Ask the Scholar
Document scope · 1 page
Scholar
Ask about this object, its catalog metadata, its source description, or the page inventory.
For page-specific OCR and visual context, open one of the page chats.
Scholar Source Context
Document identity
localId
365081735
label
Grant Possibilities [1978-1979]
core
doc
dtoType
document
citationUrl
pageCount
1
Source metadata
id
365081735
contentType
document
title
Grant Possibilities [1978-1979]
citationUrl
collections
Lex Frieden Collection: Records on Disability Rights
Printed Materials
imageCount
1
hasImages
yes
source
import
hasTranscription
no
Source extras
naId
365081735
levelOfDescription
fileUnit
recordType
description
ocrSource
nara-archive
Single page context
seq
1
pageIndex
0
type
document
mediaId
c565d0c46e8fad3b
ocrText
Originally Processed With FOIA(s):
FOIA Number:
S
S
FOIA
MARKER
This is not a textual record. This is used as an
administrative marker by the George Bush Presidential
Library Staff.
Record Group/Collection: Donated Historical Materials
Collection/Office of Origin:
Frieden, Lex, Collection
Series:
Printed Materials
Subseries:
Reference Materials
OA/ID Number:
52142
Folder ID Number:
52142-010
Folder Title:
Grant Possibilities [1978-1979]
Stack:
Row:
Section:
Shelf:
Position:
CITY COUNCILMEN
LARRY MCKASKLE
City of
JUDSON ROBINSON, JR.
LOUIS MACEY
HOMER L. FORD
FRANK O. MANCUSO
HOUSTON
JIM WESTMORELAND
FRANK E. MANN
JOHNNY GOYEN
JIM McCONN, MAYOR
CONTROLLER
HOUSTON, TEXAS 77001
KATHRYN J. WHITMIRE
EDWIN R. BECNEL, Director
Community Development
Lex Frieden
September 11, 1979
9667 Meadowvale
Houston, TX 77063
Dear Lex:
Attached is a copy of two pages from the 1978 Catalog of Domestic
Assistance describing a program that may be of help to the Center for the
Handicapped.
If I can be of any further assistance, please contact me. I hope
your trip to Washington, D.C., is a successful one.
Jim Echert, CD Planner
Jim Community Development Ectit Division
1125 Brazos, Fourth Floor
Houston, TX 77002
coolition for barrier free living post office box 20803 houston, texas 77025
cbl
November 2, 1979
MEMO
TO:
Edwin Becnel
FROM: Lex Frieden
I would like to reiterate the report from our planning
committee which I gave you over the telephone on October 11,
1979.
1. The Committee has agreed to endorse, with the following
contingencies, the expenditure of CD funds reserved for
Center activities to purchase approximately 6.2 acres
of land near downtown Houston known as the Parke-estate.
2. Based on information provided by architects at Rice
University, the Committee feels it is necessary to
insure that at least 2.5 - 3 acres of this site be
reserved for construction of the Center.
3. The Committee believes that this reservation should
be clearly stated in the land purchase agreement and
associated ordinances or documents.
4. The Committee desires assurance and documentation via
written communication and public announcement that
the City is committed to building the Center and promises
to provide at least $2 million (in addition to that
already allocated) within the next twelve months for
actual construction of the facility.
telephone: 526 - 1651
d
n
d
City hopes land
45
e
e
buy will save
Allen Parkway
d
federal funds
Genesee
Saulnier
Louisiana
S.
Helena
(From Page 1)
IC
ne
a four-step process to acquire the land,
with the first being council's Thursday
vote to serve notice to property owners.
Helena
II-
During the meeting next week, Houston
West Gray
st
will give HUD "down to the penny figures
Is
and present any contingency plans or
mitigating circumstances" why it should
Bagby
S-
t-
not forfeit any money, Alexander said.
He said Houston had talked about the
Main
Bush Library Photocopy
r
Fourth Ward land acquisition on several
N
Preservation
e
occasions, terming it a contingency
d
project.
The city hadn't intended to begin work
Chronicle Newsgr aphic
1
on the acquisition until late next summer,
f
he continued, and if the purchase goes
The city of Houston is planning
h
through, "it will be remarkably quick
to purchase 6.8 acres just west
implementation.
However, construction would not likely
of downtown at Bagby and Hele-
S
begin for quite some time, Alexander
na for a park and handicapped
said.
center.
e
Under guidelines set earlier this year,
e
an action HUD took in light of the city's
n
slow community development progress
and its approximate $95 million credit,
l
Houston was told to spend $8.7 million
d
every four months SO this year's appropri-
ation of $26 million would not end up sit-
0
ting in accounts as in previous years.
All community development money is
m
to be spent within 23 targeted areas in the
city.
)
Alexander said some city officials now
are asking HUD to disregard the Nov. 28
deadline and go "double or nothing" when
the March deadline rolls around.
They are saying several multimillion-
dollar contracts will be let by spring and
U.S. funds
"substantial sum" as Mayor Jim McConn
There is "no possibility" his office will
construction begun for drainage, water
recommend that Houston keep any money
remaining after the purchase, Alexander
emphasized. Only HUD Secretary Moon
Landrieu could overrule Alexander's of-
An environmental impact statement on
the proposed park site in the Fourth Ward
has already been completed, and the re-
quired 15-day public notice period has
and sewer improvements, therefore show-
is hinting.
passed, Alexander said.
Now. he said, the city must go through
ing large expenditures of the necessary
(See CITY, Page 8)
$17.4 million for the two separate four-
fice.
month judging periods, Alexander ex-
plained.
Of the $3.3 million left unspent by the
Nov. 28 deadline, $3.1 million remained
for capital improvements, $104,000 for
housing rehabilitation loans and $175,000
for rehabilitation grants.
Instead of spending about $2.2 million
monthly to meet its expenditure quotas,
Houston has spent only about $1,371,000
monthly, Alexander said.
Houston's poor performance has not
just been noticed by HUD officials.
Citizen commissioners elected to help
"It's a moral outrage," Dale Gorc-
zynski, city councilman-elect and com-
the Heights, said. "It's heartbreaking to
City plans fast land purchase to save
der said, the department could consider it
a legitimate expenditure and consequent-
ly reduce the amount of money threat-
Under the deadline mandate, he said,
the planned acquisition does not legally
qualify but an exception could be made.
"We (at HUD) do not idly impose condi-
plan community development improve-
tions unless we plan to effectuate them,"
he said. "We've given the city four years"
to make progress in its community devel-
opment program, progress not quickly
forthcoming even this year, he added.
Alexander expects the land purchase to
cost $1 million to $2 million and not such a
ments have reactly harshly.
ened.
munity development commissioner from
be returning money when the needs of the
community are SO great."
But, he said, "I'm not surprised. The
city's community development staff has
demonstrated a lack of urgency during
my association with the program.
'They' been very slow in implement-
ing neighborhood improvements and have
resisted repeated suggestions from the
neighborhood people and the elected com-
missioners."
Larry Ybarra, the commissioner from
City officials say the purchase could
the Magnolia subdivision, said there is
run very close to the approximate $3.3
million remaining from about $8.7 million
in federal money the city was to have
spent by Wednesday.
The Department of Housing and Urban
Development, which administers the
community development program, had
imposed the Wednesday cut-off date, but
Jim Alexander, a regional HUD official,
said Thursday the planned land acquisi-
tion still could qualify for the deadline.
If city officials convince HUD at a
meeting next week that the purchase can
be completed by mid-December, Alexan-
bad planning and management within the
city's community development office and
in its cooperation efforts with other city
departments.
"There's no problem in coming out with
projects or ideas on how to spend the
money, he said, "The problem is getting
the structure (city officials) to take the
money and get the projects done."
J.S. Gray, commissioner for the Stude-
n
wood area, said he once had "high hopes"
and "a lot faith," but that now he's con-
fused and unable to understand the
problems in spending the community
st
development money.
of
"We ve had very little done in our com-
er
munity,' he said, "and it's SO badly need-
ed."
BY SUSAN LEVINE
Chronicle Staff
The city of Houston is planning a rapid
multimillion-dollar land acquisition for a
park and handicapped center just west of
downtown in hopes of salvaging about $3.3
million in federal community develop-
City Council on Thursday authorized
the city Real Estate Department to pur-
chase about 6 acres at Bagby and Helena
within a few weeks. The property current-
ly is an unimproved vacant tract with
on
ment funds.
some trees on it.
/
whites - 2yr.
made plan for plog
got drowings for Sity
Jes, M mil. for Ct,
got land
(priate funds
want grant us City
of mgg )
(speds flex)
need to demon support
of psw fector
of & capability of org.
need full time Imp.
to: &
plan of Coor. service program
weg add funds
Little Roch nov 26-28
Ansti "24- 30
CBFL - Coalition for Barrier Free Living
P.O. Box 20803
Houston, Texas 77025
713-654-1207
MEMO
TO: Edwin Bechnel, Director
Community Development Program
FROM: Lex Frieden, Chairman LF
Handicapped Center Planning Committee
DATE: December 4, 1979
SUBJ: Acquisition of Land for the Center for the Handicapped
Please be advised that it is and always has been the intent
and understanding of the Center planning committee that a
portion of the Community Development fund appropriated for
the Center for the Handicapped might be used to acquire
land for the Center. Both the original proposal and the
updated fact sheet on the Center refer to land space require-
ments.
It is true that some consideration has been given to the
possibility that either the City or some private organization
might donate land to be used for the Center. However, there
has been no such offer to date and research by our site plan-
ning committee done earlier this year indicated that none
should be expected. Thus, it would seem necessary to expend
a portion of the funds allocated for the Center to purchase
land on which to build it. Obviously, the Committee would
prefer to spend as small amount of money as possible on the
acquisition of land for the Center in order to conserve as
much money as possible for construction of the facility itself.
Please feel free to contact me if I can provide further infor-
mation related to work done by our committee.
Carter Decisions
1)
agree to use 3 mil
On Fasker Parts
($12/2) and have
Center there +
2 mil neft year
for bldg.
P
?
request purchase
of Rams Chil @
$ 60Q000 of rest of
block (20,000 4g 8'@70)
plus perhaps the
other blocks 42,000 +
@7.50.
$750,000 +$ 315,000
3 hold out for
other possibilities
Risks
W w # 1 : may
werer get the other
Z mil.
W #2: : may not
Pass Comical soon
enough may
not be repearable
W#3: may
ignore us of
do / anyway
LEGEND
RECREATIONAL FEATURES
FEATURE
EXISTING
PROPOSED
DAVID D. TERRY LAKE
ROADS
PAVED
POOL EL. 231
GRAVEL
EXISTING GRAVEL :0 BE PAVED
--Courlesy Pier
Public Launching Area
EXISTING DIRT 10 BC GRAVELED
REST ROOMS VAULT TYPE. MASONRY
FLOW
230
REST POOMS.TO BE CONVERTED TO WATER BORNE
ARKANSAS RIVER
REST ROOMS VAULT TYPE. WOODEN
REST ROOMS WATER BORNE
TRAILER MARINE SANITARY STATION
+
WELL
Sand Deposit
BASIN
WELL WITH SHELTER
$
WATER HYDRANT
Farking|Area
230
Courtesy Pier
Parking Area
DRINKING FOUNTAIN
Parking,Area
Public Launching Area.
Sand Deposit
DRINKING FOUNTAIN WITH SHELTER
$
S
3
BOAT RAMP
12'
PICNIC SHELTER
or
PS
CHANGE HOUSE
CH
CM
12 Ficnic Lasts
CAMPERS WASH HOUSE
CWM
CW4
OTHER BUILDINGS NAMED
PG
PICNIC SPACE
a
WB
23 Units
ABLE
FIREPLACE OR CHARCOAL UNIT
REFUSE CAN
with TABLE SHELTER
$
ELECTRICAL
BIKE TRAIL
SUBSTATION
(PRIVATE)
ACTIVITY COURSE
EXISTING
ACTIVITY STATIONS
*
BICYLE TRAIL
LEASE
LIMITS
ARKANSAS RIVER WATERSHED ARKANSAS RIVER. ARKANSAS
Murray
Park
UPDATED MASTER RECREATION PLAN
ARKANSAS RIVER
MURRAY DAM SITE
PARK
Barrier- 0 Free Activity Course
SHEET 2 OF 2
SCALE OF FEET
200
0
200
400
U.S. ARMY ENGINEER DISTRICT, LITTLE ROCK
LITTLE ROCK. ARKANSAS. DECEMBER 1975
DESIGNED BY: DON. CHAMBERS, MEHLBURGER ENGINEERS, INC. OCTOBER 1979
PI ATF 25A
Lex Frieden
WEDNESDAY, MARCH 1, 1978
PART III
ARCHIVES OF THE
NATIONAL THE STATES UNITED
1934
Relavant
DEPARTMENT OF
sections
HOUSING
/
starred
AND URBAN
570.204
DEVELOPMENT
570.201 (3)
Office of the
Assistant Secretary for
Community Planning and
Development
COMMUNITY
DEVELOPMENT
BLOCK GRANTS
Eligible Activities
AL MAYS
8434
RULES AND REGULATIONS
[4210-01]
this subpart and other specific re-
Paragraph (f)(2) establishes a gener
Title 24-Housing and Urban Development
quirements for each type of applicant
al rule that no special assessments
contained in Subparts D. E. F. or G
may be levied which would recover
CHAPTER V-OFFICE OF THE ASSISTANT SEC-
are met. The paragraph is not intend-
RETARY FOR COMMUNITY PLANNING AND
ed to replace or modify those require-
any costs of a public improvement pro-
DEVELOPMENT, DEPARTMENT OF HOUSING
ments, but to direct attention to the
vided with block grant funds. Charg-
AND URBAN DEVELOPMENT
fact that there are other requirements
ing low- and moderate-income persons
that must also be met.
for improvements provided with block
[Docket No. R-78-471]
grant funds is contrary to the basic
URBAN DEVELOPMENT ACTION GRANT
purposes of the program.
PART 570-COMMUNITY DEVELOPMENT
The eligibility of activities under the
The paragraph does provide that
BLOCK GRANTS
Urban Development Action Grant
HUD may grant applicants exceptions
Subpart C-Ellgible Activities
(UDAG) program has been changed in
to the general rule to permit special
AGENCY: Department of Housing
paragraph (b) of 570.200 in accor-
assessments to be levied against prop-
and Urban Development.
dance with several comments. First, It
erties as a means of leveraging private
ACTION: Final rulemaking.
has been made clear that UDAG funds
investment to implement strategies for
may be used for new housing construc-
economic development or neighbor.
SUMMARY: HUD is issuing final rules
tion. Secondly, the rules governing in-
hood revitalization so long as no spe-
on Subpart C of the regulations gov-
eligible activities set forth in § 570.207
cial assessments are levied against
erning eligible activities for the com-
do apply to the UDAG program. When
properties owned and occupied by low-
munity development block grant pro-
HUD exercises the special authority
and moderate-income persons and any
gram under Title I of the Housing and
set forth in § 570.453 which permits a
block grant funds which are recovered
Community Development Act of 1974,
finding that activities are consistent
are treated as program income.
as amended. Rules governing the eligi-
with the statutory objectives for
Paragraph (f)(3) indicates that
bility of activities have been revised
UDAG, this special authority is not
where eligible public improvements
for clarity and to incorporate new ac-
limited by 570.207 and activities
are provided from local revenue
tivities authorized by Title I of the
which might normally be deemed in-
sources which will be reimbursed
Housing and Community Development
eligible for block grant funding may
through special assessments, block
Act of 1977.
nonetheless be authorized by HUD.
grant funds may be used to pay the
EFFECTIVE DATE: March 1, 1978.
special assessments in behalf of low-
MODEL CITIES ACTIVITIES
and moderate-income property
FOR FURTHER INFORMATION
CONTACT:
In response to several questions
owners. In order for special assess-
raised by the comments, paragraph (c)
ments to be paid with block grant
William Hammer, Program Stan-
of § 570.200 has been revised to Indi-
funds, the public improvements must
dards Division, Office of Community
cate that once the special authority
be identified in the Community Devel-
Planning and Development, Depart-
for previous model cities activities has
opment Program, and have been initi-
ment of Housing and Urban Devel-
expired, old model cities activities
ated on or after the effective date of
opment, Washington, D.C. 20410,
must then meet the regular eligibility
these regulations. Applicants which
202-755-6304.
requirements of Subpart C in order to
propose to pay special assessments
SUPPLEMENTARY INFORMATION:
be eligible to continue to receive block
with block grant funds must carry out
On October 25, 1977 (42 FR 56540)
grant funds.
the appropriate environmental reviews
proposed revisions to Subpart C were
and clearances for the public improve-
ACTIVITIES OUTSIDE OF AN APPLICANT'S
published in the FEDERAL REGISTER for
ment under 24 CFR Part 58.
BOUNDARIES
public comment. Interested parties
were given until November 25, 1977, to
Several comments requested clarifi-
CONSULTANT ACTIVITIES
submit written comments. All com-
cation of the provisions governing the
Paragraph (g) of § 570.200 regarding
ments received with respect to the
use of block grant funds outside of an
consultant fees received a great deal of
proposed rules governing eligible ac-
applicant's boundaries. The general
comment. The limitation on consul-
tivities in Subpart C were given due
rule is that the undertaking of an ac-
tant fees was prescribed by statute in
consideration. As a result of the com-
tivity by an applicant outside of its
section 409 of Department of Housing
ments received, the following changes
boundaries is permissible so long as it
and Urban Development Independent
were made:
is not plainly inappropriate to meeting
Agencies Appropriation Act, 1978
the applicant's identified needs or in-
GENERAL POLICIES
(Pub. 95-119). Therefore, there is no
consistent with State or local law.
alternative to the GS-18 limitation on
Based upon several suggestions con-
SPECIAL ASSESSMENTS
compensation of consultants which is
tained in comments on the proposed
required by statute. The current rate
regulations, a number of changes were
There were a number of comments
of compensation under Federal law for
made to the general policies governing
directed at the issue of special assess-
a GS-18 is $47,500 per year, with a
eligible activities.
ments under the block grant program.
daily rate calculated to be $182.68.
Paragraph (a) of § 570.200 was re-
Section 570.206(h) of the proposed
Any contract with a consultant shall
vised to indicate that activities must
regulations has been deleted and a
provide that each person acting as a
comply. with the general purposes of
new paragraph (f) of I 570.200 has
consultant or employed by a consult-
the block grant program and program
been added regarding special assess-
ing firm shall not be compensated at
requirements as they apply specifical-
ments.
more than a reasonable rate which
ly for entitlement applicants in Sub-
A new paragraph (f)(1) contains a
may not exceed the statutory maxi-
part D, applicants under the Secre-
definition of "special assessments"
mum. Further, contracts for such ser-
tary's Fund in Subpart E, Small City
which makes clear that the term is di-
applicants in Subpart F. or Urban De-
vices shall specify that the amounts of
rected toward fees charged for the
velopment Action Grant applicants in
compensation and payments to a con-
capital cost of installation of public
Subpart G. The principal purpose of
sultant shall be subject to adjustment
Improvements and is not related to
this paragraph is to serve as a remind-
where monitoring reviews or audits in-
property taxation or determination of
er that activities may be funded only
dicate that personal services were com-
property values for the purposes of
where the eligibility requirements of
pensated at greater than a reasonable
taxation.
rate.
FEDERAL REGISTER, VOL 43, NO. 41-WEDNESDAY, MARCH 1, 1978
RULES AND REGULATIONS
8435
TRANSITION POLICY FOR FISCAL YEAR
purposes which is acquisition of land
are also eligible for block grant fund-
1978
for development of low- and moderate-
Ing.
A number of activities contained in
income housing.
Solid waste disposal facilities must
Subpart C contain. as a part of their
There were a number of comments
serve areas where activities included in
requirements for eligibility, a relation-
regarding the example contained in
the Community Development Pro-
ship to the strategy statements. Other
paragraph (a)(5). This example was in-
gram are being carried out, such as
activities are to be located in or serve a
tended as only one among many legiti-
neighborhood strategy areas. Para-
Neighborhood Strategy Area (NSA),
mate public purposes for which block
graph (c)(5)(i) implements this re-
which is the term now used instead of
grant funds may be used and HUD has
quirement. The reference to being lo-
Comprehensive Neighborhood Revital-
decided to retain the example. Central
cated in such an area should not be
ization Area described in Subpart D of
cities might decide to acquire existing
taken as encouragement for the loca-
the proposed regulations.
housing within their jurisdictions or
tion of solid waste facilities In residen-
Since many applications will be re-
outside at their own discretion, pursu-
tial neighborhoods.
ceived prior to the effective date of
ant to State and local law, as means to
that subpart, paragraph (h)(1) of
implement strategies for spatial decon-
FIRE PROTECTION AND PARKING
570.200 sets forth an interim policy
centration. This example was cited for
FACILITIES
to enable applicants to undertake
illustrative purposes in response to
Paragraphs (c) (6) and (7) of
these activities prior to the submission
questions about such undertakings
570.201 have been changed pursuant
of the three year strategy statements.
which have arisen several times in the
to comments to provide that such fa-
Applicants desiring to carry out
past. HUD wished to clarify that funds
cilities must be located in or serve
these activities during fiscal year 1978
may be used in this manner. Appli-
areas where activities listed in the
shall submit a brief narrative interim
cants have full discretion to decide
policy description. This will include
Community Development Program are
whether to employ such a mechanism
for each proposed activity requiring a
being carried out, such as Neighbor-
and to formulate appropriate means
relationship to a strategy statement, a
hood Strategy Areas.
for such an undertaking with adjoin-
brief description of the activity, the
ing jurisdictions.
STREET IMPROVEMENTS
needs and conditions that the activity
is designed to address, and how the ac-
NEIGHBORHOOD FACILITIES
Several comments suggested that
tivity will impact on those needs and
curbs, gutters, and sidewalks be men-
conditions.
Paragraph (c)(4) has been revised as
tioned specifically. Paragraph (c)(9) of
Paragraph (h)(2) sets forth provi-
a result of comments to delete the ref-
§ 570.201 has been changed according-
sions for designation of interim NSA's.
erence to a specific 51 percent require-
ly.
HUD agreed with the comments that
ment. The 51 percent rule was per-
the definition of Comprehensive
celved to imply that some form of
RECREATION FACILITIES
Neighborhood Revitalization Area
quantitative measurement would be
necessary. This was not Intended and
Several comments questioned
contained In the proposed rules was
the requirement has been deleted.
whether any spectator facilities could
too stringently defined and will use
Neighborhood facilities shall be pri-
be provided as an incidental part of re-
the term "Neighborhood Strategy
creation facilities authorized by para-
Area (NSA)" in lieu of Comprehensive
marily designed to meet the needs of
Neighborhood Revitalization Area.
neighborhood residents. This does not
graph (c)(2) of § 570.201, which is sub-
NSA is more broadly defined than the
preclude Incidental use of neighbor-
stantially identical to the rule in effect
previous term. For example, the three
hood facilities by non-residents.
for the past three years. It would cer-
Paragraph (c)(4)(1) has been
tainly be permissible to provide limit-
to five year limit on substantially
meeting the needs of the area is no
changed to indicate that a neighbor-
ed seating space for spectators at rec-
longer used. As it is now defined, the
hood facility may serve an area locally
reational facilities. For example, some
term also provides greater flexibility
designated as a neighborhood.
limited seating facilities at a softball
and is applicable to varied local condi-
Paragraph (c)(4)(ii) has been revised
field which are incidental to the pri-
tions. If the applicant concentrates
to include small cities of 25,000 popu-
mary use for persons to participate
physical development activities in a
lation or under as the equivalent of a
would be permissible, whereas a facili-
given area in a manner consistent with
neighborhood. The increase from
ty with seating accommodations for
the statutory requirements for public
10,000 to 25,000 population has corre-
several hundred or more persons to
services described in § 570.201(e), the
spondingly been revised in
watch competitive sports such as high
area should meet the revised defini-
570.207(a)(2)(i).
school football is more properly con-
tion for an NSA. Upon the issuance of
sidered an ineligible spectator facility.
final regulations governing Subpart D,
SOLID WASTE DISPOSAL FACILITIES
OTHER PUBLIC FACILITIES AND
the preamble will further describe
There were a number of comments
IMPROVEMENTS
these changes.
regarding solid waste disposal facili-
The paragraph further describes the
ties. The facilities eligible for assis-
Paragraph (c)(14) of § 570.201 pro-
interim NSA designation that may be
tance quite simply do not include the
vides that public facilities and im-
used during fiscal year 1978 prior to
use of block grant funds for the Initial
provements other than those listed in
the adoption of final rules governing
collection of solid waste. Items such as
$ 570.201(c) may be assisted where
Subpart D. The interim NSA's are des-
garbage collection trucks and trash
they are necessary and appropriate to
ignated by the applicant. A brief nar-
collection receptacles are not eligible.
implement an applicant's strategy for
rative description of the applicant's
Similarly, using block grant funds to
neighborhood revitalization or hous-
plans for activities in the NSA should
provide solid waste collection services
ing. General municipal buildings
be included.
under this paragraph is not eligible.
which are described as ineligible in
ACQUISITION OF REAL PROPERTY
Paragraph (c)(5)(ii) accordingly re-
570.207(a)(1) will not be authorized.
flects that initial collection of solid
Applicants must submit to HUD a de-
In response to one comment, para-
waste is not eligible.
scription of the proposed facility or
graph (a) of 570.201 has been
Sites, fixtures, and equipment used
improvement and its relationship to
changed to make clear that rights-of-
after the final collection process are
the applicant's strategy. In authoriz-
way and easements may be purchased
eligible. This may include incinerators
ing activities under this provision
with block grant funds.
or sanitary land fills and their appur-
HUD will consider the amount of
Paragraph (a)(5) includes a second
tenances. Similarly, intermediate
benefit to low- and moderate-income
example of acquisition for other public
transfer sites, fixtures, and equipment
persons which results, the degree of
FEDERAL REGISTER, VOL. 43, NO. 41-WEDNESDAY, MARCH 1, 1978
8436
RULES AND REGULATIONS
impact on the identified needs of the
vided in an area for four years when
applicant. and the availability of other
Paragraph (f)(1) describes these ac-
the required concentration of block
Federal funds for the activity.
tivities. These include the collection of
grant assisted physical development
PUBLIC SERVICES
activities was present and be contin-
garbage. trash, and debris as part of
ued for three more years after the
neighborhood clean up compaigns.
Quite a number of comments were
physical development activities were
However, the regular collection of gar-
received regarding public services. The
complete.
bage or trash in an area at curb side
Paragraph (e)(2) has been revised to
would be considered a normal munici-
statutory requirements governing ser-
vices are very specific and HUD is
delete the requirement that two-thirds
pal service and is not eligible for assis-
tance.
limited by those requirements. Para-
of the persons receiving a public ser-
graph (e) of § 570.201 has been revised
vice be neighborhood residents. This
Paragraph (f)(2) discusses the
pursuant to comments as follows:
requirement was confused with the
second type of interim assistance ac-
First, the introductory paragraph in-
proposals In Subpart D as proposed re-
tivity which is directed toward the al-
dicates that a service must meet five
lating to program benefit and could re-
leviation of imminent threats to public
criteria to be eligible for funding.
quire quantitative measurement not
health and safety. The chief executive
Paragraph (e)(1) has been changed
contemplated by the statute. Services
officer of an applicant may determine
to delete the word "must" which con-
must be designed to serve area resi-
that an Imminent threat to public
veyed the impression that services are
dents, but may also serve other resi-
health and safety exists in an area and
required to be provided. Rather, the
dents on an incidental basis.
shall inform the appropriate HUD
provision of eligible services is at the
Some of the comments demonstrat-
Area Office within seven days of the
option of the applicant, but can be
ed confusion regarding the relation-
determination. Imminent threats to
provided in a Neighborhood Strategy
ships to State, local and Federal fund-
the public health and safety are de-
Area where there is the required con-
ing sources. Paragraph (e)(3) has been
scribed in greater detail in Subpart F.
centration of block grant funded com-
revised to refer to local revenue
Three types of activities may be un-
munity development activities.
sources. A service must be a quantifi-
dertaken as interim assistance in areas
The proposed rule stated-that public
able increase over the level of service
where an imminent threat is present.
services must be provided for residents
provided in the previous twelve
These include the repair of private
of Comprehensive Neighborhood Revi-
months from the revenue sources of
property, the repair of public facilities
talization or similar areas. Analysis of
the applicant or from State funding
and improvements, and the removal of
the comments showed two major areas
sources. The statute did not include
trash, debris, and unsafe structures.
of concern. Many comments indicated
Federal sources and neither does this
REMOVAL OF ARCHITECTURAL BARRIERS
that public services should be permit-
regulation. Rather, Federal sources
ted anywhere in the locality so long as
must be determined not to be available
Several comments requested further
the services benefitted low- and mod-
at the time of funding pursuant to
clarification of the term "privately
erate-income persons. Others felt the
paragraph (e)(4). An otherwise eligible
owned" as it relates in paragraph (k)
definition of Comprehensive Neigh-
service provided from block grant
of § 570.201 to the removal of architec-
borhood Revitalization Areas was too
funds may also be continued at the
tural barriers. The term is quite literal
restrictive and expressed concern that
same level in subsequent years since
in Its use and means any privately
the definition would limit activities to
Federal funds are not measured.
owned building, facility, or improve-
areas which were very small or in rela-
In paragraph (e)(5), an example has
ment. This includes residential struc-
tively good condition, thus preventing
been cited of an activity necessary and
tures and non-residental structures.
applicants from undertaking compre-
appropriate to support physical devel-
For example, architectural barriers to
hensive programs in areas of greatest
opment activities. Several comments
privately owned apartment buildings
need or designating areas large
suggested that applicants be required
or supermarkets could be removed
enough for public services to be pro-
to submit all determinations for
with block grant funds pursuant to
vided in an economical and effective
review by HUD. Such a process was
paragraph (k).
manner.
tried in prior years and was ineffec-
Applicants undertaking barrier re-
The final rule permits public ser-
tive. The process of a local determina-
moval activities to be carried out with
vices to be provided only in Neighbor-
tion of appropriateness to be made by
block grant funds are encouraged to
hood Strategy Areas which is the term
applicants will be retained with provi-
follow the standards prescribed by the
used in place of Comprehensive Neigh-
sion for HUD oversight in those more
American National Standards Insti-
borhood Revitalization Area. The stat-
extreme cases where the required link-
tute, Incorporated in publication
ute permits public services only in
ages are obscure.
ANSI.A117.1-1961 (R1971).
those areas where block grant funded
Finally, the only physical develop-
physical development activities are
ment activities which are able to satis-
ASSISTANCE TO PRIVATE UTILITIES
being carried out in a concentrated
fy the requirements of paragraph (e)
Paragraph (1) of $ 570.201 authorizes
manner. The limitation of public ser-
are those funded from the block grant
the use of block grant assistance to
vices to NSA's most closely conforms
program. This requirement is statu-
to this statutory requirement and is
privately owned, publicly regulated
tory and cannot be modified as several
intended to eliminate the confusion
utilities for activities including the
comments have suggested.
placing of distribution facilities under-
regarding the eligibility of public ser-
vices. Notwithstanding the worthiness
INTERIM ASSISTANCE
ground. Such activities must be neces-
of many services or the desire ex.
sary and appropriate to implement an
As a result of a number of com-
applicant's strategy for neighborhood
pressed in some comments for greater
ments, parągraph (f) of § 570.201 has
flexibility to fund services, the statute
revitalization, or housing in order for
been revised. Interim assistance may
does not provide for block grant assis-
assistance to be provided for this type
take place in two situations. First, in
tance for citywide public services.
of commercial real property improve-
areas designated for physical develop-
ment.
Finally, the paragraph has been
ment activities to take place during
changed to indicate that during each
the three year period of the Communi-
REHABILITATION OF RESIDENTIAL
year the required concentration of ac-
ty Development Program, certain in-
STRUCTURES BY PUBLIC BODIES
tivities is present, public services may
terim activities may be undertaken as
be provided, and services may aslo be
As a result of several comments,
a prelude to the carrying out of more
continued for up to three years after-
paragraph (a) of § 570.202 has been
comprehensive treatment and to hold
ward. Hence, a service might be pro-
changed to clarify the term "public
the area from further deterioration.
residential structures." Block grant
FEDERAL REGISTER, VOL. 43, NO. 41-WEDNESDAY, MARCH 1, 1978
RULES AND REGULATIONS
8437
funds may be used to rehabilitate
activities to assist low- and moderate-
pose of supporting economic develop-
properties owned or acquired by a
income persons to maintain rehabill-
ment. For example, 570.201(d) pro-
public body which are either to remain
tated units in order to continue the
vides sufficient authority for the use
in public ownership or to be sold. This
stabilization of an area once more
of block grant for clearance and demo-
includes single and multifamily perma-
comprehensive treatment is complet-
lition activities for economic develop-
nent dwelling units and residential fa-
ed. Such activities must meet the
ment purposes. It would be redundant
cilities, including group homes, half-
public services provisions of
to provide for clearance and demoli-
way houses and emergency shelters.
