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entities described in § 570.403(b) (1), (2) munity development needs shall be suband (3).

mitted by States and units of general (b) Criteria for Selection. The Secre- local government to the HUD Area Office tary shall make grants for the purpose of serving the locality. The required docufacilitating an orderly transition to the mentation establishing the basis for community development block grant grants under this section shall be supprogram and to provide for urgent com- plied by applicants at the request of the munity development needs which cannot HUD Area Office. Planned Variation be met through the allocation provisions cities requesting funds under criterion of $ 570.102, $ 570.103, and $ 570.104(c), (2) shall comply with the application giving priority to the following:

requirements outlined in § 570.303. Appli(1) The analysis performed by the unit cants under criteria (1) and (3) shall of general local government (and con- submit documentation, in a manner precurred in by HUD) of its ongoing projects scribed by HUD, justifying and docuor program undertaken pursuant to Title

menting the urgent need for funds under I of the Housing Act of 1949 indicates this section, and shall provide the certithat the entitlement amount is: (i) In- fications required by $ 570.303(e) (1), sufficient, over a three-year period be

(3), (4), (5), (6), and (8). ginning January 1, 1975, to complete the

$ 570.402 program or project plan as approved by

General purpose funds for HUD; or (ii) in any one of those three

metropolitan and nonmetropolitan years the entitlement amount will be insufficient to maintain the progress

(a) Eligible applicants. Eligible applischedules adopted locally for achieve- cants are States, and units of general ment of the program and the inability to local government as defined in § 570.3(v), maintain such progress will seriously excluding metropolitan cities, urban and adversely affect the Federal interest counties and units of general local govin the project or program.

ernment which are included in urban (2) A unit of general local government counties as described in § 570.105(b) (3) participated in the planned variations (ii) and (iii). For the purpose of this demonstration assisted under the provi- section, the second sentence in § 570.3(v) sions of the Demonstration Cities and includes those entities described in $ 570.Metropolitan Development Act of 1966 403(b) (1), (2) and (3). and will suffer a significant decrease in (b) Criteria for selection. In selecting the level of ongoing activities funded among applications, priority will be exunder the planned variations demonstra- tended to those applications showing the tion.

following conditions, and proposing ac(3) A state or unit of general local tivities which directly or indirectly relate government, as a result of cost increases to these conditions: due to circumstances beyond its control, (1) Extent of substandard housing has been unable to complete an ongoing conditions determined as follows: project assisted under one or more of the (i) for metropolitan areas, the proporfollowing terminated categorical pro- tion and extent of overcrowded housing grams: (i) Water and sewer facilities as defined in § 570.3(i) and expressed as a under section 702 of the Housing and percentage of the total housing units in Urban Development Act of 1965; (ii) the unit of general local government; and neighborhood facilities under section 703 (ii) for nonmetropolitan areas, the of the Housing and Urban Development proportion and extent of housing units Act of 1965; (iii) open-space land under lacking plumbing as published by the Title VII of the Housing Act of 1961; and United States Bureau of the Census for the Secretary's analysis of the financial 1970 for rural areas and expressed as a capacity of the unit of general local gov- percentage of the total housing units in ernment indicates a lack of available re- the unit of general local government. sources locally or otherwise to finance (2) The proportion and extent of completion of the project and the Federal poverty as defined in g 570.3(j) and exinvestment in the project as of Janu- pressed as a percentage of the total ary 1, 1975 warrants the incremental population for the unit of general local Federal assistance required to complete government. the project.

(3) An extraordinarily high rate of (c) Application requirements. Appli- growth or a severe and rapid decline in cations for funds to meet urgent com- population and economic activity, either one of these conditions resulting pri- (a), and the housing assistance plan, as marily from the impact of national policy described in § 570.303(c). The State apdecisions or direct Federal program de- plication shall indicate that the housing cisions, and where the program is de- assistance plan has been adopted by the signed to offset or mitigate the effects of unit or units of general local government. sudden spurts or declines in growth.

