The applicant shall provide HUD with a description of the activity, and of the relationship to the applicant's strategy for economic development. In authorizing activities, HUD will take into account the amount of long-term employment to be generated by the activity accessible to low- and moderate-income persons, the necessity of the activity to stimulate private investment, the degree of impact on the economic conditions of the applicant, and the availability of other Federal funds. (a) Acquisition. Acquisition of real property for economic development purposes; (b) Public facilities and improvements. Acquisition, construction, reconstruction, rehabilitation, or installation of public facilities and improvements not otherwise eligible for assistance, except buildings and facilities for the general conduct of government which are excluded by § 570.207(a)(1). For example, in an area with an unemployment rate in excess of the national rate, a manpower training center which is designed to prepare for the work force low- and moderateincome persons who are unemployed or underemployed, may be assisted where it is determined by the applicant that such a facility is necessary and appropriate to support its economic development strategy. (c) Commercial and industrial facilities. Acquisition, construction, reconstruction, rehabilitation or installation of: (1) Commercial or industrial buildings and structures, including: (i) Purchase of equipment and fixtures which are part of the real estate, but not personal property; and (ii) Energy conservation improvements designed to encourage the efficient use of energy resources (including renewable energy resources or alternative energy resources); (2) Commercial or industrial real property improvements (including railroad spurs or similar extensions). § 570.204 Eligible activities by private nonprofit entities, neighborhood-based nonprofit organizations, local development corporations, or small business investment companies. (a) General. Grant assistance may be used by applicants to provide block grant funds for activities designed to implement the aplicant's strategies for economic development and neighborhood revitalization set forth in this section to be carried out by a private nonprofit entity, a neighborhoodbased nonprofit organization, local development corporation, or Small Business Investment Company (SBIC). (1) Applicant Responsibilities. Applicants are nonetheless responsible for ensuring that block grant funds are utilized by such entities in a manner consistent with the requirements of this Part and other applicable Federal, State, or local law. Specific requirements governing the administration of the use of block grant funds by such entities are set forth in § 570.612. Applicants will also be responsible for the carrying out of applicable environmental review and clearance responsibilities. (2) Eligible Entities. Entities eligible to receive block grant funds under this section are: (i) A private non-profit entity which is any organization, corporation, or association, duly organized to promote and undertake community development activities on a not-for-profit basis, including new community associations as defined in § 570.403(b); (ii) A neighborhood-based nonprofit organization which is an association or corporation, duly organized to promote and undertake community development activities on a not-for-profit basis within a neighborhood as defined pursuant to §570.201(c)(4). An organization is considered to be neighborhood-based if the majority of either its membership, clientele, or governing body are residents of the neighborhood where activities assisted with block grant funds are to be carried out; (iii) A Small Business Investment Company (SBIC) which is an entity organized pursuant to section 301(d) of the Small Business Investment Act An eigh of e, or the sisted ecar tment entity 301(d) nt Act f 1958 (15 U.S.C. 681(d)), including hood-based nonproft organizations, (1) Assistance through grants, loans, (i) Working capital or operational (ii) Capital for land, structures, (3) Assistance to minority contrac- (4) Other activities, excluding those described as ineligible for block grant assistance in §§ 570.207 (a)(1) and (e), appropriate for community economic development or neighborhood revitalization. Where an applicant proposes to fund such entities to undertake activities pursuant to this paragraph, the applicant shall: (b) Activities eligible under 88570.201-570.203, and §570.205 and 8570.206. Grant assistance may be provided by an applicant to be utilized by private nonprofit entities, neighborhood-based nonprofit organizations, SBIC's, or local development corporations for activities otherwise eligible for block grant assistance pursuant to 88 570.201-570.203, and §570.205 and $570.206. Where such entities use block grant funds to acquire title to facitilites, including those described in 8570.201(c) or § 570.203(b), they shall be operated so as to be open for use by the general public during all normal hours of operation. Reasonable fees may be charged for the use of facilities acquired by such entities, but charges, such as excessive membership fees, which will have the effect of precluding low and moderate-income persons from using the facilities are not permitted. (i) Provide HUD with a complete description of the proposed activity; (ii) Provide HUD with a description of the relationship of the proposed activity to the applicant's strategy for neighborhood revitalization or economic development; and (iii) Receive specific authorization from HUD to undertake the activity. § 570.205 Eligible planning, and