the Secretary of Housing and Urban Development to finance the undertaking of local programs designed for the elimination and prevention of slums and blight, including slum clearance and urban renewal, rehabilitation, code enforcement, and demolition.

(b) The terms used herein shall have the meanings attributed to them in section 110 of the Housing Act of 1949, as amended, 42 U.S.C. 1460.

§ 500.2

General policies and procedures.

Title I of the Housing Act of 1949, as amended, authorizes the Secretary of Housing and Urban Development to provide localities with Federal technical and financial assistance through a number of programs designed for the elimination and prevention of slums and blight and the removal of factors that create slums and blighting conditions. Applications for grants, loans, and advances should be filed with the Regional or Area Office which serves the locality seeking assistance. The Regional and Area Offices of the Department of Housing and Urban Development provide forms for making application for Federal aid, furnish information and assistance, receive completed applications, and notify recipients of the approval of such applications. § 500.3

Urban renewal projects and neighborhood development

grams.

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(a) The renewal and revitalization of urban areas can be accomplished through the use of two different methods, urban renewal projects or neighborhood development programs.

(b) Urban renewal projects are carried out in individual blighted areas. Neighborhood development programs deal with one or more urban renewal areas which are to be treated simultaneously. Urban renewal projects are planned and funded as one unit; neighborhood development programs are to be funded in annual increments with the Government having the right to terminate at the end of any year.

(c) Urban renewal projects and neighborhood development programs are planned and executed by local public agencies which, depending on State law, may be separate urban renewal agencies, local housing authorities, or departments of local governments. To qualify for Fed

eral assistance to an urban renewal project or a neighborhood development program, a community must adopt, and have certified by the Secretary of Housing and Urban Development, a workable program for community improvement designed to eliminate blight and prevent its recurrence. In addition, a local public agency must, make a showing that there is a feasible method for the temporary relocation of the individuals and families displaced from the urban renewal areas to be treated and must assure the Secretary that there are, or are being provided, sufficient units of decent, safe, and sanitary relocation housing in comparable areas at reasonable rents. The policies and procedures applicable to urban renewal projects are set forth in the Urban Renewal Handbook (RHA 7200 through RHA 7228) and those applicable to neighborhood development programs in the Neighborhood Development Program Handbook, RHA 7380 through RHA 7389.

(d) An urban renewal project or a neighborhood development program assisted under title I may include, in accordance with the urban renewal plan for the area, acquisition of land, site clearance, installation of streets, utilities, parks, playgrounds, and other improvements, restoration and relocation of structures of historic or architectural value, carrying out plans for programs of code enforcement, voluntary repair and rehabilitation of buildings or other improvements, and disposition of acquired land.

(e) The Secretary is authorized to make relocation grants to local public agencies to reimburse them for payments to individuals, families, and businesses for their reasonable and necessary moving expenses, for any direct loss of property resulting from their displacement from an urban renewal area, and for related payments. The regulations governing such payments may be found at 500.100 et seq.

(f) The Secretary is authorized to make an advance of funds to a local public agency (1) for survey and planning work for a project, (2) to determine the feasibility of the undertaking of a project or program, and (3) for a General Neighborhood Renewal Plan outlining the urban renewal activities proposed in

an area which is of such size that the activities may have to be initiated and carried out in stages.

(g) For an urban renewal project, the Secretary is authorized to make one or more temporary loans to be used by the local public agency as working capital in acquiring real estate, clearing sites and preparing the project area for redevelopment, conservation and/or rehabilitation. For a neighborhood development program, the Secretary is authorized to make temporary loans for use by the local public agency for such program activities as are to be carried out during an annual increment of the program.

(h) The Secretary is authorized to make one or more definitive loans to the local public agency, for a period not exceeding 40 years, when project land is leased rather than sold to a redeveloper. A definitive loan must be amortized from the rental income derived from the land.