570.201(e).
tion activities in § 570.203 when suffi-
REHABILITATION BY PRIVATE ENTITIES
Paragraph (c)(3) provides that block
cient authority for these activities is
grant funds may be used to purchase
available elsewhere.
A number of comments were re-
materials for the rehabilitation of
There was some concern expressed
ceived regarding paragraph (c)(1) of
properties. Applicants should make
in the comments regarding the appar-
570.202 which have resulted in a
adequate provision to ensure that ar-
ent open ended nature of activities au-
number of revisions.
rangements are made to provide the
thorized by this section particularly
Private entities, including both those
labor necessary to utilize the materials
the authority in paragraph (b) for oth-
which are nonprofit and profit
in rehabilitation efforts. In some in-
erwise ineligible public facilities and
making. may use block grant funds to
stances the property owner or tenant
improvements. The paragraph has
acquire structures for rehabilitation to
may be able to donate the labor, or
been revised to exclude general gov-
be used as housing. This includes both
other arrangements, such as the use of
ernment facilities listed in
permanent single and multifamily
CETA grant funds, might be devel-
§ 570.207(a)(1) from gaining eligibility
dwelling units which may be retained
oped by the applicant.
under this paragraph. Activities un-
by the private entity or resold, and
dertaken pursuant to § 570.203 must
also residential facilities such as group
CODE ENFORCEMENT
be necessary and appropriate to imple-
homes, halfway houses, and emergen-
Several comments indicated that
ment an applicant's economic develop-
cy shelters. Upon completion of the re-
code enforcement activities should be
ment strategy.
habilitation activities the housing
permitted on a citywide or spot basis.
In order for an otherwise ineligible
units must meet the basic health and
The statutory authority for this activ-
facility or improvement to be funded
safety standards of the Section 8 Ex-
ity does not provide for the use of
under paragraph (b), specific prior au-
isting Housing Program.
block grant funds In such a manner.
thorization must be obtained from
OTHER REHABILITATION ASSISTANCE
Rather code enforcement must be un-
HUD. In authorizing activities, HUD
dertaken as part of a more comprehen-
will determine the necessity or appro-
Block grant funds may be used in a
sive treatment of a deteriorated or de-
priateness of an activity by taking into
number of ways to assist in the reha-
teriorating area. This activity should
account several factors, such as the
bilitation of privately owned proper-
be designed to supplement, but not re-
amount of long-term employment the
ties. Paragraph (d) of § 570.202 indi-
place an applicant's routine enforce-
facility or improvement will generate
cates that block grant funds may be
ment activities.
for low- and moderate-income persons,
used for temporary relocation ex-
Paragraph (e) of $ 570.202 has been
the necessity of the activity for stimu-
penses for those displaced temporarily
modified to Indicate that block grant
lating private investment, the degree
by rehabilitation activities being car-
of impact on the economic conditions
assisted code enforcement activities
ried out with block grant assistance.
may only take place in areas where'ac-
of the applicant, and the availability
In response to several comments
tivities listed in the Community Devel-
of other Federal funds for the activity.
paragraph (c)(2) states that rehabilita-
Applicants must also request deter-
opment Program are being carried out,
tion financing may be provided either
minations for paragraphs (a) and (c).
such as Neighborhood Strategy Area.
in areas where activities listed in the
By implementing the statutory pròvi-
community development program are
HISTORIC PRESERVATION
sions in this manner for activities
being carried out or on a citywide spot
which are not normally a part of the
basis for low- and moderate-income
Paragraph (f) of § 570.202 had been
block grant program, HUD will ensure
changed to include properties listed on
persons.
the flexibility for applicants and that,
Paragraph (c)(2)(iii) makes clear
local registers of historic places among
where such special activities are to
that both heating and cooling equip-
those properties defined as historic by
take place under 570.203, they occur
ment may be converted, modified, or
this paragraph.
within the framework of the basic ob-
replaced and states explicity that solar
A number of comments addressed
jectives of the block grant program.
energy equipment may be used. Al-
the program benefit criteria set forth
Several comments suggest that an
though applicants may carry out a
in § 570.302 as they relate to historic
authority similar to that provided in
program of rehabilitation assistance
preservation activities. These require-
570.204(c) also be provided directly
designed solely to weatherize units
ments are set forth in other subparts
for applicants in § 570.203. Special au-
and increase their energy efficiency,
of these regulations depending upon
thority was provided in the statute for
such program should not ignore seri-
the nature of the applicant. For exam-
neighborhood based nonprofit organi-
ous deficiencies in units being weath-
ple, entitlement applicants should
zations, Small Business Investment
erized which render the units unsafe.
refer to the appropriate requirements
Companies, and local development cor-
Paragraph (c)(2)(v) has been added
of Subpart D to determine whether
porations. The statute does not pro-
in response to several comments. The
historic preservation activities, or any
vide a similar authority for applicants,
paragraph permits the use of block
other activities, comply with the crite-
so such a provision cannot be included
grant funds to pay Initial homeowner
ria regarding program benefit.
in § 570.203.
warranty premiums at the time of
ECONOMIC DEVELOPMENT ACTIVITIES
loan or grant settlement to protect the
ACTIVITIES BY PRIVATE NONPROFIT EN-
quality of workmanship of the reha-
A large number of comments were
TITIES, NEIGHBORHOOD-BASED NoN-
bilitated unit.
received regarding the economic devel-
PROFIT ORGANIZATIONS, SMALL BUSI-
Several comments requested that
opment activities described in
NESS INVESTMENT COMPANIES, AND
HUD permit activities to be carried on
570.203. Several comments suggested
LOCAL DEVELOPMENT CORPORATIONS
a longer-term basis as a means of sup-
that activities listed in other sections
A number of comments were re-
porting neighborhood stabilization ef-
of the subpart also be listed here. Ac-
ceived requesting clarification of
forts once physical rehabilitation of
tivities listed in §§ 570.201 and 570.202
§ 570.204. paragraphs (a)(2) (i) and (ii)
the structures is completed, including
may also be undertaken for the pur-
of Section 570.204 have been revised to
FEDERAL REGISTER, VOL 43, NO. 41-WEDNESDAY, MARCH 1, 1978
8438
RULES AND REGULATIONS
distinguish between private nonprofit
termined by HUD to be necessary or
entities and neighborhood based non-
a part of the broader environmental
appropriate to meeting the needs and
profit organizations. Certain activities
objectives of its community develop-
assessment and clearance of block ac-
may be undertaken by only neighbor-
tivities are eligible for assistance.
ment plan. It is recognized that com-
hood-based nonprofit organizations,
prehensive planning activities carried
INELIGIBLE ACTIVITIES
and not other private nonprofit enti-
out with block grant funds may relate
ties. under paragraph (c) of this sec-
to elements beyond the scope of activi-
Paragraph (a) of $ 570.207 has been
tion. A nonprofit organization which is
ties eligible for assistance under
changed to clarify several points re-
neighborhood-based is defined in para-
§§ 570.201 and 570.202.
sulting from requests contained in the
graph (a)(2)(ii) as one having a major-
comments. The basic rule is that Items
ity of its membership, clientele, or gov-
ADMINISTRATIVE COSTS
set forth as ineligible in this section
erning body residing in the neighbor-
hood where the activities are to be car-
A number of comments were re-
generally may not receive block grant
ried out.
celved regarding general administra-
assistance. There are several specific
Paragraph (a)(2)(i) describes the
tive costs which are now set forth sep-
exceptions. If a facility or improve-
other private nonprofit entities which
arately In I 570.206. Several comments
ment is authorized under the special
suggested that HUD place a percent-
authority to permit other public facili-
do not qualify as neighborhood based.
age limitation upon the amount of
ties and improvements necessary for
Although these entities may use block
block grant funds that an applicant
strategy implementation pursuant to
grant funds are eligible activities
§§ 570.201(c)(14) or 570.203(b), respec-
under paragraph (b), they are ex-
may spend on administration. Because
cluded from the authority to under-
of the variety of grant sizes, types of
tively, this authorization is deemed to
take certain other special activities
applicants, and activities being under-
supersede the limitations of this para-
listed in paragraph (c).
taken which vary in complexity, HUD
graph. Further, the removal of archi-
has determined that there is no single
tectural barriers and historic preserva-
Paragraph (a)(2)(III) has been re-
vised to refer to Small Business Invest-
limitation that could be imposed
tion activities authorized by
ment Companies (SBICs) organized
which would be equitable in all situa-
§§ 570.201(k) and 570.202(g), respec-
pursuant to 8 301(d) of the Small Busi-
tions. Rather, the term "reasonable" is
tively, may be carried out on facilities
the key term in the statute and in the
and improvements listed as a part of
ness Investment Act of 1958, as
paragraph. HUD will continue to mon-
§ 570.207(a) which would otherwise be
amended, which include profitmaking
entities. SBICs which are organized on
itor administrative costs, particularly
ineligible for block grant assistance.
a profitmaking basis are fully eligible
where applicants incur administrative
Paragraph (a)(2)(v) has been revised
to use block grant assistance.
costs significantly higher than those
to clarify the nature of devices which
Paragraph (a)(2)(iv) now Includes
of other applicants with similar grant
are included as ineligible sewage treat-
sizes and activities.
ment facilities. These include the
State development corporations eligi-
actual treatment works, intercepting
ble under § 501 of the Small Business
OTHER BLOCK GRANT ADMINISTRATIVE
sewers, outfall sewers, pumping sta-
Investment Act of 1958, as amended,
COSTS
tions and other equipment. Block
among the entities defined as local de-
As a result of comments, several re-
grant funds may be used to construct
velopment corporations for the pur-
poses of the block grant program.
visions have been made to the general
sewage collection lines, but not facili-
program activities, which, for the
ties for sewage treatment. Interceptor
Paragraph (c)(4) has been changed to
exclude assistance for general munici-
block grant program, are considered to
sewers are considered a part of the
be administrative costs.
sewage treatment system and are ex-
pal buildings ineligible under
Paragraph (f) of 570.206 permits
cluded from eligibility.
& 570.207(a)(1) and political activities
ineligible under 570.207(e) from
the use of block grant funds to pre-
PURCHASE OF EQUIPMENT
those activities which may be carried
pare applications for other Federal
out under the special authority of this
programs when the activities to be car-
Paragraph (b) of § 570.207 sets forth
paragraph.
ried out are necessary and appropriate
the policies relating to the ineligibility
Paragraph (b) has been revised to
to implement the applicant's commu-
of purchasing equipment with block
clarify that entities eligible to carry
nity development strategy. There are
grant funds. The general rule is that
out activities with block grant assis-
special rules governing the reimburse-
block grant funds cannot be used to
tance under $ 570.204 may use block
ment of cost for small cities set forth
purchase equipment and items of per-
grant funds to acquire title to facili-
in Subpart F. Applicants may use
sonalty. There are several exceptions.
ties. These facilities must be open to
block grant funds, other than UDAG
Block grant funds may be used to pur-
the general public during those hours
funds, for the preparation of applica-
chase construction equipment which is
of normal operation, and excessive
tions for the UDAG program.
as part of a solid waste disposal system
fees for the use of the facility which
Paragraph (c) has been revised to
described in § 570.201(c)(5). Funds may
would exclude low- and moderate-
refer to housing counseling and other
also be used by applicants and sub-
income persons shall not be charged.
activities undertaken by applicants to
grantees to purchase furnishings and
affirmatively further fair housing and
personal property used to administer a
PLANNING ACTIVITIES
provide a greater choice of housing op-
block grant program or a part of a
portunities laws. Other forms of hous-
As a result of several comments,
public service pursuant to § 570.201(e).
ing couseling are eligible for block
paragraph (a)(4) of § 570.205 has been
Paragraph (b)(2) also authorizes the
changed to indicate that planning ac-
grant funding where the requirements
use of block grant funds to purchase
of § 570.201(e) are met.
tivities may include surveys of historic
certain motor vehicles used in pro-
Paragraph (d) has been revised to in-
properties, and surveys and plans for
gram administration or as a part of a
clude both performance and payment
public service.
removal of architectural barriers to
the handicapped and elderly.
bonding for contractors carrying out
Paragraph (c) has been modified to
block grant activities. The paragraph
MAINTENANCE AND REPAIR
makes clear that this may be accom-
permit § 701 type comprehensive plan-
Maintenance and repair activities re-
plished by using block grant funds to
ning activities to be carried out by all
lated to the general upkeep of public
pay bonding premiums as well as other
applicants and not be restricted to
facilities and improvements are the re-
arrangements appropriate to this ac-
metropolitan cities and urban counties
tivity.
sponsibillity of units of general local
as originally proposed. Further, activi-
Paragraph (h) makes clear that his-
government. Block grant funds may
ties under this paragraph must be de-
not be used for general maintenance
toric preservation clearances that are
and repairs, except for the special pro-
FEDERAL REGISTER, VOL 43, NO. 41-WEDNESDAY, MARCH 1, 1978
RULES AND REGULATIONS
8439
visions for interim assistance under
5. Excluding the construction of
570.205 Eligible planning and urban design
570.201(f).
swimming pools as recreational facill-
costs.
Paragraph (c) of § 570.207 has been
ties;
570.206 Eligible administrative costs.
revised to provide several examples of
6. Excluding the construction of bike
570.207 Ineligible activities.
the types of maintenance and repair
paths, pedestrian mails, and other
AUTHORITY: Title I, Housing and Commu-
items that are excluded. In some cases,
public works authorized by the stat-
nity Development Act of 1974 (42 U.S.C.
a fine line must be drawn between
ute; and
5301, et seq.): Title I. Housing and Commu-
maintenance and repair, and rehabili-
7. Permitting the use of block grant
nity Development Act of 1977 (Pub. L. 95-
tation of facilities and improvements
to administer activities other than sec-
128): and sec. 7(d), Department of Housing
which are eligible for assistance. Ac-
tion 312 rehabilitation loans and sec-
and Urban Development Act (42 U.S.C.
3535(d)).
cordingly, several examples are cited;
tion 810 Urban Homesteading, which
filling potholes in a street, which is
are not funded by the block grant pro-
II. Subpart C, Eligible Activities is
repair, is ineligible, whereas resurfac-
gram:
revised to read as follows:
ing a street is considered for the pur-
A number of comments addressed
poses of the block grant program to be
departmental relocation policies.
Subpart C-Eligible Activities
eligible as reconstruction or rehabilita-
These comments were generally rel-
§ 570.200 General policies.
tion. Similarly, mowing grass in re-
evant to other subparts of the regula-
creation areas is maintenance and is
tions and de not relate to the provi-
(a) Determinations of eligibility.
ineligible, but using block grant funds
sions of this subpart on the basic eligi-
This subpart sets forth the variety of
to add new equipment in a recreation
bility of payments and assistance.
eligible activities that may be under-
area would be & permitted activity.
Several comments suggested that
taken with assistance under this Part
school districts, local housing authori-
(block grant funds) to meet communi-
INDUSTRIAL PARKS
ties, and other public bodies be added
ty development and housing needs and
Paragraph (1) of § 570.207 of the pro-
to the list of entities under § 570.204.
priorities principally for low- and mod-
posed regulations has been deleted as
This could not be accommodated be-
erate-income persons or for the pre-
vention or elimination of slums and
a result of comments. Although HUD
cause the statutory authority is limit-
ed to private entities.
blight. The listing of certain eligible
is deleting this paragraph because the
Several comments were concerned
types of activities in this subpart does
test of firm commitments seems overly
about the coordination of block grant
not by itself, however, render specific
burdensome, applicants. nonetheless
activities, proposed to be conducted by
should exercise judgement in using
funded economic development activi-
individual applicants, eligible for block
block grant funds for activities to de-
ties with the programs of other Feder-
grant assistance. There are other re-
velop an industrial park where firm
al agencies. HUD certainly encourages
quirements that must also be met to
commitments are not available. While
applicants to coordinate their activi-
qualify a specific activity for assis-
HUD does not wish to deter those un-
ties in such a manner as to best utilize
tance. An activity may be assisted only
dertakings with the potential for suc-
all available resources, but does not
in those instances where it complies
cess, HUD will use the monitoring pro-
feel that the imposition of certain spe-
with the eligibility criteria of this sub-
cess to watch for situations where ac-
cific requirements of other programs
part, with all other applicable require-
tivities are undertaken without com-
would be of benefit to either the block
ments of this Part as they may apply
mitments from potential users and are
grant program, or other programs.
to applicants under Subparts D, E, F,
not attracted within a reasonable
period of time.
OTHER INFORMATION: A Finding
or G, such as those relating to equal
of Inapplicability with regard to Envi-
opportunity, and the basic statutory
COMMENTS NOT ACTED UPON
ronmental Impact has been prepared
objectives of the block grant program.
in accordance with HUD Handbook
In particular, activities conducted by
The description of the changes to
1390.1, and a Finding of Inapplicabil-
entitlement recipients under Subpart
Subpart C discussed a number of com-
ity with regard to economic and infla-
D must comply with the requirements
ments which HUD was unable to act
tionary impact has been prepared in
set forth in § 570.302 regarding benefit.
upon. In many cases, comments pro-
accordance with Executive Order
to low- and moderate-income persons
posed the inclusion or modification of
11821 for Subpart C. Copies of the
or elimination of slums and blight, and
activities not authorized by the statute
Findings are available for inspection
small city discretionary recipients
or the exclusion of activities which
and copying during business hours in
must comply with similar require-
were specifically authorized. Other
the Office of the Rules Docket Clerk,
ments set forth in Subpart F. Further,
comments proposed alternative direc-
Room 5216, Department of Housing
there must be compliance with all ap-
tions on matters of Departmental
and Urban Development, 451 Seventh
plicable environmental review and
policy which after due consideration,
clearance procedures set forth in 24
Street SW., Washington, D.C. 20410.
were not accepted.
CFR Part 58.
Accordingly, 24 CFR Part 570 is
The following are some of the com-
(b) Urban Development action
ments already discussed which HUD
amended by revising the Table of Con-
tents for Subpart C and by revising
grants. Grant assistance may be pro-
did not agree to act upon for the rea-
vided with Urban Development Action
sons set forth above:
Subpart C as set forth below.
Grants pursuant to Subpart G for:
I. The Table of Contents to 24 CFR
1. Permiting the use of block grant
(1) Activities eligible for assistance
funds to construct new housing for the
Part 570, Subpart C, is revised to read
pursuant to this Subpart; and
as follows:
handicapped;
(2) Such other activities, including
2. Requiring the concurrence of at
new housing construction, as the Sec-
least 60 percent of the residents of an
Subport C-Eligible Activities
retary may determine to be consistent
area before initiating the acquisition
Sec.
with the statutory objectives of the
of land;
570.200 General policies.
Urban Development Action Grant
3. Deleting or imposing additional
570.201 Basic eligible activities.
(UDAG) program as provided for in
requirements on the use of block
570.202 Eligible rehabilitation and preser-
570.453. The provisions of § 570.207
grants for purchase of existing hous-
vation activities.
regarding ineligible activities apply to
ing outside of an applicant's bound-
570.203 Eligible economic development a.c-
the UDAG program, except where an
tivities.
aries;
570.204 Eligible activities by private non-
activity is determined to be consistent
4. Requiring mandatory set asides of
profit entitles, neighborhood-based non-
with the statutory objectives of the
a certain percentage of block grant
profit organizations, local development
UDAG program pursuant to § 570.453,
funds for a variety of individual activi-
corporations, and Small Business Invest-
the limitations set forth in $ 570.207
ties, such as public services;
ment Companies.
do not apply.
FEDERAL REGISTER, VOL 43, NO. 41-WEDNESDAY, MARCH 1, 1978
8440
RULES AND REGULATIONS
In making determinations of eligibility
where, although It is to be located on a
with regard to Urban Development
properties owned and occupied by low-
site controlled by a school district,
Action Grants. for the purposes of
and moderate-income persons. Block
school board or similar body responsi-
570.201-207, the term "Community
grant funds recovered through special
ble for public education, the facility
Development Program" as used in this
assessments authorized by HUD will
will only be used by any adjacent
subpart shall also mean the "Urban
be considered program income pursu-
school or educational facility on an In-
ant to § 570.506.
Development Action Program."
cidental basis. In order to determine
(c) Model cities activities. Notwith-
(3) Special assessments paid with
whether the facility is to be used on
standing anything to the contrary in
block grant funds. Block grant funds
an incidental basis, the applicant shall
this subpart, any ongoing model cities
may be used to pay special assess.
at a minimum demonstrate that:
activity being carried out in a model
ments levied against properties owned
(1) After school hours and on week-
and occupied by low- and moderate-
cities program shall be eligible for
ends, the facility shall be available for
funding under this Part from that por-
income persons for the capital costs of
use by the general public to the same
tion of the hold-harmless amount at-
eligible public facilities and Improve-
extent as similar facilities operating
ments financed from local revenue
tributable to such model cities pro-
within the applicant's Jurisdiction; and
gram until the applicant has received
sources, other than block grant funds,
(11) During school hours, the facility
five years of funding for such activi-
which (1) are described in the Commu-
is not used for school purposes for
ties as calculated pursuant to
nity Development Program; (ii) are
more than four hours each day.
initiated after the effective date of
§ 570.103(c)(2)(iii). For the purpose of
(e) Activities outside an applicant's
this paragraph, the term "ongoing ac,
this provision; and (iii) represent the
boundaries. Applicants may conduct
tivity" means any model cities activity
pro rata share of the capital cost of
activities which are otherwise eligible
underway as of January 1, 1975, that
the eligible facility or improvement to
for block grant assistance outside of
was approved and funded by HUD on
the benefitting property.
their boundaries which are not incon-
or before June 30, 1974. Upon expira-
(g) Consultant Activities. Applicants
sistent with State or local law and
tion of the eligibility of activities
may employ consultants to provide
which are not plainly inappropriate to
under this paragraph, applicants
professional assistance in program
meet identified needs of the applicant.
should refer to the other requirements
planning, application preparation, and
This may include an urban county car-
of this subpart which must be satisfied
other general professional guidance
rying out otherwise eligible activities
relating to program execution. The
in order for block grant assistance to
within a metropolitan-city with block
continue to be provided for model
use of consultants is governed by the
grant assistance where the activities
following:
cities activities.
are not plainly inappropriate to meet-
(d) Special policies governing facili-
(1) Program requirements, including
ing identified needs of the urban
the requirements of this Part, Federal
ties. The following special policies
county.
apply to: (1) Facilities containing both
Management Circular 74-4, OMB Cir-
(f) Special assessments under the
eligible and ineligible uses. Where a
cular A-102, and applicable Federal,
block grant program. The following
facility, otherwise eligible for assis-
State, and local laws;
policies relate to the use of special as-
tance under the block grant program
(2) Written agreements shall be ex-
sessment under the block grant pro-
is to be provided as a part of a multi.
ecuted between the parties which
gram:
ple-use building and/or facility that
detail the responsibilities, standards;
(1) Definition of special assessment.
and fees;
also contains otherwise Ineligible uses,
The term "special assessment" means
the portion of the costs attributed to
(3) Compensation for consultants.
a fee or-charge levied or filed as a lien
the eligible facility may be assisted
No person employed as a consultant,
against a parcel of real estate as a
with block grant funds where;
or by a firm providing consultant ser-
direct result of benefit derived from
(1) The facility, which is otherwise
vices, shall receive more than a reason-
the installation of a public improve-
eligible and proposed for assistance,
able rate of compensation for personal
ment, such as streets, curbs, and gut-
will occupy a designated and discrete
services paid with block grant funds
ters. The amount of the fee represents
area within the larger facility; and
which, on a daily basis, shall not
the pro rata share of the capital costs
(ii) The applicant can determine the
exceed the maximum daily rate of
of the public improvement levied
costs attributable to the facility pro-
compensation for a GS-18 as estab-
posed for assistance as separate and
against the benefitting properties.
lished by Federal law; and
distinct from the overall costs of the
This term does not relate to taxes, or
(4) Adjustments of rates of compen-
the establishment of the value of real
multiple-use building and/or facility.
sation and payments under consultant
estate for the purpose of levying real
contracts may be made where audit
For example, a senior center, which is
estate, property, or ad valorem taxes.
and monitoring reviews indicate that
to occupy space within a building that
(2) Special assessments to recover
the rates of compensation were not
is otherwise used for the conduct of
block grant funds. The general rule is
reasonable, or exceeded the maximum
general governmental business, may
that special assessments shall not be
daily rate for a GS-18.
be assisted when it exclusively occu-
used to recover any of the capital costs
(h) Transition policy for fiscal year
pies a separate and designated area
of a public improvement provided with
1978. A number of activities set forth
within the building (i.e, the senior
block grant funds. Where both block
in Subpart C contain, as a part of the
center does not "float" to different lo-
grant and local funds are used to pro-
criteria for eligibility for block grant
cations within the building that
vide public Improvements, any special
assistance, requirements that activities
happen to be available on a less than
assessment shall be prorated In pro-
be necessary and appropriate to the
permanent basis) and the applicant
portion to the investment of each. Ap.
implementation of certain strategies
can determine the cost associated with
plicants may request an exception to
for community development and hous-
providing the senior center as distinct
this rule where the use of special as-
ing described in Subpart D, or that ac-
from those costs associated with all re-
sessments as a means to leverage pri-
tivities take place within Neighbor-
maining ineligible portions of the
vate investment Is necessary and ap-
hood Strategy Areas (NSA).
building.
propriate to Implement the applicant's
(1) Interim strategy statement. For
(2) Facilities located on school prop-
strategy for economic development or
those applications submitted during
erty. Any facility eligible for assistance
neighborhood revitalization. Excep-
fiscal year 1978 prior to the effective
pursuant to $ 570.201(c), which is de-
tions will not be granted by HUD for
date for the submission of strategies,
signed primarily for a public purpose
any special assessment which will re-
applicants may submit a brief narra-
other than education is not considered
cover costs of public Improvements
tive Interim strategy statement for ac-
to be a school or educational facility
provided with block grant funds from
tivities subject to this requirement.
FEDERAL REGISTER, VOL. 43, NO. 41-WEDNESDAY, MARCH 1, 1978
RULES AND REGULATIONS
8441
The interim strategy statement shall
grant funds to purchase houses in a
government (but not the entire juris-
include:
non-impacted suburban jurisdiction in
diction) designated in comprehensive
(1) a brief description of the activity;
order to provide a wider choice of
plans, ordinances or other local docu-
(ii) a brief description of the needs
housing opportunities for central city
ments as a neighborhood or, in a new
and conditions the activity is designed
lower-income residents.
community as defined in $ 570.403(a),
to address; and
(b) Disposition. Disposition, through
a neighborhood, village or similar geo-
(iii) a brief description of how the
sale, lease, donation, or otherwise, of
graphical designation: or
activity will impact upon the needs
any real property acquired with block
(ii) An entire unit of general local
and conditions which it is designed to
grant funds or its retention for public
government or a new community as
address.
purposes, provided that the proceeds
defined in 570.403(a) which is under
(2) Interim NSA designation. For
from any such disposition shall be pro-
25,000 population, with the exception
those applications submitted during
gram Income subject to the require-
of a facility which is designed solely as
fiscal year 1978, applicants may desig-
ments set forth in 570.506. Further
a communitywide facility in a new
nate interim NSA's for activities sub-
information regarding disposition is
community with a currently projected
ject to this requirement. An interim
set forth In & 570.613.
population in excess of 25,000.
NSA is selected by the applicant and
(c) Public facilities and Improve-
(5) Solid waste disposal facilities,
designated in the Community Devel-
ments. Acquisition, construction, re-
which are defined as those physical
opment Program. In determining the
construction, rehabilitation, or instal-
parts of solid waste management sys-
size of the NSA, the applicant shall
lation of certain publicly owned facili-
tems commencing at and including the
take into account the severity of its
ties and improvements. This may in-
site or sites at which publicly or pri-
problems and the amount of resources
clude the execution of architectural
vately owned collection vehicles dis-
to be provided to address those prob-
design features, and similar treat-
charge municipal solid wastes,
lems. For each area designated as an
ments intended to enhance the esthet-
through the point of ultimate disposal
NSA, the applicant shall include a
ic quality of facilities and improve-
including necessary site improvements
brief narrative description of its plan
ments receiving block grant assistance,
and conveying systems, including ap-
for stabilizing and upgrading the area
such as decorative pavements, railings,
propriate fixed and movable equip-
which:
sculpture, pools of water and foun-
ment including vehicular containers
(1) provides for a combination of
tains, and other works of art. Public
used after the first stage of disposal at
physical improvements, necessary
facilities and improvements eligible
transfer stations, but not including
public facilities and services, private
for assistance under this paragraph in-
the final collections. (1) Such facilities
investment and citizen self-help activi-
clude:
or equipment must be located in or
ties appropriate to the needs of the
(1) Senior centers, but excluding any
serve areas where other activities in-
area; and
facility whose primary function is to
cluded in the Community Develop-
(ii) coordinates public and private in-
provide residential accommodations or
ment Program are being carried out,
vestment efforts.
care on a 24-hour day basis (such as a
such as a NSA. (ii) Equipment and ap.
group home).
purtenances used in the initial collec-
$ 570.201 Basic eligible activities.
tion of solid waste are not included
(2) Parks, playgrounds and other rec-
reational facilities which are designed
among those solid waste disposal fa-
Grant assistance may be used for
cilities eligible for assistance under
the following activities:
for participation, but not spectator fa-
this Part.
(a) Acquisition. Acquistion in whole
cilities such as stadiums.
(6) Fire protection facilities and
or in part by a public agency, by pur-
(3) Centers for the handicapped. The
equipment. Such facilities and equip-
chase, lease, donation or otherwise, of
term "center for the handicapped"
ment must be located in or serve areas
real property (Including air rights,
means any single or multipurpose fa-
where other activities included in the
water rights, rights-of-way, easements,
cility which seeks to assist persons
Community Development Program are
and other interests therein) which is:
with physical, mental, developmental
being carried out, such as a NSA.
(1) Blighted, deteriorated, deterio-
and/or emotional impairments to
(i) Fire protection facilities are de-
rating, undeveloped or inappropriately
become more functional members of
fined as the land and necessary im-
developed from the standpoint of
the community by providing programs
provements thereto which are neces-
sound community development and
or services which may include, but are
sary for properly housing and storing
growth, as determined by the recipient
not limited to, recreation, education,
fire protection equipment and person-
pursuant to State and local laws;
health care, social development, inde-
nel by a fire protection organization,
(2) Appropriate for rehabilitation or
pendent living, physical rehabilitation
but not including fire fighting schools
conservation activities;
and vocational rehabilitation; but ex-
and their appurtenances.
(3) Appropriate for the preservation
cluding any facility whose primary
(ii) Fire protection equipment is de-
or restoration of historic sites, the
function is to provide residential care
fined as the appropriate equipment
beautification of urban land, the con-
on a 24-hour a day basis (such as a
and apparatus which a fire protection
servation of open spaces, natural re-
group home or halfway house). For
organization requires for carrying out
sources and scenic areas, the provision
example, a sheltered workshop would
a program for protecting property and
of recreational opportunities or the
be a single purpose center for the
maintaining the safety and welfare of
guidance of urban development;
handicapped, and a facility providing
the public, including emergency medi-
(4) To be used for the provision of
several services for the handicapped
cal aid, from the dangers of fire.
public works, facilities and improve-
would be a multipurpose center for
(7) Parking facilities. Such facilities
ments eligible for assistance under
the handicapped, both of which are
must be located in or serve areas
this subpart; or
eligible for assistance.
where other activities included in the
(5) To be used for other public pur-
(4) Neighborhood facilities. Such fa-
Community Development Program are
poses, including the conversion of land
cilities may be of either a single pur-
being carried out, such as a NSA.
to other uses where necessary or ap-
pose or multipurpose nature and be
(8) Public utilities, other than water
propriate to the community develop-
designed to provide health, social, rec-
and sewer, which include:
ment program. Examples include an
reational or similiar community ser-
(1) Facilities necessary for distribu-
applicant purchasing land to be used
vices primarily for residents of the
tion of the utility (but not production
for the development of housing for
neighborhood service area which is
or generation, such as electrical gen-
low- and moderate-income persons,
either:
eration plants);
and an applicant which is a central
(1) A geographic location within the
(ii) Buildings and improvements that
city of a metropolitan area using block
jurisdiction of a unit of general local
are an integral part of the utility and
FEDERAL REGISTER, VOL. 43, NO. 41-WEDNESDAY, MARCH 1, 1978
8442
RULES AND REGULATIONS
are of such a nature that the utility
units may be undertaken only with
will not function without them: and
have been applied for and denied or
the prior approval of HUD.
