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(V) The applicant has attached or en in writing that the application has been closed any comments or recommenda approved, partially approved, or disaptions made by or through State and area proved. In the event the Secretary has wide clearinghouses or has stated that no not mailed a notification to the applicant comments recommendations have within seventy-five days from the date of been received within the 45-day review acceptance of the application that it has period.
been disapproved, the application shall (2) If the application is accepted in be deemed to be approved. If the applicaaccordance with the preceding para tion is disapproved, the applicant shall be graph, the date of acceptance of the ap informed of the specific reasons for displication will be the date of receipt of approval. the application in the HUD field office, (d) Approval of less than full entitleand the applicant will be so notified in ment. The Secretary may adjust the enwriting. If the application is not ac titlement amount to the extent identi. cepted for review, the applicant will be fied in an application submitted under so notified in writing, and will be advised this part designated for an activity or of the specific reasons for nonacceptance. activities that are not eligible under
(b) Scope of review. (1) The Secretary 8 570.200, and the deficiency has not been will normally base his review upon the corrected prior to the expiration of the applicant's certifications, statements of 75-day review period for the applicafacts and data and other programmatic tion. Funds not approved under the predecisions. The Secretary reserves the ceding sentence will be reallocated purright, however to consider substantial suant to g 570.107. evidence which contradicts or challenges (e) Conditional approval. The Secrethe certifications, or significant facts and tary may make a conditional approval, data, in accordance with the review cri in which case the full entitlement teria in this section and to require addi amount will be approved but the utilizational information or assurances from tion of funds for affected activities will the applicant as warranted by such be restricted. Conditional approvals may evidence.
be made only where local environmental (2) Based on that review, the Secre reviews under $ 570.604 have not yet been tary will approve the application unless : completed, where the requirements of
(i) On the basis of significant facts $ 570.607 regarding the provision of puband data, generally available (whether lic services or flood or drainage facilities published data accessible to both the ap have not yet been satisfied, or where the plicant and the Secretary, such as census provisions of $ 570.802 are exercised. data, or other data available to both the
Subpart E-Applications and Criteria for applicant and the Secretary, such as re
Discretionary Grants cent local, areawide or State comprehensive planning data) and pertaining to
SOURCE: 40 FR 5952, Feb. 7, 1975, unless
otherwise noted. community and housing needs and objectives, the Secretary determines that $ 570.400 General. the applicant's description of such needs
(a) Applicability of rules and regulaand objectives is plainly inconsistent with such facts or data, or
tions. The policies and procedures set
forth in Subpart A, B, C, F, G, H, I, and (il) On the basis of the application, the
J of this part shall apply to this subpart Secretary determines that the activities
and to the funds described in § 570.104, to be undertaken are plainly inappropri
except to the extent that they are specifiate to meeting the needs and objectives
cally modified or augmented by the conidentified by the applicant, or
tents of this subpart, including specified (iii) The Secretary determines that
exemptions described herein. The HUD the application does not comply with Environmental Review Procedures conthe requirements of this part or other
tained in 24 CFR Part 58 also apply to applicable Federal laws, or proposes ac this subpart, unless otherwise specifically tivities which are ineligible under this provided herein. part.
(b) Preapplications. Preapplications (c) Approval or disapproval of appli will be accepted for 'metropolitan and cation. Within seventy-five days of the nonmetropolitan discretionary balances date of receipt of the application, or at described in $ 570.402. Applicants are such earlier time as review is completed, encouraged to submit preapplications the Secretary will notify the applicant but, because of the time constraints in
Fiscal Year 1975, a full application that (2) Scope of application. An applicawas not preceded by a preapplication will tion may include any number of eligible nevertheless be considered without activities up to the maximum dollar prejudice by HUD. The purpose of the amount established by the Secretary for preapplication is basically: (1) To deter applications submitted under this submine how well the application compares part. An application may be for any with similar applications from other reasonable period of time necessary to jurisdictions, and (2) to discourage ap complete the proposed activities. For plications which have little or no chance new activities to be carried out with a for Federal funding before applicants discretionary grant the applicant shall incur significant expenditures for pre apply for discretionary funds in an paring an application.
amount which, along with any other re(i) Submission requirements. Preap sources that may be available, will be plications shall be submitted on HUD adequate to complete the activities. forms to the appropriate HUD Area Of While a recipient remains eligible for fice. The preapplication shall consist of discretionary grant funding in subsea brief description of the applicant's quent years, an applicant shall not ascommunity development needs, the ac sume that additional funding will be tivities proposed to meet those needs, and available in subsequent years to conthe general location and estimated cost tinue or expand activities. An applicaof the proposed activities. The appli tion may not, however, be only for plancant's statement shall address the specific ning purposes, as defined in $ 570.200(a) criteria under which it requests priority (12). consideration for funding under $ 570. (3) Application submission dates. The 402(b).
