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ard low- and moderate-income housing in a nondiscriminatory way outside areas of concentration of economically disadvantaged or minority citizens.------ 4 $ 561.26 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 area wide plan or strategy. Factors taken into consideration may include the project's responsiveness to local needs and objectives, the economies 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.



Subpart A-General Provisions Sec. 570.1 Applicability and scope. 570.2 Objective and purpose of program. 570.3 Definitions. Subpart B—Allocation and Distribution of Funds 570.100 General. 570.101 Allocation between metropolitan

and nonmetropolitan areas. 570.102 Basic grant amounts. 570.103 Hold-harmless grants. 570.104 Funds for discretionary grants. 570.105 Qualification as urban county. 570.106 Qualification and submission dates. 570.107 Reallocation of funds. 570.108 Offset against entitlement.

Subpart C-Eligible Activities 570.200 Eligible activities. 570.201 Ineligible activities.

Subpart D-Applications for Entitlement Grants 570.300 Pre-submissions. 570.301 Program year. 570.302 Advances and authorization to in

cur costs. 570.303 Application requirements. 570.304 Waiver of application requirements. 570.305 Program amendments. 570.306 HUD review and approval of appli


Subpart E-Applications and Criteria for

Discretionary Grants Sec. 570.400 General 570.401 Urgent needs fund. 570.402 General purpose funds for metro

politan and nonmetropolitan

areas. 570.403 New communities. 570.404 Areawide projects (Reserved] 570.405 Guam, the Virgin Islands, American

Samoa, and the Trust Territory

of the Pacific Islands. 570.406 Innovative projects. 570.407 Federally recognized disasters. 570.408 Inequities funds.

Subpart F-Grant Administration 570.500 Designation of public agency. 570.501 Grant agreement. 570.502 Method of payment. 570.503 Disbursement of advances against

entitlement. 570.504 Release of funds pursuant to § 570.

603 and 8 570.607. 570.505 Financial management systems. 570.506 Program income. 570.507 Procurement standards. 570.508 Bonding and insurance. 570.509 Audit. 570.510 Retention of records. 570.511 HUD administrative services for re

habilitation loans and grants

(Reserved). 570.512 Grant closeout procedures (Re

served) Subpart G–Other Program Requirements 570.600 Limitations on local option activi

ties and contingency accounts. 570.601 Nondiscrimination. 570.602 Relocation and acquisition. 570.603 Environment. 570.604 Historic preservation. 570.605 Labor standards. 570.606 Architectural Barriers Act of 1968. 570.607 Activities for which other Federal

funds must be sought. 570.608 Hatch Act. 570.609 National Flood Insurance Program. 570.610 Clean Air Act and Federal Water

Pollution Control Act.

Subpart H-Loan Guarantees 570.700 Eligible applicants. 570.701 Application requirements. 570.702 Guaranteed loan amount. 570.703 Federal guarantee. 570.704 Marketing of notes and interest

rates (Reserved). 570.705 Grants for taxable obligations (Re

Subpart Financial Settlement of Urban

Renewal Projects 570.800 General. 570.801 Projects which can be completed

without additional capital grants. 570.802 Projects which cannot be completed

without additional capital grants.


(5) Public facilities loans under Title 570.803 Requirements for completion of II of the Housing Amendments of 1955; projects prior to financial settle

(6) Open space land under Title VI ment (Reserved).

of the Housing Act of 1961; and Subpart 1-Program Management

(7) Rehabilitation loans under sec570.900 Performance standards.

tion 312 of the Housing Act of 1964, ex570.905 Reports to be submitted by recip- cept that such loans may be made under ient.

the authority of section 312 of the Hous570.906 Annual performance report.

ing Act of 1964, as amended, until Au570.907 Records to be maintained by recip

gust 22, 1975. ient. 570.908 HUD Reports (Reserved).

§ 570.2 Objective and purpose of pro570.909 Secretarial review and monitoring

gram. of recipient's performance. 570.910 Evaluation by HUD.

