the
trust indenture for disposition of the proceeds of a bond issuance and
servicing of the debt represented by the obligations. The trustee must
be a bank or other financial institution that is legally qualified and
experienced in performing fiduciary responsibilities with respect to the
care and investment of funds of a magnitude comparable to those involved
in the financing.
(u) Yield. That percentage rate at which the present worth of all
payments of principal and interest to be paid on the obligations is
equal to the purchase price.
24 CFR 811.103 General.
(a) In order for obligations to be tax-exempt under this subpart the
obligations must be issued by a PHA in connection with a low-income
housing project approved by HUD under the Act and the applicable Section
8 regulations.
(1) Except as needed for a resident manager or similar requirement,
all dwelling units in a low-income housing project that is to be
financed with obligations issued pursuant to this subpart must be
Section 8 contract units.
(2) A low-income housing project that is to be financed with
obligations issued pursuant to this subpart may include necessary
appurtenances. Such appurtenances may include commerical space not to
exceed 10% of the total net rentable area.
(b) Where the parent entity PHA is not the owner of the project, the
parent entity PHA or other PHA approvable under 811.104 must agree to
administer the contract pursuant to an ACC with HUD, and such a PHA must
agree that in the event there is a default under the contract it will
pursue all available remedies to achieve correction of the default,
including operation and possession of the project, if called upon by HUD
to do so. If the field office finds that the PHA does not have the
capacity to perform these functions, the Assistant Secretary may approve
alternative contractual arrangements for performing these functions.
24 CFR 811.104 Approval of Public Housing Agencies (other than agency
or instrumentality PHAS).
(a) (1) An application to the field office for approval as a Public
Housing Agency, other than an agency or instrumentality PHA, for
purposes of this subpart shall be supported by evidence satisfactory to
HUD to establish that:
(i) The applicant is a PHA as defined in this subpart, and has the
legal authority to meet the requirements of this subpart and applicable
Section 8 regulations, as described in its application. This evidence
shall be supported by the opinion of counsel for the applicant.
(ii) The applicant has or will have the administrative capability to
carry out the responsibilities described in its application.
(2) The evidence shall include any facts or documents relevant to the
determinations required by paragraph (a)(1) of this section, including
identification of any pending application the applicant has submitted
under the Act. In the absence of evidence indicating the applicant may
not be qualified, the field office may accept as satisfactory evidence:
(i) Identification of any previous HUD approval of the applicant as a
PHA pursuant to this section;
(ii) Identification of any prior ACC with the applicant under the
Act; or
(iii) A statement, where applicable, that the applicant is an
approved participating agency under 24 CFR Part 883 (State Housing
Finance and Development Agencies).
(b) The applicant shall receive no compensation in connection with
the financing of a project, except for its expenses. Such expenses
shall be subject to approval by HUD in determining the development cost,
cost of issuance and servicing fee, as appropriate. Should the
applicant receive any compensation in excess of such expenses, the
excess is to be placed in the debt service reserve.
(c) Where the applicant acts as the financing agency, the applicant
shall be required to furnish to HUD an audit by an independent public
accountant of its books and records in connection with the financing of
the project within 90 days after the execution of the contract or final
endorsement and at least biennially thereafter.
(d) Any subsequent amendments to the documents submitted to HUD
pursuant to this section must be approved by HUD.
24 CFR 811.105 Approval of agency or instrumentality PHA.
(a) An application to the field office for approval as an agency or
instrumentality PHA for purposes of this subpart shall:
(1) Identify the parent entity PHA.
(2) Establish by evidence satisfactory to HUD that:
(i) The parent entity PHA meets the requirements of 811.104.
(ii) The applicant was properly created pursuant to state law as a
not-for-profit entity; is an agency or instrumentality PHA, as defined
in this subpart; has the legal authority to meet the requirements of
this subpart and applicable Section 8 regulations, as described in its
application; and the actions required to establish the legal
relationship with the parent entity PHA prescribed by paragraph (c) of
this section have been taken and are not prohibited by State law. This
evidence shall be supported by the opinion of counsel for the applicant
and counsel for the parent entity PHA.
(iii) The applicant has, or will have, the administrative capability
to carry out the responsibilities described in its application.
(b) The charter or other organic document establishing the applicant
shall limit the activities to be performed by the applicant, and funds
and assets connected therewith, to carrying out or assisting in carrying
out Section 8 projects. Such organic documents shall provide that the
applicant shall receive no compensation in connection with the financing
of a project, except for its expenses. Such expenses shall be subject
to approval by HUD in determining the development cost, cost of issuance
and servicing fee, as appropriate. Should the applicant receive any
compensation in excess of such expenses, the excess is to be placed in
the debt service reserve.
(c) The documents submitted by the applicant shall include the
following with respect to the relationship between the parent entity PHA
and the agency or instrumentality PHA:
(1) Provisions requiring approval by the parent entity PHA of the
charter or other organic instrument and of the bylaws of the applicant,
which organic instrument and bylaws shall specify that any amendments
are subject to approval by the parent entity PHA and by HUD.
(2) Provisions requiring approval by the parent entity PHA of each
project and of the program and expenditures of the applicant.
(3) Provisions requiring approval by the parent entity PHA of each
issue of obligations by the applicant not more than 60 days prior to the
date of issue and approval of any substantive changes to the terms and
conditions of the issuance prior to date of issue.
(4) Provisions requiring the applicant to furnish an audit of all its
books and records by an independent public accountant to the parent
entity PHA within 90 days after execution of the contract or final
endorsement and at least bennially thereafter; and provisions requiring
the parent entity PHA to perform an annual review of the applicant's
performance and to provide HUD with a copy of such review together with
any audits performed during the reporting period.
(5) Provisions giving the parent entity PHA right of access at any
time to all books and records of the applicant.
(6) Provisions that upon dissolution of the applicant, title to or
other interest in any real or personal property that is owned by such
applicant at the time of dissolution shall be transferred to the parent
entity PHA or to another PHA or to another not-for-profit entity as
determined by the parent entity PHA and approved by HUD, to be used only
for purposes approved by HUD.
(7) Evidence of agreement by the parent entity PHA, or other entity
as may be provided for in alternative contractual arrangements pursuant
to 811.103(b), to accept title to any real or personal property
pursuant to paragraph (c)(6) of this section.
(d) Any subsequent amendments to the documents submitted to HUD
pursuant to this section must be approved by HUD.
(e) Members, officers, or employees of the parent entity PHA may be
directors or officers of the applicant unless this is contrary to state
law.
24 CFR 811.106 Term of permanent obligations and contract.
(a) For non-FHA-insured projects, the term of the obligations shall
not exceed the term of the contract plus the anticipated construction
period stated in the agreement rounded to the next full year.
(b) For FHA-insured projects, the term of the obligations shall not
extend beyond the term of the FHA insured mortgage, which may be greater
than the term of the contract.
(c) The term of the contract shall be approved by the field office
pursuant to the applicable Section 8 regulations and the owner shall be
required to continue to provide low-income housing for the full term of
the contract. There shall be no option in the owner to terminate or
renew the contract at shorter intervals.
(d) If HUD finds there is a default under the Contract, the field
office shall so notify the trustee and give the trustee a specified
reasonable time to take action to require the owner to correct such
default prior to any suspension or termination of payments under the
contract. In the event of a default under the contract, HUD may
terminate or suspend payments under the contract, may seek specific
performance of the contract and may pursue other remedies.
24 CFR 811.107 Financing documents and data.
(a) A financing agency proposing to issue tax-exempt obligations
shall submit the following documents:
(1) Copies of the documents relating to the method of financing of
the project. Such documents shall include the bond resolution, loan
agreement, pledge, regulatory agreement, bond, note, trust indenture and
other related documents, if any, all of which shall be in compliance
with all requirements of this subpart and applicable Section 8
regulations.
(2) Certifications by the financing agency:
(i) A certification that the yield on the obligations will not exceed
the ceiling imposed by this subpart.
(ii) For an FHA-insured project, a certification that the amount of
debt service payable by the owner will not exceed the amount required
for the debt service payments on the total obligations, excluding the
debt service reserve, plus the servicing fee.
(iii) For a non-FHA-insured project, a certification that the amount
of debt service payable by the owner will not exceed the amount required
for the debt service payments on the total obligations, plus the
servicing fee.
(iv) A certification that the terms of the financing and the use of
the obligations will be in accordance with this subpart.
(3) An explanation of all reserves or accounts to be established or
maintained, the method of funding and the flow of funds. The
explanation should be in sufficient detail to facilitate field office
review.
(4) An opinion from counsel for the financing agency as to the
legality of all documents relating to the method of financing the
project. Where this opinion relies on other legal opinions such as
those of counsel for the underwriter or the purchaser of tax-exempt
interim and permanent obligations, copies of these opinions shall be
included.
(5) Financial data:
(i) For FHA-insured projects, in addition to the financial data
required for FHA insurance, an itemized statement of the cost of
issuance, debt service reserve and total amount of obligations, and a
statement of the projected yield, interest rate and term of tax-exempt
interim and permanent obligations. If it is later determined to change
any of the above, amended documents shall be submitted.
(ii) For non-FHA-insured projects, an itemized statement of
development cost, cost of issuance, capitalized interest during
construction, debt service reserve, and total amount of obligations and,
for the purposes of the HUD determination of the approved amount of the
obligations required by 811.108(b), an estimate of annual income and
expenses, and a statement of the projected yield, interest rate and term
of tax-exempt interim and permanent obligations. If it is later decided
to change any of the above, amended documents shall be submitted.
(b) The counsel for the financing agency shall, prior to the issuance
of the obligations, furnish to the field office a certification that any
official statement or prospectus or other disclosure statement prepared
in connection with the financing includes on the first page the
following statement:
''(A) In addition to any other security cited in the statement, the
obligations are to be secured by a pledge of an Annual Contributions
Contract, if applicable, an Agreement to Enter Into Housing Assistance
Payments Contract and a Housing Assistance Payments Contract, all to be
executed or approved by the United States Department of Housing and
Urban Development (HUD);
''(B) The faith of the United States is solemnly pledged to the
payment of annual contributions pursuant to the Annual Contributions
Contract or to the payment of housing assistance payments pursuant to
the Housing Assistance Payments Contract, and funds have been obligated
by HUD for such payments;
''(C) Except as provide in any contract of mortgage insurance, the
obligations are not insured by HUD;
''(D) The obligations are not to be construed as a debt or
indebtedness of HUD or of the United States, and payment of the
obligations is not guaranteed by the United States;
''(E) Nothing in the text of this disclosure statement is to be
interpreted to conflict with (A), (B), (C) and (D) above; and
''(F) HUD has not reviewed or approved and bears no responsibility
for the content of this disclosure statement.''
(c) The financing agency shall retain in its files the documentation
relating to the financing. A copy of this documentation shall be
furnished to the field office upon request.
(d) In the event a financing agency which has obtained HUD approval
of the documents submitted pursuant to this section proposes substantive
changes in the documents, whether by way of amendment, replacement or
supplementation, such changes must be submitted to the field office for
prior approval.
24 CFR 811.108 Amount of permanent obligations, debt service reserve
and mortgage debt service.
(a) FHA-insured projects. (1) The amount of the obligations shall
not exceed the amount of the FHA-insured mortgage, plus the amount of
any debt service reserve. The maximum cost of issuance that may be
included in the mortgage (or in the obligations) shall not exceed the
percentage of the mortgage amount otherwise available for the financing
fee and the FNMA/GNMA fee. All individual items of the cost of issuance
shall be shown to be necessary for the issuance of the obligations and
the amount of each shall be shown to be reasonable in relation to
prevailing costs of issuing comparable obligations, taking into account
any differences between the types of obligations.
(2) The amount of the debt service reserve which may be included in
the obligations shall not exceed the amount necessary to pay anticipated
debt service on the obligations for six months.
(i) The debt service reserve shall be invested and the income used to
pay principal and interest on that portion of the obligations which is
attributable to the funding of the debt service reserve. Any excess
investment income shall be added to the debt service reserve. In the
event such investment income is insufficient, surplus cash or residual
receipts to the extent approved by the field office may be used to pay
such principal and interest costs.
(ii) The debt service reserve and its investment income shall be
available only for the purpose of paying principal or interest on the
obligations. The use of the debt service reserve for this purpose shall
not be a cure for any failure by the owner to make required payments.
(iii) Upon full payment of the principal and interest on the
obligations (including that portion of the obligations attributable to
the funding of the debt service reserve), any funds remaining in the
debt service reserve shall be remitted to HUD.
(3) The interest rate on the mortgage shall not exceed the rate at
which the debt service payments on the mortgage will provide sufficient
funds for the debt service payments on the obligations (excluding the
debt service reserve) and for payment of the servicing fee.
(4) Notwithstanding HUD approval of the terms and conditions of the
tax-exempt permanent financing of the project, the interim mortgagee is
required to agree on the date of initial endorsement to hold the
mortgage as the permanent lender if the tax-exempt permanent financing
is not available at final endorsement. If the tax exempt permanent
financing is not available at final endorsement, HUD will approve tax
exemption for subsequent financing of the project, provided that all
requirements under this subpart are met and the subsequent financing
does not exceed the interest rate and is on the same terms and
conditions as the original tax-exempt permanent financing.
(b) Non-FHA-insured projects.
(1) The amount of the obligations and discount, if any, excluding the
amount of any debt service reserve (see paragraph (b)(3) of this
section), shall not exceed:
(i) For profit-motivated owners, the total derived by capitalizing
the project net income, less an allowance for return on equity, at a
debt service rate based on projected term and interest rate of the
obligations, adjusted to provide for the servicing fee.
(ii) For not-for-profit owners, the total derived by capitalizing 95%
of the project net income at a debt service rate based on the projected
term and interest rate of the obligations, adjusted to provide for the
servicing fee.
(iii) The project net income for the above calculations shall be
determined by the following calculation:
(A) Contract rent and other project income as approved by HUD,
(B) Less a HUD approved allowance for vacancies,
(C) Less HUD approved operating expenses,
(D) Equals project net income.
(2) The amounts which may be included in the amount of the
obligations, for capitalized interest during construction, cost of
issuance and development cost shall be subject to the following limits:
(i) If the proceeds of the permanent obligations are to be placed in
escrow until completion of construction ( 811.112(a)), the amount
necessary for capitalized interest during construction may be included.
(ii) The cost of issuance shall not exceed: 4% of the first $2
million; 3% of the third $1 million; 2% of the fourth $1 million; 1%
of the fifth $1 million; and .5% of any amount over $5 million. All
individual items of the cost of issuance shall be shown to be necessary
for the issuance of the obligations and the amount of each shall be
shown to be reasonable in relation to prevailing cost of issuance for
comparable obligations, taking into account any differences between the
types of obligations.
(iii) The remaining amount of the obligations is the maximum that is
available for 100% of the development cost for not-for-profit owners and
90% of the development cost for profit-motivated owners, provided that
the development cost does not exceed a reasonable amount as approved by
the field office after review of the itemized statement of development
cost submitted by the financing agency and the other elements of the
Section 8 final proposal, including architectural submissions. A
profit-motivated owner shall be required to have an equity investment
equal to 10% of the HUD approved development cost.
(3) In addition to the amount of the obligations determined under
paragraph (b)(1) of this section, the amount of the obligations may
include a debt service reserve in the amount necessary to pay
anticipated debt service for one year on the amount of the obligations.
(i) The owner's debt service payment shall be based upon the full
amount of the obligations (i.e., including the amount for the debt
service reserve and discount, if any), but investment income from the
debt service reserve, up to the amount required for debt service on the
obligations attributable to the debt service reserve, shall be credited
toward the owner's debt service payment. Any excess investment income
shall be added to and become part of the debt service reserve.
(ii) The debt service reserve and investment income thereon shall be
available only for the purpose of paying principal or interest on the
obligations. The use of the debt service reserve for this purpose shall
not be a cure for any failure by the owner to make required payments.
(iii) Upon full payment of the principal and interest on the
obligations (including that portion of the obligations attributable to
the funding of the debt service reserve), any funds remaining in the
debt service reserve shall be remitted to HUD.
(4) The interest rate on the mortgage shall not exceed the rate at
which the debt service payments on the mortgage will provide sufficient
funds for the debt service payments on the obligations including the
debt service reserve and for payment of the servicing fee. Contract
rents shall be determined based on the debt service payments necessary
to support the obligations excluding the debt service reserve. The debt
service reserve is assumed to be self-supporting and HUD has no
obligation to increase contract rents in the event the debt service
reserve is not self-supporting.
(c) Notwithstanding the other provisions of this section, in the case
of a mortgage transaction that does not involve the sale of bonds,
whether FHA insured or non-FHA insured, no debt service reserve shall be
included in the obligations and the cost of issuance shall be reduced to
exclude costs associated with bond financing.
24 CFR 811.109 Yield and servicing fee.
(a) The yield on the obligations shall not exceed a yield approved by
the field office in accordance with either paragraph (a)(1) or (a)(2) of
this section.
(1) The financing agency may issue obligations to be offered for
public sale under competitive bidding procedures involving the
solicitation of sealed bids. Bids shall be solicited through an
advertisement which shall include advertisement in a newspaper of
national circulation, such as the Daily Bond Buyer. The yield on the
low bid received under this procedure may be approved by the field
office: Provided, That at least two responsive bids are received. If
only one responsive bid is received, the yield may be approved by the
field office only if acceptable under paragraph (a)(2) of this section.
(2) The financing agency may issue the obligations at a yield that it
certifies is reasonable in relation to prevailing costs in the
tax-exempt market for comparable obligations: Provided, That the field
office has no substantial reason to object to the accuracy of this
certification and the yield does not exceed the 20 Bond Index published
by the Daily Bond Buyer for the week immediately preceding the sale of
the obligations by more than the number of basis points set quarterly or
more frequently by the Assistant Secretary for appropriate categories
and different types of projects such as:
(i) FHA-insured family projects;
(ii) FHA-insured elderly projects;
(iii) Non-FHA-insured family projects; and
(iv) Non-FHA-insured elderly projects.
In addition, the Assistant Secretary may establish from time to time
additional categories for non-FHA-insured projects, including categories
based upon project size, location, construction type and ratings on the
obligations.
(b) If within 60 days of the issuance of the obligations, such
obligations are resold, the financing agency shall report the terms and
conditions of such resale to HUD.
(c) An amount not to exceed one-fourth of 1% per annum of the
obligations may be allowed for the servicing fee. All individual items
of the servicing fee shall be shown to be necessary for the servicing of
the obligations and shown to be reasonable in relation to the cost of
servicing similar obligations.
24 CFR 811.110 Interim financing.
(a) The terms and conditions of any interim financing shall be
consistent with the terms and conditions of the permanent obligations
which are proposed or committed for issuance. The risk of completion of
the project is upon the owner and the interim lender.
(b) The financing agency may request a determination by the field
office that obligations to be issued by the financing agency for interim
financing are tax exempt pursuant to this subpart, but only where tax
exemption has also been requested for the permanent obligations.
(1) The amount of interim obligations shall not exceed the amount of
permanent obligations, less the debt service reserve.
(2) The yield on tax-exempt interim obligations shall not exceed the
maximum yield set quarterly or more frequently by the Assistant
Secretary. Subject to this maximum, the field office may approve a
yield determined to be reasonable.
(3) If tax-exempt interim obligations are issued prior to the date
they are to be advanced for development cost or cost of issuance, the
funds shall be invested in accordance with 811.114(b)(3) to earn
interest. Any investment income shall be used to pay debt service on
the interim obligations or to reduce the amount to be disbursed from the
escrow of the permanent obligations.
(4) Tax exemption of interim obligations shall be limited to a term
not unreasonably beyond the stated date by which completion is required
under the agreement or the anticipated date of final endorsement,
including any extensions approved by HUD.
24 CFR 811.111 Construction inspections.
(a) For FHA-insured projects, the standard FHA procedures shall be
followed.
(b) For non-FHA-insured projects:
(1) The entity providing the interim financing shall provide for such
inspection during construction, either directly or by agreement with the
owner, as the entity deems necessary to protect its interest. Copies of
inspection reports shall be furnished to the PHA (including the parent
entity and the agency or instrumentality, where applicable) and to HUD.
(2) Inspections on behalf of HUD during construction shall be
performed by a qualified inspector hired by the financing agency after
obtaining field office approval of the qualifications of the inspector
and of the contract under which the services are to be performed. These
inspections shall be funded as part of the development cost of the
project. Copies of the inspection reports by such an inspector shall be
furnished to the field office, the financing agency, the interim lender
and the owner. Failure to make such inspections or to note defects
shall not relieve the owner and lender of their obligation for
completion of the project in accordance with the agreement.
24 CFR 811.112 Issuance of permanent obligations and escrow.
(a) If the permanent obligations are issued before execution of the
contract or final endorsement, the proceeds of the obligations shall,
upon receipt, be placed in escrow with the trustee pursuant to the trust
indenture. Disbursements may be made from the escrow only for the cost
of issuance, if not paid from the interim obligations, and for debt
service payments. Disbursements may also be made from the escrow for
construction financing: Provided, That (1) there is an unconditional
guarantee by a State or by a county, city, or other unit of general
local government that in the event of a default prior to execution of
the contract the obligations will be fully redeemed or (2) construction
advances are insured pursuant to the National Housing Act. Funds in the
escrow shall be invested in accordance with 811.114(b)(3) to earn
interest.
(b) In the event that the contract is not executed within 90 days
after the date by which completion is required under the applicable
agreement or, for FHA-insured projects, the anticipated date of final
endorsement, the permanent obligations shall be redeemed from the funds
in escrow plus income from investment of the escrowed funds and less any
debt service payments or disbursements for cost of issuance. However,
such date for redemption may be extended to a later specified date in
the event:
(1) The parties to the agreement, HUD and the trustee have agreed in
writing to such extended date, and
(2) Additional funds, in the form of cash or an unconditional letter
of credit, are added to the escrow to guarantee that there will be
sufficient funds in the escrow on the extended date to pay all amounts
that are then required to be paid from the escrow on at least as
favorable a basis as if there had been no extension.
(c) The agreement may contain a provision that in the event of
foreclosure by the interim lender by reason of a default prior to
acceptable completion of the project, or in the event of assignment or
sale by reason of such a default to the interim lender or other party
agreed to by the interim lender and approved by HUD, the parties to the
agreement (other than the defaulted owner) shall agree to a reasonable
extension of the completion date upon request of the interim lender
where:
(1) The trustee has agreed to the extension,
(2) The interim lender has agreed in writing to assure acceptable
completion of the project by the extended date, and
(3) Additional funds, in the form of cash or an unconditional letter
of credit, are added to the escrow to guarantee that there will be
sufficient funds on the extended date to pay all amounts that are then
required to be paid from the escrow on at least as favorable a basis as
if there had been no extension.
(d) The escrowed funds, including any investment income, less
approved prior disbursements, shall be disbursed only upon execution of
the contract or, for FHA-insured projects, at final endorsement and only
for the purpose and to the extent of the amounts approved by the field
office.
24 CFR 811.113 Execution of contract.
(a) If the field office finds that the evidence of completion is
acceptable with respect to the physical completion of the project,
including the certificate of occupancy and/or other official approvals
required for occupancy, but the evidence of completion in other respects
is not acceptable, the field office shall, upon request by the owner,
execute or approve the execution of the contract; in such case,
however, until the remaining evidence of completion is submitted to and
found acceptable by the field office:
(1) The contract rent for the purpose of computing housing assistance
payments with respect to any unit shall be the monthly amount of the
debt service on the permanent obligations attributable to the unit, and
(2) Rent-up and occupancy shall be subject to such conditions as the
field office may require.
(b) The effective date of the contract shall be 10 working days after
the notification of project completion to the field office, or the date
of the HUD insection if earlier: Provided, That the owner's and
architect's certifications and other evidence of completion required by
the applicable Section 8 regulations are found by the field office to be
acceptable as of that date. If the certifications and other evidence of
completion are found not to be acceptable as of that date, the effective
date of the contract shall be the earliest subsequent date as of which
the evidence of completion is found by the field office to be
acceptable.
(c) To support the estimates on which the field office determined the
amount of the permanent obligations and to assure that the proceeds of
the obligations are used for the approved purposes, the evidence of
completion to be submitted in accordance with the agreement or, for
FHA-insured projects, to be submitted at final endorsement to supplement
the documentation required to meet FHA requirements shall include:
(1) A certified statement by the financing agency as to amounts
actually expended or to be expended for development cost, cost of
issuance, capitalized interest during construction and debt service
reserve, supported by (for non-FHA-insured projects) a certified
statement by the owner, audited by an independent public accountant, as
to the development cost. Records of this cost data shall be available
to HUD for inspection upon request. To the extent these amounts are
less than those approved by the field office under 811.108 or there has
been an addition to the escrow because of investment income, the
financing agency shall state whether the excess funds are to be used to
prepay the obligations or are to be added to the debt service reserve.
(2) A certified statement by the financing agency as to the yield and
interest rate on tax-exempt interim and permanent obligations, the debt
service amount to be paid by the owner and the other terms of the
financing.
(d) In reviewing the certifications submitted by the financing agency
under paragraph (c) of this section, the field office shall, generally,
accept the certifications as correct. However, if the field office has
substantial reason to question the correctness of any element, the field
office shall promptly bring the matter to the attention of the financing
agency and ask that the financing agency review its findings. After
such review, the field office will act in accordance with the judgment
or evaluation of the financing agency, unless the field office
determines that the certifications are not supported by the evidence.
(1) Based on its review, the field office shall approve the amounts
to be disbursed from the escrow for development cost, cost of issuance,
capitalized interest during construction and the debt service reserve,
including the proposed use of excess funds, if any.
(2) The field office shall amend the contract to reduce the contract
rents to the extent that:
(i) For FHA-insured projects, the debt service amount to be paid by
the owner is lower than the amounts projected in processing the project,
or
(ii) For non-FHA-insured projects, the debt service payments
necessary to support the obligations, excluding the revised amount of
debt service reserve, is lower than the amounts projected in processing
the project.
(e) Upon execution of the contract or at final endorsement the
escrowed funds, including any investment income, less approved prior
disbursements, shall be disbursed for the purposes and to the extent of
the amounts approved by the field office.
24 CFR 811.114 Trust indenture provisions.
(a) The trust indenture shall include, among other things, the
following specific provisions with regard to the financing and the
operation of the project and shall be otherwise consistent with this
subpart.
(b) Reserves, accounts and escrows.
(1) For non-FHA-insured projects, the trust indenture shall provide
for the maintenance of reserves and/or accounts, as approved by the
field office, to assure that there are funds as necessary to meet all
project requirements.
(2) For all projects, the trust indenture shall provide for the
maintenance of reserves and/or accounts, as approved by the field
office, to assure that there are funds as necessary to make all required
payments to the holders of the obligations.
(3) The funds in the reserves or accounts maintained under paragraphs
(b) (1) and (2) of this section, as well as funds in any escrow of
tax-exempt interim or permanent obligations, shall be invested to earn
interest in savings accounts or other deposits that are federally
insured, in Treasury securities, in securities insured or guaranteed by
a Federal agency, or in securities insured by a U.S. Government agency.
Investment income shall be added to and used for the purposes of the
particular reserve, account or escrow.
(4) To the extent there are excess funds in any reserve or account
maintained under paragraph (b)(2) of this section, these shall be added
to the debt service reserve.
(5) A debt service reserve, up to the amount allowable under this
subpart, may be funded from the proceeds of the obligations; this is
the only reserve for which advance funding from the proceeds of the
obligations is permitted. The use of the debt service reserve and
disposition of funds in the reserve shall be consistent with 811.108
and paragraphs (b) (2), (3) and (4) of this section.
(c) Additional tax-exempt obligations may be issued to finance
additional development cost, whether for increased costs during
construction or for project improvements after execution of the contract
or final endorsement that are shown to be reasonable and are approved by
HUD pursuant to this subpart and by the trustee, provided that HUD
approves an increase in the mortgage amount (for FHA-insured projects)
and, pursuant to the applicable Section 8 regulations, an increase in
the contract rents to the extent required to pay debt service on the
additional obligations. Such additional obligations, if issued, shall
be issued without the refinancing of any outstanding obligations.
(d) Obligations shall be prepaid only under such conditions as HUD
shall require, including reduction of contract rents and continued
operation of the project for the housing of low-income families.
24 CFR 811.115 Other requirements.
(a) If a project has an executed agreement based on a final proposal
that did not include tax-exempt financing under this subpart, conversion
to tax-exempt financing under this subpart shall require the prior
authorization of the Assistant Secretary.
(b) Issuance of obligations pursuant to this subpart to refund
outstanding permanent obligations issued pursuant to this subpart is
probibited.
(c) The special procedures in 24 CFR part 833, subpart C otherwise
available to a participating agency may be used in connection with
projects financed with obligations issued pursuant to this subpart:
Provided, That the participating agency submits the additional
certifications necessary to comply with this subpart.
24 CFR 811.116 Approval of obligations as tax-exempt.
(a) The field office director shall send the financing agency a
notification of approval of obligations as tax-exempt if the field
office finds that:
(1) Obligations proposed to be issued for the financing of a
low-income housing project comply with this subpart.
(2) The terms and conditions of the financing (not including the
official statement prospectus or other disclosure statement) have been
approved pursuant to this subpart and the applicable Section 8
regulations.
(3) The agreement has been executed and, where applicable, approved
in writing by HUD.
(b) The notification shall include a statement that:
(1) Pursuant to this subpart and the Act, HUD has found the financing
agency to be an eligible PHA.
(2) The obligations, including interest thereon, when issued in
accordance with the approved application, shall be exempt from all
taxation now or hereafter imposed by the United States whether paid by
the PHA or by HUD.
(3) The income derived by the PHA from the low-income housing project
shall be exempt from all taxation now or hereafter imposed by the United
States.
(c) If the application included tax-exempt interim financing, the
notification shall include a statement with regard to such interim
financing, including and explicit statement that tax exemption of such
obligations is limited to a term not unreasonably beyond the stated date
by which completion is required under the agreement or the anticipated
date of final endorsement, including any extensions approved by HUD.
(d) This notification of approval of tax exemption shall not be
subject to revocation by HUD.
24 CFR 811.117 Applicability to tax exemption other than under Section
11(b).
Issuers of obligations that are tax-exempt under any provision of
Federal law or regulation other than Section 11(b) of the Act (except
for State Agencies qualified under, 24 CFR part 883) must submit all
documents required by 24 CFR 811.107 through 811.110 to the Field Office
for review and approval. The terms and use of these obligations and the
operation of the project will comply with the requirements of 24 CFR
part 811, subpart A.
(45 FR 62798, Sept. 22, 1980)
24 CFR 811.118 Tax-exempt financing under Section 17(j) of the Act for
housing development grant projects.
(a) This section states the terms and conditions under which HUD will
approve tax-exempt financing under Section 17(j) of the Act for projects
receiving housing development grants under 24 CFR part 850.
(b) Full compliance with part 811, subpart A, is required, except for
811.103, 811.106, 811.108(b)(1), 811.110, 811.111, 811.112, 811.113
and, 811.117, and except as applicable provisions are modified herein.
(c) A State or local housing agency that has the legal authority to
issue tax-exempt obligations to finance housing may be approved as the
financing agency or as the parent entity of the agency or
instrumentality that issues the obligations.
(d) The project to be financed must receive a housing development
grant under 24 CFR part 850.
(e) The aggregate term of the obligations shall be reasonably related
to the term of the mortgage.
(f) For non-FHA-insured projects, the amount of the development cost,
cost of issuance including discount, and capitalized interest during
construction shall not exceed the amount approved under 24 CFR part 850.
(g) The Assistant Secretary for Housing -- FHA Commissioner shall
issue the notification that the obligations constitute obligations in
accordance with Section 17(j) and meet the requirements of, and have the
benefits associated with, an obligation described in Section 11(b).