I
(iii) The placing underground of ex-
not made available pursuant to the
(e) Public services. Provision of
isting or new distribution facilities.
provisions of 570.607.
public services (including labor, sup-
Further information regarding the ell-
(5) Public services must be deter-
plies and materials) which are directed
gibility of assistance to privately
mined by the applicant to be necessary
toward improving the community's
owned utilities is set forth in
or appropriate to support the physical
public services and facilities, including
570.201(1).
development activities to be carried
those concerned with employment,
(9) Street improvements. Streets,
out within Neighborhood Strategy
crime prevention, child care, health.
street lights, traffic signals, signs,
Areas. For example, the provision of
drug abuse, education. welfare or rec-
street furniture, trees, bridges, cul-
job training for area residerits working
reational needs, and which are direct-
verts causeways, curbs, gutters,
on neighborhood revitalization pro-
ed toward coordinating public and pri-
sidewalks, and other normal appurte-
jects would be appropriate to support
vate development programs. Such ser-
nances to streets and structures facill-
a concentration of block grant assisted
vices may be provided by State or local
tating the passage on. or usage of.
physical development activities being
governments, quasi-public, private or
streets. but excluding expressways and
carried out in the area. (1) The specific
nenprofit agencies, including, but not
other limited access ways and their ap-
determination of support for each pro-
limited to, HUD-approved counseling
purtenances.
posed public service is not required to
agencies, selected by the applicant for
(10) Water and sewer facilities, in-
be included in the application, but the
funds provided under this Part. In
cluding storm sewers, except for
applicant must briefly describe the re-
order to be eligible for block grant as-
lationship of the public service to the
sewage treatment works and intercep-
sistance. public services must meet
tor sewers which are described as in
physical development activities. (ii)
each of the following criteria:
HUD will accept the applicant's deter-
570.206(a)(6). The term "storm
(1) Public services are to be provided
mination that a public service is neces-
sewers" means sewers or other con-
for residents of neighborhood strategy
sary and appropriate to support the
duits, open or closed, or their appurte-
areas in which block grant assisted
physical development activities unless
nances which collect, transport and
physical development activities are
there is substantial evidence to the
dispose of storm waters, surface water,
being carried out in a concentrated
contrary, in which case additional in-
street wash, other wash and ground
manner. Such public services may be
formation or assurances may be re-
water or drainage into an existing
supported with block grant funds
quested from the applicant prior to a
water course, but excluding domestic
during the period which block grant
determination of eligibility.
waste water and commercial and In-
assisted physical development activi-
(f) Interim assistance. Interim assis-
dustrial wastes.
ties are being carried out in a concen-
tance to alleviate harmful conditions
(11) Foundations and platforms for
trated manner, and may be continued
where immediate public action is de.
air rights sites.
for no more than three years after the
termined by the applicant to be neces-
(12) Pedestrian malls and walkways.
completion of such physical develop-
sary.
(13) Flood and drainage facilities, in
ment activities. For the purpose of
(1) The following activities may be
cases where assistance for such facill-
this paragraph:
undertaken as a prelude to more com-
ties has been determined to be un-
(1) Physical development activities
prehensive treatment In areas where
available under other Federal laws or
Include only those described in
activities included in the Community
programs pursuant to the provisions
§ 570.201 (a) through (d), (f) through
Development Program are to be car-
of 570.607. The term "flood and
(h), and (k), and 570.202 through
ried out, such as an NSA, in order to
drainage facilities" means those un-
§ 570.203.
hold the area from further deteriora-
dertakings designed to influence or
(11) The phrase "concentrated
tion during the interim period:
affect the flow in a natural water
manner" shall mean that the block
(1) The repairing of streets,
course (such as a river, stream, lake,
grant assisted physical development
sidewalks, parks, playgrounds, publicly
estuary, bay, ocean or intermittent
activities are being carried out within
owned utilities and public buildings;
stream) and excludes storm sewers.
an area in a coordinated manner to
(ii) The improvement of private
(14) Other public facilities and im-
serve a common objective or purpose
properties to the extent necessary to
provements, not listed in this para-
pursuant to a locally developed plan or
eliminate immediate dangers to public
graph. except those described in
strategy.
health, safety or welfare;
570.207 (a)(I) and (f), which are nec-
(2) Such services must be directed
(iii) The establishment of temporary
essary and appropriate to the imple-
toward meeting the needs of residents
public playgrounds on vacant land;
mentation of the applicant's strategy
and
of such areas. Block grant assistance
for neighborhood revitalization or
may incidentally be provided for such
(iv) The execution of special gar-
housing.
services only for those who are not
bage, trash, and debris removal, in-
(i) The applicant shall provide HUD
residents of areas of concentrated
cluding neighborhood clean up cam-
with a description of the proposed fa-
physical development.
paigns, but not the regular curbside
cility or improvement and the rela-
(3) A public service must be either (i)
collection of garbage or trash in an
tionship to applicant's strategy for
area,
a new service, or (II) a quantifiable in-
neighborhood revitalization or hous-
crease in the level of a service above
(2) The following activities may be
ing.
that which has been provided by or in
undertaken to the extent necessary to
(ii) Among the factors HUD will take
behalf of the applicant from local rev-
alleviate emergency conditions threat-
into account in authorizing assistance
enue sources or State funds received
ening the public health and safety in
under this paragraph are the amount
by the applicant in the twelve calen-
areas where the chief executive officer
of benefit to low- and moderate-
dar months prior to submission of the
of the applicant determines that an
income persons, the degree of impact
block grant application. (An exception
imminent threat to the public health
on the identified needs of the appli-
and safety exists requiring immediate
to this requirement with regard to
cant, and the availability of other Fed-
resolution of emergency conditions:
State-funded services may be made if
eral funds for the activity.
HUD determines that the decrease in
(1) the improvement of private prop-
erties;
(d) Clearance activities. Clearance,
the level of a service was the result of
demolition and removal of buildings
(ii) the repair of streets, sidewalks,
events not within the control of the
and improvements, including move-
utilities, and other public facilities and
applicant.)
ment of structures to other sites. De-
improvements; and
(4) Federal assistance in providing or
molition of HUD assisted housing
(iii) the removal of trash and debris,
securing such public services must
unsafe structures, clearance of streets
FEDERAL REGISTER, VOL 43, NO. 41-WEDNESDAY, MARCH 1, 1978
RULES AND REGULATIONS
8443
including snow removal. and other
(III) The availability of other Federal
may be used directly to finance reha-
similar activities.
funds for the activity.
bilitation, including settlement costs,
The chief executive officer. or his
through the direct use of block grant
designee, shall notify the appropriate
§ 570.202 Eligible rehabilitation and pres-
funds in the provision of assistance,
HUD Area Office within seven days of
ervation activities.
such as grants, loans, loan guarantees
determining that a situation exists
Grant assistance may be used for
and interest supplements, for:
which poses an imminent threat to the
the following activities for the reha-
(i) Costs of rehabilitation of proper-
public health and safety and that
bilitation of buildings and Improve-
ties, including. repair directed toward
block grant funds will be used to alle-
ments:
cure of an accumulation of Items of
viate the emergency conditions.
(a) Rehabilitation of public residen-
deferred maintenance, replacement of
(g) Payment of the non-Federal share
tial structures. Rehabilitation of pub-
principal fixtures and components of
required in connection with a Federal
licly owned or acquired properties for
existing structures, and renovation
grant-in-aid program undertaken as
use or resale In the provision of hous-
through alteration, additions to, or en-
part of the block grant activities, Pro-
Ing. Including:
hancement of existing structures,
vided, That such payment shall be
(1) Permanent housing units, both
which may be undertaken singly, or in
limited to activities otherwise eligible
single family and multifamily, for
combination;
under this subpart.
rental or sale; and
(ii) Refinancing existing indebted-
(h) Urban renewal completion. Pay-
(2) Residential facilities, including
ness secured by a property being reha-
ment of the cost of completing an
group homes, halfway houses, and
bilitated if such refinancing is neces-
urban renewal project funded under
emergency shelters. For example, a
sary or appropriate to the execution of
Title I of the Housing Act of 1949 as
group home for the handicapped or a
a Community Development Program;
amended. Further information regard-
temporary shelter for battered women
(iii) Measures to increase the effi-
ing the eligibility of such costs is set
may be provided through acquisition
cient use of energy in structures
forth in § 570.801.
and rehabilitation of properties for
through such means as installation of
(1) Relocation. Relocation payments
those purposes.
storm windows and doors, siding. wall
and assistance for individuals, families,
(b) Public housing modernization.
and attic insulation, and conversion,
businesses, nonprofit organizations,
Modernization and modernization
modification or replacement of heat-
and farm operations displaced by ac-
planning of publicly-owned low-income
ing and cooling equipment, including
tivities assisted under this Part. Fur-
housing (excluding, the new construc-
the use of solar energy equipment;
ther information regarding the eligi-
tion of office facilities for such public
(lv) Financing of costs associated
bility of relocation costs is set forth in
housing).
with the connection of residential
§ 570.602.
(j) Loss of rental income. Payments
(N.B. block grant funds may also be pro-
structures to water distribution lines
to housing owners for losses of rental
vided by an applicant to a public housing
or local sewer collection lines; or
agency to be used for otherwise eligible ac-
(v) Costs of initial homeowner war-
income incurred in holding for tempo-
tivities, e.g., public services such as security
ranty premiums for rehabilitation car-
rary periods housing units to be uti-
and day care meeting the requirements of
ried out with block grant assistance.
lized for the relocation of individuals
570.201(e) and planning and policy-plan-
(3) Materials. Block grant funds may
and families displaced by program ac-
ning-management activities under 570.205
be used to provide materials, including
tivities assisted under this Part.
related to public housing Improvements.)
tools, for use in the rehabilitation of
(k) Removal of architectural bar-
(c) Rehabilitation of private proper-
properties either by the property
riers. Special projects directed to the
ties. Block grant assistance may be
owner or tenant, or where arrange-
removal of material and architectural
used for the rehabilitation of privately
ments have been made for the provi-
barriers which restrict the mobility
owned properties. Assistance may con-
sion of labor, such as through a CETA
and accessibility of elderly or handi-
sist of:
grant.
capped persons to publicly owned and
(1) Acquisition for the purpose of re-
(d) Temporary relocation assistance.
privately owned buildings, facilities,
habilitation. Block grant funds may
Block grant funds may be used for
and improvements. Further informa-
be used to assist private entities, in-
temporary relocation payments and
tion regarding the removal of architec-
cluding those organized for profit and
assistance to individuals, families,
tural barriers is available in publica-
on a not-for-profit basis to acquire, for
businesses, non-profit organizations,
tion ANSI A117.1-1961 (R. 1971) of the
the purpose of rehabilitation, and re-
and farm operations displaced tempo-
American National Standards Insti-
habilitate properties for use or resale
rarily by rehabilitation activities as-
tute, Inc.
in the provision of housing which,
sisted under this part. Further infor-
(1) Privately owned utilities. Acquisi-
upon completion of rehabilitation, at a
mation regarding the eligibility of re-
tion, construction, reconstruction, re-
minimum will meet the Section 8 Ex-
location costs is set forth in $ 570.602.
habilitiation, or installation of distri-
isting Housing Quality Standards set
(e) Code enforcement. Code enforce-
bution facilities and lines of privately
forth in 24 CFR § 882.109, including:
ment in areas where activities included
owned utilities where necessary and
(i) Permanent housing units, both
in the Community Development Pro-
appropriate to implement the appli-
single family and multifamily, for
gram are being carried out, such as an
cant's strategy for neighborhood revi-
rental or sale; and
NSA, which is deteriorating or deterio-
talization or housing. Activities may
(ii) Residential facilities, including
rated in which such enforcement to-
include the placing underground of
group homes, halfway houses, and
gether with public improvements, re-
new or existing distribution facilities.
emergency shelters;
habilitation assistance, and services to
(1) The applicant shall provide HUD
(2) Rehabilitation financing. Block
be provided, may be expected to arrest
with a description of the proposed ac-
grant funds may be used to finance
the decline of the area.
tivity and the relationship to the ap-
the rehabilitation of privately owned
(f) Historic preservation. Rehabilita-
plicant's strategy for neighborhood re-
residential, non-residential (excluding
tion, preservation, restoration and ac-
vitalization or housing.
industrial properties), and mixed use
quisition of historic properties, either
(2) Among the factors HUD will take
properties either within areas where
publicly or privately owned, which are
into account in authorizing such ac-
activities included in the Community
those sites or structures that are
tivities are:
Development Program are being car-
either listed in cr eligible to be listed
(i) The degree of benefit to low- and
ried out, such as a NSA, or on a spot
in the National Register of Historic
moderate-income persons;
basis throughout the jurisdiction of
Places, listed in a State or local Inven-
(ii) The degree of impact on the in-
the applicant for low- and moderate-
tory of Historic Places, or designated
dentified needs of the applicant; and
income persons. Block grant funds
as a State or local land mark or histor-
FEDERAL REGISTER, VOL. 43, NO. 41-WEDNESDAY, MARCH 1, 1978
8444
RULES AND REGULATIONS
ic district by appropriate law or ordi-
(c) Commercial and industrial facili-
nance.
organized pursuant to section 301(d)
ties. Acquisition, construction, recon-
of the Small Business Investment Act
Publicly owned historic properties
struction, rehabilitation or installation
of:
of 1958 (15 U.S.C. 681(d)), including
may be assisted, including those prop-
those which are profit making; and
erties which are otherwise ineligible
(1) Commercial or Industrial build-
(iv) A local development corporation
for assistance under this subpart.
ings and structures, including:
which is an entity organized pursuant
However, eligibility is limited only to
(1) Purchase of equipment and flx-
to Title VII of the Headstart, Econom-
those costs necessary for rehabilita-
tures which are part of the real estate,
ic Opportunity. and Community Part-
tion. preservation or restoration of the
but not personal property: and
nership Act of 1974 (42 U.S.C. 2981);
property and not for conversion or ex-
(II) Energy conservation improve-
an entity eligible for assistance under
pansion of the property for any inell-
ments designed to encourage the effi-
section 502 of the Small Business In-
gible use. For example, a city museum
cient use of energy resources (includ-
vestment Act of 1958 (15 U.S.C. 696), a
serving low- and moderate-income per-
ing renewable energy resources or al-
State development entity eligible for
sons, and listed in the National Regis-
ternative energy resources);
assistance under section 501 of the
ter may be restored, but the addition
(2) Commercial or industrial real
Small Business Investment Act of 1958
of a new wing on the museum could
property improvements (including rail-
(15 U.S.C. 695), or other similar entity
not normally be assisted, unless it
road spurs or similar extensions).
incorporated pursuant to Federal,
were otherwise eligible for assistance
State, or local law.
pursuant to § 570.203(b).
$ 570.204 Eligible activities by private
(b) Activities eligible under
nonprofit entities, neighborhood-based
570.201-570.203, and 8 570.205 and
§ 570.203 Eligible economic development
*
nonprofit organizations, local develop-
§ 570.206. Grant assistance may be pro-
activities.
ment corporations, or small business
vided by an applicant to be utilized by
Grant assistance may be provided
Investment companies.
private nonprofit entities, neighbor-
for the following development activi-
(a) General Grant assistance may be
hood-based nonprofit organizations,
ties which are not otherwise eligible
used by applicants to provide block
SBIC's, or local development corpora-
for block grant assistance, which are
grant funds for activities designed to
tions for activities otherwise eligible
directed toward the alleviation of
implement the applicant's strategies
for block grant assistance pursuant to
physical and economic distress, or the
for economic development and neigh-
570.201-570.203, § 570.205, and
economic development of a new com-
borhood revitalization set forth in this
570.206. Where such entities use
munity as described in § 570.403(a)
section to be carried out by a private
block grant funds to acquire title to fa-
through stimulation of private invest-
nonproft entity, a neighborhood-based
cilities, including those described in
ment community revitalization, and
nonprofit organization, local develop-
570.201(c) or 570.203(b), they shall
expansion of economic opportunities
ment corporation, or Small Business
be operated so as to be open for use by
for low- and moderate-income persons,
Investment Company (SBIC). (1) Ap-
the general public during all normal
and handicapped persons, and which
plicant Responsibilities. Applicants
hours of operation. Reasonable fees
are necessary and appropriate to Im-
are nonetheless responsible for ensur-
may be charged for the use of facili-
plement the applicant's strategy for
ing that block grant funds are utilized
ties acquired by such entities, but
economic development.
by such entities In a manner consis-
charges, such as excessive membership
The applicant shall provide HUD
tent with the requirements of this
fees, which will have the effect of pre-
with a description of the activity, and
Part and other applicable Federal,
cluding low. and moderate-income per-
of the relationship to the applicant's
State, or local law. Specific require-
sons from using the facilities are not
strategy for economic development. In
ments governing the administration of
permitted.
authorizing activities, HUD will take
the use of block grant funds by such
(c) Community economic develop-
into account the amount of long-term
entities are set forth in 570.612. Ap-
ment or neighborhood revitalization
employment to be generated by the
plicants will also be responsible for the
activities. Grant assistance may be
activity accessible to low- and moder-
carrying out of applicable environmen-
provided by an applicant to be used by
ate-income persons, the necessity of
tal-review and clearance responsibil-
neighborhood-based nonprofit organi-
the activity to stimulate private in-
ities.
zations, SBIC's or local development
vestment, the degree of impact on the
(2) Eligible Entities. Entities eligible
corporations, but not private nonprofit
economic conditions of the applicant,
to receive block grant funds under this
entities as defined in 570.204(a)(2)(1),
and the availability of other Federal
section are: (i) A private non-profit
for community economic development
funds.
entity which is any organization, cor-
or neighborhood revitalization activi-
(a) Acquisition. Acquisition of real
poration, or association, duly orga-
ties which- are not otherwise eligible
property for economic development
nized to promote and undertake com-
for assistance under this subpart and
munity development activities on a
which are determined by the applicant
purposes;
(b) Public facilities and improve-
not-for-profit basis, including new
to be necessary or appropriate to the
ments. Acquisition, construction, re-
community associations as defined in
accomplishment of its Community De-
construction, rehabilitation, or instal-
570.403(b);
velopment Program. Such activities
lation of public facilities and improve-
(ii) A neighborhood-based nonprofit
may include the provision of block
ments not otherwise eligible for assis-
organization which is an association or
grant assistance for use by neighbor-
tance, except buildings and facilities
hood-based nonprofit organizations,
corporation, duly organized to pro-
for the general conduct of government
mote and undertake community devel-
SBIC, or local development corpora-
tions for:
which are excluded by § 570.207(a)(1).
opment activities on a not-for-profit
For example, in an area with an un-
basis within a neighborhood as de-
(1) Assistance through grants, loans,
employment rate in excess of the na-
fined pursuant to 570.201(c)(4). An
guarantees, interest supplements, or
tional rate, a manpower training
organization is considered to be neigh-
technical assistance to new or existing
center which is designed to prepare for
small businesses, minority businesses
borhood-based if the majority of
the work force low- and moderate-
and neighborhood nonprofit business-
either its membership, clientele, or
es for
income persons who are unemployed
governing body are residents of the
or underemployed, may be assisted
(i) Working capital or operational
neighborhood where activities assisted
funds; and
where it is determined by the appli-
with block grant funds are to be car-
cant that such a facility is necessary
ried out;
(ii) Capital for land, structures,
and appropriate to support its eco-
property improvements, and fixtures;
(iii) A Small Business Investment
nomic development strategy.
(2) Capitalization of a SBIC or local
Company (SBIC) which is an entity
development corporation required to
FEDERAL REGISTER, VOL 43, NO. 41-WEDNESDAY, MARCH 1, 1978
RULES AND REGULATIONS
8445
qualify for assistance under other Fed-
specifies both short- and long-term ob-
munity development activities fi-
eral programs;
jectives to guide the applicant's Com-
nanced, in whole or in part. with funds
(3) Assistance to minority contrac-
munity Development Program:
provided under this Part and housing
tors to obtain performance bonding: or
(4) Related planning and urban en-
activities covered in the applicant's
(4) Other activities, excluding those
vironmental design acitivities includ-
Housing Assistance Plan (HAP). Costs
described as ineligible for block grant
ing the preparation of communitywide
incurred in carrying out the program.
assistance in 570.207(a)(1) and (e),
plans for land use, housing. open
whether charged to the program on a
appropriate for community economic
space, recreation, utilities, historic
direct or an indirect basis, must be in
development or neighborhood revital-
preservation, including surveys of his-
conformance with the requirements of
ization. Where an applicant proposes
toric properties, economic develop-
Federal Management Circular (FMC)
to fund such entities to undertake ac-
ment, neighborhood preservation, re-
74-4, "Cost Principles Applicable to
tivities pursuant to this paragraph,
moval of architectural barriers to the
Grants and Contracts with State and
the applicant shall:
elderly and handicapped, and environ-
Local Governments." All Items of cost
(1) Provide HUD with a complete de-
mental assessment;
listed in Attachment B, Section C of
scription of the proposed activity;
(5) Collection of detailed data, prep-
that Circular (except Item 6, preagree.
(ii) Provide HUD with a description
aration of analyses, engineering and
ment cost, which are eligible only to
of the relationship of the proposed ac-
design of facilities eligible for assis-
the extent authorized in § 570:301(c)
tivity to the applicant's strategy for
tance which can be constructed with
are allowable without prior approval
neighborhood revitalization or econ-
block grant funds; and
to the extent they constitute reason-
mic development; and
(6) Development of codes, ordinances
able costs and are otherwise eligible
(III) Receive specific authorization
and regulations, necessary for the im-
under this subpart.
from HUD to undertake the activity.
plementation of the plan, including
(a) Eligible program administration
local fair housing ordinances.
costs. Reasonable administrative costs
8 570.205 Eligible planning, and urban en-
(b) Development of a policy-plan-
and staff expenses include necessary
vironmental design costs.
ning-management capacity so that the
expenditures for the following:
Grant assistance may be used for
applicant may:
(1) Salaries, wages and related costs
the following planning, design, and en-
(1) Set long-term and short-term ob-
of the applicant's staff and the staff of
vironmental costs:
jectives related to the community de-
local public agencies engaged in carry-
(a) Development of a Comprehensive
velopment and housing needs of its ju-
ing out the program;
Community Development Plan. For
risdiction;
(2) Travel costs incurred for official
the purpose of this section, the term
(2) Devise programs and activities to
business in carrying out the program;
"Comprehensive Community Develop-
meet these goals and objectives;
(3) Administrative services per-
ment Plan" means a statement or
(3) Establish an urban environmen-
formed under third-party contracts or
statements (in words, maps, illustra-
tal design administrative capacity to
agreements, including such services as
tions or other methods of communica-
use a systematic, Interdisciplinary ap-
general legal services, accounting ser-
tion) which identify the present condi-
proach to the integrated use of natu-
vices and audit services;
tions, needs and major problems of the
ral and social sciences and environ-
(4) Other costs for goods and ser-
mental design arts in planning and de-
vices required for administration of
applicant's jurisdiction relating to the
specific objectives of the Community
cision making;
the program, including such goods and-
(4) Evaluate the progress of such
services as rental and maintenance of
Development Program as set forth in
§ 570.2(a) and set forth objectives, poll-
programs and activites and the extent
office space, Insurance, utilities, office
cies and standards to guide the devel-
to which the goals and objectives have
supplies and rental or purchase of
opment and implementation of such
been accomplished; and
office equipment;
Community Development Program.
(5) Carry out the management, co-
(5) Costs associated with the admin-
Activities necessary to develop a Com-
ordination and monitoring of the ac-
istration of individual program activi-
ties; and
prehensive Community Development
tivities and programs that are a part
(6) Reasonable administrative costs
Plan may include:
of the applicant's Community Devel-
relating to the provision of rehabilita-
(1) Data gathering and studies nec-
opment Program.
tion loans under Section 312 of the
essary for the development of the
(c) Comprehensive planning activi-
Housing Act of 1964, as amended, and,
Plan or its components, including the
ties. In addition to the planning activi-
where appropriate, administration of
production of base mapping and aerial
ties otherwise eligible for assistance
an urban homesteading program pur-
photography in coordination with the
under this section, assistance may be
suant to section 810 of the Housing
U.S. Geological Survey, and gathering
also provided for comprehensive plan-
and Community Development Act of
information from citizens, but exclud-
ning activities eligible for assistance
1974, as amended, in accordance with
ing the gathering of detailed data and
under the section 701 planning assis-
the Community Development Pro-
preparing of analyses necessary for
tance program pursuant to 24 CFR
gram or housing assistance plan.
the engineering and design of facilities
Part 600 provided that such additional
(b) The provision of information
or activities ineligible for block grant
planning activities are necessary or ap-
and other resources to residents and
assistance pursuant to § 570.207;
propriate to meeting the needs and ob-
citizen organizations participating in
(2) Development of statements of ob-
jectives of the applicants' Community
the planning, implementation, or as-
jectives, policies and standards regard-
Development Program. The applicant
sessment of activities being carried out
ing proposed or forseeable changes in
shall submit a description of the activ-
with block grant funds. This may in-
the present conditions or problems af-
ity to HUD. Among the factors HUD
clude assistance to neighborhood orga-
fecting the applicant's jurisdiction
will take into account in authorizing
nizations in areas of concentrated ac-
that are to be addressed by the Com-
activities will be the Impact of the ac-
tivities or to city-wide organizations
munity Development Program, includ-
tivity on the needs and objectives iden-
conducting training or other activities
ing policies which will affirmatively
tified by the applicant, and the avail-
designed to increase the capability of
further fair housing;
ability of other Federal funds.
low- and moderate-income persons to
(3) Development of a three-year Com-
be involved effectively in the develop-
munity Development Plan which iden-
§
570.206
Eligible
Administrative
ment and planning and design of a
tifies the community development,
Costs.
community development program con-
housing, and economic conditions and
Payment of reasonable administra-
sistent with the applicable citizen par-
needs, demonstrates a comprehensive
tive costs and carrying charges related
ticipation requirements set forth in
strategy for meeting those needs and
to the planning and execution of com-
this Part.
FEDERAL REGISTER, VOL. 43, NO. 41-WEDNESDAY, MARCH 1, 1978
8446
RULES AND REGULATIONS
(c) Provision of fair housing counsel-
The new construction or direct 11-
ing services and other activities de-
nancing of new construction of hous-
the governing body of the recipient
signed to further the fair housing pro-
ing is not eligible for assistance under
meets regularly and which are pre-
visions of § 570.307(k) and the housing
objective of promoting greater choice
this Part, except as described in
dominantly used for municipal pur-
§ 570.207(f).
poses, courthouses. police stations and
of housing opportunities and avoiding
(h) Environmental Studies. The rear
other municipal office buildings;
undue concentrations of assisted per-
sons in areas containing a high propor-
sonable costs of environmental studies.
(2) Other facilities and improve-
tion of lower-income persons. For ex-
including historic preservation clear-
ments, which may not be provided
with block grant funds unless they are
ample, activities may include inform-
ances, necessary to comply with 24
CFR Part 58, including project specific
determined by HUD to be necessary
ing members of minority groups, and
environmental assessments and clear-
and appropriate to the implementa-
the handicapped, of housing opportu-
ances for activities eligible for assis-
tion of an applicant's strategy for com-
nities in non-traditional neighbor-
tance under this Part.
munity development and housing in
hoods and providing information
accordance with 570.201(c)(14) or
about such areas, and assisting mem-
$ 570.207 Ineligible activities.
570.203(b), include:
bers of minority groups, and the
(1) Facilities used for exhibitions,
handicapped, through provision of
The following is a list of activities
spectator events and cultural pur-
escort services to brokers offices in
which are ineligible for block grant as-
poses, including stadiums, sports
non-traditional neighborhoods.
sistance under most circumstances and
arenas, auditoriums, concert halls, cul-
(d) Provision of assistance to facili-
serves as a general guide regarding in-
tural and art centers, convention cen-
tate performance and payment bond-
eligible activities. There are several
ters and exhibition halls, museums,
ing necessary for contractors carrying
authorities set forth in Subpart C
central libraries, and similar facilities.
out activities assisted with block grant
which would permit activities cited in
For the purpose of this paragraph, 11-
funds including, payment of bond pre-
this section to be undertaken with
braries (including central libraries in
miums in behalf of contractors.
block grant funds. When an activity
units of general local government
(e) Property management. Reason-
used as an example in this section
under 25,000 population where the cri-
able costs of managing properties ac-
meets the requirements for eligibility
teria set forth in § 570.201(c)(4)(ii) are
quired with block grant funds.
pursuant to Subpart C, such an activ-
satisfied), cultural, art and museum fa-
(f) Applications for Federal prò-
ity may be assisted with block grant
cilities which meet the requirements
grams, including the block grant pro-
funds even though it is used as an ex-
for neighborhood facilities set forth in
gram and UDAG program, may be pre-
ample of an Ineligible activity. The list
pared with block grant funds where
of examples of ineligible activities is
§ 570.201(c)(4) are considered neigh-
borhood facilities and are therefore
necessary and appropriate to imple-
merely illustrative and does not consti-
eligible for assistance.
ment the applicant's comprehensive
tute a list of all ineligible activities:
(II) Schools and educational facili-
strategy for community development.
(a) Public works, facilities and site
or other improvements. The general
ties, (including elementary, secondary.
Special provisions regarding letter to
college, and university facilities). For
proceed for small city applicants are
rule is that public works, facilities and
the purpose of this paragraph.
contained in Subpart F.
site or other improvements are Ineligi-
ble to be acquired, constructed, recon-
A neighborhood facility, senior
(g) Activities to facilitate the imple-
mentation of a housing assistance
structed, rehabilitated or installed
center or center for the handicapped
unless they are eligible pursuant to
in which classes in practical and voca-
plan for necessary expenses, prior to
construction, in planning and obtain-
§ 570.201(c) or 570.203(b), or were
tional activities (such as first aid, ho-
ing financing for the new construction
previously eligible under any of the
memaking, crafts, independent living.
or substantial rehabilitation of hous-
etc.) are among the services provided
programs consolidated by the Act
ing for lower-income persons. Activi-
(except the public facilities loan pro-
is not considered as a school or educa-
tional facility;
ties may include:
gram, the model cities program, and as
(1) The costs of conducting prelimi-
an urban renewal local grant-in-aid eli-
(iii) Airports, subways, trolley lines,
gible under section 110(d)(3) of Hous-
bus or other transit terminals, or sta-
nary surveys and analyses of market
needs;
ing Act of 1949) and cited in § 570.1(b).
tions, and other transportation facili-
(2) Site and utility plans, narrative
Activities undertaken to make facili-
ties, (excluding railroad spurs assisted
descriptions of the proposed construc-
pursuant to § 570.203(c)).
ties and improvements otherwise ineli-
tion, preliminary cost estimates, urban
gible for development with block grant
(iv) Hospitals, nursing homes and
design documentation, and "sketch
assistance accessible to the elderly and
other medical facilities. For the pur-
drawings," but excluding architectur-
handicapped through removal of ar-
pose of this paragraph, a neighbor-
al, engineering. and other details ordi-
chitectural barriers, or for the pur-
hood facility, senior center, center for
narily required for construction pur-
poses of historic preservation pursuant
the handicapped, which provide gener-
poses, such as structural, electrical,
to §§ 570.201(k) and 570.202(f), respec-
al health services is not considered to
plumbing, and mechanical details;
be a medical facility.
tively, are eligible for assistance with
(3) Reasonable costs associated with
block grant funds and are not pre-
(v) Treatment works for sewage or
development of applications for mort-
cluded by this section. Where acquisi-
industrial wastes of a liquid nature,
gage and insured loan commitments,
tion of real property Includes an exist-
consisting of the various-devices used
including commitment fees, and of ap-
ing improvement which is to be uti-
in the treatment of sewage and com-
plications and proposals under the
lized in the provision of an Ineligible
mercial and industrial wastes of a
Section 8 housing assistance payments
public facility, the portion of the ac-
liquid nature, including the necessary
program pursuant to 24 CFR Parts
quisition cost attributable to such Im-
interceptor sewers, outfall sewers,
880-883; and
provement, as well as the cost of any
actual treatment facilities, pumping
(4) Fees associated with processing
rehabilitation or conversion undertak-
stations, power and other equipment,
of applications for mortgage and in-
en to adapt or make the property suit-
and their appurtenances. The term
sured loan commitments under pro-
able for such use, shall be ineligible.
