Secretary will establish for each fiscal year an amount for which each eligible applicant may apply taking intɔ account any hold-harmless amounts as calculated pursuant to § 570.103(c) and the applicants, community development needs and local administrative capacity.

(c) Application requirements. Applicants shall meet the application requirements in Subpart D.

[41 FR 8612, Feb. 27, 1976, as amended at 42 FR 45768, Sept. 12, 1977; 43 FR 8447, 8473, Mar. 1, 1978]

§ 570.406 Innovative projects.

(a) Eligible applicants. Eligible applicants are States, and units of general local government as defined in § 570.3(v). For the purpose of this section, the second sentence in § 570.3(v) includes those entities described in § 570.403(b) (1), (2) and (3).

(b) Criteria for selection—(1) General. An innovative community development project may take any of several forms. It may be a product, a process, an organizational arrangement or a technique. The innovation should encompass a concept that is untried, unique, and/or advances the state of the community development art. Proposed projects which have been demonstrated before or are in use elsewhere at the present may be considered for demonstration if the application identifies and addresses the question of the special nature or circumstances surrounding the proposed project which would warrant its consideration for funding under Innovative Projects.

(2) Review Factors. Applications for funding will be evaluated by such criteria as:

(i) The overall technical merit of the proposed project including the specific impact of the innovation.

(ii) The unique capabilities, related experiences, facilities or techniques and the commitment which the applicant possesses and offers for achieving the objectives of the project.

(iii) The extent to which the identified problem is common to a substantial number of communities and the proposed approach can be adopted and

replicated in a significant number of other community environments.

(iv) The availability of discretionary grant funding for innovative projects in light of competing needs.

(3) Method of selection. In view of the national scope of the Innovative Projects Program and the limitations on the amount of funds available during each fiscal year, innovative grants may be made at the discretion of HUD in response to:

(i) Proposals received pursuant to a program announcement by Notice in the FEDERAL REGISTER which provides the following information:

(A) The areas of national significance which will be given priority consideration in the review of proposals;

(B) The specific selection criteria to be used in the review of proposals and the award of grants in addition to, or in lieu of, the criteria set forth in § 570.406(b)(2); and

(C) The time periods for the submission of proposals or applications; or

(ii) Proposals received at any time during a fiscal year which, though not in response to a program announcement, nonetheless are determined by HUD to offer a significant opportunity to provide innovative approaches through individual demonstration projects to the solution of longstanding or widespread urban area problems in furtherance of the objectives of the Act.

(c) Application requirements. Applications shall be submitted to HUD's Office of Community Planning and Development in accordance with the specifications of a program announcement pursuant to § 570.406(b)(3)(i), or in response to an invitation from HUD for a proposal received pursuant to § 570.406(b)(3)(ii). Applications shall be in a format approved by HUD and shall include the following:

(1) A brief letter of transmittal containing the signatures of the Chief Executive(s) of the Applicant and designated project leader who will be primarily responsible for execution of the project.

(2) A one page abstract of the project summarizing the proposal.

(3) A project narrative statement describing the nature of the problem,

the goals and objectives of the project, the proposed solution, the resources to be used, the management plan, the tasks to be carried out, the plan for evaluation and such other elements as are necessary to describe applicant activities for other elements which may be required in priority programs.

(4) A proposed budget clearly showing the proposed expenditure of HUD funds.

(5) The certifications required by § 570.307 except for paragraphs (d) and (f). In addition, the applicant must certify that citizens likely to be affected by the project, particularly low and moderate income persons, have been provided an opportunity to comment on the application.

(d) Reports. In lieu of the annual performance report cited in § 570.906, recipients shall submit the following:

(1) Outline for final project report. Midway through completion of the project (or at an alternate point in time as specified by HUD) each recipient shall prepare a detailed outline of the final project report under guidelines provided by HUD.

