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of funds is included in an approved application.

(ii) Non-Entitlement communities. Surplus funds resulting from a financial settlement under this section will be made available to a unit of general local government which receives no entitlement amount under Subpart B upon approval of an application as specified in Subpart E, Applications and Criteria for Discretionary Grants.

(2) Release from contractual obligations under Title I of the Housing Act of 1949. Prior to financial settlement of the project, the Secretary will negotiate with the LPA the requirements which must be met for completion of the project under the contract executed under Title I of the Housing Act of 1949, as amended, in accordance with $ 570.803. $ 570.802 Projects which cannot be

completed without additional capital

grants. (a) Use of funds by locality. Units of general local government may use funds made available under this part to complete projects funded under Title I of the Housing Act of 1949, as amended, as specifically authorized by $ 570.200(a)


programs (NDP) pursuant to Title I of the Housing Act of 1949, as amended to the programs undertaken pursuant to this Part. § 570.801 Projects which can be com

pleted without additional capital

grants. (a) Urban renewal and NDP projects which can be completed without additional capital grants may continue to completion under the existing contracts executed under Title I of the Housing Act of 1949, as amended.

(b) At the request of the local public agency (LPA) carrying out the project, with the approval of the governing body of the unit of general local government in which the project is located, the Secretary may approve a financial settlement of the project if a surplus of capital grant funds will result after full repayment of temporary loan indebtedness. The form of the request for financial settlement will be prescribed by the Secretary. Financial settlements so requested shall be made at the discretion of the Secretary.

(1) Disbursement and use of surplus funds. Surplus grant funds remaining after financial settlement will be made available to the unit of general local government for use in accordance with the provisions of this Parü.

(i) Entitlement recipients. Entitlement recipients may use surplus funds for activities previously approved in their application as specified in Subpart D. If activities not previously approved are to be undertaken with surplus funds, the recipient may either follow the amendment policy as specified in § 570.305, or it may include the proposed use of surplus funds in the first application for entitlement funds which is submitted after financial settlement. If the unit of general local government wishes to stage the use of surplus urban renewal funds over a period of years, it may request the Secretary to make the funds available on a schedule specified by the unit of general local government. In this event, the application or amendment must include only the surplus funds to be used in the program year covered by the application. The use of remaining surplus funds will be governed by subsequent years' applications. Amounts not identified in the application or amendment will be obligated to the recipient by contract and reserved until the use

(b) HUD review of locality's intended use of funds. The Secretary will review the application submitted pursuant to $ 570.303 to determine whether the unit of general local government's use of funds will be sufficient to protect the Federal Government's financial interest in existing urban renewal projects. The Federal Government's financial interest in the existing urban renewal projects shall be determined to be sufficiently protected if the unit of general local government's proposed use of funds will ultimately result in full repayment of outstanding temporary loans plus accrued interest. In the event that full repayment of outstanding temporary loans is proposed to be accomplished over a period of more than three years, the proposed use of funds for payment of interest on outstanding temporary loans until full repayment can be accomplished shall be reviewed. If he determines that the unit of general local government's intended use of funds does not sufficiently protect the Federal Government's financial interest in the existing urban renewal project, the Secretary may, after consultation with the chief executive of the unit of general

local government and the local public ilable form so that they fully understood agency, deduct up to 20 percent from the the reason for their displacement and the unit of general local government's en- relocation rights, payments, and assist titlement funds in any fiscal year for ance to which they were entitled; application to outstanding temporary (2) All displaced persons received forloans plus accrued interest.

mal notice establishing their eligibility (c) Deductions at the request of the for relocation payments; locality. The Secretary is authorized to (3) All displaced families and individmake deductions from a unit of general uals were provided a reasonable number local government's entitlement for re- of referrals to comparable decent, safe, payment of temporary loans plus accrued and sanitary housing and were provided interest if the local public agency carry- assistance in obtaining such housing; ing out the project submits to the Secre- (4) All displaced businesses, organizatary a request which is concurred in by tions, and farm operations were offered the governing body of the unit of general assistance in obtaining replacement loci local government.

