Sec.

PART 540-OPEN-SPACE LAND

The purpose of these regulations is to implement title IV of the Housing and Urban Development Act of 1970, Pub. L. 91-609, 84 Stat. 1770, 1781. The objectives of the program as set forth in the law include: To help curb urban sprawl and prevent the spread of urban blight and deterioration, to encourage more economic and desirable urban development, to assist in preserving areas and properties of historic or architectural value, and to help provide necessary recreational, conservation, and scenic areas by assisting State and local public bodies in taking prompt action to: (a) Provide, preserve, and develop open space land in a manner consistent with the planned long-range development of the Nation's urban areas, (b) acquire, improve, and restore areas, sites, and structures of historic or architectural value, and (c) develop and improve open space and other public urban land in accordance with programs to encourage and coordinate local public and private efforts toward this end.

§ 540.2 Definitions.

(a) "Changes in uses" means utilizing the open space land for purposes not contemplated in the application for a Grant Assistance Contract.

(b) "Conversions" means changes in land use from open space uses to non open space uses.

(c) "Donation" means cash, land, material, or services provided to, or by, an applicant for incorporation in the project at no cost to the applicant.

(d) "Local public body" means any public body (including a political subdivision) created by or under the laws of a State or two or more States, or a combination of such bodies, and includes Indian tribes, bands, groups, and nations (including Alaska Indians, Aleuts, and Eskimos) of the United States.

(e) "Open Space Land" means any land located in an urban area which has value for: (1) Park and recreational purposes, (2) conservation of land and other natural resources, or (3) historic, architectural, or scenic purposes.

(f) "Open space uses" means any use of open space land for: (1) Park and recreational purposes, (2) conservation of land and other natural resources, or (3) historic, architectural, or scenic purposes.

(g) "Secretary" means the Secretary of Housing and Urban Development or an officer authorized to perform the functions of the Secretary.

(h) "State" means any of the several States, the District of Columbia, the Commonwealth of Puerto Rico, the territories and possessions of the United States.

(i) "Urban area" means any area which is urban in character, including those surrounding areas which, in the judgment of the Secretary, form an economic and socially related region, taking into consideration such factors as present and future population trends and patterns of urban growth, location of transportation facilities and systems, and distribution of industrial, commercial, residential, governmental, institutional, and other activities.

§ 540.3 Grants for open space land and historic preservation.

(a) Grants of not more than 50 percent of the acquisition and/or development cost of open space land and/or historic preservation activities may be made to States and local public bodies.

(b) Grants of not more than 75 percent of the acquisition cost of undeveloped or predominantly undeveloped land which has special significance in helping to shape economic and desirable patterns of urban growth if it is withheld from commercial, industrial, and residential development, may be made to States and local public bodies. Subsequent disposal of interest(s) acquired under this section are subject to approval by the Secretary on such terms and conditions as he determines equitable and appropriate, with respect to the control of future use and the sharing or application of the proceeds or value realized.

§ 540.4 Eligible projects.

(a) Grant assistance is available to: (1) Acquire title to or other interest in open space land in urban areas;

(2) Develop open space or other land in urban areas for open space uses;

(3) Assist in the acquisition and/or preservation of structures of historic or architectural significance.

(b) Grant assistance will not be provided to:

(1) Defray ordinary State or local government expenses;

(2) Finance the acquisition by a public body of land outside the urban area for which it exercises (or participates in the exercise of) responsibilities consistent with the purpose of the Act;

(3) Acquire and clear developed land in built-up urban areas unless adequate open space land cannot be effectively provided through the use of existing undeveloped land;

(4) Provide assistance for historic and architectural preservation purposes except for districts, sites, buildings, structures, and objects which the Secretary of the Interior determines meet the criteria used in establishing the National Register of Historic Places.

§ 540.5 Requirements and conditions for

assistance.

(a) An eligible project must be needed for carrying out a unified or officially coordinated program, meeting criteria established by the Secretary, for the provision and development of open space land which is part, or is consistent with, the comprehensively planned development of the urban area except for historic preservation projects, and

(b) Not more than 50 percent of the non-Federal share of such eligible project cost may be made up by donations of land or materials.

(c) When fee title to land is acquired with assistance under section 702 of the Act, the land must remain under public control (except for changes in use and conversions which are permitted under conditions specified in 540.13), and

(d) When fee title is not acquired there must be a reasonable relationship between the nature and term of the interest acquired and the nature and/or useful life of the development or facility.

(e) All facilities developed with assistance under section 702 of the Act must remain under public control for the useful life of the facility so developed.

(f) No grant assistance is available for major construction, such as outdoor amphitheaters, dock facilities, golf courses, or major buildings. The grant amount for other type development costs may not exceed $250,000 or such other limitations as the Secretary may impose from time to time. In any event, only the cost of otherwise eligible development which mences after HUD approval of a project application will be an eligible project cost. The foregoing limitations do not apply to development projects involving historic preservation activities or swimming pools.