"interceptor sewer" means a line
grams including those administered by
Examples include the following:
which has as its primary purpose the
HUD, Farmers Home Administration
(1) Buildings and facilities for the
diversion or transmission of sewage
(FmHA). Federal National Mortgage
general conduct of government, cannot
from a collection system to a treat-
Association (FNMA), and the Govern-
be provided with block grant assis-
ment facility, and applies to the fol-
ment National Mortgage Association
lowing:
tance, such as city halls and other
(GNMA).
headquarters of government where
(A) In those situations where raw or
inadequately treated sewage is being
FEDERAL REGISTER, VOL. 43, NO. 41-WEDNESDAY, MARCH 1, 1978
RULES AND REGULATIONS
8447
discharged from an existing public
public service within the facility, in-
or any other purpose. Examples of in-
sewer, those sewer lines. whether grav-
cluding costs of rent, utilities and
eligible income payments include the
ity or force, and any pumping stations
maintenance.
following: payments for income main-
or other appurtenances thereto which
Examples of activities which are not
tenance, housing allowances, down
are necessary to prevent or eliminate
eligible for block grant assistance are:
payments and mortgage subsidies.
the discharge into any waterway of
(1) Maintenance and repair of
III. Conforming changes are made to
raw or inadequately treated sewage
streets, parks, playgrounds, water and
part 570 as follows:
from an existing point or points of dis-
sewer facilities, neighborhood facill-
charge in a public system are not eligi-
ties, senior centers, centers for the
§ 570.403 [Amended]
ble. This includes any necessary pump-
handicapped, parking and similar
1. In § 570.403(h), the reference to
ing stations, force mains or other ap-
public facilities. Examples of mainte-
570.200(a)"
is
changed
to
purtenances thereto; and
nance and repair activities for which
570.201(c)(4)."
(B) In all other situations, the line
block grant funds may not be used in-
or lines which divert the flow to the
clude the filling of pot holes in streets,
§ 570.405 [Amended]
treatment facility from the point of
repairing of cracks in sidewalks, the
2. In § 570.405(b), the reference to
natural discharge of a collection
mowing of recreational areas, and the
570.200" is changed to "Subpart C."
system, where no treatment to be pro-
replacement of expended street light
bulbs.
§ 570.407 [Amended]
vided, including any necessary pump-
ing stations, force mains or other ap-
(2) Payment of salaries for staff,
3. In § 570.407(d), the reference to
purtenances are not eligible.
utility costs and similar expenses nec-
570.200" is changed to "Subpart C."
(b) Purchase of equipment. The pur-
essary for the operation of public
chase of equipment with block grant
works and facilities; and
§ 570.512 [Amended]
funds is generally ineligible.
(3) Expenses associated with provi-
4. In § 570.512(e), the reference to
(1) Construction equipment. The
sion of any public service which is not
570.200" is changed to "Subpart C."
purchase of construction equipment is
eligible for assistance pursuant to
ineligible, but compensation for the
§ 570.201(e).
§ 570.601 [Amended]
use of such equipment through leas-
(d) General government expenses.
5. In § 570.601(b)(4)(iii), the refer-
ing. depreciation or use allowances
Expenses required to carry out the
ence to 570.200" is changed to "Sub-
pursuant to Attachment B of OMB
regular responsibilities of the unit of
part C."
Circular A-102 for an otherwise eligi-
general local government are not eligi-
ble activity is an eligible use of block
ble for assistance under this part. Ex-
§ 570.607 [Amended]
grant funds. An exception is the pur-
amples include all ordinary general
6. In 570.607, the references to
chase of construction equipment
government expenditures not related
to the Community Development Pro-
507.200(a)(8)," 570.200(b)," and
which is used as a part of a solid waste
disposal facility which is eligible for
gram and not related to activities eligi-
570.200(a)(2)" are changed to
block grant assistance pursuant to
ble under this subpart.
570.201(e),"
570.200(c),"
and
570.201(c)(13)," respectively.
§ 570.201(c)(5), such as a bulldozer
(e) Political activities. No expendi-
used at a sanitary landfill.
ture may be made for the use of equip-
§ 570.801 [Amended]
(2) Furnishings and personal proper-
ment or premises for political pur-
tv. The purchase of equipment, fix-
poses, sponsoring or conducting candi-
7. In 570.801(b)(1)(Ii), the refer-
dates' meetings, engaging In voter reg-
ences to "$570.200" are changed to
tures, motor vehicles, or furnishings or
istration activity or voter transporta-
"Subpart C."
other personalty not an integral struc-
tion or other partisan political activi-
tural fixture is ineligible, except when
§ 570.907 [Amended]
ties.
necessary for use by a recipient or its
subgrantees in the administration of
(f) New housing construction. Assis-
8. In § 570.907(h), the references to
its Community Development Program
tance may not be used for the con-
570.200(a)(8)" and "§ 570.200(a)(2)"
pursuant to § 570.205(d), or as a part
struction of new permanent residen-
are changed to 570.201(e)" and
of a public service pursuant to
tial structures or for any program to
"§ 570.201(c)(13)," respectively.
subsidize or finance such new con-
§ 570.201(e).
struction, except as provided under
§ 570.909 [Amended]
(c) Operating and maintenance ex-
the last resort housing provisions set
9. In 570.909(f)(1)(i), the reference
penses. The general rule is that any
forth in 24 CFR Part 43, or pursuant
to 570.200" is changed to "Subpart
expense associated with operating,
to § 570.204(c)(4). For the purpose of
C.".
maintaining or repairing public facili-
this paragraph, activities in support of
ties and works or any expense associat-
the development of low- or moderate-
(Title I, Housing and Community Develop-
ed with providing public services not
ment Act of 1974 (42 U.S.C. 5301 et seq.);
income housing in accordance with an
Title I, Housing and Community Develop-
assisted with block grant funds is ineli-
approved Housing Assistance Plan in-
ment Act of 1977 (Pub. L. 95-128); and sec.
gible for assistance. However, operat-
cluding clearance, site assemblage,
7(d), Department of Housing and Urban De-
ing and maintenance expenses associ-
provision of site and provision of
velopment Act (42 U.S.C. 3535(d)).)
ated with providing public services or
public improvements and certain hous-
ing preconstruction costs set forth in
Issued at Washington, D.C., Febru-
interim assistance otherwise eligible
§ 570.205(d)(7), are not considered as
ary 21, 1978.
for assistance under this Part may be
assisted. For example, the cost of a
programs to subsidize or finance new
ROBERT C. EMBRY, Jr.,
public service being operated with
residential construction.
Assistant Secretary for Commu-
block grant funds in a neighborhood
(g) Income payments. The general
nity Planning and Develop-
facility may include reasonable ex-
rule is that assistance shall not be
ment.
penses associated with operating the
used for income payments for housing
[FR Doc. 78-5179 Filed 2-23-78; 2:24 pml
FEDERAL REGISTER, VOL. 43, NO. 41-WEDNESDAY, MARCH 1, 1978
WEDNESDAY, MARCH 1, 1978
PART IV
ARCHIVES OF THE
MATIONAL THE SHIPS UNITED
1934
DEPARTMENT OF
HOUSING
AND URBAN
DEVELOPMENT
Office of the
Assistant Secretary for
Community Planning and
Development
COMMUNITY
DEVELOPMENT
BLOCK GRANT
PROGRAM
Entitlement Grants
8450
RULES AND REGULATIONS
[4210-01]
final effect. The following summarizes
related HUD programs which may be
the significant recurrent comments
undertaken where community devel-
Title 24-Housing and Urban Development
and the changes that were made.
opment activities are being carried out
CHAPTER V-OFFICE OF THE ASSISTANT SEC-
PLANNING CONSIDERATIONS
in a concentrated manner and encour-
RETARY FOR COMMUNITY PLANNING AND
ages localities to designate appropriate
DEVELOPMENT, DEPARTMENT OF HOUSING
Public comments tended to support
areas for concentrated action.
AND URBAN DEVELOPMENT
the general approach of encouraging
Paragraph (c) is headed "Neighbor-
comprehensive planning and use of
hood Strategy Area" which is the term
[Docket No. R-78-471]
block grant funds in a concentrated
being adopted to refer to areas where
PART 570-COMMUNITY DEVELOPMENT
manner, but criticized the specific pro-
concentrated programs are being car-
visions for being too restrictive. Com-
BLOCK GRANTS
ried out. This is more flexibly defined
ments by local officials and public In-
than the "Comprehensive Neighbor-
Subpart D-Entitiement Grants
terest groups tended to be in agree-
hood Revitalization Area" term which
ment in both areas. Cities which liked
it replaces. It eliminates the three to
AGENCY: Department of Housing
the approach felt that it would facill-
and Urban Development.
five year time limit. Rather, it pro-
tate longer range planning and make
vides that the size of the area should
ACTION: Final rulemaking.
for more effective programming. Com-
take into account the conditions and
SUMMARY: HUD is issuing final rules
ments from public interest groups
the extent of resources to be provided
stated their expectation that these
on Subpart D of the regulations for
so that substantial long-term improve-
provisions would result in more funds
the Community Development Block
ments can be accomplished within a
being targeted to lower-income neigh-
Grant Program governing applications
reasonable time. The size and condi-
borhoods.
for entitlement grants. These rules
tion of the areas to be selected are at
The specific criticisms that were
have been revised to:
the discretion of the applicant so long
made were as follows. Many com-
(1) Ensure that community develop-
as the resources provided are suffi-
menters felt that the rules were too
ment programs carried out with block
cient to truly constitute a concentrat-
prescriptive in that they appeared to
grant funds meet statutory objectives,
ed approach to meeting the needs of
particularly the objective of providing
make comprehensive neighborhood re-
designated areas.
decent housing, a suitable living envi-
vitalization programs mandatory.
There was considerable favorable
They concluded that all block grant
ronment, and expanded economic op-
comment on the multiyear program-
recipients had to use funds in a con-
portunities principally for persons of
ming provisions which have been re-
centrated manner, and that scattered
low- and moderate-income;
tained. There were no other signifi-
programs were not permitted even
cant comments.
(2) Enhance the opportunity for citi-
where they were appropriate for the
zens to participate in planning, imple-
particular community and benefited
PROGRAM BENEFIT TO Low- AND
menting. and assessing the program;
(3) Provide for improved planning
low- and moderate-income persons.
MODERATE-INCOME PERSONS
which coordinates housing assistance
The definition of comprehensive
These provisions received extensive
neighborhood revitalization areas was
and community development pro-
comment from a wide range of local
grams and encourages a comprehen-
criticized by both local government of-
governments, public Interest groups,
sive approach to dealing with urban
ficials and public interest groups. The
and individuals. In general, local gov-
problems; and
commenters objected particularly to
ernment officials objected to the rule.
(4) Rationalize the application pro-
the requirement that such areas be of
While most agreed that the principal
cess by reducing the frequency of sub-
manageable size and condition and to
benefit of the block grant program
mission of the Community Develop-
the three to five year time limit for
should be for low- and moderate-
ment and Housing Assistance Plans to
substantially meeting the housing and
income persons, they felt that the rule
once in three years, making them
community development needs of the
as proposed was too restrictive, that it
more substantive documents, and sim-
area. They stated that this would pre-
would limit local initiative and flexibil-
plifying the annual application.
vent localities from undertaking com-
ity, and would create paperwork and
prehensive programs in the worst
administrative burdens. These commu-
EFFECTIVE DATE: Unless otherwise
areas and that it would require desig-
nities objected both to the overall per-
indicated in the regulations, these re-
nating areas that were to small too
centage requirement for the use of
quirements are effective for all appli-
permit effective citizen participation
funds for the benefit of low- and mod-
cations received in HUD on or after
or delivery of services.
erate-income persons, and to many of
May 1, 1978.
Other recurrent comments were:
the detailed provisions such as the
FOR FURTHER INFORMATION
(1) That comprehensive programs
definition of low- and moderate-
CONTACT:
should not be limited to residential
income service areas and the limita-
areas-this comment was made by nu-
tions on the kinds of projects which
Harriet L Frank, Beverly M.
merous localities that did not meet the
Harvey. or David J. Pollack, Pro-
could be carried out as exceptions to
UDAG distress criteria; and
the low- and moderate-income benefit
grams Standards Division Communi-
(2) That this appeared to require an
provisions.
ty Planning and Development, De-
additional plan and the relationship of
partment of Housing and Urban De-
On the other hand, many groups en-
that to the three-year community de--
velopment, 451 Seventh Street SW.,
dorsed the rule. These commenters
velopment plan was not clear.
Washington, D.C. 20410, 202-755-
felt that a higher proportion of funds
6304-755-6306.
This section has been substantially
should be used for the benefit of low-
revised in response to the comments.
and moderate-income persons, and
SUPPLEMENTARY INFORMATION:
Section 570.301(a) is now headed
that some of the detailed provisions
On October 25, 1977, proposed revi-
"Comprehensive Strategies." It states
should be tightened to prevent abuse.
sions to Subpart D were published in
the basic planning efforts required of
The final rule continues the empha-
the FEDERAL REGISTER (42 FR 56450)
all applicants for block grants and ex-
sis on principally benefitting low- and
for public comment. Interested parties
plicitly recognizes that each applicant
moderate-income persons. The rule
were given until November 25, 1977, to
has discretion to develop strategies ap-
provides that an application shall be
submit written comments. A total of
propriate to local needs and condi-
presumed to benefit low- and moder-
1,327 letters of comment were re-
tions. Paragraph (b) is headed "Co-
ate-income persons where the appli-
ceived. All comments were considered
ordination of Programs" and describes
cant proposes that not less than 75
carefully in revising these rules for
the block grant funded activities and
percent of the program funds be used
FEDERAL REGISTER, VOL 43, NO. 41-WEDNESDAY, MARCH 1, 1978
RULES AND REGULATIONS
8451
for projects and activities which bene-
Paragraph 570.302(b)(2) states that
that neighborhoods or other geo-
fit low- and moderate-income persons
the program as a whole shall princi-
graphic areas to be served by particu-
as defined in the rule. Such a pre-
pally benefit low- and moderate-
lar projects are generally not cotermi-
sumption, while not determinative,
income
persons.
Paragraph
nous with census tract boundaries; and
shall relieve the applicant, in the ab-
570.302(b)(3) contains the provision
that the effort to qualify areas for as-
sence of substantial evidence to the
that programs in which at least 75 per-
sistance could lead to gerrymandering
contrary, from any examination by
cent of the funds are budgeted for pro-
and deflect attention from the quality
HUD prior to funding to determine
jects defined as principally benefitting
of programming. In response, this new
whether or not the program as a
lower-Income persons shall be pre-
provision states that the applicant's.
whole principally benefits low- and
sumed to meet this requirement,
determinations that projects principal-
moderate-income persons. All other
absent substantial evidence to the con-
ly benefit low- and moderate-income
applications shall be subject to exami-
trary.
persons may be based on a variety of
nation by HUD prior to funding to de-
Numerous commenters who objected
data including 701 planning studies,
termine whether they principally
to the percentage requirement also
local surveys, etc.; and that the appli-
benefit low- and moderate-income per-
questioned the legal basis for this rule.
cant shall maintain such documenta-
sons. In making this determination,
These commenters noted that the
tion in its files. Where at least 75 per-
HUD will consider the information in
statute does not have any quantitative
cent of program funds are budgeted
the applicant's community develop-
standard for benefits to low- and mod-
for projects which principally benefit
ment plan, the specific needs of lower-
erate-income persons and simply re-
low- and moderate-income persons,
income persons in the applicant's ju-
quires that applicants give maximum
HUD will accept the applicant's deter-
risdiction, and past expenditure pat-
feasible priority to activities which
minations; otherwise, HUD will exam-
terns in areas having concentrations of
benefit low- and moderate-income per-
ine the proposed activities to ensure
lower-income persons. All programs,
sons or prevent or eliminate slums and
that the programs as a whole princi-
whether entitled to the presumption
blight. They therefore questioned
pally benefits lower-income persons.
or not, shall be subject to monitoring
HUD's authority to give greater
HUD will monitor the applicant's per-
by HUD to ensure that low- and mod-
weight to one category of project.
formance to assure that the projects
erate-income persons are principally
While this view has been fully consid-
being carried out with block grant
benefitted by the program as a whole.
ered, it was concluded that the re-
funds principally benefit low- and
The reasons for adopting this rule
quirement is statutorily permissible in
moderate-income persons. Our inten-
are as follows. It was decided that it
terms of the specific programmatic re-
tion is to carry out the statutory ob-
was necessary to require in the regula-
quirements and the stated primary ob-
jective of benefitting low- and moder-
tions for the first time that the block
jective of the Act.
grant program should principally
ate-income persons in a strong and
Subparagraph 570.302(b)(3) also pro-
benefit low- and moderate-income per-
committed fashion. At the same time,
vides that the determination of the
sons, and to provide clearer and more
we intend to be practical and flexible
amount of funds benefitting low- and
specific rules and review standards to
regarding documentation. Applicants
moderate-income persons will be based
assure that this occurred. None of the
need to know the income characteris-
on the amount of program funds to be
alternative approaches suggested ap-
tics of areas within their jurisdictions
peared workable; they did not provide
available during the three year period
in order to design programs to meet
a standard which could be adminis-
covered by the applicant's Community
statutory requirements, and documen-
tered in a fair and consistent fashion.
Development and Housing Plan. This
tation reflecting that knowledge must
Yet it was recognized that a rigid per-
substitutes for the provisions in Sec-
be maintained in the applicant's files.
centage requirement would unduly
tion 570.302(d)(5) of the proposed
However, we do not intend that appli-
limit applicants. It was therefore de-
rules regarding adjusting the amount
cants be restricted, in their program-
cided to adopt a modified rule which
of funds which must be used for pro-
ing by obsolete data or irrelevant geo-
provides a reasonable measure of flexi-
jects which principally benefit low-
graphic boundaries. Rather, we expect
bility and responsiveness to varied
and moderate-income persons by the
that applicants will be able to make a
local circumstances.
amount by which such expenditures
reasonable case that projects carried
The comments made on the specific
have exceeded 75 percent in previous
out with block grant funds principally
provisions, and the changes made in
years. The reason for this is to facili-
serve low- and moderate-Income per-
response to those comments are as fol-
tate long range planning by providing
sons based on pertinent generally
lows:
an assured source of funding for pro-
available information.
jects which otherwise meet these re-
Subparagraph (5) contains the provi-
GENERAL
quirements. It is noted that Section
sion for benefitting low income per-
Section 570.302(a) is now called Stat-
570.304(c) requires a three year activ-
sons which was previously in
utory Provisions and cites the statu-
ity summary which describes the pro-
570.302(a)(2). Numerous comments
tory sections on which this rule is
jects to be carried out over a three
regarding this were made by public in-
based. Section 570.302(b) is now called
year period, their locations and the
terest groups concerned with the
General Requirements and contains
amounts of block grant and other
needs of lower income persons. Many
the rules formerly in paragraph (a),
funds to be provided. The new applica-
felt that a more specific rule is needed
revised as follows:
tion forms to be used effective August
which would require that expenditures
Paragraph 570.302(b)(1) states that
1, 1978, will clearly display the infor-
for low-income, as compared with
all projects and activities must either
mation required to make these deter-
moderate-income persons, be in pro-
principally benefit low- and moderate-
minations on a three year basis and to
portion to such persons' share of the
income persons, or prevent or elimi-
hold cities accountable for using pro-
low- and moderate-income population.
nate slums and blight, or meet other
gram funds in accordance with the
These commenters expressed concern
community development needs having
Three-Year Plan.
that cities would neglect the neediest
a particular urgency. This is the rule
Subparagraph (4) is new and re-
parts of their population in favor of
which was originally published as
sponds to the numerous comments re-
those relatively more effluent. These
570.303(b)(5) in the FEDERAL REGISTER
garding the paperwork and other diffi-
comments were considered at length
of February 2, 1977. It is based on the
culties anticipated in order to comply
and it was decided that a quantified
maximum feasible priority language of
with this rule. Many commenters
requirement for benefits to low-
Section 104(b)(2) of the Act which set
noted that census data is now out of
income persons should not be adopted.
out the three categories of projects for
date and In many cases no longer accu-
The reasons are that there is no evi-
which block grant funds could be used.
rately represents existing conditions;
dence that there is a significant pat-
FEDERAL REGISTER, VOL 43, NO. 41-WEDNESDAY, MARCH 1, 1978
8452
RULES AND REGULATIONS
tern of neglect of low-income persons
low- and moderate-Income residents
sists of rehabilitation financing and
in favor of moderate-income persons,
would work against the legitimate,
public services. It is noted that many
who are defined as members of house-
statutory objective of spatial decon-
lower-income persons could not afford
holds whose income does not exceed
centration, of minorities and low- and
to repay loans or pay increased rents,
80 percent of the SMSA or state non-
moderate-Income persons; that excep-
although lower-income homeowners
metropolitan median, and that an ad-
tions should be made for areas that
may benefit from direct grants, and,
ditional quantitative standard would
are economically diverse when block
therefore, could not directly benefit
greatly complicate local planning and
grant funds were being used to pro-
from most rehabilitation programs.
programing. However, the words
mote such diversity; and that provi-
Public services are limited by the Act
"which can be carried out with avail-
sion should be made for activities
to areas in which physical develop-
able resources" were deleted since
which encourage the provision of sub-
ment activities are being carried out in
many read this as diluting the commit-
sidized housing for low-Income persons
a concentrated manner and where the
ment to assuring that the needs of low
outside areas of lower-Income concen-
public services are necessary to sup-
income persons were addressed. This
tration. Some commenters questioned
port such physical development activi-
section provides a clear basis for deal-
the definitions of low- and moderate-
ties. As a practical matter, it is, there-
ing with abuses and HUD intends to
income, and proposed alternatives
fore, generally not possible to use the
enforce it.
such as defining them as 100 percent
block grant program exclusively for
and 120 percent of the Standard Met-
REVIEW GUIDELINES
provision of benefits directly to lower-
ropolitan Statistical Area (SMSA) or
income individuals. Furthermore, re-
The provisions in paragraph (c) are
state nonmetropolitan median in-
stricting local programming in such
new and indicate how the modified
comes, or having a national standard,
fashion would effectively prevent
standard will be administered. Subpar-
or defining them in comparison to the
cities from providing needed facilities
agraph (1) provides that, absent sub-
applicant's median income. Some pro-
such as neighborhood facilities, pools,
stantial evidence to the contrary. HUD
posed that low- and moderate-income
playgrounds, to the majority of lower-
will presume that an application prin-
areas be defined as areas with concen-
income persons, since some higher-
cipally benefits low- and moderate-
trations of lower income persons ex-
income persons might also benefit.
Income persons where at least 75 per-
ceeding the average of such persons in
The definitions of projects which
cent of the program funds are for pro-
the SMSA or the community. Some
benefit low- and moderate-income per-
jects which meet the definitions of
suggested that the absolute number of
sons have been revised as follows:
principally benefitting lower-income
low- and moderate-income persons to
First, the requirement that such pro-
persons. Subparagraph (2) provides
be served be considered, not only the
Jects must be designed to meet Identi-
that HUD will subject all other appli-
proportion of such persons in a given
fied needs of low- and moderate-
cations to an examination prior to
area, since they felt that the proposed
income persons as described in the ap-
funding to determine whether the ac-
rules would prevent benefits to large
plicant's Community Development
tivities proposed constitute a program
numbers of lower Income persons who
Plan has been moved to the beginning
which principally benefits low- and
reside in areas where they do not con-
for greater emphasis. The distinction
moderate-income persons, and Indi-
stitute a majority.
between projects benefitting low- and
cates some of the factors that shall be
On the other hand, numerous public
moderate-income areas and projects
taken into account in making that de-
interst groups concerned with lower
benefitting low- and moderate-Income
termination.
Income persons felt that the rule was
persons has been eliminated because it
too permissive since it counted as a
PROJECTS WHICH BENEFIT Low- AND
proved to be confusing. Rather, the
low- and moderate-Income benefit pro-
MODERATE-INCOME PERSONS
categories of projects now include pro-
Ject one which benefitted as much as
Jects with income eligibility require-
These provisions, which were previ-
49 percent higher Income persons.
ments that limit the benefits to low-
ously in the proposed paragraph
Many felt that the cost of each project
and moderate-Income persons, and
570.302(b), received the greatest
should be prorated to the extent that
projects which do not have income
number of comments made on the spe-
it benefits low- and moderate-income
limits but which principally benefit
cific provisions of the general rule.
persons. Some felt that low- and mod-
low- and moderate-income persons in
It is apparent from these comments
erate-income projects should be limit-
an area delineated by the applicant.
that most of the local governments
ed to those which provide direct bene-
The rule makes clear that such areas
that objected to the overall percentage
fits to low- and moderate-income per-
need not be coterminous with census
requirement were particularly trou-
sons. They objected to including pro-
tracts, but rather may consist of
bled by the combination of that re-
jects which benefitted geographic
neighborhoods or other locally defined
quirement with the tight definitions
areas where higher income persons
areas to be served by a given project.
of projects which would be credited
would also receive benefits. Finally, a
The category of projects benefitting
toward meeting it. These commenters
number of commenters felt that the
low- and moderate-income persons in
stated that the proposed rules would
provision that projects defined as prin-
delineated areas has been expanded to
impede and even prevent effective pro-
cipally benefiting low- and moderate-
include areas with less than a majority
graming. The specific comments were:
income persons must meet identified
of low- and moderate-income persons
Numerous local governments, particu-
needs of low- and moderate-Income
for localities whose low- and moderate-
larly cities in the south and west, and
persons should be strengthened and
income residents are dispersed and
urban counties, stated that they had
specific standards for meeting it be
where it is not possible or appropriate
no areas, or very few areas, in which
provided.
to target funds to -areas where low-
low- and moderate-income persons
After careful consideration of the
and moderate-income residents consti-
constituted a majority. Others felt
full range of comments, It was decided
tute a majority.
that the definitions of projects princi-
that this section should be modified in
Economic development projects are
pally benefitting low- and moderate-
order to provide needed flexibility and
now described as projects designed to
income persons were too restrictive
responsiveness to varied local circum-
create permanent employment for
and would limit comprehensive pro-
stances and permit effective program-
low- and moderate-income persons.
gramming in certain transitional areas
ming. We could not agree that pro-
Projects to attract or retain commer-
in which funds could be used to great
Jects that benefit low- and moderate-
cial facilities in lower income neigh-
effect.
income persons should be limited to
borhoods are now listed as an example
Comments were made that targeting
projects which provide direct benefits
or projects benefitting delineated
-funds into areas with a majority of
to such persons. Direct benefits con-
areas.
FEDERAL REGISTER, VOL 43, NO. 41-WEDNESDAY, MARCH 1, 1978
RULES AND REGULATIONS
8453
Removal of architectural barriers is
as projects in areas which meet the
and had strong economies, where the
added to the list of projects generally
definition of an urban renewal or simi-
economic development activities would
assumed to benefit low- and moderate-
lar area under state law and In which
not principally benefit low- and mod-
income persons in response to a
the applicant undertakes a compre-
erate-income persons. We have con-
number of comments and questions.
hensive program to remedy the condl-
cluded that we can accomplish the
tions which qualify the area. The
same result in a fashion more respon-
PROJECTS WHICH PREVENT OR
reason for redefining the concept of
sive to individual city conditions by ap-
ELIMINATE SLUMS AND BLIGHT
comprehensive slum and blight pre-
plying the "plainly inappropriate" cri-
Paragraphs (e) and (f) now contain
vention and elimination projects was
teria for disapproval of applications in
the rules formerly listed under the
to provide a definition that was more
8 570.311 of these regulations. The spe-
heading of "Exceptions" in paragraph
flexible and easler to understand and
cial category of attracting higher
(c). The new headings conform to the
apply. It was observed that the previ-
Income residents has been eliminated
three categories of activity in the
ous definition led to the conclusion
altogether. Attracting higher Income
maximum feasible priority language of
that comprehensive neighborhood
residents is a statutory objective and
the Act.
programs were permitted only in areas
applicants can develop strategies
Local government officials who com-
which were not predominantly low-
toward that end. Such strategies may
mented on these provisions generally
and moderate-income and that readers
be accomplished through projects
regarded them as too restrictive. Many
were uncertain as to how extensive the
which principally benefit low- and
stated that the overall percentage re-
deterioration had to be in order to
moderate-income persons, or through
quirement for the use of funds was
qualify an area. This category now in-
slum prevention and elimination ac-
sufficient to assure principal benefit to
cludes commercial as well as residen-
tivities permitted by these regulations;
low- and moderate-income persons,
tial areas, as numerous cities recom-
they do not constitute a separate cate-
and that the activities permitted with
mended.
gory of activity and are no longer sep-
the remainder of the grant should
The second category, elimination of
arately described.
therefore be more flexibly defined.
detrimental conditions, has been ex-
Specific comments included the fol-
panded to include relocation, since ac-
PROJECTS DESIGNED To MEET NEEDS
quisition and demolition generally ne-
HAVING A PARTICULAR URGENCY
lowing: Economic development activi-
ties should not be limited to localities
cessitate relocation payments and as-
Some commenters stated that
meeting the distress criteria for Urban
sistance. It has also been expanded to
urgent needs should not be subject to
Development Action Grants since
include historic preservation since
the limitation on expenditures for pro-
many other cities are distressed rela-
that is a statutory objective and we
Jects and activities not benefitting low-
tive to their regions, or have distressed
agree that the previous provision was
and moderate-income persons. Others
areas within their jurisdiction; the
too limited. However, we did not add
felt that the requirement that the
slum and blight category should in-
site improvements since it was our spe-
needs must be of recent origin should
clude commercial revitalization; the
cific Intention to prevent use of block
be eliminated. A number of com-
limit on such activities should be 33 1/3
grant funds for public improvements
menters wanted specific criteria for
percent rather than 25 percent; the
and facilities in areas which were nel-
determining that other sources of
rule effectively prevents most historic
ther predominantly low- and moder-
funding were not available, and for de-
preservation activities; the category of
ate-Income nor blighted. Provision of
termining that the applicant could not
"elimination of detrimental condi-
often costly improvements and facill-
finance the activities on its own.
tions" should be expanded to include
ties on a scattered basis not part of a
We considered the comments and de-
activities such as relocation and site
strategy to aid low- and moderate-
cided not to change this section. We
improvements.
income persons or prevent or elimi-
feel that urgent needs should be sub-
Certain groups which commented
nate slums and blight is generally not
ject to the same limitation as activities
opposed the provision permitting ac-
consonant with the objectives of the
to prevent and eliminate slums and
tivities to attract higher income resi-
Act and is therefore deliberately pre-
blight since that is consonant with the
dents. They were concerned that such
cluded by this rule.
primary objective of the Act. The re-
activities would displace lower income
The provision on completion of Fed-
quirement that the need be of recent
persons and felt that It was inappro-
erally assisted urban renewal projects
origin is consistent with current
priate to use block grant funds to aid
has been clarified to indicate that pro-
policy, which has proved workable. If
higher income persons. Many recom-
jects which principally benefit low-
a need is not of recent origin, and a
mended that where block grant funds
and moderate-income persons are
community has not acted to address it,
were used to encourage construction
counted as such. Activities necessary
the urgency of the need becomes ques-
or rehabilitation of higher income
to complete renewal projects which do
tionable. We considered developing
housing, the rules require that a speci-
not principally benefit lower-income
specific criteria for determining local
fled proportion of the housing units,
persons shall not be included in those
capacity to finance and availability of
such as 20 percent, be reserved for
activities benefitting lower-income
other resources and found this effort
Section 8 assistance.
persons, but shall be recognized as ac-
impractical due to the great range of
There were numerous comments
tivities which prevent or eliminate
circumstances which would have to be
about urban renewal completion. A
slums and blight.
provided for.
number of local governments recom-
The category of activities which may
mended that there be no limit on the
be undertaken only by distressed cities
COMPUTING BENEFITS TO Low- AND
MODERATE-INCOME PERSONS
use of funds for this purpose and that
has been eliminated. Regarding eco-
cities should be encouraged and aided
nomic development, It was decided
There were numerous comments
in completing such projects. It was
that limiting such activities to dis-
from public interest groups objecting
also, recommended that completion of
tressed cities would be inappropriate
to the credit for previous expenditures
urban renewal projects which princi-
for certain cities that did not meet the
exceeding 75 percent of the grant for
pally benefit low- and moderate-
Action Grant distress criteria but
the benefit of low- and moderate-
income persons should be credited
nonetheless had a real need to en-
income persons. That provision has
toward meeting the 75 percent re-
hance their economic viability. The re-
been eliminated. The other recurrent
quirement.
striction had been proposed in order to
comment was that urban renewal loan
The following changes have been
avoid the use of block grant funds for
repayment should not be excluded
made in response to these comments.
commercial or industrial developments
from the computation of funds used
The first category has been redefined
in cities which were relatively affluent
for the principal benefit of such per-
FEDERAL REGISTER, VOL 43, NO. 41-WEDNESDAY, MARCH 1, 1978
8454
RULES AND REGULATIONS
sons. We did not accept that because
review period. does not lend Itself to
§ 570.303(b)-WRITTEN CITIZEN
of the large amount of outstanding
review of detailed relocation plans.
