"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 currently 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.g., water supply or sewage treatment, may be provided by other units of government. (b) Capacity for future growth. (Select one): (1) The project provides for the reasonable foreseeable growth needs of the area........... (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 (3) The project provides for the reasonable foreseeable growth needs of the area in addition to meeting an immediate critical need "Reasonable 1 10 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, 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 prepared 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...... (d) State and regional/metropolitan clearinghouse concern. If the proposed project has high priority for the State or regional/metropolitan program, based on the State or regional/metropolitan clearinghouse review and comment, the application will be awarded the following number of points....... 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): (1) $501-$1,500 above.......... (2) $1-$500 above. (3) $0-$500 below. 5 (4) $501-$1,500 below. (5) $1,501 or more below 2 4 6 8 10 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).) (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 (2) Maintenance of existing, or assistance to 2 3 "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 market 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): Percent of housing in project area that will be accessible on a nondiscriminatory basis to families and individuals with low and moderate income is: 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 than every 5 years. A "critical 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. § 556.14 Local job and business opportunities. (Value of this category is the sum of paragraphs (a) to (e) of this section.) (a) The project is needed for existing or proposed commercial or industrial development (b) During the construction phase of the project, on-the-job training activities will be provided... (c) The project will provide job opportunities for underemployed and unemployed persons.... (d) The project has provisions for small business participation (e) The project has provisions for minority business participation 2 2 2 2 "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 to $125,000 or less. In addition to information furnished on SF-101, the relationship of the project to commercial or industrial development in the area will be taken into account. 1 to 5 § 556.16 Community development. The degree to which the project is necessary for undertaking other publicly supported community development activities "Community development activities" refers to those publicly supported physical development activities and those related social or economic development activities being carried out or to be carried out within a reasonable period of time in accordance with a locally determined or areawide plan or strategy. Factors taken into consideration may include the project's responsiveness to local needs and objectives, the economies possible through coordinated or joint action, and the degree of support by the appropriate unit(s) of local general-purpose government. § 556.18 Further application procedures. (a) Preliminary applications that receive a comparatively high rating are placed on the potential project list by the regional or area office having jurisdiction over the geographic area to which the application relates. Then, depending upon the relative rating of the preliminary application among other such applications submitted to the area or regional office within any given period, 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 further reviews to determine compliance of the application with basic eligibility and technical requirements. (b) The relative rating of the preliminary application and remedial action by applicants are determined as follows: A minimum value that will permit funding within the area office is to be determined on the basis of aggregate scores of rated applications. When an SF-101 fails to receive the prescribed score for inclusion of the project on the potential project list, the application and supporting docu (a) Purpose. This part sets forth criteria and procedures to be used in preliminary evaluation of applications for Federal loan assistance to local public bodies and agencies under the Public Facility Loans Program. (b) Procedures. (1) Submissions will first be reviewed against four prerequisites. If any of these prerequisites are not met, the application will be rejected. If the application meets all prerequisites, it will be evaluated against the point rated criteria and assigned a point rating. (2) 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 loan may be reached. Such application material is subject to reviews to deter mine compliance of the application with basic eligibility and technical requirements. (3) 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. (4) The Department will only accept applications for processing under this program involving works for the storage, treatment, purification, or distribution of water; and sewage, sewage treatment, and sewer facilities. 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. (5) The Department reserves the right to negotiate the modification of the scope of the proposed undertaking and/or the amount of financial assistance requested. § 561.2 Definitions. As used in the regulations in this part: (a) "Applicant" means a legal entity, eligible under sections 201-204 of the Housing Amendments of 1955, 69 Stat. 642-644, 42 U.S.C. 1991-1494, which is applying for Federal assistance under the Public Facility Loans Program. (b) "Locality" means the political jurisdiction or jurisdictions having general purpose government powers upon whose behalf the application for Federal assistance has been submitted. (c) "Low and moderate income" means an income level which is less than the maximum income eligibility level for a family of four for the county in which the project is to be located under either of the subsidized housing programs authorized by section 235 or 236 of the National Housing Act, as amended 82 Stat. 476, 477, 498, 12 U.S.C. 1715z, 1715z-1. § 561.4 Program prerequisites. For the Public Facility Loans Program there are the following four prerequisites: (a) Population. The population of the locality submitting the application is less than 50 thousand or in a designated redevelopment area, less than 150 thousand. This prerequisite does not apply to NASA impacted areas. Public Law 345, 84th Congress, 69 Stat. 635, 642; 42 U.S.C. 1491, or projects where there is assistance under Part B Urban Growth and New Community Development Act of 1970 (42 U.S.C. 4511, 84 Stat. 1793.) (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 regulations 24 CFR Part 130, 36 FR 20688. (c) Relocation requirements (if applicable). (1) Submission of acceptance assurances of compliance with the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, 84 Stat. 1894, 42 U.S.C. 4601, and (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 a practical inability to provide adequate relocation assistance. (d) A-95 coordination. Evidence that A-95 coordination is in process. The § 551.18 Local need. (The value of this category is the sum of the values of paragraphs (&) and (b) of this section.) (a) Median income of jurisdiction. The median annual family of the geographic area of jurisdiction of the applicant compared to the State median annual family income is: (Select one, if appropriate): (1) $1-$500 below State median ...... 3 (2) More than $500 below State median........ 6 (b) Median income of service area. The median annual family of the service area compared to the State annual median family income is: (Select one if appropriate): (1) $1-$500 below State median ...... 4 (2) More than $500 below State median........... 8 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 if possible. Or use best available data. The degree to which the project is necessary for undertaking other publicly supported community development activities ..... 0 to 6 "Community development activities" refers to those publicly supported physical development activities and those related social or economic development activities being carried out or to be carried out within a reasonable period of time in accordance with a locally determined or areawide plan or strategy. Factors taken into consideration may include the project's responsiveness to local needs and objectives, the economics possible through coordinated or joint action, the degree of support by the appropriate unit(s) of local general-purpose government, and the management capacity and efforts to develop management capacity within local general-purpose government. |