(49 FR 24653, June 14, 1984)
24 CFR 811.118 Subpart B -- Purchase of GNMA Guaranteed Mortgage-Backed
Securities With Tax-Exempt Obligations
Source: 45 FR 41383, June 18, 1980, unless otherwise noted.
24 CFR 811.201 General.
(a) This subpart B provides a financing technique that combines
tax-exempt obligations with GNMA mortgage-backed securities that are
guaranteed by the full faith and credit of the U.S. Government. HUD
approval of this financing technique is required whether the authority
for tax exemption is based upon section 11(b) of the Act or upon another
Federal statute (see 811.210(a) herein). The mortgagee of a HUD-insured
Section 8 project will make insured advances and then issue
mortgage-backed securities in the form of construction loan certificates
and, after final closing, in the form of a project loan certificate.
The proceeds of the sale of tax-exempt obligations will be used to
purchase the mortgage-backed securities. The investor who purchases the
obligations will be secured by a combination of escrowed proceeds and
construction loan certificates during the construction period, and by
project loan certificates as issued and substituted for outstanding
construction loan certificates after final endorsement.
(b)(1) Section 11(b) of the Act provides that: ''Except as provided
in Section 5(g), obligations, including interest thereon, issued by
public housing agencies in connection with low-income housing projects
shall be exempt from all taxation now or hereinafter imposed by the
United States whether paid by such agencies or by the Secretary. The
income derived by such agencies from such projects shall be exempt from
all taxation now or hereafter imposed by the United States.''
(2) This subpart B provides for approval by HUD of obligations as
tax-exempt pursuant to Section 11(b) and for approval of the use of
proceeds of sale of these obligations to purchase mortgage-backed
securities.
(c)(1) Where the obligations are issued pursuant to section 103 of
the Internal Revenue Code of 1954, the Federal Relations Act for Puerto
Rico or other statute providing for exemption from Federal taxation,
there must be full compliance with the applicable statute and any
Federal regulations relevant to the determination that the obligations
are tax exempt.
(2) This subpart provides for approval by HUD of the use of the
proceeds of the sale of these obligations to purchase mortgage-backed
securities.
(d) Combination financing pursuant to this subpart may be used where:
(1) The project is approved by HUD under the applicable Section 8
regulations (24 CFR parts 880, 881, 882, or 883).
(2) The mortgage is insured under section 221 of the National Housing
Act and the mortgage and the MBS-issuer are eligible under GNMA
regulations, 24 CFR part 390, subpart A. Instructions pertaining to the
issuance of mortgage-backed securities are contained in the
Mortgage-Backed Securities Guide, GNMA Handbook 5500.1.
(3) Where tax exemption is obtained under Section 11(b) of the Act,
all dwelling units will be Section 8 contract units, except as needed
for a resident manager or similar requirement. Where tax exemption is
obtained under another statute, the percentage of the dwelling units
that are Section 8 contract units will be not less than the minimum
required under that statute, but in no event less than 20 percent.
(e) Sale of obligations pursuant to this subpart B to refund
outstanding permanent obligations sold pursuant to this subpart or
subpart A is prohibited.
(f) The financing agency may propose to use a single issuance of
obligations to purchase mortgage-backed securities for a number of
different projects. The HUD field office will approve issuance of
obligations issued to fund a number of different projects if each
project has been approved by HUD as meeting all requirements of this
subpart and HUD processing on each specific project has been completed.
24 CFR 811.202 Definitions.
Act. The United States Housing Act of 1937 (42 U.S.C. 1437, et.
seq.).
Agreement. An Agreement to enter into Housing Assistance Payments
Contract as defined in the applicable Section 8 regulations. The form
of agreement will be amended in accordance with this subpart B.
Annual Contributions Contract (ACC). An Annual Contributions
Contract as defined in the applicable Section 8 regulations. The form
of ACC will be amended in accordance with this subpart B.
Applicable Section 8 regulations. The provisions of 24 CFR parts
880, 881, 882, or 883 that apply to the project.
Commitment to Guaranty Mortgage-backed securities. The agreement of
GNMA to guaranty mortgage-backed securities issued by an approved
MBS-issuer in connection with a specific project, subject to the
issuer's satisfying the conditions set forth in said commitment.
Construction Loan Certificate. A mortgage-backed security backed by
construction advances insured by HUD.
Contract. A Housing Assistance Payment Contract is defined in the
applicable Section 8 regulations. The form of contract will be amended
in accordance with this subpart B.
Cost of issuance. Expenses incurred in connection with issuance of
the obligations.
Financing Agency. An issuer of the tax-exempt obligations (proceeds
of the sale of which are to be used to purchase mortgage-backed
securities issued in connection with the financing of a HUD-insured
Section 8 project) in one of the following categories:
(1) Public Housing Agency (PHA). Any state, county, municipality, or
other government entity or public body (or agency or instrumentality
thereof) that is authorized to engage in or assist in the development or
operation of low-income housing.
(i) Parent entity PHA. Any state, county, municipality or other
governmental entity or public body that is authorized to engage in or
assist in the development or operation of low-income housing and that
has the relationship to an agency or instrumentality PHA required by
this subpart B.
(ii) Agency or instrumentality PHA. A not-for-profit private or
public organization that is authorized to engage in or assist in the
development or operation of low-income housing and that has the
relationship to a parent entity PHA required by this subpart.
(2) An issuer of obligations that are tax-exempt pursuant to Section
103 of the Internal Revenue Code of 1954, the Federal Relations Act for
Puerto Rico or other statute providing for exemption from federal
taxation. Such an issuer will meet all requirements of 811.203(d).
GNMA. The Government National Mortgage Association.
GNMA servicing fee. The fee that GNMA permits the MBS-issuer to
charge for servicing (including the GNMA guarantee fee).
HUD. The Department of Housing and Urban Development.
Loan Agreement. A contract with sets forth rights and duties with
respect to the purchase and sale of the mortgage-backed securities.
Low-income Housing Project. Any housing for families and persons of
lower income developed, acquired or assisted under Section 8 of the Act
and the improvement of any such housing.
MBS-issuer. The mortgagee that issues the GNMA mortgage-backed
securities.
Mortgage-backed Security (MBS). A security guaranteed as to
principal and interest by GNMA pursuant to section 306(g) of the
National Housing Act.
Note. The note insured by HUD under the National Housing Act.
Obligations. Tax-exempt bonds, notes or other evidence of
indebtedness that are issued to provide financing of a low-income
housing project. Pursuant to section 319(b) of the Housing and
Community Development Act of 1974, the term obligations will not include
any obligation secured by a mortgage insured under section 221(d)(3) of
the National Housing Act and issued by a public agency as mortgagor in
connection with the financing of a project assisted under section 8 of
the Act. Where there are two independent public agencies involved
(e.g., two PHAs eligible under 811.203(b)), one may be the Section
221(d)(3) mortgagor and the other may be the financing agency that
issues the tax-exempt obligations. The use of tax-exempt financing is
not permitted where a single public agency, and/or its agency or
instrumentality PHA, function both as the Section 221(d)(3) mortgagor
and as the financing agency.
Obligation servicing fees. Costs of servicing the obligations
including trustee and financing agency expenses.
Owner. An owner as defined in the applicable Section 8 regulations.
Project Loan certificate. A mortgage-backed security backed by a
HUD-insured mortgage that is finally endorsed.
Trust indenture. A contract setting forth the rights and obligations
of the financing agency and trustee in connection with the obligations.
Trustee. The entity that has the legal responsibility under the trust
indenture and loan agreement for purchasing the mortgage-backed
securities with proceeds of the sale of the obligations and servicing
the obligations. The trustee will be a bank or other financial
institution experienced in performing the fiduciary responsibilities
required by the trust indenture and the loan agreement.
Yield. The nominal annual interest rate at which the sum of the
discounted present values of the scheduled principal and interest
payments is equal to the face amount of the obligations.
24 CFR 811.203 Approval of financing agency.
(a) Where the obligations are issued pursuant to section 11(b) of the
Act, the financing agency must be approved as a PHA under paragraph (b)
or (c) of this section.
(b)(1) An application to the field office for approval as a public
housing agency, other than an agency or instrumentality PHA, for
purposes of this subpart B will be supported by evidence satisfactory to
HUD to establish that:
(i) The applicant is a PHA as defined in this subpart B, and has the
legal authority to meet the requirements of this subpart B and
applicable Section 8 regulations, as described in its application. This
evidence will be supported by an opinion of counsel for the applicant.
(ii) The applicant has or will have the administrative capability to
carry out the responsibilities described in its application.
(2) The evidence will include any facts or documents relevant to the
determinations required by 811.203(b)(1), including identification of
any pending application the applicant has submitted under the Act. In
the absence of evidence indicating the applicant may not be qualified,
the field office may accept as satisfactory evidence:
(i) Identification of any previous HUD approval of the applicant as a
PHA pursuant to this section;
(ii) Identification of any prior ACC with the applicant under the
Act; or
(iii) A statement, where applicable, that the applicant is an
approved participating agency under 24 CFR part 883 (State Housing
Finance and Development Agencies).
(3) The applicant will receive no compensation in connection with the
financing of a project, except for its expenses as approved by HUD.
Should the applicant receive any compensation in excess of such
expenses, the excess is to be paid to the trustee to be applied in
accordance with the trust indenture.
(4) The applicant will be required to furnish to HUD an audit by an
independent public accountant of its books and records in connection
with the financing of the project within 90 days after final endorsement
and at least biennially thereafter. No audit is required where the
trust indenture and other financing documents provide that no payments
will be made to the applicant as financing agency except for (i) actual
expenses of the financing agency approved by the field office and
payable from the proceeds of the HUD-insured mortgage and subject to
cost certification requirements or (ii) actual and necessary expenses
approved by the trustee and payable from the obligation servicing fee.
(5) Any subsequent amendments to the documents submitted to HUD
pursuant to this paragraph (b) must be approved by HUD.
(c)(1) An application to the field office for approval as an agency
or instrumentality PHA for purposes of this subpart B will:
(i) Identify the parent entity PHA.
(ii) Establish by evidence satisfactory to HUD that:
(A) The parent entity PHA meets the requirements of paragraph (b) of
this section.
(B) The applicant was properly created pursuant to state law as a
not-for-profit entity, is an agency of instrumentality PHA as defined in
this subpart B, has the legal authority to meet the requirements of this
subpart B and applicable Section 8 regulations as described in its
application; that the actions required to establish the legal
relationship with the parent entity PHA prescribed by paragraph (c)(3)
of this section have been taken and are not prohibited by State law.
This evidence will be supported by the opinion of counsel for the
applicant and counsel for the parent entity PHA.
(C) The applicant has, or will have, the administrative capability to
carry out the responsibilities described in its application.
(2) The charter or other organic document establishing the applicant
will limit the activities to be performed by the applicant, and funds
and assets connected therewith, to carrying out Section 8 projects.
Such organic documents will provide that the applicant will receive no
compensation in connection with the financing of a project, except for
its expenses as approved by HUD. Should the applicant receive any
compensation in excess of such expenses, the excess will be paid to the
trustee to be applied in accordance with the trust indenture.
(3) The documents submitted by the applicant will include the
following with respect to the relationship between the parent entity PHA
and the agency or instrumentality PHA:
(i) Provisions requiring approval by the parent entity PHA of the
charter or other organic instrument and of the bylaws of the applicant,
which organic instrument and bylaws will specify that any amendments are
subject to approval by the parent entity PHA and by HUD.
(ii) Provisions requiring approval by the parent entity PHA of each
project and of the program and expenditures of the applicant.
(iii) Provisions requiring approval by the parent entity PHA of each
sale of obligations by the applicant not more than 60 days prior to the
date of sale and approval of any substantive changes to the terms and
conditions of the issuance prior to date of sale.
(iv) Provisions requiring the applicant to furnish an audit of all
its books and records by an independent public accountant to the parent
entity PHA within 90 days after final endorsement and at least
biennially thereafter and provisions requiring the parent entity PHA to
perform an annual review of the applicant's performance and to provide
HUD with a copy of such review together with any audits performed during
the reporting period. No audit is required where the trust indenture
and other financing documents provide that no payments will be made to
the applicant as financing agency except for:
(A) Actual expenses of the financing agency approved by the field
office and payable from the proceeds of the HUD-insured mortgage and
subject to cost certification requirements; or
(B) Actual and necessary expenses approved by the trustee and payable
from the obligation servicing fee.
(v) Provisions giving the parent entity PHA right of access at any
time to all books and records of the applicant.
(vi) Provisions that upon dissolution of the applicant, title to or
other interest in any real or personal property that is owned by such
applicant at the time of dissolution will be transferred to the parent
entity PHA or to another PHA or to another not-for-profit entity as
determined by the parent entity PHA and approved by HUD, to be used only
for purposes approved by HUD.
(4) Any subsequent amendments to the documents submitted to HUD
pursuant to this paragraph (c) must be approved by HUD.
(5) Members, officers, or employees of the parent entity PHA may be
directors or officers of the applicant unless this is contrary to state
law.
(d) Where the obligations are issued pursuant to Section 103 of the
Internal Revenue Code of 1954, the Federal Relations Act for Puerto Rico
or other statute providing for exemption from Federal taxation, the
financing agency will submit to HUD satisfactory evidence, including an
opinion of counsel, that the financing agency has met all eligibility
requirements under the applicable statute.
(1) The financing agency will receive no compensation in connection
with the financing of the project, except for its expenses as approved
by HUD.
(2) Should the financing agency receive any compensation in excess of
its expenses, the excess will be paid to the trustee to be applied in
accordance with the trust indenture.
24 CFR 811.204 Financing documents and data.
(a) The Section 8 final proposal will include: (1) Evidence
satisfactory to HUD that the financing agency meets or can meet all
eligibility requirements under 811.203.
(2) A description of the terms and conditions of financing including
preliminary copies of the documents relating to the method of financing.
(i) Such documents will include the application for FHA firm
commitment, the resolution obligation, trust indenture, loan agreement
and other related documents, if any, all of which will be in compliance
with all requirements of this subpart B and applicable Section 8
regulations.
(ii) The documents will include specific provisions required by HUD
and an explanation from counsel of any amendments or additions that are
proposed.
(3) An explanation of the method, negotiated sale or competitive
bidding, by which the obligations are to be sold.
(4) A preliminary draft opinion from counsel as to the legality under
state and federal law of the proposed obligations based upon documents
that have been submitted. Where this opinion relies on other legal
opinions, copies of these opinions will be included. Counsel will also
state that any official statement or prospectus or other disclosure
statement, if any, prepared in connection with the financing will
include on the first page the HUD-Required Disclosure Statement set
forth in 811.205(b) and that the counsel's final opinion will state
that this was done.
(5) An itemized statement of all costs of issuance in connection with
the obligations, including any costs to be paid in excess of the 3 1/2
percent funded in the HUD-insured mortgage.
(6) A statement of the obligation servicing fee.
(b) Where a financing agency proposes substantive changes in the
documents after obtaining HUD approval of the documents submitted
pursuant to this Subpart B, such changes must be approved by HUD.
(c) The financing agency will retain in its files the documentation
relating to the financing. A copy of this documentation will be
furnished to HUD upon request.
24 CFR 811.205 Trust, indenture, loan agreement and prospectus.
(a) The trust indenture and the loan agreement will be prescribed by
HUD.
(1) Monies in the funds established pursuant to the trust indenture
will be invested to earn interest in time deposits that are federally
insured, in Treasury securities, in securities issued by a Federal
agency or a Federally sponsored agency, or in certificates of deposit
that are fully secured by a pledge of securities similar to those listed
above.
(2) A one month debt service reserve will be funded from proceeds of
the sale of the obligations; a second month may be funded from
investment income.
(3) If there is no default in payment of principal and interest and
the debt service reserve fund is fully funded, the Assistant Secretary
may give written direction for use of excess funds in any account
prescribed by the trust indenture.
(4) All amounts paid by the mortgagor or by the financing agency for
cost of issuance and their purpose will be disclosed to HUD and paid in
accordance with the trust indenture and the loan agreement. The amount
of such expenses that may be included in the mortgage must be approved
by HUD as necessary and reasonable.
(5) Voluntary prepayment of the note and of the obligations will not
be permitted without the prior approval of HUD.
(b) Any prospectus or other disclosure statement used in connection
with the issuance of the tax-exempt obligations will include the
following HUD-Required Disclosure Statement that describes the
relationship between the Section 8 assistance, the HUD insurance, the
GNMA guaranty and the obligations. Part I is to appear on the face page
and Part II may appear on the face page or on the first page after the
face page.
''(A) The obligations offered for sale are exempt from Federal income
tax under Section 11(b) of the U.S. Housing Act of 1937 and a
Notification of Approval of the Obligations as Tax-exempt, which also
approves use of the proceeds of the sale of the obligations to purchase
the mortgage-backed securities, will be obtained from the United States
Department of Housing and Urban Development (HUD). (Where the
obligations are tax-exempt under another statute, delete the above
sentence and substitute the following: The obligations offered for sale
are tax-exempt under ------------ . A Notification of Approval of the
use of the proceeds of the sale of the obligations to purchase the
mortgage-backed securities will be obtained from the Department of
Housing and Urban Development (HUD)). The opinion of counsel as to the
tax exemption of the obligations is set forth below.
(B) The proceeds of the obligations will be used to purchase
mortgage-backed securities guaranteed as to timely payment of principal
and interest by the Government National Mortgage Association (GNMA). An
Assistant Attorney General of the United States has stated that, under
Section 306(g) of the National Housing Act, GNMA guarantees ''constitute
general obligations of the United States backed by its full faith and
credit.''
(C) The obligations are not a debt or indebtedness of the United
States, HUD or GNMA.
''(A) The proceeds of the sale of the obligations will be placed in
escrow with a trustee acting on behalf of the purchasers of the
obligations. The only permitted uses of the escrowed proceeds are: (1)
To make investments permitted by the trust indenture, (2) to make
scheduled principal and interest payments to the purchasers of the
obligations, (3) to purchase GNMA guaranteed construction loan
certificates or project loan certificates (the mortgage-backed
securities), or (4) to redeem the obligations. The purchasers are
secured by the trustee holding either the proceeds of the sale of the
obligations, the permitted investments, the mortgage-backed securities
purchased with the proceeds of the sale of the obligations, or a
combination thereof.
(B) The mortgage on the project will be insured by HUD under the
National Housing Act and, in the event of any default by the owner in
making payments due under the mortgage, the mortgagee is entitled to
process a claim for mortgage insurance benefits in accordance with the
contract of mortgage insurance.
(1) If a default results in any interruption in timely payments to
the purchasers of the mortgage-backed securities, the mortgagee is
required to make payments to the trustee. Should the mortgagee fail to
make such payments, the payments will be made by GNMA pursuant to its
guarantee.
(2) The proceeds of the mortgage insurance claim will be used to
redeem the mortgage-backed securities, and in turn, the obligations.
(C) The mortgage-backed securities and therefore the obligations are
subject to early redemption in the event the mortgage is prepaid or
there are other early or unscheduled payments of principal on the
HUD-insured mortgage.
(D) Payments under the HUD-insured mortgage are secured in whole or
in part by an Annual Contributions Contract, if applicable, an Agreement
to Enter into Housing Assistance Payments Contract and a Housing
Assistance Payments Contract, all to be executed or approved by HUD.
Housing assistance payments will be made to the owner of the project in
accordance with the terms of these contracts. The faith of the United
States is solemnly pledged to the payment of annual contributions
pursuant to the Annual Contributions Contract or to the payment of
housing assistance pursuant to the Housing Assistance Payments Contract,
and funds will be obligated by HUD for such payments.''
(45 FR 41383, June 18, 1980)
24 CFR 811.206 Amount and maturity of obligations and field office
processing.
(a) The amount of the obligations will not exceed the amount of the
HUD-insured mortgage plus an amount equal to a debt service reserve of
one month.
(1) The maximum cost of issuance included in the mortgage will not
exceed the percentage of the mortgage amount otherwise available for the
sum of financing fee and the FNMA/GNMA fee. All individual items of
such cost of issuance will be shown to be necessary for the issuance of
the obligations and the amount of each will be shown to be reasonable in
relation to prevailing costs of issuing comparable obligations, taking
into account any differences between the types of obligations.
(2) Additional cost of issuance may be paid by the owner or other
parties, but may not be cost certified for inclusion in the note or paid
from investment income.
(b) HUD mortgage insurance processing will be based on the interest
rate at which the debt service payments on the mortgage will provide
sufficient funds to meet the debt service payments on the obligations
plus payment of the GNMA servicing fee, which is equal to one-fourth of
one percent of the mortgage.
(c) The maturity date of the obligations will be no later than 40
years and 60 days beyond the maximum maturity date stated on the face of
the construction loan certificate. The maturity date of the obligations
may be adjusted at or after final closing so that maturity occurs no
later than 40 years and 60 days after the actual issuance of the project
loan certificates.
(d) The proposed obligation servicing fee will be reviewed and
approved for reasonableness by the HUD field office. The fee is to be
collected by the mortgagee and passed on to the trustee.
24 CFR 811.207 Sale of the obligations.
(a) The financing agency may sell the obligations under competitive
bidding procedures or by negotiated sale.
(1) Competitive bidding. (i) The financing agency may sell the
obligations by soliciting bids through advertisement placed by the
financing agency or by HUD in a newspaper of national circulation and
other publicity. The advertisement will describe the obligations and
the conditions of sale, state the availability of more detailed
information, including bid forms, and specify the time and date of the
bid opening and the date for delivery of the obligations.
(ii) Subject to approval by HUD, the financing agency will accept the
low bid before initial endorsement.
(2) Negotiated sale. The financing agency may sell by negotiated
sale subject to a yield ceiling established by the Assistant Secretary.
(i) The yield ceiling will be established on a quarterly or more
frequent basis, by identifying a nationally known bond index and setting
the number of basis points by which the yield ceiling is related to such
index for the week immediately preceding the date of acceptance by the
financing agency of the agreement to purchase the obligations.
(ii) The agreement to purchase will be approved by the mortgagee and
HUD prior to initial endorsement. Any conditions that limit the binding
nature of the agreement to purchase must be acceptable to HUD.
(b) The proceeds of the sale will be delivered to the trustee and
will equal, at least, the sum of the face amount of the mortgage note
plus an amount equal to a debt service reserve of one month. Any
shortage will be funded by the owner as an out-of-pocket expense.
(c) If within 60 days of initial endorsement the obligations are
resold, the financing agency will report the terms and conditions of
such resale to HUD.
(45 FR 41383, June 18, 1980)
24 CFR 811.208 Approval of the financing, execution of the agreement
and initial endorsement.
(a) Following approval of the final proposal, but prior to execution
of the agreement and prior to initial endorsement, the financing agency
will submit:
(1) A copy of the GNMA Commitment to Guaranty Mortgage-backed
Securities.
(2) The final draft of the documents required by 811.204 and the
final draft opinion by counsel for the financing agency.
(3) The yield at which obligations have been sold.
(b) (1) The HUD field office will review the mortgage insurance
processing.
(i) If there has been an increase in the yield, the HUD field office
will reprocess the application for mortgage insurance and for approval
of increased contract rents under applicable Section 8 regulations.
(ii) If there has been a decrease in the yield, the HUD field office
will reduce the mortgage note interest, the mortgage amount, and the
contract rents.
(2) HUD approval under this Subpart B does not relieve the mortgagee
of any of the responsibilities imposed by the mortgagee's certificate
and other closing documents, and by regulations applicable to the
insured mortgage transaction.
(3) The note will include a provision stating that the note will not
be voluntarily prepaid except with the approval of HUD and subject to
such conditions as HUD will require, including reduction of contract
rents and continued operation of the project for the housing of
low-income families.
24 CFR 811.209 Approval of obligations as tax-exempt pursuant to
Section 11(b).
(a) The HUD field office manager will deliver to the financing agency
a Notification of Approval of Obligations as Tax-exempt pursuant to
Section 11(b) of the Act if the field office finds that:
(1) The terms and conditions of the financing have been approved
pursuant to this subpart B and the applicable Section 8 regulations.
(2) The agreement has been executed and, where applicable, approved
in writing by HUD.
(3) The MBS-issuer has obtained from GNMA an executed Commitment to
Guaranty Mortgage-backed Securities.
(b) The notification will include a statement that:
(1) Pursuant to the Act and this subpart B, HUD has found the
financing agency to be an eligible PHA.
(2) The obligations, including interest thereon, when issued in
accordance with the approved application, will be exempt from all
taxation now or hereafter imposed by the United States whether paid by
the PHA or by HUD.
(3) The income derived by the PHA from the low-income housing project
will be exempt from all taxation now or hereafter imposed by the United
States.
(4) The proceeds of the sale of the obligations will be used to
purchase the mortgage-backed securities.
(c) This Notification of Approval of Obligations as Tax-exempt will
not be subject to revocation by HUD.
24 CFR 811.210 Approval where tax exemption is not pursuant to Section
11(b).
(a) Where mortgage-backed securities issued in connection with the
financing of a HUD-insured Section 8 project are to be purchased by the
trustee with the proceeds of the sale of obligations that are exempt
from federal taxation under Section 103 of the Internal Revenue Code of
1954, the Federal Relations Act for Puerto Rico or another statute, the
issuer and other parties are required to comply with all applicable
provisions of this subpart B.
(b) The field office manager will send the financing agency a
Notification of Approval if the field office finds that:
(1) The terms and conditions of the financing have been approved
pursuant to this subpart B and the applicable Section 8 regulations.
(2) The agreement has been executed and, where applicable, approved
in writing by HUD.
(3) The MBS-issuer has obtained from GNMA an executed Commitment to
Guaranty Mortgage-backed Securities.
(c) The notification will include a statement that the proceeds of
the sale of the obligations will be used to purchase the mortgage-backed
securities.
24 CFR 811.211 Delivery of proceeds and final endorsement.
(a) The proceeds of the sale of the obligations will be delivered to
the trustee.
(b) In addition to the required HUD documentation prior to final
endorsement, the owner will submit a certified statement of the amounts
included in the mortgage that were expended for cost of issuance, and
the financing agency and trustee will submit a certified statement of
investment income earned, interest payments made during the escrow
period and of the disposition of any investment income. Records of this
cost data will be available to HUD upon request.
24 CFR 811.211 PART 812 -- DEFINITION OF FAMILY AND OTHER RELATED
TERMS; OCCUPANCY BY SINGLE PERSONS
Sec.
812.1 Purpose and applicability.
812.2 Definitions.
812.3 Authorization to admit single persons.
812.4 Effect of authorization on contract provisions.
812.5-812.7 (Reserved)
Authority: Sec. 3, United States Housing Act of 1937 (42 U.S.C.
1437a); sec. 7(d), Department of Housing and Urban Development Act (42
U.S.C. 3535(d)).
Source: 42 FR 23582, May 9, 1977, unless otherwise noted.
24 CFR 812.1 Purpose and applicability.
(a) This part:
(1) Defines the term Family and other related terms; and
(2) Prescribes criteria and procedures for occupancy by Single
Persons who are not otherwise eligible by reason of qualification as an
Elderly Family or as a Displaced Person or as the remaining member of a
tenant family, and incorporates the statutory 15 percent limitation on
assistance for Single Persons.
(b) This part is applicable to all housing assisted under section 8
of the Act, including Section 8-assisted housing for which loans are
made under section 202 of the Housing Act of 1959.
(51 FR 11219, Apr. 1, 1986, as amended at 53 FR 846, Jan. 13, 1988;
53 FR 6601, Mar. 2, 1988)
24 CFR 812.2 Definitions.
The following definitions shall be applicable to all housing assisted
under the Act:
Disabled person. A person who is under a disability as defined in
section 223 of the Social Security Act (42 U.S.C. 423), or who has a
developmental disability as defined in section 102(7) of the
Developmental Disabilities Assistance and Bill of Rights Act (42 U.S.C.
6001(7)).
Displaced person. A person displaced by governmental action, or a
person whose dwelling has been extensively damaged or destroyed as a
result of a disaster declared or otherwise formally recognized under
Federal disaster relief laws.
Elderly family. A Family whose head or spouse (or sole member) is an
Elderly, Disabled, or Handicapped Person. It may include two or more
Elderly, Disabled, or Handicapped Persons living together, or one or
more of these Persons living with one or more Live-in Aides.
Elderly person. A person who is at least 62 years of age.
Family. ''Family'' includes but is not limited to --
(a) An Elderly Family or Single Person as defined in this part,
(b) The remaining member of a tenant family, and
(c) A Displaced Person.
Handicapped person. A person having a physical or mental impairment
that --
(a) Is expected to be of long-continued and indefinite duration,
(b) Substantially impedes the person's ability to live independently,
and
(c) Is of such a nature that this ability could be improved by more
suitable housing conditions.
Live-in aide. A person who resides with an Elderly, Disabled, or
Handicapped Person or Persons and who --
(a) Is determined to be essential to the care and well-being of the
Person(s);
(b) Is not obligated for the support of the Person(s); and
(c) Would not be living in the unit except to provide the necessary
supportive services. (See 813.106(d) for treatment of a Live-on Aide's
income.)
Single person. A person who lives alone or intends to live alone,
and who does not qualify as an Elderly Family or a Displaced Person or
as the remaining member of a tenant family.
(Sec. 7(d), Department of HUD Act (42 U.S.C. 3535(d)); U.S. Housing
Act of 1937 (42 U.S.C. 1437 et seq.); Department of Housing and Urban
Development -- Independent Agencies Appropriation Act 1978, sec. 408;
sec. 214, Housing and Community Dev. Act of 1980 (42 U.S.C. 1436a))
(42 FR 23582, May 9, 1977, as amended at 42 FR 63744, Dec. 19, 1977;
46 FR 56423, Nov. 17, 1981; 51 FR 21307, June 11, 1986; 51 FR 29464,
Aug. 18, 1986; 51 FR 42090, Nov. 21, 1986; 53 FR 846, Jan. 13, 1988;
53 FR 4388, Feb. 16, 1988; 53 FR 6601, Mar. 2, 1988; 53 FR 7734, Mar.
10, 1988; 54 FR 25979, June 20, 1989)
24 CFR 812.3 Authorization to admit single persons.
(a) Requirement for HUD authorization. No PHA or private owner shall
admit Single Persons to any housing assisted under the Act except
pursuant to an authorization issued by the HUD Field Office Director in
accordance with this section, except as provided in paragraph (b)(2) of
this section.
(b) Types of projects eligible for authorization. (1) The HUD Field
Office Director may authorize any PHA or private owner to permit Single
Persons to occupy any project for which the PHA or private owner has the
authority to select tenants or intends to acquire that authority if (i)
the project is one which has been or is intended to be converted to a
low-income or lower-income project assisted under the Act, and (A)
Single Persons are residing in the project at the time of conversion, or
(B) the Director determines that the project is not suitable for
occupancy by the elderly, disabled, or handicapped because of design or
location; or (ii) the project is a low-income or lower-income project
receiving assistance under the Act and is experiencing sustained
vacancies as evidenced by one or more units having been vacant for a
period of sixty days or more and no eligible applicants other than
Single Persons are available.
(2) A PHA administering a Section 8 Existing Housing Program pursuant
to part 882 of this chapter is authorized to issue a Certificate of
Family Participation to a Single Person who otherwise qualifies without
specific authorization from the Field Office Director provided that (i)
no more than 15 percent of the units in the PHA's Existing Housing
Program for which Leases are approved by the PHA are leased by Single
Persons, and (ii) the PHA determines that issuance of a Certificate to a
Single Person is appropriate because rehabilitation of an existing
structure (not assisted pursuant to the Act), resulting in increased
rents, would require the Single Person to either pay more than 25
percent of income towards rent or move out.
(c) Authorization for occupancy by single persons. The Field Office
Director may request the PHA or private owner to submit an application
for authorization to permit Single Persons to occupy a project meeting
criteria of 812.3(b)(1). In addition, any PHA or private owner may
initiate an application for such authorization. The application shall
be submitted to the appropriate HUD Field Office in the form of a letter
which shall include the following:
(1) Identification of the project or projects involved and the
maximum number of units for which the authorization is requested.
