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(b) Median income of NDP area. The median annual family income of the NDP area compared to the State annual median family income is: (Select one 1 appropriate):

(1) $1-$500 below State median --- 4

(2) More than $500 below State median

8 Median family incomes for the NDP area and the State are to be obtained by utilizing the City-County Data Book or other census data if possible. Or use best available data. $ 511.18 Commitment of local, county,

State, and Federal entities to project

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

(a) Local commitment. There was substantial participation by the chief executive and governing body of the locality during the planning of the project, and they are demonstrating current public commitment in support of the project

4 (b) Resident commitment. There was effective widespread participation of a representative spectrum of NDP area residents in the development of project objectives and there is evidence of current support for the execution of the project

4 (c) Coordination of resources. There was substantial participation of other local agencies during planning, and there is a current commitment including resources, from Federal, State, county, or local entities other than those necessary to satisfy the local share requirement

4 (d) Participation in areawide or metropolitan planning. There 18 active participation by the locality's representatives in the area wide or metropolitan planning organization...


8 511.20 Expansion of housing for low

and moderate-income families. (The value of this category is the sum of the values of paragraphs (a), (b), and (c) of this section.)

(a) Expansion of low- and moderateincome housing (applicant). Within the applicant's geographic area of jurisdiction, there has been significant expansion of the supply of standard housing for low- and moderate-income families in a nondiscriminatory way.

3 (b) Expansion of low- and moderateincome housing (locality). Within the locality in which the project is located there has been significant expansion of the supply of standard housing for lowand moderate-income families in a nondiscriminatory way--

3 (c) Dispersion of low- and moderateincome housing. The locality has a realistic plan to expand the supply of standard low- and moderate-income housing in a nondiscriminatory way outside areas of concentration of economically disadvantaged or minority citizens.---- 4 8 511.22 Community development.

The degree to which the project is necessary for undertaking other publicly supported community development activities.-

0 to 6 "Community development activities" refers to those publicly supported physical development activities and those related social or economic development activities being carried out or to be carried out within a reasonable period of time in accordance with a locally determined or areawide plan or strategy. Factors taken into consideration may include the project's responsiveness to local needs and objectives, the economics possible through coordinated or joint action, the degree of support by the appropriate unit(s) of local general-purpose government, and the management capacity within local general-purpose government.


PART 540 OPEN-SPACE LAND Sec. 540.1 Purpose. 640.2 Definitions. 640.3 Grants for open space land and his

toric preservation. 540.4 Eligible projects. 640.5 Requirements and conditions for


Sec. 540.6 Acquisition of lesser interest. 540.7 Valuation of donated land. 540.8 Valuation of donated materials. 540.9 Labor standards. 540.10 Project selection. 540.11 Establishment of acquisition dato. 540.12 Establishment of development dato. 640.13 Changes in uses and conversions.


natural resources, or (3) historic, archi640.14 Information, application forms, and tectural, or scenic purposes. applications.

(f) "Open space uses" means any use 640.15 Walvers.

of open space land for: (1) Park and recAUTHORITY: The provisions of this part 540

reational purposes, (2) conservation of issued under section 7 (d) of the Housing and

land and other natural resources, or (3) Urban Development Act, 42 0.S.C. 3535(d).

historic, architectural, or scenic purposes. SOURCE: The provisions of this part 540 ap

(g) "Secretary" means the Secretary pear at 37 F.R. 23717, Nov. 8, 1972, unless otherwise noted.

of Housing and Urban Development or

an officer authorized to perform the § 540.1 Purpose.

functions of the Secretary. The purpose of these regulations is to (h) "State" means any of the several implement title IV of the Housing and States, the District of Columbia, the Urban Development Act of 1970, Public Commonwealth of Puerto Rico, the terriLaw 91-609, 84 Stat. 1770, 1781. The ob- tories and possessions of the United jectives of the program as set forth in the States. law include: To help curb urban sprawl (i) "Urban area" means any area and prevent the spread of urban blight which is urban in character, including and deterioration, to encourage more those surrounding areas which, in the economic and desirable urban develop- judgment of the Secretary, form an ecoment, to assist in preserving areas and nomic and socially related region, takproperties of historic or architectural ing into consideration such factors &S value, and to help provide necessary rec- present and future population trends reational, conservation, and scenic areas and patterns of urban growth, location by assisting State and local public bodies of transportation facilities and systems, in taking prompt action to: (a) Provide, and distribution of industrial, commerpreserve, and develop open space land in cial, residential, governmental. institu& manner consistent with the planned tional, and other activities. long-range development of the Nation's

8 540.3 Grants for open space land and urban areas, (b) acquire, improve, and

historic preservation. restore areas, sites, and structures of historic or architectural value, and (c) de

(a) Grants of not more than 50 pervelop and improve open space and other

cent of the acqusition and/or developpublic urban land in accordance with

ment cost of open space land and/or hisprograms to encourage and coordinate toric preservation activities may be made local public and private efforts toward

to States and local public bodies. this end.