urban environmental design costs. Grant assistance may be used for the following planning, design, and environmental costs: (c) Community economic develop- (a) Development of a Comprehensive Community Development Plan. For the purpose of this section, the term "Comprehensive Community Development Plan" means a statement or statements (in words, maps, illustrations or other methods of communication) which identify the present conditions, needs and major problems of the applicant's jurisdiction relating to the specific objectives of the Community Development Program as set forth in § 570.2(a) and set forth objectives, policies and standards to guide the development and implementation of such Community Development Program. (1) Data gathering and studies necessary for the development of the Plan or its components, including the production of base mapping and aerial photography in coordination with the U.S. Geological Survey, and gathering information from citizens, but excluding the gathering of detailed data and preparing of analyses necessary for the engineering and design of facilities or activities ineligible for block grant assistance pursuant to § 570.207; (2) Development of statements of objectives, policies and standards regarding proposed or forseeable changes in the present conditions or problems affecting the applicant's jurisdiction that are to be addressed by the Community Development Program, including policies which will affirmatively further fair housing; (3) Development of the three-year Community Development Plan which identifies the community development, housing, and economic conditions and needs, demonstrates a comprehensive strategy for meeting those needs and specifies both short- and long-term objectives to guide the applicant's Community Development Program; (4) Related planning and urban environmental design activities including the preparation of communitywide plans for land use, housing, open space, recreation, utilities, historic preservation, including surveys of historic properties, economic development, neighborhood preservation, removal of architectural barriers to the elderly and handicapped, and environmental assessment; (5) Collection of detailed data, preparation of analyses, engineering and design of facilities eligible for assistance which can be constructed with block grant funds; and (6) Development of codes, ordinances and regulations, necessary for the implementation of the plan, including local fair housing ordinances. (b) Development of a policy-planning-management capacity so that the applicant may: (1) Set long-term and short-term objectives related to the community develoment and housing needs of its jurisdiction; (2) Devise programs and activities to meet these goals and objectives; (3) Establish an urban environmental design administrative capacity to use a systematic, interdisciplinary approach to the integrated use of natural and social sciences and environmental design arts in planning and decision making; (4) Evaluate the progress of such programs and activities and the extent to which the goals and objectives have been accomplished; and (5) Carry out the management, coordination and monitoring of the activities and programs that are a part of the applicant's Community Development Program. (c) Comprehensive planning activi ties. In addition to the planning activities otherwise elegible for assistance under the section, assistance may be also provided for comprehensive planning activities eligible for assistance under the section 701 planning assistance program pursuant to 24 CFR Part 600 provided that such additional planning activities are necessary or appropriate to meeting the needs and objectives of the applicants' Community Development Program. The applicant shall submit a discription of the activity to HUD. Among the factors HUD will take into account in authorizing activities will be the impact of the activity on the needs and objectives indentified by the applicant, and the availability of other Federal funds. § 570.206 Eligible administrative costs. Payment of reasonable administrative costs and carrying charges related to the planning and execution of community development activities financed, in whole or in Part with funds provided under this Part and housing activities covered in the applicant's Housing Assistance Plan (HAP). Costs incurred in carrying out the program, whether charged to the program on a direct or an indirect basis, must be in conformance with the requirements of Federal Management Circular (FMC) 74-4, "Cost Principles Applicable to rants and Contracts with State and Ocal Government." All items of cost sted in Attachment B, Section C of at Circular (exept Item 6, preagreement cost, which are eligible only to he extent authorized in §570.301(c) are allowable without prior approval to the extent they constitute reasonable costs and are otherwise eligible under this subpart. (a) Eligible program administration costs. Reasonable administrative costs and staff expenses include necessary expenditures for the following: (1) Salaries, wages and related costs of the applicant's staff and the staff of local public agencies engaged in carrying out the program; be involved effectively in the develop- (c) Provision of fair housing counsel- (2) Travel costs incurred for official business in carrying out the program; (3) Administrative services performed under third-party contracts or agreements, inlcuding such services as general legal services, accounting services and audit services; (4) Other costs for goods and services required for administration of the program, including such goods and services as