tions; (d) Release from contractual obliga- (5) All displaced persons were protions under Title I of the Housing Act of vided appropriate advisory services in 1949. Prior to financial settlement of the order to minimize hardships to such perproject, the Secretary will negotiate with sons in adjusting to relocation; the LPA the requirements which must (6) All displaced persons received all be met for completion of the project the relocation payments to which they under the contract executed under Title were entitled in a prompt manner; I of the Housing Act of 1949, as amended, (7) Displacement and relocation acin accordance with $ 570.803.

tivities under the community develop

ment program were coordinated with $ 570.803 Requirements for Comple

those of other governmental agencies in tion of Projects Prior to Financial

the community carrying out programs Settlement [Reserved).

resulting in concurrent displacement; Subpart 1-Program Management and $ 570.900 Performance Standards.

(8) A locally developed administra

tive review process provides full opporPerformance standards are the stand

tunity for displaced persons to obtain reards against which the Secretary will

consideration of determinations as to determine whether the recipient has

their eligibility for, or the amount of, a complied with the specific requirements

relocation payment made and consideraof this part. Performance standards are

tion of complaints regarding the adeoperational program requirements com

quacy of replacement housing. The procplementing the simplified application

ess assures that complaints of displaced review requirements of this part which

persons are handled in a timely and reare designed to provide financial assist

sponsive manner, that conflicts are reance, with maximum certainty and min

solved fairly and expeditiously, that the imum delay, upon which communities

recipient will review determinations can rely in their planning. The Secre

upon request, and that an appeal may be tary's review of performance against the

made to the HUD Area Office when standards set forth in this section will

necessary. serve as the basic assurance that grants

(b) Acquisition. Local acquisition are being used properly to achieve the

policy complies with Title III of the objectives of this part. The Secretary Uniform Relocation Assistance and Real may, either during or after performance,

Property Acquisition Policies Act of 1970. review, monitor, and evaluate the recipi

(c) Equal opportunity. (1) The recipient's community development program. ent will be required to document the The Secretary will use the following actions undertaken to assure that no standards in determining compliance person, on the ground of race, color, nawith this part of the recipient's perform- tional origin, religion, or sex, has been ance, including determinations under

excluded from participation in, denied $ 570.911.

the benefits of, or otherwise subjected to (a) Relocation. The recipient has es- discrimination under any activity funded tablished operating procedures under under this Part. Such documentation which:

should indicate: (1) All displaced persons were pro- (i) Any methods of administration devided sufficient information in an assim- signed to assure that no person, on the ground of race, color, national origin or the development of the application prior sex, has been excluded from participa- to submission; (iv) when and how any tion in, denied the benefits of, or other- technical assistance the recipient may wise subjected to discrimination under choose to provide, will be made available any activity funded under this part. to assist citizen participants to under

(ii) Criteria used in selecting sites for stand program requirements such as public facilities designed to further the Davis-Bacon, environmental policies, accomplishment of the objectives of the equal opportunity requirements, relocaprograms or activities conducted under tion provisions and like requirements, in this Part with respect to any identifiable the preapplication process; and (v) the segment of the total group of lower-in- nature and timing of citizen participation come persons in the community.

in the development of any future com(ii) Any actions undertaken to over- munity development program amendcome the effects of conditions which may ments, including reallocation of funds have resulted in limited participation, in and designation of new activities or the past, in programs or activities of the locations. type funded under this Part, by any iden- (2) A local process has been developed tifiable segment of the total group of which permits citizens likely to be aflower-income persons in the community. fected by community development and

(iv) Any actions undertaken to pro- housing activities, including low and mote equal employment opportunities for moderate income persons, to articulate any identifiable segment of the total needs, express preferences about progroup of lower-income persons in the posed activities, assist in the selection community.

of priorities, and otherwise participate in (2) The recipient will be required to the development of the application, and document the actions undertaken to fur- have individual and other complaints ther fair housing. Such documentation answered in a timely and responsive should indicate:

manner. (Applicants may wish to pro(1) Any actions undertaken to encour- vide bilingual opportunities for citizen age the development and enforcement of participation, if feasible, where signififair housing laws.

cant numbers of non-English speaking (ii) Any actions taken to prevent dis- persons are likely to be affected by comcrimination in housing and related facili- munity development program activities.) ties developed and operated with assist

§ 570.905 Reports to be submitted by ance under this part, and in the lend

recipient. ing practices, with respect to residential property and related facilities, of lend

(a) General. Recipients will submit ing institutions.

such reports, including litigation reports (iii) Any action taken to assure that

as the Secretary may require. land use and development programs

(b) Financial management. Each refunded under this part provide greater

cipient shall submit such financial rehousing opportunities throughout the

as are deemed necessary by the planning area for any identifiable seg

Secretary, consistent with the requirement of the total group of lower-income

ments of Federal Management Circular persons in the community.