PARTICIPATION PLAN
loans with Federal guarantees and the
Regarding steps to be taken to miti-
importance we attach to assuring that
gate adverse effects, we feel that this
The proposed regulations stated
adequate resources are available for
is best left to the applicant at the pre-
that the applicant's written citizen
repayment.
sent time since local conditions vary
participation plan had to be followed
The substantive changes in this sec-
and steps which may be workable and
beginning with the preparation of the
tion are as follows: A provision has
effective for some could be damaging
first application to be submitted to
been added, stating that where a pro-
to others. Nor did we feel that we
HUD on or after the effective date of
ject consisting of several activities
could prohibit displacement entirely,
the regulations. Many comments were
does not principally benefit low- and
made that a longer lead time was
since in many cases that would pre-
moderate-income persons, but a par-
vent neighborhood revitalization ac-
needed in which to prepare the plan,
ticular activity does, the applicant
particularly since another provision
tivities. Rather than adopting these
requires citizen involvement in the
may consider credit that activity as a
recommendations, the Department
plan's development. To help ensure
low- and moderate-income benefit.
will rely on monitoring of programs
the adoption of well-devised plans, the
This is intended to encourage pro-
and working directly with local gov-
final rule states that the plan shall go
gramming for such persons. Finally, a
ernments to assure that programs are
into effect no later than August 1,
provision has been added that the
carried out in a manner which mini-
1978.
nature and result of a project will de-
mizes hardships to lower income per-
Many commenters recommended re-
termine whether a project benefits
sons, and assists them to remain in ex-
quiring submission of the plan to HUD
low- and moderate-income persons, not
isting neighborhoods, if that is what
for review. After careful consideration,
simply geographic location. This is to
they prefer.
it was decided that submission of citi-
assure attention to the purpose and
substantive effect on such persons.
CITIZEN PARTICIPATION
zen participation plans by all commu-
nities should not be required, princi-
MITIGATING ADVERSE EFFECTS
As with to the provisions on pro-
pally because HUD does not have suf-
gram benefit to low- and moderate-
ficient staff to review adequately all of
Numerous comments were made ex-
income persons, the proposed citizen
the thousands of plans. It is felt that
pressing concern about anticipated dis-
participation provisions received ex-
HUD's limited staff resources can be
placement as a result of block grant
tensive comment from local govern-
used more effectively in resolving com-
funded activities and recommending
ments, public interest groups, and in-
plaints and findings regarding citizen
stronger provisions. A number of com-
dividuals. Again, there was a clear de-
participation.
menters recommended that HUD re-
marcation between the comments of
quire a specific relocation plan to be
§ 570.303(C)-STANDARDS OF
local government officials and their
submitted by each applicant. Others
PARTICIPATION
associations on one hand, and the
recommended that HUD prescribe the
comments of legal aid societies, neigh-
A large number of public interest
types of actions applicants would have
borhood organizations, civil rights or-
groups recommended that citizen par-
to take to mitigate adverse effects, for
ganizations, and other public interest
ticipation structures be required at
example, instituting rent controls in
groups on the other. In general, the
both the neighborhood and communi-
areas where block grant funds were
former groups objected to the pro-
ty-wide levels. The proposed regula-
used for rehabilitation of rental prop-
posed rule, primarily due to the in-
tions called for a citizen participation
erties. Some felt that the rules should
creased level of detail of the require-
process at both levels. The term "pro-
prohibit displacement, not simply re-
ments and the additional administra-
cess" has been retained in the final
quire that the effects of such displace-
tive expense which would be involved
rule in recognition of the diverse size
ment be mitigated. On the other hand,
in implementing them. In contrast,
and political traditions of program ap-
some commenters felt that this provi-
the public interest groups generally
plicants. The inflexibility of requiring
sion worked against spatial deconcen-
supported the rule as a marked im-
all communities to established formal
tration objectives, since it appeared to
provement over previous regulations,
citizen participation structures, re-
require that persons stay in the same
but many wanted it strengthened.
gardless of the effectiveness of exist-
neighborhood in all cases.
Comments made on the specific pro-
ing arrangements, was also considered.
The Department is most-concerned
visions, and the changes made in re-
We believe that the exact form of the
about the problems of displacement of
sponse to those comments are as fol-
citizen participation process is not
lower income persons as a result of
lows:
critical; what is important is that the
neighborhood change, and is consider-
process meet-prescribed standards.
ing what additional programs and poli-
§ 570.303(a)-GENERAL
Many smaller communities com-
cies are required to deal with this.
Nevertheless, we concluded that it
Several commenters expressed con-
plained that a two tier process of par-
ticipation (i.e., communitywide and
would not be appropriate or effective
cern that the regulations create expec-
neighborhood) would be burdensome
to make these rules more restrictive.
tations among citizens that they can
and of no value in smaller communi-
Our experience in predecessor categor-
restrict the local government's author-
ties. They pointed out that the small
ical grant-in-aid programs was that
ity over the program, while the statute
size of the community ensures the
specific relocation plans did not pre-
expressly reserves that authority. In
communitywide process will be effec:
vent displacement nor assure that re-
order to emphasize that citizens must
tive in informing residents about the
location was carried out in a humane
be afforded an opportunity to provide
program and providing them the op-
fashion due to:
advice to the local government regard-
portunity to become involved. In re-
(1) The time that elapsed between
ing the program, but they do not have
sponse to these comments, the final
development of the plans and actual
the power under these regulations to
rule requires only a communitywide
displacement;
veto the elected government's deci-
process for applicants with popula-
(2) The difficulty of controlling relo-
sions, the first sentence of paragraph
tions under 50,000.
cation workload and provision of new
570.303(a) has been revised to state
A large number of comments were
housing resources; and
that the applicant shall provide citi-
received regarding the specific stan-
(3) Other factors.
zens with an adequate opportunity to
dards of participation enumerated in
participate "In an advisory role" in
paragraph (c). As a result of those
Moreover, the context of a block grant
planning, implementing, and assessing
comments, four changes have been
program, including a statutory 75-day
the program.
made. First, the standards in
FEDERAL REGISTER, VOL 43, NO. 41-WEDNESDAY, MARCH 1, 1978
RULES AND REGULATIONS
8455
§ 570.303(c)(1)(ii)
and
citizens in developing a written plan.
vision in the proposed regulations
§ 570.303(c)(1)(vi) of the proposed
With regard to the other objection, no
flatly requiring written responses to
rules have been combined and placed
community should have to start all
citizen complaints within 15 working
in § 570.303(c)(2). This has been done
over again in developing a citizen par-
days provided insufficient time in
to make it clearer that applicants are
ticipation process; while most commu-
which to prepare responsive answers
not required to establish citizen advi-
nities will have to modify their exist-
to complex complaints. We agree more
sory committees, though they may
ing processes by some degree, these
flexibility is needed and, therefore,
choose to do so. Second, the segments
regulations provide wide latitude with
the final rule provides that the appli-
of the population which must be in-
regard to the form of the citizen par-
cant shall make "every reasonable
volved in the citizen participation pro-
ticipation process and, therefore,
effort" to provide written responses
cess have been expanded to include
should accommodate existing forms of
within 15 working days.
the business community and civic
citizen involvement.
groups who are concerned about the
Several commenters requested clari-
§ 570.303(h)-TECHNICAL ASSISTANCE
program. These were added in recogni-
fication as to what is meant by citizen
tion of the important roles business
involvement In program implementa-
Numerous local governments object-
tion. In response, subparagraph (2)
ed to the proposed technical assistance
and civic groups play in community
has been revised to state that, at a
provisions. They- objected to losing
development. Third, "substantial" rep-
minimum, this includes involvement of
control over determining the amount
resentation of low- and moderate-
citizens in an advisory role in policy
of money to be spent on technical as-
income citizens and members of mi-
decisions regarding program imple-
sistance, the persons to provide the as-
nority groups on citizen advisory com-
mentation. An example is citizen
sistance, and the groups to receive it.
mittees the applicant chooses to estab-
advice on the degree of subsidy to be
On the other hand, public interest
lish or recognize has been substituted
provided in connection with rehabilita-
groups strongly supported the techni-
for "adequate" representation of such
tion loans to families in different
cal assistance provisions. After careful
persons to emphasize the importance
income ranges. Day-to-day operational
consideration of all comments, the
of close coordination between the ap-
decisions are not included in the cate-
rule was revised to provide that the
plicant and the intended primary
gory of policy decisions. This subpara-
level and type of assistance shall be
beneficiaries of the program. Finally,
graph also suggests other roles citizens
determined by the applicant. It was
$ 570.303(c)(1)(iii) of the proposed
may play in program implementation.
also revised to provide that technical
rules has been revised in the final rule
Subparagraph (3), which has been
assistance "should" be provided by
570.303(c)(3)) to state that the appli-
renamed "Assessment of perfor-
specialists jointly selected by the ap-
cant shall make reasonable efforts to
mance," has been revised to more
plicant and the organizations and
ensure continuity of involvement by
closely reflect new statutory intent. A
groups assisted. Such joint selection is
citizens or citizen organizations
new provision has been added regard-
not mandatory.
throughout all stages of the program.
ing the handling of citizen comments
The proposed rule said there shall be
on the applicant's community develop-
$570.303(1)-ADEQUATE INFORMATION
continuity of participation by specific
ment performance. The provision
A number of public interest groups
citizen representatives. This change
states that the applicant shall include
recommended that applicants be re-
was made because it is not our Intent
in Its annual performance report
quired to publish line item reports of
to encourage applicants to treat cer-
coples of comments submitted by citi-
planned activities 60 days prior to
tain citizens preferentially, which is
zens regarding the applicant's commu-
final public hearings on the applica-
the interpretation several commenters
nity development performance, the ap-
tion. While this proposal was not
placed on the previous language.
plicant's assessment of such com-
adopted, new subparagraph (4) has
Rather, it is out intent to foster the
ments, and a summary of any actions
been added which requires applicants
high quality of citizen involvement
taken in response to the comments re-
ceived. Submission of the citizen com-
to make copies of the proposed appli-
which can only occur when the same
cation, as well as copies of the citizen
citizens or citizen organizations
ments are required by the statute.
remain involved in the process
Submission of the other two items are
participation plan, the approved appli-
cation, and the annual performance
throughout all stages of the program,
needed to assist HUD in evaluating
report, available at locations conve-
from initial planning through assess-
the citizen comments as part of the
overall assessment of the applicant's
niently located for persons affected by
ment of performance.
the program and accessible to the
performance. Where appropriate, this
handicapped.
§ 570.303(d)-SCOPE OF PARTICIPATION
additional information in the annual
performance report will trigger more
Many commenters objected to the
A number of local government offi-
detailed monitoring of the applicant's
provision in the proposed rule that
cials objected to the requirement in
performance.
copies of a wide range of program re-
the second sentence of this paragraph
cords and information be put on dis-
that citizens must be involved in the
§ 570.303(f)-CONSIDERATION OF
play in one or more locations reason-
-
development of the citizen participa-
OBJECTIONS TO APPLICATIONS
ably accessible to persons affected by
tion plans. Some objected because
the program. They were concerned
The material in this paragraph was
they felt it was a contradiction in
with the cost involved in putting all
contained in paragraph 570.309(b) of
terms to say that citizens should be in-
the material on display and keeping it
the proposed regulations. It has been
updated, and they questioned the ad-
volved in planning a process to involve
moved because it deals with an impor-
citizens. Others objected on the
vantage to be gained. In response, the
tant element of citizen participation.
grounds that the requirement implies
rule has been changed to require
One minor change has been made. In
copies of the documents of most inter-
that communities have to start all
order to better ensure that citizen ob-
est to citizens (i.e., the citizen partici-
over again in developing a citizen par-
jections will be considered during the
pation plan, the proposed and ap-
ticipation process, thereby ignoring
application review period, HUD will
proved applications, and the annual
processes developed locally over the
not approve an application until at
performance report) be placed at loca-
last three years. We disagree with
least 45 days after its receipt. Previ-
tions convenient to persons affected
these conclusions. While some entitle-
ously, the minimum review period was
by the program, but that all other doc-
ment communities do not presently
30 days.
uments relevant to the program be
have written citizen participation
plans, all have existing citizen partici-
§ 570.303(g)-COMPLAINTS
made available for citizen review upon
request at the applicant's office (e.g.,
pation mechanisms of one type or an-
Many comments from local govern-
City Hall) during normal working
other. These can be used to involve
ments expressed concern that the pro-
hours.
FEDERAL REGISTER, VOL 43, NO. 41-WEDNESDAY, MARCH 1, 1978
8456
RULES AND REGULATIONS
The material in subparagraph (3) on
local governments on the high cost
and many commenters, including local
public availability of the application
that would be involved in complying
officials as well as public interest
was contained in paragraph 570.309(a)
with the proposed rule. The final rule
groups, expressed the view that these
of the proposed regulations. It has
requires publication of the notice in
provisions would encourage more ef-
been moved because of its relevance to
the nonlegal section of newspapers of
fective programing. However, numer-
the citizen participation process. The
general circulation, including minority
ous local officials expressed concern
previous requirement for publication
and non-English language newspapers
that this would greatly increase the
of a notice stating the.application has
of general circulation where they
paperwork requirements and result in
been submitted to the A-95 clearing-
exist. While the rule no longer re-
a boon to consultants. These com-
house and is available to interested
quires publication of the notice in
ments were considered carefully and
parties upon request, has been deleted.
neighborhood newspapers serving low-
all proposed requirements reviewed to
That notice is no longer needed in
and moderate-income persons, appli-
assure that those retained served a
light of the new requirement for a
cants are required to make reasonable
positive purpose. These provisions do
public hearing prior to action by the
efforts to provide the notices, in the
not require lengthy statements pre-
local governing body authorizing the
form of press releases, to those news-
sented in technical terms. They do re-
submission of the application to A-95
papers. The information required to
quire a concise but clear and explicit
clearinghouses.
be placed in the notice has been short-
statement of the applicant's housing
Numerous local governments object-
ened to include the date, time; place,
and development strategy that is com-
ed to the provisions in the proposed
and procedures of the hearings, and
prehensible both to citizens and HUD
regulations on meetings. Many
the topics to be considered.
and that is relevant to the needs of
thought It was unreasonable to hold
the applicant.
applicants responsible for assuring
$570.303(k)-BILINGUAL
The other major concern about this
citizen organizations hold public meet-
Many. local government officials
section as a whole was about the
ings. Some questioned the need for
questioned whether the benefit to be
timing of implementation, and coordi-
minutes or summaries of meetings
derived from translating major pro-
nation with the Housing Assistance
held to provide information and re-
gram documents justified the expense.
Plan. The effective date of these re-
spond to questions about the program.
Others were concerned with the ex-
To keep costs down, the final rule pro-
quirements has accordingly been
vides that "summaries of basic infof-
changed to August 1, 1978, which is
pense involved in obtaining the min-
mation" rather than "major docu-
the date the new three year housing
utes or summaries. On the other hand,
ments" be produced for non-English
program aspect of the Housing Assis-
citizen groups favor forums at which
speaking persons. This will still pro-
tance' Plan requirements will become
information about the program is pro-
vided and where questions can be
vide non-English speaking citizens
effective as well. The effect of this
asked. After considering the full range
with information about the program
change is the entitlement grant recipi-
of comments, It was decided to delete
and how it affects them, but does not
ents will apply for fiscal year 1978
the requirement on meetings and to
require that all regulations, forms, and
funds on current forms and under cur-
revise the paragraph on public hear-
other major documents be translated
rent planning requirements, except as
to other languages.
specifically modified. These localities
ings, to provide for responses to citizen
thus will have sufficient lead time to
proposals and questions at the hear-
570.303(1)-CONTINGENCY AND LOCAL
implement the new requirements in an
ings. The provisions in the final rule
OPTION ACTIVITIES
orderly fashion, in coordination with
on providing adequate information to
citizens, together with the answering
This paragraph has been expanded
the Housing Assistance Plan, and to
of citizen questions at public hearings,
to cover citizen participation in the se-
develop meaningful three-year plans
will provide citizens the opportunity to
lection of local option activities. While
in full consultation with citizens. Con-
paragraph (d) on scope of participa-
sistent with this, the title of this sec-
become informed about the program.
tion already states that citizens shall
tion has been changed to "Community
570.303(j)-PUBLIC HEARINGS
be involved in subsequent amendments
Development and Housing Plan," and
A number of commenters noted that
and other changes to the application,
the linkage between housing and com-
it apparently was not clear that "other
munity development is emphasized
the Act does not require public hear-
changes" was intended to include the
throughout.
ings on program progress and perfor-
selection of local option activities. The
The other major issues that were
mance, but only to obtain the views of
citizens on community development
expansion of this paragraph now clari-
raised and the actions taken are as fol-
and housing needs. While that is true,
fies that citizens must be involved in
lows:
we believe it is consistent with the Act
selecting local option activities.
Regarding the summary of commu-
nity development and housing needs,
and reasonable to require the holding
570.303(m)-PROGRAM AMENDMENTS
many local officials stated that the re-
of public hearings on performance.
quirement to describe the needs of all
The Act requires citizens be encour-
This new paragraph has been added
neighborhoods having significant con-
aged to submit views and proposals,
to emphasize that citizen participation
centrations of low- and moderate-
and that they be provided the oppor-
is required with respect to program
income persons was onerous, particu-
tunity to participate in developing the
amendments. It provides that where
larly for cities having many such
application, that they be provided the
prior HUD approval of the amend-
areas. This requirement has according-
opportunity to submit comments on
ment is required, as specified in
ly been deleted.
the applicant's performance In order
§ 570.312, public hearings must be held
Various public interest groups con-
for citizens to participate intelligently
on the amendment. All other amend-
cerned with the needs of lower-income
in developing the application, includ-
ments, except those Involving disaster
persons recommended that the needs
ing submitting proposals for activities,
activities, also require citizen partici-
of low-income and moderate-income
and to intelligently comment on the
pation, but the specific nature of the
persons be described separately. This
applicant's performance, they must be
participation Is left to the discretion of
was not adopted because there is no
afforded the opportunity to find out
the community.
national pattern of neglect of the
how well previously approved activi-
ties are doing.
COMMUNITY DEVELOPMENT AND HOUSING
needs of low-income persons in favor
Subparagraph (3) on notices of
PLAN
of moderate-income persons, and it
was therefore concluded that an addi-
public hearings has been revised in re-
Comments on the new application
tional application requirement was un-
sponse to numerous comments from
requirements were generally favorable
warranted. A provision was added that
FEDERAL REGISTER, VOL 43, NO. 41-WEDNESDAY, MARCH 1, 1978
RULES AND REGULATIONS
8457
applicants shall describe any special
(2) It constitutes a more reasonable
control in order to facilitate the provi-
needs of lower-income minority group
period to evaluate whether programs
sion of assisted housing, comments
members in response to a number of
benefit low- and moderate-income per-
from cities indicated their concern
comments on that point.
sons;
that HUD would not provide sufficient
With regard to the comprehensive
(3) It will substantially reduce the
funds for them to meet all of the goals
strategy, there were few specific com-
paperwork required on an annual
established in those HAPs and they
ments. The changes that have been
basis.
cite past experience under the section
made, and the reasons, are:
With regard to responsiveness to
8 program as the basis for their con-
The section has been reorganized to
citizens, the three-year plans are re-
cern. Because of the misconceptions
state specific requirements in a more
quired to be developed In consultation
surrounding these sections, we have
logical fashion. It now calls for a com-
with citizens, and improved longer
made several changes. Responsibility
munitywide component in which the
range planning would make citizen in-
of the applicant has been clarified by
applicant describes its general develop-
volvement more meaningful. In addi-
removing the citation on the use of
ment strategy and priorities for the
tion, applicants may amend programs
public mechanisms when the private
use of funds. The neighborhood revi-
where necessary.
sector does not provide assisted hous-
talization strategy accordingly is limit-
The map requirements have been re-
ing. This was not Intended to require
ed to projects which have a neighbor-
vised to conform to other changes. In
hood focus, namely, plans for Neigh-
applicants to devote all, or a specified
response to numerous comments, they
borhood Strategy Areas, and plans for
amount of, their grant to housing as-
have also been changed to indicate
other neighborhood improvement ef-
sistance. Nor was it intended that a
that information need not be dis-
forts. The community facilities and
community would be exempt from the
played according to census tract
public improvements strategy has
provisions if insufficient Federal funds
boundaries if another method of pre-
been eliminated since it overlapped
were available. It was intended that a
sentation is available and better de-
the other requirements; plans for such
community would initially take those
scribes the community.
facilities are to be contained in the
actions which would assist the private
neighborhood revitalization strategy,
ANNUAL COMMUNITY DEVELOPMENT
sector in providing the housing, in-
where appropriate, or the commun-
PROGRAM
cluding but not limited to provision of
itywide strategy.
housing sites. At the point at which
The housing component has been
The changes in this section are to
the private sector did not respond to
changed SO that It is a comprehensive
conform to other changes in this sub-
available resources, it would be expect-
statement of the community's overall
part and to the application forms
ed that the community would then
housing strategy, both assisted and
being developed. Added requirements
assume that responsiblity. In order to
non-assisted. The strategy includes the
are a general project description and
clarify this intent, we have followed
Housing Assistance Plan. In addition,
anticipated accomplishments.
the recommendations of several com-
it includes all citywide efforts to foster
HOUSING ASSISTANCE PLAN
menters that a list of sample actions
housing maintenance and improve-
be included. These actions are refer-
ments and increase housing opportuni-
The proposed regulations received
enced in this section, and they are set
ties, including regulatory actions and
comments from local governments,
forth in § 570.306(b)(3)(III).
fair housing actions previously includ-
State and areawide planning agencies,
Additionally, the section on the sub-
ed under neighborhood revitalization.
public interest groups, and Individuals.
mission of HAPs prior to August 1,
The plan to mitigate adverse effects of
Three sections of the proposal re-
1978 has been rewritten to further
community development activities on
celved particular comment: completion
define the time periods covered by the
low- and moderate-income persons has
of the 1976 three year goal, minimum
annual housing action program, to
also been moved here in response to
percentage goals, and the establish-
provide consistency with 24 CFR 891,
comments that such effects may result
ment to critieria for determining the
Review of Applications for Housing
not only from neighborhood revitaliza-
adequacy of rehabilitation. Comments
Assistance; Allocation of Housing As-
tion and that this requirement should
and changes are detailed below.
sistance Funds and to clarify that
therefore apply to all programs.
The economic development strategy
communities are required to address
GENERAL PROVISIONS
is no longer limited to distressed cities
proportionality by household type
since others may also carry out eco-
Several cities expressed concern that
only. In addition this section clarifies
nomic development activities with
spatial deconcentration efforts were
that applicants are required also to
block grant. funds. A provision has
beyond their control and impossible to
identify general locations for new con-
been added to include discussion of
achieve on a local level. They further
struction and substantial rehabilita-
the needs of identifiable population
commented that providing opportuni-
tion.
groups experiencing significant unem-
ties for persons displaced as a result of
activities precipitated by a HAP to re-
HOUSING ASSISTANCE PLAN CONTENT
ployment or underemployment and to
describe any job training to be offered
locate in their immediate neighbor-
HOUSING CONDITIONS
such persons. Projects which benefit
hoods was contrary to the concept of
such persons are most appropriate in
spatial deconcentration
Two comments requested that va-
alleviating economic distress and
The Department emphasizes that
cancy rates be required by unit sizes,
should be emphasized.
the HAP should serve to promote spa-
and by rent levels. While applicants
Regarding the three-year activity
tial deconcentration by providing the
are asked to evaluate the vacant units
summary, a number of local govern-
opportunity for lower-Income house-
in their communities in order to assess
ments objected to the requirement to
holds to choose housing outside areas
applicability of available housing pro-
specify planned activities and funding
of concentrations of lower-income per-
grams to their needs, such evaluation
levels in advance as they felt it would
sons but, In no way, to infringe upon a
is conducted from the point of view of
be difficult and limit local flexibility
household's choice to remain in their
general knowledge about the commu-
and ability to respond promptly to citi-
neighborhood even though it may be 2
nity. It does not require specific statis-
zen requests. These comments were
lower-Income area.
tical data, cross tabulated by tenure,
considered carefully and it was con-
While public interest groups basical-
size, rent level, and condition as would
cluded that these requirements should
ly were pleased with the provisions re-
be required if such information were
be retained for the following reasons:
quiring applicants to continue to ad-
requested in the presentation on con-
(1) This would provide strong incen-
dress needs Identified in prior HAPs
ditions. Therefore, these requests have
tive for longer range planning;
and to take all actions within their
been rejected.
FEDERAL REGISTER, VOL 43, NO. 41-WEDNESDAY, MARCH 1, 1978
8458
RULES AND REGULATIONS
HOUSING ASSISTANCE NEEDS
be required to be used by all communi-
tions in Its community. Actions are re-
Several public Interest groups re-
ties within the jurisdiction of the APO
quired to be cited whenever past per-
quested that both housing assistance
receiving approval of an AHOP.
formance or anticipated difficulties
needs and housing assistance goals be
The general tenor of response to the
warrant, and whenever special needs
presented separately for low- (or very
revised ETR formula was favorable
and/or conditions are cited.
low-) income households. This request
with only three commenters suggest-
The requirement to identify general
has not been reflected in the attached
ing that an employment factor be in-
locations separately by household type
revisions. First, there has been no evi-
cluded as an addition to the formula,
has been removed from the regula-
dence provided that very low-income
and one commenter suggesting reten-
tions in response to numerous com-
households have not received housing
tion of the current methodology. The
ments, but most particularly because
assistance where It has been provided
Department has decided to adopt the
general locations typically should not
for lower-income households. Second,
proposed simplified formula on the
be so small as to be appropriate exclu-
a primary vehicle for the provision of
basis that estimates derived address
sively for one household type only
assisted housing is the section 8 pro-
the broader concept of spatial decon-
gram which requires that at least 30
centration. Several commenters ques-
ANNUAL HOUSING ACTION PROGRAM
percent of all families assisted be very
tioned whether the revised formula
would permit a negative estimate of
Many commenters questioned the
low- (i.e.; low) income. Similarly, the
ETR. It is not possible to separate the
inclusion of a requirement for appli-
public housing program requires that
effects of potential outmigration when
cants to specify the housing assistance
at least 20 percent of the units in a
programs which it did not wish to uti-
project (placed under ACC after the
dealing with applicants on an individ-
lize. This requirement was intended to
1974 HCD Act) be occupied by very
ual basis; therefore, calculations which
be a conforming change to revisions to
low-income families.
result in a negative figure are to be re-
corded as a zero.
24 CFR 891. Inasmuch as these regula-
A phrase has been added to this sec-
tion to indicate that information on
Use of the revised ETR formula will
tions have yet to be published for com-
privately induced displacement is to be
become effective August 1, 1978.
ment, the paragraph has been elimi-
nated.
reported only when the information is
Finally, nonmetropolitan applicants
available. It should be noted, in re-
are required to present their best esti-
STANDARDS AND CRITERIA FOR APPROVAL
sponse to two comments, that dis-
mate of the number of lower-income
OF HAPS'.
placement figures are estimates and
households who reasonably could be
that the Department is aware that the
expected to reside in their community.
The issue that generated the largest
figures reported will not necessarily
If, based on available data, this esti-
volume of comment was the establish-
match exactly the number of house-
mate should reasonably be zero, then
ment of a minimal goal. Cities con-
holds eventually displaced. We expect
the applicant is permitted to record it
tended that the percentage was too ex-
only that the estimates reflect gener-
as such.
cessive because HUD would never be
ally available data and that they be
The commenters asked that the deri-
able to provide sufficient funds for ap-
considered in the planning process.
vation of step 5 in the formula be ex-
plicants to meet five percent of need
Several comments suggested that
plained. Simply, it is the result of fac-
per year. Public interest groups con-
the requirement that all communities
toring the equation used for the ETR
tended that the percentage was too
within the Jurisdiction of an Areawide
formula to solve for I = ETR.
low and should be increased. Others
Planning Organization (APO) use the
Several commenters suggested that
proposed elimination of a percentage
same data be eliminated.
no adjustment be made in the ETR
to be replaced with narrative descrip-
The
Department
formula in order to derive the esti-
tions of the relationship of goals to
encourages
areawide planning and is supportive of
mate of the number of households
needs and an emphasis on monitoring.
any process to strengthen It. The
who could reasonably be expected to
Concern was also expressed that relat-
Areawide Housing Opportunities Plan
reside. It must be understood that the
ing the percentage to a 20 year time
(AHOP) is a vehicle which allows com-
formula, without the adjustment, re-
frame was too restrictive and, did not
munities, through the APO, to plan
sults not in the number of households
allow for changes in an applicant's
for their jurisdictions in a coordinated
who reasonably could be expected to
needs.
manner and to assist HUD in the allo-
reside, but in the number of house-
The Department has decided to
cation of the Department's housing re-
holds which, statistically, should
retain a percentage relationship be-
sources.
reside. Without the adjustment, there
tween needs and goals but we have
In endorsement of this approach we
is an assumption that each household
modified it to reflect goals which
have not eliminated that requirement
which statistically should move, will
would meet at least 15 percent of need
but we have revised it to reflect that
move. This is an invalid assumption;
during each three year period and not
only applicants which are within the
therefore, based on information on
necessarily 5 percent each year. Also,
jurisdiction of an APO having an ap-
movement patterns, the Department
it should be noted that the goals are
proved AHOP will be required to use
has determined that the adjustment
related to the total need, and not to
the same data. Applicants within the
of one-third of the gross estimate is
the need for rental units, or new con-
jurisdiction of an APO not having an
reasonable.
struction units, alone.
approved AHOP are not required, but
Suggestions to incorporate adjust-
Because the percentage relationship
are encouraged to do so.
ments on a sliding scale were evaluat-
has been retained unless an applicant
All of section 570.306(b)(2)(ii)(A) has
ed and rejected on the basis of com-
can demonstrate that a goal of 15 per-
been moved forward to section
plexity and resultant inequality.
cent over three years is infeasible, the
570.306(b)(i)(A). This section was in-
paragraph on realistic goals has been
tended- to refer to the needs assess-
THREE YEAR HOUSING PROGRAM
removed to eliminate redundancy.
The final issue to elicit substantial
ment of not only households expected
As indicated in the discussion of gen-
to reside but to the assessment of
comment was the section on adequacy
eral provisions, we have included in
of rehabilitation. Response to this
households currently residing as well.
this section examples of the types of
The assessment of the number of
issue was received from all categories
actions HUD expects an applicant to
of commenters and was unanimous in
households Expected to Reside (ETR)
take to demonstrate that it is exercis-
requesting the elimination of local
is to be prepared for metropolitan
ing all means within its power to
codes as a criteria of satisfactory com-
areas using the methodology set forth
achieve the goals in its Housing Assis-
pletion of rehabilitation. Given the
in these regulations. Alternative meth-
tance Plan (HAP) and to address any
comments received, particularly those
odologies, if approved by HUD. would
special housing needs and/or condi-
citing probable prohibitive rehabilita-
FEDERAL REGISTER, VOL 43, NO. 41-WEDNESDAY, MARCH 1, 1978
RULES AND REGULATIONS
8459
tion costs because of stringent codes,
in accordance with HUD Handbook
prepare and implement 8. written citi-
the Department has accepted the rec-
1390.1. In addition, a Finding of Inap-
zen participation plan, part of which
ommendations and has chosen to use
plicability with respect to Inflation
provides for citizen involvement in the
only Section 8 Existing Housing Qual-
Impact has been prepared in accor-
planning process.
ity Standards as a criteria.
dance with Executive Order 11821.