rental and maintenance of office space, insurance, utilities, office supplies and rental or purchase of office equipment; (5) Costs associated with the administration of individual program activities; and (d) Provision of assistance to facilitate performance and payment bonding necessary for contractors carrying out activities assisted with block grant funds including, payment of bond premiums in behalf of contractors. (6) Reasonable administrative costs relating to the provision of rehabilitation loans under section 312 of the Housing Act of 1964, as amended, and, where appropriate, administration of an urban homesteading program pursuant to section 810 of the Housing and Community Development Act of 1974, as amended, in accordance with the Community Development Program or housing assistance plan. (e) Property management. Reasonable costs of managing properties acquired with block grant funds. (f) Applications for Federal programs, including the block grant program and UDAG prograin, may be prepared with block grant funds where necessary and appropriate to implement the applicant's comprehensive strategy for community development. Special provisions regarding letter to proceed for small city applicants are contained in Subpart F. (g) Activities to facilitate the implementation of a housing assistance plan for necessary expenses, prior to construction, in planning and obtaining financing for the new construction or substantial rehabilitation of housing for lower-income persons. Activities may include: (b) The provision of information design documentation, and "sketch drawings," but excluding architectural, engineering, and other details ordinarily required for construction purposes, such as structural, electrical, plumbing, and mechanical details; (3) Reasonable costs associated with development of applications for mortgage and insured loan commitments, including commitment fees, and of applications and proposals under the Section 8 housing assistance payments program pursuant to 24 CFR Parts 880-883; and (4) Fees associated with processing of applications for mortgage and insured loan commitments under programs including those administered by HUD, Farmers Home Administration (FmHA), Federal National Mortgage Association (FNMA), and the Government National Mortgage Association (GNMA). The new construction or direct financing of new construction of housing is not eligible for assistance under this Part, except as described in § 570.207(f). (h) Environmental Studies. The reasonable costs of environmental studies, including historic preservation clearances, necessary to comply with 24 CFR Part 58, including project specific environmental assessments and clearances for activities eligible for assistance under this Part. § 570.207 Ineligible activities. The following is a list of activities which are ineligible for block grant assistance under most circumstances and serves as a general guide regarding ineligible activities. There are several authorities set forth in Subpart C which would permit activities cited in this section to be undertaken with block grant funds. When an activity used as an example in this section meets the requirements for eligiblity pursuant to Subpart C, such an activity may be assisted with block grant funds even though it is used as an example of an ineligible activity. The list of examples of ineligible activities is merely illustrative and does not constitute a list of all ineligible activities: (a) Public works, facilities and site or other improvements. The general rule is that public works, facilities and site or other improvements are ineligi ble to be acquired, constructed, reconstructed, rehabilitated or installed unless they are eligible pursuant to § 570.201(c) or § 570.203(b), or were previously eligible under any of the programs consolidated by the Act (except the public facilities loan program, the model cities program, and as an urban renewal local grant-in-aid eligible under section 110(d)(3) of Housing Act of 1949) and cited in § 570.1(b). Activities undertaken to make facilities and improvements otherwise ineligible for development with block grant assistance accessible to the elderly and handicapped through removal of architectural barriers, or for the purposes of historic preservation pursuant to §§ 570.201(k) and 570.202(f), respectively, are eligible for assistance with block grant funds and are not precluded by this section. Where acquisition of real property includes an existing improvement which is to be uti lized in the provision of an ineligible public facility, the portion of the acquisition cost attributable to such improvement, as well as the cost of any rehabilitation or conversion undertaken to adapt or make the property suitable for such use, shall be ineligible. Examples include the following: (1) Buildings and facilities for the general conduct of government, cannot be provided with block grant assistance, such as city halls and other headquarters of government where the governing body of the recipient meets regularly and which are predominantly used for municipal purposes, courthouses, police stations and other municipal office buildings; (2) Other facilities and improvements, which may not be provided with block grant funds unless they are determined by HUD to be necessary and appropriate to the implementation of an applicant's strategy for community development and housing in accordance with §§ 570.201(c)(14) or 570.203(b), include: (i) Facilities used for exhibitions, spectator events and cultural purposes, including stadiums, sports arenas, auditoriums, concert halls, cultural and art centers, convention cen |