(2) A copy of the tenant selection policy which shall govern
occupancy by Single Persons or, in the case of a project receiving
assistance under parts 880, 881, 883, or 886 of this chapter, as
statement that the selection criteria set forth in the Management Plan
applicable to the project will be adhered to in the selection of Single
Persons.
(3) A narrative justification for the request including, in cases
where the request is based on vacancies in a project already receiving
assistance, a description of the PHA's or private owner's efforts to
attract eligible applicants other than Single Persons to the project or
projects involved.
(d) Approval. The HUD Field Office shall notify the PHA or private
owner in writing of the action taken with respect to the application
which may be one of the following:
(1) Approval as requested.
(2) Approval for a lesser number of units or projects than requested
and any other conditions or modifications.
(3) Disapproval, with a statement of the reasons. In the event of
approval, the letter of approval shall constitute the authorization to
the PHA or private owner to permit Single Persons to occupy the
specified number of units under the specified conditions.
(e) Priority to elderly and displaced persons. Notwithstanding any
authorization to permit occupancy by Single Persons, a PHA or private
owner shall extend preference to Elderly Families (including Disabled
Persons and Handicapped Persons) and Displaced Persons over Single
Persons unless the Field Office Director has determined pursuant to
paragraph (b)(1)(i) of this section that the project or portion of such
project is not suitable for occupancy by the elderly, disabled, or
handicapped.
(f) Statutory 15 percent limitations pursuant to Section 3(2)(D) of
the Act. The number of units authorized by the HUD Field Office to be
made available to Single Persons within the area under the jurisdiction
of a PHA shall not exceed 15 percent of the difference between the total
number of units within the jurisdiction assisted under the Act at the
time of the authorization and the number of units under the Existing
Housing Program (24 CFR part 882, subparts A and B) within the
jurisdiction.
(g) This section shall not apply to the Section 8 Moderate
Rehabilitation Program for Single Room Occupancy Dwellings for Homeless
Individuals set forth at 24 CFR part 882, subpart H.
(42 FR 23582, May 9, 1977, as amended at 47 FR 38283, Aug. 31, 1982;
54 FR 46831, Nov. 7, 1989)
24 CFR 812.4 Effect of authorization on contract provisions.
Notwithstanding the provisions of any contract or agreement pursuant
to the Act, defining terms otherwise than as defined in 812.2, PHAs or
private owners are authorized to house Single Persons in accordance with
an authorization by HUD pursuant to this part.
812.5-812.7 (Reserved)
24 CFR 812.4 PART 813 -- DEFINITION OF INCOME, INCOME LIMITS, RENT AND
REEXAMINATION OF FAMILY INCOME FOR THE SECTION 8 HOUSING ASSISTANCE
PAYMENTS PROGRAMS AND RELATED PROGRAMS
Sec.
813.101 Purpose and applicability.
813.102 Definitions.
813.103 Overall income eligibility for admission.
813.104 Admission to units available before October 1, 1981.
813.105 Admission to units available on or after October 1, 1981.
813.106 Annual income.
813.107 Total tenant payment.
813.108 Utility reimbursement.
813.109 Initial determination, verification, and reexamination of
family income and composition.
813.110 Transition provisions.
Authority: Secs. 3, 5(b), 8, 16, United States Housing Act of 1937
(42 U.S.C. 1437a, 1437c, 1437f, 1437n); sec. 7(d), Department of
Housing and Urban Development Act (42 U.S.C. 3535(d)).
Source: 49 FR 19936, May 10, 1984, unless otherwise noted.
24 CFR 813.101 Purpose and applicability.
This part establishes definitions, policies and procedures related to
income limits and the determination of eligibility, income and rent for
applicants and tenants in housing assisted under section 8 of the United
States Housing Act of 1937 (''the 1937 Act''). However, 813.107 and
the definitions of Tenant Rent, Total Tenant Payment, Utility Allowance
and Utility Reimbursement found in 813.102 do not apply to families
assisted under the Housing Voucher Program (24 CFR part 887). The
definitions, policies and procedures also apply to projects that are
assisted with loans under section 202 of the Housing Act of 1959 and
that receive housing assistance payments under section 8 of the 1937 Act
(see 24 CFR part 885, subpart B) or project assistance payments under
section 202(h) of the Housing Act of 1959 (see 24 CFR part 885, subpart
C). (See 24 CFR part 913 for the analogous rule applicable to the
Public Housing program and 24 CFR part 905, subpart D for the rule
applicable to the Indian Housing program.)
(54 FR 25979, June 20, 1989, as amended at 56 FR 921, Jan. 9, 1991)
24 CFR 813.102 Definitions.
Adjusted Income. Annual Income less the following allowances,
determined in accordance with HUD instructions:
(a) $480 for each Dependent;
(b) $400 for any Elderly Family;
(c) For any Family that is not an Elderly Family but has a
Handicapped or Disabled member other than the head of household or
spouse, Handicapped Assistance Expenses in excess of three percent of
Annual Income, but this allowance may not exceed the employment income
received by Family members who are 18 years of age or older as a result
of the assistance to the Handicapped or Disabled Person;
(d) For any Elderly Family
(1) That has no Handicapped Assistance Expenses, an allowance for
Medical Expenses equal to the amount by which the Medical Expenses
exceed three percent of Annual Income;
(2) That has Handicapped Assistance Expenses greater than or equal to
three percent of Annual Income, an allowance for Handicapped Assistance
Expenses computed in accordance with paragraph (c) of this section, plus
an allowance for Medical Expenses that is equal to the Family's Medical
Expenses;
(3) That has Handicapped Assistance Expenses that are less than three
percent of Annual Income, an allowance for combined Handicapped
Assistance Expenses and Medical Expenses that is equal to the amount by
which the sum of these expenses exceeds three percent of Annual Income;
and
(e)(1) Child care expenses; or (2) in the case of families assisted
by Indian housing authorities, the greater of (i) child care expenses,
or (ii) excessive travel expenses, not to exceed $25 per family per
week, for employment or education related travel.
Annual income. See 813.106.
Child care expenses. Amounts anticipated to be paid by the Family
for the care of children under 13 years of age during the period of
which Annual Income is computed, but only where such care is necessary
to enable a Family member to be gainfully employed or to further his or
her education and only to the extent such amounts are not reimbursed.
The amount deducted shall reflect reasonable charges for child care,
and, in the case of child care necessary to permit employment, the
amount deducted shall not exceed the amount of income received from such
employment.
Contract rent. The total amount of rent specified in the Housing
Assistance Payments (HAP) Contract as payable to the owner by the
Family, and by HUD or the PHA on the Family's behalf. In the case of
the rental of only a manufactured home space, Contract Rent is the total
rent specified in the HAP Contract as payable by the PHA and the Family
to the Owner for rental of the space, including fees or charges for
management and maintenance services with respect to the space, but
excluding utility charges for the manufactured home. In the case of a
cooperative, Contract Rent means charges under the occupancy agreement
between the members and the cooperative.
Dependent. A member of the Family household (excluding foster
children) other than the Family head or spouse, who is under 18 years of
age or is a Disabled Person or Handicapped Person, or is a Full-time
Student.
Disabled person. A person who is under a disability as defined in
section 223 of the Social Security Act (42 U.S.C. 423), or who has a
developmental disability as defined in section 102(7) of the
Developmental Disabilities Assistance and Bill of Rights Act (42 U.S.C.
6001(7)).
Elderly family. A Family whose head or spouse (or sole member) is an
Elderly, Disabled, or Handicapped Person. It may include two or more
Elderly, Disabled, or Handicapped Persons living together, or one or
more of these Persons living with one or more Live-in Aides.
Elderly person. A person who is at least 62 years of age.
Family. See definition in part 812 of this chapter.
Full-time student. A person who is carrying a subject load that is
considered full-time for day students under the standards and practices
of the educational institution attended. An educational institution
includes a vocational school with a diploma or certificate program, as
well as an institution offering a college degree.
Gross rent. The total montly cost of housing an eligible Family,
which is the sum of the Contract Rent and any Utility Allowance. In the
case of rental of only a manufactured home space, Gross Rent also
includes the Family's monthly payment to amortize the purchase price of
the manufactured home.
Handicapped Assistance Expenses. Reasonable expenses that are
anticipated, during the period for which Annual Income is computed, for
attendant care and auxiliary apparatus for a Handicapped or Disabled
Family member, and that are necessary to enable a Family member
(including the Handicapped or Disabled member) to be employed, provided
that the expenses are neither paid to a member of the Family nor
reimbursed by an outside source.
Handicapped Person. A person having a physical or mental impairment
that (a) is expected to be of a long-continued and indefinite duration,
(b) substantially impedes his or her ability to live independently, and
(c) is of such a nature that such ability could be improved by more
suitable housing conditions.
Income limits. HUD establishes Very Low-Income and Low-Income limits
that are used to determine if assisted housing program applicants
qualify for admission to HUD-assisted programs. These income limits are
based on HUD estimates for area median family income (using Metropolitan
Statistical Areas or Primary Metropolitan Statistical Areas as defined
by the Office of Management and Budget (OMB), and the Bureau of the
Census definition of family) with specific statutorily permissible
adjustments. If the income limits based on this approach would be less
than if based on the relevant State nonmetropolitan median family income
level, income limits are based on the State nonmetropolitan family
income level. A statutory exception to the use of Metropolitan
Statistical Areas (MSAs) or Primary Metropolitan Statistical Areas
(PMSAs) applies to Westchester County, New York, for which median income
and income limits are computed as if Westchester County were a separate
area, and not included in any MSA or PMSA. Westchester County is
included for purposes of establishing the income limits for the Primary
Metropolitan Statistical Area in which it is located.
Indian. Any person recognized as being an Indian or Alaska Native by
an Indian tribe, the Federal Government, or any State.
Indian Housing Authority. An entity that is authorized to engage in
or assist in the development or operation of lower income housing for
Indians that is established either (a) by exercise of the power of
self-government of an Indian tribe independent of State law; or (b) by
operation of State law providing specifically for housing authorities
for Indians, including regional housing authorities in the State of
Alaska.
Indian tribe. Any tribe, band, pueblo, group, community, or nation
of Indians or Alaska Natives.
Live-in aide. A person who resides with an Elderly, Disabled, or
Handicapped Person or Persons and who --
(a) Is determined to be essential to the care and well-being of the
Person(s);
(b) Is not obligated for the support of the Person(s); and
(c) Would not be living in the unit except to provide the necessary
supportive services.
(See 813.106(d) for treatment of a Live-in Aide's income.)
Lower Income Family. A Family whose Annual Income does not exceed 80
percent of the median income for the area, as determined by HUD with
adjustments for smaller and larger families. HUD may establish income
limits higher or lower than 80 percent of the median income for the area
on the basis of its finding that such variations are necessary because
of the prevailing levels of construction costs or unusually high or low
family incomes.
Medical expenses. Those medical expenses, including medical
insurance premiums, that are anticipated during the period for which
Annual Income is computed, and that are not covered by insurance.
Monthly Adjusted Income. One-twelfth of Adjusted Income.
Monthly income. One-twelfth of Annual Income.
Net Family assets. Net cash value after deducting reasonable costs
that would be incurred in disposing of real property, savings, stocks,
bonds, and other forms of capital investment, excluding interests in
Indian trust land and the equity in a housing cooperative unit or in a
manufactured home in which the family resides. The value of necessary
items of personal property such as furniture and automobiles shall be
excluded. (In cases where a trust fund has been established and the
trust is not revocable by, or under the control of, any member of the
Family or household, the value of the trust fund will not be considered
an asset so long as the fund continues to be held in trust. Any income
distributed from the trust fund shall be counted when determining Annual
Income under 813.106.) In determining Net Family Assets, PHAs and
Owners shall include the value of any business or family assets disposed
of by an applicant or tenant for less than fair market value (including
a disposition in trust, but not in a foreclosure or bankruptcy sale)
during the two years preceding the date of application for the program
or reexamination, as applicable, in excess of the consideration received
therefor. In the case of a disposition as part of a separation or
divorce settlement, the disposition will not be considered to be for
less than fair market value if the applicant or tenant receives
important consideration not measurable in dollars terms.
Owner. The meaning ascribed to such term in the pertinent program
regulations. As used in this part, where appropriate, Owner shall also
include a Borrower, as defined in 24 CFR part 885.
Public Housing Agency. Any State, county, municipality, or other
governmental entity or public body, or agency or instrumentality
thereof, that is authorized to engage in or assist in the development or
operation of lower income housing. The term includes any Indian housing
authority. As used in this part where appropriate, PHA shall include an
Agency as defined in 24 CFR part 883.
Shared housing. A housing unit occupied by two or more families,
consisting of common space for shared use by the occupants of the unit
and (except in the case of a shared one-bedroom unit) separate private
space for each assisted Family. Part 882, subpart C of this chapter
contains special requirements for Shared Housing in the Section 8
Certificate program and part 887, subpart K of this chapter contains
special requirements for Shared Housing in the Housing Voucher Program.
State. Any of the several States of the United States of America, the
District of Columbia, the Commonwealth of Puerto Rico, the territories
and possessions of the United States, the Trust Territory of the Pacific
Islands, and Indian tribes.
Tenant Rent. The amount payable monthly by the Family as rent to the
Owner (including a PHA). Where all utilities (except telephone) and
other essential housing services are supplied by the Owner, Tenant Rent
equals Total Tenant Payment. Where some or all utilities (except
telephone) and other essential housing services are not supplied by the
Owner and the cost thereof is not included in the amount paid as rent to
the Owner, Tenant Rent equals Total Tenant Payment less the Utility
Allowance. In the case of a Family renting only a manufactured home
space, Tenant Rent equals the space rental minus the Housing Assistance
Payment, as defined in the applicable program regulation.
Total Tenant Payment. The portion of the Gross Rent payable by an
eligible Family participating in a program covered by this part,
determined in accordance with 813.107.
Utility Allowance. If the cost of utilities (except telephone) and
other housing services for an assisted unit is not included in the
Contract Rent but is the responsibility of the Family occupying the
unit, an amount equal to the estimate made or approved by a PHA or HUD
under applicable sections of these regulations (see 24 CFR parts 880,
881, 882, 883, 884, 885, and 886) of the monthly costs of a reasonable
consumption of such utilities and other services for the unit by an
energy-conservative household of modest circumstances consistent with
the requirements of a safe, sanitary, and healthful living environment.
(In the case of shared housing, the amount of the Utility Allowance for
an assisted Family is calculated by multiplying the Utility Allowance
for the entire unit by the ratio derived by dividing the number of
bedrooms in the Assisted Family's private space by the number of
bedrooms in the entire unit. In the case of an assisted individual
sharing a one-bedroom unit with another person, the amount of the
Utility Allowance for the assisted individual is one-half of the Utility
Allowance for the entire unit).
Utility reimbursement. The amount, if any, by which the Utility
Allowance exceeds the Family's Total Tenant Payment.
Very-Low-Income Family. A Lower Income Family whose Annual Income
does not exceed 50 percent of the median income for the area, as
determined by HUD, with adjustments for smaller and larger families.
HUD may establish income limits higher or lower than 50 percent of the
median income for the area on the basis of its finding that such
variations are necessary because of unusually high or low family
incomes.
Welfare assistance. Welfare or other payments to families or
individuals, based on need, that are made under programs funded,
separately or jointly, by Federal, State or local governments.
(49 FR 19936, May 10, 1984; 49 FR 26718, June 29, 1984, as amended
at 50 FR 25951, June 24, 1985; 50 FR 39096, Sept. 27, 1985; 51 FR
21307, June 11, 1986; 52 FR 34113, Sept. 9, 1987; 53 FR 4388, Feb. 16,
1988; 53 FR 7734, Mar. 10, 1988; 53 FR 34412, Sept. 6, 1988; 53 FR
37500, Sept. 26, 1988; 54 FR 25980, June 20, 1989; 56 FR 57489, Nov.
12, 1991)
24 CFR 813.103 Overall income eligibility for admission.
No Family other than a Lower Income Family shall be eligible for
admission to a program covered by this part.
24 CFR 813.104 Admission to units available before October 1, 1981.
(a) General. Section 16(a) of the 1937 Act (42 U.S.C. 1437n)
provides that not more than 25 percent of the dwelling units that were
available for occupancy under public housing Annual Contributions
Contracts and Section 8 HAP Contracts before October 1, 1981 and that
are leased on or after that date shall be available for leasing by Lower
Income Families other than Very Low-Income Families. HUD reserves the
right to limit the admission of Lower Income Families other than Very
Low-Income Families to these units.
(b) Reporting. PHAs (including State Housing Finance Agencies) and
Owners shall comply with HUD-prescribed reporting requirements that will
permit HUD to maintain reasonably current data as to
(1) The number of dwelling units that are subject to paragraph (a) of
this section and are encompassed by the categories specified in
paragraph (a) of 813.105 for which the effective date of the HAP
Contract is before October 1, 1981, as well as dwelling units assisted
under the Section 10(c) and Section 23 Programs;
(2) The number of units that are subject to paragraph (a) of this
section and are occupied by Families for whom HAP Contracts were
effective under part 882, subpart B (Section 8 Housing Assistance
Payments Program -- Existing Housing (Finders-Keepers)), before October
1, 1981; and
(3) The number of Families occupying units described in paragraph
(b)(1) of this section that were admitted to such units on or after July
1, 1984 and were not Very Low-Income Families when admitted.
(Approved by the Office of Management and Budget under control number
2502-0204)
(49 FR 19936, May 10, 1984; 49 FR 26718, June 29, 1984)
24 CFR 813.105 Admission to units available on or after October 1,
1981.
(a) General. Section 16(b) of the 1937 Act (42 U.S.C. 1437n)
provides that not more than five percent of the dwelling units that
initially become available for occupancy under public housing Annual
Contributions Contracts and Section 8 HAP Contracts on or after October
1, 1981 shall be available for leasing by Lower Income Families other
than Very Low-Income Families. Except with the prior approval of HUD,
no Lower Income Family other than a Very Low-Income Family shall, after
July 1, 1984, be approved for admission to any unit assisted under the
following programs for which the effective date of the HAP Contract is
October 1, 1981 or later:
(1) Part 880 (Section 8 Housing Assistance Payments Program for New
Construction);
(2) Part 881 (Section 8 Housing Assistance Payments Program for
Substantial Rehabilitation);
(3) Part 882, subparts D and E (Section 8 Housing Assistance Payments
Program, Moderate Rehabilitation);
(4) Part 883 (Section 8 Housing Assistance Payments Program -- State
Housing Agencies);
(5) Part 884 (Section 8 Housing Assistance Payments Program, New
Construction Set-Aside for Section 515 Rural Rental Housing Projects);
(6) Part 885 (Loans for Housing for the Elderly or Handicapped);
(7) Part 886, subpart A (Section 8 Housing Assistance Payments
Program -- Special Allocations (Loan Management Set-Aside)); or
(8) Part 886, subpart B or C (Section 8 Housing Assistance Payments
Program -- Special Allocations (Disposition of HUD-Owned Projects)).
(b) Request for exception. A request by a PHA or Owner for approval
of admission of Lower Income Families other than Very Low-Income
Families to units described in paragraph (a) of this section must state
the basis for requesting the exception and provide supporting data.
Bases for exceptions that may be considered by HUD include the
following:
(1) Lower Income Families that would otherwise be displaced from
Section 8 Substantial Rehabilitation or Moderate Rehabilitation
projects;
(2) Lower Income Families that are displaced as a result of Rental
Rehabilitation or Development activities assisted under Section 17 of
the 1937 Act, or as a result of activities assisted under the Rental
Rehabilitation Demonstration Program;
(3) Need for admission of a broader range of tenants to preserve the
financial or management viability of a project because there is an
insufficient number of potential applicants who are Very Low-Income
Families;
(4) Commitment of an Owner to attaining occupancy by Families with a
broad range of incomes, as evidenced in the application for development.
An application citing this basis should be supported by evidence that
the Owner is pursuing this goal throughout its assisted projects in the
community; and
(5) Project supervision by a State Housing Finance Agency having a
policy of occupancy by families with a broad range of incomes, supported
by evidence that the Agency is pursuing this goal throughout its
assisted projects in the community, or a project with financing under
Section 11(b) of the 1937 Act or under Section 103 of the Internal
Revenue Code.
(c) Specific limitation on certificates. (1) Except with the prior
approval of HUD, no Certificate of Family Participation shall be granted
under part 882, Existing Housing, subparts A and B or F, of this chapter
on or after July 1, 1984 to any Lower Income Family that is not a Very
Low-Income Family, except a Family (i) that resided in a unit with
assistance under subparts A and B or F before that date, (ii) whose
participation in the Program has been continuous, and (iii) that wants
to move to another dwelling unit with continued participation in the
Section 8 Existing Housing Program under 882.209(m).
(2) A request by a PHA for HUD approval to grant a Certificate of
Family Participation under part 882, subparts A and B or F, of this
chapter on or after July 1, 1984 to Lower Income Families other than
Very Low-Income Families must state the basis for requesting the
exception and provide supporting data. One basis for exception that may
be considered by HUD is that Lower Income Families would otherwise be
displaced or are actually displaced as a result of Rental Rehabilitation
or Development activities assisted under section 17 of the 1937 Act or
as a result of activities assisted under the Rental Rehabilitation
Demonstration Program.
(d) Action on request for exception. Whether to grant any request
for exception is a matter committed by law to HUD's sole discretion, and
no implication is intended to be created that the Department will seek
to grant approvals up to the maximum limits permitted by statute, nor is
any presumption of an entitlement to an exception created by the
specification of certain grounds for exception that HUD may consider.
HUD will review exceptions granted to Owners or PHAs at regular
intervals. HUD may withdraw permission to exercise those exceptions for
program applicants at any time that exceptions are not being used or
after a periodic review, based on the findings of the review.
(e) Reporting. PHAs and Owners shall comply with HUD-prescribed
reporting requirements that will permit HUD to maintain reasonably
current data as to:
(1) The number of dwelling units that are subject to paragraph (a) of
this section;
(2) The number of dwelling units that are subject to paragraph (c) of
this section for which HAP Contracts were first effective under part
882, subpart B of this chapter on or after October 1, 1981 (including
new HAP Contracts for Families for whom HAP Contracts had been in effect
before that date for a different unit);
(3) The number of Families occupying units described in paragraph
(e)(1) of this section that were admitted to such units on or after July
1, 1984 and were not Very Low-Income Families when admitted, and
(4) The number of Families occupying units described in paragraph
(e)(2) of this section with Certificates issued on or after July 1, 1984
and were not Very Low-Income Families when such Certificates were
granted.
(The information collection requirements contained in paragraph (b)
and (c)(2) were approved by the Office of Management and Budget under
control number 2502-0315; the requirements contained in paragraph (e)
were approved under control number 2502-0204)
(49 FR 19936, May 10, 1984; 49 FR 26718, June 29, 1984, as amended
at 50 FR 39097, Sept. 27, 1985; 53 FR 34412, Sept. 6, 1988)
24 CFR 813.106 Annual income.
(a) Annual income is the anticipated total income from all sources
received by the Family head and spouse (even if temporarily absent) and
by each additional member of the Family, including all net income
derived from assets for the 12-month period following the effective date
of certification of income, exclusive of certain types of income as
provided in paragraph (c) of this section.
(b) Annual Income includes, but is not limited to:
(1) The full amount, before any payroll deductions, of wages and
salaries, overtime pay, commissions, fees, tips and bonuses, and other
compensation for personal services;
(2) The net income from operation of a business or profession.
Expenditures for business expansion or amortization of capital
indebtness shall not be used as deductions in determining net income.
An allowance for depreciation of assets used in a business or profession
may be deducted, based on straight line depreciation, as provided in
Internal Revenue Service regulations. Any withdrawal of cash or assets
from the operation of a business or profession will be included in
income, except to the extent the withdrawal is reimbursement of cash or
assets invested in the operation by the Family;
(3) Interest, dividends, and other net income of any kind from real
or personal property. Expenditures for amortization of capital
indebtedness shall not be used as a deduction in determining net income.
An allowance for depreciation is permitted only as authorized in
paragraph (b)(2) of this section. Any withdrawal of cash or assets from
an investment will be included in income, except to the extent the
withdrawal is reimbursement of cash or assets invested by the Family.
Where the Family has Net Family Assets in excess of $5,000, Annual
Income shall include the greater of the actual income derived from all
Net Family Assets or a percentage of the value of such Assets based on
the current passbook savings rate, as determined by HUD;
(4) The full amount of periodic payments received from social
security, annuities, insurance policies, retirement funds, pensions,
disability or death benefits and other similar types of periodic
receipts, including a lump-sum payment for the delayed start of a
periodic payment;
(5) Payments in lieu of earnings, such as unemployment and disability
compensation, worker's compensation and severance pay (but see paragraph
(c)(3) of this section);
(6) Welfare Assistance. If the Welfare Assistance payment includes
an amount specifically designated for shelter and utilities that is
subject to adjustment by the Welfare Assistance agency in accordance
with the actual cost of shelter and utilities, the amount of Welfare
Assistance income to be included as income shall consist of:
(i) The amount of the allowance or grant exclusive of the amount
specifically designated for shelter or utilities, plus
(ii) The maximum amount that the Welfare Assistance agency could in
fact allow the Family for shelter and utilities. If the Family's
Welfare Assistance is ratably reduced from the standard of need by
applying a percentage, the amount calculated under this paragraph
(b)(6)(ii) shall be the amount resulting from one application of the
percentage;
(7) Periodic and determinable allowances, such as alimony and child
support payments, and regular contributions or gifts received from
persons not residing in the dwelling;
(8) All regular pay, special pay and allowances of a member of the
Armed Forces (but see paragraph (c)(7) of this section); and
(9) Any earned income tax credit to the extent it exceeds income tax
liability.
(c) Annual income does not include the following:
(1) Income from employment of children (including foster children)
under the age of 18 years;
(2) Payments received for the care of foster children;
(3) Lump-sum additions to Family assets, such as inheritances,
insurance payments (including payments under health and accident
insurance and worker's compensation), capital gains and settlement for
personal or property losses (but see paragraph (b)(5) of this section);
(4) Amounts received by the Family, that are specifically for, or in
reimbursement of, the cost of medical expenses for any Family member;
(5) Income of a live-in aide, as defined in 813.102;
(6) Amounts of educational scholarships paid directly to the student
or to the educational institution, and amounts paid by the Government to
a veteran, for use in meeting the costs of tuition, fees, books,
equipment, materials, supplies, transportation, and miscellaneous
personal expenses of the student. Any amount of such scholarship or
payment to a veteran not used for the above purposes that is available
for subsistence is to be included in income;
(7) The special pay to a Family member serving in the Armed Forces
who is exposed to hostile fire;
(8)(i) Amounts received under training programs funded by HUD;
(ii) Amounts received by a Disabled person that are disregarded for a
limited time for purposes of Supplemental Security Income eligibility
and benefits because they are set aside for use under a Plan to Attain
Self-Sufficiency (PASS); or
(iii) Amounts received by a participant in other publicly assisted
programs which are specifically for or in reimbursement of out-of-pocket
expenses incurred (special equipment, clothing, transportation, child
care, etc.) and which are made solely to allow participation in a
specific program;
(9) Temporary, nonrecurring or sporadic income (including gifts); or
(10) Amounts specifically excluded by any other Federal statute from
consideration as income for purposes of determining eligibility or
benefits under a category of assistance programs that includes
assistance under the United States Housing Act of 1937. A notice will
be published in the Federal Register and distributed to PHAs and owners
identifying the benefits that qualify for this exclusion. Updates will
be published and distributed when necessary.
(d) If it is not feasible to anticipate a level of income over a
12-month period, the income anticipated for a shorter period may be
annualized, subject to a redetermination at the end of the shorter
period.
(49 FR 19936, May 10, 1984, as amended at 50 FR 29591, June 24, 1985;
50 FR 39097, Sept. 27, 1985; 51 FR 21308, June 11, 1986; 52 FR 34113,
Sept. 9, 1987; 53 FR 4388, Feb. 16, 1988; 53 FR 7734, Mar. 10, 1988)
24 CFR 813.107 Total tenant payment.
(a) Total tenant payment for families whose initial lease is
effective on or after August 1, 1982. Total Tenant Payment shall be the
highest of the following, rounded to the nearest dollar:
(1) 30 percent of Monthly Adjusted Income;
(2) 10 percent of Monthly Income; or
(3) If the Family receives Welfare Assistance from a public agency
and a part of such payments, adjusted in accordance with the Family's
actual housing costs, is specifically designated by such agency to meet
the Family's housing costs, the monthly portion of such payments which
is so designated. If the Family's Welfare Assistance is ratably reduced
from the standard of need by applying a percentage, the amount
calculated under this paragraph (a)(3) shall be the amount resulting
from one application of the percentage.
(b) Total tenant payment for families whose initial lease was
effective before August 1, 1982. Total Tenant Payment shall be
calculated in accordance with paragraph (a) of this section, except that
instead of 30 percent, the percentage applied to Monthly Adjusted Income
shall be in accord with the following table:
(c) Special conditions. (1) For purposes of this section, a Family
is considered to be a Family whose initial lease was effective before
August 1, 1982 only if it satisfies one of the following conditions:
(i) The Family resided on July 31, 1982 in a unit under lease with
assistance under the Section 8, Section 10(c), Section 23, Public
Housing or Indian Housing Program, and its assistance has been
continuous thereafter in the same project; or
(ii) The Family resided in a unit under lease in a HUD-owned project
paying a below market rent at the time HUD sold the project; received
assistance under the Section 8 Program immediately after sale; and the
Family's assistance has been continuous thereafter in the same project;
or
(iii) The Family resided on April 30, 1983 in a unit under lease with
assistance under the Rent Supplement Program (Section 101 of the Housing
and Urban Development Act of 1965), or the Section 236 Rental Assistance
Program (Section 236(f)(2) of the National Housing Act); continued to
receive such assistance until the Family was converted to assistance
under the Section 8 Program; and after conversion its assistance has
been continuous in the same project; or
(iv) The Family resided in a unit under lease with assistance under
the Rent Supplement Program or the Section 236 Rental Assistance
Program; was converted to assistance under the Section 8 Program on or
after August 1, 1982 and before May 1, 1983; and continued to receive
assistance under the Rent Supplement or the Section 236 Rental
Assistance Program until the time of conversion, and after conversion
its assistance has been continuous in the same project.
(2) So long as a Family whose initial lease was effective prior to
August 1, 1982, continues to reside in the same Project, its Total
Tenant Payment shall not be increased by more than 10 percent during any
12-month period as a result of: (i) Application of the percentages in
subsection (b) of this section, and (ii) application of the changes in
the definitions contained in 813.102 and 813.106 from definitions of
comparable terms in regulations in effect immediately prior to July 1,
1984.
(3) So long as a Family whose initial lease was effective on or after
August 1, 1982, but which was in occupancy on June 30, 1984, continues
to reside in the same project, its Total Tenant Payment shall not be
increased by more than 10 percent during any 12-month period as a result
of application of the changes in the definitions contained in 813.102
and 813.106 from definitions of comparable terms in regulations in
effect immediately prior to July 1, 1984.
(4) In the case of a Family receiving rental assistance under Section
521(a) of the Housing Act of 1949 on November 30, 1983, whose assistance
is converted to Section 8 assistance on or after such date, the Total
Tenant Payment payable by such Family shall not be increased by more
than 10 percent during any 12-month period as a result of (i) such
conversion, and (ii) if such Family was in occupancy on June 30, 1984,
and continues to reside in the same project, application of the changes
in the definitions contained in 813.102 and 813.106 from definitions
of comparable terms in regulations in effect immediately prior to July
1, 1984.