(b) Triennial submission require-
Finally, $ 570.306(c)(2)(i) was consid-
Copies of the Findings are available
ments. Every third year. beginning
ered to be repetitive and was eliminat-
for inspection and copying during
with the first application submitted on
ed.
business hours in the Office of the
or after August 1. 1978, the applicant
Rules Docket Clerk, Room 5216, De-
must submit an application consisting
CERTIFICATIONS
partment of Housing and Urban De-
of the following:
velopment, 451 Seventh Street SW.,
Section 570.307(k) adds a certifica-
(1) Standard Form 424, Federal As-
Washington, D.C. 20410.
tion which provides that buildings and
sistance, prescribed by OMB Circular
Accordingly, 24 CFR Part 570 is
facilities, other than privately owned
No. A-102;
amended by revising Subpart D, and
residential structures, be accessible to
(2) Community Development and
by making other technical and con-
the handicapped.
Housing Plan as described in $ 570.304;
forming changes to reflect the revi-
(3) Annual Community Development
PUBLIC AVAILABILITY OF AND OBJECTIONS
sions.
Program as described in $ 570.305;
TO APPLICATIONS
I. The table of contents to Subpart
(4) Housing Assistance Plan as de-
D is revised to read as follows:
In response to comments, the rules
scribed in $ 570.306; and
previously contained in § 570.309 have
Subpert D-Entitiement Grants
(5) Certifications as described in
been transferred to the section on citi-
§ 570.307.
Sec.
(c) Annual submission requirements.
zen participation, and this section has
570.300 Outline of application require-
ments.
For each of the other years in a three
now been reserved.
570.301 Planning considerations.
year period the applicant must submit
HUD REVIEW AND APPROVAL OF
570.302 Program benefit to low- and mod-
an application consisting of the follow-
APPLICATIONS
erate-Income persons.
ing:
570.303 Citizen participation requirements.
(1) Standard Form 424;
The following changes have been
570.304 Community development and
(2) Annual Community Development
made: § 570.311(a)(1)(ii) has been re-
housing plan.
Program as described in $ 570.305;
vised to read that all required compo-
570.305 Annual community development
(3) Annual Housing Action Program
nent parts of the application are sub-
program.
mitted and properly completed. Sec-
570.306 Housing assistance program.
as described in § 570.306(b)(5); and
tion 570.311(c)(2)(iv) has been changed
570.307 Certificates.
(4) Certifications as described in
to include members of minority
570.308 Timing of application submission.
§ 570.307.
570.309 Public availability of and objec-
(d) Other application requirements.
groups.
tions to application (Reserved).
The applicant must also comply with
570.310 A-95 clearinghouse review and
AMENDMENTS
the following requirements when ap-
comment.
plying for an entitlement grant:
There was a considerable amount of
570.311 HUD review and approval of appli-
(1) Requirements on the timing of
comment that the currently effective
cation.
applications as set forth In § 570.308;
ten percent threshold for requiring
570.312 Amendments.
(2) Requirements on notifying State
submission of Community Develop-
AUTHORITY: Title I, Housing and Commu-
and areawide clearinghouses of the ap-
ment Program amendments to HUD
nity Development Act of 1974 (42 U.S.C.
plicant's intent to apply for Federal
should be retained, and this require-
5301, et seq.); Title I, Housing and Commu-
assistance, on submitting the applica-
ment has accordingly been restored.
nity Development Act of 1977 (Pub. L 95-
The rule, however, has been rewritten
128); and Sec. 7(d), Department of Housing
tion to clearinghouse for comment,
and Urban Development Act (42 U.S.C.
and on taking actions following
to improve its clarity.
3535(d)).
clearinghouse reviews, as described in
The Housing Assistance Plan amend-
§ 570.310.
ment requirement has been changed
II. Subpart D is revised to read as
for conformity to revised regulations
follows:
§ 570.301 Planning considerations.
to 24 CFR Part 891 to be issued.
Subport D-Entitlement Grants
(a) Comprehensive strategies. The
act requires that applicants have a
PERFORMANCE REPORT
§ 570.300 Outline of application require-
three-year plan for the use of block
Comments from local government
ments.
grant funds which demonstrates a
officials generally favored submission
This section briefly outlines the re-
comprehensive strategy for meeting
of the grantee performance report
quirements which must be met by the
identified community development
after the completion of the applicant's
applicant when applying for an enti-
and housing needs. The Act provides
program year. In contrast, comments
tlement grant and references other
descretion to local governments to de-
from civil rights organizations, citizen
sections containing more detailed in-
velop strategies appropriate to local
groups, and legal aid societies general-
formation on these requirements.
conditions and permits a wide choice
ly favored submission of the report
(2) Planning requirements. Require-
of projects and activities to carry out
prior to submission of the application,
ments that the applicant must meet in
those strategies. However, & compre-
so that it could be used in reviewing
planning its community development
hensive strategy shall include: (1) a
an applicant's past performance in
program are covered in the following
systematic assessment of the locality's
conjunction with review of the appli-
sections.
community development and housing
cation. The Department agrees with
(1) Section 570.301 describes general
needs and the resources available to
the timing favored by the latter
planning considerations;
meet those needs; (2) determination of
groups and, therefore, the proposed
(2) Section 570.302 describes the re-
the applicant's long- and short-term
rule requiring submission of the report
quirement that the applicant's com-
objectives and priorities for the use of
by the end of the eighth month in a
munity development program must be
funds; (3) development of a three-year
recipient's program year has been
planned and carried out so as to prin-
plan of activities designed to meet the
adopted.
cipally benefit persons having low- and
needs and objectives identified. This
OTHER INFORMATION: A Finding
moderate-Income; and
plan shall provide for undertaking
of Inapplicability with respect to Envi-
(3) Section 570.303 describes the re-
housing and community development
ronmental Impact has been prepared
quirement that the applicant must
activities in a coordinated and mutual-
FEDERAL REGISTER, VOL 43, NO. 41-WEDNESDAY, MARCH 1, 1978
8460
RULES AND REGULATIONS
ly supportive manner consistent with
gram. the activities which an applicant
CFR Part 58 relating to the updating
local and areawide development plan-
includes in such program (Including
of environmental clearances.
ning and national urban growth poli-
activities to be funded and Implement-
(5) The applicant may also obligate
cies. The requirements for the sum-
ed in more than one action year) shall
and spend local funds prior to approv-
mary of the three-year plan are stated
be grouped and deemed by the appli-
al of its application for the purpose of
in § 570.304.
cant to be a project, as defined In 24
completing activities previously ap-
(b) Coordination of programs. It is
CFR § 58.3. The environmental review
proved and assisted under the urban
recognized that different strategies
of such project should take into ac-
renewal program, the water and sewer
may be appropriate and effective in
count the relationship between compo-
facilities program. the neighborhood
dealing with different local needs and
nent activities, and the cumulative en-
facilities program. or the open space
conditions. However, the Act limits
vironmental effects of activities.
land program, described in § 570.1(b)
certain activities to areas in which
(d) Planning and implementing mul-
(1), (3), (4), and (6), respectively. After
block grant assisted physical develop-
tiyear projects. (1) An applicant may
approval of its application, the appli-
ment programs are being carried out
allocate funds in an application for
cant will be, reimbursed with funds
in a concentrated manner, for exam-
the payment of part of the cost of a
programmed in the application to
ple, public services pursuant to
multiyear project to be financed in in-
cover those costs, provided such local-
§ 570.201(e). Moreover, certain other
crements with funds becoming avail-
ly funded work was undertaken in
HUD programs are designed to focus
able in succeeding program years, pro-
compliance with the requirements of
on areas of concentrated community
vided the full scope and estimated cost
this Part. The environmental review
development activity, for example,
of the total project Is described in the
requirements of 24 CFR Part 58,
Urban Homesteading, and Section 8
first application in which grant funds
except the provisions of Subpart C of
Substantial Rehabilitation Special
are allocated for the project. This does
Part 58, must be complied with prior
Procedures pursuant to 24 CFR Part
not preclude use of subsequent year
to the incurring of any such costs to
881. Applicants are therefore encour-
entitlement funds to complete a pro-
be reimbursed by HUD; however, the
aged to designate appropriate areas in
Ject which was designed as a single
provisions of Subpart c of Part 58
which various programs can be carried
year proj- ect and whose cost exceeds
must be complied with prior to the re-
out in a concentrated and coordinated
initial estimates.
lease of funds by HUD.
manner. For purposes of these regula-
(2) The environmental assessment of
(e) Reimbursement for costs of plan-
tions such areas shall be designated as
a multiyear project, performed under
ning and environmental studies. Prior
Neighborhood Strategy Areas as de-
24 CFR Part 58, should encompass the
to approval of Its application. an appli-
fined in paragraph (c).
entire multiyear scope of activities.
cant may obligate and spend local
(c) Neighborhood strategy area. This
Upon certification that the applicant
funds for the purpose of environmen-
is an area which is selected by the ap-
has completed the environmental re-
tal assessments required by 24 CFR
plicant and designated in its three-
quirements for a multiyear project,
Part 58, for the planning and capacity
year Community Development and
HUD may Issue Its release of funds for
building purposes authorized by
Housing Plan for a program of concen-
the entire multiyear project. Such re-
§ 570.205 (a) and (b), and for the provi-
trated community development activi-
lease of funds shall be subject to the
sion of information and resources to
ties. For each Neighborhood Strategy
provisions of paragraphs (3) and (4) of
citizens pursuant to § 570.206(b). After
Area the applicant shall Include in its
this subsection.
approval of Its application, the appli-
Plan a comprehensive strategy for sta-
(3) Approval of each increment of a
cant will be reimbursed with funds
bilizing and upgrading the area which:
multiyear project is subject to the gen-
programmed In the application to
(1) Provides for a combination of
eral availability of grant funds, ade-
cover those costs, provided such local-
physical improvements, necessary
quate performance, and the submis-
ly funded activities were undertaken
public facilities and services, housing
sion of an acceptable application in
In compliance with the requirements
programs. private investment and citi-
each year in which grant funds are to
of this Part.
zen self-help activities appropriate to
be applied toward payment of project
the needs of the area;
cost. In those instances where the ap-
§ 570.302 Program benefit to low. and
(2) Coordinates public and private
plicant exhausts previously approved
moderate-income persons.
development efforts;
grant funds before the next increment
(a) Statutory Provisions. The hous-
(3) Provides sufficient resources to
is approved, the applicant may obli-
ing and Community Development Act
produce substantial long-term im-
gate and spend local funds to continue
states as its primary objective the de-
provements in the area within a rea-
the work and be reimbursed with
velopment of viable urban communi-
sonable period of time; in determining
funds approved for the next incre-
ties, by providing decent housing and
the size of the area the applicant shall
ment, provided the locally funded
a suitable living environment and ex-
take into account the severity of its
work was undertaken in compliance
panding economic opportunities, prin-
problems and the amount of resources
with the requirements of this Part.
cipally for persons of low- and moder-
to be provided so that this require-
(4) The continued authority of an
ate-income. The Act also requires the
ment can be met.
applicant to commit Title I funds to a
applicant to certify that its communi-
(4) Examples of Neighborhood Strat-
multiyear project or
to be reim-
ty development program has been de-
egy Area programs include: a residen-
bursed for the expenditure of local
veloped so as to give maximum feasi-
tial rehabilitation program which pro-
funds for costs of such project, after
ble priority to activities which will
vides loans and grants to property
completion of environmental require-
benefit low- and moderate-income
owners in a designated area in which
ments and HUD release of funds, shall
families, or aid in the prevention or
street improvements, playgrounds, and
be subject to the continued relevance
elimination of slums or blight. It also
public services are also being provided;
and completeness of the environmen-
permits approval of activities which
and a redevelopment program which
tal assessment performed. In the event
the applicant certifies and the Secre-
includes systematic demolition of sub-
of any significant or substantial
tary determines are designed to meet
standard structures and assemblage of
change In the nature, magnitude or
other community development needs
sites for new construction in a particu-
extent of the project, or any signifi-
having a particular urgency. Consis-
lar area in conjunction with site im-
cant or substantial change in the envi-
tent with the statutory objectives, the
provements and facilities necessary to
ronment affecting the project, the ap-
following rules govern the expenditure
attract new development.
plicant shall, prior to any further com-
of program funds to insure that the
(5) In order for a program to qualify
mitment of Title I funds to the pro-
program principally benefits low- and
as a Neighborhood Strategy Area pro-
ject, complete the requirements of 24
moderate-income persons.
FEDERAL REGISTER, VOL 43, NO. 41-WEDNESDAY, MARCH 1, 1978
RULES AND REGULATIONS
8461
(b) General Requirements.
moderate-income persons. In making
projects must not be unreasonable in
(1) All projects and activities must
this review, HUD shall consider the In-
relation to the low- and moderate-
either principally benefit low- and
formation in the applicant's three
income benefits to be provided. The
moderate-income persons, or aid in the
year community development and
housing or other facilities on which
prevention or elimination of slums and
housing plan, its annual Community
basis the project is justified must be
blight, or meet other community de-
Development Program, past expendi-
Included in the applicant's community
velopment needs having a particular
ture patterns in areas having concen-
development plan and there must be
urgency.
trations of lower Income persons, and
evidence acceptable to HUD that con-
(2) Each annual application for
other generally available data.
struction of the housing or other fa-
funds under this subpart must provide
(d) Projects which principally bene-
cilities will in fact be commenced
that the applicant's program as a
fit low- and moderate-income persons.
within the three year period covered
whole shall principally benefit low-
A project or activity will be considered
by the Plan.
and moderate-income persons.
to principally benefit low- and moder-
(5) A project which serves an area
(3) An application shall be presumed
ate-income persons If It Is designed to
with less than a majority of low- and
to principally benefit low- and moder-
meet identified needs of low- and mod-
moderate-income persons; where: (i)
ate-income persons, absent substantial
erate-income persons as described in
The applicant has no areas within its
evidence to the contrary, where not
the applicant's community develop-
jurisdiction where low- and moderate-
less than 75 percent of the program
ment plan and it meets one of the fol-
income persons constitute a majority,
funds to be available during the three
lowing standards:
or (ii) the applicant has so few such
year period covered by the applicant's
(1) The project has Income eligibility
areas that it is inappropriate to limit
community development and housing
requirements that limit the benefits of
the grant to projects in those areas;
plan shall be used for projects and ac-
the project to low- and moderate-
provided that: (A) the project serves
tivities which principally benefit low-
income persons.
areas having the largest proportion of
and moderate-income persons under
(2) The project does not have
low- and moderate-income residents in
the standards in paragraph (d) of this
Income eligibility requirements but
the locality; (B) the project is clearly
section. Applications submitted be-
the majority of the beneficiaries are
designed to meet identified needs of
tween May 1, 1978 and July 15, 1978,
low- and moderate-income persons.
lower income persons in those areas;
shall be presumed to principally bene-
The following are examples of projects
and (C) the project benefits such per-
fit low- and moderate-income persons
which meet this standard:
sons at least in proportion to their
if at least 75 percent of the program
(1) A neighborhood strategy area
share of the population of the areas
funds applied for shall be used for pro-
program or a public improvement ac-
served.
jects and activities which meet the
tivity which serves an area, delineated
(e) Projects which prevent or elimi-
standards in paragraph (d).
by the applicant, where the majority
nate slums or blight. The following
(4) The applicant shall maintain in
of the residents are low- and moder-
projects and activities will be consid-
its files the documentation on which
ate-income persons. Such an area may
ered to prevent or eliminate slums or
basis it determines that projects prin-
consist of a locally defined neighbor-
blight:
cipally benefit low- and moderate-
hood or planning district, one or more
(1) A project In an area which is a
income persons. Such documentation
census tracts, enumeration districts, or
slum, or a blighted, deteriorated, or
may include 701 planning studies, wel-
parts thereof; it need not be cotermi-
deteriorating area, as defined by State
fare and unemployement records, local
nous with census boundaries.
or local law, and in which the appli-
surveys, and similar generally avail-
(11) A project designed to attract or
cant undertakes a comprehensive pro-
able information. HUD will monitor
retain neighborhood commercial facili-
gram, as defined in 570.301(c), to
the applicant's performance to ensure
ties which provide essential services to
remedy the conditions which qualify
that the applicant's community devel-
residential areas which have a major-
the area as an urban renewal or simi-
opment program principally benefits
ity of low- and moderate-income resi-
lar area. In such cases. the applicant
low- and moderate-income persons.
dents.
may undertake any otherwise eligible
(5) In designing projects and select-
(iii) Economic development projects
activity necessary to accomplish its
ing areas in which to carry out activi-
which are designed to provide direct
strategy for upgrading the area. Be-
ties, the applicant shall address the
employment opportunities for perma-
cause State laws vary, HUD will recog-
needs of low- as well as moderate-
nent jobs, the majority of which will
nize those State or local laws which
income persons, given the nature and.
be for low- and moderate-income per-
authorize public actions for the pur-
relative severity of their needs, and
sons if the persons expected to be em-
pose of slum and blight prevention
shall include projects suitable to meet-
ployed are defined as low- and moder-
and elimination. It is not necessary
ing those needs.
ate-income prior to employment; it is
that an area be formally designated an
(c) Review Guidelines.
not necessary that the incomes of per-
urban renewal or similar area, but evi-
(1) An application which meets the
sons employed by economic develop-
dence supporting a local determina-
standard in paragraph (b)(3) will not
ment projects be low or moderate
tion that an area meets criteria for
be subject to further examination by
after the project is completed.
slums and blight must be maintained
HUD prior to funding with respect to
(iv) A senior center which is used
in the locality's records.
benefit to low- and moderate-income
principally by persons of low- and
(2) A project designed to eliminate
persons.
moderate-income.
detrimental conditions which are scat-
(2) An application which does not
(3) Removal of architectural barriers
tered or located outside slum or blight-
meet the standard in paragraph (b)(3)
pursuant to § 570.201(k); such projects
ed areas. Authorized activities are only
shall be subject to an examination by
may be assumed to principally benefit
those necessary to eliminate the spe-
HUD prior to funding to determine
low- and moderate-income persons in
cific conditions of blight or physical
whether the activities proposed are
the absence of substantial evidence to
decay, by acquisition of blighted struc-
plainly inappropriate to meeting the
the contrary.
tures, demolition, historic preserva-
needs of the applicant because of the
(4) A project which must be carried
tion, and relocation.
nature and severity of the needs of
out prior to or is an integral part of a
(3) Activities necessary to complete
low- and moderate-income persons in
project which will principally benefit
Federally assisted urban renewal pro-
relation to the general needs and con-
low- and moderate-income persons. An
jects which do not principally benefit
ditions of the applicant, and whether
example is the extension of water and
low- and moderate-income persons.
taken as a whole, the proposed pro-
sewer lines to permit construction of
(f) Projects designed to meet needs
gram principally benefits low- and
low-rent housing. The cost of such
having a particular urgency. These
FEDERAL REGISTER, VOL 43, NO. 41-WEDNESDAY, MARCH 1, 1978
8462
RULES AND REGULATIONS
are projects which the applicant certi-
persons, would be counted as such.
amount of activity is proposed or on-
fies and the Secretary determines are
Where such a program results in a
going. These processes shall meet the
designed to alleviate a serious and im-
change in the Income characteristics
following standards:
mediate threat to the health or wel-
of the area so that a majority of the
(1) All aspects of citizen participa-
fare of the community which is of
ultimate beneficiaries are higher
tion shall be conducted in an open
recent origin where the applicant is
income persons, the program would
manner, with freedom of access for all
unable to finance the projects on its
not be counted as principally benefit-
Interested persons;
own, and other sources of funding are
ting low- and moderate-income per-
(2) There shall be involvement of
not available. A condition will general-
sons.
low-and moderate-income persons,
ly be considered to be of recent origin
(h) Mitigating adverse effects.
members of minority groups, residents
if it developed or became critical
Where the program will result in
of areas where a significant amount of
within 18 months preceding the appli-
direct or indirect displacement or
activity is proposed or ongoing. the el-
cation for funds.
other hardships to low- and moderate-
derly, the handicapped, the business
(g) Determining benefits to low- and
income persons, the applicant shall
community, and civic groups who are
moderate-income persons.
take appropriate steps to minimize
concerned about the program. Where
(1) In determining the amount of
such displacement or hardships. Sec-
the applicant chooses to establish, or
program funds which principally bene-
tion 570.304(b)(2) requires the appli-
has established, a general commun-
fit low- and moderate-income persons,
cant to include in its community devel-
itywide citizen advisory committee,
the costs of administration and plan-
opment plan the actions it will take to
there shall be substantial representa-
ning cited in § 570.205 may be excluded
assist low- and moderate-income per-
tion of low- and moderate-income citi-
as they will generally be assumed to
sons to remain in existing locations
zens and members of minority groups.
benefit low- and moderate-income per-
when they prefer to do so, and to miti-
Similarly, where the applicant chooses
sons in the same proportion as the re-
gate adverse effects on such persons as
to establish or recognize neighborhood
mainder of the-grant.
a result of neighborhood revitalization
advisory committees in areas where
(2) The amount of any program
activities.
low- and moderate-income persons or
funds to be applied to the repayment
members of minority groups reside,
of urban renewal temporary loans may
§ 570.303 Citizen participation require-
there shall be substantial representa-
also be excluded.
ments.
tion of such persons;
(3) Funds budgeted for contingencies
(a) General The applicant shall pro-
(3) The applicant shall make reason-
and/or local option activities may also
vide citizens with an adequate oppor-
able efforts to ensure continuity of in-
be excluded; such funds shall be ex-
tunity to participate in an advisory
volvement of citizens or citizen organi-
pended in such a manner that the pro-
role in planning, implementing, and
zations throughout all stages of the
gram will continue to meet the re-
assessing the program. In so doing, the
program;
quirements of this section.
applicant shall also provide adequate
(4) Citizens shall be provided ade-
(4) If a project or activity meets the
information to citizens, hold public
quate and timely information, so as to
definition in paragraph (d) of princi-
hearings to obtain views of citizens,
enable them to be meaningfully in-
pally benefitting low- and moderate-
and provide citizens an opportunity to
volved In important decisions at var-
income persons, the cost of the project
comment on the applicant's communi-
lous stages of the program;
or activity may be determined to bene-
ty development performance. Nothing
(5) Citizens, particularly low- and
fit low- and moderate-income persons.
in these requirements, however, shall
moderate-income persons and resi-
This includes projects to prevent or
be construed to restrict the responsi-
dents of blighted neighborhoods, shall
eliminate slums and blight and pro-
bility and authority of the applicant
be encouraged to submit their views
jects designed to meet a need having a
for the development of the application
and proposals regarding the Commu-
particular urgency where such pro-
and the execution of its Community
nity Development Program:
jects principally benefit low- and mod-
Development Program.
(d) Scope of participation. The ap-
erate-income persons under paragraph
(b) Written citizen participation
plicant shall provided for the continu-
(d).
plan. The applicant shall prepare a
ity of citizen participation throughout
(5) If a project is designed to prevent
written citizen participation plan that
all stages of the program. This in-
or eliminate slums or blight or to meet
provides procedures by which each of
cludes citizen involvement in the de-
needs having a particular urgency and
the requirements set forth in the fol-
velopment of the citizen participation
does not also principally benefit low-
lowing paragraphs will be implement-
plan, as well as involvement in the fol-
and moderate-income persons under
ed. The plan shall go into effect no
lowing areas:
the provisions in paragraph (d), a par-
later than August 1, 1978. The provi-
(1) Application development. Citi-
ticular activity (such as a rehabilita-
sions concerning citizen involvement
zens shall be involved in development
tion loan program with income limits)
in implementing and assessing the pro-
of the annual application, including:
within that project may nevertheless
gram apply to activities that are on-
(i) The three-year community devel-
be counted in determining the amount
going as of that date, as well as to all
opment plan, including the identifica-
of program funds which benefit low-
future activities. The plan shall
tion of commmunity development and
and moderate-income persons.
remain in effect until all activities as-
housing needs, and the setting of pri-
(6) In determining whether a pro-
sisted under this Part are completed,
orities;
posed project will actually benefit low-
or until it is superseded by a new plan.
(ii) The Housing Assistance Plan, in-
and moderate-income persons, the
Upon request by HUD, the plan shall
cluding the annual housing action pro-
nature of the needs identified, the re-
be submitted to HUD to aid in the
gram;
lationship of the project to meeting
handling of complaints and to facili-
(iii) The annual Community Devel-
those needs, and the net effect of the
tate monitoring and evaluation.
opment Program; and
completed project shall be considered.
(c) Standards of participation. The
(iv) Subsequent amendments and
Thus, mere location of an activity in a
applicant shall provide a process of
other changes to the above, in accor-
low- or moderate-income area does not
citizen participation at the commun-
dance with § 570.312.
conclusively demonstrate that a pro-
itywide level with regard to the overall
(2) Program implementation. The
ject or activity benefits lower income
application and program. Applicants
roles citizens will play in program im-
persons. A neighborhood revitalization
with populations of 50,000 or more
plementation shall be indicated in the
effort which creates improved housing
shall also provide a process of citizen
citizen participation plan. At a mini-
and better living environment, princi-
participation at the neighborhood
mum, this shall include involvement of
pally for low- and moderate-income
level in areas where a significant
citizens in an advisory role in policy
FEDERAL REGISTER, VOL 43, NO. 41-WEDNESDAY, MARCH 1, 1978
RULES AND REGULATIONS
8463
decisions regarding program imple-
applicable law; or the application pro-
the kind of activities previously
mentation. It may also include self-
poses activities which are otherwise in-
funded in the community,
help activities carried out by citizen
eligible under this Part.
(iii) The processes to be followed in
groups and direct program operations
Such objections should include both
drawing up and approving the local
conducted by neighborhood-based or-
an identification of the requirements
application and the schedule of meet-
ganizations and other eligible nonprof-
not met and, in the case of objections
ings and hearings,
it entities.
made on the grounds that the descrip-
(iv) The role of citizens in the pro-
(3) Assessment of performance. Citi-
tion of needs and objectives Is plainly
gram, as provided under this section,
zens and citizen organizations shall be
inconsistent with significant, generally
(v) A summary of other important
given the opportunity to assess and
available facts and data, the data upon
program requirements.
submit comments on all aspects of the
which the persons rely. Although
(2) The applicant shall provide for
applicant's community development
HUD will consider objections submit-
full and timely disclosure of Its pro-
performance, including the perfor-
ted at any time, such objections
gram records and Information consis-
mance of the applicant's grantees and
should be submitted within 30 days of
tent with applicable State and local
contractors. They shall also be given
the publication of the notice that the
laws regarding personal privacy and
the opportunity to assess projects and
application has been submitted to
obligations of confidentiality. Docu-
activities to determine whether objec-
HUD, as described in paragraph (1)(3)
ments relevant to the program shall
tives are achieved. The methods by
below. In order to ensure that objec-
be made available at the applicant's
which such opportunities shall be
tions submitted will be considered
office during normal working hours
made available shall be indicated in
during the review process, HUD will
for citizen review upon request (either
the citizen participation plan. The ap-
not approve an application until at
written or oral). Such documents in-
plicant shall Include in its annual per-
least 45 days after receipt of an appli-
clude the following:
formance report: (1) Copies of com-
cation.
(1) All mailings and promotional ma-
ments submitted by citizens regarding
(g) Complaints. The plan shall pro-
terial,
the applicant's community develop-
vide for answering complaints in a
(ii) Records of hearings,
ment performance; (II) the applicant's
timely and responsive manner. The ap-
(iii) All key documents, including all
assessment of such comments; and (iii)
plicant shall make every reasonable
prior applications, letters of approval,
a summary of any actions taken in re-
effort to provide written responses
grant agreements, the citizen partici-
sponse to the comments received.
within 15 working days.
pation plan, performance reports, eval-
(e) Submission of views and propos-
(h) Technical assistance. To facili-
uation reports, other reports required
als. The applicant shall provide for
tate citizen participation, the plan
by HUD, and the proposed and ap-
and encourage the submission of views
shall provide for technical assistance.
proved application for the current
and proposals regarding the Commu-
The level and type of assistance deter-
year,
nity Development Program by citizens,
mined appropriate by the applicant
(iv) Copies of the regulations and is.
particularly low- and moderate-income
shall be provided to: (1) Citizen organi-
suances governing the program, and
persons and residents of blighted
zations, so that they may adequately
(v) Documents regarding other im-
neighborhoods. This includes submis-
participate In planning, implementing,
portant program requirements, such
sion of such views:
and assessing the program: and (2)
as contracting procedures, environ-
(1) Directly to the applicant during
groups of low- and moderate-income
mental policies, fair housing and other
the planning period prior to public
persons and groups of residents of
equal opportunity requirements, relo-
hearings on the application;
blighted neighborhoods which request
cation provisions, and the A-95 review
(2) To recognized neighborhood, pro-
assistance in developing proposals and
process.
ject area, and communitywide citizen
statements of views.
(3) When the application is submit-
organizations;
It may also be directed toward assist-
ted to HUD upon completion of
(3) At neighborhood and other meet-
ing citizens in organizing and operat-
clearinghouse reviews, the applicant
ings, if scheduled by the applicant
ing neighborhood and project area or-
shall publish a notice in a newspaper
prior to formal public hearings; and
ganizations and in carrying out Com-
of general circulation stating that the
(4) At formal public hearings.
munity Development Program activi-
application has been submitted and is
ties. Technical assistance should be
The applicant shall provide timely
available to interested parties upon re-
provided by specialists jointly selected
responses to all proposals submitted to
quest and describing the requirements
by the applicant and the organizations
it, including written responses to writ-
on citizen objections to applications
ten proposals stating the reasons for
and groups to be assisted. It may be
contained in paragraph (f), above.
provided either by the applicant di-
the action taken by the applicant on
(4) The applicant shall make copies
rectly or through arrangements with
the proposal. The citizen participation
of the citizen participation plan, the
public or private entities.
plan shall state the number of days
proposed and approved application,
(i) Adequate information. The appli-
within which responses will be pro-
and the annual performance report
cant shall provide for full public
vided. Whenever practicable, re-
available at locations conveniently lo-
access to program information and af-
sponses should be provided prior to
cated for persons affected by the pro-
firmative efforts to make adequate in-
the final hearing on the application.
gram and accessible to the handi-
formation available to citizens, espe-
capped.
(f) Consideration of objections to ap-
cially to those of low- and moderate-
plications. Persons wishing to object
(j) Public hearing. The plan shall
income and to those residing in lower-
to approval of an application by HUD
provide for a sufficient number of
income or blighted neighborhoods.
may make such objection known to
hearings to obtain citizen views and to
(1) At the time the applicant begins
the appropriate HUD Area Office.
respond to citizen proposals and ques-
planning for the next program year,
HUD will consider objections made
tions at different stages of the pro-
the following program information
only on the following grounds: The ap-
gram. Such hearings shall be held at
shall be provided to citizens:
plicant's description of needs and ob-
convenient times and locations which
(1) The total amount of community
jectives is plainly inconsistent with
permit broad participation, particular-
development block grant funds avail-
available facts and data; or the activi-
ly by low- and moderate-income per-
able to the applicant for community
ties to be undertaken are plainly inap-
sons and by residents of blighted
development and housing activities, in-
neighborhoods. Hearing arrangements
propriate to meeting the needs and ob-
cluding planning and administrative
jectives identified by the applicant; or
should make possible the full partici-
activities,
pation of handicapped citizens.
the application does not comply with
(ii) The range of activities that may
the requirements of this Part or other
(1) Presubmission hearings. The ap-
be undertaken with these funds and
plicant shall hold at least two kinds of
FEDERAL REGISTER, VOL 43, NO. 41-WEDNESDAY, MARCH 1, 1978
8464
RULES AND REGULATIONS
public hearings prior to the submis-
ment does not require prior HUD ap-
(1) Areas targeted for concentrated
sion of the application:
proval, the plan shall describe how the
action as Neighborhood Strategy
(i) To obtain views and proposals of
citizen participation process shall be
Areas pursuant to $ 570.301(c) shall be
citizens. the initial stage of applica-
involved in the amendment.
