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each of the fractions described in that grant amount or the hold-harmless paragraph; and

amount, whichever is the greater; (ii) Determining for each urban (2) The amount for the second year county the amount which bears the does not exceed two-thirds of the full same ratio to the total amount calcu- basic grant amount, or the hold-harmless lated under paragraph (b) (1) (1) of this amount, or the amount allowed under section as the average of the ratios be- paragraph (c) (1) of this section, whichtween:

ever is the greatest; and (A) The population of that urban (3) The amount for the third year county and the population of all metro- does not exceed the full basic grant politan cities and urban counties;

amount. (B) The extent of poverty in that

8 570.103 Hold-harmless grants. urban county and the extent of poverty in all metropolitan cities and urban (a) Metropolitan cities and urban

counties. Any metropolitan city or urban counties; and (C) The extent of housing overcrowd- county having a hold-harmless amount,

as calculated under paragraph (c) of this ing by units in that urban county and the extent of housing overcrowding by

section, in any fiscal year which exceeds

its basic grant amount for that year as units in all metropolitan cities and urban counties.

computed under $ 570.102 will be entitled (2) In determining the average of

to receive a hold-harmless grant, in addi

tion to its basic grant. Except as provided ratios under paragraph (b) (1) (ii) of this section, the ratio involving the extent of

in paragraph (d) of this section, the

amount of the hold-harmless grant will poverty will be counted twice. (3) In computing amounts or exclu

be equal to the difference between the sions with respect to an urban county

basic grant amount and the hold-harm

less amount. in any fiscal year, there will be excluded

(b) Other units of general local govany metropolitan city, any other unit of general local government within the

ernment. Any other unit of general county which is to receive a hold-harm

local government will be entitled to reless grant for that fiscal year pursuant

ceive a hold-harmless grant if, during to $ 570.103, and any other unit of gen

the five fiscal year period ending June 30,

1972 (or June 30, 1973, in the case of eral local government the population of which has been excluded from the

a locality which first received a grant county's population as part of the urban

for a neighborhood development procounty qualification process, pursuant

gram in that fiscal year), it had been to $ 570.105.

carrying out one or more urban renewal (4) In excluding the population, pov

projects, code enforcement programs, or erty, and housing overcrowding data of

neighborhood development programs

under Title I of the Housing Act of units of general local government which

1949, or model cities programs under are to receive a hold-harmless grant

Title I of the Demonstration Cities and from the computations in this para

Metropolitan Development Act of 1966, graph, as required by paragraph (b) (3)

under commitments for assistance enof this section, the Secretary will ex

tered into with HUD during that period. clude only two-thirds of such data for

Except as provided in paragraph (d) Fiscal Year 1978 and one-third of such of this section, such hold-harmless grant data for Fiscal Year 1979.

will equal the hold-harmless amount as (c) Phase-in provisions. During the computed under paragraph (c) of this first three years for which funds are ap

section. proved for distribution to a metropolitan (c) Calculation of hold-harmless city or urban county, the basic grant

amount. (1) For each unit of general amount of those cities and counties as local government having entitlement computed under paragraphs (a) and (b)

for either a basic grant amount or a will be adjusted if the amount so com

hold-harmless grant, the Secretary will

calculate a hold-harmless amount for puted for the first year exceeds the city's

each of the first five fiscal years beginor county's hold-harmless amount for

ning with Fiscal Year 1975, and, for a that year as determined under $ 570.103.

unit of general local government first The adjustments will be made so that:

qualifying for a basic grant amount (1) The amount for the first year does after the fourth such fiscal year, for the not exceed one-third of the full basic first two years that unit of general local government receives a basic grant (B) Eighty percent for the year imamount.

mediately following year five as deter(2) The hold-harmless amount will be mined in paragraph (c) (2) (ii) (A) of the sum of:

this section; (i) The annual average during the (C) Sixty percent for the year imfive fiscal years ending June 30, 1972, mediately following the year provided in of:

paragraph (c) (2) (ii) (B) of this section; (A) Commitments for grants for urban and renewal (excluding neighborhood de- (D) Forty percent for the year imvelopment programs) under Part A of mediately following the year provided in Title I of the Housing Act of 1949. For paragraph (c) (2) (ui) (C) of this section. the purposes of this calculation, “com

For the purpose of calculating holdmitments for grants” means any of the

harmless amounts, the average annual following conditions occurring during

grant under paragraphs (c) (2) (ii) and the five year base period:

