Page images

workable program for community improvement and the structures to be de. molished must constitute a serious bazard to the public health or welfare, (b) the demolition must be on a planned neighborhood basis and further the overall renewal objectives of the locality, (c) & program of enforcement of existing local housing and related codes must be currently underway in the locality, and (d) the governing body of the municipality must determine that other avall. able legal procedures to secure remedial action by the owners of the structures involved have been exhausted and that demolition by governmental action is required. The locality will be obligated to assure that any individuals or families displaced as a result of the federally Assisted demolition are offered decent, safe, and sanitary housing. Relocation payments must be made available on the same basis as in urban renewal project activities. The policies and procedures applicable to the demolition program are set forth in the Demolition Grant Handbook, RHA 7300. Cities, other municipalities, and counties seeking financial assistance under this program may obtain information and forms from the Regional Office which serves the locality seeking assistance. 8 500.6 Rehabilitation grants.

The Secretary may authorize a local public agency to makeg rants (and an urban renewal or code enforcement project, or neighborhood development program may include the making of such grants) to individuals and families owning and occupying real property which is in urban renewal areas, areas certified by the locality to contain a substantial number of structures in need of repairs and Improvements, or areas of concentrated code enforcement, or real property which is determined to be uninsurable because of physical hazards after an inspection pursuant to a statewide insurance plan approved by the Secretary under title XII of the National Housing Act. Such grants are to cover the cost of repairs and improvements necessary to make such real property conform to public standards for decent, safe, and sanitary housing as required by applicable codes and other requirements of the urban renewal plan for the area. For an in

dividual whose annual income does not exceed $3,000, a grant is limited to the lesser of $3,000 or the actual cost of the repairs and improvements involved. Where the annual income of the individual or family exceeds $3,000, the amount of the grant is further limited to an amount not exceeding that portion of the cost of repairs and improvements which cannot be paid for with any available loan that can be amortized as part of the applicant's monthly housing expense without requiring that expense to exceed 25 percent of the applicant's monthly income. Local public bodies may include requests for rehabilitation grant assistance in their applications for assistance for an urban renewal or code enforcement project, neighborhood development program or certified area project. Individuals eligible for financial assistance under this program may request and Alle Form HUD_6260 with the local public body authorized to carry out the project or program involved. $ 500.7 Interim assistance grants.

(a) The Secretary is authorized to make grants not exceeding two-thirds (or three-fourths in the case of a locality having a population of 50,000 or less) for a program of interim assistance in the alleviation of harmful conditions in slum or blighted areas which are planned for substantial clearance, rehabilitation or Federally assisted code enforcement in the near future. This program may include: (1) The repair of streets, sidewalks, parks, playgrounds, publicly owned utilities, and public buildings to meet needs consistent with the shortterm continued use of the area prior to the undertaking of contemplated clearance or upgrading activities, (2) the improvement of private properties to the extent needed to eliminate the most immediate dangers to public health and safety, (3) the demolition of structures determined to be structurally unsound or unfit for human habitation and which constitute a public nuisance and serious hazard to the public health and safety, (4) the establishment of temporary public playgrounds on vacant land within the area, and (5) the improvement of garbage and trash collection, street cleaning and similar activities.

(b) To be eligible for interim assistance; (1) the locality must have & cur

for use in the HUD Information Center, 451 Seventh Street SW., Washington, D.C. 20410, and in the information centers of the various HUD Regional Ofices.

(c) Also available in each of the information centers are: (1) Comi ity Renewal Program Handbook, (2) Code Enforcement Grant Handbook, (3) Demolition Grant Handbook, and (4) Neighborhood Development Program Handbook.

rently certified workable program for community improvement, and (2) the locality must make a showing that there is & feasible method for the temporary relocation of the individuals and familes displaced due to activities under an interim assistance program and must assure the Secretary that there are, or are being provided, suficient units of decent, safe, and sanitary relocation housing in comparable areas at reasonable rents. $ 500.8 Community renewal programs.