Secretary will establish from time to time (ii) HUD review of preapplications. the earliest and latest dates for submisHUD will review preapplications based sion of applications for discretionary upon the appropriate criteria set forth grants for each fiscal year. For Fiscal in this subpart, to determine how well an Year 1975 the earliest and latest dates application is likely to compete with shall be as follows: other applications for the same dis (i) General purpose funds for metrocretionary funds submitted by other politan and nonmetropolitan areas, jurisdictions. Applicants will be ad March 15, 1975 through May 15, 1975; vised of HUD's determinations and (ii) Urgent needs fund-January 1, judgments on the preapplication, and of 1975 through May 15, 1975; the availability of funds for that par (iii) Secretary's fund: ticular fiscal year. Notwithstanding the (A) New communities--February 1, nature of such advice, any eligible appli 1975 through May 15, 1975; cant may submit an application under (B) Areawide projects—reserved; the provisions of this subpart.
(C) Guam, the Virgin Islands, Ameri(3) Preapplication submission dates. can Samoa, and the Trust Territory of The Secretary will establish from time the Pacific Islands—February 1, 1975 to time the earliest and latest dates for through May 15, 1975; submission of preapplications for each (D) Innovative projects-February 1, fiscal year. For Fiscal Year 1975, the 1975 through April 20, 1975; earliest date for submission of a preap (E) Federally recognized disastersplication shall be January 1, 1975; the January 1, 1975 through June 30, 1975; latest date shall be March 1, 1975.
and (c) Applications—(1) Submission re (F) Inequities—February 1, 1975 quirements. Applications shall be sub through May 15, 1975. mitted on HUD forms to the appropriate
(d) Meeting the Requirements of OMB HUD Area Office. Specific submission re
Circular No. A-95— (1) Preapplications. quirements are contained in the follow
Applicants must comply with the proceing sections of this subpart which de
dures set forth in OMB Circular No. A-95 scribe each: discretionary fund. To the
which include the requirements of paramaximum extent possible, and with the
graph 7, Part I, for submission of a preprior concurrence of the Secretary, documentation submitted in support of an
application to the appropriate State and application previously submitted for areawide clearinghouses at the same time funding under this part will be accepted that it is submitted to HUD. Although and need not be résubmitted with an HUD has up to 45 days to respond to a application for a discretionary grant. preapplication, the Department expects
health and safety or to avert or lessen cants, giving priority to the following: the threat of a major disaster, or (2) in Applications for funds available under the determination of a Federal agency this subpart shall be reviewed by the requires disaster or emergency assist Secretary in accordance with the followance pursuant to the statutory author ing criteria: ity of such Federal agency.
(1) Funding under this subpart is nec(b) Eligible Applicants. Eligible appli essary to correct a technical error in cants are States, and units of general the computation of a locality's entitlelocal government as defined in $ 570.3 ment amount. (v). For the purpose of this section, the (2) Funding under this subpart is second sentence in § 570.3(v) includes needed by an applicant,
meeting the crithose entities described in $ 570.403(b) teria as specified in § 570.401(b) for ur(1), (2) and (3).
gent needs funds. (c) Criteria for Funding. Within the (3) Funding under this subpart is limits of available funds, applications necessary to compensate for the fact that will be funded on the basis of the follow the applicant's hold harmless amount as ing criteria:
calculated pursuant to $ 570.103(c) is (1) Severity and magnitude of the fed significantly lower than the average erally recognized disaster, with priority amount of funds approved by HUD for given to needs caused by Presidentially applicable programs in such governmendeclared major disasters.
tal unit during the fiscal years immedi(2) Community development needs ately preceding and immediately followidentified which are essential for the im ing the base period of Fiscal Years 1968 mediate restoration or maintenance of through 1972, and the applicant is subcommunity health, safety, or economic ject to the phase-in provisions of stability and resources are not available $ 570.102(c). from other sources to meet these com Grants may also be made under this munity development needs in a timely section whenever implementation of the fashion.
