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applies specifically to the project application under consideration, the application is awarded the number of points assigned to that statement. If no statement applies, no points are awarded to the application for that element.

e.g., a desperate need for water including any need to import water, or a need to control frequent inundations or to eliminate sources of epidemics.

(c) Planning and programing. If the statement of goals and objectives pre

pared by the areawide planning organization has been endorsed or adopted, as provided by State law, by the unit(s) of general-purpose government for the area in which the project is located, the application will be awarded the following number of points .....

5 (d) State and regional/metropolitan clearinghouse concern.

$ 556.6 Orderly growth and development.

(The value of this category is the sum of the values of paragraphs (a) to (d) of this section.)

(a) Service area need. (Select one):

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If the proposed project has high priority for

the State or regional/metropolitan program, based on the State or regional/met. ropolitan clearinghouse review and comment, the application will be awarded the following number of points ...

$ 556.8 Financial need.

(Value of this category is the sum of the values of paragraphs (a) to (c) of this section.)

(1) Is to rehabilitate an existing system with

no Increase in the area served (2) Is to increase the existing area served with or without rehabilitation of the exist

ing system... (3) Is to provide a basic system for a commu. nity which is presently unserved

10 "Service area" means the total geographic area for which the applicant has legal responsibility to provide services and facilities. “Rehabilitation” refers only to major items of construction; it does not include normal maintenance and repair. The phrase "increase the area served" refers to the provision of facilities in those portions of the service area which are not cur. rently part of the existing system. A "basic system" is one which provides facilities within the service area where no facilities currently exist, but existing or proposed supporting facilities, e.8., water supply or sewage treatment, may be provided by other units of government.

(b) Capacity for future growth. (Select one):

(a) If the project cannot be financed with.

out the requested Federal assistance, the application will be awarded the following number of points .............

5 Ability to finance the project on the basis of revenue bonds is computed at 6 percent interest over 25 years. If the estimated net revenue in an average year exceeds the total debt service costs for that year by a factor of 1.25, it is assumed that the project can be financed without the requested Federal aid, and the points will not be awarded.

(b) Relative median family income: The median family income of the service area of the proposed project compared to the median family income of the State in which the project is to be located is: (Select one):

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(1) The project provides for the reasonable foreseeable growth needs of the area.....

1 (2) The project provides for the reasonable

foreseeable growth needs of the area in addition to providing for an anticipated urgent need of the applicant in the next 2 to 5 years

5 (3) The project provides for tire reasonable

foreseeable growth needs of the area in addition to meeting an immediate critical need

10 "Reasonable foreseeable growth needs" are determined by the applicant as reflected in the functional planning and programing for the area. "Urgent need” refers to a need which, if not corrected in the next 5 years, can be expected to result in a critical need. A “critical need” refers to a need that should be satisfied immediately,

Median family incomes for the service area and the State are to be obtained by utilizing the City-County Data Book or other census data. In those instances where the median family income for the area as determined from the source material appears inconsistent with the Department's knowledge of the community, adjacent area median family incomes will be considered.

(c) Non-Federal financial aid: (Value of this element is the sum of the values of (1) and (2).)

(1) State assistance (grant and/or loan) is

being provided to assist in project financ

ing ..... (2) Units of government other than the ap

plicant and a State are providing financial assistance for the project.

2 Financing by other units of governments includes grants, loans, or contributions to the construction of the project by units of general. or special-purpose governments other than the applicant and a State.

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$ 556.12 Health.

The proposed project is necessary for: (Select one): (a) Elimination of a potential public health

hazard (b) Elimination of a demonstrated public

health hazard (c) Elimination of a critical health hazard.... A “potential public health hazard" refers to a hazard which if not corrected can be expected to result in a dangerous lowering of environmental quality and health standards; e.g., malfunctioning septic tanks, polluted individual wells, or areas subject to inundation not more often than every 5 years but at least once every 10 years. A “demonstrated public health hazard” refers to hazards from existing sources which if not corrected, could result in disease of epidemic proportions (which sources are evidenced by epidemiological studies and reports), contamination of domestic water sources from any cause, the need to import water for any cause, and the inundation of the area more frequently th every 5 years. A “criti. cal public health hazard” refers to a demonstrated public health hazard which must be resolved immediately, e.g., a desperate need for water, control of demonstrated causes of diseases of epidemic proportions, and the inundation of the area more frequently than once per year.

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8 556.10 Housing.

(The value of this category is the sum of the values of paragraphs (a) and (b) of this section.)

(a) Decent, safe, and sanitary housing. (Value of this element is the sum of the value of paragraphs (a) (1) to (3) of this section.) The project is necessary for the(1) Maintenance of existing decent, safe and

sanitary housing.......... (2) Maintenance of existing, or assistance to proposed, decent, safe, and sanitary low

and moderate income housing. (3) Assistance of significant areas of housing

that is less than decent, safe, and sanitary. "Decent, safe, and sanitary housing" refers to housing that is in accordance with local housing standards in the area in which the project is to be located. "Low- and moderate-income housing” refers to housing with a fair niarket value that is equal to or less than the resultant of multiplying the section 235-236 maximum income for a family of four, as established by the Secretary for the county in which the project is located, by a factor of 3. "Low- and moderate-income housing" also refers to housing with an annual rental equal to or less than one-third of such section 235-236 maximum income.