Identified. For each such area the ap-
tion development on community devel-
plicant shall describe:
opment and housing needs and prior-
$ 570.304 Community Development and
(A) -The objectives. both long-term
ities, and to obtain comments on the
Housing Plan.
and short-term, to be achieved, quanti-
applicant's community development
An entitlement application shall In-
fied whereever possible:
performance;
clude a summary of a Community De-
(B) The physical improvement pro-
(ii) To obtain views of citizens on the
velopment and Housing Plan. This
grams to be carried out with block
proposed application prior to submis-
document shall be submitted every
grant funds, such as code enforce-
sion of the application to A-95
third year as part of the annual appli-
ment, rehabilitation, acquisition, de.
clearinghouses.
cation for funds beginning with the
molition, or public improvements:
(2) Performance hearings. In order
first application submitted on or after
(C) Related programs proposed such
to review program progress and per-
August 1, 1978. It shall summarize the
as Urban Homesteading and section 8
formance, the applicant shall hold an
community development and housing
Substantial Rehabilitation Special
additional public hearing or hearings
needs of the applicant. Its comprehen-
Procedures;
thirty to sixty days prior to the start
sive strategy for meeting those needs,
(D) Public Services to be carried out
of planning for the next program year.
including its long- and short-term ob-
in support of the physical improve-
(3) Notices. In order to give adequate
jectives, and the projects and activities
ment programs;
notice of public hearings:
planned for the next three years.
(E) An implementation schedule
(1) The applicant shall. 10 days prior
(a) Summary of community develop-
showing the anticipated timing of ac-
to each public hearing. publish a
ment and housing needs. This shall in-
tivities and the coordination of block
notice in easily readable type in the
clude the following:
grant funded activities and other local
nonlegal section of newspapers of gen-
(1) A community profile on a form to
actions;
eral circulation, including minority
be prescribed by HUD. which provides
(F) The anticipated resources, in-
and non-English language newspapers
data regarding population and income
cluding block grant funds, other Fed-
of general circulation where they
characteristics of the community, the
eral, State, or local funds, and private
exist. Such notices shall indicate the
condition of the housing stock. and
investment;
date, time, place and procedures of the
the economic condition of the commu-
(G) The role of any neighborhood
hearing and topics to be considered.
nity as a whole.
organizations;
The applicant also shall make reason-
(2) A narrative summary of the ap-
(H) How the housing assistance
able efforts to provide the notices, in
plicant's community development and
goals and general locations in the
the form of press releases, the neigh-
housing needs, particularly those of
Housing Assistance Plan, particularly
borhood newspapers or periodicals
low- and moderate-income households
the rehabilitation goals, support the
serving low- and moderate-income
and any special needs of Identifiable
applicant's neighborhood revitaliza-
neighborhoods.
segments of the total group of lower
tion strategy.
(ii) The applicant is encouraged to
Income persons. The narrative shall
(11) Other neighborhood improve-
take other actions to widely publicize
include a brief description of the
ment efforts shall be described. This
the hearings, such as arranging for
major needs for neighborhood revital-
shall Include specific actions designed
public service radio and television an-
ization, for community facilities and
to prevent and eliminate slums and
nouncements.
public improvements, and for housing.
blight where such actions are not car-
(k) Bilingual Wherever a significant
(b) Comprehensive strategy. The ap-
ried out in a concentrated manner: it
number of low- and moderate-income
plicant shall describe how it proposes
shall also include actions to provide
persons and residents of blighted
to meet its identified community de-
improved community facilities and
neighborhoods speak and read a pri-
velopment and housing needs, particu-
public improvements where they will
mary language other than English.
larly those of low- and moderate-
principally benefit persons of low- and
the plan shall provide that all notices
income households residing in or ex-
moderate-income. The strategy shall
of public hearings and summaries of
pected to reside in the community and
describe the activities to be carried
basic information be produced in such
any special needs of identifiable seg-
out, the objectives to be accomplished,
language or languages and that bilin-
ments of the lower income population.
the anticipated timing, and the block
gual opportunities shall be offered at
The strategy shall include a commun-
grant and other funds to be provided.
required public hearings.
itywide component which describes
(2) Housing. The applicant shall de-
(l) Contingency and local option ac-
the development strategy of the appli-
scribe a communitywide strategy to
tivities. The plan shall provide that if
cant, the major objectives the appli-
improve housing conditions and to
the applicant sets aside funds in its ap-
cant seeks to accomplish, the priorities
meet the housing assistance needs
plication for contingencies and/or
it has established for the use of block
that have been identified. The strate-
local option activities, or if it chooses
grant funds, and the factors it has
gy shall consist of a Housing Assis-
to identify in its application activities
taken into account in selecting areas
tance Plan as described in $ 570.306 as
that could replace any activities disap-
for treatment and designing programs
well as the following:
proved by HUD during its application
to meet identified needs. In addition,
(1) A strategy for any programs to be
review, the citizen participation pro-
it shall include the following compo-
carried out on a communitywide basis;
cess shall be involved in the selection
nent strategies:
such as provision of rehabilitation fi-
of such contingency or local option ac-
(1) Neighborhood revitalization. The
nancing for low- and moderate-income
tivities.
applicant shall describe its strategy
persons or elimination of detrimental
(m) Program amendments. The plan
for maintaining and preserving viable
conditions; the strategy shall include
shall provide for citizen participation
neighborhoods and for upgrading
the goals to be accomplished, a timeta-
in any amendments to an approved ap-
neighborhoods affected by blight and
ble of actions to be taken, and the
plication, except those for disaster ac-
deterioration.
amount of block grant and other
tivities. If the nature of the amend-
This shall emphasize the actions to
funds to be provided;
ment is such that prior HUD approval
be taken that will improve conditions
(ii) Any regulatory and other actions
is required, as specified in § 570.312,
for low- and moderate-Income persons
proposed to foster housing mainte-
the applicant shall hold public hear-
residing in or expected to reside in the
nance and improvements. This may in-
ings on the amendment. If the amend-
community.
clude: actions to eliminate redlining
FEDERAL REGISTER, VOL 43, NO. 41-WEDNESDAY, MARCH 1, 1978
RULES AND REGULATIONS
8465
with respect to property insurance and
grouped by location, the anticipated
ty Development and Housing Plan, or
the availability of credit for the pur-
timing. the goals to be accomplished,
an amended plan shall be submitted
chase and rehabilitation of housing:
the population benefitting. and the es-
with the application as required by
and actions such as provision of tax in-
timated block grant and other funds
§ 570.312(a). The Community Develop-
centives to promote investment in res-
to be provided, and indicating whether
ment Program shall consist of the fol-
toration of deteriorated or abandoned
the project or activity principally
lowing:
housing;
benefits low- and moderate-income
(a) Project summary. The following
(iii) The applicant's strategy for in-
persons, aids in the prevention or
information shall be provided for each
creasing the choice of housing oppor-
elimination of slums and blight, or
project and activity to be commenced
tunities for low- and moderate-income
meets other community development
during the program year:
persons, including members of minor-
needs having a particular urgency.
(1) The name of the project or activ-
ity groups and female-headed house-
The requirements of this paragraph
ity;
holds, including efforts to achieve spa-
shall not apply to:
(2) A description of the project
tial deconcentration of such housing
(1) Hold harmless applicants whose
which states its purpose, the sequence
opportunities and actions to affirma-
entitlement ends and who do not
of activities, duration of the project,
tively further fair housing:
apply for small cities comprehensive
and the entity responsible for carrying
(iv) Any community facilities and
grants involving multiyear funding
it out;
improvements to be provided in fur-
commitments pursuant to 570.423(b)
(3) The location and service area, In-
therance of the applicant's housing
during the same year, and (2) any ap-
cluding the census tract(s) or enu-
strategy and to assure accomplishment
plicant for a small cities grant who
meration district(s) of the project, and
of goals for assisted housing; and
does not request & multiyear funding
the entity responsible for carrying it
(v) Where the community develop-
commitment.
out;
ment program will result in direct or
(d) Maps. The plan shall include
(4) Whether the project or activity
indirect displacement or other hard-
maps showing the following informa-
principally benefits low- and moder-
ships to low- and moderate-income
tion. The maps shall be on a census
ate-income persons, aids in the preven-
persons, the strategy shall describe
tract or enumeration district base, but
tion of elimination of slums and
the actions the applicant will take to
the information need not be displayed
blight, or meets other community
assist such persons to remain in their
according to the tract or enumeration
needs having a particular urgency;
present neighborhoods when they
district boundarles.
(5) A description of the activities
prefer and to mitigate any adverse ef-
(1) The extent and location of low-
which comprise each project, and the
fects resulting from block grant
and moderate-income persons;
estimated costs and timing:
funded activities.
(2) The extent and location of mi-
(6) The amounts and sources of
(3) Economic development. A de-
nority group residents;
other public funds and private invest-
scription of the applicant's strategy
(3) The extent and location of sub-
ments anticipated to be provided;
for economic develoment is required
standard and deteriorated housing:
(7) The environmental review status;
from applicants that propose block
(4) The locations of block grant
(8) Anticipated accompllshments.
grant funded economic development
funded projects Included in the three-
(b) Cost summary. This will consist
activities: The strategy shall include:
year project summary.
of a tabular summary, on a form to be
(1) A description of the major needs
(5) Neighborhood strategy areas, If
prescribed, of proposed block grant ex-
for economic development in the local-
any. Maps shall be clearly legible, and
penditures in specific categories and
ity; this shall include discussion of the
all required maps submitted shall be
the anticipated resources available.
needs of identifiable population
of the same scale and cover the same
(c) A map or maps of the applicant's
groups experiencing significant unem-
areas. The applicant may submit sup-
Jurisdiction showing the locations of
ployment or underemployment, as
plementary maps of a different scale,
proposed activities, on a base map
well as general economic needs of the
at its discretion, where this will in-
census tracts or enumeration districts,
applicant experiencing a stagnating or
crease clarity. More than one type of
and any designated neighborhood
declining tax base or loss of popula-
information may be combined on one
strategy areas. The maps shall be con-
tion:
map if the information is clearly leg-
sistent with the requirements of scale
(ii) A description of the activities
ible when combined.
and legibility in § 570.304(d).
proposed to further economic develop-
(e) Interim provisions. Applications
ment and to attract private invest-
submitted prior to August 1. 1978,
§ 570.306 Housing Assistance Plan.
ment, including the coordination of
shall conform to the Community De-
(a) General Provisions. This section
block grant funded activities with
velopment Plan Summary requre-
contains policies, procedures, require-
other local actions and a timetable for
ments published in the FEDERAL REGIS-
ments and standards governing the
provision of other Federal and State
TER (41 FR 4134) on January 28, 1976.
Housing Assistance Plan (HAP).
resources;
However, applicants proposing to un-
(1) Purpose. The HAP is required as
(iii) The number and types of perma-
dertake activities whose eligiblity
part of the application for assistance
nent jobs expected to result from eco-
under the rules in Subpart C depends
under this Part. The HAP serves as a
nomic development projects, particu-
on the activities being consistent with
measure of the conditions of the appli-
larly jobs for unemployed or underem-
a strategy for community development
cant's housing stock and the needs of
ployed population groups and low- and
shall supplement the plan summary
lower (low and moderate) income per-
moderate-income persons and the
with a brief narrative statement con-
sons for housing assistance. Further,
types and extent of any job training
taining the information required by
the HAP serves to establish goals for
which will be provided to such resi-
§ 570.200(h).
assistance best suited to meet the
dents; and
§ 570.305 Annual Community Develop-
needs of lower income persons and to
(iv) Evidence of commitments or in-
terest by developers of new or expand-
ment Program.
further the revitalization of the com-
munity, including the restoration and
ed employment facilities.
Each annual application shall con-
rehabilitation of stable neighborhoods
(c) Three-year project summary. This
tain a Community Development Pro-
to the maximum extent possible, and
shall consist of a tabular summary of
gram describing the projects and ac-
the reclamation of the housing stock
the projects proposed to be carried out
tivities to be carried out with program
where feasible through the use of a
with block grant funds during the
year funds. Such projects and activi-
broad range of techniques for housing
next three years to implement the ap-
ties shall be consistent with the previ-
restoration by local government, the
plicant's comprehensive strategy,
ously submitted three-year Communi-
private sector, or community organiza-
FEDERAL REGISTER, VOL 43, NO. 41-WEDNESDAY, MARCH 1, 1978
8466
RULES AND REGULATIONS
tions. including provisions of a reason-
gram pursuant to § 570.306(b)(4) which
goals designed to address the needs of
able opportunity for tenants displaced
will propose goals for housing assis-
a particular tenure type (owner or
as a result of such activities to relocate
tance to be provided in Federal Fiscal
renter), household type, (elderly and
in their immediate neighborhood. The
Year 1979 which, when combined with
handicapped, family and non-elderly
HAP must propose general locations
all housing assistance provided in FFY
individuals, or large family), or hous-
for assisted housing which promote
1977 and 1978 will result in the provi-
ing type (existing, substantial rehabili-
greater choice of housing opportuni-
sion of housing assistance in the same
tation, or new construction), or any
ties and avoid undue concentrations of
proportion as the three year goals, by
combination of the above, which have
assisted persons in areas containing a
household type, set forth in the HAP
not been substantially met, shall In-
high proportion of lower-income per-
submitted In 1978. For the purposes of
clude goals to meet such needs prior to
sons, and which further fair housing
24 CFR 891, the three-year goal for
providing further assistance for
and assure the availability of public
HAP's submitted prior to August 1,
tenure, household, or housing types
facilities and services adequate to sup-
1978 is the three-year goal submitted
for which established goals have been
port housing facilities. In addition, all
in the 1976 HAP including any amend-
substantially met. For example, an ap-
communities are expected to share in
ments thereto. For example, an appli-
plicant which has identified a substan-
providing expanded housing opportu-
cant which has provided housing assis-
tial need, and established goals for
nities for lower-income persons and to
tance primarily for elderly households
families and large families, but none-
participate in areawide solutions of
during FFY 1977 and 1978 is expected
theless has met only the goals or a
housing problems through promotion
to establish goals this year in the
substantial portion of the goals. estab-
of spatial deconcentration of housing
annual housing action program for
lished for elderly households shall
opportunities for lower-income per-
families and large families so that as-
meet the goals established for families
sons.
sistance provided during FFY 1977,
and large families before providing ad-
(2) Use. The HAP is not only a re-
1978 and 1979 will be in the same pro-
ditional assistance to elderly house-
quirement for assistance under this
portion, by household type, as the
holds.
Part, but It serves as the means for
1976 three-year goal. In addition, the
(b) Housing Assistance Plan Con-
HUD to distribute assisted housing re-
applicant shall identify general loca-
tent. The application shall contain a
sources to applicants. The HAP offers
tions for new construction and sub-
housing assistance plan which in-
applicants a means to implement
stantial rehabilitation units or pro-
cludes:
-strategies to conserve and expand Its
jects. For HAP's submitted prior to
(1) Housing Conditions. The appli-
housing stock in order to provide a
August 1, 1978, general locations shall
cant shall describe the condition of
decent home in a suitable living envi-
be applicable to the housing assistance
the existing housing stock in the com-
ronment for all persons, but principal-
goals as described above in this para-
munity by providing a statistical pro-
ly those of lower income. The HAP
graph; however, the requirements for
file by tenure type (owner and renter),
should facilitate the reduction of the
Identifying such locations are set forth
which describes housing conditions by
isolation of Income groups within com-
In § 570.306(b)(3)(ii). Unless there have
number of units in standard and in
munities and geographic areás, affir-
been substantial changes In the hous-
substandard condition. If a housing re-
matively further fair housing and pro-
ing conditions and housing assistance
habilitation program is proposed as
mote the diversity and vitality of
needs, an applicant is required to
part of the applicant's strategy state-
neighborhoods.
submit only an annual goal and the
ment as set forth in § 570.304(b), the
number of units which are suitable for
(3) Responsibility of applicant. Ap-
general locations for proposed new
rehabilitation shall be stated. Esti-
plicants are responsible for implemen-
construction and substantial rehabili-
mates shall be made of vacancy rates
tation of the housing assistance plan
tation.
for non-seasonal available units in
in an expeditious manner. This in-
(ii) Housing Assistance Plans submit-
standard condition, using the best esti-
cludes the timely achievement of all
ted after August 1, 1978 shall be sub-
mate at the time the application is
goals for assisted housing and particu-
mitted once every three years as de-
prepared, but in no case including
larly those which address the needs of
scribed in § 570.306(b) and shall cover
units to be vacant at a future date.
families and large families requiring
a three year period. However, each
(2) Housing Assistance Needs. The
rental assistance. Applicants are ex-
annual application shall include an
applicant shall describe the housing
pected to take all actions within their
annual housing action program. Al-
assistance needs of lower income per-
control to facilitate the implementa-
though some revision and updating
sons.
tion of an approved housing assistance
may be necessary during this period
The data for such description gener-
plan including those actions specified
because of the availability of new data
ally shall be derived from Federal
in §§ 570.306(b)(3)(iii) and (b)(4)(ii), as
sources or significant changes in local
census data; except that the applicant
well as the development of Section 8
conditions or needs, the HAP shall be
may also utilize other more recent
housing when notifications of funding
in effect for three program years. A
data generally available from public or
availability are not responded to by
new HAP shall be submitted every
private sources, including areawide, re-
private developers.
third program year thereafter.
gional, or State planning agencies; pro-
(4) Period covered by HAP. The HAP
(iii) A Hold Harmless Entitlement
vided that the deviations from esti-
shall be submitted and be effective for
applicant submitting a HAP after
mates derived from the Federal census
time periods as follows:
August 1, 1978, but not proposing to
data or from areawide, regional, or
(1) Housing Assistance Plans submit-
apply for a grant under Subpart F of
State planning agency assessments are
ted to HUD after the publication date
these regulations during its phase out
explained. All applicants which are
of these regulations but prior to
year, is subject to this section except
within the jurisdiction of an areawide
August 1, 1978 shall be designed to
that the establishment of a three-year
planning organization having an ap-
complete the requirement that hous-
numerical goal as described in
proved Areawide Housing Opportunity
ing assistance provided pursuant to
§ 570.306(b)(3)(i) is not applicable.
Plan (AHOP) must use the data pre-
the three-year goals set forth in the
(5) Relationship to previously ap-
sented in the Plan. Applicants which
HAP approved during 1976 shall have
proved HAP's. (Effective August 1,
are within the jurisdiction of an
been provided in the same proportion
1978.) Applicants are not relieved of
areawide planning organization which
as those goals by household type (el-
their responsibilities to continue to ad-
does not have an approved AHOP
derly and handicapped, families and
dress goals established to meet the
should use the same census, areawide,
non-elderly individuals, and large fam-
needs for assisted housing identified in
or State data unless more recent, gen-
ilies). Accordingly, applicants shall
prior program years. Accordingly, ap-
erally available data exist for an indi-
submit an annual housing action pro-
plicants who had approved component
vidual applicant.
FEDERAL REGISTER, VOL 43, NO. 41-WEDNESDAY, MARCH 1, 1978
RULES AND REGULATIONS
8467
(i) The applicant shall provide esti-
for an additional number of lower-
zation is to be used in lieu of a meth-
mates of housing assistance needs of
income households expected to reside.
odology set forth in this Part, HUD
lower-income persons currently resid-
An applicant obtaining a negative
will consider whether such alternate
ing in the community, by tenure type
gross estimate as a result of the fifth
methodology provides the estimates
and by household type (lower-income
step shall record the gross estimate of
required to meet the standards of ac-
households which are elderly and
the number of households expected to
ceptability set forth in paragraphs (b)
handicapped, families and non-elderly
reside as a zero.
and (c) of this section and is statisti-
individuals, and large families), for all
EXAMPLE
cally and mathematicially sound.
households, including those house-
(C) HUD shall monitor the estimates
holds to be displaced by public action
Step 1. SMSA Y Lower Income Houshold
developed through an approved State
and, where information is available, by
Percentage: 40 percent.
or areawide planning organization al-
private action during the three year
Step 2. City W Total Number of House-
ternative methodology. Although
program. Such estimates shall also be
holds currently residing: 5,000.
provided for any identifiable segment
Step 3. City W Total Number of House-
areawide organizations are encouraged
holds Currently Residing SMSA Lower-
to develop methodologies which are
of the total group of lower-income
Income Household Percentage=Total re-
innovative in scope and suited to the
households in the community.
quired number of lower-income households:
circumstances of the jurisdiction of
(ii) The applicant shall assess the
5,000x40%=2,000.
the areawide planning organizations,
housing assistance needs of lower-
Step 4. City W Total Lower-Income
HUD may withdraw approval of or re-
income households (by household type
Households Currently Residing: 1,000.
quire modification of an alternative
for all households and all minority
Step 5. (City W Total required number of
methodology which is determined to
households), who could reasonably be
lower-income households-City W Lower-
expected to reside in the community.
Income Households Currently Residing)/
produce estimates which are plainly
(1-SMSA Lower-Income Households
inconsistent with the objectives of this
(A) (Effective August 1, 1978.) An
Percentage)=Gross Estimate of Lower-
Part.
applicant community in a metropoli-
Income Households. Expected to Reside:
(iv) In addition, the applicant shall
tan area shall utilize the following
(2,000-1000)/(1-40%)=1.000/60%=1.667.
provide a narrative statement which
methodology to derive the minimum
Step 6. City W gross estimate of the
summarizes any special housing condi-
estimate of the number of lower-
number of lower-income households expect-
tions in the community and special
income households who could be ex-
ed to reside/3-the estimate of the number
housing needs found to exist in the
pected to reside in the applicant com-
of lower-income households who reasonably
total group of lower-income house-
munity during the three year period
may be expected to reside 1,667/3-556.
holds in the community. Such sum-
of applicability of the HAP. First, the
(B) An applicant In a nonmetropoli-
mary shall include but need not be
metropolitan area percentage of lower-
tan area, for which relevant Federal
limited to, discussion of:
income households shall be deter-
census data are not available, shall
(A) Female heads of households;
mined using Section 8 Income Limits.
submit Its best estimate of the number
(B) Individual minority groups;
Second, the total number of house-
of lower-income households who rea-
(C) Handicapped persons;
holds in the applicant's Jurisdiction
sonably could be expected to reside In
(D) Special housing conditions such
shall be determined. Third, the total
the community, based on data general-
as concentrations of mobile homes;
number of households from step two
ly available from Federal, State,
and
shall be multiplied by the percentage
areawide, or local sources.
(E) Special housing needs related to
from step one, the product of which is
(III) Use of alternative methodologies
a community's economic base such as
the total required number of lower-
for determining estimates of lower-
military housing, migrant workers,
income households. Fourth, the
income households expected to reside
and-retirement centers.
number of lower-income households
developed by State or areawide plan-
(3) Three Year Housing Program.
currently residing in the applicant's
ning organizations; (Effective August
(Effective August 1, 1978 except as
jurisdiction shall be determined. Fifth.
1, 1978.) HUD may, at its option, de-
provided for paragraph (ii) in
the number of lower-income house-
termine that a State or an areawide
570.306(a)(4)(i).) The applicant shall
holds currently residing from step
planning organization has developed
describe a three year housing program
four shall be subtracted from the total
an alternative methodology for one or
for implementation of its community
required number of lower-income
both of these elements which evi-
development and housing strategy:
households produced in step three, the
dences compliance with the objectives
(i) Goals. The program shall specify,
remainder of which is to be divided by
of this Part and is a more precise
by tenure type, household type, and
one minus the metropolitan area per-
means to measure such needs within
housing type, a realistic three year
centage of lower-income households,
the specific geographic area of its ju-
goal-for the number of dwelling units
the result being the gross estimate of
risdiction. The basis for such determi-
or persons to be assisted. The state-
the number of lower-income house-
nations are set forth in 24 CFR Part
ment of the three year goal for assist-
holds expected to reside in the appli-
891, Subpart E. Having so determined,
ed dwelling units also shall take into
cant community. Sixth, applicants
HUD may, at its option, authorize the
consideration housing conditions with
shall then determine the estimate of
use of such methodology, in lieu of the
respect to the availability of existing
the number of lower-income house-
methodology set forth in
units of standard quality and units
holds who reasonably may be expected
§ 570.306(b)(2)(ii), by all applicants
suitable for rehabilitation and shall
to reside by multiplying the gross esti-
within the jurisdiction of such
meet the standards set forth in
mate of the number of lower-income
areawide planning organizations.
§ 570.306(c)(1).
households expected to reside by one-
(A) HUD shall inform all affected
(ii) General Locations. The program
third. This estimate of the number of
applicants, by publication of a Notice
shall identify the general locations of
lower-income households who reason-
in the FEDERAL REGISTER of those
proposed new construction housing
ably may be expected to reside shall
State or areawide planning organiza-
units or projects, and substantial reha-
be cited in the applicant's assessment
tions where an alternative methodolo-
bilitation units or projects, for the
of the overall housing assistance needs
gy has been approved by HUD and
programs subject to 24 CFR 891 and,
of lower-income households. An appli-
whether such methodology will be
to the extent feasible, other assisted
cant with a gross estimate of the
used in lieu of the methodology set
housing programs identified in the
number of households expected to
forth in § 570.306(b)(2)(ii).
goals for lower-income persons on
reside of zero as a result of the fifth
(B) In determining whether an alter-
maps as called for in § 570.304(d). The
step in the above methodology is not
native methodology developed by a
locations shall be identified by census
required to set forth a housing need
State or an areawide planning organi-
tract (or enumeration districts or geo-
FEDERAL REGISTER, VOL 43, NO. 41-WEDNESDAY, MARCH 1, 1978
8468
RULES AND REGULATIONS
graphic quadrants in those jurisdic-
cluding the relative proportion of new,
(iii) (Effective August 1, 1978.) Mini-
tions where a census tract includes a
rehabilitated, and existing units best
mal goals. The goals must directly ad-
substantial area, such as an entire
suited to the needs of lower-income
dress known needs for housing assis-
community). General locations for
persons indentified by the applicant;
tance and contain a sufficient number
housing projects shall contain at least
and
of units to permit practical and eco-
one site which conforms to the site
(ii) Set forth specific actions, If any,
nomically feasible housing develop-
and neighborhood standards estab-
to be undertaken during the program
ment. For applicants with are within
lished for the appropriate HUD assist-
year to assure the Implementation of
the jurisidiction of a HUD-approved
ed housing program. Where an appli-
the three-year housing program in-
AHOP, HUD will accept the goals in-
cant proposes assisted housing re-
cluding those actions described in
cluded therein. All other applicants
sources in areas of concentration of
paragraph (b)(3)(III) of this section.
shall propose a three-year housing as-
minorities or federally assisted hous-
(c) Standards and criteria for ap-
sistance goal which represents assis-
ing, general locations outside of such
proval of HAPs. The following stan-
tance for at least 15 percent of the
areas also shall be proposed in order
dards and criteria shall apply to the
total need unless the applicant can
to ensure the provision of assisted
reviews and determinations of accept-
demonstrate to the safisfaction of
housing in a balanced manner.
ability of housing assistance plans and
HUD that such a goal would be infea-
(iii) Actions to be taken. The pro-
shall be effective as of the date of pub-
sible. The standard that housing assis-
gram shall describe those actions
lication of these regulations except as
tance plans with only minimal housing
which will be necessary for the appli-
otherwise noted:
assistance goals are plainly inappropri-
cant to take to address any special
(1) Goals for assisted housing-(1)
ate recognizes that communities with
housing needs and conditions cited in
Proportionality. The three year hous-
very substantial housing assistance
§ 570.306(b)(2)(iv), as well as any ac-
ing assistance goals shall address the
needs have a responsibility to propose
tions determined necessary, on the
needs of the three household types
substantial housing assistance goals
basis of findings of past performance
(elderly and handicapped, families and
and that goals should reflect the desir-
reviews pursuant to Subpart o of
non-elderly individuals, and large fam-
ability of meeting a significant per-
these regulations, to achieve the hous-
illes) within each tenure type (owner
centage of identified needs at an early
ing assistance goals, and shall set
and renter) in the same proportion as
date.
forth a timetable for such actions. In
the total lower-Income housing needs
(iv) Vacancy rates. In establishing
addition, applicants anticipating diffi-
identified in the HAP, of those house-
goals for assisted housing, the appli-
culty in achieving goals in newly pre-
hold types, by tenure type. Certain ad-
cant shall consider the vacancy rate
pared HAPs shall set forth actions re-
justments to this requirement are per-
established pursuant to § 570.300(b)(1)
quired to achieve those goals. The ac-
mitted as follows:
and shall estimate the number of such
tions may include, but are not limited
(A) HUD may grant an exception
vacant units which would be adequate
to: (A) acquisition of sites and provi-
from this requirement when an appli-
to meet the needs of lower-income
cant documents special needs arising
households.
sion of site improvements for the de-
from displacement of significant num-
(A) In those cases where there exists
velopment of assisted housing: (B)
bers of households of a particular size;
a less than adequate vacancy rate (as
adoption or modification of local or-
natural disasters; meeting the housing
determined by HUD) in housing units
dinances and land use measures to fa-
requirements of section 105 (f) and (h)
resulting in an insufficient number of
cilitate the development of assisted
of the U.S. Housing Act of 1949, as
vacant, standard, available units of ap-
housing including institution of local
amended; accommodating proposals
propriate size, cost, and type to meet
referendum-actions, where necessary;
for projects of feasible size which
the identified housing assistance needs
(C) issuance of appropriate zoning
could not otherwise be developed; or
for rental units for lower-income
changes, building permits, utility con-
implementing the goals of a HUD-ap-
households goals for housing assis-
nections and similar administrative re-
proved AHOP; or
tance shall emphasize a program of
quirements; (D) formation of a local
(B) (Effective August 1, 1978.) Appli-
new construction of rental units for
housing authority or execution of an
cants required to emphasize a particu-
households of lower-income. For ex-
agreement with a housing authority
lar household type or types pursuant
ample, an applicant with a significant
having powers to provide assisted
to § 570.306(a)(5) shall make no down-
number of lower-income households
housing within the jurisdiction of the
ward adjustment in the percentage
expected to reside in the community
applicant; (E) removal of local resi-
represented by such household type,
and a less than adequate rental vacan-
dency preferences for assisted hous-
but the percentage represented by
cy rate, would be expected to empha-
ing; (F) promotional and assistance ac-
other household types may be adjust-
size a program of new construction of
tivities to encourage developers to-ini-
ed downward as necessary. For exam-
rental units to address this need. How-
tiate assisted housing or to allocate a
ple, an applicant which has dispropor-
ever, this does not preclude the use of
portion of their planned unsubsidized
tionately met the needs of elderly
a vehicle such as the Section 8 Exist-
developments for assisted housing,
households in prior years would not be
ing Housing program to address the
and to encourage owners to make
permitted to make any downward ad-
needs of households currenty residing
units available for Section 8 existing
justment to the percentages represent-
in the community, provided that the
housing programs; and (G) measures
ed by family and large family house-
existing program is used in concert,
to reduce the cost of housing develop-
holds, but may be required to reduce
during the three year program, with
ment, such as tax abatement, waiver
the percentage represented by elderly
new construction and/or substantial
of fees and other administrative costs.
households to zero.
rehabilitation so that the housing
(4) Annual Housing Action Program.
(ii) Tenure types. The types and
market will not be further imbalanced.
For each program year as part of the
quantities of housing assistance pro-
(B) In those cases where there exists
annual submission, the applicant shall
posed by tenure type (owner and
an adequate vacancy rate as deter-
describe a program of actions to carry
renter), shall be appropriate to meet-
mined by HUD in standard housing
out each program year increment in
ing indentified needs of both renters
units creating a sufficient number of
order to achieve the three year hous-
and owners. In this regard, unless a
vacant, available units of appropriate
ing program. The annual action pro-
community can demonstrate that it
size, cost, and type to meet the identi-
gram shall:
can meet the needs of households ex-
fled housing assistance needs of lower-
(i) Specify, by tenure type, house-
pected to reside through assistance
income persons for rental units, goals
hold type, and housing type, a realistic
programs for homeowners, such needs
for housing assistance shall emphasize
annual goal for the number of dwell-
shall be assumed to represent needs
a program of existing housing for per-
ing units or persons to be assisted, in-
for rental units.
sons of lower-income.
FEDERAL REGISTER, VOL 43, NO. 41-WEDNESDAY, MARCH 1, 1978
RULES AND REGULATIONS
8469
(v) Urban renewal completion. Ap-
tion of housing opportunities for
August 1. 1978, the certification require-
plicants engaged in the completion of
lower-income persons, particularly ml-
ment of 570.303(e)(4) published in the FED-
Urban Renewal projects and having to
norities.
ERAL REGISTER (41 FR 4135) on January 28,
meet requirements of Sections 105 (f)
1976, shall apply.
and (h) of the U.S. Housing Act of
$ 570.307 Certifications.
(e) Its chief executive officer or
1949 as amended, or applicants obli-
The applicant shall submit certifica-
other officer of applicant approved by
gated to meet such requirements
tions each year providing assurances
HUD:
under close-out agreements pursuant
that:
(1) Consents to assume the status of
to 570.804 for projects which have
(a) It possesses legal authority to
a responsible Federal official under
been settled financially. shall establish
apply for the grant, and to execute the
the National Environmental Policy
goals large enough to meet such obli-
proposed program.
