(a) The Community Facilities Administration, headed by the Community Facilities Commissioner, was established as a constituent unit of the Housing and Home Finance Agency by the Housing and Home Finance Administrator's Organizational Order No. 1 of December 23, 1954 (19 F.R. 9320, December 29, 1954). There are administered through the Community Facilities Administration the following active operating programs: Loans to public or private nonprofit educational institutions of higher learning, including hospitals operating a school of nursing or approved for internships, for the construction of housing and other educational facilities for students and faculties, under title IV of the Housing Act of 1950, as amended (12 U.S.C. 1749); public facility loans to State and local public agencies to finance specific public projects, under title II of the Housing Amendments of 1955 (42 U.S.C. 1491); advances to public agencies to aid in financing the planning of public works, under section 702 of the Housing Act of 1954, as amended by section 112 of the Housing Amendments of 1955 (40 U.S.C. 462); and, under agreement with the Commissioner of Education, supervision of construction of school facilities for which Federal aid is provided through the U.S. Office of Education under Public Law 815, 81st Cong., as amended (20 U.S.C. 631).

(b) The Community Facilities Administration is also responsible for management and liquidation of the following programs: Loans and grants for construction of defense community facilities

under title III of Defense Housing and Community Facilities and Services Act of 1951, as amended (42 U.S.C. 1592); prefabricated housing loans under Reorganization Plan No. 23 of 1950 (5 U.S.C. 133z-15 note) and section 4 of Reconstruction Finance Corporation Act, as amended (15 U.S.C. 604), and sections 102 and 102a of Housing Act of 1948, as amended (12 U.S.C. 1701g, 1701g-1); first and second advance planning under Reorganization Plan No. 17 of 1950 (5 U.S.C. 133z-15 note) and Title V of War Mobilization and Reconversion Act of 1944 (50 U.S.C. App. 1671 note) and Public Law 352, 81st Cong. (40 U.S.C. 451); war public works under Reorganization Plan No. 17 of 1950 (5 U.S.C. 133z15 note) and title II of Lanham Act, as amended (42 U.S.C. 1531); Alaska housing loans under Alaska Housing Act, as amended (48 U.S.C. 484); and public agency loans (RFC) under Reorganization Plan No. 1 of 1957 (5 U.S.C. 133z-15 note).

The general course and method by which functions administered through the Community Facilities Administration on behalf of the Housing and Home Finance Administrator are channeled and determined are as follows: The prescribed forms for application for assistance under the active operating programs listed above are obtained from and filed with the Regional Office of the Housing and Home Finance Agency serving the area in which the applicant is located.

Upon approval of an application by either the Regional Administrator or Community Facilities Commissioner, as appropriate, an agreement between the Government and the applicant is executed. Further information concerning operations may be obtained from the appropriate Regional Office of the Housing and Home Finance Agency or from the Community Facilities Commissioner, Office of the Administrator, Housing and Home Finance Agency, 1626 K Street NW., Washington 25, D.C.

Purpose.

Definitions.

Repayment of advance.

Advance repayable in full.

702.34 Proportionate repayment of advance. Advance not presently repayable.

702.35

702.36 Termination of liability. 702.37 Termination of agreement.

702.38 Termination of liability as result of Accelerated Public Works grant.

Subpart A Advances for Public
Works Planning (First Program)

AUTHORITY: The provisions of this Subpart A issued under sec. 501, 58 Stat. 791; 50 U.S.C. App. 1671, Reorg. Plan No. 17 of 1950, 15 F.R. 3177; 3 CFR, 1950 Supp.

SOURCE: The provisions of this Subpart A appear 11 F.R. 609, Jan. 15, 1946. Redesignated at 13 F.R. 7356, Dec. 2, 1948 as amended at 15 F.R. 1346, Mar. 14, 1950; 16 F.R. 5022, May 29, 1951; 30 F.R. 5511, Apr. 17, 1965, unless otherwise noted.