(5) This paragraph (c)(5) applies to any Family that was converted to
Section 8 assistance from assistance under the Rent Supplement Program,
the Section 236 Rental Assistance Program, or the Section 23 Program on
or after October 1, 1984, whose head of household, spouse or sole member
was 62 years of age or older on the date of conversion. So long as such
Family continues to reside in the same project, its Total Tenant Payment
shall not be increased by more than 10 percent during any 12-month
period as a result of such conversion.
(6) This paragraph (c)(6) applies to any Family that was converted to
Section 8 assistance from assistance under the Rent Supplement Program,
the Section 236 Rental Assistance Program, or the Section 23 Program on
or after October 1, 1981, and before October 1, 1984, whose head of
household, spouse or sole member was 62 years of age or older on the
date of conversion and that continued to reside in the same project on
November 30, 1983. At the first regularly scheduled or interim
reexamination for such Family using the 1984 revised definitions of
income, the PHA or Owner shall recompute the contribution due from such
Family for the period from December 1, 1983, or the date of conversion,
whichever is later, to the effective date of such reexamination. Such
recomputation shall be based on an assumption that the Family's
contribution immediately prior to conversion was the lesser of (i) the
actual contribution charged to the Family, or (ii) 25% of such Family's
Annual Income After Allowances as determined as of the date of
conversion or, if no reexamination was conducted as of such date, as
determined at the first reexamination thereafter. The contribution of
such Family for periods following conversion and prior to the effective
date of the first reexamination using the 1984 revised definitions of
income, shall be recomputed on a basis which provides that such
contribution is not increased by more than 10% during any 12-month
period as a result of conversion. If the contribution actually charged
to such Family during the period commencing December 1, 1983 (or the
date of conversion, if later) exceeds the maximum amount chargeable
according to such recomputation, the excess amount collected shall first
be offset against any amounts due from the Family to the PHA or Owner
and any remaining balance shall be the amount due to the Family. This
amount due the Family may be paid to the Family, or it may be applied as
a credit to the Tenant Rent due immediately after the effective date of
such reexamination. If the amount of any such credit to a Family
exceeds 25 percent of the Total Tenant Payment due from such Family,
such credit may be applied in not more than four installments. So long
as such Family continues to reside in the same project, its Total Tenant
Payment for periods commencing on the effective date of the first
reexamination using the 1984 revised definitions of income, shall not be
increased by more than 10 percent during any 12-month period as a result
of the conversion, and application of the changes in the definitions
contained in 813.102 and 813.106 from definitions of comparable terms
in regulations in effect immediately prior to July 1, 1984. If a Family
to which this paragraph (c)(6) would otherwise apply vacates a unit
after November 30, 1983, and before the first reexamination using the
1984 revised definitions of income, the PHA or Owner will notify the
Family of the possibility of a rent adjustment for the period commencing
December 1, 1983 (or the date of conversion, if later). In order to
obtain a refund, such a Family must submit (within 60 days of receiving
the notice) a request therefor, including a current address to which any
refund can be sent. For any Family making such a timely request, the
PHA or Owner will make all calculations necessary to determine whether
an adjustment is due to the Family under this paragraph (c)(6) and, if
so, the amount of any such adjustment will first be offset against any
amounts due from the Family and any Section 8 damage and rent claims HUD
has paid to the Owner on the Family's behalf, and any balance will be
refunded to the Family.
(7) For the purposes of paragraphs (c) (1) through (6) of this
section, the ''same project'' includes --
(i) For the Public Housing, Section 10(c), Section 23, and Section 8
Existing Housing (Finders-Keepers) and Moderate Rehabilitation Programs,
units in the same program of a PHA and, in the case of an involuntary
move, units in any of a PHA's programs; and
(ii) For all other programs, units in buildings located in adjacent
sites that are managed as one project.
(8) The limitations contained in paragraphs (c) (2) through (6) of
this section do not apply to portions of increases in Total Tenant
Payment which are attributable to increases in income or changes in
Family composition or circumstances unrelated to the factors referred to
in paragraphs (c) (2) through (6) of this section.
(9) The limitations contained in paragraphs (c) (2) through (6) of
this section do not apply to Families subject to paragraph (a)(3) of
this section when the welfare agency includes as the housing component
of the Family's grant an amount equal to the Total Tenant Payment,
without reduction.
(10) In order to facilitate administration of the limitations
provided in paragraphs (c) (2) through (4) and (6) of this section, upon
any regular or interim reexamination of a Family which was in occupancy
on June 30, 1984, the PHA or Owner shall continue to collect and verify
information which would have been taken into account in calculating
Annual Income and Annual Income After Allowances, as defined in
regulations in effect immediately prior to July 1, 1984, as if such
regulations were in effect at the date of such reexamination.
(11) The limitations prescribed in paragraphs (c) (2) through (6), of
this section, shall be applied in accordance with procedures prescribed
by HUD.
(Approved by the Office of Management and Budget under control number
2502-0204)
(49 FR 19936, May 10, 1984; 49 FR 26718, June 29, 1984, as amended
at 50 FR 24621, June 12, 1985)
24 CFR 813.108 Utility reimbursement.
Where applicable, the Utility Reimbursement shall be paid to the
Family in the manner provided in the pertinent program regulation. If
the Family and the utility company consent, a PHA or Owner may pay the
Utility Reimbursement jointly to the Family and the utility company, or
directly to the utility company.
24 CFR 813.109 Initial determination, verification, and reexamination
of family income and composition.
(a) Responsibility for initial determination and reexamination. The
owner or PHA shall be responsible for determination of eligibility for
admission, for determination of Annual Income, Adjusted Income and Total
Tenant Payment, and for reexamination of family income and composition
at least annually, as provided in pertinent program regulations and
handbooks (see, e.g., part 880, subpart F, and part 881, subpart F,
which, for purposes of this part, shall apply (as appropriate) to
projects developed under part 885, subparts B and C; part 882, subparts
B and E; part 883, subpart G; part 884, subpart B; part 886, subparts
A and C; part 887, subpart H; and for the disclosure and verification
of Social Security Numbers. As used in this part, the ''effective date''
of an examination or reexamination refers to:
(1) In the case of an examination for admission, the effective date
of the initial occupancy; and
(2) In the case of a reexamination of an existing tenant, the
effective date of the redetermined housing assistance payment with
respect to the Housing Voucher program (part 887) and the effective date
of the redetermined Total Tenant Payment.
(b) Verification. As a condition of housing assistance under any
program covered by this part, the PHA or Owner shall require the Family
head and other such Family members as it designates to execute a
HUD-approved release and consent (including any release and consent as
required under part 760) authorizing any depository or private source of
income, or any Federal, State or local agency, to furnish or release to
the PHA or Owner and to HUD such information as the PHA, Owner or HUD
determines to be necessary. The PHA or Owner shall also require the
Family to submit directly documentation determined to be necessary.
Information or documentation shall be determined to be necessary if it
is required for purposes of determining or auditing a Family's
eligibility to receive housing assistance, for determining the Family's
Adjusted Income or Tenant Rent, for verifying related income, or for
monitoring compliance with equal opportunity requirements. The use or
disclosure of information obtained from a Family or from another source
pursuant to this release and consent shall be limited to purposes
directly connected with administration of this part 813 or the housing
program under which the Family is receiving or applying for assistance.
(Approved by the Office of Management and Budget under control number
2502-0204 and 2577-0083)
(49 FR 19936, May 10, 1984, as amended at 53 FR 34412; Sept. 6,
1988, 53 FR 36450, Sept. 20, 1988; 54 FR 39702, Sept. 27, 1989; 55 FR
11905, Mar. 30, 1990; 56 FR 7535, Feb. 22, 1991)
24 CFR 813.110 Transition provision.
(a) Delayed implementation for rent calculations. This part is
effective on July 1, 1984. However, implementation of the definitions
of Annual Income and Adjusted Income contained in this part shall take
place in time to be applied to examinations for admission and
reexaminations effective on or after August 1, 1985.
(b) Examinations and reexaminations effective before August 1, 1985.
In the case of the following categories of tenants, the PHA or Owner
shall conduct the examination or reexamination as scheduled and may
determine the tenant's contribution in accordance with regulations and
procedures in effect immediately before July 1, 1984 (including the
percentage to be applied to adjusted income in the case of such tenants
pursuant to 813.107 based on the effective date of the examination or
reexamination):
(1) Any current tenant for whom the examination or regularly
scheduled reexamination process started on or after July 1, 1984, and
whose examination or reexamination was effective before August 1, 1985;
(2) Current tenants for whom interim reexaminations have effective
dates during that period; and
(3) Applicants for admission whose initial examinations have an
effective date during that period.
(c) Admissions. On or after July 1, 1984, and before August 1, 1985,
for purposes of application of 813.103 and 813.105, a Family will be
determined to be a Lower-Income Family or a Very Low-Income Family on
the basis of a determination of Annual Income made in accordance with
regulations and procedures in effect immediately before July 1, 1984.
The admission of any Family on such basis before August 1, 1985, shall
not be effected by a recalculation of Annual Income pursuant to this
part effective on or after August 1, 1985.
(d) Admissions and reexaminations effective on or after August 1,
1985. All regular or interim reexaminations, or examinations for
admission, effective on or after August 1, 1985, and determinations of
Annual Income, Adjusted Income, Total Tenant Payment and Tenant Rent
based thereon, shall be made in accordance with the requirements of this
part.
(e) Optional interim reexamination. Each PHA or Owner shall have the
right, at its discretion, to require any Family that paid an assisted
rent on or after October 1, 1984, that was based on the rule in effect
before July 1, 1984, to undergo an interim reexamination, and
determination of Annual Income, Adjusted Income, Total Tenant Payment,
and Tenant Rent based thereon, in accordance with the requirements of
this part, before the next regularly scheduled reexamination for such
Family.
(f) Calculation of retroactive adjustment. For all Families, other
than those whose examination for admission was based on the revised
definitions of Annual Income and Adjusted Income established in this
part, the PHA or Owner shall make an additional calculation at the time
of the first regular or interim reexamination using the 1984 revisions,
with respect to the period between October 1, 1984, and the effective
date of such reexamination. An adjusted tenant rental payment shall be
calculated for such period, in accordance with HUD administrative
instructions, on the basis of:
(1) The Annual Income determined for such period in accordance with
regulations and procedures in effect immediately before July 1, 1984;
(2) The Dependent and Elderly Family deductions prescribed by
813.102;
(3) Estimated Medical Expenses and Handicapped Assistance Expenses as
prescribed in HUD administrative instructions implementing the
definition of Adjusted Income in 813.102, as adapted to conform to
section 102(b)(3) of the Housing and Community Development Technical
Amendments Act of 1984;
(4) Unusual Expenses taken into account in the calculation of Annual
Income After Allowances for such period in accordance with regulations
and procedures in effect immediately before July 1, 1984, but only if
such unusual expenses qualify as Child Care Expenses as defined in
813.102.
(5) The percentage applied to Monthly Adjusted Income in accordance
with regulations and procedures in effect immediately before July 1,
1984, to determine the rental payment actually charged during such
period.
(g) Actual adjustments. (1) If the adjusted tenant rental payment
calculated under paragraph (f) of this section is higher than or equal
to the tenant payment actually charged for the applicable period, no
adjustment shall be made. If the adjusted tenant rental payment
calculated under paragraph (f) of this section is lower than the tenant
rental payment actually charged for the applicable period, the amount of
such difference shall first be offset against any amounts due from the
Family to the PHA or Owner and any remaining balance shall be the amount
due to the Family. This amount due the Family may be paid to the
Family; or it may be applied as a credit to the Tenant Rent due
immediately after the effective date of the reexamination; or, if the
amount due to a Family exceeds 25 percent of the Total Tenant Payment
due from such Family, it may be applied as a credit in not more than
four installments.
(2) If a Family vacates a unit on or after October 1, 1984, and
before the first reexamination based on the revised definitions of
Annual Income and Adjusted Income established in this part, the PHA or
Owner will notify the Family of the possibility of a rent adjustment for
the period commencing October 1, 1984, subject to the requirement of a
request therefor (made not later than 60 days after the owner sends the
notice) together with notification of a current address to which any
refund can be sent. For any Family making such a timely request, the
PHA or Owner will make all calculations necessary to determine whether
an adjustment is due to the Family pursuant to this paragraph (g) and,
if so, the amount of any such adjustment will first be offset against
any amounts due from the Family to the PHA or Owner and any Section 8
damage or rent claims HUD has paid on the Family's behalf, and any
balance will be refunded to the Family.
(h) Increased subsidy needs. If a PHA or Owner notifies HUD that its
subsidy needs exceed the amount available under its contract with HUD as
a result of reduced rental income caused by implementation of this part,
HUD will follow regular procedures appropriate to the circumstances.
(50 FR 24621, June 12, 1985)
24 CFR 813.110 PART 842 -- PET OWNERSHIP IN HOUSING FOR THE ELDERLY OR
HANDICAPPED
Authority: Sec. 227(b), Housing and Urban-Rural Recovery Act of
1983, 12 U.S.C. 1701r-1; sec. 7(d), Department of Housing and Urban
Development Act, 42 U.S.C. 3535(d).
24 CFR 842.1 Pet ownership in housing for the elderly or handicapped.
(a) Section 227 of the Housing and Urban-Rural Recovery Act of 1983
(12 U.S.C. 1701r-1) provides that no owner or manager of federally
assisted rental housing for the elderly or handicapped may as a
condition of tenancy or otherwise, prohibit or prevent tenants of such
housing from owning or keeping common household pets in their units or
restrict or discriminate against persons in connection with admission
to, or continued occupancy of, such housing because they own common
household pets. The statute directs HUD to issue regulations necessary
to ensure compliance with these provisions and to ensure attaining the
goal of providing decent, safe, and sanitary housing for the elderly or
handicapped. The statute also requires that these regulations establish
guidelines under which owners and managers may prescribe reasonable
rules for the keeping of pets by tenants and must consult with tenants
in prescribing the rules.
(b) Part 243 of this title implements section 227 as it pertains to
the housing programs administered by the Assistant Secretary for
Housing-Federal Housing Commissioner. The provisions of part 243 apply
to projects assisted under the programs contained in this chapter VIII
that meet the definition of project for the elderly or handicapped
contained in 24 CFR 243.3(c).
(51 FR 43302, Dec. 1, 1986; 52 FR 17949, May 13, 1987)
24 CFR 842.1 PART 850 -- HOUSING DEVELOPMENT GRANTS
24 CFR 842.1 Subpart A -- General Provisions
Sec.
850.1 Scope and applicability.
850.3 Definitions.
24 CFR 842.1 Subpart B -- Eligibility and Use of Grant Funds
850.11 General.
850.13 Designated eligible area.
850.15 Special housing needs and neighborhood preservation projects.
850.17 Eligible and ineligible uses of grant funds.
24 CFR 842.1 Subpart C -- Application Procedures and Program
Requirements
850.31 Application submission, review and selection process --
general.
850.33 Submission requirements.
850.35 Other program requirements.
850.37 Threshold requirements.
850.39 Selection of projects for preliminary funding approval.
24 CFR 842.1 Subpart D -- Post Preliminary Approval Requirements and
Grant Administration
850.61 Grant agreement and overall limit on grant amounts.
850.63 Conditions precedent to drawdown of funds.
850.65 Method of payment.
850.67 Cash withdrawals.
850.69 Financial management systems.
850.71 Program income.
850.73 Audit.
850.75 Reporting requirements.
850.77 Retention of records.
850.79 Project closeout.
24 CFR 842.1 Subpart E -- Program Performance
850.101 Review of grantee's performance.
850.103 Corrective and remedial actions.
850.105 Reduction or termination of grant.
850.107 Claim for money.
24 CFR 842.1 Subpart F -- Project Management
850.151 Project restrictions.
850.153 Rent control.
850.155 Securing owner's responsibilities.
Authority: Sec. 17, U.S. Housing Act of 1937 (42 U.S.C. 1437o);
sec. 7(d) of the Department of Housing and Urban Development Act (42
U.S.C. 3535(d)).
Source: 49 FR 24641, June 14, 1984, unless otherwise noted.
24 CFR 842.1 Subpart A -- General Provisions
24 CFR 850.1 Scope and applicability.
This part implements the Housing Development Grant Program contained
in section 17 of the U.S. Housing Act of 1937. The Program authorizes
the Secretary of Housing and Urban Development to make housing
development grants to support the new construction or substantial
rehabilitation of real property to be used primarily for residential
rental purposes. Grants are made on a competitive basis to cities,
urban counties, and States acting on behalf of units of general local
government. Grants may be made for projects located in areas determined
by the Secretary to be experiencing a severe shortage of decent rental
housing opportunities for families and individuals without other
reasonable and affordable housing alternatives in the private market, or
in other areas where the Secretary determines that a project involving
assistance for other than moderate rehabilitation is necessary to meet a
special housing need or to advance a particular neighborhood
preservation purpose. Grantees may use housing development grants to
provide grants, loans, interest reduction payments, or other comparable
assistance to support new construction or substantial rehabilitation
projects. At least 20 percent of the units in assisted projects must be
occupied, or available for occupancy, by lower income households for a
period of 20 years.
24 CFR 850.3 Definitions.
Applicant means a city, urban county, or State acting on behalf of a
unit of general local government located within the State that submits
an application for a housing development grant under this part. A unit
of general local government whose population is included in that of an
urban county for purposes of section 102 of the Housing and Community
Development Act of 1974 is eligible to participate in the Housing
Development Grant Program as provided in this part, notwithstanding such
inclusion.
Chief executive officer of a governmental entity means the elected
official, or the legally designated official, who has the primary
responsibility for the conduct of that entity's governmental affairs.
Examples of the ''chief executive officer'' are: the elected mayor of a
municipality, the elected county executive of a county, the chairman of
a county commission or board in a county that has no elected county
executive, the official designated under law by the governing body of
the unit of general local government, and the Governor of a State.
City means a unit of general local government that is classified as a
city for purposes of the Entitlement grant program under section
102(a)(5) of the Housing and Community Development Act of 1974.
Firm project commitment means a commitment made by a participating
party to provide financial or other resources to carry out a project
under this part. The commitment may be contingent upon the execution of
a grant agreement between HUD and the applicant. In documenting a firm
project commitment, a participating party must (1) provide evidence of
the commitment and the party's financial capability; (2) specify the
authority by which the commitment is made, its amount, and the proposed
use of the financial or other resources to be provided; and (3) state a
willingness to sign a legally binding commitment upon preliminary
funding approval of the housing development grant. Documentation of a
firm project commitment by a public participating party will generally
include a city or county council resolution or a letter from a Federal
or State agency.
Grantee means an applicant that executes a housing development grant
agreement with HUD.
HUD means the Department of Housing and Urban Development.
Legally binding commitment means a legally enforceable written
obligation made by a participating party to provide financial or other
resources to carry out the project in accordance with the terms and
conditions of the grant agreement.
Lower income household means a family or individual which is a lower
income family, as defined in 24 CFR 813.102.
Lower income unit means a dwelling unit that must be occupied, or
available for occupancy, by a lower income household for the time
specified in the grant agreement.
Owner means one or more individuals, corporations, partnerships, or
other legal entities that hold (or will hold by a time specified by HUD)
valid legal title to, or have (or will have by a time specified by HUD)
a long-term leasehold interest in, the property on which a project is to
be constructed or substantially rehabilitated with assistance under this
part.
Participating party means any person, firm, corporation, or public or
private entity that has agreed to provide financial or other resources
to carry out a project under this part.
Private project leveraging ratio means the total amount of private
financial or other resources for which one or more firm project
commitments have been provided, divided by the amount of housing
development grant sought for the proposed project. For purposes of
calculating the amount of a commitment under this ratio, HUD will only
consider new investments that are necessary to make a new, permanent
capital improvement. For example, expenditures for land acquisition,
new construction, or rehabilitation will be included in the calculation;
working capital will not.
Project means one or more buildings containing similarly constructed
units, the site(s) on which the building or buildings is located, and
any functionally related facilities. Multiple buildings will constitute
a project only if they are bound together as a result of proximate
location, common ownership, and common financing.
Project leveraging ratio means the total amount of private and
non-Federal public financial or other resources for which one or more
firm project commitments have been provided, divided by the amount of
housing development grant funds sought for the project. For purposes of
calculating the amount of a commitment under this ratio, HUD will only
consider new investments that are necessary to make a new, permanent
capital improvement. For example, expenditures for land acquisition,
new construction, or rehabilitation will be included in the calculation;
working capital will not.
Project neighborhood means the area, described by the applicant, in
which the proposed project is to be located and that (a) has a
population of at least 2,500 persons and (b) is distinguishable from
other areas on the basis of one or more significant features, such as:
(1) Natural or man-made boundaries; (2) a locally recognized name,
formal or informal; (3) an identity as a residential subdivision; (4)
an identity as an elementary school district; or (5) distinctive
population, social, or real estate characteristics.
State means any State of the United States; the Commonwealth of
Puerto Rico; the territories and possessions of the United States; the
Trust Territory of the Pacific Islands; and Indian tribes, bands,
groups, and Nations, including Alaska Indians, Aleuts, and Eskimos, of
the United States.
Substantial rehabilitation means repairs, replacements and
improvements:
(a) The cost of which exceeds the greater of:
(1) 15 percent of the property's value after completion of all
repairs, replacements and improvements, or
(2) $6,500 per dwelling unit (increased by the appropriate
supportable high-cost factor used in HUD multifamily mortgage insurance
programs); or
(b) that involve the replacement of more than one major building
component. For purposes of this definition, the term ''major building
component'' includes roof structures; ceiling, wall, or floor
structures; foundations; plumbing systems; heating and air
conditioning systems; or electrical systems.
Unit of general local government means any city, county, town,
township, parish, village, or other general purpose political
subdivision of a State.
Urban county means a county that is classified as an urban county
under section 102(a)(6) of the Housing and Community Development Act of
1974.
Very low-income household means a family or individual which is a
very low-income family, as defined in 24 CFR 813.102.
24 CFR 850.3 Subpart B -- Eligibility and Use of Grant Funds
24 CFR 850.11 General.
HUD is authorized to make housing development grants for projects
that are located in designated eligible areas, as described in 850.13,
or that are located outside those areas, in the circumstances described
in 850.15.
24 CFR 850.13 Designated eligible area.
(a) General. A designated eligible area is a city, urban county, or
other unit of general local government that has a population of 2,500 or
more persons and is determined by HUD according to the statutory
definition to be experiencing a severe shortage of decent rental housing
opportunities for families and individuals without other reasonable and
affordable housing alternatives in the private market. The specific
minimum standards set out in paragraph (b) of this section are derived
by using the best and most recent available data, based on objectively
measurable conditions, and take into account (to the extent data are
available) the following statutory conditions:
(1) The extent of poverty;
(2) The extent of occupancy of physically inadequate housing by lower
income families;
(3) The extent of housing overcrowding experienced by lower income
families;
(4) The level and duration of rental housing vacancies; and
(5) The extent of the lag between the estimated need for and
production of rental housing.
From time to time HUD will publish a Notice in the Federal Register
listing those areas that have been determined to be eligible areas.
(b) Minimum standards for designated eligible areas. To be a
designated eligible area a unit of general local government must score
at least six out of a possible sixteen points under the conditions
listed below. Because of varying data availability, different
categories of places use somewhat different combinations of indicators
that sum to 16 potential points.
(1) Extent of occupancy of physically inadequate housing by lower
income families. This condition is the same for all categories of
places and is measured on the percent of rental units that are in
pre-1940 structures and are occupied by poverty households in 1980,
based on U.S. Census data: Four points (12.20 percent of units or
higher); three points (7.95 to less than 12.20 percent of units); two
points (6.30 to less than 7.95 percent of units); and one point (4.55
to less than 6.30 percent of units).
(2) Extent of housing overcrowding experienced by lower income
families. (i) For places of 25,000 or more population and for urban
counties, this condition is measured on the percent of occupied rental
units with 1.0 or more persons per room (overcrowding) in 1980, based on
U.S. Census data: four points (10.39 percent of units or higher); and
two points (7.82 to less than 10.39 percent of units);
(ii) For places of 2,500 to 24,999 population, towns and townships in
certain States and Puerto Rican municipios of 2,500 to 49,999, this
condition is measured on the percent of total occupied units with 1.0 or
more persons per room (overcrowding) in 1980, based on U.S. Census data:
Four points (7.58 percent of units or higher); and two points (5.53 to
less than 7.58 percent of units);
(3) Level and duration of rental housing vacancies. (i) For places
of 25,000 or more population and for urban counties, this condition is
measured as a composite of level and duration of rental housing
vacancies based on the percent of rental units for rent that were vacant
in 1980, and on the percent of rental units for rent that were vacant
more than two months in 1980, based on U.S. Census data: Four points
(less than 3.05 percent level and less than 0.82 percent duration);
three points (less than 3.05 percent level and 0.82 to less than 1.34
percent duration; or 3.05 to less than 4.04 percent level and less than
0.82 percent duration); two points (less than 3.05 percent level and
1.34 to less than 1.75 percent duration; or 3.05 to less than 4.04
percent level and 0.82 to less than 1.34 percent duration; or 4.04 to
less than 5.25 percent level and less than 0.82 percent duration); and
one point (less than 3.05 percent level and 1.75 to 2.45 percent
duration; or 3.05 to less than 4.04 percent level and 1.34 to less than
1.75 percent duration; or 4.04 to less than 5.25 percent level and 0.82
to less than 1.34 percent duration; or 5.25 to 6.34 percent level and
less than 0.82 percent duration).
(ii) For places of 2,500 to 24,999 population, towns and townships in
certain States and Puerto Rican municipios of 2,500 to 24,999
population, this condition is measured on the percent of rental units
for rent that were vacant in 1980, based on U.S. Census data: Four
points (less than 3.05 percent of units); and two points (3.05 to less
than 4.04 percent of units).
(4) Extent of poverty. (i) For places of 2,500 or more population,
this condition is measured on the percent of families in poverty, 1980,
based on U.S. Census data: Four points (16.55 percent or higher);
three points (12.35 to less than 16.55 percent); two points (10.05 to
less than 12.35 percent); and one point (8.45 to less than 10.05
percent).
(ii) For urban counties, this condition is measured on the percent of
persons in poverty, 1980, based on U.S. Census data: Four points (19.80
percent or higher); three points (15.64 to less than 19.80 percent);
two points (13.36 to less than 15.64 percent); and one point (11.46 to
less than 13.36 percent).
24 CFR 850.15 Special housing needs and neighborhood preservation
projects.
(a) General. A housing development grant may also be made for a
project that is not located in a designated eligible area of HUD
determines that (1) the project is necessary to meet a special housing
need or to advance a particular neighborhood preservation purpose and
(2) the proposed occupancy of the lower income units in the project (by
number of bedrooms and household type) cannot be met through the
moderate rehabilitation of housing stock located in the project
neighborhood.
(b) Special housing need. A special housing need must address at
least one of the following: (1) A special renter group need (e.g.,
large family housing); or (2) A special need resulting from a rapid
change or other dislocation in the housing market that has occurred
since the taking of the 1980 Census (e.g., changes or dislocations
caused by a natural disaster or rapid population growth) so long as the
current vacancy rate in the jurisdiction does not exceed seven percent.
In determining whether a special housing need exists, HUD will consider
the severity and breadth of the need and the proposed project's
responsiveness to it.
(c) Neighborhood preservation purpose. A proposed project intended
to advance a neighborhood preservation purpose must be located in a
neighborhood preservation area in which concentrated housing, physical
development, and public service activities are being carried out in a
coordinated manner pursuant to a locally developed strategy for
neighborhood improvement, conservation, or preservation, and must
further the goals of the strategy. The locally developed strategy must:
(1) Provide for a combination of physical improvements, necessary
public facilities and services, housing programs, private investment and
citizen self-help activities appropriate to the needs of the area;
(2) Coordinate public and private development efforts; and
(3) Provide sufficient resources to produce substantial long-term
improvements in the area within a reasonable period of time, taking into
account the severity of the area's problems.
(d) Moderate rehabilitation restriction determination. The proposed
occupancy of the lower income units in a special housing need or
neighborhood preservation purpose project cannot be met through the
moderate rehabilitation of housing stock located in the project
neighborhood if:
(1) The unit of general local government made reasonable efforts to
obtain assistance under each Federal program providing assistance for
moderate rehabilitation of real property that could be used to meet the
proposed occupancy of the lower income units in the project, but was
unsuccessful in obtaining the assistance. (These programs include, for
example, the Section 8 Moderate Rehabilitation Program under 24 CFR part
882, subpart D, and the Rental Rehabilitation under 24 CFR part 511);
or
(2) In the case of a unit of general local government that receives
assistance under any such Federal program, the unit of government
solicited for moderate rehabilitation projects in the project
neighborhood to meet the proposed occupancy of the lower income units in
the project under the program, but was unable to obtain any responses;
or
(3) The project neighborhood does not meet the requirements for
assistance under such Federal programs. (For example, the project
neighborhood does not meet the neighborhood eligibility requirements for
the Rental Rehabilitation Program under 511.10(d) of this title.
Because of differences between areas that qualify as a project
neighborhood under this part and a neighborhood under 511.10(d)(1), a
determination under this section that the proposed ocucpancy of the
lower income units in the project cannot be met through moderate
rehabilitation on the basis of neighborhood ineligibility under the
Program will be made only if no activities under that Program are being,
or are anticipated to be, carried out in the project neighborhood.); or
(4) The project neighborhood lacks housing stock in size or design
appropriate to the proposed occupancy of the lower income units in the
project; or
(5) The housing stock in the project neighborhood that could be used
to meet the proposed occupancy of the lower income units in the project
is so deteriorated that the moderate rehabilitation of such stock is not
feasible; or
(6) The applicant proposes any other reasonable justification, and
HUD accepts the justification, as to why the proposed occupancy of the
lower income units in the project cannot be met through the moderate
rehabilitation of housing stock located in the project neighborhood.
24 CFR 850.17 Eligible and ineligible uses of grant funds.
(a) Housing development grant funds may be used to provide grants or
loans to defray project costs including acquisition, demolition,
relocation, site improvements, construction costs, and related soft
costs; to make interest reduction payments; or for other comparable
activities approved by HUD to support the new construction or
substantial rehabilitation of real property to be used primarily for
non-transient residential rental purposes. Residential rental purposes
include cooperative housing or mutual housing that has a resale
structure that enables the cooperative to maintain affordability for
lower income households.
(b) Housing development grant funds may not be used for
administrative costs incurred by an applicant or grantee in carrying out
its responsibilities under the Housing Development Grant Program. These
administrative costs include, but are not limited to, staff and
consultant salaries and operating expenses of the applicant or grantee.
(c) Housing development grant funds may not be used to construct or
substantially rehabilitate a project that: (1) Is currently assisted
(or is anticipated to be assisted) under any other Federal housing
assistance program (except assistance under the section 8 Existing
Housing Program under 24 CFR part 882, subparts A and B) or under the
Urban Development Grant Program (24 CFR 570.450), (2) was assisted under
section 305 or 313 of the National Housing Act, (3) was formerly owned
by HUD. Housing development grant funds may be used in connection with
projects financed with tax-exempted obligations.
24 CFR 850.17 Subpart C -- Application Procedures and Program Requirements
24 CFR 850.31 Application submission, review and selection process --
general.
(a) Invitation for Applications. HUD will publish an Invitation for
Applications in the Federal Register that will:
(1) Give the location for obtaining application packages providing
specific application requirements and guidance;
(2) Specify the deadline and place for submitting completed
applications; and
(3) Provide other appropriate program information and requirements,
including any minimum or maximum project size and any overall special
housing needs or neighborhood preservation purpose housing development
grant limitations.
(b) Applications. (1) The applicant's chief executive officer or
other officer approved by HUD must sign and submit the application, as
described in 850.33.
