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PART 701- PROGRAMS AND
PROCEDURE Sec. 701.1 Programs. 701.2 Procedure.
AUTHORITY: The provisions of this part 701 issued under Reorganization Plan No. 3 of 1947, 61 Stat. 954, 5 U.S.C. 133y note.
SOURCE: The provisions of this part 701 appear at 24 F.R. 10206, Dec. 17, 1959, unless otherwise noted. $ 701.1 Programs.
(a) The Community Facilities Administration, headed by the Community Facilities Commissioner, was established as a constituent unit of the Housing and Home Finance Agency by the Housing and Home Finance Administrator's Organizational Order No. 1 of December 23, 1954 (19 F.R. 9320, December 29, 1954). There are administered through the Community Facilities Administration the following active operating programs: Loans to public or private nonprofit educational institutions of higher learning, including hospitals operating a school of nursing or approved for internships, for the construction of housing and other educational facilities for students and faculties, under title IV of the Housing Act of 1950, as amended (12 U.S.C. 1749); public facility loans to State and local public agencies to finance specific public projects, under title II of the Housing Amendments of 1955 (42 U.S.C. 1491); advances to public agencies to aid in financing the planning of public works, under section 702 of the Housing Act of 1954, as amended by section 112 of the Housing Amendments of 1955 (40 U.S.C. 462); and, under agreement with the Commissioner of Education, supervision of construction of school facilities for which Federal aid is provided through the U.S. Office of Education under Public Law 815, 81st Cong., as amended (20 U.S.C. 631).
under title III of Defense Housing and Community Facilities and Services Act of 1951, as amended (42 U.S.C. 1592); prefabricated housing loans under Reorganization Plan No. 23 of 1950 (5 U.S.C. 1332–15 note) and section 4 of Reconstruction Finance Corporation Act, as amended (15 U.S.C. 604), and sections 102 and 102a of Housing Act of 1948, as amended (12 U.S.C. 1701g, 1701g-1); first and second advance planning under Reorganization Plan No. 17 of 1950 (5 U.S.C. 1332–15 note) and Title V of War Mobilization and Reconversion Act of 1944 (50 U.S.C. App. 1671 note) and Public Law 352, 81st Cong. (40 U.S.C. 451); war public works under Reorganization Plan No. 17 of 1950 (5 U.S.C. 133715 note) and title II of Lanham Act, as amended (42 U.S.C. 1531); Alaska housing loans under Alaska Housing Act, as amended (48 U.S.C. 484); and public agency loans (RFC) under Reorganization Plan No. 1 of 1957 (5 U.S.C. 1332–15 note).
& 701.2 Procedure.
The general course and method by which functions administered through the Community Facilities Administration on behalf of the Housing and Home Finance Administrator are channeled and determined are as follows: The prescribed forms for application for assistance under the active operating programs listed above are obtained from and filed with the Regional Office of the Housing and Home Finance Agency serying the area in which the applicant is located. Upon approval of an application by either the Regional Administrator or Community Facilities Commissioner, as appropriate, an agreement between the Government and the applicant is executed. Further information concerning operations may be obtained from the appropriate Regional Office of the Housing and Home Finance Agency or from the Community Facilities Commissioner, Office of the Administrator, Housing and Home Finance Agency, 1626 K Street NW., Washington 25, D.C.
(b) The Community Facilities Administration is also responsible for management and liquidation of the following programs: Loans and grants for construction of defense community facilities
PART 702-ADVANCES FOR PUBLIC section 603 of the War Mobilization and WORKS PLANNING
Reconversion Act of 1944, 58 Stat. 792.
(b) Administrator. The Housing and Subpart A—Advances for Public Works Planning Home Finance Administrator, Housing (First Program)
and Home Finance Agency. Sec.
(c) Administration. The Community 702.1 Definitions. 702.2 Purpose of the act.
Facilities Administration, an organiza702.3 Advances.
tion unit within the Office of the Admin702.4 Apportionment of funds.
istrator. Housing and Home Finance 702.5 Submission of applications.
Agency, which is authorized to admin702.6 Types of public works.
ister the act. 702.7 Conformity to over-all plan.
(d) Commissioner. The Community 702.8 Arrangements for construction.
Facilities Commissioner, Community Fa702.9 Agreements. 702.10 Plan preparation.
cilities Administration, Office of the Ad702.11 Payment to applicants.
ministrator, Housing and Home Finance 702.12 Repayment of advances.
Agency. 702.13 Records and documents.
(e) State. Any one of the several 702.15 Operating procedures and instruc- States of the United States, the District tions.
of Columbia, Alaska, Hawaii, or Puerto 702.16 Reports to the Administrator.
Rico. 702.17 Interest of member of or delegate to
(f) Public agencies. The States and Congress.
their agencies and political subdivisions Subpart B Advances for Public Works Planning established by law and which have basic
(First, Second, and Third Programs): Determi- authority to construct public works. nations With Respect to Liability for Repayment (g) Applicant. Any public agency of Advances
which makes application for Federal 702.30 Purpose.
Assistance under the act and this 702.31 Definitions.
subpart. 702.32 Repayment of advance.
