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(c) Planning and programing.
Financing by other units of governments
includes grants, loans, or contributions to I the statement of goals and objectives
the construction of the project by units of prepared by the areawide planning
general- or special-purpose governments organization has been endorsed or
other than the applicant and a Stato. adopted, as provided by State law, by the unit(s) of general-purpose govern- $ 556.10 Housing. ment for the area in which the project
(The value of this category is the sum is located, the application will be awarded the following number of
of the values of paragraphs (a) and (b) points
5 of this section.)
(a) Decent, safe, and sanitary hous(d) State and regional/metropolitan
ing. (Value of this element is the sum clearinghouse concern.
of the values of subparagraphs (1) to If the proposed project has high priority (3) of this paragraph.)
for the State or regional/metropolitan program, based the State or
The project is necessary for the regional/metropolitan clearinghouse
(1) Maintenance of existing docent, safo review and comment, the application
and sanitary housingwill be awarded the following number
(2) Maintenance of existing, or assistof points
ance to proposed, decent, safe, and
sanitary low and moderato income $ 556.8 Financial need.
(3) Assistance of significant areas of (Value of this category is the sum of
housing that is less than decent, the values of paragraphs (a) to (c) of
safe, and sanitary---this section.)
“Decent, safe, and sanitary housing" re(a) If the project cannot be fnanced
fers to housing that is in accordance without the requested Federal assist
with local housing standards in the area ance, the application will be awarded the following number of points 8 in which the project is to be located.
"LOW- and moderate-income housing" Ability to finance tho project on the basis of revenue bonds is computed at 6 percent
refers to housing with a fair market interest over 25 years. I tho estimated net
value that is equal to or less than the revenue in an average year exceeds the total resultant of multiplying the section 235– debt service costs for that year by a factor 236 maximum income for a family of of 1.25, It is assumed that the project can four, as established by the Secretary for be financed without the requested Federal the county in which the project is loaid, and the points will not be awarded. cated, by a factor of 3. “Low- and mod
(b) Relative median family income: The erate-income housing” also refers to median family income of the service area
housing with an annual rental equal to of the proposed project compared to the
or less than one-third of such section median family income of the State in which
235-236 maximum income. the project is to be located 18: (Select one):
(b) Accessibility of housing. (Select (1) 8501-81,500 above
one): (2) 81-8500 above
4 (8) 80–8500 below
Percent of housing in project area that will 6
be accessible on a nondiscriminatory basis (4) 8501-$1,500 below
to families and individuals with low and (5) $1,501 or more below
moderate income is: Median family incomes for the servioo area
(1) 81-100 percent.
10 and the State are to be obtained by utilizing
(2) 61-80 percent
8 the Olty-County Data Book or other census
(3) 41-60 percent.
8 data. In those instances whero the median
(4) 21-40 percent.-
4 family income for the area as doterminod
(5) 20 percent or less---
2 from the source material appears inconsistent with the Department's knowledge of
As used herein, “nondiscriminatory" the community, adjacent area median tam- means free of legal or social constraints ily incomes will be considered.
arising from race, creed, color, and na(C) Non-Federal financial aid: (Valuo of tional origin. this element is the sum of the values of
$ 556.12 Health. (1) and (2).)
The proposed project is necessary for: (1) State assistanco (grant and/or loan) is being provided to assist in
(Select one): project financing---
8 (a) Elimination of a potential publlo (2) Units of government other than the
6 applicant and a State are providing (b) Elimination of a demonstrated pubinancial assistance for the project. 2
lic health hazard..
(c) Elimination of a critical boalth hazard
18 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 oppor
tunities. (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 indus
the projoct, on-the-job training ac-
2 (c) The project will provide job oppor
tunities for underemployed and un-
2 (d) The project has provisions for small business participation--
2 (e) The project has provisions for mi
nority business participation.---.. 2 “On-the-job training” refers to union or government sponsored apprenticeship or similar training programs. “Small businesses” refers to those contractors, including supply contractors, whose contractual abilities are limited to $125,000 or less. In addition to information furnished on SF-101, the relationship of the project to commercial or industrial development in the area will be taken into account. & 556.16 Community development. The degree to which the project is
necessary for undertaking other publicly supported community development activities.
1 to 5
"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, and the degree of support by the appropriate units(s) of local general-purpose government. 8 556.18 Further application
procedurcs. (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 ofice 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.
and sewer facilities. The provisions of 561.12 Population class.
these regulations do not apply to projects 561.14 Physical need.
involving New Communities, or such 561.16 Housing consideration. 561.18 Local equal employment and entre
other critical or innovative projects as preneurial effort.
the Assistant Secretary for Community 561.20 Local need.