(iii) of this section will be established (1) Funds reserved and not either

by dividing the total amount of grants cancelled or allocated;

made to the nit of general local gov(2) Funds reserved and allocated; and

ernment by the number of months of funds allocated which had not pre

program activity for which such grants viously been reserved.

were made and multiplying the result (B) Loans made for the purpose of

by twelve. In calculating the holdrehabilitation of property under section

harmless amount, any portion of grants 312 of the Housing Act of 1964;

which were made as one-time payments (C) Grants for open space land proj

for relocation costs under the Uniform ects, including urban beautification and

Relocation Assistance and Real Prophistoric preservation, under Title VII of

erty Acquisition Policies Act of 1970 (42 the Housing Act of 1961;

U.S.C. 4601) will be excluded. In calcu(D) Grants for water and sewer proj

lating the average annual grant under ects under section 702 of the Housing

paragraph (c) (2) (iii) of this section, and Urban Development Act of 1965;

the Secretary will exclude Planned Vari(E) Grants for neighborhood facili

ations grants and grants for such other ties under section 703 of the Housing and

special purposes as relocation costs for Urban Development Act of 1965; and

Project Rehab in model cities programs. (F) Loans for public facilities under

In attributing credit to metropolitan Title II of the Housing Amendments of

cities for grants or loans for the purpose 1955; and

of calculating the hold-harmless amount, (ii) The average annual grant for a

the Secretary will be guided primarily neighborhood development program by the location of the project, and, in under Part B of Title I of the Housing

addition, the identity of the local governAct of 1949 made during the five fiscal

ment which contracted for such grants years ending June 30, 1972, or during

or loans. Thus, where a county park Fiscal Year 1973 in the case where the

authority received a grant to provide initial grant for this purpose was made

recreational facilities in a metropolitan in that fiscal year; and

city, the city would be credited with the (iii) In the case of a unit of general

grant in the hold-harmless calculation, local government having a model cities

and not the county. program which was funded or extended

(d) Phase-out of hold-harmless. (1) in Fiscal Year 1973 for a period ending

In determining the hold-harmless grant after June 30, 1973, amounts based on for Fiscal Years 1975, 1976, and 1977, the the following percentages of the aver- full hold-harmless amount calculated age annual grant made for the model under paragraph (c) of this section will cities program under Title I of the Dem- be used in accordance with paragraphs onstration Cities and Metropolitan De- (a) and (b) of this section. In Fiscal velopment Act of 1966 during fiscal years Years 1978 and 1979, if the hold-harmending June 30, 1972:

less amount exceeds the basic grant (A) One hundred percent for each of amount for a locality in any such year, a number of years, which, when com- as computed under $ 570.102, it will be bined with the number of funding years reduced so that for which the unit of general local gov- (i) In Fiscal Year 1978, the excess of ernment has received grants prior to the hold-harmless amount over the basic Fiscal Year 1975, equals five.

grant amount for that year will equal two-thirds of the difference between such (5) To States and units of general lohold-harmless and basic grant amounts; cal government for use in meeting emerand

gency community development needs (ii) In Fiscal Year 1979, the excess of caused by disasters that, in the determithe hold-harmless amount over the basic nation of the President, are of sufficient grant amount for that year will equal severity and magnitude to warrant major one-third of the difference between such disaster assistance by the Federal govhold-harmless and basic grant amounts. ernment, (but not more than one-fourth

(2) In Fiscal Year 1980, no hold-harm- of the total amount reserved and set less grants will be made.

aside in the Secretary's fund under this (3) In determining the adjustments section for each year will be used for under paragraph (d) (1) of this section this purpose); and for units of general local government not (6) To States and units of general qualifying for a basic grant, the provi- local government where HUD finds it sions of paragraph (d) (1) (i) and (ii) of necessary to correct inequities resulting this section will be applied as though from the allocation provisions of this such units had entitlement to a basic subpart. grant amount of zero.