(b) Grants of not more than 75 per

cent of the acquisition cost of undevel8 540.2 Definitions.

oped or predominantly undeveloped land (a) "Changes in uses” means utiliz

which has special significance in helping ing the open space land for purposes not to shape economic and desirable patterns contemplated in the application for a urban growth if it is thheld from Grant Assistance Contract.

commercial, industrial, and residential (b) “Conversions" means changes in development, may be made to States and land use from open space uses to non- local public bodies. Subsequent disposal open space uses.

of interest(s) acquired under this section (c) “Donation" means cash, land, ma- are subject to approval by the Secretary terial, or services provided to, or by, an on such terms and conditions as he deapplicant for incorporation in the project termines equitable and appropriate, with at no cost to the applicant.

respect to the control of future use and (d) “Local public body" means any the sharing or application of the propublic body (including a political subdi- ceeds or value realized. vision) created by or under the laws of a State or two or more States, or a com-'

8 540.4

Eligible projects. bination of such bodies, and includes (a) Grant assistance is available to: Indian tribes, bands, groups, and nations (1) Acquire title to or other interest in (including Alaska Indians, Aleuts, and open space land in urban areas; Eskimos) of the United States.

(2) Develop open space or other land (e) "Open Space Land" means any

in urban areas for open space uses; land located in an urban area which has (3) Assist in the acquisition and/or value for: (1) Park and recreational pur- preservation of structures of historic or poses, (2) conservation of land and other architectural significance.

(b) Grant assistance will not be provided to:

(1) Defray ordinary State or local government expenses;

(2) Finance the acquisition by a public body of land outside the urban area for which it exercises (or participates in the exercise of) responsibilities consistent with the purpose of the Act;

(3) Acquire and clear developed land in built-up urban areas unless adequate open space land cannot be effectively provided through the use of existing undeveloped land;

(4) Provide assistance for historic and architectural preservation purposes except for districts, sites, buildings, structures, and objects which the Secretary of the Interior determines meet the criteria used in establishing the National Register of Historic Places. & 540.5 Requirements and conditions

for assistance. (a) An eligible project must be needed for carrying out a unified or officially coordinated program, meeting criteria established by the Secretary, for the provision and development of open space land which is a part, or is consistent with, the comprehensively planned development of the urban area except for historic preservation projects, and

(b) Not more than 50 percent of the non-Federal share of such eligible project cost may be made up by donations of land or materials.

(c) When fee title to land is acquired with assistance under section 702 of the Act, the land must remain under public control (except for changes in use and conversions which are permitted under conditions specified in $ 540.13), and

(d) When fee title is not acquired there must be a reasonable relationship between the nature and term of the interest acquired and the nature and/or useful life of the development or facility.

(e) All facilities developed with assistance under section 702 of the Act must remain under public control for the useful life of the facility so developed.

(1) No grant assistance is available for major construction, such as outdoor amphitheaters, dock facilities, golf courses, or major buildings. The grant amount for other type development costs may not exceed $250,000 or such other limitations as the Secretary may impose from time to time. In any event, only the cost

of otherwise eligible development which commences after HUD approval of a project application will be an eligible project cost. The foregoing limitations do not apply to development projects involving historic preservation activities or swimming pools.

(g) The Secretary is authorized to collect a fixed fee to defray the Government's expense in administering the program. Such fees will be charged grant recipients except for projects involving total costs of $25,000 or less, for which no fee shall be charged. $ 540.6 Acquisition of lesser interest.

Notwithstanding $ 540.5 (c) and (e), less than full title acquisition is permitted for land acquired under the program. Such lesser interests include, but are not limited to, easements, rights-ofway, and leaseholds. The interest so acquired must assure public control of the land for a period of time appropriate to the particular open space use. 8 540.7 Valuation of donated land.

The fair market value of donated land must be established by two independent appraisals as of the date of dedication. 8 540.8 Valuation of donated materials.

The value of donated materials shall be their wholesale market price at the time that they are incorporated into the project. & 540.9 Labor standards.