(b) Accessibility of housing. (Select one):

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8 556.14 Local job and business opportuni.

ties. (Value of this category is the sum of paragraphs (a) to (e) of this section.) (a) The project is needed for existing or pro

posed commercial or industrial develop

ment (b) During the construction phase of the

project, on-the-job training activities will

be provided. (c) The project will provide job opportuni.

ties for underemployed and unemployed persons..

2 (d) The project has provisions for small

business participation (e) The project has provisions for minority

business participation "On-the-job training” refers to union or government sponsored apprenticeship or similar training programs. "Small businesses" refers to those contractors, including supply contractors, whose contractual abilities are limited

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Percent of housing in project area that will be accessible on a nondiscriminatory basis to families and individuals with low and moderate income is: (1) 81-100 percent.

10 (2) 61-80 percent.. (3) 41-60 percent. (4) 21-40 percent. (5) 20 percent or less As used herein, "nondiscriminatory" means free of legal or social constraints arising from race, creed, color, and national origin.

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the Secretary, for the county in which the project is located, by a factor of 3. "Low- and moderate-income housing” also refers to housing with an annual rental equal to or less than one-third of such section 235-236 maximum income.

(e) “Service Area" means the area proposed to be, and reasonably capable of being, served by the Neighborhood Facilities Grant Project.

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(a) Relationship to comprehensive planning;

(b) Income level of area to be served; (c) Relevance of program objectives;

(d) Capacity to administer the neighborhood facility;

(e) Local equal employment and entrepreneurial effort;

(f) Local need;

(g) Commitment of local, county, State, and Federal entities to project or program;

(h) Expansion of housing for lowand moderate-income families;

(1) Community development; The elements considered in each category are described in the llowing sections, and the method of assigning rating points to each element or category is set forth. Points are awarded to each element or category in the following manner unless otherwise specifically indicated: If & statement under a particular element or category applies specifically to the project application under consideration, the application is awarded the number of points assigned to that statement. If no statement applies, no points are awarded to the application for that element.

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8 551.4 Program prerequisites.

For the Neighborhood Facilities Grart Program there are the following four prerequisites:

(a) Relocation requirements (if applicable). (1) Submission of acceptable assurances of compliance with the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (84 Stat. 1894, 42 U.S.C. 4601).

(2) Absence of any known impediment to the applicant's ability to meet HUD relocation requirements and the applicant's and/or locality's ability to fulfill requirements for replacement housing. Known impediment refers to

practical inability to provide adequate relocation assistance.

(b) Civil rights. Submission of acceptable assurances of compliance with title VI of the Civil Rights Act of 1964, Pub. L. 88-352, 78 Stat. 252, 42 U.S.C. 2000d and HUD Title VI regulations 24 CFR Part I, 29 FR 16280 and with affirmative action plan requirements pursuant to Executive Order 11246, as amended 30 FR 12319, and HUD re dations 24 CFR Part 130, 36 FR 20688.

(c) Service area. The service area of the facility is reasonable in relationship to the services to be provided, and the design and capacity of the proposed facility.

(d) Project location. The project is so located as to be available for use by a significant portion (or number in the case of large urban places) of the area's low- and moderate-income residents.

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8 551.8 Relationship to comprehensive

planning. (The value of this category is the value of paragraph (a) of this section.)

(a) General plan. The proposed facility is specifically identified in the locality's general plan.........

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8 551.10 Income level of area to be served.

(The value of this category is the value of paragraphs (a), (b), or (c) of this section, as applicable.)

(a) Population served. On the basis of the latest available decennial census data 40-49 percent of the families whose needs are proposed to be served by the facility are low- and moderateincome families.......

5 "Low- and moderate-income" is defined in 8 551.2(c).

(b) Population served. On the basis of the latest available decennial census data, 50-59 percent of the families whose needs are proposed to be served

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$ 551.6 Criteria for evaluating applica

tions. Criteria for evaluating applications are divided into the following major categories:

throuet

(4) Ir dissemir

.....

.............

by the facility are low- and moderate- (5) Maintenance of central record-
income families..........

10 keeping system;
(c) Population served. On the basis (6) Community organization.
of the latest available decennial census

(b) Program experience. (1) If localdata, 60 percent or over of the families

ity has had prior federally assisted whose needs are proposed to be served

Neighborhood Facilities Grant Proby the facility are low- and moderate

gram experience: The locality has exincome families......