Grants from the Secretary's fund may (e) Waiver of hold-harmless. Any unit be made in addition to any other comof general local government qualifying munity development block grants which for a hold-harmless grant under the con- may be made to the same recipient under ditions contained in paragraph (b) of this subpart. this section may, not later than thirty (b) Transition fund. Using funds apdays prior to January 1, 1975, or not propriated for Fiscal Years 1975, 1976 later than 30 days prior to the begin- and 1977 for this purpose, grants may be ning of any fiscal year thereafter, irrev- made to units of general local governocably waive its eligibility for such ment having urgent community developgrants. Such waiver must be submitted ment needs which cannot be met through to the Secretary in writing. In the case the operation of the allocation proviof such a waiver, the unit of general local sions of this subpart. Grants under this government shall not be excluded from paragraph may not exceed the total the computations described in § 570.102 amount appropriated in each fiscal year (b) (3) and § 570.104(c) (1) and (2). for this purpose. 8 570.104 Funds for discretionary

(c) General purpose funds-(1) Met

ropolitan areas. Any portion of the grants.

amount allocated to metropolitan areas (a) Secretary's fund. From the amount

under § 570.101, which remains after the appropriated for community develop- allocation of (i) basic grant amounts to ment block grants each fiscal year, ex

metropolitan cities and urban counties cluding the transition fund described in

under $ 570.102, and (ii) hold-harmless paragraph (b) and fifty million dollars in

grants to which units of general local each of Fiscal Years 1975 and 1976, HUD

government in metropolitan areas are will determine an amount which is two entitled, under $ 570.103, plus fifty milpercent of such appropriated funds for lion dollars in each of Fiscal Year 1975 use in making grants:

and Fiscal Year 1976, will be allocated (1) In behalf of new communities ap- for grants to units of general local govproved under Title VII of the Housing ernment, other than metropolitan cities and Urban Development Act of 1970 or and urban counties, and to States for use Title IV of the Housing and Urban De- in metropolitan areas, allocating for velopment Act of 1968;

each such metropolitan area an amount (2) To States and units of general lo- which bears the same ratio to the total cal government which jointly apply for of those remaining amounts as the aversuch funds for addressing problems that age of the ratios between: are areawide in scope;

(A) The population of that metropoli(3) In Guam, the Virgin Islands, tan area and the population of all metAmerican Samoa, and the Trust Terri- ropolitan areas; tory of the Pacific Islands;

(B) The extent of poverty in that (4) To States and units of general metropolitan area and the extent of local government for use in demonstrat- poverty in all metropolitan areas; and ing innovative community development (C) The extent of housing overcrowdprojects;

ing by units in that metropolitan area

and the extent of housing overcrowding by units in all metropolitan areas. In determining the average ratios for metropolitan areas, the ratio involving the extent of poverty will be counted twice; and in computing amounts for metropolitan areas there will be excluded any metropolitan cities, urban counties, and any units of general local government which receive hold-harmless grants under $ 570.103(b).

(2) Nonmetropolitan areas. Any portion of the amount allocated to nonmetropolitan areas under $ 570.101 which remains after providing the allocation of hold-harmless grants to which units of general local government in nonmetropolitan areas are entitled under $ 570.103 (b), will be allocated for grants to units of general local government in nonmetropolitan areas or to States for use in nonmetropolitan areas, allocating for the nonmetropolitan areas of each State an amount which bears the same ratio to the total of those remaining amounts as the average of the ratios between:

(i) The population of the nonmetropolitan area in that State and the population of the nonmetropolitan area in all States.

(ii) The extent of poverty in the nonmetropolitan area in that State and the extent of poverty in the nonmetropolitan area in all States; and

(iii) The extent of housing overcrowding by units in the nonmetropolitan area in that State and the extent of housing overcrowding by units in the nonmetropolitan area in all States. In determining the average of ratios for nonmetropolitan areas, the ratio involving the extent of poverty will be counted twice; and in computing amounts for nonmetropolitan areas there will be excluded units of general local government in nonmetropolitan areas which receive hold-harmless grants under $ 570.103(b).

(d) Adjustment to exclusions for holdharmless grants. In excluding the population, poverty and housing overcrowding data of units of general local government which receive hold-harmless grants as required under paragraphs (c) (1) and (2) of this section, only two-thirds of such data will be excluded for Fiscal Year 1978 and one-third of such data for Fiscal Year 1979.

(e) Criteria. Specific criteria for determining recipients of discretionary funds may be found in Subpart E, Ap

plications and Criteria for Discretionary Grants. & 570.105 Qualification as urban county.

(a) Determination of qualification. The Secretary will determine the qualifications of counties to receive entitlements as urban counties pursuant to § 570.102(b) upon receipt of applications from counties in a form and manner prescribed by HUD. The Secretary shall determine eligibility and applicable portions of each eligible county for purposes of fund allocation under & 570.102(b) on the basis of information available from the U.S. Bureau of Census with respect to population and other pertinent demographic characteristics, and based on information provided by the county and its included units of general local government.