(2) Draft report. The recipient shall submit to HUD, six copies of a draft of the final project report with all readily reproducible charts, tables, graphs, and appendices that are to be included in the final report. In addition, each recipient shall meet the requirements of § 570.906(c) concerning notice of the availability of the report for examination by the public with the exception that reports need only be available to be copied by the public.

(3) Final report. The report shall describe in appropriate detail the objectives of the project and how they were met, the methods and techniques that were used, the types of problems encountered during project execution and the methods used to resolve them and the conclusions and recommendations that are to be drawn from the demonstration project. The final report shall be in a form and manner prescribed by HUD.

(e) Records. Recipients must comply with the requirements of § 570.907, excluding 570.907(b). In lieu of this exception, recipients shall maintain records describing the process used to

provide an opportunity for citizens to comment on the application.

[41 FR 8612, Feb. 27, 1976, as amended at 41 FR 36650, Aug. 31, 1976; 42 FR 45768, Sept. 12, 1977; 43 FR 8473, Mar. 1, 1978]

§ 570.407 Federally recognized disasters.

(a) General. Grants under this section shall be for the purpose of meeting emergency community development needs caused by federally recognized disasters. For purposes of this section, "federally recognized disasters" means any hurricane, tornado, storm, flood, high-water, wind-driven water, tidal wave, tsunami, earthquake, volcanic eruption, landslide, mudslide, snowstorm, drought, fire, explosion, or other catastrophe in any part of the United States which (1) in the determination of the President, pursuant to the Disaster Relief Act of 1974 (49 U.S.C. 512n), (i) causes damage of sufficient severity and magnitude to warrant major disaster assistance under such Act, above and beyond emergency services by the Federal Government, to supplement the efforts and available resources of States, local governments and disaster relief organizations in alleviating the damage, loss, hardship, or suffering caused thereby, or (ii) requires Federal emergency assistance to supplement State and local effort to save lives and protect public health and safety or to avert or lessen the threat of a major disaster, or (2) in the determination of a Federal agency requires disaster or emergency assistance pursuant to the statutory authority of such Federal agency.

(b) Eligible applicants. Eligible applicants are States, and units of general local government as defined in § 570.3(v). For the purpose of this section, the second sentence in § 570.3(v) includes those entities described in § 570.403(b) (1), (2) and (3).

(c) Criteria for funding. Within the limits of available funds, applications will be funded on the basis of the following criteria:

(1) Severity and magnitude of the federally recognized disaster, with priority given to needs caused by Presidentially declared major disasters.

(2) Community development needs identified which are essential for the immediate restoration or maintenance of community health, safety, or economic stability and resources are not available from other sources to meet these community development needs in a timely fashion.

(d) Eligible activities. The activities eligible for assistance under this section are the same as those listed in Subpart C, but only to the extent that funds to meet emergency community development needs cannot be provided under the Disaster Relief Act of 1974 (see 24 CFR Part 2205 and HUD Handbook 3300.5 and 3300.6) or by other Federal programs. Applicants proposing activities which might be assisted by other Federal programs are encouraged to follow the procedures of $570.607. Section 570.607 procedures must be followed whenever public services or flood or drainage facilities are proposed.

(e) Application requirements. An application during any part of the fiscal year provided it is submitted to the appropriate HUD Area Office within 120 days after either the Presidential declaration or other Federal recognition that disaster or emergency assistance is required. Applications for grants under this section shall meet the application requirements of Subpart D with the following modifications:

(1) The community development plan summary required by § 570.304 and the Community Development Program required by § 570.305 shall specifically describe and identify the emergency community development needs caused by the disaster and the activities proposed to meet those needs.

(2) The Community Development Program shall indicate the applicant's priorities for funding.

(3) The housing assistance plan required by § 570.306(b) shall identify separately those housing conditions and needs directly related to the disaster or emergency.

(4) The applicant shall provide the certifications required by 8570.307 except for paragraphs (d) and (f).

