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Housing and Urban Development

(Continued)

FOR COMMUNITY PLANNING AND DEVELOPMENT, DEPARTMENT OF HOUSING AND URBAN

DEVELOPMENT

SUBCHAPTER A-SLUM CLEARANCE AND URBAN RENEWAL

Part 500 511

Renewal assistance.
Neighborhood Development Program Project Selection System.

SUBCHAPTER B

OPEN-SPACE LAND

540 541

Open-space land.
Open-space Land Program Project Selection System.

SUBCHAPTER COMMUNITY FACILITIES

551 555 556

Neighborhood Facilities Program Project Selection System.
Grants for basic public water and sewer facilities.
Evaluation of preliminary applications for basic water and sewer facilities

grants.
Public Facility Loans Program Project Selection System.
Community development block grants.
Model Cities Transition Policies.

561 570 580

SUBCHAPTER A-SLUM CLEARANCE AND URBAN RENEWAL

PART 500 RENEWAL ASSISTANCE Subpart A-Urban Renowal Projects and Neigh

borhood Development Programs, Code Enforce ment Programs, Demolition Programs, Rehabilitation Grants, Interim Assistance Grants, and

Community Renewal Programs Sec. 600.1 Definitions. 500.2 General policies and procedures. 500.3 Urban renewal projects and neighbor

hood development programs. 500.4 Code enforcement programs. 500.5 Demolition programs. 600.6 Rehabilitation grants. 600.7 Interim assistance grants. 500.8 Community renewal programs. 600.9 Applications; information.

AUTHORITY: Sec. 7(a), 79 Stat. 670; 12 U.S.C. 3535(d).

SOURCE: 36 FR 24706, Dec. 22, 1971, unless otherwise noted. Subpart A-Urban Renewal Projects

and Neighborhood Development Programs, Code Enforcement Programs, Demolition Programs, Rehabilitation Grants, Interim Assistance Grants, and Community

Renewal Programs $ 500.1 Definitions.

(a) Title I of the Housing Act of 1949 (63 Stat. 414, 42 U.S.C. 1450) authorizes

13 FR 8011, Mar. 27, 1973.

the Secretary of Housing and Urban Development to finance che undertaking of local programs designed for the elimination and prevention of slums and blight, including slum clearance and urban renewal, rehabilitation, code enforcement, and demolition.

(b) The terms used herein shall have the meanings attributed to them in section 110 of the Housing Act of 1949, as amended, 42 U.S.C. 1460. & 500.2 General policies and procedures.

Title I of the Housing Act of 1949, as amended, authorizes the Secretary of Housing and Urban Development to provide localities with Federal technical and financial assistance through a number of programs designed for the elimination and prevention of slums and blight and the removal of factors that create slums and blighting conditions. Applications for grants, loans, and advances should be filed with the Regional or Area Office which serves the locality seeking assistance. The Regional and Area Offices of the Department of Housing and Urban Development provide forms for making application for Federal aid, furnish information and assistance, receive completed applications, and notify recipients of the approval of such applications. $ 500.3 Urban renewal projects and

neighborhood development pro

grams. (a) The renewal and revitalization of urban areas can be accomplished through the use of two different methods, urban renewal projects or neighborhood development programs.

(b) Urban renewal projects are carried out in individual blighted areas. Neighborhood development programs deal with one or more urban renewal areas which are to be treated simultaneously. Urban renewal projects are planned and funded as one unit; neighborhood development programs are to be funded in annual increments with the Government having the right to terminate at the end of any year.

(c) Urban renewal projects and neighborhood development programs are planned and executed by local public agencies which, depending on State law, may be separate urban renewal agencies, local housing authorities, or departments of local governments. To qualify for Fed

eral assistance to an urban renewal project or a neighborhood development program, a community must adopt, and have certified by the Secretary of Housing and Urban Development, a workable program for community improvement designed to eliminate blight and prevent its recurrence. In addition, a local public agency must make a showing that there is a feasible method for the temporary relocation of the individuals and families displaced from the urban renewal areas to be treated and must assure the Secretary that there are, or are being provided, sufficient units of decent, safe, and sanitary relocation housing in comparable areas at reasonable rents. The policies and procedures applicable to urban renewal projects are set forth in the Urban. Renewal Handbook (RHA 7200 through RHA 7228) and those applicable to neighborhood development programs in the Neighborhood Development Program Handbook, RHA 7380 through RHA 7389.