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peditiously put in operation such fa

cilities; where displacement was in$ 551.12 Relevance of program objectives.

volved, effectively carried out reloca(The value of this category is the tion activities; and operated the comsum of paragraphs (a) to (c) in this

pleted facilities in accordance with section.)

contract conditions

5 (a) Accessibility to low- and moder

or ate-income persons. The proposed fa

(2) If the locality is without federalcility will be made readily accessible to

ly assisted Neighborhood Facilities low- and moderate-income persons outside

Grant Program experience: The applithe immediate neighbor

cant has adequately maintained public hood

3 (b) Provision of community service.

facilities on a neighborhood basis and

operated them in a nondiscriminatory The proposed facility will provide a

manner

5 program of community services to meet identified needs of low- and mod

8 551.16 Local equal employment and enerate-income families and individuals

trepreneurial effort. where present service and facilities do not exist

...... 8 (The value of this category is the (c) Coordination of existing services.

sum of the values of paragraphs (a), The proposed Neighborhood Facility (b), and (c) of this section.) Program will coordinate and extend (a) Activities undertaken by the loexisting health, recreation, social or cality have provided relatively superisimilar community services to meet or opportunities for training and/or the identified needs of the population employment of minority persons 3 of the area to be served............. 5 (b) Activities undertaken by the lo"Identified Needs” refer to those pri- cality have provided relatively superiority needs determined by the appli

or opportunities for business concerns cant with the participation of the com

owned, controlled or managed in submunity residents whose needs are to

stantial part by minority persons ...... 3 be served.

(c) The applicant has taken affirma

tive action in its own employment in 8 551.14 Capacity to administer the Neigh- the training and/or employment of borhood Facility.

minority persons with relatively supe(The value of this category is the rior results

4 sum of paragraphs (a) and (b) of this

In determining whether or not persection.)

formance has been “relatively superi(a) Local commitment. The locality

or", the following items will be taken has committed staff and funds to pro

into consideration. Absolute numbers vide core services for the proposed fa

of persons actually trained or hired in cility.

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relation to numbers of minority group "Core Services" (central administra- persons in the labor market area; total tive services) cover such activities as: dollar value of contracts let to miiior

(1) Coordination of services, includ. ity entrepreneurs in relation to total ing hiring of a center director;

dollar amount of contracts let by local. (2) Outreach;

ity; within the administering agency, (3) Intake, referral, and follow racial composition at all levels of emthrough;

ployment and absolute number of (4) Information development and training opportunities made available dissemination;

to minority group persons.

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8 551.18 Local need.

sentatives in the areawide or metro

3 (The value of this category is the

politan planning organization. sum of the values of paragraphs (&) and (b) of this section.)

§ 551.22 Expansion of housing for low-and (a) Median income of jurisdiction.

moderate-income families. The median annual family of the geo- (The value of this category is the graphic area of jurisdiction of the ap- sum of the values of paragraphs (a), plicant compared to the State median (b), and (c) of this section.) annual family income is: (Select one, if

(a) Expansion of low- and moderateappropriate):

income housing (applicant). Within (1) $1-$500 below State median ...... 3

the applicant's geographic area of ju(2) More than $500 below State

risdiction, there has been significant median......

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expansion of the supply of standard (b) Median income of service area.

housing for low- and moderate-income The median annual family of the serv

families in nondiscriminatory way .... 3 ice area compared to the State annual median family income is: (Select one if

(b) Expansion of low- and moderateappropriate):

income housing (iocality). Within the (1) $1-$500 below State median 4

locality in which the project is located, (2) More than $500 below State

there has been significant expansion median.......................

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of the supply of standard housing for

low-and moderate-income families in a Median family incomes for the service nondiscriminatory way

3 area and the State are to be obtained by utilizing the City County Data

(c) Dispersion of low- and moderate

income housing. The locality has a reBook or other census data if possible.

alistic plan to expand the supply of Or use best available data.

standard low- and moderate-income 8 551.20 Commitment of local, county,

housing in a nondiscriminatory way State, and Federal entities to project or

outside an area of concentration of program.

economically disadvantaged or minor-
ity citizens ............

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(The value of this category is the
sum of paragraphs (a) to (d) of this

$ 551.24 Community development. section.) (a) Local commitment. There was

The degree to which the project is substantial participation by the chief necessary for undertaking other pubexecutive and governing body of the licly supported community developlocality during the planning of the ment activities

0 to 6 project, and they are demonstrating current public commitment in support

"Community development activities" of the project

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refers to those publicly supported (b) Resident commitment. There was

physical development activities and effective widespread participation of a

those related social or economic develrepresentative spectrum of service

opment activities being carried out or area residents in the development of

to be carried out within a reasonable project objectives and there is evi- period of time in accordance with a lodence of current support for the ex- cally determined or areawide plan or ecution of the project................ 4 strategy. Factors taken into considera

(c) Coordination of resources. There tion may include the project's responwas substantial participation of other siveness to local needs and objectives, local agencies during planning, and the economics possible through coordi. there is a current commitment includ. nated or joint action, the degree of ing resources, from Federal, State, support by the appropriate unit(s) of county, or local entities other than

local general-purpose government, and those necessary to satisfy the local

the management capacity and efforts share requirement......

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to develop management

capacity (d) Participation in areawide of

within local general-purpose governmetropolitan planning. There is active

ment. participation by the locality's repre

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