(1) The Secretary is authorized to make one or more capital grants to a local public agency not exceeding twothirds of the net project or program cost except that a capital grant may be made not exceeding three-fourths of the net project or program cost (1) where the project is located in a municipality with a population of 50,000 or less, or (2) where the project is situated in an officially designated redevelopment area. A three-fourths grant is also available for an urban renewal project (but not one that is included in a neighborhood development program) where the net project cost excludes the costs of survey, planning, administrative, legal, and certain other expenses. For a neighborhood development program, the capital grant is paid annually for the Government's share of expenses for the year.

(1) The local contribution toward the cost of the project or program may be made in the form of cash or noncash grants-in-aid, such as donations of land, demolition and removal work, project improvements, historic preservation activities, certain expenditures by colleges, universities and hospitals, or public facilities that benefit the project.

(k) Application for financial assistance for an urban renewal project may be made by local public agencies on Form HUD-6100, Survey and Planning

Application, and Form HUD–612, Application for Loan and Grant. A neighborhood development program application may be made on Form HUD-6270, Application for a Neighborhood Development Program.

§ 500.4 Code enforcement programs.

The Secretary is authorized to make a grant of not exceeding two-thirds (or three-fourths in the case of a municipality having a population of 50,000 or less) of the cost of carrying out programs of concentrated code enforcement in deteriorated or deteriorating areas in which such enforcement, together with those public improvements to be provided by the locality, may be expected to arrest the decline of the area. Eligible code enforcement activities may include the provision and repair of necessary streets, curbs, sidewalks, street lighting, tree planting, and similar improvements within such areas. Prior to execution of a contract for a code enforcement grant, the municipality must have a workable program for community improvement currently in effect, must assure that any individuals or families displaced by the code enforcement activities are offered decent, safe, and sanitary housing within their means, and must provide relocation assistance and relocation payments on the same basis as in urban renewal project activities. The policies and procedures applicable to code enforcement programs are set forth in the Code Enforcement Grant Handbook, RHA 7250. Application for financial assistance for a code enforcement grant may be made by cities, other municipalities, and counties on Form HUD-6170, Application for Code Enforcement Grant, and Form HUD 6170A, Application. for Code Enforcement Grant-Area Data.

§ 500.5 Demolition programs.

The Secretary is authorized to make a grant of not exceeding two-thirds of the cost of demolishing structures which under State or local law have been determined to be structurally unsound, a harborage or potential harborage of rats, or unfit for human habitation. If the structures to be demolished are not in an urban renewal area; (a) the locality involved must have a currently certified

workable program for community improvement and the structures to be demolished must constitute a serious hazard to the public health or welfare, (b) the demolition must be on a planned neighborhood basis and further the overall renewal objectives of the locality, (c) a program of enforcement of existing local housing and related codes must be currently underway in the locality, and (d) the governing body of the municipality must determine that other available legal procedures to secure remedial action by the owners of the structures involved have been exhausted and that demolition by governmental action is required. The locality will be obligated to assure that any individuals or families displaced as a result of the federally assisted demolition are offered decent, safe, and sanitary housing. Relocation payments must be made available on the same basis as in urban renewal project activities. The policies and procedures applicable to the demolition program are set forth in the Demolition Grant Handbook, RHA 7300. Cities, other municipalities, and counties seeking financial assistance under this program may obtain information and forms from the Regional Office which serves the locality seeking assistance.

§ 500.6 Rehabilitation grants.