(3) A State may not apply for activi(4) Conditions which represent an ties to be located in or carried out in imminent threat to public health or metropolitan cities, urban counties or safety.

units of general local government which

are included in urban counties, unless Additional priority may be extended

such funds have been reallocated in acwhere there are joint and voluntary co

cordance with the provisions of 8 570.107. operation agreements between States and

(4) A State may apply for activities units of general local government or two to be carried out pursuant to State auor more units of general local govern

thority or pursuant to an agreement with ment and the activities are designed to one or more units of general local govimplement housing and community de

ernment. velopment plans that are Statewide or

(f) Reallocation of funds. When funds areawide in scope, provided that one or are reallocated in accordance with the more of the participants in the agree- provisions of g 570.107, the policies and ment also meets at least one of the other criteria of this section shall apply excriteria listed in this subsection. Area cept that metropolitan cities, urban Ofices of HUD are authorized at their counties and units of general local govdiscretion (but not required) to set max- ernment which are included in urban imum grant limits for each fiscal year, counties shall be eligible applicants for related to the total amount of discre- reallocated funds. In Fiscal Year 1975, tionary balance available in that year to funds will be reallocated as soon as praca given metropolitan area or to the non- ticable after May 15, 1975. metropolitan portion of a State. A judg

$ 570.403 New communities. mental factor which may be applied by each Area Ofice is an estimate of the (a) General. This Section covers capacity of the applicant to complete the grants made in behalf of activities and proposed activities within the estimated projects to be undertaken in direct supcost.

port of a new community (which term (c) Application requirements. Appli- means a new community approved by the cants for general purpose funds for Secretary under Title VII of the Housing metropolitan and nonmetropolitan areas

and Urban Development Act of 1970 or shall meet the application requirements

Title IV of the Housing and Urban Dein $ 570.303.

velopment Act of 1968), and reflected in (d) Waiver of Application require- a current new community development ments. The provisions of 8 570.304 shall plan (the development plan which forms also apply to applications under this

an attachment to each new community section.

project agreement by and between each (e) Applications submitted by States. developer and the United States, as the States (including the Commonwealth of same may be revised and amended from Puerto Rico) may apply for general pur

time to time). pose funds for metropolitan and non- (b) Eligible Applicants. States, and metropolitan areas to carry out eligible

units of general local government which activities in metropolitan and non

meet the definition contained in § 570.3 metropolitan areas, respectively.

(v) may apply under this subsection for (1) Separate applications are required grants made on the basis of the provifor nonmetropolitan areas and for each

sions of this section. For the purpose of separate metropolitan area for which a this section, the second sentence in State seeks funds.

$ 570.3(v) includes: (2) The geographical area to be cov

(1) A State land development agency ered by the application shall be the juris

or local public body or agency with audiction of the unit or units of general thority to act as a developer of a new local government in which the proposed community. activity or activities are to be located or (2) Any community association (incarried out. This policy pertains par- cluding any homes association), or other ticularly to the community development similar nonprofit organization estabplan summary, as described in & 570.303 lished in a new community under cove

nants approved by the Secretary in con- any such activity's proposed funding unnection with approved new community der this part if the activity is a part of a development projects, or any community previously approved project for which authority established under State law for environmental review clearances have similar purposes, or any of the foregoing been completed, which clearances adeorganizations otherwise approved by the quately covered such activity, and for Secretary which is legally and adminis- which circumstances, including the tratively qualified to carry to successful availability of additional data or adcompletion those projects for which vances in technology, have not changed grant assistance is sought by the significantly. applicant.

If NCA determines that an additional (3) A private new community devel- review is required, environmental review oper or any subsidiary thereof organized shall be conducted by HUD pursuant to in a form satisfactory to the Secretary: HUD Handbook 1390.1. Provided, That a request has been made (ii) For activities proposed by an apto an appropriate unit of general local plicant eligible under $ 570.403(b), other government or a non-profit organization than under $ 570.403(b) (2) or (3), ento apply for and serve as grantee for the vironmental reviews shall be conducted direct benefit of the new community, by the applicant pursuant to 24 CFR and such request has been denied, or in Part 58, or, if applicable, by HUD in acthe judgment of the New Communities cordance with 570.603. Administration (NCA) of HUD, no ac- (5) Clearinghouse review. Applicants ceptable response has been received must comply with the procedures set within a reasonable period of time. forth in OMB Circular A-95 (requiring

(c) Application Requirements-(1) review by a clearinghouse) only where General. The requirements of this para

the proposed Title I funded activities graph shall be applicable only for the

have not previously been the subject of geographic area within the new commu

clearinghouse review. nity. The requirements set forth in this

(6) Performance report. Progress in paragraph are designed to supplement

execution activities funded under the Act application procedures and approval requirements of the new communities pro

shall be reported to NCA as a part of the gram under which applicants will have

quarterly and annual reporting and realready provided substantial information view procedures. to the Secretary.