(a) The primary objective of the Com570.911 Secretarial adjustment of annual

munity Development Program is the degrants.

velopment of viable urban communities, 570.912 Nondiscrimination compliance. including decent housing and a suitable 570.913 Other remedies for noncompliance. living environment and expanding ecoAUTHORITY: Title I of the Housing and

nomic opportunities, principally for perCommunity Development Act of 1974 (Pub. sons of low and moderate income. ConL. 93–383); and sec. 7(d), Department of sistent with this primary objective, the Housing and Urban Development Depart- Federal assistance provided in this part ment, (42 U.S.C. 3535(d)).

is for the support of community develSOURCE: 39 FR 40136, Nov. 13, 1974, unless opment activities which are directed tootherwise noted.

ward the following specific objectives:

(1) The elimination of slums and Subpart A-General Provisions

blight and the prevention of blighting $ 570.1 Applicability and scope.

influences and the deterioration of prop(a) The policies and procedures con- erty and neighborhood and community tained herein are applicable to the mak- facilities of importance to the welfare ing of community development program

of the community, principally persons of block grants and loan guarantees on be

low and moderate income; half of urban communities under the (2) The elimination of conditions provisions of Title I of the Housing and which are detrimental to health, safety, Community Development Act of 1974, and public welfare, through code en

(b) This Part covers policies and pro- forcement, demolition, interim rehabilicedures relating to the roles and respon- tation assistance, and related activities; sibilities of HUD and general local gov- (3) The conservation and expansion ernment with regard to the allocation of the Nation's housing stock in order and distribution of funds; eligible ac- to provide a decent home and a suitable tivities; application for entitlement living environment for all persons. but grants; applications and criteria for dis- principally those of low and moderate cretionary grants; grant administration;

income; other program requirements; loan guar- (4) The expansion and improvement antees; financial settlement of urban re- of the quantity and quality of comnewal projects; and program manage

munity services, principally for persons ment.

of low and moderate income, which are (c) The community development block essential for sound community developgrant program under this part replaces ment and for the development of viable the following programs consolidated by

urban communities; the Act:

(5) A more rational utilization of land (1) Urban renewal (and neighbor- and other natural resources and the bethood development programs) under title ter arrangement of residential, commerI of the Housing Act of 1949;

cial, industrial, recreational, and other (2) Model Cities under Title I of the needed activity centers; Demonstration Cities and Metropolitan (6) The reduction of the isolation of Development Act of 1966;

income groups within communities and (3) Water and sewer facilities under geographical areas and the promotion of section 702 of the Housing and Urban an increase in the diversity and vitality Development Act of 1965;

of neighborhoods through the spatial (4) Neighborhood facilities under sec- deconcentration of housing opportunities tion 703 of the Housing and Urban De- for persons of lower income and the revelopment Act of 1965;

vitalization of deteriorating or deterio


rated neighborhoods to attract persons (d) “Chief executive officer" of a unit of higher income; and

of local government means the elected (7) The restoration and preservation official, or the legally designated official, of properties of special value for historic, who has the primary responsibility for architectural or esthetic reasons.

the conduct of that unit's governmental (b) It is also the purpose of this part affairs. Examples of the “chief executive to further the development of a national oficer" of a unit of local government urban growth policy by consolidating a may be: The elected mayor of a municnumber of complex and overlapping pro- ipality; the elected county executive of grams of financial assistance to commu- & county; the chairman of a county nities of varying sizes and needs into a commission or board in a county that has consistent system of Federal aid which: no elected county executive; the official

(1) Provides assistance on an annual designated pursuant to law by the basis, with maximum certainty and mini

governing body of the unit of local govmum delay, upon which communities can ernment; or the chairman, governor, rely in their planning;

chief, or president (as the case may be) (2) Encourages community develop- of an Indian tribe or Alaskan native ment activities which are consistent with

village. comprehensive local and areawide devel- (e) "City" means for purposes of basic opment planning;

grant eligibility, (1) any unit of gen(3) Furthers achievement of the na- eral local government which is classified tional housing goal of a decent home as a municipality by the United States and a suitable living environment for Bureau of the Census or (2) any other every American family; and

unit of general local government which (4) Fosters the undertaking of hous- is a town or township and which, in the ing and community development activ- determination of the Secretary, (i) posities in a coordinated and mutually sup- sesses powers and performs functions portive manner.

comparable to those associated with mu(c) It is intended under this part that

nicipalities, (ii) is closely settled and (iii) the Federal assistance made available contains within its boundaries no incorhereunder not be utilized to reduce sub

porated places as defined by the United stantially the amount of local financial

States Bureau of the Census. support for community development ac- (f) “Community Development Protivities below the level of such support gram" means the program formulated by prior to the availability of such assist- the applicant in its application to HUD ance.

