(a) Accessibility to low- and moderate-income persons. The proposed facility will be made readily accessible to low- and moderate-income persons outside the immediate neighborhood----- 3 (b) Provision of community service. The proposed facility will provide a program of community services to meet identified needs of low- and moderateincome families and individuals where present service and facilities do not exist 8

(c) Coordination of existing services. The proposed Neighborhood Facility Program will coordinate and extend existing health, recreation, social or similar community services to meet the identified needs of the population of the area to be served___ 5

----

"Identified Needs" refer to those priority needs determined by the applicant with the participation of the community residents whose needs are to be served.

§ 551.14 Capacity to administer the Neighborhood Facility.

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

(a) Local commitment. The locality has committed staff and funds to provide core services for the proposed facility. 5 "Core Services" (central administrative services) cover such activities as:

(1) Coordination of services, including hiring of a center director; (2) Outreach;

(3) Intake, referral, and followthrough;

(4) Information development and dissemination;

(5) Maintenance of central recordkeeping system;

(6) Community organization.

(b) Program experience. (1) If locality has had prior federally assisted Neighborhood Facilities Grant Program experience: The locality has expeditiously put in operation such facilities; where displacement was involved, effectively carried out relocation activities; and operated the completed facilities in accordance with contract conditions____ 5

or

(2) If the locality is without federally assisted Neighborhood Facilities Grant Program experience: The applicant has adequately maintained public facilities

on a neighborhood basis and operated them in a nondiscriminatory manner. 5 § 551.16 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 affirmative 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 consideration. 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.

§ 551.18 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 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

6

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

(1) $1-$500 below State median____ 4 (2) More than $500 below State median 8 Median family incomes for the service 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.

§ 551.20

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 service area residents in the development of project objectives and there is evidence of current support for the execution of the project 4

811

(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 is active participation by the locality's representatives in the areawide or metropolitan planning organization_---

§ 551.24 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 and efforts to develop management capacity within local general-purpose government.

3

§ 551.22 Expansion of housing for lowand 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 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 non

discriminatory 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 an area of concentration of economically disadvantaged or minority citizens--- 4

Certification of projects for sewer facilities.

Application of other Federal laws. 555.9 Information, application forms, and applications.

AUTHORITY: The provisions of this Part 555 issued under secs. 702, 705, 79 Stat. 490, 492; 42 U.S.C. 3102, 3105.

SOURCE: The provisions of this Part 555 appear at 36 F.R. 24730, Dec. 22, 1971, unless otherwise noted.

§ 555.1 Purpose.

The purpose of section 702 of the Housing and Urban Development Act of 1965 (79 Stat. 490, 42 U.S.C. 3102) is to assist the large and small communities throughout the Nation to serve the needs of their citizens and to promote efficient and orderly community growth and development by making available Federal grant assistance to construct adequate basic public water and sewer facilities. § 555.2 Definitions.

(a) "Act" shall mean the Housing and Urban Development Act of 1965 (Public Law 89-117, approved August 10, 1965).

(b) "Development cost" shall mean the cost of constructing a basic public water or sewer facility and the cost of acquiring the land on which it is located, including site improvements necessary to permit the use of the land as a site for the facility.

(c) "Local public bodies and agencies" shall mean any public corporate bodies or political subdivisions; public agencies or instrumentalities of one or more States (including public agencies and instrumentalities of one or more municipalities or other political subdivisions of one or more States); Indian tribes; or boards or commissions established under the laws of any State to finance specific capital improvement projects.

(d) "Secretary" shall mean the Secretary of Housing and Urban Development, or an officer authorized to perform the functions of the Secretary.

(e) "State" shall mean the several States, the District of Columbia, the Commonwealth of Puerto Rico, and territories and possessions of the United States.

§ 555.3

Grants for basic public water and sewer facilities.

(a) Grants of not more than 50 percent of the development cost of eligible basic public water or sewer facility projects may be made to local public bodies and agencies.

(b) Grants of not more than 90 percent of the development cost of an eligible sewer facility project may be made if the project is to serve a community having a population of less than 10,000, according to the most recent decennial census, which is situated within a metropolitan area, and if such community is unable to finance the construction of the sewer facility without the increased grant, and if in such community (1) there does not exist a public or other adequate sewer facility which serves a substantial portion of the inhabitants of the community and (2) the rate of unemployment is, and has been continuously for the preceding calendar year, 100 percent above the national average.

§ 555.4 Eligible projects.

(a) Grant assistance is available to construct new facilities and to enlarge or improve existing facilities of the following types:

(1) Basic public water facilities, including facilities for the storage, supply,

39-082-75- 3

treatment, purification, or distribution of water for domestic, commercial, or industrial use; and

(2) Basic public sewer facilities, including sanitary sewer systems for the collection, transmission, and discharge of liquid wastes; and storm sewer systems for the collection, transmission, and discharge of water caused by rainfall or ground water runoff.

(b) The basic public water or sewer facility for which a grant may be made may include all parts of the water or sewer facility except household connections and the local collection or distribution laterals.