(2) The application must contain the documentation required in
850.33 (including assurance of compliance with the other program
requirements listed in 850.35) and any other information specifically
requested in the application package. The applicant must use the
HUD-prescribed forms and format, and contain sufficient detail to enable
HUD to make the threshold and selection determinations in 850.37 and
850.39, respectively.
(3) An applicant must submit a separate application for each project.
(c) HUD review and selection. HUD will first review applications
received to determine whether they are acceptable under the threshold
requirements of 850.37. Only acceptable applications will be eligible
for competitive ranking and possible selection under 850.39.
(d) Notification to applicants. HUD will notify all applicants of
the results of the review and selection upon completion of the selection
process.
(e) Grant amounts. In the case of selected applications, the
notification in paragraph (d) of this section will indicate:
(1) The preliminary grant funding amount, which will constitute a
reservation of funds;
(2) That preliminary grant amounts will not be increased, but are
subject to decrease if (i) further project planning or development
reveals that the grant amount must be reduced to comply with the grant
amount limitations under 850.37(d) or (ii) necessary to comply with the
grant limitation described in 850.61(b); and
(3) Other conditions and requirements necessary to reach execution of
a grant agreement between HUD and the applicant.
(f) Modification of applications. The substance of an application
may not be modified until the selection process is completed.
Thereafter, minor modifications in selected projects may be made, but
changes of site, total number of units, unit size (number of bedrooms),
building type, or number of lower income units are not permitted.
(Information collection requirements have been approved by the Office
of Management and Budget under control number 2502-0323)
(49 FR 24641, June 14, 1984, as amended at 49 FR 33444, Aug. 23,
1984)
24 CFR 850.33 Submission requirements.
An application must contain the following:
(a) Standard form. Standard Form 424.
(b) Program description. A description of the applicant's proposed
rental development program, consisting of a general description of the
projects that the applicant proposes to undertake for the fiscal year
with housing development grants, including a specification of the
applicant's anticipated schedule for carrying out these projects. The
applicant may submit the same program description for each project
application submitted under the program.
(c) Applicant project selection. A statement of the procedures and
standards used by the applicant to select the project that is the
subject of the application. The statement must describe how the
procedures and standards took into account the extent to which: (1) The
proposals reviewed represented the efficient use of housing development
grant amounts, (2) the housing units involved would be adequately
maintained and operated with rents maintained at the levels proposed,
and (3) the proposals would involve participation by minority and
women's business enterprises.
(d) Project neighborhood. A description of the project neighborhood.
(e) Project location. (1) An indication of whether the project is in
a designated eligible area (as provided in 850.13), or is intended to
meet a special housing need or to advance a particular neighborhood
preservation purpose (as provided in 850.15). If the project is
intended to meet a special housing need, the application must specify
the type of need and contain an analysis of its severity and breadth and
the proposed project's responsiveness to it, in accordance with the
requirements of 850.15(b). If the project is intended to advance a
particular neighborhood preservation purpose, the application must
describe the neighborhood preservation area, the activities being
carried out in the area, the locally developed strategy for the area,
and how the proposed project furthers the goals of the strategy (as
described in 850.15(c)).
(2) Such information as HUD may require concerning the site of the
proposed project to permit HUD to apply the selection criterion
contained in 850.39(b)(10), including, as appropriate to the project:
(i) A description of the project neighborhood demographics;
(ii) Data on the extent of public or private investment in the
project neighborhood; and
(iii) A list of assisted housing projects located in the project
neighborhood, together with the race/ethnicity of the tenant households
in each such project.
(f) Project description. Specific information on the proposed
project, including a description of:
(1) The proposed new construction or substantial rehabilitation;
(2) The site and any proposed demolition and site improvements;
(3) The proposed occupancy of the project;
(4) The total units by size (number of bedrooms) including the number
of lower income units by size;
(5) The owner's control of the site; and
(6) The percentage of gross floor area intended for commercial use.
If more than 10 percent is specified, a justification must be included
for the higher percentage, as provided in 850.37(e).
(g) Project costs and financing. Specific information on project
costs and financing, including:
(1) The amount and use of the housing development grant requested.
If the amount of the grant requested is more than 50 percent of total
project costs excluding acquisition cost, information must be provided
on the special nature of the project, and, if applicable, on refinancing
costs (as provided in 850.37(d));
(2) The total project costs;
(3) The projected rents and expenses for each unit size and type,
including proposed lower income units;
(4) The anticipated terms and conditions of financing;
(5) The source of financial or other resources, including the
specific identity and role of all participating parties, for all project
costs and any other resources needed to support continued project
operation at the proposed rent and expense levels;
(6) Where HUD mortgage insurance is not involved, an appraisal
performed by a qualified appraiser selected by the owner of the
estimated value of the project after construction or substantial
rehabilitation; and
(7) The amount (if any) of the housing development grant amounts to
be repaid to the applicant and the repayment schedule.
(h) Project feasibility. An analysis of project feasibility,
including documentation of firm project commitments (as provided in
850.3) for all financial and other resources referred to in paragraph
(g)(5) of this section. If the project anticipates HUD mortgage
insurance, a conditional or firm commitment from HUD must be included.
(i) Vacancy rate. Such information as HUD may require on the rental
housing vacancy rate in all lower income census tracts in the unit of
general local government (or where requested and approved by HUD, in the
market area).
(j) Rent mechanism. A description of the mechanism that the
applicant will use to assure that rents for lower income units meet the
requirements of 850.151(e) and a description of any assistance
mechanism that will be used to further assist very low-income
households.
(k) Displacement and relocation. A description of any anticipated
permanent displacement and temporary relocation of residents, including
information on potential displaces by household type, income levels, and
minority group classification; the applicant's assessment of the effect
of the proposed project on mitigating displacement; and evidence of
compliance with the restriction on displacement contained in
850.35(d)(1).
(l) Assisted housing performance and capacity. The performance of
the applicant in meeting its assisted housing needs and information
concerning its capacity to ensure that the project will be commenced and
completed in a timely manner. The record of such performance and
capacity may include, but not be limited to, meeting Housing Assistance
Plan goals and administrating federally assisted housing.
(m) Environmental assessment finding. The applicant's environmental
assessment finding in accordance with 58.41 of this title.
(n) Neighborhood development. The applicant's assessment of the
effect of the proposed project on neighborhood development.
(o) Minority and women's business enterprise. A description of
minority and women representation in the ownership of the project, as
provided in 850.39(b)(9).
(p) Tenant waiting periods. Such information as HUD may require
concerning the length of the waiting list by family size for housing
assistance and the length of time families holding certificates issued
under the Section 8 Existing Housing Program (24 CFR part 882, subparts
A and B) and vouchers under Section 8(o) of the U.S. Housing Act of 1937
require to find a dwelling unit of the type proposed.
(q) Owner certifications. Certification by the owner that it will
comply with the requirements of 850.35(a) (nondiscrimination and equal
opportunity), 850.35(b) (minority and women's business enterprise
opportunity), 850.35(c) (affirmative fair housing marketing), 850.151
(project restrictions), 850.35(m) (flood insurance), and any other
requirements of this part, as applicable.
(r) Applicant certifications. Certifications providing assurance
that:
(1) The submission of the application is authorized under State and
local law (as applicable), and the applicant possesses the legal
authority to apply for the grant and to carry out the responsibilities
of a grantee under this part.
(2) The applicant developed its rental development program after
consultation with the public.
(3) If a State is the applicant, it is applying for assistance on
behalf, and with the concurrence, of a specified unit of general local
government. Evidence of concurrence by the unit of government must
accompany this certification. Evidence may consist of a letter signed
by the chief executive officer of the unit of government.
(4) If the project is not located in a designated eligible area, the
proposed occupancy of the lower income units in the project cannot be
met through the moderate rehabilitation of housing stock located in the
project neighborhood (including an explanation of the basis for this
conclusion), as provided in 850.15(d).
(5) The applicant's chief executive officer or legally designated
representative:
(i) Consents to assume the status of a responsible Federal official
for environmental review, decisionmaking, and action under section
104(f) of the Housing and Community Development Act of 1974, and the
other authorities listed in 24 CFR 58.5, insofar as the provisions of
such Act or other authorities apply to the Housing Development Grant
Program; and
(ii) Is authorized and consents on behalf of the applicant and
himself/herself to accept the jurisdiction of the Federal courts for the
purpose of enforcement of his/her responsiblities as such official.
(6) The applicant will comply with the requirements of this part.
(7) The application is consistent with any applicable Housing
Assistance Plan.
(8) The project will be constructed or substantially rehabilitated in
accordance with applicable State and local building codes, or in the
absence of these codes, with a nationally recognized model building
code.
(s) Other information. Such other information as may be specified in
the HUD-prescribed application form or Invitation for Applications.
(Approved by the Office of Management and Budget under control number
2502-0323)
(49 FR 24641, June 14, 1984, as amended at 49 FR 33444, Aug. 23,
1984; 53 FR 8065, Mar. 11, 1988)
24 CFR 850.35 Other program requirements.
The applicant (or grantee) shall assure that the following additional
program requirements are met:
(a) Nondiscrimination and Equal Opportunity. (1) The requirements of
Title VIII of the Civil Rights Act of 1964, 42 U.S.C. 3601-19 (Pub. L.
90-284) and implementing regulations; Executive Order 11063 and
implementing regulations at 24 CFR Part 107; and Title VI of the Civil
Rights Act of 1964 (Pub. L. 88-352) and implementing regulations issued
at 24 CFR Part 1;
(2) The prohibitions against discrimination on the basis of age under
the Age Discrimination Act of 1975 (42 U.S.C. 6101-07) and the
prohibitions against discrimination against handicapped individuals
under section 504 of the Rehabilitation Act of 1973, 29 U.S.C. 794;
(3) The requirements of E.O. 11246 and the regulations issued under
the Order at 41 CFR chapter 60; and
(4) The requirements of section 3 of the Housing and Urban
Development Act of 1968, as amended.
(b) Minority and women's business enterprise opportunity. Consistent
with HUD's responsibilities under E.O. 11625, 12432 and 12138, the
grantee and project owner shall prepare, implement and maintain a
minority and women-owned business development plan which shall contain
specific and measurable goals and an affirmative strategy to promote
awareness and participation by such businesses in the contracting and
procurement activities generated by the project. The plan must remain
in effect throughout the construction period.
(c) Affirmative fair housing marketing. The grantee must assure that
the owner implements the requirements of 24 CFR part 200, subpart M, and
implementing regulations at 24 CFR part 108. The grantee shall provide
HUD with its evaluation of the owner's implementation of the affirmative
fair housing marketing plan, upon completion of occupancy.
(d) Relocation. (1) Restriction on displacement of very low-income
households. Housing development grants may be used to assist a project
only if the construction or rehabilitation of the project will not cause
the involuntary displacement of very low-income households by households
that are not very low-income households.
(2) Displacement and relocation not subject to the Uniform Act. (i)
General. The following requirements apply to projects that are assisted
under this part and involve temporary relocation or permanent
displacement that is not subject to the Uniform Act, as provided in
paragraph (d)(3) of this section. References to ''tenant'' in this
paragraph (d)(2) apply only to lawful residential families or
individuals (not owner-occupants or businesses) that are temporarily
relocated or permanently displaced by the project after submission of a
housing development grant application to HUD. Such references do not
apply to any tenant that occupies a unit after submission of the
application if the tenant received advance notice of the pending
application and of the possibility that relocation or displacement might
occur, or whose tenancy is terminated for breach of the terms of the
lease.
(ii) Tenant Assistance Policy. The applicant (grantee) must have a
written tenant assistance policy that must include:
(A) A statement of nondiscrimination in providing information,
counselling, referrals and other relocation assistance to tenants
temporarily relocated or permanently displaced by the project, and
(B) Practices and methods of administration that will not result in
the involuntary displacement of persons because of their particular
race, color, religion, national origin, sex, age or handicap status.
(iii) Permanent displacement. (A) A tenant, regardless of income,
may not be required to move permanently as a result of the
rehabilitation or construction of a project under this part, unless the
tenant has received adequate advance written notice and appropriate
advisory services, including information and counseling sufficient to
acquaint the tenant with opportunities to select replacement dwellings
from a full range of neighborhoods within the housing market, his or her
individual rights under the Federal Fair Housing law, and how to search
for suitable replacement housing.
(B) A lower income tenant must be given financial assistance
sufficient, as determined by the applicant (grantee), to obtain decent,
safe, sanitary and affordable replacement housing. For purposes of this
paragraph, replacement housing is considered affordable if the monthly
rent payable to the landlord and estimated average monthly cost of
tenant-paid utilities does not exceed an amount equivalent to the Total
Tenant Payment that would apply to the tenant under 24 CFR 813.107(a).
(iv) Temporary relocation. A lower income tenant may not be required
to relocate temporarily as a result of the rehabilitation or
construction of a project under this part, unless:
(A) Decent, safe and, sanitary temporary housing is available for
occupancy by the tenant;
(B) The tenant will receive financial assistance sufficient, as
determined by the applicant (grantee), to cover reasonable expenses
incurred in connection with the temporary relocation, including moving
costs to and from the temporary housing and any increase in monthly
housing costs (i.e., rent and utility costs), and
(C) A unit of appropriate size will be available for occupancy by the
tenant in the rehabilitated or newly constructed project at an
affordable cost (i.e., the monthly rent and the estimated average
monthly cost of tenant-paid utilities will not exceed an amount
equivalent to the total Tenant Payment that would apply to the tenant
under 24 CFR 813.107(a)).
(3) Applicability of the Uniform Act. The Uniform Relocation
Assistance and Real Property Acquisition Policies Act of 1970 (Uniform
Act) and HUD implementing regulations at 24 CFR part 42 (Uniform
Relocation Assistance and Real Property Acquisition) apply to the
acquisition of real property by any State agency (as defined in 42.2(p)
of this title) for a project assisted under this part and to any
displacement that results from such acquisition. HUD will monitor
compliance with the Uniform Act.
(i) Any acquisition of real property by an applicant (grantee) and
any displacement resulting from the acquisition will be considered to be
for an activity assisted under the Housing Development Grant Program and
to be subject to the regulations at 24 CFR part 42 if the acquisition or
displacement occurs on or after the date of the submission of the
housing development grant application. However, if the applicant
(grantee) determines that any acquisition or displacement was not
carried out for an assisted activity, and the responsible HUD Field
Office concurs in that determination, the acquisition or displacement
will not be subject to part 42. The applicant's (grantee's) request for
HUD concurrence shall include its certification that at the time of the
acquisition, it did not intend to use the property for an assisted
activity and appropriate documentation to establish that fact.
(ii) The applicant (grantee) or HUD may determine that an acquisition
and any resulting displacement before submission of a housing
development grant application were carried out for an assisted activity
and are subject to part 42. In the absence of such a determination by
the applicant (grantee) or HUD, any such acquisition and displacement
occurring before submission of an application shall not be subject to
part 42. The applicant (grantee) may at any time request HUD to
determine whether the acquisition and displacement are considered to be
for an assisted activity. The request shall be submitted to the
responsible HUD Field Office and shall include appropriate background
documentation.
(e) Environment and historic preservation. Section 104(f) of the
Housing and Community Development Act of 1974, 24 CFR part 58, that
prescribes procedures for compliance with the National Environmental
Policy Act of 1969 (42 U.S.C. 4321-4361), and the additional laws and
authorities listed at 58.5.
(f) Labor standards. All laborers and mechanics (except laborers and
mechanics employed by a State or local government acting as the
principal contractor on the project) employed in the construction or
substantial rehabilitation of a project that contains twelve or more
dwelling units and is assisted under the Housing Development Grant
Program shall be paid wages at rates not less than those prevailing on
similar construction in the locality, as determined by the Secretary of
Labor in accordance with the Davis-Bacon Act, as amended (40 U.S.C.
276a-276a-5), and contracts involving their employment shall be subject
to the provisions, as applicable, of the Contract Work Hours and Safety
Standards Act, as amended (40 U.S.C. 327-333). Grantees, participating
parties, contractors and subcontractors shall comply with regulations
issued under these Acts and with other Federal laws and regulations
pertaining to labor standards, as applicable.
(g) Grant administration. The policies, guidelines, and requirements
of 24 CFR part 85 (except fo 85.23, 85.24, 85.25, 85.30, 85.31(c)
85.40(b) through (d) and (f), and 85.50) and OMB Circular A-122, as they
relate to the acceptance and use of housing development grant amounts
under this part. (24 CFR 85.36 does not apply to a grantee's selection
of a project owner, because that selection is not a procurement of
property or services. A project owner is not required to follow the
requirements of 24 CFR 85.36 because part 85 applies only to State,
local, and Indian tribal governments.)
(h) Architectural barriers. The requirements of the Architectural
Barriers Act of 1968 (42 U.S.C. 4151-4157).
(i) Lead-based paint. The requirements of the Lead-Based Paint
Poisoning Prevention Act (42 U.S.C. 4821-4826) and implementing
regulations at 24 CFR part 35.
(j) Intergovernmental review. The provisions of E.O. 12372 and
implementing regulations at 24 CFR part 52.
(k) Conflicts of interest. No person: (i) Who is an employee,
agent, consultant, officer, or elected or appointed official of the unit
of general local government (and the State, where the State is an
applicant) (or of any designated public agencies) that receives housing
development grant amounts and who exercises or has exercised any
functions or responsibilities with respect to assisted development
activities or (ii) who is in a position to participate in a
decisionmaking process or gain inside information with regard to such
activities, may obtain a personal or financial interest or benefit from
the activity, or have an interest in any contract, subcontract or
agreement with respect thereto, or the proceeds thereunder, either for
themselves or those with whom they have family or business ties, during
their tenure or for one year thereafter. HUD may grant an exception to
this exclusion on a case-by-case basis when it determines that such an
exception will serve to further the purposes of the Housing Development
Grant Program. An exception may be considered only after the unit of
general local government or the State, as appropriate, has provided a
disclosure of the nature of the conflict, accompanied by an assurance
that there has been public disclosure of the conflict and a description
of how the public disclosure was made and an opinion of the entity's
attorney that the interest for which the exception is sought would not
violate State or local law. In determining whether to grant a requested
exception, HUD shall consider the cumulative effect of the following
factors, where applicable:
(1) Whether the exception would provide a significant cost benefit or
an essential degree of expertise to the Housing Development Grant
Program or the project that would otherwise not be available;
(2) Whether an opportunity was provided for open competitive bidding
or negotiation;
(3) Whether the person affected is a member of a group on class
intended to be the beneficiaries of the development activity, and the
exception will permit such person to receive generally the same
interests or benefits as are being made available or provided to the
group or class;
(4) Whether the affected person has withdrawn from his or her
functions or responsibilities, or the decisionmaking process, with
respect to the specific development activity in question;
(5) Whether the interest or benefit was present before the affected
person was in a position as described in this paragraph;
(6) Whether undue hardship will result to the unit of general local
government or the State, as appropriate, or the person affected when
weighed against the public interest served by avoiding the prohibited
conflict; and
(7) Any other relevant consideration.
(l) Use of debarred, suspended, or ineligible contractors. The
provisions of 24 CFR part 24 relating to the employment, engagement of
services, awarding of contracts, or funding of any contractors or
subcontractors during any period of debarment, suspension, or placement
in ineligibility status.
(m) Flood insurance. No site proposed for a project to be assisted
under this part may be located in an area that has been identified by
the Federal Emergency Management Agency (FEMA) as having special flood
hazards, unless the community in which the area is situated is
participating in the National Flood Insurance Program and the
regulations thereunder (44 CFR parts 59 through 79) or less than a year
has passed since FEMA notification regarding such hazards, and the
applicant (grantee) will assure that flood insurance on the structure is
obtained in compliance with section 102(a) of the Flood Disaster
Protection Act of 1973 (42 U.S.C. 4001 et seq.).
(Approved by the Office of Management and Budget under control number
2502-0323)
(49 FR 24641, June 14, 1984, as amended at 49 FR 33444, Aug. 23,
1984; 51 FR 6913, Feb. 27, 1986; 53 FR 8065, Mar. 11, 1988)
24 CFR 850.37 Threshold requirements.
An application will not be considered in the selection process
unless:
(a) Timely submission. The application is received by HUD on or
before the deadline specified in the Invitation for Applications.
(b) Acceptability. The application contains documentation required
by 850.33 sufficient in HUD's determination to permit HUD to make the
assessments required by this section and 850.39, and to otherwise find
the application acceptable.
(c) Project eligibility. HUD determines, after review of the
information required by 850.33 and any other available information,
that: (1) The project is in a designated eligible area (as described in
850.13); or if the project is located outside such an area, the
project meets the requirements of 850.15; and (2) the project is
within the jurisdiction of the unit of general local government.
(d) Percentage limit on grant amount. The housing development grant
sought does not exceed 50 percent of HUD's determination of the total
costs associated with the construction or substantial rehabilitation of
the project. For purposes of this paragraph, total costs will not
include working capital or similar contingency items, or the cost of
acquisition, debt service or operating deficit reserves, sponsors'
profit and risk allowances, or relocation costs in excess of an amount
that HUD determines to be reasonable. Acquisition costs may be included
in this calculation if the applicant documents in the application and
HUD determines that: (1) For new construction projects, the special
nature of the project, or (2) for substantial rehabilitation projects,
the special nature and refinancing costs of the project, justify
including acquisition costs in the calculation. In making this
determination, HUD will consider the public purposes of the Program as
set forth in 850.39 (b) and (c).
(e) Nonresidential use. Not more than ten percent of the gross floor
area in the project is for commercial use. A higher percentage, up to
20 percent, may be requested in the application and approved by HUD.
The grant assistance shall be used to support only the residential
rental portion of the project. The commercial space must be
self-supporting.
(f) Overall grant limit. HUD determines, after review of the
information contained in the application and any other available
information, that the housing development grant sought is not clearly in
excess of the amount that will provide decent rental or cooperative
housing of modest design that is affordable for families and individuals
without other reasonable and affordable housing alternatives in the
private market, including an amount necessary to assist lower income
units in the project.
(g) Project value. The estimated value of the project after
construction or substantial rehabilitation does not exceed the amount of
a mortgage that could be insured for the project under part 207 of this
title based on the sum of the statutory per-unit limits (adjusted by the
appropriate supportable local high-cost factor) and an allowance
determined by HUD for costs not attributable to dwelling use (including
commercial use).
(h) Record in meeting assisted housing needs. The applicant does not
have an unsatisfactory record in meeting its assisted housing needs.
The record of such performance may include, but not be limited to,
meeting its goals in its Housing Assistance Plan and administering
federally assisted housing.
(i) Timely project start and completion. The applicant has the
capacity to assure that the project will be started within 24 months of
notice of HUD preliminary funding approval and will be completed in a
timely manner.
(j) Lower income units. The number of lower income units specified
in the application equals or exceeds 20 percent of the total units in
the project.
(k) Project feasibility and terms and conditions of financing. (1)
The project is financially feasible. No project will be considered
financially feasible unless the application contains at least a firm
project commitment for all financial and other resources (other than the
proposed housing development grant) needed to complete the project. A
firm project commitment for permanent financing from a State housing
finance agency will be considered adequate demonstration of financial
feasibility under this paragraph.
(2) HUD determines that the project costs, the terms and conditions
of financing (including the proposed mortgage interest rate), and the
owner's proposed equity investment are reasonable.
(l) HAP consistency. The project is consistent with any applicable
local Housing Assistance Plan approved by HUD.
(m) Neighborhood development and displacement. The project is
determined not to have a negative effect on neighborhood development or
cause undue relocation hardship.
(n) Nondiscrimination and equal opportunity. The applicant's
certification concerning nondiscrimination and equal opportunity is
approved and HUD considers the past efforts of the unit of general local
government (and the State, where the State is an applicant) and the
owner to be satisfactory in implementing the civil rights and equal
opportunity provisions of this and other HUD programs in which they have
participated.
(Approved by the Office of Management and Budget under control number
2502-0323)
(49 FR 24641, June 14, 1984, as amended at 49 FR 33444, Aug. 23,
1984)
24 CFR 850.39 Selection of projects for preliminary funding approval.
(a) General. HUD will select projects for preliminary funding
approval on the basis of the selection factors described in paragraph
(b) of this section and the priority to be given under paragraph (c) of
this section. Specific information on the weight given to each
selection factor and how the priority will be applied will be provided
in the Invitation for Applications (see 850.31(a)).
(b) Selection factors -- (1) Shortage of decent, affordable rental
housing. HUD will consider two separate elements under this factor.
More favorable consideration will be given to those projects that are
located in areas with the lower vacancy rates in all census tracts, and
in all lower income census tracts, in the unit of general local
government (or where requested in the application and approved by HUD,
in the market area).
(2) Leveraging ratios. HUD will consider two separate elements under
this factor. More favorable consideration will be given to projects
with higher project leveraging ratios and higher private project
leveraging ratios.
(3) Neighborhood development and mitigation of displacement. HUD
will consider two separate elements under this factor. More favorable
consideration will be given to those projects that have the more
favorable effect on neighborhood development and that cause little or no
displacement or that provide effective mitigation of displacement.
(4) Demonstrated performance and capacity. HUD will consider the
record of performance by the unit of general local government in meeting
its assisted housing needs and the applicant's capacity to commence and
carry out the project in a timely manner. More favorable consideration
will be given to the better records of performance in meeting annual and
three-year Housing Assistance Plan goals and administering individual
programs of federally assisted housing. Where a State is the applicant
on behalf of a unit of general local government, HUD may consider the
record of performance of the State in meeting assisted housing needs in
addition to, or in lieu of, the record of the unit of general local
government as may appear appropriate in the circumstances.
(5) Efficient use of grant funds. HUD will consider the extent to
which the housing development grant requested will provide the maximum
number of units for the least cost to the Federal government. More
favorable consideration will be given to projects with the better
performance in achieving this result. HUD will develop these ratios to
account for the repayment of grant amounts to the grantee and for
differences in unit size (number of bedrooms), types of tenants being
served, financing alternatives, construction costs, and project types.
(6) Rent affordability. HUD will consider two elements under this
factor. More favorable consideration will be given to projects that
provide a more effective mechanism for assuring that rents for lower
income units meet the requirements of 850.151(e) and that provide the
greater amount of assistance, if any, to make and maintain rents for
very low-income households below the maximum permissible rents for lower
income units.
(7) Financial feasibility. More favorable consideration will be
given to those projects that provide the better documentation of project
feasibility, considering the relative strength of firm project
commitments, the depth and adequacy of underwriting evidenced, and the
long-term viability of the project, taking into account the requirements
of this part.
(8) Family housing. HUD will consider two elements under this
factor. More favorable consideration will be given to projects that
provide the greater number of project units for families and for large
families with children.
(9) Minority and women's business enterprise. More favorable
consideration will be given to projects with the higher percentage of
minority or women representation in the ownership of the project. In
the case of a partnership owner, in the case of a general partner in a
limited partnership, or in the case of a corporate owner, more favorable
consideration will be given to those projects where control of the
partnership, the general partner, or corporate owner, as applicable, is
vested in, and exercised by, minority persons and/or women.
(10) Promoting nondiscrimination and equal opportunity. HUD will
take into account the present pattern of assisted housing location and
occupancy. More favorable consideration will be given to projects that
are located: (i) Outside areas of minority concentration where the
current pattern shows most assisted projects in minority areas, or (ii)
in areas where there is no other assisted housing, or (iii) in areas
undergoing revitalization through public or private investment and in
which rental opportunities for lower income households are declining.
(c) HUD will give a priority to applications involving projects:
(1) In which more than 20 percent of the units are to be lower income
units; and
(2) That are located in areas where the waiting lists for housing
assistance are relatively long and where families holding certificates
issued under the Section 8 Existing Housing Program (24 CFR part 882,
subparts A and B) and vouchers under section 8(o) of the U.S. Housing
Act of 1937 require an excessive length of time to find housing.
24 CFR 850.39 Subpart D -- Post Preliminary Approval Requirements and Grant Administration
24 CFR 850.61 Grant agreement and overall limit on grant amounts.
(a) Grant agreement. After preliminary funding approval, HUD and the
applicant will sign a legally binding grant agreement incorporating the
regulations contained in this part, and specifying the terms and
conditions under which housing development grant funds will be provided
to develop the approved project. Among other matters, the grant
agreement will: (1) Specify that the amount of the housing development
grant is subject to reduction (as provided in paragraph (b) of this
section or otherwise) if project costs or expenses are reduced or the
terms and conditions of financing are altered; and (2) include a
project development schedule that specifies that construction or
substantial rehabilitation must begin not later than 24 months after
notice of preliminary funding approval. Failure to meet this schedule
will result in remedial action under subpart E.
(b) Overall limit on grant amounts. The amount of a housing
development grant under this part may not exceed that which will provide
decent rental or cooperative housing of modest design that is affordable
for families and individuals without other reasonable and affordable
housing alternatives in the private market, including an amount
necessary to assist lower income units in the project.
24 CFR 850.63 Conditions precedent to drawdown of funds.
The drawdown of funds under the grant agreement is conditioned upon
approval by HUD of the legally binding commitments, the owner-grantee
agreement, security instruments, the Affirmative Fair Housing Marketing
Plan for the project, grantee compliance with environmental review
procedures for release of funds, and compliance with other terms and
conditions of the grant agreement; and submission of the plan and
affirmative strategy for minority and women-owned business
participation, as provided in 850.35(b).
(a) Legally binding commitments. The grantee must submit for
approval to HUD the legally binding commitments from participating
parties identified in the grant agreement. The grantee must also submit
an opinion of counsel that the commitments are legally binding under
State and local law and conform to the grant agreement executed by HUD
and the grantee.
(b) Owner-grantee agreement. The grantee must submit for approval by
HUD the owner-grantee agreement specified in 850.151 and any other
agreement between the owner and the grantee with respect to the project.
The grantee must also submit an opinion of counsel that any such
agreement is legally binding under State and local law and conforms to
the grant agreement executed by HUD and the grantee.
(c) Security instruments. The grantee must submit for approval by
HUD copies of the mortgages and other security instruments securing
repayment of the public and private financing and of the mortgages or
other security instruments securing repayment of the housing development
grant in the event the owner breaches the obligations specified in
850.151 of this part.
(d) Affirmative Fair Housing Marketing Plan. For any project with
five or more units, the grantee must submit an Affirmative Fair Housing
Marketing Plan (Form HUD-935.2) prepared by the owner in accordance with
850.35(c).
(e) Release of funds under HUD Environmental Review Procedures. The
grantee must comply with the provisions of part 58 of this title
concerning the release of funds for projects requiring environmental
review. Except as provided in 58.22 of this title, a grantee may not
spend any local funds or commit housing development grant funds until
the environmental requirements have been met. However, such costs (even
though otherwise eligible) will not be reimbursed if the legally binding
commitments are not approved.
24 CFR 850.65 Method of payment.
(a) Advance payments. Payments will be made by electronic funds
transfer whenever possible, letter of credit, or other means, pursuant
to grant agreements as required by the Federal Grant and Cooperative
Agreement Act of 1977 (41 U.S.C. 501 et seq.) and in compliance with the
Intergovernmental Cooperative Act (42 U.S.C. 4201 et seq.). Advance
payments will be made by electronic funds transfer or letter of credit
to a grantee that has demonstrated to HUD, initially through
certification in a form prescribed by HUD and subsequently through
performance, its willingness and ability to establish procedures that
will minimize the time elapsing between the transfer of funds to it and
its disbursement of such funds.
(b) Reimbursement. A grantee that does not meet the condition in
paragraph (a) of this section will receive grant payments by U.S.
Treasury check on a reimbursement basis.
24 CFR 850.67 Cash withdrawals.
The timing and amount of cash withdrawals from the U.S. Treasury by
the grantee shall in accordance with U.S. Department of Treasury
regulations on withdrawal of cash from the Treasury for advances under
Federal programs (31 CFR part 205), as incorporated in HUD Handbook
1900.27 Rev., Letter of Credit Procedures -- Treasury Financial
Communications System. To the maximum extent practicable, program
income must be disbursed before additional draws from grant funds are
made. Unless otherwise provided in the grant agreement, grant funds
under this part may not be drawn down at a rate in excess of that
contained in the approved project leveraging ratio for the project.