(a) The Secretary is authorized to make grants not exceeding two-thirds of the total cost of preparing a community renewal program including: (1) Identification of blighted or deteriorating areas in the community, (2) measurement of the nature and degree of blight and blighting factors in the areas, (3) determination of the financial, relocation and other resources needed to renew the areas, (4) identification of potential project areas and types of urban renewal action contemplated, and (5) scheduling of urban renewal activities.

(b) Application for financial assistance under this program may be made by a local public body authorized to perform the necessary planning work on Form HUD-6400, Application for Community Renewal Program Grant. The policies and procedures applicable to community renewal programs are set forth in the Community Renewal Program Handbook, RHA 7230. 8 500.9 Applications; information.

(a) A local public agency (or a city, other municipality, or county in the case of a code enforcement, demolition grant, or interim assistance program) applying for financial assistance should submit its application and all related documents to the Regional Administrator in the appropriate HUD Regional Office. Application forms and other forms, procedures, policy statements, and materials issued by HUD for the use or guidance of local public agencies may be obtained through such ofices.

(b) The Urban Renewal Handbook, which sets out policies and requirements for local public agencies, may be purchased from the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402 and is available



LECTION SYSTEM Sec. 511.1 Scope. 611.2 Definitions, 511.4 Program prerequisites. 811.6 Criteria for evaluating applications. 611.8 Local effort and coordination. 611.10 Impact of area selected. 611.12 Program management capacity. 611.14 Local equal employment and ontre

preneurial effort. 811.16 Local need. 611.18 Commitment of local, county, State,

and Federal entities to project or

program. $11.20 Expansion of housing for low- and

moderate-income families. 511.22 Community development.

AUTHORITY: The provisions of this part 611 Issued under secs. 131-134, of the Housing Act of 1949, as amended, 82 Stat. 518-520; 42 U.S.C. 1469-1469c.

SOURCE: The provisions of this part 511 appear at 37 F.R. 7388, Apr. 14, 1972, unless otherwise noted. $ 511.1 Scope.

(a) Purpose. This part sets forth criteria and procedures to be used in preliminary evaluation of applications for Federal loan and grant assistance to local public bodies and agencies for Neighborhood Development Programs, which are urban renewal undertakings and activities, in one or more urban renewal areas, that are planned and carried out on the basis of annual increments.

(b) Procedures. Submissions will first be reviewed against six prerequisites. If any of these prerequisites are not met, the application will be rejected. If the application appears to meet the prerequisites, it will be evaluated against the


point rated criteria and assigned a point rating. Then, depending upon the relative rating of the application among other such applications pending in the area office, the applicant may be asked to submit further application material, with supporting documentation so that a final decision on the grant may be reached. Such application material is subject to reviews to determine compliance of the application with basic eligibility and technical requirements. If an application does not receive a high enough point rating to qualify for funding as compared to other pending applications, or if the application cannot meet basic eligibility or technical requirements, the application and any supporting documents will be returned to the applicant with advice as to the areas of deficiency. Remedial action regarding the deficiencies must be undertaken before the proposal may be reconsidered. The provisions of these 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. 8 511.2 Definitions.

As used in the regulations in this part:

(a) “Applicant" means a local public agency as defined under sec. 110(h) of the Housing Act of 1949; 63 Stat. 413, 421; 42 U.S.C. 1460(h), which is applying for Federal Assistance under the Neighborhood Development Program.

(b) "City Demonstration Agency" means that agency which was required to be established under title I of the Demonstration Cities and Metropolitan Development Act of 1966, 80 Stat. 1255, 42 U.S.C. 3301, to carry out a Model Cities program at the local level. (c) “Locality"

the political jurisdiction or jurisdictions having general purpose government powers upon whose behalf the application for Federal assistance has been submitted.

(d) “Low and moderate income" means an income level which is less than the maximum income eligibility level for a family of four under either of the subsidized housing programs authorized by section 235 or 236 of the National Hous

ing Act, as amended, 82 Stat. 476, 477, 498, 12 U.S.C. 17152, 17152-1.