74-7. (iv) Any site selection policies adopted

(c) Relocation and acquisition reports. to promote equal opportunity in housing.

Recipients will report at least annually (d) Citizen participation. (1) A local

on a form prescribed by the Secretary citizen participation plan has been de

on numbers of persons and businesses reveloped and made public. The recipient

located, numbers remaining in the reshall specify in the plan how it intends

location workload, and a general breakto meet the citizen participation re

down of relocation costs and on real quirements of this part, inclusive of a

property acquired. timetable specifying: (1) When and how

(d) Equal opportunity reports. Recipinformation will be disseminated con

lents shall submit such reports as may cerning the amount of funds available for be necessary, pursuant to the rules and projects that may be undertaken, along regulations under Title VI, Civil Rights with other important program require- Act of 1964; Title VIII, Civil Rights Act ments; (ii) when in the initial stage of of 1968; Section 3 of the Housing and the planning process public hearings will Urban Development Act of 1968; Section be held; (iii) when and how citizens will 109 of the Act, Execuvtie Order 11246 as have an opportunity to participate in amended, and Executive Order 11063, or

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any reports as may be further prescribed 8 570.907 Records to be maintained by by the Secretary.

recipient. $ 570.906 Annual performance report.

(a) Financial management. Recipients (a) Submission. Prior to the begin

are to maintain records, in accordance

with Federal Management Circular 74–7, ning of fiscal year 1977 and prior to each

Attachment G, which identify adequately fiscal year thereafter, each recipient shall submit a performance report.

the source and application of funds for (a) Submission. Beginning with the

grant supported activities. These records

shall contain information pertaining to application submitted in Fiscal Year 1976, and each fiscal year thereafter,

grant awards and authorizations, oblieach recipient shall submit a perform

gations, unobligated balances, assets,

Habilities, outlays, and income. ance report. (b) Contents-(1) Progress on planned

(b) Citizen participation. Recipients activities. The recipient shall indi

shall maintain the following records with cate, on a form prescribed by HUD, prog

respect to the citizen participation reress on each of the activities that were

quirements outlined in § 570.900(d): to be carried out pursuant to its ap

(1) narrative or other records describproved application for the previous fiscal

ing the process used to inform citizens

concerning the amount of funds availyear, including requirements described in $ 570.305(b).

able for proposed community develop(2) Recipient Assessment. The per

ment and housing activities, the range of formance report must include the re

activities that may be undertaken, and cipient's assessment of the effectiveness

other important program requirements. of the program of community develop

(2) records of public hearings held to ment activities conducted under this

obtain the views of citizens on commuPart in meeting the objectives of this

nity development and housing needs.

(3) narrative or other records of the Part and the needs and objectives identified in the recipient's previous fiscal year

opportunities provided citizens to parapplication for funding under this part.

ticipate in the development of block (3) Housing Assistance Provided. If

grant applications. the recipient's last application indicated

(c) Other resources. All recipients, that any housing assistance planned

under the provisions of $ 570.303(b), are under $ 570.303(c)(3) was to be provided,

required to set forth a community dethe performance report should indicate,

velopment program which includes acon a form prescribed by HUD, progress

tivities to be undertaken to meet identiin providing such assistance.

fied community development needs and (4) Listing of Environmental Reviews.

objectives and indicates resources other The performance report should indicate,

than block grants which are expected to on a form prescribed by HUD, the nature

be made available toward meeting identiand status of all environmental reviews,

fiec. needs and objectives. Records shall including historic preservation reviews,

be maintained in a form prescribed by and status of all environmental reviews

HUD which indicate what amount of the required on projects funded pursuant to

resources indicated in the previous apthis part.

