CHAPTER 1. SELECTION AND TREATMENT OF PROJECT AREAS

The LPA shall use the criteria stated below in selecting a project

area.

CRITERIA FOR PROJECT AREAS

(1) The areas must qualify under the eligibility criteria in Part 3. Any sizable area within the perimeter boundaries which cannot be justified for inclusion under the "Distribution of Deficiencies" test in Chapter 3-1 must be excluded from the project area. No incidental properties within the perimeter boundaries -whether separate properties or small groups of propertiesshall be excluded.

(2) The area must be of a reasonable size, so that the urban renewal projects can be planned and carried out expeditiously.

(3) The area must be so located, and its boundary delineated in such a manner, as to provide reasonable protection after renewal through one or more of the following:

(a) Constituting a stable area in itself.

(b) Reflecting a beneficial influence from abutting private development, public uses or improvements, or other urban renewal projects or activities.

(c) Being part of a larger area for which a General Neighborhood Renewal Plan has been or is being prepared.

(4) Boundaries of the area must be determined without consideration of the race, creed, color, or national origin of the residents. (5) If the area is or may be subject to flooding, a feasible tentative solution to this problem must be presented with the Survey and Planning Application, and a firm solution, meeting the conditions set forth in Section 10-2-1, must be presented with Part I of the Application for Loan and Grant (see Chapter 11-2).

Minority Group Considerations

The LPA shall assure that the project will not result in a reduction of the supply of dwellings available in the community to minority group families. This requirement is in recognition of the generally limited supply of housing available to these families.

A project which will result in a substantial net reduction in the supply of housing in the project area available to minority group families may be undertaken only if the following conditions are met:

(1) Standard housing replacing the loss is provided elsewhere in the community in new or existing dwelling units not previously available to the minority group.

(2) The LPA has afforded representative leadership of the minority group adequate opportunity for consultation during the planning stage. Representative leadership of the minority group means persons accepted as such by the minority community itself, such as persons holding office in civic or other responsible organizations of minority citizens.

Coordination With Major Highway Programs

The selection of the urban renewal project area must be checked with plans for State or federally aided highways to assure that conflicts do not develop in (1) the establishment of project boundaries, or (2) the planning and execution of the project. Information may be obtained from the local planning agency, the State Highway Commission, or the Federal Bureau of Public Roads Division Office in the State.

If the location of a highway which may materially affect the planning of a project area has not been determined, it may be necessary to delay HHFA consideration of the Survey and Planning Application until a firm basis for coordinated planning activities has been established.

CRITERIA FOR TREATMENT OF AREAS

The condition and character of the area must be such that the contemplated treatment-clearance and redevelopment or rehabilitation and conservation-will be appropriate under the citeria set forth below and in Section 12-1-2.

Clearance and Redevelopment

The necessity for clearance and redevelopment of a project area, or of any sizable part thereof, must be satisfactorily demonstrated in all cases. If conditions warranting clearance and redevelopment do not exist, the appropriate treatment will be rehabilitation and conservation, which may include spot clearance.

In a built-up project area or sizable part thereof which is proposed for clearance and redevelopment, one of the following conditions must exist:

(1) More than 50 percent of the buildings, not including accessory outbuildings, must be structurally substandard to a degree requiring clearance as determined by specific criteria consistent with the definition set forth below.

(2) More than 20 percent of the buildings must be structurally substandard to a degree requiring clearance, and additional clearance, in an amount bringing the total to more than 50 percent of the buildings, must be warranted to effectively remove existing blighting influences such as:

(a) Inadequate street layout.

(b) Incompatible uses or land use relationships.

(c) Overcrowding of buildings on the land.

(d) Excessive dwelling unit density.

(e) Obsolete buildings not suitable for improvement or conversion.

(f) Other identified hazards to health and safety and to the general well-being of the community.

Buildings classified as "structurally substandard to a degree requiring clearance" must contain defects in structural elements and/or a combination of deficiencies in essential utilities and facilities, light and ventilation, fire protection (including adequate egress), layout and condition of interior partitions, or similar factors, which defects and/or deficiencies are of sufficient total significance to justify clearance. Additional buildings warranting clearance in order to remove blighting influences shall be classified and reported separately in Block F of Form H-6120, Summary of Project Data (Section 10-4-2, Exhibit A). The LPA must (1) demonstrate the necessity for treatment through clearance and redevelopment, (2) show that the extent of clearance proposed is necessary, and (3) fully justify the acquisition of individual parcels of basically sound property which involves high acquisition costs.

Conservation

See Section 12-1-2 for criteria for designation of a conservation area. Treatment through rehabilitation and conservation may include spot clearance to remove blighting influences and buildings infeasible of rehabilitation, or clearance to provide land for public improvements or facilities which are necessary to achieve the objectives of the Urban Renewal Plan.

Extent of Clearance

In connection with either type of treatment-clearance and redevelopment or conservation-the LPA must demonstrate that:

(1) The extent of clearance proposed is necessary.

(2) In the development of the Urban Renewal Plan, full consideration has been given to proposals which would result in retention of a greater number of buildings which are structurally sound or capable of rehabilitation.

HHFA will not concur in the acquisition for demolition of property that is:

(1) Of such quality and potential use that its retention is compatible with the achievement of the Urban Renewal Plan objectives for the project area.

(2) Capable of being improved and successfully integrated into the project.