5 (a) If the project cannot be financed without the requested Federal assistance, the application will be awarded the following number of points Ability to finance the project on the basis of revenue bonds is computed at 6 percent interest over 25 years. If the estimated net revenue in an average year exceeds the total debt service costs for that year by a factor of 1.25, it is assumed that the project can be financed without the requested Federal aid, and the points will not be awarded. (b) Relative median family income: The median family income of the service area of the proposed project compared to the median family income of the State in which the project is to be located is: (Select one): Financing by other units of governments includes grants, loans, or contributions to the construction of the project by units of general- or special-purpose governments other than the applicant and a State. § 556.10 Housing. (The value of this category is the sum of the values of paragraphs (a) and (b) of this section.) (a) Decent, safe, and sanitary housing. (Value of this element is the sum of the values of subparagraphs (1) to (3) of this paragraph.) The project is necessary for the (1) Maintenance of existing decent, safe and sanitary housing--- (2) Maintenance of existing, or assistance to proposed, decent, safe, and sanitary low and moderate income housing 2 (3) Assistance of significant areas of housing that is less than decent, safe, and sanitary---"Decent, safe, and sanitary housing” refers to housing that is in accordance with local housing standards in the area in which the project is to be located. "Low- and moderate-income housing” refers to housing with a fair market value that is equal to or less than the resultant of multiplying the section 235236 maximum income for a family of four, as established by the Secretary for the county in which the project is located, by a factor of 3. “Low- and moderate-income housing" also refers to housing with an annual rental equal to or less than one-third of such section 235-236 maximum income. (b) Accessibility of housing. (Select one): Percent of housing in project area that will be accessible on a nondiscriminatory basis to families and individuals with low and moderate income is: (1) 81-100 percent.. 10 8 --- 4 2 As used herein, "nondiscriminatory" means free of legal or social constraints arising from race, creed, color, and national origin. The proposed project is necessary for: (Select one): (a) Elimination of a potential public health hazard....... (b) Elimination of a demonstrated public health hazard.. 13 A "potential public health hazard” refers to a hazard which if not corrected can be expected to result in a dangerous lowering of environmental quality and health standards; e.g., malfunctioning septic tanks, polluted individual wells, or areas subject to inundation not more often than every 5 years but at least once every 10 years. A "demonstrated public health hazard" refers to hazards from existing sources which if not corrected, could result in disease of epidemic proportions (which sources are evidenced by epidemiological studies and reports), contamination of domestic water sources from any cause, the need to import water for any cause, and the inundation of the area more frequently than every 5 years. A "critical public health hazard” refers to a demonstrated public health hazard which must be resolved immediately, e.g., a desperate need for water, control of demonstrated causes of diseases of epidemic proportions, and the inundation of the area more frequently than once per year. § 556.14 Local job and business opportunities. (Value of this category is the sum of paragraphs (a) to (e) of this section.) (a) The project is needed for existing or proposed commercial or industrial development.. (b) During the construction phase of 2 2 2 (a) Preliminary applications that receive a comparatively high rating are placed on the potential project list by the regional or area office having jurisdiction over the geographic area to which the application relates. Then, depending upon the relative rating of the preliminary application among other such applications submitted to the area or regional office within any given period, the applicant may be asked to submit further application material, with supporting documentation, so that a final decision on the grant may be reached. Such application material is subject to further reviews to determine compliance of the application with basic eligibility and technical requirements. (b) The relative rating of the preliminary application and remedial action by applicants are determined as follows: A minimum value that will permit funding within the area office is to be determined on the basis of aggregate scores of rated applications. When an SF-101 fails to receive the prescribed score for inclusion of the project on the potential project list, the application and supporting documents will be returned to the applicant with advice as to areas of deficiency. Remedial action regarding the deficiencies must be undertaken before the proposal may be reconsidered. publicly supported community development activities.. 561.8 1 to 5 561.10 Criteria for evaluating applications. Availability of credit to applicant. [Reserved]. (a) Purpose. This part sets forth criteria and procedures to be used in preliminary evaluation of applications for Federal loan assistance to local public bodies and agencies under the Public Facility Loans Program. (b) Procedures. (1) Submissions will first be reviewed against four prerequisites. If any of these prerequisites are not met, the application will be rejected. If the application meets all prerequisites, it will be evaluated against the point rated criteria and assigned a point rating. (2) Then, depending upon the relative rating of the application among other such applications pending in the area office, the applicant may be asked to submit further application material, with supporting documentation so that a final decision on the loan may be reached. Such application material is subject to reviews to determine compliance of the application with basic eligibility and technical requirements. (3) If an application does not receive a high enough point rating to qualify for funding as compared to other pending applications, or if the application cannot meet basic eligibility or technical requirements, the application and any supporting documents will be returned to the applicant with advice as to the areas of deficiency. Remedial action regarding the deficiencies must be undertaken before the proposal may be reconsidered. (4) The Department will only accept applications for processing under this program involving works for the storage, treatment, purification, or distribution of water; and sewage, sewage treatment, and sewer facilities. The provisions of these 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. (5) The Department reserves the right to negotiate the modification of the scope of the proposed undertaking and/or the amount of financial assistance requested. § 561.2 Definitions. As used in the regulations in this part: (a) "Applicant" means a legal entity, eligible under sections 201-204 of the Housing Amendments of 1955, 69 Stat. 642-644, 42 U.S.C. 1991-1494, which is applying for Federal assistance under the Public Facility Loans Program. (b) "Locality" means the political jurisdiction or jurisdictions having general purpose government powers upon whose behalf the application for Federal assistance has been submitted. (c) "Low and moderate income" means an income level which is less than the maximum income eligibility level for a family of four for the county in which the project is to be located under either of the subsidized housing programs authorized by section 235 or 236 of the National Housing Act, as amended 82 Stat. 476, 477, 498, 12 U.S.C. 1715z, 1715z-1. (d) "Low- and moderate-income housing" refers to housing with a fair market value that is equal to or less than the resultant of multiplying the section 235-236 maximum income for a family of four, as established by the Secretary for the county in which the project is located, by a factor of 3. "Low- and moderate-income housing" also refers to housing with an annual rental equal to or less than one-third of such section 235-236 maximum income. § 561.4 Program prerequisites. For the Public Facility Loans Program there are the following four prerequisites: (a) Population. The population of the locality submitting the application is less than 50 thousand or in a designated redevelopment area, less than 150 thousand. This prerequisite does not apply to NASA impacted areas. Public Law 345, 84th Congress, 69 Stat. 635, 642; 42 U.S.C. 1491, or projects where there is assistance under Part B Urban Growth and New Community Development Act of 1970 (42 U.S.C 4511, 84 Stat. 1793.) (b) Civil rights. Submission of acceptable assurances of compliance with title VI of the Civil Rights Act of 1964, Public Law 88-352, 78 Stat. 252, 42 U.S.C. 2000d and HUD Title VI regulations 24 CFR Part I, 29 F.R. 16280 and with affirmative action plan requirements pursuant to Executive Order 11246, as amended 30 F.R. 12319, and HUD regulations 24 CFR Part 130, 36 F.R. 20688. (c) Relocation requirements (if applicable) (1) Submission of acceptance assurances of compliance with the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, 84 Stat. 1894, 42 U.S.C. 4601, and (2) Absence of any known impediment to the applicant's ability to meet HUD relocation requirements and the applicant's and/or locality's ability to fulfill requirements for replacement housing. "Known impediment" refers to a practical inability to provide adequate relocation assistance. (d) A-95 coordination. Evidence that A-95 coordination is in process. The phrase "A-95 coordination" refers to the procedure involving review of applications by the appropriate agency under OMB Circular A-95. § 561.6 Criteria for evaluating applications. Criteria for evaluating applications are divided into the following major categories: (a) Availability of credit to applicant; (b) Population class; (g) Commitment of local, county, State, and Federal entities to project or program; (h) Expansion of housing for low- and moderate-income families; (1) Community development. The elements considered in each cate gory 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 a statement under a particular element or category applies specifically to the project application under consideration, the application is awarded the (The value of this category is the value of paragraph (a) or paragraph (b) of this section.) (a) The population of the locality is under 10,000....... 10 (b) The population of the locality is 10,000 to 25,000‒‒‒‒ 5 § 561.14 Physical need. (The value of this category is the value of paragraph (a) or paragraph (b) of this section.) (a) The project will meet a critical need 12 (b) The project will provide a basic, needed facility which is not currently available 6 "Critical need" refers to a demonstrated need which must be met immediately to prevent or terminate a serious threat to the health or safety of the locality, e.g., a desperate need for water or control of demonstrated causes of diseases of epidemic proportions. § 561.16 Housing consideration. (The value of this category is the sum of paragraphs (a) through (c) of this section.) (a) The project is necessary for maintenance of existing decent, safe, and sanitary housing___. 3 (b) The project is necessary for assistance to proposed decent, safe, and sanitary low- and moderate-income housing 5 (c) The project is necessary for assistance for significant areas of housing that is less than decent, safe, and sanitary 3 "Decent, safe and sanitary" refers to housing that is in accordance with the local housing standards in the area in which the project is to be located. § 561.18 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 locality 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 affirmative 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. § 561.20 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 income 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 6 other census data if possible. Or use best available data. "Service area" refers to the area proposed to be, and reasonably capable of being, served by the Public Facility Loans Project. § 561.22 Commitment of local, county, State, and Federal entities to project or program. (The value of this category is the sum of paragraphs (a) to (d) of this section.) (a) Local commitment. There was substantial participation by the chief executive and governing body of the locality during the planning of the project, and they are demonstrating current public commitment in support of the project 4 (b) Resident commitment. There was effective widespread participation of a representative spectrum of service area residents in the development of project objectives and there is evidence of current support for the execution of the project 4 (c) Coordination of resources. There was substantial participation of other local agencies during planning, and there is a current commitment including resources, from Federal, State, county, or local entities other than those necessary to satisfy the local share requirement_- 4 (d) Participation in areawide or metropolitan planning. There is active participation by the locality's representatives in the areawide or metropolitan planning organization__--§ 561.24 3 Expansion of housing for lowand moderate-income families. (The value of this category is the sum of the values of paragraphs (a), (b), and (c) of this section.) (a) Expansion of low- and moderateincome housing (applicant). Within the applicant's geographic area of jurisdiction, there has been significant expansion of the supply of standard housing for low- and moderate-income families in a nondiscriminatory way- 3 (b) Expansion of low- and moderateincome housing (locality). Within the locality in which the project is located, there has been significant expansion of the supply of standard housing for low and moderate-income families in a non3 discriminatory way (c) Dispersion of low- and moderateincome housing. The locality has a realistic plan to expand the supply of stand |