24 CFR 850.69 Financial management systems.
Each grantee is required to maintain a financial management system
that complies with 24 CFR 85.20.
(53 FR 8065, Mar. 11, 1988)
24 CFR 850.71 Program income.
Unless otherwise provided in the grant agreement, program income
received by the grantee before completion of all construction or
rehabilitation activities funded with Housing Development Grant amounts
must be used to reimburse costs incurred for project activities. This
income must be used instead of any draw from grant amounts to the extent
adequate to reimburse costs so incurred. Program income received after
the completion of all construction or rehabilitation activities is
available for use by the grantee to support the new construction,
rehabilitation, or operation of real property to be used primarily for
low or moderate income residential rental purposes (including
cooperative and mutual housing). Amounts recovered by a grantee due to
breach of an owner's obligations under 850.155 must be used under (and
in accordance with the requirements of) the Housing Development Grant
Program or the Rental Rehabilitation Program, at the grantee's option.
Except for amounts recovered by the grantee due to such breach of owner
obligations, all other program income recovered by the grantee will be
considered miscellaneous revenue, the use of which is not governed by
the provisions of this part (other than this section).
24 CFR 850.73 Audit.
(a) Access to records. The Secretary of HUD, the Inspector General
of HUD, the Comptroller General of the United States, or any of their
duly authorized representatives, shall have access to all books,
accounts, records, reports, files, and other papers or property of
grantees or owners pertaining to funds provided under this part for the
purpose of making surveys, audits, examinations, excerpts and
transcripts.
(b) Grantee audits. The grantee's financial management system shall
provide for audits to be conducted by the grantee or at its direction,
in accordance with audit requirements in 24 CFR part 44. Audit reports
will be used in conjunction with the performance review procedures of
850.101.
(c) Additional audits. HUD may undertake such further or additional
audits as it finds necessary or appropriate.
(49 FR 24641, June 14, 1984, as amended at 50 FR 39091, Sept. 27,
1985; 51 FR 30480, Aug. 27, 1986)
24 CFR 850.75 Reporting requirements.
(a) General. Grantees will submit such reports, including litigation
reports, as HUD may require.
(b) Progress reports. Beginning on the date that HUD announces the
applicant's preliminary funding approval, the applicant must submit
semiannual progress reports, as specified by HUD. Reports will be
required until the project closeout is completed. They must contain
such information as HUD may prescribe, including information concerning
the project's construction schedule, construction and project costs, and
project occupancy. Failure to file these reports may result in remedial
action under subpart E, and will be considered in the selection of
future projects submitted by the applicant.
(c) Relocation and acquisition reports. Grantees will report at
least annually on a form prescribed by HUD on the numbers of persons and
businesses relocated, numbers remaining in the relocation workload, and
a general breakdown of relocation costs and on real property acquired.
(d) Equal opportunity reports. Grantees shall submit such reports as
HUD may prescribe to demonstrate conformance with the requirements of
850.35(a), (b), and (c).
24 CFR 850.77 Retention of records.
(a) General. Grantees must retain financial records, supporting
documents, statistical records, the environmental review records
required by 24 CFR 58.11, and all other records pertinent to the housing
development grant for a period of three years from the date of the
submission of the last progress report under 850.75(b), except that:
(1) Records that are the subject of audit findings must be retained
until the audit findings have been resolved, if that date is later; and
(2) an annual record of project occupancy must be maintained by the
grantee for the duration of the owner-grantee agreement described in
Subpart F, and each annual record must be retained for three years,
available to HUD on request.
(b) Nondiscrimination and equal opportunity records. Records
maintained by the owner pertaining to the race, color, creed, sex, or
national origin of tenants and applicants for tenancy in assisted
projects shall be retained by the owner for a period of at least 25
months following the date the record was made.
24 CFR 850.79 Project closeout.
(a) Initiation of closeout. HUD will advise the grantee to initiate
closeout procedures when HUD determines, in consultation with the
grantee, that there are no impediments to closeout and that the
following criteria have been met or will be shortly.
(1)(i) All costs to be paid with grant funds have been incurred, with
exception of any unsettled third-party claims against the grantee. For
purposes of this section, costs are incurred when goods and services are
received or contract work is performed, whether or not an invoice has
been received.
(ii) With respect to activities (such as rental assistance payments)
that are carried out by means of loan accounts, subsidy payment
accounts, or similar mechanisms, closeout may be initiated once the full
amount of the funds for these activities have been drawn down by the
grantee and have begun to be used for the purposes described in the
grant agreement.
(2) The last required progress report under 850.75(b) has been
submitted and, to the extent determined necessary by HUD for purposes of
the closeout, has been updated. The failure of a grantee to submit or
update a report as required will not preclude HUD from effecting a grant
closeout when this action is determined to be in the Federal interest.
The failure or refusal by a grantee to comply with this requirement will
be considered in the selection of future applications from the grantee.
(3) Other responsibilities of the grantee with repect to the grant
amounts under the grant agreement and applicable law and regulations
appear to have been carried out satisfactorily, and there is no further
Federal interest in keeping the grant agreement open for the purpose of
securing performance by parties to legally binding commitments.
(b) Final audit. Upon notification from HUD to initiate closeout
procedures, the grantee must arrange for a final audit of its grant
accounts and records in accordance with 850.73 and other HUD audit
requirements. A final review of the grantee's compliance with the grant
agreement and applicable law and regulations will be made during the
final audit.
(c) Certificate of completion and final cost. Upon resolution of any
findings of the final audit, the grantee must prepare a certification of
completion and final cost, in the manner prescribed by HUD, and submit
it to the responsible HUD Field Office.
(d) Refund of excess grant funds. The grantee must refund to HUD any
cash advanced in excess of the final grant amount, as shown on the
certificate of completion approved by HUD.
(e) Termination of grant for mutual convenience. Grant assistance
provided under this part may be cancelled, in whole or in part, by HUD
or the grantee, before completion of the approved project, if both
parties agree that the continuation of the project is infeasible or
would not produce beneficial results commensurate with the further
expenditure of funds. HUD will determine whether an environmental
review of the cancellation is required, and if so, who will perform it.
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. The grantee must not incur new obligations for the
terminated portion after the effective date, and cancel as many
outstanding obligations as possible. HUD will allow full credit to the
grantee for the non-cancellable obligations properly incurred by the
grantee in carrying out the project before the grant was terminated.
The closeout policies and procedures contained in this section will
apply in all such cases, except where the grant is cancelled in its
entirety. In this event, only the provisions of paragraphs (c) and (d)
of this section apply.
(f) Termination for cause. If the Secretary terminates the grantee's
entire grant, or the remaining balance, under the authority of 850.105
of this part, only the provisions of paragraphs (c) and (d) of this
section apply.
(g) Nothing in this section shall preclude enforcement by the Federal
government of grant agreement provisions, civil rights statutes, or
other provisions of law that apply to the Housing Development Grant
Program.
24 CFR 850.79 Subpart E -- Program Performance
24 CFR 850.101 Review of grantee's performance.
(a) General. HUD will monitor a grantee's performance to determine
whether the grantee is complying and has complied with the requirements
of the grant agreement.
(b) Performance review. (1) HUD will rely primarily on information
obtained from the grantee's records and reports, findings from on-site
monitoring, and audit reports. Where applicable, HUD may also consider
relevant information pertaining to a grantee's performance gained from
other sources, including litigation and citizen complaints.
(2) If HUD determined that the grantee has not met the requirements
of the grant agreement, the grantee will be given notice of this
determination and an opportunity to demonstrate, within the time
prescribed by HUD and on the basis of substantial facts and data, that
it has done so.
(3) If the grantee fails to demonstrate to HUD's satisfaction that it
has met the requirements of the grant agreement, HUD will take
appropriate corrective or remedial action in accordance with this
subpart.
24 CFR 850.103 Corrective and remedial actions.
In formulating appropriate corrective or remedial actions for
performance deficiencies, HUD will take one or more actions designed to
prevent a continuation of the deficiency; mitigate, to the extent
possible, its adverse effects or consequences; and prevent its
recurrence. In addition to the following actions, HUD will, as
appropriate, take the actions specified in 850.105 and 850.107:
(a) Direct the grantee to submit progress schedules for completing
approved activities;
(b) Issue a letter of warning advising the grantee of the deficiency,
establishing a date for corrective actions, and putting the grantee on
notice that more serious actions will be taken if the deficiency is not
corrected or is repeated;
(c) Inform the grantee that a certification of compliance is no
longer acceptable, and that additional information or assurances are
required;
(d) Direct the grantee to establish and follow a management plan that
assigns responsibilities for carrying out remedial actions;
(e) Direct the grantee to suspend, discontinue, or not incur costs
for the affected activity;
(f) Direct the grantee to reimburse the grantee's program account or
letter of credit in any amounts improperly expended;
(g) Change the method of payment from advance payment basis to a
reimbursement basis; or
(h) Direct the grantee to cancel the development grant project before
expending funds.
24 CFR 850.105 Reduction or termination of grant.
When HUD determines that a grantee has failed to meet one or more of
the requirements of the grant agreement, HUD may reduce or recapture the
housing development grant, including amounts already obligated, or take
other appropriate action. For purposes of this paragraph, ''other
appropriate action'' means any remedial action legally available,
including (without limitation) affirmative litigation, such as suits for
declaratory judgment, specific performance, temporary or permanent
injunctions and any other available remedies.
24 CFR 850.107 Claim for money.
When HUD makes a final determination that it has a judicially
enforceable claim for money against the grantee in a situation where the
housing development grant amount has been disbursed to the grantee for
ineligible uses of funds under this part, HUD will follow the procedures
described in the Federal Claims Collection Standards (4 CFR parts
101-105) in order to: (a) demand in writing that the grantee reimburse
HUD in the amount of the ineligible costs, using funds from
non-federally derived sources and (b) initiate affirmative litigation to
recover the amount of the ineligible use of funds if necessary for
collection. HUD's final determination to seek recovery under this
section of grant amounts expended for ineligible uses of funds shall
continue a claim within the meaning of 31 U.S.C. 3711, et, seq., and
interest shall be charged on delinquent claims as required by the
Federal Claims Collection Standards. Amounts recovered under this
section shall be deposited in the United States Treasury's miscellaneous
receipts account.
24 CFR 850.107 Subpart F -- Project Management
24 CFR 850.151 Project restrictions.
(a) Owner-grantee agreement. The grantee and the owner must enter
into an agreement that requires the owner (including its successors in
interest) to carry out the requirements of this section and of the grant
agreement, as appropriate. The grantee-owner agreement must require the
grantee to monitor (where required) and to take appropriate legal action
to enforce compliance with the owner's responsibilities thereunder. The
owner's compliance with its obligations under this section must be
secured by a mortgage or other security instrument meeting the
requirements of 850.155. Nothing in this section shall preclude
enforcement by the Federal government of grant agreement provisions,
civil rights statutes, or other provisions of law that apply to the
Housing Development Grant Program.
(b) Restriction on conversion. The owner shall not convert the units
in the project to condominium ownership or to a form of cooperative
ownership that is not eligible to receive a housing development grant,
during the 20-year period from the date on which the units in the
project are available for occupancy.
(c) Tenant selection. The owner shall not, during the 20-year period
from the date on which the units in the project are available for
occupancy, discriminate against prospective tenants on the basis of
their receipt of, or eligibility for, housing assistance under any
Federal, State, or local housing assistance program or, except for an
elderly housing project, on the basis that they have a minor child or
children who will be living with them.
(d) Restriction on leasing assisted units. The owner shall assure
that the percentage of lower income units specified in the grant
agreement is occupied, or is available for occupancy, by lower income
households during the period beginning on the date on which the units in
the project are available for occupancy through 20 years from the date
on which 50 percent of the units are occupied. The owner may lease a
lower income unit only to a tenant that is a lower income household at
the time of its initial occupancy. An owner may continue to lease a
lower income unit to a tenant that ceases to qualify as a lower income
household only as provided in paragraph (f) of this section.
(e) Lower income unit rent. (1) Section 17(d)(8)(A) of the U.S.
Housing Act of 1937 prohibits the rents for lower income units from
exceeding ''30 per centum of the adjusted income of a family whose
income equals 50 per centum of the median income for the area, as
determined by the Secretary with adjustments for smaller and larger
families.'' This paragraph describes how these maximum rent
determinations are made.
(2) The maximum rents that may be charged for lower income units are
based on the size of the unit by number of bedrooms, and are calculated
in accordance with the following procedure. For each unit size, HUD
will provide the Section 8 very low-income limits. HUD will also
provide income adjustments for each unit size, consistent with 24 CFR
part 813. An adjusted income amount for each unit size is calculated by
the owner or grantee by subtracting the income adjustment from the
Section 8 limit. The adjusted income amount is multiplied by 30 percent
and divided by 12 to obtain the maximum monthly gross rent for each
lower income unit. A monthly allowance for the utilities and services
(excluding telephone) to be paid by the tenant is subtracted from the
maximum monthly gross rent to obtain the maximum monthly rent that may
be charged for lower income units. Information to be provided by HUD
will be available from the responsible HUD Field Office.
(3) The initial monthly allowance for utilities and services to be
paid by the tenant must be approved by HUD. Subsequent calculations of
this allowance must be approved by the grantee in connection with its
review and approval of rent schedules under paragraph (e)(4) of this
section. The maximum monthly rent must be recalculated annually, and
may change as changes in the Section 8 very low-income limit, the income
adjustments, or the monthly allowance for utilities and services
warrant.
(4) The grantee must review and approve any schedule of rents
proposed by the owner for lower income units. Any schedule submitted by
an owner within the permissible maximum will be deemed approved, unless
the grantee informs the owner, within 60 days after receiving the
schedule, that it is disapproved.
(5) Any increase in rents for lower income units is subject to the
provisions of outstanding leases, in any event, the owner must provide
tenants of those units not less than 30 days prior written notice before
implementing any increase in rents.
(f) Reexamination of tenant income and composition. (1) The owner
shall reexamine the income of each tenant household living in lower
income units at least once a year.
(2) If this reexamination indicates that the tenant no longer
qualifies as a lower income household, the owner must take one of the
following actions, as appropriate: (i) If the unit occupied by the
tenant must be leased to a lower income household to maintain the
percentage of lower income units specified in the grant agreement, the
owner must notify the tenant that it must move when the current lease
expires or six months after the date of the notification, whichever is
later; (ii) If the owner can meet this percentage without the unit
occupied by the tenant (for example, by designating another comparable
unit as a lower income unit), the owner may continue to lease to that
tenant, but is free to renegotiate the rent at the expiration of the
current lease.
(g) Affirmative fair housing marketing. Marketing must be done in
accordance with the HUD-approved Affirmative Fair Housing Marketing
Plan, Form HUD-935.2, and all fair housing and equal opportunity
requirements. The purpose of the Plan and the requirements is to
provide for affirmative marketing through the provision of information
regarding the availability of units in projects assisted. Affirmative
marketing steps consist of good faith efforts to provide information and
otherwise attract eligible persons from all racial, ethnic and gender
groups in the housing market area to the available housing.
(h) Management and maintenance functions. The owner must perform all
management and maintenance functions in compliance with equal
opportunity requirements. These functions include selection of tenants,
reexamination of family income, evictions and other terminations of
tenancy, and all ordinary and extraordinary maintenance and repairs,
including replacement of capital items.
(i) Residency preferences. Local residency requirements are
prohibited. Local residency preferences may be applied in selecting
tenants only to the extent that they are not inconsistent with
affirmative fair housing marketing objectives and the owner's
HUD-approved AFHM Plan. With respect to any residency preference,
persons expected to reside in the community as a result of current or
planned employment will be treated as residents.
24 CFR 850.153 Rent control.
A project constructed or substantially rehabilitated with a housing
development grant is not subject to State or local rent control unless
the rent control requirements or agreements (a) (1) were entered into
under a State law or local ordinance of general applicability that was
enacted and in effect in the jurisdiction before November 30, 1983 and
(2) apply generally to rental housing projects not assisted under the
Housing Development Grant Program, or (b) are imposed under this
subpart. State and local rent controls expressly preempted by this
section include, but are not limited to, rent laws or ordinances, rent
regulating agreements, rent regulations, occupancy agreements, or
financial penalties for failure to achieve certain occupancy or rent
projections.
24 CFR 850.155 Securing owner's responsibilities.
Assistance provided under this part shall constitute a debt of the
owner (including its successors in interest) to the grantee, and shall
be secured by a mortgage or other security instrument. The debt shall
be repayable in the event of a substantive, uncorrected violation by an
owner of the obligations contained in paragraphs (b), (c), (d) and (e)
of 850.151. The instruments securing this debt shall provide for
repayment to the grantee in an amount equal to the total amount of
housing development grant assistance outstanding, plus interest which is
determined by the Secretary by adding two percent to the average yield
on outstanding marketable long-term obligations of the United States
during the month preceding the date on which assistance was made
available. The amount to be repaid shall be reduced by 10 percent for
each full year in excess of 10 years that intervened between the
beginning of the term of the owner-grantee agreement and the violation.
24 CFR 850.155 PART 880 -- SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM FOR NEW CONSTRUCTION
24 CFR 850.155 Subpart A -- Summary and Applicability
Sec.
880.101 General.
880.102 Processing.
880.103 Construction and management.
880.104 Applicability of revised regulation.
880.105 Applicability to proposals and projects under 24 CFR part
811.
24 CFR 850.155 Subpart B -- Definitions, Project Eligibility and Other
Requirements
880.201 Definitions.
880.202 Project eligibility.
880.203 Fair market rents.
880.204 Limitations on contract rents, replacement costs and
amenities.
880.205 Limitation on distributions.
880.206 Site and neighborhood standards.
880.207 Property standards.
880.208 Financing.
880.209 Relocation and land acquisition requirements.
880.210 Other Federal requirements.
880.211 Audits.
24 CFR 850.155 Subpart C -- Proposal Submission to Start of
Construction
880.301 Allocation of contract authority to field offices.
880.302 Procedures for resumption of processing of proposals and
preapproved site requests.
880.303 Special procedures for certain categories of proposals.
880.304 Publication of NOFA and receipt of proposals.
880.305 Contents of preliminary proposal; Disclosure.
880.306 Preliminary evaluation and technical processing.
880.307 Selection of proposals and use of remaining or additional
contract authority.
880.308 Contents of final proposal.
880.309 Review of final proposals.
880.310 Submission and review of working drawings, architect's
certification and requested changes.
880.311 Execution of agreement (and ACC if applicable).
24 CFR 850.155 Subpart D -- Construction Period and Cost Certification
880.401 Timely performance of work.
880.402 Inspections during construction.
880.403 (Reserved)
880.404 Project completion.
880.405 Cost certification and adjustment of contract rents.
24 CFR 850.155 Subpart E -- Housing Assistance Payments Contract
880.501 The contract.
880.502 Term of contract.
880.503 Maximum annual commitment and project account.
880.504 Leasing to eligible families.
880.505 Contract administration and conversions.
880.506 Default by owner (private-owner/HUD and PHA-owner/HUD
projects).
880.507 Default by PHA and/or owner (private-owner/PHA projects).
880.508 Notice upon contract expiration.
24 CFR 850.155 Subpart F -- Management
880.601 Responsibilities of owner.
880.602 Replacement reserve.
880.603 Selection and admission of assisted tenants.
880.604 Tenant rent.
880.605 Overcrowded and underoccupied units.
880.606 Lease requirements.
880.607 Termination of tenancy and modification of leases.
880.608 Security deposits.
880.609 Adjustment of contract rents.
880.610 Adjustment of utility allowances.
880.611 Conditions for receipt of vacancy payments.
880.612 Reviews during management period.
880.613 Federal selection preferences.
Authority: Secs. 3, 5, and 8, U.S. Housing Act of 1937 (42 U.S.C.
1437a, 1437c, and 1437f); sec. 7(d), Department of HUD Act (42 U.S.C.
3535(d)).
Source: 44 FR 59410, Oct. 15, 1979, unless otherwise noted.
Editorial Note: Nomenclature changes affecting this part appear at
49 FR 6714, Feb. 23, 1984.
24 CFR 850.155 Subpart A -- Summary and Applicability
24 CFR 880.101 General.
(a) Purpose. (1) The purpose of the Section 8 program is to provide
lower-income families with decent, safe and sanitary rental housing
through the use of a system of housing assistance payments. This part
contains the policies and procedures applicable to the Section 8 new
construction program. The assistance may be provided to public housing
agency owners or to private owners either directly from HUD or through
public housing agencies.
(2) In addition to this regulation, Section 8 new construction
assistance may also be made available through state housing finance and
development agencies (24 CFR part 883), in connection with financing by
the Farmers' Home Administration (24 CFR part 883) or in connection with
direct HUD loans for housing for the elderly or handicapped (24 CFR part
885). Section 8 may also provide assistance in substantially
rehabilitated housing (24 CFR part 881) or in existing housing in
acceptable condition or needing only moderate rehabilitation (24 CFR
part 882).
(3) This part does not apply to projects developed under other
Section 8 program regulations, including parts 881, 882, 883, and 885,
except to the extent specifically stated in those parts.
(b) Housing Assistance. Under the Section 8 new construction
program, monthly payments are made directly by the contract
administrator (HUD or a public housing agency) to the project owner to
assist an eligible family leasing an assisted unit or for vacancies in
certain cases. These payments, known as ''housing assistance
payments,'' are made pursuant to a Housing Assistance Payments Contract,
which is executed upon satisfactory completion and HUD acceptance of a
project and which has a maximum term of from 20 to 40 years depending on
how the project is financed. This Contract is discussed in subpart E.
(c) Tenant Rents and Eligible Families. In addition to the Housing
Assistance Payments, the project Owner receives a Tenant Rent directly
from the assisted family. The total amount received by the Owner for
rent is called the Contract Rent. Eligible families are Families that
at admission have incomes within the HUD-specified income limits and are
unable to pay the Gross Rent with their Total Tenant Payment.
(d) Rent, cost and amenities limitations. In the Section 8 new
construction program, rents, replacement costs and amenities must comply
with limitations contained in subpart B. These limitations serve to
establish the modest nature of housing assisted under the program and to
assure that the rents in Section 8 housing are reasonable in relation to
comparable unassisted housing in the area. After occupancy, rents will
be adjusted to reflect changes in the costs of owning and operating
rental housing.
(e) Financing. The Section 8 program provides only rental
assistance. It does not provide construction or permanent financing.
Section 8 may be used with any type of construction or permanent
financing, such as FHA mortgage insurance programs, tax-exempt financing
(see 24 CFR parts 811 and 883) and loans from conventional lending
institutions. The owner can pledge the commitment to make housing
assistance payments contained in the contract to support financing.
(f) Eligible owners. All types of private developers and sponsors,
including profit-motivated and non-profit, and public housing agency
developers and sponsors are eligible to develop and own housing assisted
under this program. In all cases, the owner is responsible for the
determination of eligibility and selection of tenants and for all
management and maintenance functions. The provisions governing project
management are contained in subpart F.
(g) Allocation of Contract authority. HUD commits funding for new
projects under the Section 8 program and increases the funding
commitment for previously approved projects pursuant to contract
authority provided by Congress. The contract authority for new projects
is allocated to HUD field offices on the basis of a ''fair share''
formula reflecting population, poverty, overcrowding, housing condition
and similar indices of housing need. Each field office, in turn,
suballocates its contract authority among the various allocation areas
within its jurisdiction on essentially the same ''fair share'' basis.
Not every area receives an allocation of contract authority for new
construction. A further description of this process is contained in 24
CFR part 791, subpart D.
(44 FR 59410, Oct. 15, 1979, as amended at 49 FR 19943, May 10, 1984)
24 CFR 880.102 Processing.
Proposals for housing to be assisted under this part are submitted to
HUD field offices and processed differently depending on several
criteria.
(a) Previously submitted ''pipeline'' proposals which are of high
quality and were found approvable but not funded in the prior fiscal
year are reviewed first when any new contract authority becomes
available. If additional authority remains, HUD may consider
preapproved sites, and, in certain areas, permit selection of developers
by local governments. Where there are set-asides for projects to be
owned by local public housing agencies or to be located in HUD-approved
New Communities or for other purposes, proposals may be received,
processed and approved without the need to await specified acceptance
periods or to undergo formal competition. Sections 880.302 and 880.303
of subpart C set forth these procedures.
(b) HUD receives other proposals under this part from owners
(developers) in response to public invitations, called notifications of
fund availability (NOFAs), which request the submission of preliminary
proposals containing a maximum number and type of units in a particular
area. Interested owners obtain copies of the detailed developer's
packet from the HUD field office which published the NOFA.
(c) HUD reviews all proposals received in response to a NOFA for
deficiencies in documentation and content in order to determine
eligibility for further processing. If there are more acceptable
proposals than can be approved under available Section 8 contract
authority, HUD evaluates the proposals, ranks them and selects the
highest ranking proposals. Those not selected which are of high quality
are placed in the pipeline for possible later funding. Proposals for
projects for non-elderly families are accepted as long as contract
authority remains available and are reviewed on a monthly cycle.
Proposals for projects for elderly families must be submitted by the
specified deadline date and are reviewed at the end of the submission
period. Details of this process are contained in subpart C, 880.304
through 880.307.
(d) After HUD selects a preliminary proposal, the owner of the
selected proposal submits a final proposal for the project. This
proposal contains a more detailed description of the project, including
cost and expense estimates where required, and more detailed plans for
design, construction, financing and management. After HUD review and
approval of the final proposal, the working drawings are completed by
the owner's architect and reviewed by HUD for compliance with project
amenities limitations. When HUD finds these drawings to be acceptable,
an Agreement is executed by the owner and the contract administrator
(either HUD or a public housing agency) and construction begins.
Details of this process are contained in subpart C, 880.308 through
880.311. The Agreement provides that a Contract will be executed upon
proper construction, completion and acceptance by HUD of the project.
(44 FR 59410, Oct. 15, 1979, as amended at 45 FR 18923, Mar. 24,
1980)
24 CFR 880.103 Construction and management.
(a) Construction. Construction of the project is carried out in
conformance with the Agreement. Increases in contract rents are
permitted with HUD approval during construction only for the reasons
specified in 880.204(b)(2). The project will be accepted by HUD and a
Contract executed upon completion in accordance with the Agreement.
These provisions are contained in subpart D, 880.401 through 880.404.
(b) Cost certification. As soon as possible after completion of a
project, the owner, except in the case of exempted projects, will
provide HUD with cost certifications. HUD will review the contract
rents based on the owner's certified cost and reduce them where not
justified by actual cost. Section 880.405 details this process.
(c) Contract. The owner and the contract administrator will execute
the Contract on satisfactory completion of the project. The Contract
provides that the owner will receive housing assistance payments for
units being leased by eligible families and, under certain
circumstances, payments for vacant units. The owner may not reduce the
number of units in a project available for lower-income families by more
than 10 percent without the prior approval of HUD. The term of the
Contract varies depending on the type of financing used by the owner.
Administration of the Contract is done either by HUD or by a public
housing agency under an Annual Contributions Contract with HUD to assure
that the owner meets his/her obligations under the Contract. Subpart E
contains provisions concerning the Contract.
(d) Management. The owner is responsible for all management
functions, including marketing, selection of tenants, reexamination of
family incomes, evictions and other terminations of tenancy and
collection of rents. The owner must also provide for a replacement
reserve. Contract rents will be adjusted annually in accordance with 24
CFR part 888. Subpart F contains management provisions.
(44 FR 59410, Oct. 15, 1979, as amended at 48 FR 12702, Mar. 28,
1983; 49 FR 17449, Apr. 24, 1984)
24 CFR 880.104 Applicability of revised regulation.
(a) The revised part 880 applies to all proposals for which a
notification of selection was not issued before the effective date of
this revision. Where a notification of selection was issued for a
proposal before the effective date, the revised part will apply if the
owner notifies HUD within 60 calendar days that he/she wishes the
revision to apply and promptly brings the proposal into conformance.
(b) Subparts E (Housing Assistance Payments Contract) and F
(Management) apply to all projects for which an Agreement was not
executed before the effective date of the revision. Where an Agreement
was so executed:
(1) The owner and HUD may agree to make the revised subpart E
applicable and to execute appropriate amendments to the Agreement and/or
Contract.
(2) The owner and HUD may agree to make the revised subpart F
applicable (with or without the limitation on distributions) and to
execute appropriate amendments to the Agreement and/or Contract.
(c) Section 880.607, Termination of Tenancy and Modification of
Leases, applies to new families who begin occupancy or execute a lease
on or after 30 days after the effective date of this revision. This
section also applies to families not covered by the preceding sentence,
including existing families under lease, with respect to all leases in
which a renewal becomes effective on or after the 60th day following the
effective date of this revision. A lease is considered to be renewed
where both the landlord and the family fail to terminate a tenancy under
a lease permitting either party to terminate.
24 CFR 880.105 Applicability to proposals and projects under 24 CFR
part 811.
Where proposals and projects are financed with tax-exempt obligations
under 24 CFR part 811, the provisions of part 811 will be complied with
in addition to all requirements of this part. In the event of any
conflict between this part and part 811, part 811 will control.
24 CFR 880.105 Subpart B -- Definitions, Project Eligibility and Other Requirements
24 CFR 880.201 Definitions.
ACC. (Annual Contributions Contract) For a private-owner/PHA project,
for which the Contract is administered by a PHA, the ACC is the contract
between the PHA (as contract administrator) and HUD. Under the ACC, HUD
commits to provide the PHA with the funds needed to make housing
assistance payments to the owner and to pay the PHA for HUD-approved
administrative fees, and the PHA agrees to perform the duties of a
contract administrator.
Agreement. (Agreement to Enter into Housing Assistance Payments
Contract) The Agreement between the owner and the contract administrator
which provides that, upon satisfactory completion of the project in
accordance with the HUD-approved final proposal, the administrator will
enter into the Contract with the owner.
Allocation area. A municipality, county, one or more Indian areas,
or group of contiguous municipalities or counties identified by HUD or
in an approved Areawide Housing Opportunity Plan for the purpose of
allocating housing assistance to support economically feasible housing
projects.
Annual income. As defined in part 813 of this chapter.
Assisted unit. A dwelling unit eligible for assistance under a
Contract.
Contract. (Housing Assistance Payments Contract) The Contract entered
into by the owner and the contract administrator upon satisfactory
completion of the project, which sets forth the rights and duties of the
parties with respect to the project and the payments under the Contract.
Contract Administrator. The entity which enters into the Contract
with the owner and is responsible for monitoring performance by the
owner. The contract administrator is a PHA in the case of
private-owner/PHA projects, and HUD in private-owner/HUD and
PHA-owner/HUD projects.
Contract Rent. The total amount of rent specified in the Contract as
payable by HUD and the tenant to the owner for an assisted unit. In the
case of the rental of only a manufactured home space, ''contract rent''
is the total rent specified in the Contract as payable by HUD and the
tenant to the owner for rental of the space, including fees or charges
for management and maintenance services with respect to the space, but
excluding utility charges for the manufactured home.
Decent, safe and sanitary. Housing is decent, safe and sanitary at
project completion if the dwelling units and related facilities are
accepted by HUD as meeting the requirements of the Agreement. Housing
continues to be decent, safe and sanitary if it is maintained in a
condition substantially the same as at the time of acceptance.
Elderly Family. As defined in parts 812 and 813 of this chapter.
Fair Market Rent. HUD's determination of the rents, including
utilities (except telephone), ranges and refrigerators, parking, and all
maintenance, management and other essential housing services, which
would be required to obtain, in a particular market area, privately
developed and owned, newly constructed rental housing of modest design
with suitable amenities. In the case of manufactured home spaces, Fair
Market Rent is HUD's determination of the rents that would be required
to obtain, in a particular market area, privately developed and owned
spaces of modest design in newly constructed manufactured home parks,
including maintenance and management services with respect to the space,
but excluding utility charges for the manufactured home.