(c) Grant assistance will not be provided to finance ordinary repairs or maintenance of existing facilities.

(d) Grant assistance will not be provided for the construction of "treatment works" as defined in the Federal Water Pollution Control Act (70 Stat. 506, 23 U.S.C. 1173).

§ 555.5 Requirements for assistance.

(a) An eligible project must be necessary to provide adequate water or sewer facilities for, and contribute to the improvement of the health or living standards of, the people in the community to be served by the project. The project must be

(1) Designed so that an adequate capacity will be available to serve the reasonably foreseeable growth needs of the area;

(2) Consistent with a program for a unified or officially coordinated area wide water or sewer facilities system as part of the comprehensively planned development of the area; and

(3) Necessary to orderly community development.

(b) Prior to July 1, 1968, the Secretary may, in his discretion, make a grant with respect to an eligible project if the program for an areawide water or sewer facilities system is under active preparation but not yet completed, if the facility for which assistance is sought can reasonably be expected to be required as part of such an areawide program, and there is an urgent need for the facility.

(c) The Secretary is authorized to make a grant with respect to an eligible project for a sewer facility without regard to the requirements contained in this section in the case of a community which is eligible for an increased grant under § 555.3(b).

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. 276a276a-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). The Secretary of Labor has, with respect to the labor standards specified in this section, the authority and functions set forth in Reorganization Plan Number 14 of 1950 (15 F.R. 3176, 5 U.S.C. 133z-15) and section 2 of the Act of June 13, 1934, as amended (40 U.S.C. 276c). No such project shall be approved without first obtaining adequate assurance that these labor standards will be maintained upon the construction work. § 555.7

Certification of projects for sewer facilities.

Grant assistance may not be made available for a project for a sewer facility unless the Secretary of the Interior certifies to the Secretary that any waste material carried by the facility will be adequately treated so as to meet applicable Federal, State, interstate, or local water quality standards before such waste material is discharged into any public waterway. § 555.8

laws.

Application of other Federal

(a) Grants authorized by section 702 of the Act are subject to provisions of: (1) Title VI of the Civil Rights Act of 1964 (Public Law 88-352, 42 U.S.C. 2000d), which provides that no person in the United States shall, on the ground of race, color, or national origin, be excluded from participation in, or be denied the benefits of, or be otherwise subjected to discrimination under any program or activity receiving Federal financial assistance; and

(2) Title IV of the Housing and Urban Development Act of 1965 (42 U.S.C. 30713074), which requires that, as a condition of eligibility for assistance under section 702 of the Act, the applicant will follow certain prescribed policies in the

This part sets forth the criteria and procedures used in evaluating preliminary applications for Federal grant assistance to local public bodies and agencies for basic water and sewer facilities under the Act. The evaluation of preliminary applications described in this part does not result in a final decision by the Secretary to extend grant assistance to particular projects for the construction of such facilities. The provisions of this part of the 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.

for

(a) Preliminary applications grants for water and sewer facilities shall be submitted on Standard Form 101, to the appropriate HUD regional or area office having jurisdiction over the geographic area involved in the application. Copies of this form may be obtained on request from the regional or area office.

(b) In general, Standard Form 101 requests the legal name and address of the applicant (an eligible local public body or agency); a brief description of the proposed project and its purpose; a list of the localities to be served; the public interest and necessity for the project; and the proposed method of financing including the total project cost and the grant amount requested.

§ 556.4 Criteria for evaluating preliminary applications.

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

(a) Orderly growth and development. (b) Financial need.

(c) Housing.

(d) Health.

(e) Local job and business opportunity.

(f) 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 statement applies, no points are awarded to the application for that element. *

§ 556.6 Orderly growth and develop

ment.

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

1

(a) Service area need. (Select one): (1) Is to rehabilitate an existing system with no increase in the area served. (2) Is to increase the existing area served with or without rehabilitation of the existing system.--.

10

(3) Is to provide a basic system for a community which is presently unserved "Service area" means the total geographic area for which the applicant has legal responsibility to provide services and facilities. "Rehabilitation" refers only to major items of construction; it does not include normal maintenance and repair. The phrase "increase the area served" refers to the provision of facilities in those portions of the service area which are not currently part of the existing system. A "basic system" is one which provides facilities within the service area where no facilities currently exist, but existing or proposed supporting facilities, e.g., water supply or sewage treatment, may be provided by other units of government.

(b) Capacity for future growth. (Select one):

(1) The project provides for the reasonable foreseeable growth needs of the area

(2) The project provides for the reasonable foreseeable growth needs of the area in addition to providing for an anticipated urgent need of the applicant in the next 2 to 5 years--(8) The project provides for the reasonable foreseeable growth needs of the area in addition to meeting an immediate critical need.......

5

10

"Reasonable foreseeable growth needs" are determined by the applicant as reflected in the functional planning and programing for the area. "Urgent need" refers to a need which, if not corrected in the next 5 years, can be expected to result in a critical need. A "critical need" refers to a need that should be satisfied immediately, e.g., a desperate need for water including any need to import water, or a need to control frequent inundations or to eliminate sources of epidemics.