§ 702.1 Definitions.

For the purpose of this subpart, the following terms shall be construed, respectively, to mean:

(a) Act. Title V of the act of Congress of October 3, 1944, entitled the "War Mobilization and Reconversion Act of 1944" (58 Stat. 791; 50 U.S.C. App., 1671) which provides for assistance to States and other non-Federal public agencies in the plan preparation of their proposed public works. The authority to make new loans or advances expired on June 30, 1947, under the provisions of

section 603 of the War Mobilization and Reconversion Act of 1944, 58 Stat. 792.

(b) Administrator. The Housing and Home Finance Administrator, Housing and Home Finance Agency.

(c) Administration. The Community Facilities Administration, an organization unit within the Office of the Administrator. Housing and Home Finance Agency, which is authorized to administer the act.

(d) Commissioner. The Community Facilities Commissioner, Community Facilities Administration, Office of the Administrator, Housing and Home Finance Agency.

(e) State. Any one of the several States of the United States, the District of Columbia, Alaska, Hawaii, or Puerto Rico.

(f) Public agencies. The States and their agencies and political subdivisions established by law and which have basic authority to construct public works.

(g) Applicant. Any public agency which makes application for Federal Assistance under the act and this subpart.

(h) Application. The document or documents, including amendments and communications, filed with the Administration by the applicant for an advance of funds for plan preparation.

(i) Plan preparation. Architectural engineering, and economic investigations and studies, surveys, designs, plans, working drawings, specifications, estimates of costs, procedures and other planning activities in advance of the construction of specific public works.

(j) Advances. The Federal funds advanced under the authority of the act and this subpart to any public agency to aid in financing the cost of plan preparation.

(k) Agreement. The document executed by the applicant and the Administration covering the terms and conditions of an advance and the repayment thereof.

[11 F.R. 609, Jan. 15, 1946, as amended at 20 F.R. 9343, Dec. 14, 1955; 30 F.R. 5511, Apr. 17, 1965]

can be placed under construction with a minimum of delay as circumstances warrant.

§ 702.3 Advances.

(a) The act authorizes assistance in the form of loans or advances of Federal funds, but in order to simplify the administration of the act this subpart limits assistance to advances.

(b) The making of an advance does not in any way commit the Congress of the United States to appropriate funds to undertake any public works planned with the proceeds of such advance.

(c) The applicant in accepting an advance for plan preparation agrees that it will not accept any loan froin any Federal agency for the construction of the public work planned in whole or in part with such advance unless the making of such construction loan shall be specifically authorized by Federal law.

(d) An advance shall not be required to be repaid until the construction of the public work for which the advance is made is undertaken or started as provided in § 702.12. Until such construction is undertaken or started the advance shall not be deemed by the United States to be a debt or obligation within the meaning of any constitutional or statutory limitation.

(e) No interest charge shall be made for any advance.

(f) Advances shall not be approved to reimburse the applicant for any disbursement made or to defray any costs incurred prior to the approval of an application. Funds advanced shall not be used to defray the cost of any contract entered into by the public agency prior to the approval of the application for an advance if in such contract the public agency has agreed to finance the plan preparation from other funds.

(g) Funds advanced shall not be used for the acquisition of land or any interest in land.

[11 F.R. 609, Jan. 15, 1946, as amended at 30 F.R. 5511, Apr. 17, 1965]

§ 702.4 Apportionment of funds.

Funds appropriated for the making of advances under the act shall be apportioned among the several States in the following manner:

(a) Ninety percent in the proportion which the population of each State bears to the total population of all the

States, as shown by the Federal census of 1940;

(b) States whose apportionments do not total one-half of 1 percent of the total amount appropriated for advances after the above distribution shall have their apportionments increased to that percentage from the 10 percent available for discretionary use; and

(c) The balance of the funds as may be determined by the Commissioner with the approval of the Administrator. § 702.5

Submission of applications.