(5) The applicant is exempt from the normal OMB Circular No. A-95 proc

ess. However, applicants are required to submit an information copy of their application to the appropriate State and areawide clearinghouses at the same time the application is submitted to HUD.

Applicants that are entitlement recipients may elect to submit an amendment to their approved application incorporating the information required by this paragraph.

[41 FR 8612, Feb. 27, 1976, as amended at 42 FR 45768, Sept. 12, 1977; 43 FR 8447, 8473, Mar. 1, 1978]

§ 570.408 Inequities funds.

(a) General. Funds are available under this subpart to correct in whole or in part inequities resulting from the allocation provisions of Section 106 of the Act.

(b) Eligible applicants. Eligible applicants are States, and units of general local government as defined in the first sentence of § 570.3(v).

(c) Criteria for selection. The Secretary shall make grants to eligible applicants, giving priority to the following:

(1) Funding under this subpart is necessary to correct a technical error in the computation of a locality's entitlement amount.

(2) Funding under this subpart is needed by an applicant, meeting the criteria as specified in § 570.401(b) for urgent needs funds.

(3) Funding under this subpart is necessary to compensate for the fact that the applicant's hold harmless amounts as calculated pursuant to § 570.103(c) is significantly lower than the average amount of funds approved by HUD for applicable programs in such governmental unit during the fiscal years immediately preceding and immediately following the base period of Fiscal Years 1968 through 1972, and the applicant is subject to the phase-in provisions of § 570.102(c).

(d) Application requirements. An application may be submitted at any time during the fiscal year. Applicants requesting funds under criterion (2) shall meet the application requirements of § 570.401(c). All other applicants shall meet all application requirements in § 570.303.

[41 FR 8612, Feb. 27, 1976, as amended at 42 FR 45769, Sept. 12, 1977]

§ 570.409 Reallocated funds.

(a) General. This section governs the reallocation of funds as required by the provisions of 8570.107 which become available from any of the following sources:

(1) Any amounts allocated to metropolitan cities, urban counties, or other units of general local government for basic grants or hold-harmless grants in metropolitan areas or nonmetropolitan areas which are not applied for, or which are disapproved by the Secretary as part of the application review or program monitoring process;

(2) Any other amounts allocated to inetropolitan areas or nonmetropolitan areas which the Secretary determines, on the basis of applications and other evidence available, are not likely to be fully obligated by the Secretary during the fiscal year for which the allocation has been made;

(3) Any amounts available as a result of a Secretarial adjustment of an annual grant under § 570.911;

(4) Any amount recovered under the provisions of § 570.913;

(5) Any amounts returned to HUD as a result of a termination of, withdrawal from, or failure to complete an approved Community Development Program; or

(6) Any amounts remaining after completion of all approved discretionary block grant activities.

The provisions of this section constitute the policies to be employed in the reallocation of funds in Fiscal Years 1976 and 1977.

Any

(b) Timing of reallocation. amounts available for reallocation will be reallocated as soon as practicable and in all cases within six months from the date they become available for reallocation.

(c) Eligible applicants. States and units of general local government, as defined in § 570.3(v), are eligible to apply for reallocated funds. For the purpose of this section, the second sentence in § 570.3(v) includes those entities described in § 570.403(b), (1), (2), and (3).

(d) Entitlement funds. Entitlement funds available for reallocation will be used primarily to make grants to eligible applicants with urgent needs, including those with entitlements as well as others with special needs arising from urban renewal closeout activities. The term "urgent needs" as used in this section means those urgent needs described in § 570.401(b).

