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(a) Accessibility to low- and mod. erate-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 tho

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 8 551.16 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 10cality 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 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. 8 551.18 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

(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 8 551.24 Community development. other census data if possible. Or use best

The degree to which the project is available data.

necessary for undertaking other publicly $ 551.20 Commitment of local, county, supported community development acState, and Federal entities to project tivities.--

0 to 6 or program.

“Community development activities” re(The value of this category is the sum fers to those publicly supported physical of paragraphs (a) to (d) of this section.) development activities and those related

(a) Local commitment. There was sub- social or economic development activistantial participation by the chief execu- ties being carried out or to be carried tive and governing body of the locality out within a reasonable period of time during the planning of the project, and in accordance with a locally determined they are demonstrating current public or areawide plan or strategy. Factors commitment in support of the project. 4 taken into consideration may include the

(b) Resident commitment. There was project's responsiveness to local needs effective widespread participation of a and objectives, the economics possible representative spectrum of service area through coordinated or joint action, the residents in the development of project degree of support by the appropriate objectives and there is evidence of cur- unit(s) of local general-purpose governrent support for the execution of the ment, and the management capacity and project

4 efforts to develop management capacity (c) Coordination of resources. There within local general-purpose government. was substantial participation of other local agencies during planning, and there PART 555—GRANTS FOR BASIC PUBis a current commitment including re

LIC WATER AND SEWER FACILITIES sources, from Federal, State, county, or local entities other than those necessary


555.1 Purpose. to satisfy the local share requirement. 4

555.2 Definitions. (d) Participation in areawide or met

555.3 Grants for basic public water and ropolitan planning. There is active par

sewer facilities. ticipation by the locality's representa- 555.4 Eligible projects. tives in the areawide or metropolitan 555.5 Requirements for assistance. planning organization --


555.6 Labor standards.

555.7 Certification of projects for sewer & 551.22 Expansion of housing for low

facilities. and moderate-income families.

555.8 Application of other Federal laws.

555.9 Information, application forms, and (The value of this category is the sum

applications. of the values of paragraphs (a), (b), and (c) of this section.)

AUTHORITY: The provisions of this part

555 issued under secs. 702, 705, 79 Stat. 490, (a) Expansion of low- and moderate

492; 42 U.S.C. 3102, 3105. income housing (applicant). Within the applicant's geographic area of jurisdic- SOURCE: The provisions of this part 555 tion, there has been significant expan

appear at 36 F.R. 24730, Dec. 22, 1971, unless

otherwise noted. sion of the supply of standard housing for low- and moderate-income families 8 555.1 Purpose. in nondiscriminatory way.--


The purpose of section 702 of the (b) Expansion of low- and moderate

Housing and Urban Development Act of income housing (locality). Within the

1965 (79 Stat. 490, 42 U.S.C. 3102) is to locality in which the project is located,

assist the large and small communities there has been significant expansion of

throughout the Nation to serve the needs the supply of standard housing for low

of their citizens and to promote efficient and moderate-income families in a non

and orderly community growth and dediscriminatory way-


velopment by making available Federal (c) Dispersion of low- and moderate

grant assistance to construct adequate income housing. The locality has a real

basic public water and sewer facilities. Istic plan to expand the supply of standard low- and moderate-income housing

$ 555.2 Definitions. in a nondiscriminatory way outside an (a) “Act" shall mean the Housing and area of concentration i economically Urban Development Act of 1965 (Public disadvantaged or minority citizens.--4 Law 89–117, approved August 10, 1965).

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(b) "Development cost” shall mean treatment, purification, or distribution the cost of constructing a basic public of water for domestic, commercial, or water or sewer facility and the cost of industrial use; and acquiring the land on which it is located, (2) Basic public sewer facilities, inincluding site improvements necessary to cluding sanitary sewer systems for the permit the use of the land as a site for collection, transmission, and discharge the facility.

of liquid wastes; and storm sewer sys(c) "Local public bodies and agen- tems for the collection, transmission, cies” shall mean any public corporate and discharge of water caused by rainbodies or political subdivisions; public fall or ground water runoff. agencies or instrumentalities of one or (b) The basic public water or sewer more States (including public agencies

facility for which a grant may be made and instrumentalities of one or more

may include all parts of the water or municipalities or other political subdivi

sewer facility except household connecsions of one or more States); Indian

tions and the local collection or distritribes; or boards or commissions estab

bution laterals. lished under the laws of any State to

(c) Grant assistance will not be profinance specific capital improvement

vided to finance ordinary repairs or projects.

maintenance of existing facilities. (d) “Secretary” shall mean the Secre

(d) Grant assistance will not be protary of Housing and Urban Development,

vided for the construction of "treatment or an officer authorized to perform the

works" as defined in the Federal Water functions of the Secretary.