(b) Qualification as an urban county. A county will qualify as an urban county if such county:

(1) Is in a metropolitan area;

(2) Is authorized under State law to undertake essential community development and housing assistance activities (“essential activities") in its unincorporated areas, if any, which are not units of general local government; and

(3) Has a combined population of 200,000 or more (excluding the population of metropolitan cities therein) consisting of persons residing:

(i) In such unincorporated areas.

(ii) In its included units of general local government in which it is authorized under State law to undertake essential activities (without the consent of the governing body of the locality, or upon the consent of the governing body of the locality and the county has received such consent) and which do not elect to have their population excluded from that of the county pursuant to § 570.102(h) (3) or

(iii) In its included units of general local government with which it has entered into cooperation agreements to undertake or to assist in the undertaking of essential activities pursuant to community development block grants. Such cooperation agreements may consist of the provision by the county of funds or services or both in behalf of such essential activities.

(c) Essential activities. For purposes of this section, the term "essential activities” means community renewal and

39-082-75

lower income housing activities. In de- (b) Nonmetropolitan areas. Any termining whether a county has the re- amounts allocated to a unit of general quired powers, the Secretary will con- local government for any fiscal year for sider both its authority and, where ap- hold-harmless grants in a nonmetropoliplicable, the authority of its designated tan area which are not applied for by agency or agencies.

the date fixed by the Secretary for that (d) Opinion as to authority. A county purpose, or which are disapproved by wishing to qualify as an urban county the Secretary as part of the application shall, at a time designated by HUD and review or program monitoring processes, in a form prescribed by HUD, describe its will be reallocated by the Secretary for authority for undertaking essential ac- use in making grants to units of general tivities. Such description shall include local government in nonmetropolitan an opinion with respect to such authority areas in any State or to any State for by the appropriate legal officer of the use outside of metropolitan areas. Any county.

other amounts allocated to nonmetro

politan areas of a State for any fiscal § 570.106 Qualification and submission

year under 8 570.104(c) (2) which the dates.

Secretary determines, on the basis of apThe Secretary will fix qualification plication and other evidence available, and submission dates necessary to per- are not likely to be fully obligated durmit the computations and determina

ing the fiscal year for which the allocations required under this Subpart to be tion has been made, will be reallocated by made in a timely manner and all such

the Secretary sufficiently prior to the computations and determinations will close of the fiscal year to allow a reabe final and conclusive.

sonable expectation that the funds may $ 570.107 Reallocation of funds.

be used for making grants within that

fiscal year to units of general local gov(a) Metropolitan areas. Any amounts

ernment in nonmetropolitan areas of allocated to a metropolitan city, urban other States and to other States for use county, or other unit of general local gov

in nonmetropolitan areas. ernment for basic grants or hold-harm

(c) Policies governing reallocation. less grants in metropolitan areas in any Each fiscal year, HUD will publish the fiscal year which are not applied for by

policies to be employed in the reallocathe date fixed by the Secretary for that tion of funds for that year. purpose, or which are disapproved by

(d) Fiscal year reallocation. Metrothe Secretary as part of the application politan area funds reallocated for any review or program monitoring processes,

fiscal year which are not used within will be reallocated for use by the Secre

that fiscal year will remain available in tary in making grants to States, metro

the next subsequent fiscal year for the politan cities, urban counties, or other

same area. Nonmetropolitan area funds units of general local government; first, reallocated for any fiscal year which are in any metropolitan area in the same not used within that fiscal year will reState, and second, in any other metro- main available in the next subsequent politan area. Any other amounts allo- fiscal year for the same area. cated to a metropolitan area for any fis

§ 570.108 Offset against entitlement. cal year under $ 570.104(c) (1) which the Secretary determines, on the basis of ap

To the extent that grants under Title plications and other evidence available,

I of the Housing Act of 1949 (urban re

newal) or Title I of the Demonstration are not likely to be fully obligated by the

Cities and Metropolitan Development Secretary during the fiscal year for

Act of 1966 (model cities) are payable which the allocation has been made, will

from appropriations made for Fiscal be reallocated by the Secretary sufi

Year 1975, and are made with respect ciently prior to the close of the fiscal year

to a project or program being carried on to allow a reasonable expectation that in any unit of general local government the funds may be used for making grants having a basic or hold-harmless grant within that fiscal year to States, metro- entitlement for Fiscal Year 1975 under politan cities, urban counties, and other § 570.102 or 570.103, the amount of such units of general local government, first, grants made under such urban renewal in that or any other metropolitan area in or model cities legislation will be considthe same State, and second, in any other ered to have been made against the enmetropolitan area.

titlement amount of the unit of general

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