All laborers and mechanics employed by contractors or subcontractors on projects assisted by a grant made pursuant to section 702 of the Act shall be paid wages at rates not less than those prevailing on similar construction in the locality as determined by the Secretary of Labor in accordance with the DavisBacon Act, as amended (40 U.S.C. 2758 276a-5), and shall receive overtime compensation in accordance with and subject to the provisions of the Contract Work Hours Standards Act (40 U.S.C. 327–332), and the contractors and subcontractors shall comply with all regulations issued pursuant to these Acts. The Secretary of Labor has, with respect to the labor standards specified in this section, the authority and functions set forth in Reorganization Plan No. 14 of 1950 (15 F.R. 3176, 5 U.S.C. 1332–15) and section 2 of the Act of June 13, 1934, as amended (40 U.S.C. 276c). No such proj

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ect shall be approved without first obtaining adequate assurance that these labor standards will be maintained upon the construction work. $ 540.10 Project selection.

Applications will be evaluated in accordance with the criteria and procedures set forth in Part 541-Open Space Land Program Project Selection System of this chapter (37 F.R. 7388). $ 540.11 Establishment of acquisition

date. Property will be considered acquired as of the date a binding purchase agreement is executed, title is transferred, or a condemnation proceeding is initiated which cannot be discontinued without incurring substantial liability or penalty, whichever is earlier. 8 540.12 Establishment of development

date. Development will be considered commenced as of the date the applicant becomes unconditionally bound by a contract or issues a work order covering the activities, or actually begins the activities, whichever is earlier. 8 540.13 Changes in uses and conver

sions. Projects receiving assistance are to be utilized as specified in the application and HUD grant contract. Under some conditions, the intended use may be altered i" the change is in the interest of the applicant and the Federal Government. Any change in use of or conversion to other uses, and the disposition of any proceeds resulting therefrom, however, must have prior approval of HUD, and be in accord with the HUD grant contract. $ 540.14 Information, application

forms, and applications. Information and application forms may be obtained from, and applications submitted to, the Regional or Area Oifice of the Department of Housing and Urban Development which serves the area in which the applicant is located. $ 540.15 Waivers.

Any requirement of this subpart may be waived by the Secretary of Housing and Urban Development or his delegate so long as such waiver would not violate any requirement of Federal law.



SYSTEM Sec. 541.1 Scope. 541.2 Definitions. 641.4 Program prerequisites. 541.6 Criteria for evaluating applications. 541.8 Local effort and coordination. 641.10 Projects ability to meet open spach

needs. 841.12 Local equal employment and entre

preneurial effort. 541.14 Local need. 541.16 Commitment of local, county, State,

and Federal entities to project or

program. 541.18 Expansion of housing for low- and

moderate-income families. 541.20 Community development.

AUTHORITY: The provisions of this Part 541 issued under Titlo VII of the Housing Act of 1961, 75 Stat. 183, 42 U.S.C. 1500, AS amended by Title VI of the Housing and Urban Development Act of 1970, 84 Stat. 1781, 42 U.S.C. 1500.

SOURCE: The provisions of this Part 641 appear at 37 FR 7391, Apr. 14, 1972, unless otherwise noted. & 541.) Scope.

(a) Purpose. This part sets forth criteria and procedures to be used in preliminary evaluation of applications for Federal grant assistance to local public bodies and agencies for the Open Space Land Program.

(b) Procedures. (1) Submissions will first be reviewed against five prerequisites. If any of these prerequisites are not met, the application will be rejected. If the application meets all prerequisites, it will be evaluated against the point rated criteria and assigned a point rating.

(2) 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.

(3) 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 considered.

(4) The provisions of the regulations in this part do not apply to projects involving predominantly Historic Preservation Activities, New Communities, or such other critical or innovative projects as the Assistant Secretary for Community Development may determine.

(5) The Department reserves the right to negotiate the modification of the scope of the proposed undertaking and or the amount of financial assistance requested. $ 541.2 Definitions.

As used in the regulations in this part:

(a) “Applicant" means a State or local public body (as defined in sections 709 (3) and (4) of Title VII of the Housing Act of 1961, 75 Stat. 183, 42 U.S.C. 1500, as amended by Title IV of the Housing and Urban Development Act of 1970, 84 Stat. 1781, 42 U.S.C. 1500), which is applying for Federal assistance under the Open Space Land 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" means 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 for the county in which the project is to be located under either of the subsidized housing programs authorized by section 235 or 236 of the National Housing 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 10cated, by a factor of 3. "Low- and moderate-income housing" also refers to housing with an annual rental equal to or less than one-third of such section 235-236 maximum income.

"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. & 541.4 Program prerequisites.

For the Open Space Land Program there are the following five prerequisites:

(a) Certified areawide planning jurisdiction. The locality is in a certified areawide planning jurisdiction. For definition of "certified areawide planning jurisdiction" see HUD Circular 6415.1A and 6415.3.

(b) 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.

(c) Relocation requirements (if applicable). (1) Submission of acceptable assurances 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.

(d) 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.

(e) National Register of Historic Places. For historic and architectural preservation assistance the project must involve property or open space land which is listed on the National Register

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