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PART 555-GRANTS FOR BASIC PUBLIC WATER AND SEWER FACILITIES

Sec.

555.1 Purpose. 555.2

Definitions.

555.3 Grants for basic public water and sewer facilities.

555.4 Eligible projects.

555.5 Requirements for assistance. 555.6 Labor standards.

555.7 Certification of projects for sewer fa

cilities.

555.8 Application of other Federal laws. 555.9 Information, application forms, and applications.

AUTHORITY: Secs. 702, 705, 79 Stat. 490, 492; 42 U.S.C. 3102, 3105.

SOURCE: 36 FR 24730, Dec. 22, 1971, unless otherwise noted.

§ 555.1 Purpose.

The purpose of section 702 of the Housing and Urban Development Act of 1965 (79 Stat. 490, 42 U.S.C. 3102) is to assist the large and small communities throughout the Nation to serve the needs of their citizens and to promote efficient and orderly community growth and development by making available Federal grant assistance to construct adequate basic public water and sewer facilities.

§ 555.2 Definitions.

(a) "Act" shall mean the Housing and Urban Development Act of 1965 (Pub. L. 89-117, approved August 10, 1965).

(b) "Development cost" shall mean the cost of constructing a basic public water or sewer facility and the cost of acquiring the land on which it is located, including site improvements necessary to permit the use of the land as a site for the facility.

(c) "Local public bodies and agencies" shall mean 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.

(d) "Secretary” shall mean the Secretary of Housing and Urban Development, or an officer authorized to perform the functions of the Secretary.

(e) "State" shall mean the several States, the District of Columbia, the Commonwealth of Puerto Rico, and territories and possessions of the United States.

§ 555.3 Grants for basic public water and sewer facilities.

(a) Grants of not more than 50 percent of the development cost of eligible basic public water or sewer facility projects may be made to local public bodies and agencies.

(b) Grants of not more than 90 percent of the development cost of an eligible sewer facility project may be made if the project is to serve a community having a population of less than 10,000, according to the most recent decennial census, which is situated within a metropolitan area, and if such community is unable to finance the construction of the sewer facility without the increased grant, and if in such community (1) there does not exist a public or other adequate sewer facility which serves a substantial portion of the inhabitants of the community and (2) the rate of unemployment is, and has been continuously for the preceding calendar year, 100 percent above the national average.

§ 555.4 Eligible projects.

(a) Grant assistance is available to construct new facilities and to enlarge or improve existing facilities of the following types:

(1) Basic public water facilities, including facilities for the storage, supply, treatment, purification, or distribution of water for domestic, commercial, or industrial use; and

(2) Basic public sewer facilities, including sanitary sewer systems for the collection, transmission and discharge of liquid wastes; and storm sewer systems for the collection, transmission, and discharge of water caused by rainfall or ground water runoff.

(b) The basic public water or sewer facility for which a grant may be made may include all parts of the water or sewer facility except household con

nections and the local collection or distribution laterals.

(c) Grant assistance will not be provided to finance ordinary repairs or maintenance of existing facilities.

(d) Grant assistance will not be provided for the construction of "treatment works” as defined in the Federal Water Pollution Control Act (70 Stat. 506, 23 U.S.C. 1173).

§ 555.5 Requirements for assistance.

(a) An eligible project must be necessary to provide adequate water or sewer facilities for, and contribute to the improvement of the health or living standards of, the people in the community to be served by the project. The project must be

(1) Designed so that an adequate capacity will be available to serve the reasonably foreseeable growth needs of the area;

(2) Consistent with a program for a unified or officially coordinated areawide water or sewer facilities system as part of the comprehensively planned development of the area; and (3) Necessary to orderly community development.

(b) Prior to July 1, 1968, the Secretary may, in his discretion, make a grant with respect to an eligible project if the program for an areawide water or sewer facilities system is under active preparation but not yet completed, if the facility for which assistance is sought can reasonably be expected to be required as part of such an areawide program, and there is an urgent need for the facility.

(c) The Secretary is authorized to make a grant with respect to an eligible project for a sewer facility without regard to the requirements contained in this section in the case of a community which is eligible for an increased grant under § 555.3(b).

§ 555.6 Labor standards.

All laborers and mechanics employed 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 ac

cordance with the Davis-Bacon Act, as amended (40 U.S.C. 2768-276a-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). The Secretary of Labor has, with respect to the labor standards specified in this section, the authority and functions set forth in Reorganization Plan Number 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.

§ 555.7 Certification of projects for sewer facilities.

Grant assistance may not be made available for a project for a sewer facility unless the Secretary of the Interior certifies to the Secretary that any waste material carried by the facility will be adequately treated so as to meet applicable Federal, State, interstate, or local water quality standards before such waste material is discharged into any public waterway.

§ 555.8 Application of other Federal laws.