provisions of $ 570.105 regarding the (d) Application Requirements. An ap qualification of urban counties results in plication should be submitted within 120 a significant decrease in the anticipated days after either the Presidential dec levels of funding available for discrelaration or other Federal recognition tionary grants in metropolitan areas in that disaster or emergency assistance is accordance with $ 570.104(c) (1). required. The application shall describe (d) Application requirements. Applithe emergency needs, the proposed pro cants shall meet all application requiregram of activities, sources of funds and ments in $ 570.303, the level of funding requested. If the emergency nature of the needs requires,
Subpart F-Grant Administration satisfaction of selected application re
$ 570.500 Designation of public agency. quirements may be postponed or waived
One or more public agencies, including by the Secretary. Applications shall be
existing local public agencies, may be submitted to the appropriate HUD Area designated by the governor of a State or Office in a form and manner prescribed the chief executive officer of a unit of by HUD to ensure coordination with re general local government to undertake a spect to other disaster relief and emer Community Development Program in gency measures undertaken or being whole or in part. Notwithstanding such considered.
designations, the State or unit of gen
eral local government shall be the ap$ 570.408 Inequities funds.
plicant, and, in the absence of special (a) General. Funds are available circumstances in which there is a legal under this subpart to correct in whole or incapacity on the part of the applicant in part inequities resulting from the al to accept funds for eligible activities, the location provisions of Section 106 of the grant agreement shall be between HUD Act.
and the State or unit of general local (b) Eligible applicants. Eligible appli- government. Such designations do not recants are States, and units of general lieve the State or unit of general local local government as defined in the first government of its responsibilities in assentence of $ 570.3(v) or in 8 570.403(a). suring the administration of the program
(c) Criteria for selection. The Secre in accordance with all HUD requiretary shall make grants to eligible appli- ments, including these regulations.
8 570.501 Grant agreement.
isfied prior to authorized use of funds Upon approval of the application, the
by the recipient for affected activities. Secretary will authorize the execution of § 570.505 Financial management sysa grant agreement. These regulations tems. become a part of the grant agreement.
Each recipient shall be required to 8 570.502 Method of payment.
maintain a financial management sys(a) Advance payments. Advance pay
tem which complies with Appendix G ments will be made by either a letter of
of Federal Management Circular 74–7,
"Standards for Grantee Financial Mancredit or by U.S. Treasury checks to recipients when the following conditions
agement Systems" or use the existing
facilities of a constituent municipal, are met: (1) The recipient has demonstrated to
county or State government (or unit the Secretary, initially through certifica
thereof) to perform the necessary fiscal
and tion in a form prescribed by HUD and
accounting functions for the
grantee. subsequently through performance, its willingness and ability to establish pro § 570.506 Program income. cedures that will minimize the time elaps
(a) Units of general local government ing between the transfer of funds to it
shall be required to return to the Fedand its disbursement of such funds;
eral Government interest (except for in(2) The recipient's financial manage
terest described in paragraph (c) of this ment system meets the standards for
section) earned on grant funds adfund control and accountability pre vanced by Treasury check or letter of scribed in Appendix G of Federal Man
credit in accordance with Appendix E agement Circular 74-7.
of Federal Management Circular 74–7. (b) Reimbursement. Recipients which
(b) Proceeds from the sale of perdo not meet the above conditions will
sonal property shall be handled in acreceive grant payments by U.S. Treasury
cordance with Appendix N of Federal checks on a reimbursement basis.
Management Circular 74–7 pertaining $ 570.503 Disbursement of advances to Property Management, against entitlement.
(c) All other program income earned Advances against entitlement made
during the grant period, including pro
ceeds from the disposition of real propavailable pursuant to $ 570.302 will be
erty, payments of principal and interest made through the same disbursement
on rehabilitation loans, and interest method as is appropriate for the recipient during the first program year.
earned on revolving funds, shall be re
tained by the recipient and in accordance 8 570.504 Release of funds pursuant to with the grant agreement, shall be added $ 570.603 and 8 570.607.