Development may determine. 561.22 Commitment of local county, Stato, (5) The Department reserves the
and Federal entities to project or right to negotiate the modification of program.
the scope of the proposed undertaking 861.24 Expansion of housing for low- and
and/or the amount of financial assistmoderate-income familles. 561.26 Community development.
ance requested. AUTHORITY: The provisions of this part 561
8 561.2 Definitions. issued under secs. 201-204, of the Housing As used in the regulations in this part: Amendments of 1955, 69 Stat. 642-644; 42
(a) “Applicant" means a legal entity, U.S.C. 1491-1494.
eligible under sections 201-204 of the SOURCE: The provisions of this part 561 Housing Amendments of 1955, 69 Stat. appear at 37 F.R. 7396, Apr. 14, 1972, unless 642–644, 42 U.S.C. 1991-1494, which is otherwise noted.
applying for Federal assistance under $ 561.1 Scope.
the Public Facility Loans Program. (a) Purpose. This part sets forth crt
(b) "Locality" means the political teria and procedures to be used in pre
jurisdiction or jurisdictions having genliminary evaluation of applications for
eral purpose government powers upon Federal loan assistance to local public
whose behalf the application for Federal bodies and agencies under the Public
assistance has been submitted. Facility Loans Program.
(c) "LOW and moderate income" (b) Procedures. (1) Submissions will
means an income level which is less than first be reviewed against four prere
the maximum income eligibility level for quisites. If any of these prerequisites are
& family of four for the county in which not met, the application will be rejected.
the project is to be located under either If the application meets all prerequisites,
of the subsidized housing programs auit will be evaluated against the point
thorized by section 235 or 236 of the rated criteria and assigned a point
National Housing Act, as amended 82 rating.
Stat. 476, 477, 498, 12 U.S.C. 1715z,
17152-1. (2) Then, depending upon the relative rating of the application among other
(d) “Low- and moderate-income such applications pending in the area
housing” refers to housing with a fair office, the applicant may be asked to
market value that is equal to or less than submit further application material, with
the resultant of multiplying the section supporting documentation so that a final
235-236 maximum income for a family decision on the loan may be reached.
of four, as established by the Secretary Such application material is subject to
for the county in which the project is reviews to determine compliance of the
located, by a factor of 3. "Low- and application with basic eligibility and
moderate-income housing" also refers to technical requirements.
housing with an annual rental equal to (3) If an application does not receive
or less than one-third of such section a high enough point rating to qualify for
235-236 maximum income. funding as compared to other pending
$ 561.4 Program prerequisites. applications, or if the application cannot meet basic eligibility or technical re
For the Public Facility Loans Proquirements, the application and any sup
gram there are the following four porting documents will be returned to the prerequisites: applicant with advice as to the areas of (a) Population. The population of the deficiency. Remedial action regarding locality submitting the application is less the deficiencies must be undertaken be- than 50 thousand or in a designated refore the proposal may be reconsidered. development area, less than 150 thou
(4) The Department will only accept sand. This prerequisite does not apply to applications for processing under this NASA impacted areas. Public Law 345, program involving works for the storage, 84th Congress, 69 Stat. 635, 642; 42 U.S.C. treatment, purification, or distribution of 1491, or projects where there is assistwater; and sewage, sewage treatment, ance 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, 20000 and HUD Title VI regulations 24 CFR Part I, 29 F.R. 16280 and with airmative 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 applica.
tions. Criteria for evaluating applications are divided into the following major categories:
(a) Availability of credit to applicant;
(e) Local equal employment and entrepreneurial efforts;
(1) Local need;
(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
number of points assigned to that statement. If no statement applies, no points are awarded to the application for that element. 8 561.8 Availability of credit to appli
cant. (The value of this category is the values of paragraph (a) or paragraph (b) of this section.)
(a) Credit is not available in the private market
12 (b) Private credit is available at a rate 1 percent above the Public Facility Loan rate or more--
6 $ 561.10 (Reserved] $ 561.12 Population class.
(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 10cality 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 afirmative 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 (b) Median income of service area. The median annual family income of the service area compared to the State annual median family income is: (Select one, if appropriate):
(1) $1-$500 below State median --- 4
(2) More than $500 below State median
8 Median family incomes for the service area and the State are to be obtained by utilizing the City County Data Book or
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. 8 561.22 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 metropolitan planning. There is active participation by the locality's representatives in the areawide or metropolitan planning organization -
3 $ 561.24 Expansion of housing for low
and moderate-incorae 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 nondiscriminatory way -
3 (c) Dispersion of low- and moderateincome housing. The locality has a realistic plan to expand the supply of stand