as described in Subpart D which (1) In$ 570.3 Definitions.

cludes the activities to be undertaken to

meet its community development needs (a) "Act" means Title I of the Housing

and objectives identified in its summary and Community Development Act of

community development plan, together 1974, P.L. 93–383.

with the estimated costs and general lo(b) “Applicant” means the State or

cation of such activities, (2) indicates unit of general local government which

resources other than those provided makes application pursuant to the pro

under this part which are expected to visions of Subpart D or Subpart E. One

be made available toward meeting its or more public agencies, including exist

identified needs and objectives, and (3) ing local public agencies, may be designated by the chief executive officer of a

takes into account appropriate environState or a unit of general local govern

mental factors. ment to undertake a Community Devel

(g) "Discretionary grant” means opment Program in whole or in part, but grant made from the Secretary's fund, only the State or unit of general local from the transition fund for urgent comgovernment may be the applicant under munity development needs, and from Subpart D and E.

the general purpose funds for metro(c) "Basic grant amount" means the politan and nonmetropolitan areas as deamount of funds which a metroplitan scribed more fully in $ 570.104(a), (b), city or urban county is entitled to receive (c) (1), and (c) (2), respectively. under this part as determined by the (h) "Entitlement amount" means the formula based on factors pertaining to amount to be received by a unit of genpopulation, extent of poverty, and extent eral local government consisting of its of housing overcrowding provided in basic grant amount and/or hold-harmSubpart B.

less grant under $ 570.102 and $ 570.103.


(i) “Extent of housing overcrowding" (q) "Metropolitan area" means a means the number of housing units with standard metropolitan statistical area, 1.01 or more persons per room based on as established by the Office of Managedata compiled and published by the ment and Budget. United States Bureau of the Census for (r) “Metropolitan city" means (1) a 1970.

city within a metropolitan area which is (j) "Extent of poverty" means the the central city of such area, as defined number of persons whose incomes are and used by the Office of Management below the poverty level based on data and Budget, or (2) any other city, within compiled and published by the United a metropolitan area, which has a popuStates Bureau of the Census for 1970 lation of fifty thousand or more. and the latest reports of the Office of (s) "Population" means the total resiManagement and Budget. For the pur- dent population based on data compiled poses of this Part, the Secretary has de- and published by the United States Butermined that it is neither feasible nor reau of the Census for 1970. appropriate to make adjustments at (t) "Secretary" means the Secretary this time in the computations of “extent of Housing and Urban Development. of poverty" for regional or area varia- (u) “State" means any State of the tions in income and cost of living.

United States, or any instrumentality (k) "Hold-Harmless amount" means thereof approved by the Governor; and the amount which represents the aver- the Commonwealth of Puerto Rico. age past level of funds received by a (v) “Unit of general local government” unit of general local government under means any city, county, town, township, the consolidated programs cited in parish, village, or other general purpose $ 570.1(c) and which is used to determine political subdivision of a State; Guanı, the amount of the Hold-Harmless grant. the Virgin Islands, and American Samoa

(1) "Hold-Harmless grant" means that or a general purpose political subdivision amount of funds which a unit of general thereof; a combination of such political local government is entitled to receive subdivisions recognized by the Secretary; in excess of its basic grant amount under

the District of Columbia; the Trust Ter$ 570.103.

ritory of the Pacific Islands; and Indian (m) "HUD" means the Department of

tribes, bands, groups, and nations, inHousing and Urban Development.

cluding Alaska Indians, Aleuts, and Es(n) "Identifiable segment of the total

kimos, of the United States. Such term group of lower-income persons in the

also includes a State or a local public community" means women, and members body or agency (as defined in section 711 of a minority group which includes

of the Housing and Urban Development Negroes, Spanish-Americans, Orientals,

Act of 1970), a community association, American Indians and other groups nor

or other entity, which is approved by the mally identified by race, color, or nå

Secretary for the purpose of providing tional origin.

public facilities or services to a new com(0) "Low and moderate income fam- munity as part of a program meeting the ilies" or "lower income families" means

eligibility standards of section 712 of the families whose incomes do not exceed 80