(1) Priorities for reallocation of funds. (i) Metropolitan areas. Funds allocated to metropolitan areas will be reallocated in accordance with the following priorities:

(A) To the same metropolitan area for urgent needs grants;

(B) If reallocated funds are available after meeting the urgent needs in that metropolitan area, to other metropolitan areas in the same State for urgent needs grants;

(C) If reallocated funds are available after meeting the urgent needs in all metropolitan areas in that State, to the same metropolitan area or other metropolitan areas in the same State for use in accordance with the provisions of Subpart F; and

(D) If reallocated funds are available after meeting the preceding priorities, to metropolitan areas in other States for urgent needs grants;

(ii) Nonmetropolitan areas. Funds allocated to nonmetropolitan areas will be reallocated in accordance with the following priorities:

(A) To the nonmetropolitan area in the same State for urgent needs grants;

(B) If reallocated funds are available after meeting the urgent needs in the nonmetropolitan area in that State, to the nonmetropolitan area in the same State for use in accordance with the provisions of Subpart F; and

(C) If reallocated funds are available after meeting the preceding priorities, to nonmetropolitan areas in other States for urgent needs grants.

(iii) Additional considerations. In determining to which metropolitan area or areas funds shall be reallocated under paragraph (i)(B), and to which State or States funds shall be reallocated under paragraphs (i)(D), and (ii)(C), the Secretary shall give priority consideration to the metro

politan areas or States where the greatest unmet urgent needs exist.

(2) Application requirements. Applications for urgent needs grants shall meet the application requirements of § 570.401 (c). All other preapplications and applications shall meet the requirements of Subpart F.

(e) General purpose funds for metropolitan and nonmetropolitan areas. General purpose funds for metropolitan and nonmetropolitan areas available for reallocation will be reallocated for use in accordance with Subpart F. (1) Priorities for reallocation. (i) Metropolitan areas.

(A) If the amount to be reallocated is more than $50,000, the Secretary will reallocate such funds, first, to the same metropolitan area, second, to any other metropolitan area in the same State, and third, to any metropolitan area in other States, for the purpose of making grants to cities, urban counties, and those eligible applicants described in § 570.420(c). The Secretary will invite preapplications from eligible applicants in order to provide an opportunity for such applicants to apply for funds reallocated under the preceding sentence.

(B) If the amount to be reallocated does not exceed $50,000, the Secretary will reallocate such funds, first, to any metropolitan area in the same State, and second, to any metropolitan area in other States, for the purpose of making grants to those eligible applicants described in § 570.420(c).

(ii) Nonmetropolitan areas. The Secretary will reallocate funds, first, to the nonmetropolitan area in the same State, and second, to nonmetropolitan areas in other States.

(iii) Additional considerations. In determining to which metropolitan areas or States such funds will be reallocated, the Secretary shall give primary consideration to the demand for such funds as represented by preapplications or applications filed with HUD.

(2) Application requirements. Preapplications and full applications shall meet the requirements of Subpart F. [41 FR 21750, May 27, 1976, as amended at 43 FR 8490, Mar. 1, 1978]

Subpart F-Small Cities Program

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 8482, Mar. 1, 1978, unless otherwise noted.

§ 570.420 General.

(a) Scope and applicability. This Subpart describes the policies and procedures that will be used to implement the Small Cities Program. Funds for this program are those provided through the metropolitan and nonmetropolitan balances described in § 570.104(c) in Subpart B of this part. Except as modified in this Subpart, the policies and procedures set forth in Subparts A, B, C, J, K, and O of this part, as well as those sections of Subpart D of this part which are specifically cited in this Subpart shall apply to the Small Cities Program. The HUD Environmental Review Procedures contained in 24 CFR Part 58 also apply to this Subpart.

(b) Program objectives. The Small Cities Program will provide grants to States and units of general local government in both metropolitan and nonmetropolitan areas to undertake the same community development activities as may be funded in the entitlement grant program. The Small Cities Program, however, is competitive in nature and the demand for funds far exceeds the amount available. Therefore, eligible applicants selected for funding will be those communities having the greatest need as evidenced by poverty and substandard housing and whose applications must adequately address locally determined needs of low- and moderate-income persons, consistent with one or more of the following purposes.

(1) Support realistic and attainable strategies for expanding low- and moderate-income housing opportunities; (2) Promote deconcentration lower-income housing;

of

(3) Promote more rational land use;