Pollution Control Act (70 Stat. 506, 23 (e) "State" shall mean the several

U.S.C. 1173). States, the District of Columbia, the Commonwealth of Puerto Rico, and § 555.5 Requirements for assistance. territories and possessions of the United (a) An eligible project must be necStates.

essary to provide adequate water or $ 555.3 Grants for basic public water

sewer facilities for, and contribute to the and sewer facilities.

improvement of the health or living

standards of, the people in the commu(a) Grants of not more than 50 per

nity to be served by the project. The cent of the development cost of eligible

project must bebasic public water or sewer facility

(1) Designed so that an adequate caprojects may be made to local public

pacity will be available to serve the reabodies and agencies.

sonably foreseeable growth needs of the (b) Grants of not more than 90 per

area; cent of the development cost of an eli

(2) Consistent with a program for a gible sewer facility project may be made

unified or officially coordinated areawide if the project is to serve a community

water or sewer facilities system as part having a population of less than 10,000,

of the comprehensively planned developaccording to the most recent decennial

ment of the area; and census, which is situated within a metro

(3) Necessary to orderly community politan area, and if such community is

development. unable to finance the construction of the

(b) Prior to July 1, 1968, the Secretary sewer facility without the increased grant, and if in such community (1)

may, in his discretion, make a grant with

respect to an eligible project if the prothere does not exist a public or other ade

gram for an areawide water or sewer quate sewer facility which serves a sub

facilities system is under active preparastantial portion of the inhabitants of the community and (2) the rate of unem

tion but not yet completed, if the facility

for which assistance is sought can reaployment is, and has been continuously for the preceding calendar year, 100 per

sonably be expected to be required as cent above the national average.

part of such an areawide program, and

there is an urgent need for the facility. $ 555.4 Eligible projects.

(c) The Secretary is authorized to (a) Grant assistance is available to make a grant with respect to an eligible construct new facilities and to enlarge

project for a sewer facility without reor improve existing facilities of the fol- gard to the requirements contained in lowing types:

this section in the case of a community (1) Basic public water facilities, in- which is eligible for an increased grant cluding facilities for the storage, supply, under $ 555.3(b).


acquisition of real property by eminent domain.

(b) An applicant for grant assistance under section 702 of the Act will be required to furnish satisfactory assurance that it will comply with the requirements and policies referred to in paragraph (a) of this section, $ 555.9 Information, application forms,

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

8 555.6 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. 276 2768-5), 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. 1332–15) 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 Application of other Federal

laws. (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



TIES GRANTS Sec. 556.1 Scope. 556.2 Definitions. 556.3 Preliminary applications for assist

ance. 556.4 Criteria for evaluating preliminary

applications. 556.6 Orderly growth and development. 556.8 Financial need, 556.10 Housing. 556.12 Health. 556.14 Local job and business opportu

nities. 556.16 Community development. 556.18 Further application procedures.

AUTHORITY: The provisions of this part 556 issued under secs. 702 and 705, 79 Stat. 490, 492; 42 U.S.C. 3102, 3105.

SOURCE: The provisions of this part 556 appear at 36 F.R. 24731, Dec. 22, 1971, unless otherwise noted. $ 556.1 Scope.

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.

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The Department reserves the right to negotiate the modification of the scope of the proposed undertaking and/or the amount of financial assistance requested. Further application procedures are described in 556.18. (42 U.S.C. 8686(d)) (37 FR. 26415, Dec. 12, 1972) $ 556.2 Definitions.

The terms "Act”, "development cost”, "local public bodies and agencies", "Secretary”, and “State" shall have the meanings given in $ 555.2 of this chapter. $ 556.3 Preliminary applications for

assistance. (a) Preliminary applications for 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 ofice.

(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 pro sed 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 inancing including the total project cost and the grant amount requested. $ 556.4 Criteria for evaluating prelim

inary 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 & 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. 8 556.6 Orderly growth and develop

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

(a) Service area need. (Select one): (1) Is to rehabiutato an existing systom

with no increase in the area served. 1 (2) Is to increase the existing area

served with or without robabilitation

of the existing system.--
(8) Is to provide a basic system for &

community wbich 18 presontly un-

10 "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 facilties 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 reason

able foreseeable growth needs of tho

1 (2) The project provides for the reason

able foreseeable growth needs of tho
area in addition to providing for an
anticipated urgent need of the ap-

plicant in the next 2 to 5 years--- 5 (8) The project provides for the reason

able foreseeable growth needs of tho
area in addition to meeting an im-
mediate critical need...

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., & desperate need for water including any need to import water, or a need to control frequent inundations or to eliminate sources of epidemics.

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