(e) “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 moderateincome housing" also refers to housing with an annual rental equal to or less than one-third of such section 235–236 maximum income.

(f) “Model neighborhood" means that geographical area in which funds are being spent under a program authorized by title I of the Demonstration Cities and Metropolitan Development Act of 1966, 80 Stat. 1255, 42 U.S.C. 3301.

(g) "NDP area" means the area or areas in which urban renewal project activities are taking place or are to take place under a neighborhood development program.

(h) “Renewal experience” means those renewal efforts and related relocation activities carried out under one or more urban renewal projects under sec. 110(c) of the Housing Act of 1949, as amended, 63 Stat. 413, 414; 42 U.S.C. 1450; or a Neighborhood Development Program as described in sections 131-134 of said Housing Act. $ 511.4 Program prerequisites.

For the Neighborhood Development Program there are the following six prerequisites:

(a) Workable program. The presence of a certified or certifiable Workable Program pursuant to section 101(c) of the Housing Act of 1949, as amended, Public Law 81-171, 63 Stat. 413; U.S.C. 1451c. By "certifiable workable program” is meant a reasonable probability of certification or recertification based upon submitted materials and local progress towards meeting certification standards and conditions as indicated in HUD's Handbook for the Workable Program, RHA 7100.

(b) Local general plan. The presence of a local general plan, and conformance of the project thereto. A "local general plan" is defined as an oficial document or documents containing a land use plan, thoroughfare plan, community facilities plan, public improvement program, zoning ordinance and map, and subdivision regulations so interrelated that taken


[ocr errors][merged small]

together they serve as a comprehensive guide for the physical development of the locality as a whole. The plan must have been endorsed or adopted by the local governing body of the locality in which the NDP is proposed.

(c) Civil rights. Submission of acceptable assurances of compliance with title VI of the Civil Rights Act of 1964, Public Law 88-352, 78 Stat. 252, 42 U.S.C. 2000d and HUD title VI regulations 24 CFR Part I, 29 F.R. 16280 and with affirmative action plan requirements pursuant to Executive Order 11246, as amended, 30 F.R. 12319, and HUD regulations 24 CFR Part 130, 36 F.R. 20688.

(d) Relocation requirements (if applicable). (1) Submission of acceptable assurance of compliance with the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, 84 Stat. 1894, 42 U.S.C. 4601, and;

(2) Absence of any known impediment to the applicant's ability to meet HUD relocation requirements and the applicant's and/or locality's ability to fulfill requirements for replacement housing. “Known impediment” refers to a practical inability to provide adequate relocation assistance and replacement housing, or a legal inability to comply with relocation-related provisions of Title I of the Housing Act of 1949, 63 Stat. 413, 414; 42 U.S.C. 1450, et seq.

(e) A-95 coordination. Evidence that A-95 coordination is in process. The phrase "A-95 coordination” refers to the procedure involving review of applications by the appropriate agency designated under OMB Circular A-95.

(f) Housing component. Absence of any known barrier to an adequate or better rating on the Housing Production and Mortgage Credit Project Selection System (37 F.R. 203-9, January 7, 1972) for any subsidized housing required to meet the housing component for the program. & 511.6 Criteria for evaluating applica

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

(a) Local effort and coordination;
(b) Impact of area selected;
(c) Program management capacity;

(d) Local equal employment and entrepreneurial effort;

(e) Local need;

(f) Commitment of local, county, State, and Federal entities to project or program;

(g) Expansion of housing for low- and moderate-income families;

(h) 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 applies specifically to the project application under consideration, the application is awarded the number of points assigned to that statement. If no statemen: applies, no points are awarded to the application for that element. $ 511.8 Local effort and coordination.

(The value of this category is the sum of the values of paragraphs (a) and (b) of this section.)

(a) Budget and capital improvement plan. All necessary project related public improvements, facilities, and services are identified in the appropriate local budgets and/or capital improvements plan, except those included in project costs

5 (b) Model cities. The NDP area is in whole or in part a Model Neighborhood, and there exists a statement by the City Demonstration Agency Director that the activities for which funding is requested are consistent with the goals and objectives of the Model Neighborhood plan

5 $ 511.10 Impuct of area selected.