The Secretary may authorize a local public agency to makeg rants (and an urban renewal or code enforcement project, or neighborhood development program may include the making of such grants) to individuals and families owning and occupying real property which is in urban renewal areas, areas certified by the locality to contain a substantial number of structures in need of repairs and improvements, or areas of concentrated code enforcement, or real property which is determined to be uninsurable because of physical hazards after an inspection pursuant to a statewide insurance plan approved by the Secretary under title XII of the National Housing Act. Such grants are to cover the cost of repairs and improvements necessary to make such real property conform to public standards for decent, safe, and sanitary housing as required by applicable codes and other requirements of the urban renewal plan for the area. For an in

dividual whose annual income does not exceed $3,000, a grant is limited to the lesser of $3,000 or the actual cost of the repairs and improvements involved. Where the annual income of the individual or family exceeds $3,000, the amount of the grant is further limited to an amount not exceeding that portion of the cost of repairs and improvements which cannot be paid for with any available loan that can be amortized as part of the applicant's monthly housing expense without requiring that expense to exceed 25 percent of the applicant's monthly income. Local public bodies may include requests for rehabilitation grant assistance in their applications for assistance for an urban renewal or code enforcement project, neighborhood development program or certified area project. Individuals eligible for financial assistance under this program may request and file Form HUD-6260 with the local public body authorized to carry out the project or program involved. § 500.7 Interim assistance grants.

(a) The Secretary is authorized to make grants not exceeding two-thirds (or three-fourths in the case of a locality having a population of 50,000 or less) for a program of interim assistance in the alleviation of harmful conditions in slum or blighted areas which are planned for substantial clearance, rehabilitation or Federally assisted code enforcement in the near future. This program may include: (1) The repair of streets, sidewalks, parks, playgrounds, publicly owned utilities, and public buildings to meet needs consistent with the shortterm continued use of the area prior to the undertaking of contemplated clearance or upgrading activities, (2) the improvement of private properties to the extent needed to eliminate the most immediate dangers to public health and safety, (3) the demolition of structures determined to be structurally unsound or unfit for human habitation and which constitute a public nuisance and serious hazard to the public health and safety, (4) the establishment of temporary public playgrounds on vacant land within the area, and (5) the improvement of garbage and trash collection, street cleaning and similar activities.

(b) To be eligible for interim assistance: (1) the locality must have a cur

rently certified workable program for community improvement, and (2) the locality must make a showing that there is a feasible method for the temporary relocation of the individuals and families displaced due to activities under an interim assistance program and must assure the Secretary that there are, or are being provided, sufficient units of decent, safe, and sanitary relocation housing in comparable areas at reasonable rents.

§ 500.8 Community renewal programs.

(a) The Secretary is authorized to make grants not exceeding two-thirds of the total cost of preparing a community renewal program including: (1) Identification of blighted or deteriorating areas in the community, (2) measurement of the nature and degree of blight and blighting factors in the areas, (3) determination of the financial, relocation and other resources needed to renew the areas, (4) identification of potential project areas and types of urban renewal action contemplated, and (5) scheduling of urban renewal activities.

(b) Application for financial assistance under this program may be made by a local public body authorized to perform the necessary planning work on Form HUD-6400, Application for Community Renewal Program Grant. The policies and procedures applicable to community renewal programs are set forth in the Community Renewal Program Handbook, RHA 7230.

§ 500.9 Applications; information.

(a) A local public agency (or a city, other municipality, or county in the case of a code enforcement, demolition grant, or interim assistance program) applying for financial assistance should submit its application and all related documents to the Regional Administrator in the appropriate HUD Regional Office. Appйcation forms and other forms, procedures, policy statements, and materials issued by HUD for the use or guidance of local public agencies may be obtained through such offices.

(b) The Urban Renewal Handbook, which sets out policies and requirements for local public agencies, may be purchased from the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402 and is available

(a) Purpose. This part sets forth criteria and procedures to be used in preliminary evaluation of applications for Federal loan and grant assistance to local public bodies and agencies for Neighborhood Development Programs, which are urban renewal undertakings and activities, in one or more urban renewal areas, that are planned and carried out on the basis of annual increments.

(b) Procedures. Submissions will first be reviewed against six prerequisites. I any of these prerequisites are not met, the application will be rejected. If the application appears to meet the prerequisites, it will be evaluated against the