(h) Application. The document or 702.33 Advance repayable in full.
documents, including amendments and 702.34 Proportionate repayment of advance. 702.35 Advance not presently repayable.
communications, filed with the Admin702.36 Termination of liability.
istration by the applicant for an ad702.37 Termination of agreement.
vance of funds for plan preparation. 702.38 Termination of liability as result of (i) Plan preparation. Architectural Accelerated Public Works grant. engineering, and economic investiga
tions and studies, surveys, designs, plans, Subpart A-Advances for Public
working drawings, specifications, estiWorks Planning (First Program)
mates of costs, procedures and other AUTHORITY: The provisions of this Sub- planning activities in advance of the conpart A issued under sec. 501, 58 Stat. 791; 50 struction of specific public works. U.S.C. App. 1671, Reorg. Plan No. 17 of 1950, (j) Advances. The Federal funds ad15 F.R. 3177; 3 CFR, 1950 Supp.
vanced under the authority of the act SOURCE: The provisions of this Subpart A and this subpart to any public agency to appear 11 F.R. 609, Jan. 15, 1946. Redesig- aid in financing the cost of plan nated at 13 F.R. 7356, Dec. 2, 1948 as amended
preparation. at 15 F.R. 1346, Mar. 14, 1950; 16 F.R. 5022,
(k) Agreement. The document exeMay 29, 1951; 30 F.R. 5511, Apr. 17, 1965,
cuted by the applicant and the Adminunless otherwise noted.
istration covering the terms and condi$ 702.1 Definitions.
tions of an advance and the repayment For the purpose of this subpart, the
thereof. following terms shall be construed, re
(11 F.R. 609, Jan. 15, 1946, as amended at spectively, to mean:
20 F.R. 9343, Dec. 14, 1955; 30 F.R. 5511, Apr. (a) Act. Title V of the act of Congress
17, 1965) of October 3, 1944, entitled the "War Mobilization and Reconversion Act of
$ 702.2 Purpose of the act. 1944" (58 Stat. 791; 50 U.S.C. App., The act authorizes the Housing and 1671) which provides for assistance to Home Finance Administrator to make States and other non-Federal public loans or advances to public agencies in agencies in the plan preparation of their order to encourage and to assist them in proposed public works. The authority completing the plan preparation of useto make new loans or advances expired ful public works, thereby developing a reon June 30, 1947, under the provisions of serve of non-Federal public works which
can be placed under construction with a minimum of delay as circumstances warrant.
$ 702.3 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 $ 702.12. 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. (11 F.R. 609, Jan. 15, 1946, as amended at 30 F.R. 5511, Apr. 17, 1965)
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. $ 702.5 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 § 702.6 Types of public works.
(a) Applications for advances for the plan preparation of the following types of public works of States and other nonFederal 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,
§ 702.4 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
water distribution and irrigation sys- legally authorized over-all planning tems; and sanitary facilities such as in- agency exists, evidence of the approval cinerator plants, malarial control facil- of the proposed public work by the auities, and other similar work.
thority having jurisdiction thereof shall (5) Schools and other educational be required. facilities, which shall consist of public
$ 702.8 Arrangements for construction. school facilities such as school buildings, administration buildings, auditoriums,
Each application shall contain evigymnasiums, and dormitories; public
dence that the applicant has basic legal libraries; and other educational facil
authority to finance and construct the ities.
public works, and that it plans and rea(6) Hospitals and health facilities,
sonably expects to initiate the construcwhich shall consist of public hospitals,
tion of the proposed public works within nurses' homes, clinics, health centers and
four years after the receipt of the adlaboratories, sanitariums and other vance and to prosecute the public works health facilities.
to completion. (7) Other public buildings, which shall consist of city halls, courthouses, insti- $ 702.9 Agreements. tutional buildings, administrative build
(a) An agreement between the apings, police and fire stations, armories,
plicant and the Service shall be executed garages, storage buildings, community
for each advance on a form furnished buildings, and other public buildings not
by the Service. No payment on any adincluded under subparagraphs (3), (5),
vance shall be made by the United States (6), (8) and (9) of this paragraph.
unless and until such agreement has been (8) Parks and other recreational fa
executed. clities, which shall consist of public
(b) Subsequent to execution of the adparks, playgrounds, fairgrounds, and
vance agreement, no change shall be other recreational facilities, not in
made which will increase the amount of cluded under subparagraph (5) of this
the advance of the Federal Government paragraph, including such items as rec
or alter its terms or conditions except reation centers, gymnasiums, athletic
upon agreement with the Service. fields, swimming pools, tennis courts, and other such recreational facilities. $ 702.10 Plan preparation.
(9) Miscellaneous public facilities, (a) The applicant shall be responsible which shall consist of other types of pub- for the character, adequacy, and method lic facilities such as transportation fa- of plan preparation, in accordance with cilities, port facilities, electric power acceptable professional practices, and plants, and distribution systems, public upon the receipt of the initial payment docks, wharves and piers, non-Federal shall take prompt steps to initiate and river and harbor improvements, and prosecute the plan preparation to other miscellaneous public facilities. completion.
(b) The following types of public works are not eligible for assistance un- (b) The applicant agrees that it will der the provisions of the act:
use the funds advanced only for the plan (1) Public housing projects of Federal, preparation for the public work for which State or local housing agencies or au
the advance is made and that such plan thorities.
preparation will be adequate and suitable (2) Federal projects of Federal depart- for the purpose intended to be served by
the advance. ments, agencies, and instrumentalities.
(c) If the plan preparation is per(3) Federal-aid and State highway
formed on a contractual basis, State or projects of the Federal Public Roads
local regulations affecting employment Administration and the State Highway
within the professions involved shall be Departments.
observed. § 702.7 Conformity to over-all plan.
(d) If the applicant uses its own emEach application for an advance for ployees for the plan preparation, only
those costs incurred by the applicant for plan preparation shall contain evidence that the public work to be planned con- the plan preparation which would not
have been incurred except for such plan forms to an over-all State, local or re
preparation shall be paid with the funds gional plan approved by competent State,
advanced. local or regional authority. Where no