Applications for advances for plan preparation shall be submitted to the Regional Offices of the Office of the Administrator, Housing and Home Finance Agency.

§ 702.6 Types of public works.

(a) Applications for advances for the plan preparation of the following types of public works of States and other nonFederal public agencies are eligible under the provisions of the act:

(1) Highways, roads and streets, for which other Federal funds are not legally available, which shall consist of highways, roads, and urban streets, including such items as culverts, drainage facilities, sidewalks, curbs and gutters, guard rails and guard walls, road and street lighting, traffic control facilities, roadside landscaping, and other similar work.

(2) Bridges, viaducts and grade separations, for which other Federal funds are not legally available, which shall consist of bridges, viaducts, grade separation structures, grade crossing eliminations, tunnels, and other similar work.

(3) Airports, for which other Federal funds are not legally available, which shall consist of all types of public airport buildings and landing facilities, including such items as terminal buildings, hangars, administration buildings, grading, leveling and seeding of land fields, construction of runways, taxi strips, aprons, landing platforms, seaplane ramps, drainage facilities, lighting facilities, airway markers and beacons, and other airport and airway facilities.

(4) Sewer, water, and sanitation facilities, which shall consist of sewer systems, including such items as sewage treatment and disposal plants, sanitary sewers, storm sewers, and drainage systems; water systems, including such items as water supply and storage, water treatment plants, pumping stations,

99-196 O-69-6

water distribution and irrigation systems; and sanitary facilities such as incinerator plants, malarial control facilities, and other similar work.

(5) Schools and other educational facilities, which shall consist of public school facilities such as school buildings, administration buildings, auditoriums, gymnasiums, and dormitories; public libraries; and other educational facilities.

(6) Hospitals and health facilities, which shall consist of public hospitals, nurses' homes, clinics, health centers and laboratories, sanitariums and other

health facilities.

(7) Other public buildings, which shall consist of city halls, courthouses, institutional buildings, administrative buildings, police and fire stations, armories, garages, storage buildings, community buildings, and other public buildings not included under subparagraphs (3), (5), (6), (8) and (9) of this paragraph.

(8) Parks and other recreational faclities, which shall consist of public parks, playgrounds, fairgrounds, and other recreational facilities, not included under subparagraph (5) of this paragraph, including such items as recreation centers, gymnasiums, athletic fields, swimming pools, tennis courts, and other such recreational facilities.

(9) Miscellaneous public facilities, which shall consist of other types of public facilities such as transportation facilities, port facilities, electric power plants, and distribution systems, public docks, wharves and piers, non-Federal river and harbor improvements, and other miscellaneous public facilities.

(b) The following types of public works are not eligible for assistance under the provisions of the act:

(1) Public housing projects of Federal, State or local housing agencies or authorities.

(2) Federal projects of Federal departments, agencies, and instrumentalities.

(3) Federal-aid and State highway projects of the Federal Public Roads Administration and the State Highway Departments.

(a) An agreement between the applicant and the Service shall be executed for each advance on a form furnished by the Service. No payment on any advance shall be made by the United States unless and until such agreement has been executed.

(b) Subsequent to execution of the advance agreement, no change shall be made which will increase the amount of the advance of the Federal Government or alter its terms or conditions except upon agreement with the Service.

§ 702.10 Plan preparation.

(a) The applicant shall be responsible for the character, adequacy, and method of plan preparation, in accordance with acceptable professional practices, and upon the receipt of the initial payment shall take prompt steps to initiate and prosecute the plan preparation completion.

to

(b) The applicant agrees that it will use the funds advanced only for the plan preparation for the public work for which the advance is made and that such plan preparation will be adequate and suitable for the purpose intended to be served by the advance.

(c) If the plan preparation is performed on a contractual basis, State or local regulations affecting employment within the professions involved shall be observed.

(d) If the applicant uses its own employees for the plan preparation, only those costs incurred by the applicant for the plan preparation which would not have been incurred except for such plan preparation shall be paid with the funds advanced.