Family (eligible family). As defined in part 812 of this chapter.
Final proposal. The detailed description of a proposed project to be
assisted under this part, which an owner submits after selection of the
preliminary proposal, except where a preliminary proposal is not
required under 880.303(c). (The final proposal becomes an exhibit to
the Agreement and is the standard by which HUD judges acceptable
construction of the project.)
Gross Rent. As defined in part 813 of this chapter.
Household type. The three household types are (1) elderly and
handicapped, (2) family, and (3) large family.
Housing Assistance Payment. The payment made by the contract
administrator to the Owner of an assisted unit as provided in the
Contract. Where the unit is leased to an eligible Family, the payment
is the difference between the Contract Rent and the Tenant Rent. An
additional payment is made to the Family when the Utility Allowance is
greater than the Total Tenant Payment. In the case of a Family renting
only a manufactured home space as provided in 880.202(j), the Housing
Assistance Payment is the difference between the Gross Rent and the
Total Tenant Payment, but such payment may not exceed the Contract Rent
for the space, and no additional payment is made to the Family. A
Housing Assistance Payment, known as a ''vacancy payment'', may be made
to the Owner when an assisted unit is vacant, in accordance with the
terms of the Contract.
Housing Assistance Plan. A housing plan which is submitted by a unit
of general local government and approved by HUD as being acceptable
under the standards of 24 CFR, part 570.
Housing type. The three housing types are new construction,
rehabilitation, and existing housing.
HUD. The Department of Housing and Urban Development.
Independent Public Accountant. A Certified Public Accountant or a
licensed or registered public accountant, having no business
relationship with the owner except for the performance of audit, systems
work and tax preparation. If not certified, the Independent Public
Accountant must have been licensed or registered by a regulatory
authority of a State or other political subdivision of the United States
on or before December 31, 1970. In States that do not regulate the use
of the title ''public accountant,'' only Certified Public Accountants
may be used.
Lower Income Family. As defined in part 813 of this chapter.
New Communities. New community developments approved under Title IV
of the Housing and Urban Development Act of 1968 and Title VII of the
Housing and Urban Development Act of 1970.
NOFA. (Notification of Fund Availability) The notice published by HUD
announcing the availability of contract authority for housing assistance
and inviting the submission of proposals.
Owner. Any private person or entity (including a cooperative) or a
public entity which qualifies as a PHA, having the legal right to lease
or sublease newly constructed dwelling units assisted under this part.
The term owner also includes the person or entity submitting a proposal
under this part.
Partially-assisted Project. A project for non-elderly families under
this part which includes more than 50 units of which 20 percent or fewer
are assisted.
PHA. (Public Housing Agency) Any State, county, municipality or other
governmental entity or public body (or agency or instrumentality
thereof) which is authorized to engage in or assist in the development
or operation of housing for lower-income families.
PHA-Owner/HUD Project. A project under this part which is owned by a
PHA. For this type of project, the Agreement and the Contract are
entered into by the PHA, as owner, and HUD, as contract administrator.
Preliminary proposal. The application describing a proposed project
under this part which an owner submits in response to a NOFA in order to
be selected for housing assistance.
Private-Owner/HUD Project. A project under this part which is owned
by a private owner. For this type of project, the Agreement and
Contract are entered into by the private owner, as owner, and HUD, as
contract administrator.
Private-Owner/PHA Project. A project under this part which is owned
by a private owner. For this type of project, the Agreement and
Contract are entered into by the private owner, as owner, and the PHA,
as contract administrator, pursuant to an ACC between the PHA and HUD.
The term also covers the situation where the ACC is with one PHA and the
owner is another PHA.
Project Account. A specifically identified and segregated account
for each project which is established in accordance with 880.503(b) out
of the amounts by which the maximum annual commitment exceeds the amount
actually paid out under the Contract or ACC, as applicable, each year.
Rent. In the case of an assisted unit in a cooperative project, rent
means the carrying charges payable to the cooperative with respect to
occupancy of the unit.
Replacement cost. The estimated construction cost of the project
when the proposed improvements are completed. The replacement cost may
include the land, the physical improvements, utilities within the
boundaries of the land, architect's fees, and miscellaneous charges
incident to construction as approved by the Assistant Secretary.
Secretary. The Secretary of Housing and Urban Development (or
designee).
Small Project. A project for non-elderly families under this part
which includes a total of 50 or fewer (assisted and unassisted) units.
Tenant Rent. The monthly amount defined in, and determined in
accordance with part 813 of this chapter.
Total Tenant Payment. The monthly amount defined in, and determined
in accordance with part 813 of this chapter.
Utility allowance As defined in part 813 of this chapter, made or
approved by HUD.
Utility reimbursement. As defined in part 813 of this chapter.
Vacancy payment. The housing assistance payment made to the owner by
the contract administrator for a vacant assisted unit if certain
conditions are fulfilled as provided in the Contract. The amount of the
vacancy payment varies with the length of the vacancy period and is less
after the first 60 days of any vacancy.
Very Low-income Family. As defined in part 813 of this chapter.
(44 FR 59410, Oct. 15, 1979, as amended at 45 FR 18923, Mar. 24,
1980; 48 FR 12703, Mar. 28, 1983; 49 FR 6714, Feb. 23, 1984; 49 FR
17449, Apr. 24, 1984; 49 FR 19943, May 10, 1984)
24 CFR 880.202 Project eligibility.
(a) For purposes of this part, ''new construction'' refers to (1)
housing for which construction starts after execution of the Agreement,
or (2) housing which is already under construction when the Agreement is
executed provided that:
(i) At the date of application to HUD, a substantial amount of
construction (generally at least 25 percent) remains to be completed;
(ii) At the date of application to HUD, the project cannot be
completed and occupied by eligible families without assistance under
this part; and
(iii) At the time construction was initiated, all parties reasonably
expected that the project would be completed and occupied without
assistance under this part.
(b) The Section 8 new construction program is for rental housing
only. Cooperatives are considered rental housing rather than
owner-occupied housing for purposes of this part. No assistance will be
provided for any unit occupied by an owner, except as provided in
paragraph (j) of this section.
(c) The types of new construction rental housing which can be
assisted under this part include:
(1) Single-family houses, manufactured homes (as provided in
paragraph (j) of this section) and multifamily structures; and (2)
housing designed for the elderly, disabled or handicapped.
(d) High-rise elevator projects for families with children are
prohibited unless HUD determines that there is no practical alternative.
(e) High-rise elevator projects for the elderly may be approved only
if HUD determines that high-rise construction is appropriate after
taking into account land costs, safety and security factors.
(f) Projects for non-elderly families are required, where
practicable, to have at least 5 percent of the housing units designed
and accessible to the physically handicapped.
(g) Housing assisted under other provisions of the U.S. Housing Act
of 1937, such as public housing assisted with annual contributions under
Sections 5 and 9 of the Act, is not eligible for assistance under this
part. Tax exemption under Section 11(b) of the Act is not considered
assistance for this purpose.
(h) Conversions of new construction projects under the Section 23
Leased Housing Program to the Section 8 program will be permitted, where
appropriate, provided that the Section 23 project qualifies as new
construction under paragraph (a) of this section and that all parties,
including HUD, agree.
(i) No proposal for housing under this part may be approved unless
the requirements of 24 CFR part 791, implementing Sections 213 (a), (b)
and (c) of the Housing and Community Development Act of 1974, as
amended, concerning review and comment by units of general local
government, have been satisfied. (See 880.306(c)(1).)
(j) Units in newly constructed manufactured home parks are eligible
for assistance under this part. Such assistance may be provided with
respect to the rental of a new manufactured home and the space on which
it is located, or, where a manufactured home is owned by an eligible
family, with respect to the rental of the space alone (including a space
in a cooperative).
(44 FR 59410, Oct. 15, 1979, as amended at 48 FR 12703, Mar. 28,
1983; 49 FR 17449, Apr. 24, 1984)
24 CFR 880.203 Fair market rents.
(a) Fair Market Rents are HUD's determination of the rents, including
utilities (except telephone), ranges and refrigerators, parking, and all
maintenance, management and other essential housing services, which
would be required to obtain, in a particular market area, privately
developed and owned, newly constructed rental housing of modest design
with suitable amenities. In the case of manufactured home spaces, Fair
Market Rent is HUD's determination of the rents that would be required
to obtain, in a particular market area, privately developed and owned
spaces of modest design in newly constructed manufactured home parks,
including maintenance and management services with respect to the space,
but excluding utility charges for the manufactured home.
(b) Separate Fair Market Rents are established by unit size (number
of bedrooms), basic structure type (detached, semi-detached/row, walk-up
and elevator apartments) and occupant group (non-elderly family and
elderly family, including handicapped) for individual market areas.
(c) The Fair Market Rents for (1) dwelling units designed for the
elderly, disabled or handicapped are those for the appropriate size
units, not to exceed 2-bedrooms for the elderly, multiplied by 1.05, (2)
congregate housing dwelling units are the same as for non-congregate
units, and (3) manufactured home spaces are 125 percent of the Fair
Market Rents for Section 8 Existing manufactured home spaces.
(d) Fair Market Rents will be established by HUD and will be
published in the Federal Register in accordance with part 888 of this
chapter. Revisions for one or more market areas may be initiated by HUD
at any time and may be published as market conditions dictate.
(44 FR 59410, Oct. 15, 1979, as amended at 48 FR 12703, Mar. 28,
1983; 49 FR 17449, Apr. 24, 1984; 50 FR 38794, Sept. 25, 1985)
24 CFR 880.204 Limitations on contract rents, replacement costs and
amenities.
(a) Purpose and applicability of limitations. The purpose of the
Section 8 program is to assist lower-income families in renting decent,
safe and sanitary housing of modest design with suitable amenities.
This section sets limitations on the contract rents, replacement costs
and amenities of projects constructed under this part. These
limitations are intended to permit production of suitable housing
without excessive costs, design features or amenities.
(b)(1) Limitation on contract rents. The contract rents for a
project through cost certification at completion must be within both of
the following limitations:
(i) Fair market rent. The contract rent plus any utility allowance
for the unit must not exceed the Fair Market Rent in effect at the time
of processing. The published Fair Market Rents will reflect a trended
rent in order to allow for the period of construction as stated in the
publication. If the scheduled construction time for a project is less,
an appropriate reduction will be made in determining the approvable
contract rent. The contract rent plus utility allowance may exceed the
applicable Fair Market Rent under special circumstances or if needed to
implement a local Housing Assistance Plan:
(A) By up to 10 percent with the approval of the HUD field office
manager, or
(B) Except in the case of the rental of a manufactured home space
only, by up to 20 percent with the approval of the Regional
Administrator.
(ii) Rent reasonableness. The contract rent must be reasonable.
Contract rents will be considered reasonable only under the following
conditions:
(A) When HUD determines that the rents compare reasonably to or are
below the rents of unassisted units of similar age, design and location
which provide comparable amenities and services; or
(B) Rents may exceed those determined by market comparison by no more
than 20 percent (10 percent for the rental of manufactured home spaces
only) only in cases where warranted by cost and expense estimates
provided by the owner at final proposal and cost certification at
completion, as specified in 880.308 and 880.405; or
(C) For small projects and partially assisted projects, the rents may
exceed the comparable rents by up to 10 percent without the cost
justification set forth in paragraph (b)(1)(ii)(B) of this section.
(2) Limitation on contract rent increases. Between selection of the
Preliminary Proposal and cost certification at completion, increases in
contract rents may be made only with HUD approval within the Fair Market
Rent and rent reasonableness limitations established pursuant to
paragraph (b)(1) of this section, and only to reflect the amount
necessary to cover:
(i) Design changes required by HUD or the State or local government;
(ii) Changes in financing approved by HUD; or
(iii) Unforeseen factors (e.g., strikes, weather delays, delays
caused by local government, substantial errors by HUD in the original
processing which would otherwise result in serious inequities, and acts
of God) determined by HUD to be beyond the owner's control.
All requests for increases in contract rents under this paragraph
(b)(2) of this section shall be submitted to the field office for review
as soon as the need for the increase becomes apparent. After cost
certification at completion, contract rents may be increased only by
adjustments in accordance with 880.609. This paragraph does not apply
to any project where the Agreement was entered into before October 1,
1981.
(c) Limitation on Replacement Costs. (1) No proposal for a project
to be assisted under this part will be selected or approved by HUD, and
no Agreement may be executed for a project, with an estimated
replacement cost greater than the following limits plus any additional
cost not attributable to dwelling use to the extend approved by HUD.
The limits applicable to the part of the project attributable to
dwelling use, as determined by HUD, are as follows:
(i) The basic limits are:
(A) $23,720 per dwelling unit without a bedroom;
(B) $27,129 per dwelling unit with one bedroom;
(C) $32,983 per dwelling unit with two bedrooms;
(D) $42,217 per dwelling unit with three bedrooms; and
(E) $47,032 per dwelling unit with four or more bedrooms.
(ii) Where necessary to compensate for the higher costs incident to
construction of elevator type structures of sound standards of
construction and design, HUD may increase the limits provided in
paragraph (c)(1)(i) of this section, not to exceed:
(A) $24,962 per dwelling unit without a bedroom;
(B) $28,614 per dwelling unit with one bedroom;
(C) $34,795 per dwelling unit with two bedrooms;
(D) $45,011 per dwelling unit with three bedrooms; and
(E) $49,409 per dwelling unit with four or more bedrooms.
(iii) For any market area where cost levels so require, the Assistant
Secretary may increase, at the request of the field office, the dollar
amount limits set forth in paragraphs (c)(1) (i) and (ii) of this
section by an amount not to exceed 75 percent.
(iv) If the Assistant Secretary finds that, because of high costs, it
is not feasible to construct dwellings in Alaska, Guam, or Hawaii
without the sacrifice of sound standards of construction, design, and
livability within the limits in paragraphs (c)(1) (i) and (ii), of this
section, the principal amount of the replacement cost limits may be
increased by amounts as are necessary to compensate for additional
costs, but not to exceed the maximum, including high cost area increases
under paragraph (c)(1)(iii) of this section, if any, otherwise
applicable by more than 50 percent.
(2) Except for the exemption contained in paragraph (c)(3) of this
section, the limitation on replacement costs applies to all projects in
their entirety.
(3) Partially-assisted project are exempt from the replacement cost
limitation of this paragraph.
(4) The mortgage amount of a HUD-insured proposal will be determined
in accordance with the limitations and requirements of the applicable
mortgage insurance program.
(5) Subsequent changes to the limitations on replacement costs under
paragraphs (c)(1) of this section, will be made by Notice published in
the Federal Register and will be available on request.
(6) With respect to Agreements entered into on or after October 1,
1981, between selection of the Preliminary Proposal and cost
certification at completion, increases in the HUD-approved estimate of
project replacement cost are permitted only for one or more of the
reasons specified in paragraph (b)(2) of this section.
(d) Excess Costs. The limitation of paragraph (c) of this section
will not prohibit the total actual cost of a project from exceeding the
limit referred to in that paragraph. However, in determining or
adjusting contract rents, HUD will not take into account or give credit
for any cost which exceeds the applicable replacement cost limit.
(e) Limitation on housing design and amenities. Housing assisted
under this part shall be modest in design. Amenities in projects
assisted under this part (except partially assisted projects) will be
limited to those amenities, as determined by HUD, which are generally
provided in unassisted, decent, safe and sanitary housing for lower
income families in the market area. The use of more durable,
high-quality materials to control or reduce maintenance, repair and
replacement costs will not be considered an excess amenity.
(44 FR 59410, Oct. 15, 1979, as amended at 45 FR 18923, Mar. 24,
1980; 48 FR 12703, Mar. 28, 1983; 49 FR 6714, Feb. 23, 1984; 56 FR
36002, July 30, 1991)
24 CFR 880.205 Limitation on distributions.
(a) Non-profit owners are not entitled to distributions of project
funds.
(b) For the life of the Contract, project funds may only be
distributed to profit-motivated owners at the end of each fiscal year of
project operation following the effective date of the Contract after all
project expenses have been paid, or funds have been set aside for
payment, and all reserve requirements have been met. The first year's
distribution may not be made until cost certification, where applicable,
is completed. Distributions may not exceed the following maximum
returns:
(1) For projects for elderly families, the first year's distribution
will be limited to 6 percent on equity. The Assistant Secretary may
provide for increases in subsequent years' distributions on an annual or
other basis so that the permitted return reflects a 6 percent return on
the value in subsequent years, as determined by HUD, of the approved
initial equity. Any such adjustment will be made by Notice in the
Federal Register.
(2) For projects for non-elderly families, the first year's
distribution will be limited to 10 percent on equity. The Assistant
Secretary may provide for increases in subsequent years' distributions
on an annual or other basis so that the permitted return reflects a 10
percent return on the value in subsequent years, as determined by HUD,
of the approved initial equity. Any such adjustment will be made by
Notice in the Federal Register.
(c) For the purpose of determining the allowable distribution, an
owner's equity investment in a project is deemed to be 10 percent of the
replacement cost of the part of the project attributable to dwelling use
accepted by HUD at cost certification (see 880.405) unless the owner
justifies a higher equity contribution by cost certification
documentation in accordance with HUD mortgage insurance procedures.
(d) Any short-fall in return may be made up from surplus project
funds in future years.
(e) If HUD determines at any time that project funds are more than
the amount needed for project operations, reserve requirements and
permitted distribution, HUD may require the excess to be placed in an
account to be used to reduce housing assistance payments or for other
project purposes. Upon termination of the Contract, any excess funds
must be remitted to HUD.
(f) Owners of small projects or partially-assisted projects are
exempt from the limitation on distributions contained in paragraphs (b)
through (d) of this section.
(g) In the case of HUD-insured projects, the provisions of this
section will apply instead of the otherwise applicable mortgage
insurance program provisions.
(44 FR 59410, Oct. 15, 1979, as amended at 45 FR 18923, Mar. 24,
1980; 49 FR 6714, Feb. 23, 1984)
24 CFR 880.206 Site and neighborhood standards.
Proposed sites for new construction projects must be approved by HUD
as meeting the following standards:
(a) The site must be adequate in size, exposure and contour to
accommodate the number and type of units proposed; and adequate
utilities (water, sewer, gas and electricity) and streets must be
available to service the site.
(b) The site and neighborhood must be suitable from the standpoint of
facilitating and furthering full compliance with the applicable
provisions of Title VI of the Civil Rights Act of 1964, Title VIII of
the Civil Rights Act of 1968, Executive Order 11063, and HUD regulations
issued pursuant thereto.
(c) The site must not be located in:
(1) An area of minority concentration unless (i) sufficient,
comparable opportunities exist for housing for minority families, in the
income range to be served by the proposed project, outside areas of
minority concentration, or (ii) the project is necessary to meet
overriding housing needs which cannot otherwise feasibly be met in that
housing market area. An ''overriding need'' may not serve as the basis
for determining that a site is acceptable if the only reason the need
cannot otherwise feasibly be met is that discrimination on the basis of
race, color, religion, creed, sex, or national origin renders sites
outside areas of minority concentration unavailable; or
(2) A racially mixed area if the project will cause a significant
increase in the proportion of minority to non-minority residents in the
area.
(d) The site must promote greater choice of housing opportunities and
avoid undue concentration of assisted persons in areas containing a high
proportion of low-income persons.
(e) The site must be free from adverse environmental conditions,
natural or manmade, such as instability, flooding, septic tank back-ups,
sewage hazards, or mudslides; harmful air pollution, smoke or dust;
excessive noise vibration, or vehicular traffic; rodent or vermin
infestation; or fire hazards. The neighborhood must not be one which
is seriously detrimental to family life or in which substandard
dwellings or other undesirable elements predominate, unless there is
actively in progress a concerted program to remedy the undesirable
conditions.
(f) The site must comply with any applicable conditions in the local
Housing Assistance Plan approved by HUD.
(g) The housing must be accessible to social, recreational,
educational, commercial, and health facilities and services, and other
municipal facilities and services that are at least equivalent to those
typically found in neighborhoods consisting largely of unassisted,
standard housing of similar market rents.
(h) Travel time and cost via public transportation or private
automobile, from the neighborhood to places of employment providing a
range of jobs for lower-income workers, must not be excessive. (While
it is important that elderly housing not be totally isolated from
employment opportunities, this requirement need not be adhered to
rigidly for such projects.)
(i) The project may not be built on a site that has occupants unless
the relocation requirements referred to in 880.209 are met.
(j) The project may not be built in an area that has been identified
by HUD as having special flood hazards and in which the sale of flood
insurance has been made available under the National Flood Insurance Act
of 1968, unless the project is covered by flood insurance as required by
the Flood Disaster Protection Act of 1973, and it meets any relevant HUD
standards and local requirements.
24 CFR 880.207 Property standards.
Projects must comply with:
(a) HUD Minimum Property Standards;
(b) In the case of manufactured homes, the Federal Manufactured Home
Construction and Safety Standards, pursuant to Title VI of the Housing
and Community Development Act of 1974, and 24 CFR part 3280;
(c) In the case of congregate or single room occupant housing, the
appropriate HUD guidelines and standards;
(d) HUD requirements pursuant to section 209 of the Housing and
Community Development Act of 1974 for projects for the elderly or
handicapped;
(e) HUD requirements pertaining to noise abatement and control; and
(f) Applicable State and local laws, codes, ordinances and
regulations.
(44 FR 59410, Oct. 15, 1979, as amended at 50 FR 9269, Mar. 7, 1985)
24 CFR 880.208 Financing.
(a) Types of financing. Any type of construction financing and
long-term financing may be used, including:
(1) Conventional loans from commercial banks, savings banks, savings
and loan associations, pension funds, insurance companies or other
financial institutions;
(2) Mortgage insurance programs under the National Housing Act;
(3) Mortgage and loan programs of the Farmers' Home Administration of
the Department of Agriculture compatible with the Section 8 program;
and
(4) Financing by tax-exempt bonds or other obligations.
(b) HUD approval. HUD must approve the terms and conditions of the
financing to determine consistency with these regulations and to assure
they do not purport to pledge or give greater rights or funds to any
party than are provided under the Agreement, Contract, and/or ACC.
Where the project is financed with tax-exempt obligations, the terms and
conditions will be approved in accordance with the following:
(1) An issuer of obligations that are tax-exempt under any provision
of Federal law or regulation, the proceeds of the sale of which are to
be used to purchase GNMA mortgage-backed securities issued by the
mortgagee of the Section 8 project, will be subject to 24 CFR part 811,
subpart B.
(2) Issuers of obligations that are tax-exempt under Section 11(b) of
the U.S. Housing Act of 1937 will be subject to 24 CFR part 811, subpart
A if paragraph (b)(1) of this section is not applicable.
(3) Issuers of obligations that are tax-exempt under any provision of
Federal law or regulation other than section 11(b) of the U.S. Housing
Act of 1937 will be subject to 24 CFR part 811, subpart A if paragraph
(b)(1) of this section is not applicable, except that such issuers that
are State Agencies qualified under 24 CFR part 883 are not subject to 24
CFR part 811 subpart A and are subject solely to the requirements of 24
CFR part 883 with regard to the approval of tax-exempt financing.
(c) Pledge of Contracts. An owner may pledge, or offer as security
for any loan or obligation, an Agreement, Contract or ACC entered into
pursuant to this part: Provided, however, That such financing is in
connection with a project constructed pursuant to this part and approved
by HUD. Any pledge of the Agreement, Contract, or ACC, or payments
thereunder, will be limited to the amounts payable under the Contract or
ACC in accordance with its terms. If the pledge or other document
provides that all payments will be paid directly to the mortgagee or the
trustee for bondholders, the mortgagee or trustee will make all payments
or deposits required under the mortgage or trust indenture or HUD
regulations and remit any excess to the owner.
(d) Foreclosure and other transfers. In the event of foreclosure,
assignment or sale approved by HUD in lieu of foreclosure, or other
assignment or sale approved by HUD:
(1) The Agreement, the Contract and the ACC, if applicable, will
continue in effect, and
(2) Housing assistance payments will continue in accordance with the
terms of the Contract.
(e) Financing of manufactured home parks. In the case of a newly
constructed manufactured home park, the principal amount of any mortgage
attributable to the rental spaces in the park may not exceed an amount
per space determined in accordance with 207.33(b) of this title.
(44 FR 59410, Oct. 15, 1979, as amended at 45 FR 62797, Sept. 22,
1980; 48 FR 12704, Mar. 28, 1983; 49 FR 17449, Apr. 24, 1984)
24 CFR 880.209 Relocation and land acquisition requirements.
(a) Application of the Uniform Act. The Uniform Relocation
Assistance and Real Property Acquisition Policies Act of 1970 (Uniform
Act) and HUD implementing regulations at 24 CFR part 42 (Uniform
Relocation Assistance and Real Property Acquisition) apply to the
acquisition of real property by a PHA or other State Agency (as defined
in 42.2(p) of this title) for a project assisted under this part and to
any displacement that results from such acquisition.
(b) Displacement not subject to the Uniform Act. With respect to any
residential tenants (not owner-occupants) who will be permanently or
temporarily relocated as a direct result of a project that is assisted
under this part, but who are not assisted under the Uniform Act, the
following policies will apply:
(1) Such tenants are eligible for the relocation assistance and
benefits described below if they are relocated following the submission
to HUD of the preliminary proposal for the project (or first proposal if
the proposal is submitted in accordance with 880.303(c), Special
Categories) except where (i) their tenancy is terminated on the grounds
set forth in 880.607(b)(1), or (b)(1)(ii) they take occupancy after
HUD's preliminary approval of the proposal with notice from the owner of
the pending proposal and potential displacement.
(2) Within a reasonable period of time prior to displacement, each
tenant to be permanently relocated will be provided a reasonable choice
of opportunities to move to a suitable replacement dwelling unit from
among available units so located as to promote choice outside areas of
low income and minority concentration.
(3) For purposes of this section, a suitable replacement dwelling is:
(i) Decent, safe and sanitary as defined in 42.2(e) of this title.
(ii) Available within the tenant's ability to pay (i.e., the monthly
rent and average estimated cost of utilities does not exceed 25 percent
of the combined monthly gross income of all adult members of the
tenant's household);
(iii) In an area not subject to unreasonable adverse environmental
conditions, either natural or man-made;
(iv) In a location that is not generally less desirable than the
location of the displaced tenant's dwelling with respect to public
utilities, commercial and public facilities, and the tenant's place of
employment (or to sources of employment, if the tenant is unemployed but
seeking work).
(4) Each tenant will be reimbursed by the owner for reasonable moving
and related expenses at the levels described in 42.301 of this title or
may receive, at the discretion of the owner, a fixed payment for moving
expenses in accordance with in 42.302 of this title.
(5) A tenant may be required to relocate for a temporary period only
if this is necessary to carry out the project and he/she is permitted to
occupy a dwelling in the completed project. If required, the temporary
relocation will not exceed 12 months in duration; a decent, safe, and
sanitary dwelling in an area not subject to unreasonably adverse
environmental conditions will be available to the tenant for the period
of the temporary relocation; and the tenant will be reimbursed actual,
reasonable out-of-pocket expenses, including moving costs to and from
the temporarily occupied dwelling and any increase in monthly housing
cost (rent and reasonable utility costs) incurred in connection with the
temporary relocation. If the new dwelling unit is not ready for
occupancy within the 12-month period, the tenant will be notified of the
earliest date by which it will be ready, and the tenant in that case
will have the right to agree to wait until the extended date or to
request that he/she be treated as permanently displaced.
(6) All tenants occupying property on which new construction units
will be developed will be provided with advance information in writing
and by personal explanation that is sufficient to enable them to
understand fully the reason for their displacement and the relocation
opportunities and assistance which is available to them.
(7) All tenants will be provided appropriate advisory services
necessary to minimize hardships in adjusting to required permanent or
temporary relocation.
(8) No lawful occupant will be required to move from his/her dwelling
or to move his/her business without at least 90 days advance written
notice of the earliest date by which he/she may be required to move.
(i) If the tenant is provided but refuses a reasonable choice of
opportunities to move to a suitable replacement dwelling, the owner will
not be obligated to make further efforts to provide replacement housing.
(ii) If replacement housing within the tenant's ability to pay cannot
be identified and government assistance that would satisfy this
requirement cannot be secured, the owner's obligation under this section
may be satisfied by providing the tenant with a lump sum payment equal
to 48 times the amount, if any, necessary to reduce the monthly housing
cost (rent and utilities) of a suitable replacement dwelling to 25
percent of the combined monthly gross income of all adult members of the
tenant's household.
(iii) A tenant who believes he/she has not received the proper
relocation payments or opportunities to relocate to a decent, safe and
sanitary dwelling to which the tenant is entitled under this section may
appeal to the HUD field office.
(iv) Owners are responsible for assuring that payments and services
required by this section are provided. Costs incurred by the owner in
providing these services and payments may be included in project
replacement cost, subject to 880.204(c)(6), except that payments to
tenants permanently relocated in accordance with paragraph (b)(8)(ii) of
this section may not be so included.
(c) Eligibility of Lower-income Single Persons. Lower-income single
persons, who are not elderly or handicapped but who are displaced as a
result of the project, may return to occupy assisted units in accordance
with 24 CFR part 812.
(44 FR 59410, Oct. 15, 1979, as amended at 48 FR 12704, Mar. 28,
1983; 49 FR 17449, Apr. 24, 1984; 51 FR 6913, Feb. 27, 1986)
24 CFR 880.210 Other Federal requirements.
(a) Equal Opportunity requirements. Participation in this program
requires compliance with Title VI of the Civil Rights Act of 1964, Title
VIII of the Civil Rights Act of 1968, Executive Orders 11063 and 11246,
and Section 3 of the Housing and Urban Development Act of 1968, and all
related rules, regulations and requirements.
(b) National Environmental Policy Act. Participation in this program
requires compliance with the National Environmental Policy Act and all
related rules, regulations and requirements.
(c) Clean Air Act and Federal Water Pollution Control Act.
Participation in this program requires compliance with the Clean Air Act
and the Federal Water Pollution Control Act and all related rules,
regulations and requirements.
(d) Davis-Bacon and related Acts. Participation in this program
requires that payment of not less than the wages prevailing in the
locality, as predetermined by the Secretary of Labor pursuant to the
Davis-Bacon Act (49 Stat. 1011), be paid to all laborers and mechanics
employed in the development of any project with nine or more assisted
units and compliance with all other related rules, regulations and
requirements.
(e) Rehabilitation Act. Participation in this program requires
compliance with the Rehabilitation Act of 1973 and Executive Order 11914
and all related rules, regulations and requirements.
(f) Other Federal statutes and regulations. Participation in this
program requires compliance with the National Historic Preservation Act
(Pub. L. 89-665), the Archeological and Historic Preservation Act of
1974 (Pub. L. 93-291), and E.O. 11593 on Protection and Enhancement of
the Cultural Environment, including the procedures prescribed by the
Advisory Council on Historic Preservation in 36 CFR Part 800.
(44 FR 59410, Oct. 15, 1979, as amended at 45 FR 18923, Mar. 24,
1980)
24 CFR 880.211 Audit.
Where a State or local government is the eligible owner of a project
or a contract administrator under 880.505 receiving financial
assistance under this part, the audit requirements in 24 CFR part 44
shall apply.
(50 FR 39091, Sept. 27, 1985; 51 FR 30480, Aug. 27, 1986)
24 CFR 880.211 Subpart C -- Proposal Submission To Start of Construction
24 CFR 880.301 Allocation of contract authority to field offices.
(a) Funding authorization for the Section 8 program is assigned to
HUD field offices annually in the form of contract authority, which is
the maximum amount authorized for annual commitments under Contracts.