Housing and Urban Development Act of percent of the median family income of

1970 or Title IV of the Housing and Urthe area as determined by the Secretary

ban Development Act of 1968. with adjustments for smaller and larger

(w) "Urban county" means any county families, except that the Secretary may

within à metropolitan area which, purestablish income limits higher

suant to $ 570.105, (1) is authorized or

under State law to undertake essential lower than 80 percent of the median for the area on the basis of his findings that

community and housing assistance activ

ities in its unincorporated areas, if any, such variations are necessary because of

which are not units of general local govprevailing levels of construction cost, un

ernment, and (2) has a combined popusually high or lower family incomes, or ulation of two hundred thousand or other factors.

more (excluding the population of (p) "Low and moderate income per- metropolitan cities therein) in such unsons" or "lower income persons" means incorporated areas and in its included persons for whom the income of the fam- units of general local government (1) in ily conforms with the definition of lower which it has authority to undertake income families established in

essential community development and $ 570.3(0) above.

housing assistance activities and which


do not elect to have their population pursuant to § 570.101, the Secretary will excluded or (ii) with which it has en- allocate to all metropolitan cities an tered into cooperation agreements to amount of funds which bears the same undertake or to assist in the undertaking ratio to the allocation for such metroof essential community development and politan areas as the average of the ratios housing assistance activities.


(i) The population of all metropolitan Subpart B-Allocation and Distribution of Funds

cities and the population of all metro

politan areas; $ 570.100 General.

(i) The extent of poverty in all metro(a) This subpart describes the policies politan cities and the extent of poverty and procedures governing the determina- in all metropolitan areas; and tion of entitlement for eligible units of

(iii) The extent of housing overcrowdgeneral local government to receive

ing by units in all metropolitan cities grants, the entitlement amounts, and the

and the extent of housing overcrowding allocation of appropriated funds among

by units in all metropolitan areas. the several distribution categories pro

(2) Of the amount allocated to all vided under Title I of the Housing and

metropolitan cities, the Secretary will alCommunity Development Act of 1974.

locate to each metropolitan city a basic (b) In determining eligibility for a

grant amount which bears the same ratio Basic Grant and allocating funds under

to the allocation for all metropolitan

cities as this subpart, current corporate status

the average of the ratios and geographic boundaries will be con

between: sidered, in accordance with the follow

(1) The population of that city and ing, to the extent such information is

the population of all metropolitan cities; available from the U.S. Bureau of the

(ii) The extent of poverty in that city Census at such time as the allocation of

and the extent of poverty in all metrofunds is to be made each year:

politan cities, and (1) Incorporation of a community

(iii) The extent. of housing overhaving population of at least 50,000 based

crowding by units in that city and the on latest national census;

extent of housing overcrowding by units (2) Change in boundaries or annex

in all metropolitan cities. ations resulting in the population of the

(3) In determining the average of unit of general local government reach

ratios under paragraph (a) (1) and (2) ing or exceeding 50,000 based on latest

of this section, the ratio involving the national census; and

extent of poverty will be counted twice. (3) Changes in boundaries or annexa

(4) Towns or townships having poputions cumulatively resulting in an in

latior. of 50,000 or more may be eligible crease or decrease in population of the

for entitlement to basic grant amounts unit of general local government of at

although they are not classified as least five percent based on latest national municipalities by the U.S. Bureau of the census.

Census. In determining eligibility, pri

mary reliance shall be placed on infor$ 570.101' Allocation between metro

mation available from the U.S. Bureau politan and nonmetropolitan areas. of the Census with respect to populaEighty percent of the funds appropri- tion level, closeness of settlement, and ated each year for the purposes of this presence of incorporated places within Part, excluding amounts for the Secre- the boundaries of the unit of general tary's discretionary fund and the transi- local government. tion fund described in Subpart E and (b) Urban counties. (1) of the amount excluding fifty million dollars in each allocated to metropolitan areas pursuant of Fiscal Years 1975 and 1976 as specified to $ 570.101, the Secretary will allocate in § 570.104, will be allocated to metro- to each urban county a basic grant politan areas, with the balance of twenty amount determined by: percent allocated to nonmetropolitan (i) Calculating the total amount that areas, for community development block would have been allocated to all metrogrants in metropolitan and nonmetro- politan cities and urban counties topolitan areas, respectively.

gether under paragraph (a)(1) of this

section if data pertaining to the popula$ 570.102 Basic grant amounts.

tion, extent of poverty, and extent of (a) Metropolitan cities. (1) of the housing overcrowding in all urban counamount allocated to metropolitan areas ties were included in the numerator of

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