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(g) The Secretary is authorized to collect a fixed fee to defray the Government's expense in administering the program. Such fees will be charged grant recipients except for projects involving total costs of $25,000 or less, for which no fee shall be charged.

§ 540.6 Acquisition of lesser interest.

Notwithstanding § 540.5 (c) and (e), less than full title acquisition is permitted for land acquired under the program. Such lesser interests include, but are not limited to, easements, rights-of-way, and leaseholds. The interest so acquired must assure public control of the land for a period of time appropriate to the particular open space use.

8540.7 Valuation of donated land.

The fair market value of donated land must be established by two independent appraisals as of the date of dedication.

§ 540.8 Valuation of donated materials.

The value of donated materials shall be their wholesome market price at the time that they are incorporated into the project.

§ 540.9 Labor standards.

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All laborers and mechanics ployed by contractors or subcontractors on projects assisted by a grant made pursuant to section 702 of 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), and shall receive overtime compensation in accordance with and subject to the provisions of the Contract Work Hours Standards Act (40 U.S.C. 327332), and the contractors and subcontractors shall comply with all regulations issued pursuant to these Acts. The Secretary of Labor has, with respect to the labor standards specified in this section, the authority and functions set forth in Reorganization Plan No. 14 of 1950 (15 FR 3176, 5 U.S.C. 133z-15) and section 2 of the Act of June 13, 1934, as amended (40 U.S.C. 276c). No such project shall be approved without first obtaining adequate assurance that these labor standards will be maintained upon the construction work.

§ 540.10 Project selection.

Applications will be evaluated in accordance with the criteria and proce

dures set forth in Part 541-Open Space Land Program Project Selection System of this chapter (37 FR 7388).

§ 540.11 Establishment of acquisition date. Property will be considered acquired as of the date a binding purchase agreement is executed, title is transferred, or a condemnation proceeding is initiated which cannot be discontinued without incurring substantial liability or penalty, whichever is earlier. 8540.12 Establishment of development date.

Development will be considered commenced as of the date the applicant becomes unconditionally bound by a contract or issues a work order covering the activities, or actually begins the activities, whichever is earlier.

§ 540.13 Changes in uses and conversions. Projects receiving assistance are to be utilized as specified in the application and HUD grant contract. Under some conditions, the intended use may be altered if the change is in the interest of the applicant and the Federal Government. Any change in use of or conversion to other uses, and the disposition of any proceeds resulting therefrom, however, must have prior approval of HUD, and be in accord with the HUD grant contract.

§ 540.14 Information, application forms, and applications.

Information and application forms may be obtained from, and applications submitted to, the Regional or Area Office of the Department of Housing and Urban Development which serves the area in which the applicant is located.

§ 540.15 Waivers.

Any requirement of this subpart may be waived by the Secretary of Housing and Urban Development or his delegate so long as such waiver would not violate any requirement of Federal law.

public agencies may be obtained through such offices.

(b) The Urban Renewal Handbook, which sets out policies and requirements for local public agencies, may be purchased from the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402 and is available for use in the HUD Information Center, 451 Seventh Street SW., Washington, D.C. 20410, and in the information centers of the various HUD Regional Offices.

(c) Also available in each of the information centers are: (1) Community Renewal Program Handbook, (2) Code Enforcement Grant Handbook, (3) Demolition Grant Handbook, and (4) Neighborhood Development Program Handbook.

(b) Procedures. Submissions will first be reviewed against six prerequisites. If any of these prerequisites are not met, the application will be rejected. If the application appears to meet the prerequisites, it will be evaluated against the point rated criteria and assigned a point rating. Then, depending upon the relative rating of the application among other such applications pending in the area office, the applicant may be asked to submit further application material, with supporting documentation so that a final decision on the grant may be reached. Such application material is subject to reviews to determine compliance of the application with basic eligibility and technical requirements. If an application does not receive a high enough point rating to qualify for funding as compared to other pending applications, or if the application cannot meet basic eligibility or technical requirements, the application and any supporting documents will be returned to the applicant with advice as to the areas of deficiency. Remedial action regarding the deficiencies must be undertaken before the proposal may be reconsidered. The provisions of these regulations do not apply to projects involving New Communities, or such other critical or innovative projects as the Assistant Secretary for Community Development may determine. The Department reserves the right to negotiate the modification of the scope of the proposed undertaking and/or the amount of financial assistance requested.

§ 511.2 Definitions.

As used in the regulations in this part:

(a) "Applicant" means a local public agency as defined under sec. 110(h) of the Housing Act of 1949; 63 Stat. 413, 421; 42 U.S.C. 1460(h), which is applying for Federal Assistance under the Neighborhood Development Program.

(b) "City Demonstration Agency" means that agency which was required to be established under title I of the Demonstration Cities and Metropolitan Development Act of 1966, 80 Stat. 1255, 42 U.S.C. 3301, to carry out a