Assignments are made pursuant to 24 CFR part 791, subpart D. Each field
office suballocates this authority to the areas within its jurisdiction,
also in accordance with part 791, subpart D.
(b) In the allocation process, the field office determines the amount
of contract authority and the approximate number of units of Section 8
new construction specifically designed for elderly families, for
non-elderly families and for large non-elderly families (5 or more
persons) which will be made available in each allocation area.
(c) For the contract authority made available in each allocation
area, the HUD field office will process proposals as provided for in
880.302 through 880.304.
24 CFR 880.302 Procedures for resumption of processing of proposals and
preapproved site requests.
(a) Review of pipeline. Prior to the publishing of a NOFA or the
consideration of requests for preapproved sites, the pipeline of
approvable proposals which are of high quality relative to the standards
and requirements of this part submitted in the same or the prior fiscal
year and preapproved site requests will be reviewed to determine whether
to resume processing for any or all of them. In making the decision as
to whether to resume processing, the following will be considered:
(1) Whether the proposal or preapproved site request is consistent
with the final or tentative allocation plan for the area in which the
project is proposed to be located;
(2) Whether the proposal or preapproved site request conforms to the
housing type and household type requirements of any applicable Housing
Assistance Plan;
(3) Whether the proposal or preapproved site request is consistent
with priorities for targeting of contract authority to localities which
have previously been underfunded relative to their needs and the funding
of the needs of other localities in that allocation area.
(b) Notice to owners or local governments. Owners of proposals or
local governments with preapproved site requests which are eligible in
accordance with paragraph (a) of this section to resume processing will
be sent a letter requesting them to advise HUD within a specified time,
generally 5 days, as to whether or not they wish processing to be
resumed on their proposals or requests and, if their decision is in the
affirmative, to submit to HUD the following within a specified time,
generally 10 days (for a total of 15 days):
(1) For proposals, updated proposed rents;
(2) For proposals, the replacement cost estimate required by
880.305;
(3) Up-to-date evidence of site control; and
(4) Any information on other factors which might affect the current
approvability of their proposals or requests.
Owners or local governments may submit any other information they
wish, but the field office is not required to consider this additional
information.
(c) Section 213 Clearance. Upon receipt of notification from an
owner that he/she wishes processing of a proposal to be resumed, the
unit of general local government will be notified under part 791 of the
resumption of processing and asked for comments (1) if the proposal is
more than 6 months old or (2) if there has been a substantive change in
the local Housing Assistance Plan.
(d) Resumption of processing. Upon receipt of the updated
information, the field office will resume processing of the proposal or
request in accordance with 880.306(c) or 880.303(a).
(e) Notice where processing not resumed. Owners of proposals and
local governments with preapproved site requests for which processing is
not resumed because of failure to meet the requirements of paragraphs
(a) and (b) of this section, or for which owners or local governments do
not request resumption of processing will be notified in writing that
their proposals or requests will not be processed further. One file
copy of each such notice will be retained by the field office.
(44 FR 59410, Oct. 15, 1979, as amended at 48 FR 29219, June 24,
1983)
24 CFR 880.303 Special procedures for certain categories of proposals.
(a) Preapproved sites. (1) Units of general local government may
submit written requests to the field office for preapproval of sites.
To the extent feasible, such requests should be submitted early in the
fiscal year. Requests for preapproval must indicate the anticipated
number of units, structure type, household type, bedroom distribution
and the price at which the site will be made available. Further, the
local government must indicate if it wishes to select the proposal as
allowed under paragraph (a)(5) of this section.
(2) If the field office determines that use of a site for which
preapproval has been requested may be appropriate, it will review the
request to determine compliance with site and neighborhood standards (
880.206) and environmental standards, and to determine the
acceptability, as to both reasonableness and feasibility, of the
proposed price at which the site will be made available. The request
will also be reviewed for consistency with the allocation plan for the
area, any applicable Housing Assistance Plan and targeting priorities
described in 880.302(a)(3).
(3) If the site meets all of these requirements, the field office
will advise the unit of general local government:
(i) That the site is approvable for Section 8 use;
(ii) Of the approximate number of units, by structure type, household
type and bedroom distribution that may be assisted;
(iii) Of the contract authority required;
(iv) Whether HUD has reserved such contract authority, will do so as
soon as sufficient contract authority becomes available or will retain
the request in the pipeline for consideration in accordance with
880.302; and
(v) How processing will proceed, including how selection of the
proposal will be accomplished.
(4) Reservations of contract authority for preapproved sites may be
made only after the amount of authority necessary for pipeline proposals
has been determined.
(5) For approvable sites in federally-assisted urban renewal areas
(including unsold land in closed-out urban renewal areas), selection of
the proposal may be under applicable urban renewal procedures, subject
to the field office approval. For sites acquired or to be acquired with
Community Development Block Grant funds or located in
non-federally-assisted urban renewal areas, the local government may
select the proposal in accordance with a competitive method approved by
the field office and consistent with State law.
(6) For approvable sites outside those areas set forth in paragraph
(a)(5) of this section, selection of the proposal will be accomplished
by the field office by publishing a NOFA requesting proposals for that
site pursuant to 880.304.
(b) Other categories. Where set-asides are made for projects to be
owned by PHAs, for projects to be located in New Communities or for
other purposes, proposals may be obtained by invitation or other
appropriate means, as determined by the field office, or the New
Communities Development Corporation where appropriate. Selection
procedures may be modified, as approved by the Assistant Secretary, to
meet the objectives of the set-asides. Prior to submission of
proposals, prospective owners will be advised of the modified
procedures.
(c) Proposal submissions for special categories of projects.
Preliminary proposals are not required for projects submitted pursuant
to paragraph (a) or (b) of this section, except in the case of proposals
under paragraph (a)(6) of this section. The first proposal submitted
for such projects may be a final proposal in accordance with 880.308.
(d) Special local government option. Local governments may be
authorized by the Assistant Secretary to select proposals on sites
located in their jurisdictions. Procedures for local government
selection of proposals under this paragraph will be published by Notice
in the Federal Register.
(44 FR 59410, Oct. 15, 1979, as amended at 49 FR 6714, Feb. 23, 1984)
24 CFR 880.304 Publication of NOFA and receipt of proposals.
(a) After determination of the amount of contract authority necessary
for pipeline proposals as provided in 880.302, and any commitments of
contract authority for preapproved sites or other categories as provided
in 880.303, the field office will publicize the availability of the
remaining contract authority, if any, in accordance with paragraph (b)
of this section.
(b) A summary notification of fund availability (NOFA) for all
allocation areas within the jurisdiction of the field office will be
published at least once a week for two consecutive weeks in a
newspaper(s) of general circulation in the allocation areas. The
summary NOFA will identify the estimated contract authority and
approximate number of units by housing and household type for each
allocation area. Specific information for each allocation area will be
contained in a detailed NOFA which will be provided upon request. The
detailed NOFA will identify the geographic area of each allocation area
for which contract authority is available and include the following
information for each area:
(1) The contract authority available for new construction and the
approximate number of units for elderly, non-elderly and large
non-elderly families that the contract authority is expected to support;
(2) The first and last dates for acceptance of preliminary proposals
for projects for elderly families and the first date for acceptance of
proposals for projects for non-elderly families;
(3) The fact that proposals for projects for non-elderly families
will be accepted at any time after the initial acceptance date so long
as contract authority remains available, and that all such proposals
received during one 30-day period will be processed and, if necessary,
ranked against each other;
(4) The fact that the NOFA will be cancelled for an allocation area
when all available contract authority has been or is expected to be used
or when a decision by HUD pursuant to 791.405 to reallocate any unused
contract authority has been made;
(5) The fact that developer's packets for each allocation area and
type of proposal will be available prior to the opening date for
submission of proposals and that information and assistance are
available from the field office.
(c) Copies of the detailed NOFA will be provided to minority and fair
housing organizations, media and the chief executive officer of each
jurisdiction with a Housing Assistance Plan in the allocation area.
(d) Field offices may issue Conditional NOFAs subject to the
sufficiency of a future allocation of contract authority.
Proposals received in response to a Conditional NOFA will be
processed in accordance with the provisions of 880.306, but
notifications of selection will not be sent until contract authority
becomes available and is reserved.
(e) Proposals will be accepted by the field office beginning on the
published opening date for submission and may be opened for review
immediately. The contents will remain confidential until sent by the
field office to the local government for review or, in the case of
projects for elderly families, until the deadline dated has passed,
whichever is earlier.
(44 FR 59410, Oct. 15, 1979, as amended at 48 FR 29219, June 24,
1983)
24 CFR 880.305 Contents of preliminary proposal; Disclosure.
Each preliminary proposal must contain:
(a) A description of the proposed housing, including sketches of the
proposed building, unit plans, listing of amenities, esitmated date of
completion and whether it will be completed in stages, and other
information requested in the developer's packet.
(b) Identification and description of the proposed site, site plan
and neighborhood, and evidence of site control as requested in the
developer's packet;
(c) Evidence that the proposed construction is permitted by current
zoning ordinances or regulations or evidence to indicate that needed
rezoning is likely and will not delay the project;
(d) The proposed contract rent per unit, including an indication of
which utilities, services and equipment are included in the rent and
which are not. For those utilities and services which are not included,
an estimate of the average monthly cost for each unit type for the first
year of occupancy.
(e) The estimated replacement cost per unit and the estimated total
replacement cost, including any cost not attributable to dwelling use.
(f) A statement describing how the proposal is consistent with any
applicable Housing Assistance Plan, and/or Areawide Housing Opportunity
Plan;
(g) Information concerning displacement of site occupants. If any
displacement will occur: the number of households affected, by size and
race, and the business concerns affected, by race, and whether they own
or rent; the number to be temporarily or permanently displaced; the
steps, if any, to be taken to minimize displacement; a demonstration
that relocation is feasible; and a statement as to how necessary
relocation payments will be funded (see 880.209 for relocation
requirements);
(h) A signed certification on the prescribed form of the owner's
intention to comply with Title VI of the Civil Rights Act of 1964, Title
VIII of the Civil Rights Act of 1968, E.O. 11063, E.O. 11246, and
section 3 of the Housing and Urban Development Act of 1968, and that the
owner will undertake marketing activities as required by 880.601(a).
(i) The identity of the owner, developer, builder, architect,
management agent (and other participants) and the names of officers and
principal members, shareholders, investors, and other parties having a
substantial interest; the previous participation of each in HUD
programs on the prescribed HUD form; and a disclosure of any possible
conflict of interest by any of these parties which would be a violation
of the Agreement, the Contract, or the ACC, if any; and information on
the qualifications and experience of the principal participants;
(j) The proposed financing method and proposed terms of financing.
For proposals not requesting mortgage insurance, written evidence of
review and interest by a lender which may include a state housing
finance agency or financing agency under part 811, or bond underwriter,
indicating that the financing is likely to be available for the proposed
project;
(k) The proposed term of the contract, and justification for the
term, in accordance with 880.502; and
(l) The identity of the contract administrator entity (PHA or HUD).
(m) To be eligible to become an owner of housing assisted under this
part, the owner (other than a PHA) must meet the requirements for the
disclosure and verification of Social Security and Employer
Identification Numbers, as provided by 24 CFR part 750.
(Approved by the Office of Management and Budget under control number
2502-0204)
(44 FR 59410, Oct. 15, 1979, as amended at 45 FR 18923, Mar. 24,
1980; 54 FR 39702, Sept. 27, 1989)
24 CFR 880.306 Preliminary evaluation and technical processing.
(a) Preliminary evaluation. (1) After receipt of a preliminary
proposal for a project for elderly families received prior to the
deadline date in the NOFA, the field office will make a preliminary
evaluation of the proposal in accordance with paragraph (a)(3) of this
section. Proposals received after the deadline date will be returned
unopened.
(2) After receipt of a preliminary proposal for a project for
nonelderly families, the field office will, so long as contract
authority remains available, make a preliminary evaluation of each such
proposal in accordance with paragraph (a)(3) of this section.
(3) In performing the preliminary evaluation, the field office will
determine whether it appears, without field review, that:
(i) The proposal contains all of the required documentation in the
proper form; and
(ii) The proposal is responsive to and in compliance with the
requirements of the NOFA, developer's packet, and program policies and
regulations, including Fair Market Rent, replacement cost, and amenities
limitations.
(4) If a proposal is found deficient in accordance with paragraph
(a)(3) of this section, it may be rejected. If a deficiency is minor,
or if there are not sufficient proposals to use the available contract
authority, the field office may request correction of the deficiency
within a specified time period.
(5) If the proposal is not deficient, or if necessary corrections are
made within the time limit established by the field office, the proposal
will be considered in accordance with paragraph (b) or (c) of this
section as appropriate.
(b) Selection for technical processing. (1) In the event the number
of proposals found eligible for technical processing exceeds the number
that the field office can process expeditiously, the field office may
limit the proposals placed into technical processing to those which
comprise a total number of units approximately equal to two to four
times the number of units which can be approved. In order to determine
which proposals to place into technical processing, the field office
will, in order to eliminate the excess, rank the proposals by household
type (elderly and non-elderly) considering the following factors and
such other factors as may have been recommended by the field office and
approved by the Assistant Secretary:
(i) The previous experience and qualifications of the owner,
developer, builder, architect, management agent, and other participants
in development, marketing and management (particularly of non-elderly
housing);
(ii) Responsiveness to the preferences and priorities contained in
any applicable Housing Assistance Plan;
(iii) The current availability of the site for development and the
availability of utilities and services;
(iv) The permissiveness of current zoning;
(v) The likelihood of financing and the relative speed with which a
firm financing commitment can be obtained; and
(vi) The relative need for and prior housing assistance to the
jurisdiction in which the housing would be located.
(2)(i) Preference points in selection of proposals for technical
processing will be given to small projects and partially assisted
projects (except partially assisted projects relying on financing
available through the Government National Mortgage Association under the
authority of section 305 of the National Housing Act).
(ii) After the ranking of proposals in accordance with the preference
points, if two or more projects are substantially equal in other
respects, preference shall be given to a project involving land provided
by a State or local government, if HUD determines that the land is
suitable for the proposed housing and that affording such a preference
will be cost effective.
(3) The owners of proposals not selected for technical processing
will be notified that their proposals will not be processed further and
will not be considered for selection under the provisions of 880.302.
(4) One copy of each proposal will be retained by the field office.
(c) Technical processing. (1) In accordance with the procedures in
24 CFR part 791, a description of each proposal placed in technical
processing will be sent to the unit of general local government for
review and comment.
(2) Technical processing in the field office will include a review of
the rents (see paragraph (c)(3) of this section), site, design,
experience of the owner and other participants, local government
comments, extent of displacement and feasibility of relocation,
feasibility of the project as a whole (including financing and
marketability) and compliance with all applicable standards and
requirements, including a HUD review for consistency with the Housing
Assistance Plan, or for determination of need in areas without a Housing
Assistance Plan, pursuant to 24 CFR part 791. Any deficiencies found
will be treated in the same manner as deficiencies found during
preliminary evaluation (see paragraph (a)(4) of this section).
(d) Proposals requiring mortgage insurance. Proposals requiring
mortgage insurance need not contain more information than is required
for a preliminary proposal not requiring mortgage insurance. Technical
processing of such proposals will include a preliminary determination of
eligibility under the applicable mortgage insurance program. If such
proposals are selected, subsequent processing will be in accordance with
880.308(b), and applicable mortgage insurance requirements. If the
proposal is ineligible for mortgage insurance, it may be rejected, or
the field office may request the owner to submit documentation showing
availability of an alternative method of financing.
(44 FR 59410, Oct. 15, 1979, as amended at 48 FR 12704, Mar. 28,
1983; 48 FR 29219, June 24, 1983; 49 FR 17449, Apr. 24, 1984)
24 CFR 880.307 Selection of proposals and use of remaining or
additional contract authority.
(a) All of the proposals found approvable in technical processing may
be selected if sufficient contract authority is available. In no case
will proposals be selected prior to completion of and without compliance
with the allocation plan.
(b) If the available contract authority is insufficient to select all
proposals found approvable in technical processing, all approvable
proposals will be ranked by household type (elderly and non-elderly).
If the NOFA indicated that a specific portion of the contract authority
may be utilized only for small projects, any proposals for such projects
shall be ranked separately and not in competition with other nonelderly
proposals. The ranking factors are: rents; site (including minority
concentration considerations); design; previous experience of the
owner and other participants in development, marketing and management
(particularly of non-elderly family housing); comments from the local
government and responsiveness to preferences and priorities of any
applicable Housing Assistance Plan and/or Areawide Housing Opportunities
Plan; extent of displacement and feasibility of relocation; and
feasibility of the project as a whole (including likelihood of financing
and marketability). Within the ranking for non-elderly family
proposals, preference points will be given to small projects and
partially-assisted projects (except partially-assisted projects relying
on permanent financing available through the Government National
Mortgage Association under the authority of Section 305 of the National
Housing Act). Any deviation in the ranking procedures as set forth in
this paragraph and the program handbook must be approved by the
Assistant Secretary and included in the developer's packet.
(c) Owners who submit proposals will be notified in writing as to
whether their proposals have been found not approvable, found approvable
but not selected, or selected. Selection notifications will include any
special conditions or requirements applicable to the proposal. Owners
who are notified of the selection of their proposals must notify the
field office of their acceptance of the notification within the time
period specified in the notification and must submit a final proposal by
the deadline stated in the notification unless an extension of the
deadline is approved by the field office. Owners of proposals found not
approvable will be notified of the reason for the finding. One file
copy of each proposal will be retained by the field office. Proposals
found approvable and determined to be of high quality but not selected
will be retained by the field office for reconsideration when additional
contract authority becomes available in the same or subsequent fiscal
year (see 880.302).
(d) Units of general local government notified under 880.306(c) will
be notified of the field office's decision regarding the proposals
within their jurisdiction.
(e) When contract authority remains available after selection of
proposals for housing for elderly families, or after a decision is made
to reallocate unused contract authority for housing for non-elderly
families, or additional contract authority becomes available due to
cancellation or recapture of contract authority for a selected proposal,
or due to the assignment of additional contract authority within the
same fiscal year, the field office will determine the allocation areas
and types of housing for which the contract authority will be used in
accordance with 24 CFR part 791 and proceed in accordance with 880.302
through 880.304.
(44 FR 59410, Oct. 15, 1979, as amended at 45 FR 18924, Mar. 24,
1980; 48 FR 29219, June 24, 1983; 49 FR 6714, Feb. 23, 1984)
24 CFR 880.308 Contents of final proposal.
(a) Proposals for Uninsured Projects. Final proposals for all
projects except those requesting mortgage insurance will contain:
(1) Preliminary architectural drawings, including site plans,
landscape plans, unit plans, general floor plans, elevations at the
prescribed scale, outline specifications on the prescribed form and a
listing of amenities.
(2) A statement that the documentation submitted with the preliminary
proposal as required by 880.305 (b) through (g) and (i) through (l) has
not changed or a statement of the changes. In the case of special
categories of projects submitted in accordance with 880.303(c), the
original documentation required by 880.305 (b) through (l) must be
submitted.
(3) Description of the terms and conditions of construction and
permanent financing, including copies of the financing documents and the
commitments for such financing from a lender or bond underwriter, or
satisfactory evidence that commitments will be forthcoming before
execution of the Agreement.
(4) For proposals for projects of five units or more, an Affirmative
Fair Housing Marketing Plan.
(5) A statement of the marketing activities the owner intends to take
in accordance with the requirements of 880.601(a)(3). Such efforts
might include: Participation in regional or sub-regional application
pools and clearinghouses; establishment of a referral system with PHAs,
other public agencies and Section 8 owners/managers in the surrounding
area; and contact with and provision of information about the project
to employers and their employees, labor unions, State or areawide
employment service centers and interested community groups.
(6) Evidence of management capability, a proposed management plan and
certification in the prescribed form, a copy of any proposed contracts
for management services, and the proposed form of lease (see 880.606).
(7) An indication of the estimated time for completion of the project
after the Agreement is signed and, if the project is to be completed in
stages, identification of the units and the scheduled completion of each
stage.
(8) Cost estimates in the HUD prescribed form of the replacement
cost, operating expenses, income, and debt service, sufficient to enable
the field office to determine the cost justified rent, where required
under 880.204(b)(1)(ii). The replacement cost may include the cost to
the owner of relocation (except for payments to tenants permanently
relocated pursuant to 880.209(b)(8)(ii)). The cost estimate must
indicate and reflect any anticipated benefits from land write-down, tax
abatement, favorable financing terms and similar savings.
(b) Proposals for Insured Projects. (1) For projects requiring
mortgage insurance, except special categories of proposals which are
discussed in paragraph (b)(3) of this section, the complete final
proposal will consist of the application for firm commitment, plus
submissions in accordance with paragraphs (a) (2), (5), (6) and (8) of
this section.
(2) Although it is preferable for projects requiring mortgage
insurance to proceed directly from preliminary proposal to the
application for firm commitment/final proposal stage, an owner may elect
to submit an application for SAMA or conditional commitment first. In
these cases, no additional documentation other than that normally
submitted for the mortgage insurance processing stage is required. SAMA
letters or conditional commitments issued for mortgage-insured projects
which are infeasible without Section 8 assistance will be conditioned
upon the subsequent review and approval of the application for firm
commitment/final proposal.
(3) In the case of special categories of proposals submitted in
accordance with 880.303 which are requesting mortgage insurance, the
first proposal may be an application for conditional or firm commitment
plus the proposed form of lease, applicable information on staging, if
any, and the documentation required by 880.305 (f), (g), (h), (i) (with
respect to possible conflicts of interest), (k) and (l).
(44 FR 59410, Oct. 15, 1979, as amended at 45 FR 18924, Mar. 24,
1980; 48 FR 12704, Mar. 28, 1983; 49 FR 17449, Apr. 24, 1984)
24 CFR 880.309 Review of final proposals.
(a) All final proposals will be reviewed for compliance with program
policies and standards. Material deviations from the preliminary
proposal will be reviewed and may cause rejection of the proposal.
(1) Preliminary architectural drawings will be reviewed for
compliance with amenity standards. In addition, HUD reserves the right
to review for conformance with the HUD Minimum Property Standards,
adequacy of design for tenant security and efficiency in construction
and design; however, HUD has no obligation to do so and any such review
or non-review will not constitute approval as to these standards.
(2) The field office will review the projected replacement cost to
assure compliance with the limitations of 880.204(c) in effect at the
time. The field office will also review the proposed rents to assure
that the rents are within the limitations of 880.204(b) and are cost
justified, where required under 880.204(b)(1)(ii) concerning reasonable
rents. Cost justification at this stage will consist of review by the
field office of the cost and expense estimates to determine whether the
estimates justify a need for rents above comparable rents based on debt
service calculation.
(3) Where the final proposal requests rents higher than were approved
with the preliminary proposal, such rents may be approved only after the
review required in paragraph (a)(2) of this section. In addition, the
field office may approve the request for an increase only if it
determines, based on documentation by the owner, that the need for
increased rents is due to:
(i) Factors beyond the owner's control which could not reasonably
have been foreseen;
(ii) Design changes approved by the field office which are necessary
because of additional requirements imposed by governmental agencies or
HUD; or
(iii) HUD-approved changes in the method or terms and conditions of
financing.
(b) Each owner will be notified as to whether the final proposal has
been approved, rejected, or could be approved with the submission of
additional information or after correction of specified deficiencies.
Notifications of approval will indicate a deadline for acceptance of the
notification and, for projects not requiring mortgage insurance, a
deadline for submission of working drawings and architect's
certifications.
(44 FR 59410, Oct. 15, 1979, as amended at 48 FR 12704, Mar. 28,
1983; 49 FR 17449, Apr. 24, 1984)
24 CFR 880.310 Submission and review of working drawings, architect's
certification and requested changes.
(a) For projects which do not involve mortgage insurance, the owner
must submit working drawings and specifications to the field office for
review after approval of the final proposal. The owner must also submit
an architect's certification in the prescribed form that the drawings
and specifications and proposed construction comply with the HUD Minimum
Property Standards, local codes and ordinances, and zoning requirements.
The working drawings and specifications will be reviewed for compliance
with amenity standards. Any project may, at HUD's option, be reviewed
for conformance with the HUD Minimum Property Standards, adequacy of
design for tenant security and efficiency in construction and design;
however, HUD has no obligation to do so and any such review or
non-review will not constitute approval as to these standards.
(b) Any requests for rent increases or any material deviations from
preliminary or final proposal which are submitted with the working
drawings will be reviewed in the same manner as required in 880.309(a).
(c) For projects involving mortgage insurance, working drawings are
reviewed as part of the review of the application for firm
commitment/final proposal.
24 CFR 880.311 Execution of agreement (and ACC, if applicable).
(a) After review of the working drawings for compliance with amenity
standards and acceptance of the architect's certification for projects
not involving mortgage insurance, or at the time of initial endorsement
in the case of projects involving mortgage insurance:
(1) In the case of private-owner/HUD and PHA-owner/HUD projects, HUD
and the owner will execute the Agreement in the form prescribed by HUD;
or
(2) In the case of private-owner/PHA projects, HUD and the PHA will
execute the ACC in the form prescribed by HUD, and thereafter the PHA
and the owner will execute the Agreement in the form prescribed by HUD,
and HUD will approve it.
(b) No Agreement will be executed unless HUD has approved the
financing for the project, including a commitment from a lender for
construction and permanent financing at rates, terms and conditions
acceptable to HUD, and the final proposal is in all other respects
unconditionally approved.
(c) In the case of a non-elderly family project located in a Standard
Metropolitan Statistical Area (SMSA), the field office will promptly
notify PHAs and Community Development Agencies in the SMSA as well as
any metropolitan-wide clearinghouse, or fair housing organizations where
there is no metropolitan-wide clearinghouse, of the execution of the
Agreement; the size and bedroom distribution of the project; and the
expected time of initial marketing and occupancy. The notification will
indicate that agencies should inform the owner if they wish to be
contacted by the owner for referrals.
24 CFR 880.311 Subpart D -- Construction Period and Cost Certification
24 CFR 880.401 Timely performance of work.
(a) After execution of the Agreement, the owner must proceed promptly
with construction as provided in the Agreement and complete the project
within the time stated in the Agreement. If the owner fails to start
promptly, or diligently continue or complete construction, the contract
administrator will have the right to rescind the Agreement or take other
appropriate action.
(b) Extensions of the time may be granted for the reasons stated in
the Agreement. However, contract rents will be increased only for the
reasons stated in 880.204(b)(2).
(44 FR 59410, Oct. 15, 1979, as amended at 48 FR 12704, Mar. 28,
1983; 49 FR 17449, Apr. 24, 1984)
24 CFR 880.402 Inspections during construction.
(a) All project records will be inspected by HUD periodically to
determine compliance with Davis-Bacon Act requirements.
(b) Projects which involve HUD mortgage insurance, or another type of
financing which requires HUD construction inspection, will be subject to
the applicable inspection requirements.
(c) A review to determine contractor compliance with equal
opportunity requirements may be conducted at any time during the
construction period.
880.403 (Reserved)
24 CFR 880.404 Project completion.
(a) Notification and evidence of completion. The owner must notify
HUD and the PHA, where the PHA is the contract administrator, when work
is completed and provide HUD with:
(1) A set of as-built drawings;
(2) A certificate of occupancy and any other official approvals
necessary for occupancy;
(3) A certification in the prescribed form that the project has been
completed and is ready for occupancy in accordance with the requirements
of the Agreement; and
(4) For projects where a HUD construction inspection is not required
during construction, a certification from the inspecting architect in
the prescribed form which states that the project has been constructed
in accordance with the certified working drawings and specifications,
HUD Minimum Property Standards, local codes and ordinances, and zoning
requirements.
(b) Review and inspection. Within 10 working days of the receipt of
the notification and evidence of completion, HUD will review the
evidence of completion for adequacy and will inspect the project to
determine whether it appears that the project has been completed in
accordance with the Agreement.
(c) Acceptance of the Project. (1) If HUD determines from review and
inspection that the project (or a stage of the project) has been
completed in accordance with the Agreement, the project (or stage) will
be accepted.
(2) If there are any items of delayed completion which are minor
items or which are incomplete because of weather conditions, and in any
case which do not preclude or affect occupancy, and all other
requirements of the Agreement have been met, the project (or stage) will
be accepted. An escrow fund determined by HUD to be sufficient to
assure completion for items of delayed completion will be required, as
well as a written agreement between the contract administrator and the
owner, to be included as an exhibit to the Contract, specifying the
schedule for completion. If the items are not completed within the
agreed time period, the contract administrator may terminate the
Contract or exercise other rights under the Contract.
(3) If other deficiencies exist, HUD will determine whether and to
what extent the deficiencies are correctable, and whether the contract
rents should be reduced. The owner will be notified of HUD's decision.
If the parties agree, HUD, the owner and the PHA, where applicable, will
enter into an agreement for the correction of the deficiencies. If the
deficiencies are corrected within the period of time allowed, HUD will
accept the project.
(4) Otherwise, the project will not be accepted, and the owner and
the PHA, where applicable, will be notified with a statement of the
reasons for nonacceptance. (However, see 880.501(a) for action where
evidence of completion is acceptable only with respect to physical
completion of the project.)
(d) Pending Davis-Bacon Act claims. If there are pending claims
under the provisions in the Agreement relating to the payment of
prevailing wage rates, the owner will be required to place a sufficient
amount, as required by HUD, in escrow as approved by HUD to assure such
payments. The amount withheld may be disbursed with HUD approval for
and on account of the owner or any subcontractor to the employees to
whom it is due.
24 CFR 880.405 Cost certification and adjustment of contract rents.
(a) Submission by owner. As soon as possible after acceptance of the
project by HUD, the owner will certify the actual costs estimated under
880.308(a)(8), and submit a cost certification including the certificate
of an Independent Public Accountant to HUD in the manner and form
prescribed by HUD, based on the following guidelines:
(1) Projects which involve HUD mortgage insurance will be subject to
the cost certification requirements of the applicable insurance program;
(2) For projects not insured by HUD, a simplified form of cost
certification will be completed and submitted;
(3) There will be no cost certification submission required for
projects with rents that are equal to or less than comparable rents or
for partially assisted projects or small projects except as required by
880.204(b)(1)(ii); and
(4) The provisions of paragraphs (a) (2) and (3) of this section do
not preclude the imposition of different cost certification requirements
appropriate as part of project financing requirements (such as
tax-exempt financing under 24 CFR part 811).
(b) HUD review. Cost certifications required by this regulation will
be subject to review by HUD. As part of this review, the owner and/or
contractor may be required to submit additional documentation.
(c) Reduction of Contract Rents. If the owner's certified costs
provided in accordance with paragraph (a) of this section, as approved
by HUD, are less than the cost estimate provided for in 880.308(a)(8),
the contract rents will be reduced accordingly.
(d) Reduction of Maximum Annual Commitment. If the contract rents
are reduced under paragraph (c) of this section, the maximum annual
Contract commitment (and the maximum ACC commitment, in the case of
private-owner/PHA projects) will be reduced. If contract rents are
reduced based on cost certification after HAP Contract execution, any
overpayment between the effective date of the Contract and the cost
certification cut-off date shall be applied in one of the following
ways, as determined by HUD:
(1) To advance amortization;
(2) To offset the cost of approved capital improvements; or
(3) To be deposited in the reserve fund for replacements.
Any overpayment after the cost certification cut-off date will be
recovered from the owner by HUD. As used in this paragraph, the cost
certification cut-off date is the date that the owner selects to run its
cost for interest, taxes, property insurance, and mortgage insurance
premium, and for which it computes its income and expense statement.
This date may be no earlier than the date HUD accepts the project as
physically complete, and no later than 60 days thereafter.
(44 FR 59410, Oct. 15, 1979, as amended at 48 FR 12704, Mar. 28,
1983; 49 FR 17449, Apr. 24, 1984; 50 FR 6342, Feb. 15, 1985)