(d) Review and approval of applica(2) Activities Program. The applica- tions. All applications for grants to assist tion shall include a brief description of new community development projects the activities and costs to be funded from

pursuant to this section shall be subthe grants for the program year. The

mitted to NCA through the appropriate application shall identify separately any

HUD Area Office. activities not previously submitted to and

(1) Scope of review. NCA will review approved by NCA. approved by the New Communities Ad

the application, based upon data and inministration (NCA) of the Department of

formation supplied by the developer of Housing and Urban Development as part

the new community project and other of Title IV or Title VII documentation. independent reviews conducted by NCA The estimated costs and general loca- staff or others at NCA request, to detertion of these latter activities are to be mine pertinent facts and goals and their shown.

consistency with information contained (3) Certifications. The Applicant shall in the Project Agreement, Development submit certifications in such form as Plan, and other documents submitted HUD will prescribe, providing the assur- by the developer or obtained by NCA in ances required under $ 570.303(e) (1), the project review process. The review (3), (4) if applicable, (5) and (6) with will include application of the selection respect to activities undertaken with criterion in paragraph (d) (2) of this funds under this Part.

section. (4) Environmental review require- (2) Criterion for selection. The criments. (i) For activities proposed by an terion to be used in selecting among apapplicant eligible under $ 570.403(b) (2) plications and activities is whether the or (3), no new environmental review or grants are necessary to achieve new comclearances will be required by virtue of munity objectives.

(e) Grant administration. The pro- those entities described in $ 570.403(b) visions of Subpart F, Grant Adminis- (1), (2) and (3). tration, shall be applicable to applicants, (b) Criteria for selection. (1) Definiexcept that private developers shall not tion. An innovative community developbe required to con.ply with the competi- ment project is one which encompasses tive bidding requirements of subsections a concept, system, or procedure that is 3c (5), (6) and (8) of Attachment 0, FMC unique, advances the state of the comCircular 74-7, which is incorporated in munity development art and has the po$ 570.507.

tential for transferability. Where a (f) Program management. Program proposed project is one which has been management shall be accomplished demonstrated or is in use elsewhere, the within the framework of NCA project applicant will be expected to show the management, including the financial and key variables of the project within the physical progress reports required by applicant's jurisdiction which will be sigNCA administrative procedures.

nificantly different from previous proj(g) Remedies for non-compliance. The ects or that the circumstances and provisions of $$ 570.911, 570.912, and environment for its adaptation are dit570.913 shall apply, except that the pro- ferent. In general, a project will not be visions of $ 570.912, dealing with secur- considered as meeting innovative criing compliance through State governors, teria if it does not potentially advance shall not apply to private developers, or the state of technology. prospective grantees controlled by private (2) Selection priorities. Each year HUD developers.

may establish areas of national signifi

cance which will be given priority in the $ 570.404 Areawide projects. [Re

review of application for funds under served]

this section. In Fiscal Year 1975 priority § 570.405 Guam, the Virgin Islands, will be given to projects which address American Samoa, and the Trust Ter

one or more of the following areas: ritory of the Pacific Islands.

(i) Public service productivity. Efforts (a) Eligible applicants. Eligible appii

to make local government service more cants are Guam, the Virgin Islands, effective, more efficient and less costly, American Samoa, and the Trust Terri

and which are designed to mitigate the tory of the Pacific Islands.

effects of inflation. (b) Criteria for funding. Applicants

(ii) Community development energy may submit applications for discretion- conservation. Projects designed to enary grants for the full range of eligible

hance the rational use of energy for activities described in § 570.200. The Sec- community development. retary will estabilsh for each fiscal year

(iii) Neighborhood preservation. Projan amount for which each eligible appli

ects which maximize the use of existing cant may apply. For Fiscal Year 1975, the

housing stock and community developfollowing shall apply:

ment and other resources for neighbor(1) Guam and the Virgin Islands shall

hood preservation. each receive their hold-harmless amount

(3) Other criteria. In addition to the as calculated pursuant to $ 570.103(c).

above criteria, HUD will consider the Guam and the Virgin Islands may also

degree to which applications: apply for funds to cover urgent needs not (i) Benefit persons of low and modmet by the hold-harmless amounts.

erate income. (2) The Secretary shall establish a

(ii) Integrate and relate the provision funding level for American Samoa and of housing to the provision of public the Trust Territory of the Pacific Islands,

facilities and/or supportive social servtaking into account their needs and their ices. local administrative capacity.