(The value of this category is the sum of the values of paragraphs (a) to (d) of this section.)

(a) Rehabilitation or addition of housing. Seventy-five percent of the existing substandard residential units in the NDP area will be rehabilitated, and 75 percent of the total units will be retained, or the project will add to the housing stock without displacement.-

7 "Substandard residential units" refer to those residential units which are out of compliance with the appropriate local housing and building codes.

(b) Redevelopinent areas. The NDP area is in a designated redevelopment area as defined by the Public Works and Economic Development Act of 1965, as amended Public Law 89–136, 79 Stat. 552, 42 U.S.C. 3121, and the program shows evidence of conformance to the Overall Economic Development Plan for that area

4 (c) Environmental deficiencies. The locality is taking active steps (including those proposed under the NDP) to eliminate environmental deficiencies in the NDP area, including but not limited to any among those listed below --- 4

(1) Overcrowding of land.
(2) Substantial substandard housing.
(3) Lack of open space.

(4) Transportation (including parking) deficiencies.

(5) Inadequate public facilities, including those for water, sewage, and solid waste.

(6) Incompatible land uses.
(7) Incompatible types of building uses.
(8) Underutilized land.--
(9) Inadequato air and water quality.

(d) Expansion of low- and moderateincome housing. The program contributes to the realistic plan referred to in 8 511.20(c)

4 § 511.12 Program management capac

ity. (The value of this category is the sum of the values of either paragraphs (a) or (b) of this section. For purposes of this section, 4 points equals good, 8 points equals superior.)

(a) Locality that has had previous renewal experience. (The value of this element is the sum of subparagraphs (1) and (2) of this paragraph.)

(1) There is consistency between past project(s) results and relevant project objectives, including, where displacement was involved, the effective carrying out of relocation activities. ----- 4 or 8

(2) Since July 1, 1968, there has been a reasonable relationship between past initial cost and time commitments and actual cost and development time. 4 or 8

(b) Locality that is without previous renewal experience. (The value of this element is the sum of subparagraphs (1), (2), and (3) of this paragraph.)

(1) The applicant is organizationally part of a local general purpose government

4 (2) There is a likelihood of successful execution and completion of the proposed NDP, based on the relationship to the proposed NDP activities of the following factors:

(1) Administrative budget.
(11) Time phasing for critical events.

(41) Staff assignments.

(iv) Budgeted activities of other local agencies

4 or 8 (3) Either the locality's performance with other HUD programs in the last 3 years was satisfactory in all programs,

or For localities without other HUD program experience, the locality's performance in its public development efforts during the last 3 years was satisfactory

4 $ 511.14 Local equal employment and

entrepreneurial effort. (The value of this category is the sum of the values of paragraphs (a), (b), and (c) of this section.)

(a) Activities undertaken by the locality have provided relatively superior opportunities for training and/or employment of minority persons..

3 (b) Activities undertaken by the locality have provided relatively superior opportunities for business concerns owned, controlled, or managed in substantial part by minority persons.-

3 (c) The applicant has taken afirmative action in its own employment in the training and/or employment of minority persons with relatively superior results

4 In determining whether or not performance has been "relatively superior” the following items will be taken into consid. eration: Absolute numbers of persons actually trained or hired in relation to numbers of minority group persons in the labor market area; total dollar value of contracts let to minority entrepreneurs in relation to total dollar amount of contracts let by locality; within the administering agency, racial composition at all levels of employment and absolute number of training opportunities made available to minority group persons. § 511.16 Local need.

(The value of this category is the sum of the values of paragraphs (a) and (b) of this section.)

(a) Median income of jurisdiction. The median annual family income of the geographic area of jurisdiction of the applicant compared to the State median annual family income is: (Select one, if appropriate):

(1) $1-$500 below State median.--- 3

(2) More than $500 below State median


« PreviousContinue »