plication were annually provided for (5) Equal Opportunity. The recipient

community development activities and shall indicate compliance with the per

for which activities they were used. formance standards outlined in § 570.900

(d) Relocation. The recipient shall (c).

maintain a management control mecha(6) Citizen Participation. The recipient

nism that indicates the overall status of shall indicate compliance with the per

the relocation workload and a separate formance standards outlined in § 570.900

relocation record for each person, busi(d).

ness, organization, and farm operation (c) Public information. The recipient

displaced or in the relocation workload will, at the time of submission of the as a result of activities as described in annual performance report, make public 8 570.602(a). Each separate record shall notice of the availability of the report include: for examination by the public. The recip- (1) Name, address, and relocation ient will keep copies of the performance needs of person(s) to be displaced; a dereport for release as public information scription of the services and assistance and make such copies available to the provided; a statement of the type and public at no charge.

amount of relocation payments made;

and the location and a description of the replacement dwelling or nonresidential accommodation to which the person(s) relocated.

(2) The pertinent claim form(s) and supporting documentation submitted by the displaced person and a copy of the worksheet or other document used by the recipient to determine eligibility for and the amount of the payment(s) made.

(3) A copy of any grievance filed by the displaced person, a description of the actions taken to resolve it, and a copy of all pertinent determinations.

(e) Acquisition. Recipients' files shall contain the following records concerning real property acquisition governed by the provisions of $ 570.603:

(1) Invitation to owner to accompany appraiser during inspection.

(2) Property appraisal.

(3) Statement of basis for the determination of just compensation.

(4) Written offer of just compensation.

(5) Purchase agreement, deed, declaration of taking, and any similar or related documents involving conveyance.

(6) Settlement cost reporting statement.

(7) Notice to surrender possession of premises.

(f) Equal opportunity. (1) The recipient shall maintain demographic data by census tract. The data shall include prevailing population characteristics relating to race, ethnic group, sex, age, and head of household.

(2) The recipient shall maintain racial, ethnic, and gender data showing the extent to which these categories of persons have participated in, or benefited from, programs and activities funded under this Part.

(3) The recipient shall maintain data which records its affirmative action in equal opportunity employment, including but not limited to employment. upgrading, demotions, transfers, recruitment or recruitment advertising, layoffs or terminations, pay or other compensation, and selection for training.

(4) The recipient shall maintain data which records its good faith efforts to identify, train and/or hire lower-income residents of the project area and to utilize business concerns which are located in or owned in substantial part by persons residing in the area of the project.

(g) Labor Standards. Recipients shall maintain records regarding compliance of all contractors performing construc

tion work with grant funds, with the obligations imposed upon them by § 570.605.

(h) Unavailability of other Federal assistance. Recipients using funds provided under this part for the provision of public services as described in $ 570.200(a) (8) or for the acquisition, construction, reconstruction, or installation of flood and drainage facilities as described in $ 570.200(a) (2), shall maintain records of compliance with the procedures as set forth in $ 570.607 indicating that assistance for such facilities under other Federal laws or programs is unavailable.

(i) OMB Circular A-95 comments. The recipient shall retain copies of all letters, correspondence, or other records received as a result of review of the community development program application by the appropriate clearinghouse pursuant to the provisions of OMB Circular A-95.

(j) Record-keeping period. Records required to be retained under this section shall be kept for a period of three years, or such longer period as HUD may require in specific cases. $ 570.908 HUD Reports [Reserved). 8 570.909 Secretarial review and moni

toring of recipient's performance. (a) General. The Secretary will review each recipient's annual performance. The review of the recipient's performance will take place where possible, prior to approval of the succeeding year's application for grant.

(b) Objective. The review system is designed to determine:

(1) Whether the recipient has carried out a program substantially as described in its application;

(2) Whether that program conformed to the requirements of this part and other applicable laws and regulations;

(3) Whether the recipient has demonstrated a continuing capacity to carry out in a timely manner the approved community development program. To determine the recipient's continuing capacity, the Secretary will consider:

(i) The recipient's performance in moving activities into execution or accomplishing activities undertaken as a part of the community development program in substantial conformance with the recipient's schedule or timetable for its activities; and

(ii) The recipient's performance in utilizing its resources, including funds

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