to funds committed to the program and Recipients may spend funds for proj
be used in accordance with the provisions ects requiring environmental review pur
of this part. suant to $ 570.603, and for public services
(d) Recipients shall record the reactivities or for flood and drainage fa
ceipt and expenditure of revenues recilities for which other Federal funds lated to the program (such as taxes, spemust be sought pursuant to $ 570.607,
cial assessment, levies, fines, etc.) as a only after notification to HUD that the
part of the grant program transactions. requirements of these sections have been $ 570.507 Procurement standards. met and receipt of authorization to spend
Recipients shall comply with the refunds for affected activities. If recipi
quirements of Appendix O of Federal ents receive funds through a letter of Management Circular 74–7, "Procurecredit, the letter of credit shall, at the ment Standards." time of approval of the application, be
$ 570.508 Bonding and insurance. in the amount of all grant funds approved in the application including those
Recipients shall comply with the reportions subject to the environmental
quirements of Appendix B of Federal review provisions of 8 570.603, the re
Management Circular 74–7, "Bonding
and Insurance." quirements of $ 570.607 regarding activities for which other Federal funds must $ 570.509 Audit. be sought, and the provisions of Subpart (a) The Secretary, the Comptroller I. However, these provisions must be sat General of the United States, or any of
their duly authorized representatives, Subpart G-Other Program Requirements shall have access to all books, accounts,
$ 570.600 Limitations on local option records, reports, files, and other papers
activities and contingency accounts. or property of recipients or their subgrantees and contractors pertaining to
No more than ten per centum of the funds provided under this part for the
estimated costs which are expected to be
incurred during any program year may purpose of making surveys, audits, examinations, excerpts and transcripts.
be designated for unspecified local option (b) Recipient financial management
activities, which are eligible pursuant to systems shall provide for audits to be
Subpart C, or for a contingency account made by the recipient or at his direction
for activities designated by the applito determine, at a minimum, the fiscal
cant pursuant to 8 570.303(b). integrity of financial transactions and
[39 FR 40146, Nov. 13, 1974; 40 FR 2582,
Jan. 14, 1975) reports, and the compliance with laws, regulations and administrative require § 570.601 Nondiscrimination. ments. The recipient will schedule such
(a) Discrimination prohibited. Secaudits with reasonable frequency, usually
tion 109 of the Housing and Community annually, but not less frequently than
Development Act of 1974 requires that no once every two years, considering the
person in the United States shall on the nature, size, and complexity of the ac
ground of race, color, national origin or tivity. Audits performed by, or at the di
sex, be excluded from participation in, rection of recipients, for activities fund
be denied the benefits of, or be subjected ed under this part may be paid for from to discrimination under, any program or community development block grants, acti:ity funded in whole or in part with but the responsibility for payment of community development funds made these audits rests with the recipient. available pursuant to this Part. For pur
(c) The Secretary shall, at least on poses of this section "program or activan annual basis, audit or arrange for the
ity” is defined as any function conductaudit of recipients as appropriate. The
ed by an identifiable administrative unit results of audits made by recipients
of the recipient, or by any unit of gov
ernment or private contractor receiving which follow criteria prescribed by the Secretary will be given full considera
community development funds or loans
from the recipient. “Funded in whole or tion in determining the frequency and
in part with community development scope of audits by the Secretary.
funds” means that community develop§ 570.510 Retention of records.
ment funds in any amount in the form
of grants or proceeds from HUD guarFinancial records, supporting docu
anteed loans have been transferred by ments, statistical records, and all other
the recipient to an identifiable adminrecords pertinent to the grant program istrative unit and disbursed in a program shall be retained by the recipient for a
or activity. period of three years from the date of (b) Specific discriminatory actions the submission of the annual perform prohibited. (1) A recipient may not, unance report, except as follows:
der any program or activity to which the (a) Records that are the subject of regulations of this part may apply, diaudit findings shall be retained for three rectly or through contractual or other years after such findings have been re arrangements, on the ground of race, solved.
color, national origin, or sex: (b) Records for nonexpendable prop
(i) Deny any facilities, services, finan
cial aid or other benefits provided under erty which was acquired with Federal
the program or activity. grant funds shall be retained for three
(ii) Provide any facilities, services, fiyears after its final disposition.
nancial aid or other benefits which are (c) Records for any displaced person
different, or are provided in a different shall be retained for three years after he
form from that provided to others under has received final payment.
the program or activity. 8 570.511 HUD administrative services (iii) Subject to segregated or separate
for rehabilitation loans and grants. treatment in any facility in, or in any [Reserved]
matter or process related to receipt of & 570.512 Grant close out procedures.
any service or benefit under the pro[Reserved]
gram or activity.