(iii) Demonstrate improved policy(c) Application requirements. Appli- planning-management capacity. cants shall meet the application require

(iv) Demonstrate the involvement of ments in § 570.303.

both the public and private sectors.

(v) Encourage and reinforce the cre§ 570.406 Innovative projects.

ation of community and neighborhood (a) Eligible applicants. Eligible appli- development organizations with the cants are States, and units of general staff and ability to attract and involve local government as defined in 570.3 public and private resources. (v). For the purpose of this section, the (vi) Serve as a prototype for improvsecond sentence in 8 570.3(v) includes ing community development activities, the demonstration of which would not (ii) Draft Report. The recipient shall otherwise be undertaken without Fed- submit to HUD, six copies of a draft of eral assistance.

the final project report with all readily (vii) Promote an increase in the diver- reproducible charts, tables, graphs, and sity and vitality of neighborhoods.

appendices that are to be included in the (viii) Address problem areas common final report. In addition, each recipient to a substantial number of communities. shall meet the requirements of $ 570.906

(ix) Demonstrate activities which can (c) concerning notice of the availability be replicated by and transferred to a of the report for examination by the substantial number of communities. public with the exception that reports

(4) Other review factors. In addition, need only be available to be copied by each application will be evaluated by the public. such criteria as:

(iii) Final Report. The report shall de(i) The overall technical merit of the scribe in appropriate detail the objecproposed project including the specific tives of the project and how they were impact of the innovation.

met, the methods and techniques that (ii) The unique capabilities, related were used, the types of problems enexperiences, facilities or techniques countered during project execution and which the applicant possesses and offers the methods used to resolve them and for achieving the objectives of the the conclusions and recommendations project.

that are to be drawn from the demon(iii) The unique qualification capa- stration project. The final report shall bilities and experience of proposed key be in a form and manner prescribed by personnel.

HUD. (iv) The availability of discretionary (e) Records. Recipients must comply grant funding for innovative projects in with the requirements of $ 570.907, exlight of competing needs.

cluding $ 570.907(b). In lieu of this ex(c) Application requirements. Appli- ception, recipients shall maintain reccations shall be submitted to HUD's Of- ords describing the process used to profice of Policy Development and Research

vide an opportunity for citizens to comthrough the appropriate HUD Area Of- ment on the application. fice. Applications shall be in a format prescribed by HUD and shall include the

$ 570.407 Federally recognized


asters. following:

(1) A one page abstract summarizing (a) General. Grants under this section the proposal and indicating where else shall be for the purpose of meeting in HUD or any other Federal agency the emergency community development application has been sent within the last needs caused by federally recognized two years.

disasters. For purposes of this section, (2) A narrative describing the pro- “federally recognized disasters" means posed project and how it conforms to any hurricane, tornado, storm, flood, the criteria for selection.

high-water, wind-driven water, tidal (3) The certifications required by wave, tsunami, earthquake, volcanic $570.303(e) (1), (3), (4), (5), (6), and eruption, landslide, mudslide, snow(8) with respect to activities to be under- storm, drought, fire, explosion, or other taken with funds under this part. In ad

catastrophe in any part of the United dition, the applicant must certify that

States which (1) in the determination of citizens likely to be affected by the proj

the President, pursuant to the Disaster ect, particularly low and moderate in

Relief Act of 1974 (42 U.S.C. 5121n.), (i) come persons, have been provided an opportunity to

causes damage of sufficient severity and comment

the application.

magnitude to warrant major disaster as(d) Reports. In lieu of the annual per

sistance under such Act, above and beformance report cited in $ 570.906, re

yond emergency services by the Federal cipients shall submit the following: Government, to supplement the efforts (i) Outline for Final Project Report.

and available resources of States, local Midway through completion of the proj- governments and disaster relief organiect (or at an alternate point in time as zations in alleviating the damage, loss, specified by HUD) each recipient shall hardship, or suffering caused thereby, or prepare a detailed outline of the final (ii) requires Federal emergency assistproject report under guidelines provided ance to supplement State and local efby HUD.

forts to save lives and protect public



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