(a) Grants authorized by section 702 of the Act are subject to provisions of:

(1) Title VI of the Civil Rights Act of 1964 (Pub. L. 88-352, 42 U.S.C. 2000d), 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 (42 U.S.C. 3071-3074), which requires that, as a condition of eligibility for assistance under section 702 of the Act, the applicant will follow certain prescribed policies in the acquisition of real property by eminent domain.

(b) An applicant for grant assistance under section 702 of the Act will be required to furnish satisfactory assurance that it will comply with the re

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This part sets forth the criteria and procedures used in evaluating preliminary applications for Federal grant assistance to local public bodies and agencies for basic water and sewer facilities under the Act. The evaluation of preliminary applications described in this part does not result in a final decision by the Secretary to extend grant assistance to particular projects for the construction of such facilities. The provisions of this part of the 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. Further application procedures are described in § 556.18.

(42 U.S.C. 3535(d))

[37 FR 26415, Dec. 12, 1972]

§ 556.2 Definitions.

terms "Act",

"development

The cost", "local public bodies and agencies", "Secretary", and "State" shall have the meanings given in § 555.2 of this chapter.

§ 556.3 Preliminary applications for assistance.

(a) Preliminary applications for grants for water and sewer facilities shall be submitted on Standard Form 101, to the appropriate HUD regional or area office having jurisdiction over the geographic area involved in the application. Copies of this form may be obtained on request from the regional or area office.

(b) In general, Standard Form 101 requests the legal name and address of the applicant (an eligible local public body or agency); a brief description of the proposed project and its purpose; a list of the localities to be served; the public interest and necessity for the project; and the proposed method of financing including the total project cost and the grant amount requested.

§ 556.4 Criteria for evaluating preliminary applications.

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

(a) Orderly growth and development.

(b) Financial need.

(c) Housing.

(d) Health.

(e) Local job and business opportunity.

(f) Community development. The elements considered in each category are described in the following 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 a statement under a particular element or category

SOURCE: 40 FR 24693, June 9, 1975, unless otherwise noted.

Subpart A-General Provisions

AUTHORITY: Title I, Housing and Community Development Act of 1974 (42 U.S.C. 5301 et seq.); Title I, Housing and Community Development Act of 1977 (Pub. L. 95128); and sec. 7(d), Department of Housing and Urban Development Act (42 U.S.C. 3535(d)).

SOURCE: 43 FR 4383, Feb. 1, 1978, unless otherwise noted.

§ 570.1 Applicability and scope.

(a) This Part covers policies and procedures applicable to community development block grants and loan guarentees on behalf of urban communities, authorized under Title I of the Housing and Community Development Act of 1974, as amended. Included are provisions relating to the roles and responsibilities of HUD and general local government with regard to the allocation and distribution of funds; eligible activities; application requirements; review criteria; and administrative and other program requirements.

(b) The community development block grant program replaces the following programs consolidated by the Act:

(1) Urban renewal (and neighborhood development programs) under Title I of the Housing Act of 1949;

(2) Model Cities under Title I of the Demonstration Cities and Metropolitan Development Act of 1966;

(3) Water and sewer facilities under section 702 of the Housing and Urban Development Act of 1965;

(4) Neighborhood facilities under section 703 of the Housing and Urban Development Act of 1965;

(5) Public facilities loans under Title II of the Housing Amendments of 1955;

(6) Open space land under Title VII of the Housing Act of 1961.

§ 570.2 Objective and purpose of program.

(a) The primary objective of the Community Development Program is the development of viable urban communities, including decent housing and a suitable living environment and

expanding economic opportunities, principally for persons of low and moderate income. Consistent with this primary objective, the Federal assistance provided in this Part is for the support of community development activities which are directed toward the following specific objectives:

(1) The elimination of slums and blight and the prevention of blighting influences and the deterioration of property and neighborhood and community facilities of importance to the welfare of the community, principally persons of low and moderate income;

(2) The elimination of conditions which are detrimental to health, safety, and public welfare, through code enforcement, demolition, interim rehabilitation assistance, and related activities;

(3) The conservation and expansion of the Nation's housing stock in order to provide a decent home and a suitable living environment for all persons, but principally those of low and moderate income;

(4) The expansion and improvement of the quantity and quality of community services, principally for persons of low and moderate income, which are essential for sound community development and for the development of viable urban communities;

(5) A more rational utilization of land and other natural resources and the better arrangement of residential, commercial, industrial, recreational, and other needed activity centers;

(6) The reduction of the isolation of income groups within communities and geographical areas and the promotion of an increase in the diversity and vitality of neighborhoods through the spatial deconcentration of housing opportunities for persons of lower income and the revitalization of deteriorating or deteriorated neighborhoods to attract persons of higher income; and

(7) The restoration and preservation of properties of special value for historic, architectural or esthetic reasons.

(8) The alleviation of physical and economic distress through the stimulation of private investment and community revitalization in areas with popu

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"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:

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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

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“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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