(d) An urban renewal project or a neighborhood development program assisted under title I may include, in accordance with the urban renewal plan for the area, acquisition of land, site clearance, installation of streets, utillties, parks, playgrounds, and other improvements, restoration and relocation of structures of historic or architectural value, carrying out plans for programs of code enforcement, voluntary repair and rehabilitation of buildings or other improvements, and disposition of acquired land.

(e) The Secretary is authorized to make relocation grants to local public agencies to reimburse them for payments to individuals, families, and businesses for their reasonable and necessary moving expenses, for any direct loss of property resulting from their displacement from an urban renewal area, and for related payments. The regulations governing such payments may be found at $ 500.100 et seq.

(f) The Secretary is authorized to make an advance of funds to a local public agency (1) for survey and planning work for a project, (2) to determine the feasibility of the undertaking of a project or program, and (3) for a General Neighborhood Renewal Plan outlining the urban renewal activities proposed in

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an area which is of such size that the activities may have to be initiated and carried out in stages.

(g) For an urban renewal project, the Secretary is authorized to make one or more temporary loans to be used by the local public agency as working capital in acquiring real estate, clearing sites and preparing the project area for redevelopment, conservation and/or rehabilitation. For a neighborhood development program, the Secretary is authorized to make temporary loans for use by the local public agency for such program activities as are to be carried out during an annual increment of the program.

(h) The Secretary is authorized to make one or more definitive loans to the local public agency, for a period not exceeding 40 years, when project land is leased rather than sold to a redeveloper. A definitive loan must be amortized from the rental income derived from the land.

(1) The Secretary is authorized to make one or more capital grants to & local public agency not exceeding twothirds of the net project or program cost except that a capital grant may be made not exceeding three-fourths of the net project or program cost (1) where the project is located in a municipality with & population of 50.000 or less, or (2) where the project is situated in an officially designated redevelopment area. A three-fourths grant is also available for an urban renewal project (but not one that is included in a neighborhood development program) where the net project cost excludes the costs of survey, planning, administrative, legal, and certain other expenses. For a neighborhood development program, the capital grant is paid annually for the Government's share of expenses for the year.

(1) The local contribution toward the cost of the project or program may be made in the form of cash or noncash grants-in-aid, such as donations of land, demolition and removal work, project improvements, historic preservation ac. tivities, certain expenditures by colleges, universities and hospitals, or pubiic facilities that benefit the project.

(k) Application for financial assistance for an urban renewal project may be made by local public agencies on Form HUD-6100, Survey and Planning

Application, and Form HUD-612, Application for Loan and Grant. A neighborhood development program application may be made on Form HUD-6270, Appllcation for a Neighborhood Development Program. 8 500.4 Code enforcement programs.

The Secretary is authorized to make & grant of not exceeding two-thirds (or three-fourths in the case of a municipality having a population of 50,000 or less) of the cost of carrying out programs of concentrated code enforcement in deteriorated or deteriorating areas in which such enforcement, together with those public improvements to be provided by the locality, may be expected to arrest the decline of the area. Eligible code enforcement activities may include the provision and repair of necessary streets, curbs, sidewalks, street lighting, tree planting, and similar improvements within such areas. Prior to execution of a contract for a code enforcement grant, the municipality must have a workable program for community improvement currently in effect, must assure that any individuals or families displaced by the code enforcement activities are offered decent, safe, and sanitary housing within their means, and must provide relocation assistance and relocation payments on the same basis as in urban renewal project activities. The policies and procedures applicable to code enforcement programs are set forth in the Code Enforcement Grant Handbook, RHA 7250. Application for financial assistance for a code enforcement grant may be made by cities, other municipalities, and counties on Form HUD-6170, Application for Code Enforcement Grant, and Form HUD 6170A, Applicatior. for Code Enforcement Grant-Area Data. $ 500.5 Demolition programs.

The Secretary is authorized to make & grant of not exceeding two-thirds of the cost of demolishing structures which under State or local law have been determined to be structurally unsound, a harborage or potential harborage of rats, or unfit for human habitation. If the structures to be demolished are not in an urban renewal area; (a) the locality involved must have a currently certified

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