Act of 1969 insofar as the provisions of
gations.
(b) Its governing body has duly
such Act apply to this Part;
(vi) Adequacy of rehabilitation. In
adopted or passed as an official act a
(2) Is authorized and consents on
order to be included as goals in a
resolution, motion or similar action
behalf of the applicant and himself to
Housing Assistance Plan any units
authorizing the filing of the applica-
accept the jurisdiction of the Federal
proposed to be rehabilitated for either
tion, including all understandings and
courts for the purpose of enforcement
owners or renters must be units which
assurances contained therein, and dí-
of his responsibilities as such an offi-
are determined by the applicant to be
recting and authorizing the person
cial.
substandard, and upon completion of
identified as the official representative
(f) The Community Development
rehabilitation, will meet, at a mini-
of the applicant to act in connection
Program has been developed so as to
mum, Section 8 Existing Housing
with the application and to provide
give maxímum feasible priority to ac-
Quality Standards pursuant to 24 CFR
such additional information as may be
tivities which will benefit low- and
882.109, and be occupied by lower-
required.
moderate-income families or aid in the
income households. Any units pro-
(c) It has complied with all the re-
prevention or elimination of slums or
posed for rehabilitation using Federal
quirements of OMB Circular No. A-95
blight.
assistance, shall upon completion meet
as modified by this Part and that
[The requirement for this certification will
the standards of the applicable Feder-
either:
not preclude the Secretary from approving
al program where they exceed Section
(1) Any comments and recommenda-
an application where the applicant certifies,
8 Existing Housing Quality Standards.
tions made by or through clearing-
and the Secretary determines, that all or
(vii) (Effective August 1, 1978.) Rela-
houses are attached and have been
part of the Community Development Pro-
tionship to previously approved goals.
considered prior to submission of the
gram activities are designed to meet other
Where an applicant does not provide
application; or
community development needs having a
goals to meet unfulfilled needs in ac-
particular urgency as specifically explained
(2) The required procedures have
cordance with 570.306(a)(5), such
in the application in accordance with
been followed and no comments or rec-
570.302(f).)
housing assistance goals will be deter-
ommendations have been received.
mined to be plainly inappropriate.
(g) It will comply with the regula-
(d) Prior to submission of its applica-
(viii) Local actions to implement
tions; policies, guidelines and require-
tion, the applicant has:
goals. An applicant shall make all ef-
ments of OMB Circular No. A-102, Re-
(1) Prepared a written citizen par-
forts to meet the goals in its three
vised, and Federal Management Circu-
ticipation plan, which:
year housing program. When actions
lar 74-4 as they relate to the applica-
(1) Provides an opportunity for citi-
tion, acceptance, and use of Federal
such as acquisition of land, formation
zens to participate in the development
funds under this Part.
of a housing authority or rezoning are
of the application, encourages the sub-
(h) It will administer and enforce
necessary for the development of
mission of views and proposals, par-
the labor standards requirements set
housing. such actions should be ac-
ticularly by residents of blighted
complished by the second year of the
forth in 570.605 and HUD regula-
neighborhoods and citizens of low- and
tions issued to implement such re-
three year housing program. HUD
moderate-income, provides for timely
quirements.
shall consider an applicant's past per-
responses to the proposals submitted,
formance in providing assisted housing
(1) It will comply with all require-
and schedules hearing at times and lo-
pursuant to the performance stan-
ments imposed by HUD concerning
cations which permit broad participa-
dards for implementing housing assis-
special requirements of law, program
tion;
requirements, and other administra-
tance plans set forth in $ 570.909 in de-
(ii) Provides citizens with adequate
tive requirements, approved in accor-
termining whether the housing assis-
information concerning the amount of
dance with OMB Circular No. A-102
tance goals are appropriate. In those
funds available for proposed communi-
Revised.
instances where an applicant's perfor-
ty development and housing activities,
(j) It will comply with the provisions
mance in the past indicates that local
the range of activities that may be un-
of Executive Order 11296, relating to
actions are required to facilitate deliv-
dertaken, and other important pro-
evaluation of flood hazards and Execu-
ery of housing resources, but the ap-
gram requirements;
plicant does not provide that such ac-
(iii) Provides for public hearings to
tive Order 11288 relating to the pre-
obtain the views of citizens on commu-
vention, control, and abatement of
tions will be undertaken on a timely
water pollution.
basis, the goals will be determined to
nity development and housing needs;
be plainly inappropriate.
and
(k) It will require every building or
(ix) Consistency with areawide hous-
(lv) Provides citizens with an oppor-
facility (other than a privately owned
ing opportunity plans. A housing as-
tunity to submit comments concerning
residential structure) designed, con-
sistance plan of a community which is
the community development perfor-
structed, or altered with funds pro-
within the jurisdiction of an areawide
mance of the applicant:
vided under this Part to comply with
(2) Followed this plan in a manner
the "American Standard Specifica-
planning organization, shall be consis-
to achieve full participation of citizens
tions for Making Buildings and Facili-
tent with the approved Areawide
Housing Opportunity Plan prepared
in development of the application. The
ties Accessible to, and Usable by, the
by the areawide planning organization
applicant shall also follow this plan to
Physically Handicapped," Number A-
pursuant to 24 CFR Part 891.
achieve full citizen participation in all
117.1-R 1971, subject to the exceptions
contained in 41 CFR 101-19.604. The
(2) General locations. The applicant
other stages of the program.
applicant will be responsible for con-
shall demonstrate by its selection of
NOTE.-The above certification on citizen
general locations that its HAP will
ducting inspections to insure compli-
participation is effective August 1. 1978. For
promote greater spatial deconcentra-
ance with these specifications by the
applications submitted to HUD prior to
contractor.
FEDERAL REGISTER, VOL 43, NO. 41-WEDNESDAY, MARCH 1, 1978
8470
RULES AND REGULATIONS
(2) It will comply with:
(m) It will comply with Section 3 of
(r) It will give HUD and the Comp-
(1) Title VI of the Civil Rights Act
the Housing and Urban Development
troller General through any autho-
of 1964 (Pub. L 88-352), and the regu-
Act of 1968, as amended, requiring
rized representatives access to and the
lations issued pursuant thereto (24
that to the greatest extent feasible op-
right to examine all records, books,
CFR Part 1), which provides that no
portunities for training and employ-
papers, or documents related to the
person in the United States shall on
ment be given to lower-Income resi-
grant.
the grounds of race, color, or national
dents of the project area and contracts
(s) It will insure that the facilities
origin, be excluded from participation
for work in connection with the pro-
under Its ownership, lease or supervi-
in, be denied the benefits of, or be oth-
ject be awarded to eligible business
sion which shall be utilized in the ac-
erwise subjected to discrimination
concerns which are located In, or
complishment of the program are not
under any program or activity for
owned in substantial part by, persons
listed on the Environmental Protec-
which the applicant receives Federal
residing in the area of the project.
tion Agency's (EPA) list of Violating
financial assistance and will immedi-
(n) It will:
Facilities and that It will notify HUD
ately take any measures necessary to
(1) To the greatest extent practica-
of the receipt of any communication
effectuate this assurance. If any real
ble under State law, comply with Sec-
from the Director of the EPA. Office
property or structure thereon Is pro-
tions 301 and 302 of Title III (Uniform
of Federal Activities indicating that a
vided or improved with the aid of Fed-
Real Property Acquisition Policy) of
facility to be used in the project is
eral financial assistance extended to
the Uniform Relocation Assistance
under consideration for listing by the
the applicant, this assurance shall ob.
and Real Property Acquisition Policies
EPA.
ligate the applicant, or in the case of
Act of 1970 and will comply with Sec-
(t) It will comply with the flood in-
any transfer of such property. any
tions 303 and 304 of Title III. and
surance purchase requirements of Sec-
transferee, for the period during
HUD implementing instructions at 24
tion 102(a) of the Flood Disaster Pro-
which the real property or structure is
CFR Part 42: and
tection Act of 1973. Pub. L 93-234, 87
used for a purpose for which the Fed-
(2) Inform affected persons of their
eral financial assistance is extended,
rights and of the acquisition policies
Stat. 975, approved December 31, 1973.
Section 103(a) required, on and after
or for another purpose involving the
and procedures set forth in the regula-
March 2, 1974, the purchase of flood
provision of similar services or bene-
tions at 24 CFR Part 42 and
insurance in communities where such
fits.
§ 570.602(b).
(o) It will:
insurance is available as a condition
(2) Title VIII of the Civil Rights Act
of 1968 (Pub. L. 90-284), as amended,
(1) Comply with Title II (Uniform
for the receipt of any Federal finan-
administering all programs and activi-
Relocation Assistance) of the Uniform
cial assistance for construction or ac-
ties relating to housing and communi-
Relocation Assistance and Real Prop-
quisition purposes for use in any area,
ty development in a manner to affir-
erty Acquistion Policies Act of 1970
that has been identified by the Secre-
matively further fair housing: and will
and HUD implementing regulations at
tary of the Department of Housing
24 CFR Part 42 and § 570.602(a);
and Urban Development as an area
take action to affirmatively further
(2) Provide relocation payments and
having special flood hazards. The
fair housing in the sale or rental of
offer relocation assistance as described
phrase "Federal financial assistance"
housing, the financing of housing, and
In Section 205 of the Uniform Reloca-
includes any form of loan, grant, guar-
the provision of brokerage services.
(3) Section 109 of the Housing and
tion Assistance Act to all persons dis-
anty, insurance payment, rebate, sub-
place as a result of acquisition of real
sidy, disaster assistance loan or grant,
Community Development Act of 1974,
and the regulations issued pursuant
property for an activity assisted under
or any other form of direct or indirect
the Community Development Block
Federal assistance.
thereto (24 CFR Part 570.601), which
provides that no person in the United
Grant Program. Such payments and
(u) It will, in connection with its per-
assistance shall be provided in a fair
formance of environmental assess-
States shall, on the grounds of race,
and consistent and equitable manner
ments under the National Environ-
color, national origin, or sex, be ex-
that insures that the relocation pro-
ment Policy Act of 1969, comply with
cluded from participation in, be denied
cess does not result in different or sep-
Section 106 of the National Historic
the benefits of, or be subjected to dis-
arate treament of such persons on ac-
Preservation Act of 1966 (16 U.S.C.
crimination under, any program or ac-
count of race, color, religion, national
470), Executive Order 11593, and the
tivity funded in whole or in part with
origin, sex, or source of income;
Preservation of Archeological and His-
funds provided under this Part.
(3) Assure that, within a reasonable
torical Data Act of 1966 (16 U.S.C.
(4) Executive Order 11063 on equal
period of time prior to displacement,
469a-1, et. seq.) by (a) consulting with
opportunity in housing and nondiscri-
comparable decent, safe and sanitary
the State Historic Preservation Officer
mination in the sale or rental of hous-
replacement dwellings will be available
to identify properties listed in or eligi-
ing built with Federal assistance.
to all displaced families and individ-
ble for inclusion in the National Regis-
(5) Executive Order 11246, and the
uals and that the range of choices
ter of Historic Places that are subject
regulations issued pursuant thereto
available to such persons will not vary
to adverse effects (See 36 CFR Part
(24 CFR Part 130 and 41 CFR Chapter
on account of their race, color, reli-
800.8) by the proposed activity, and (b)
60), and Section 4(b) of the Grant
gion, national origin, sex, or source of
complying with all requirements es-
Agreement, which provides that no
income; and
tablished by HUD to avoid or mitigate
person shall be discriminated against
(4) Inform affected. persons of the
adverse effects upon such properties.
on the basis of race, color, religion, sex
relocation assistance, policies and pro-
or national origin in all phases of em-
cedures set forth in the regulations at
§ 570.308 Timing of application submis-
ployment during the performance of
24 CFR Part 42 and § 570.602(a).
sions.
Federal or federally assisted construc-
(p) It will establish safeguards to
(a) Submission of applications. (1)
tion contracts. Contractors and sub-
prohibit employees from using posi-
In order to receive an entitlement
contractors on Federal and federally
tions for a purpose that is or gives the
grant under this Part, each applicant
assisted construction contracts shall
appearance of being motivated by a
is required to submit an application at
take affirmative action to insure fair
desire for private gain for themselves
least 75 days, but no more than 120
treatment in employment, upgrading,
or others, particularly those with
days, prior to the end of its program
demotion, or transfer; recruitment or
whom they have family, business, or
year.
recruitment advertising; layoff or ter-
other ties.
(2) An applicant which did not re-
mination, rates of pay or other forms
(q) It will comply with the provisions
ceive an entitlement grant in the pre-
of compensation and selection for
of the Hatch Act which limits the po-
vious fiscal year must apply no later
training and apprenticeship.
litical activity of employees.
than April 30.
FEDERAL REGISTER, VOL 43, NO. 41-WEDNESDAY, MARCH 1, 1978
RULES AND REGULATIONS
8471
(3) Notwithstanding other provisions
sistance to both the applicant and
plicant's certifications, statements of
of this section, no application will be
HUD if their reviews address the ap-
facts and data, and other information.
accepted between July 15 and October
plication approval criteria contained
The Secretary reserves the right, how-
1, in any year.
in 570.311(c), as well as the "subject
ever, to consider relevant evidence
(b) Program year. A program year
matter of comments and recommenda-
which challenges the certifications,
shall run for a twelve month period.
tions" in Part I. Attachment A of
and information submitted by the ap-
An applicant may, however, either
OMB Circular No. A-95, Item 5. Em-
plicant, and to require additional in-
shorten or lengthen its program year
phasis should be placed on consistency
formation or assurances from the ap-
by as much as three calendar months,
among State, areawide and local plans
plicant as warranted by such evidence.
provided:
and strategies. Compliance with envi-
(2) The review will include, but need
(1) It is for the purpose of conform-
ronmental and civil rights laws should
not be limited to, the following mat-
ing the program year to State or local
also be emphasized.
ters contained in the application and
or fiscal budgeting requirements; and
(c) Applicant actions after clearing-
the grantee performance report, or de-
(2) HUD receives written notice of a
house review. The applicant shall In-
rived from monitoring:
shortened program year at least six
clude with its application to HUD all
(1) Eligibility of proposed activities;
months prior to the date the program
clearinghouse comments, or when no
(ii) Program benefit to low- and
year would have ended if it had not
comments are received, a statement
moderate-income persons in accor-
been shortened, or in the case of a
that no comments or recommenda-
dance with the provisions of § 570.302;
lengthened program year, at least
tions have been received from the
(iii) Housing Assistance Plan confor-
three months prior to the date the
clearinghouses. Where activities are
mity to the requirements of $ 570.306;
program year would have ended if it
determined by the area wide planning
(iv) Coordination of housing assis-
had not been lengthened. An applicant
agency to be inconsistent with
tance and community development ac-
may not however, receive more than
areawide plans, the applicant shall
tivities;
one entitlement grant from a single
provide in the application to HUD an
(v) Consistency of the needs stated
Federal fiscal year appropriation.
explanation of the reasons for the in-
in the plan with generally available
consistencies.
data;
§ 570.309 Public availability of and objec-
(d) Application modification during
(vi) Appropriateness of proposed
tions to application [Reserved]
clearinghouse or HUD review. An ap-
plans and programs to meeting the ap-
plicant which revises its application
570.310 A-95 clearinghouse review and
plicant's needs and objectives;
while It is under review by a clearing-
comment.
(vii) compliance with previous con-
house or by HUD shall inform the
tract conditions or other corrective
Applicants must comply with the
clearinghouses of the revisions and, if
and remedial actions required by
procedures set forth in Part I of OMB
the application has been submitted to
HUD;
Circular No. A-95 except as modified
HUD, the number of days remaining
(viii) Experience regarding the effec-
below. In addition to rules governing
within the 75-day review period de-
tiveness of the proposed activities in
applications, these procedures also re-
scribed in 570.311(d), for HUD to
meeting the community development
quire that program amendments sub-
complete its review of the application.
needs in the locality;
mitted to HUD in accordance with
(ix) Applicant's capacity to carry out
8 570.312 shall be submitted to appro-
570.311 HUD review and approval of ap-
plication.
the program proposed as evidenced by
priate clearinghouses for a 30-day
its previous performance record; and
review and comment period.
(a) Acceptance of application. (1)
(x) Compliance with the require-
(a) Clearinghouse notification. The
Upon receipt of an application, the
ments of this Part and other applica-
A-95 requirement that clearinghouses
HUD Area Office will accept it for
ble laws and regulations.
be notified of an applicant's intent to
review, provided that:
(c) Criteria for disapproval The
apply for Federal assistance will be
(i) It has been received before the
Secretary will approve the application
satisfied by HUD. Each fiscal year
deadline for receipt of applications es-
unless:
HUD will advise the appropriate State
tablished in § 570.308(a);
(1) On the basis of significant facts
and areawide clearinghouses, with a
(ii) All of the required component
and data, generally available, and per-
copy to the applicant, of those com-
parts of the application are submitted
taining to community and housing
munities entitled to receive grants
and are properly completed;
needs and objectives, the Secretary de-
under this Part. This notification will
(iii) The funds requested do not
termines that the applicant's descrip-
be provided at least 60 days prior to
exceed the entitlement amount;
tion of such needs and objectives is
the date by which the applicant must
(iv) Any comments and recommen-
plainly inconsistent with such facts
submit the completed application to
dations received from clearinghouses,
and data. The data to be considered
HUD. Upon receipt of its copy of the
or a statement that no comments were
may be published data accessible to
HUD notification to the clearing-
received, are attached to the applica-
both the applicant and the Secretary,
houses, the applicant shall make ar-
tion; and
such as census data, or other data
rangements with the clearinghouses
(v) Any additional assurances previ-
available to both the applicant and
regarding early transmittal of infor-
ously required as a result of monitor-
the Secretary, such as recent local,
mation describing the contents of the
ing, inadequate local performance, or
areawide or State comprehensive plan-
application. An applicant wishing to
audit findings, are Included.
ning data.
submit its application to HUD before
(2) If the application is accepted in
(2) On the basis of the application,
February 1 of each year shall provide
accordance with the preceding para-
the Secretary determines that the ac-
its own notice of intent to file with the
graph, the date of acceptance of the
tivities to be undertaken are plainly
appropriate clearinghouses in accor-
application will be the date of receipt
inappropriate to meeting the needs
dance with the usual A-95 procedures.
of the application in the HUD field
and objectives identified by the appli-
(b) Clearinghouse review of applica-
office, and the applicant will be so no-
cant. The following are examples of
tion. Unless the requirement is waived
tified in writing. If the application is
situations in which activities may be
by a clearinghouse, the applicant shall
not accepted for review, the applicant
determined to be "plainly inappropri-
provide the clearinghouses a period of
will be so notified in writing, and will
ate" to meeting the identified needs of
45 calendar days to review the com-
be advised of the specific reasons for
the applicant:
pleted application and transmit to the
nonacceptance.
(1) Experience over a period of time
applicant any comments or recommen-
(b) Scope of review. (1) HUD will
has demonstrated that the types of ac-
dations. Clearinghouses will be of as-
normally base its review upon the ap-
tivities proposed have not been or are
FEDERAL REGISTER, VOL 43, NO. 41-WEDNESDAY, MARCH 1, 1978
8472
RULES AND REGULATIONS
unlikely to be effective in alleviating
in which case the full entitlement
tent with the three-year project sum-
the conditions they were designed to
amount will be approved but the obli-
mary included in its community devel-
affect;
gation and utilization of funds for af-
opment plan, it shall submit an
(ii) The applicant has identified
fected activities will be restricted. Con-
amended community development
areas containing significant concentra-
ditional approvals may be made
plan summary to HUD at the same
tions of deteriorated housing and
where:
time the proposed program amend-
blight and does not propose to under-
(1) Local environmental reviews
ment is submitted.
take a concentrated program of activi-
under 570.603 have not yet been com-
(b) Housing Assistance Plan Amend-
ties in any such areas;
pleted;
ments. The recipient shall request
(iii) The proposed program does not
(2) The requirements of I 570.607 re-
prior HUD approval of Housing Assis-
principally benefit low- and moderate-
garding the provision of public ser-
tance Plan amendments when any of
income persons under the require-
vices and flood or drainage facilities
the following conditions exist:
ments of § 570.302;
have not yet been satisfied; or
(1) The recipient proposes a reduc-
(iv) Proposed activities will have a
(3) There is substantial evidence
tion of any goal for housing assistance
detrimental effect on low- and moder-
that there has been, or there will be, a
lack of substantial progress, noncon-
pursuant to 570.306(b)(3)(i) or
ate-income persons or members of mi-
§ 570.306(b)(4)(i);
nority groups and adequate measures
formance, noncompliance, or a lack of
continuing capacity, as described in
(2) The recipient proposes the inclu-
to mitigate such effects are not pro-
§ 570.909. In such case, the reason for
sion of a goal by household type or
posed;
(v) Housing goals, locations, and
the conditional approval and the ac-
housing type, not previously specified
tions necessary to remove the condi-
pursuant to 570.306 (b)(3)(i) or
strategy do not meet the criteria of
& 570.306(c);
tion shall be specified. Failure to satis-
(b)(4)(i);
fy the condition may result in a reduc-
(3) The recipient proposes to exceed
(vi) Actions essential to accomplish
housing assistance goals, including
tion in the annual grant amounts pur-
any three year goal by housing type or
supportive community development
suant to 570.910(b)(10) or 570.911.
household type by the percentage
cited in 24 CFR Part 891;
activities, are not proposed;
570.312 Amendments.
(4) The recipient proposes a revision
(vii) The proposed program does not
(a) Community Development Pro-
of the general locations for assisted
reflect previous requirements of the
gram amendments. A recipient shall
housing established pursuant to
Secretary for corrective or remedial
actions, or activities proposed have
submit an amended application to the
$ 570.306(b)(3)(ii); or
previously been the basis of such re-
HUD Area Office when:
(5) There is a significant change in,
quirements.
(1) The recipient proposes to use
or new data available regarding. the
(3) The Secretary determines that
more than 10 percent of the entitle-
conditions of the housing stock or the
the application does not comply with
ment amount approved for the affect-
housing needs of lower-income per-
ed program year to undertake one or
sons.
the requirements of this Part with
specific regard to the primary pur-
more new activities, other than local
(c) Scope of submission. Only the
option activities pursuant to $ 570.600
following documentation must be sub-
poses of principally benefitting per-
and disaster activities pursuant to 24
mitted in support of a request for an
sons of low- and moderate-Income or
CFR 8 58.6.
aiding in the prevention or elimination
amendment to an approved applica-
(2) The recipient proposes to alter
tion:
of slums or blight, or other applicable
law, or proposes activities which are
the stated purpose, location, or class
(1) The elements of the approved ap-
ineligible under this Part.
of beneficiaries of previously approved
plication to be changed, such as the
activities whose cost exceeds 10 per-
affected portions of the annual Com-
(d) Timing. The Secretary will
notify the applicant in writing within
cent of the entitlement amount ap-
munity Development Program;
proved for the affected program year.
(2) The certifications described in
75 days, but not less than 45 days, of
(3) The combination of proposed
570.307; and
the date of receipt of the application,
new activities (other than local option
that the application has been either
(3) Documentation regarding A-95
activities and disaster activities) and
clearinghouse reviews as described in
approved or disapproved. In the event
changes in the purpose, location, or
570.310(c).
the Secretary has not mailed a notifi-
class of beneficiaries of previously ap-
(d) Response to requested amend-
cation to the applicant within 75 days
proved activities involves more than 10
ments. Within 30 days of the date of
from the date of acceptance of a com-
percent of the entitlement amount ap-
pleted application the application
receipt of the proposed amendment,
proved for the affected program year.
HUD will notify the recipient in writ-
shall be deemed to be approved. If the
(4) The cumulative effect of a
application is disapproved the appli-
ing that the amendment has been ap-
number of smaller changes involving
cant shall be informed of the specific
proved, disapproved, or conditionally
new activities (other than local option
reasons for disapproval.
approved pursuant to § 570.311(f), or,
activities and disaster activities) or
if a final decision on the amendment
(e) Reduction of grant. The Secre-
changes in the purpose, location, or
has not as yet been made, the date by
tary may approve an application for
class of beneficiaries of approved ac-
which the recipient will be notified of
an amount less than the full entitle-
tivities exceeds 10 percent of the enti-
the final decision. In the event HUD
ment for the following reasons:
tlement amount approved for the af-
has not mailed a notification to the re-
(1) Activities are not eligible under
fected program year. In such in-
Subpart C and funds are not repro-
stances, the recipient shall Include in
cipient within that 30-day period, the
grammed to eligible activities within
its request for amendment documenta-
amendment shall be deemed approved.
the 75-day review period;
tion describing the smaller changes
If the proposed amendment is disap-
previously made, as well as those being
proved, the recipient shall be informed
(2) Activities do not meet other pro-
proposed. After the amendment is ap-
of the specific reasons for disapproval.
gram requirements, such as benefits to
proved by HUD, the accrual of smaller
(3) Other changes. Changes not cov-
low- and moderate-income persons de-
scribed in § 570.302; or
changes begins again.
ered in paragraphs (a) or (b) of this
(3) The recipient's performance does
(5) The recipient proposes to reduce
section including local option and di-
not meet the standards prescribed in
the amount of funds previously ap-
saster activities, do not require prior
570.909 and a reduction is appropri-
proved for completion of urban renew-
HUD approval, but shall be reported
ate pursuant to $ 570.911.
al projects.
to HUD as part of the annual perfor-
(f) Conditional approval. The Secre-
mance report described in § 570.906.
When the recipient proposes to under-
(f) Citizen participation. All amend-
tary may make a conditional approval,
take activities which are not consis-
ments and other changes to the Com-
FEDERAL REGISTER, VOL 43, NO. 41-WEDNESDAY, MARCH 1, 1978
RULES AND REGULATIONS
8473
munity Development Program. com-
tivities conducted under this Part In
11. In $ 570.404, paragraph
munity development plan and Housing
meeting local needs and objectives and
(c)(4)(iI)(D) is deleted and reserved.
Assistance Plan require citizen partici-
national objectives of the block grant
12. In 570.404(c)(4)(ii)(E), the refer-
pation. Formal public hearings, how-
program.
ence to 570.303(e), except for (e)(4)"
ever, are required only when prior
(3) Persons benefitting. The report
is changed to 570.307, except for
HUD approval of application amend-
shall include an analysis of the per-
paragraph (d)."
ments is required. Citizen participa-
sons actually benefitting from activi-
ties carried out under the program.
570.405 [Amended]
tion requirements do not apply, how-
ever, to disaster activities.
(4) Housing assistance. The appll-
13. In 570.405, the reference to
(g) A-95 review. The recipient shall
cant shall describe progress in carry-
570.303" is changed to "Subpart D."
provide the State and areawide
ing out the Housing Assistance Plan,
clearinghouses with 30 days for review
including actions taken to further fair
570.406 [Amended]
and comment prior to submission of
housing.
14. In 570.406(c)(5), the reference
an application amendment for prior
(5) Citizen participation. The appli-
to 570.303(e), except for (4) and (6)"
cant shall describe the actions It has
HUD approval.
is changed to 570.307, except for
(h) Environment. The recipient
taken to comply with the require-
ments of § 570.303, and include (1)
paragraphs (d) and (f)."
shall comply with applicable provi-
sions of 24 CFR Part 58 respecting all
copies of comments submitted by citi-
570.407 [Amended]
zens regarding the applicant's commu-
amendments.
nity development performance; (ii) the
15. In 570.407(e), the reference to
III. Section 570.906 is revised to read
applicant's assessment of such com-
"§ 570.303" is changed to "Subpart D."
as follows:
ments; and (111) a summary of any ac-
16. In § 570.407(e)(1), the references
tions taken in response to the com-
to 570.303(a)" and 570.303(b)" are
570.906 Performance report.
ments received.
changed to 570.304" and 570.305,"
(a) Submission requirements. (1)
(6) Equal opportunity. The applicant
respectively.
Each entitlement recipient shall
shall present evidence of compliance
17. In § 570.407(e)(3), the reference
submit a performance report to HUD
with the certifications required by
to 570.303(c)" is changed to
no later than the end of the eighth
570.307(1).
"§ 570.306(b)."
month of each program year. The
IV. Conforming and technical
18. In 570.407(e)(4), the reference
report shall cover a twelve month
changes are made to Part 570 as fol-
to 570.303(e), except for (4) and (6)"
period ending with the sixth month of
lows:
is changed to 570.307, except for
the program year.
paragraphs (d) and (f)."
(2) A copy of the performance report
§ 570.400 [Amended]
shall be submitted to the appropriate
1. In 570.400(a), the reference to
§ 570.503 [Amended]
A-95 State and areawide clearing-
"Subparts A, B. C, F, G, H, I, and J" is
19. In 570.503(a), the reference to
houses for informational purposes at
changed to "Subparts A, B, C, J, K,
"§ 570.306(e)" is changed to
the time It is submitted to HUD.
and O."
"§ 570.311(f)."
(3) The recipient shall make the
2. In 570.400(f), the reference to
report available to citizens at no
570.306(e)"
is
changed
to
$ 570.504 [Amended]
charge and shall make public notice of
570.311(f)."
20. In 570.504, the reference to
the availability of the report at the
570.306(e)," Is changed to
time it is submitted.
§ 570.401 [Amended]
570.311(f)."
(4) The requirements for submission
3. In 570.401(c), the reference to
of performance reports by discretion-
"§ 570.303(e) except for (4) and (6)" is
$ 570.600 [Amended]
ary grant recipients are set forth in
changed to 570.307 except for para-
21. In § 570.600, the references to
$ 570.400(h).
graphs (d) and (f)."
570.303(b)" and 570.306(e)" are
(b) Content of report. The report
changed to 570.305" and
shall include the following compo-
$570.403 [Amended]
570.311(f)," respectively.
nents in a format to be prescribed:
4. In § 570.403(c)(3), the reference to
(1) Progress on planned activities.
"§ 570.303(e) (1), (3), (5) if applicable,
§ 570.804 [Amended]
The report shall describe progress on
(7), (8), (11), (12) if applicable, and (13)
22. In § 570.804(b), the references to
each project and activity that was to
if applicable" is changed to "§ 570.307
be carried out under approved applica-
"§ 570.305," 570.303," 570.306,"
(a), (c), (e) if applicable, (g), (h), (1),
and 570.303" are changed to
tions since the inception of the appli-
(m), (n) if applicable and (o) if applica-
570.312," 570.300(b) or (c),"
cant's block grant program, excluding
ble."
570.311," and 570.300(c)," respec-
projects or activities reported as com-
5. In § 570.403(e)(2), the reference to
tively.
pleted in a previous report. The report
"Subpart G" is changed to "Subpart
23. In 570.804(b)(7)(ii), the refer-
shall list each project and activity by
K."
ence to "§ 570.303(c)" is changed to
the program year in which it was ap-
proved and provide cumulative infor-
570.404 [Amended]
"$ 570.306."
24. In 570.804(b)(7)(vi), the refer-
mation on the following:
6. In 570.404(b)(3)(A), the reference
ence to "Subpart J" is changed to
(i) Amount of funds obligated and
to 570.303(b)" is changed to
"Subpart O."
expended;
"§ 570.305."
(ii) Environmental status including
7. In 570.404(b)(3)(B), the reference
§ 570.900 [Amended]
the date of HUD release of funds;
to 570.303(c)" is changed to
(iii) The administrative unit having
570.306(b).'
25. In § 570.900, paragraph (d) is de-
8. In 570.404, paragraph (b)(3)(c) is
leted.
lead responsibility;
(iv) The steps taken to carry out the
deleted and reserved.
§ 570.907 [Amended]
project, such as advertisement for
9. In 570.404(b)(3)(D), the refer-
bids, completion of a specified percent.
ence to "§ 570.303(e), except for (e)(4)"
26. In 570.907(b), the reference to
age of construction, etc.
is changed to § 570.307, except for
570.900(d)" is changed to
(2) Recipient assessment. The report
paragraph (d)."
570.303."
shall include the recipient's assess-
10. In 570.404(c)(4)(ii)(B), the refer-
27. In 570.907(c), the reference to
ment of the effectiveness of the pro-
énce to 570.303(b)" is changed to
570.303(b)"
is
changed
to
gram of community development ac-
"§ 570.305."
570.305."
FEDERAL REGISTER, VOL 43, NO. 41-WEDNESDAY, MARCH 1, 1978
8474
RULES AND REGULATIONS
I 570.909 [Amended]
28. In I 570.909(f)(1), the reference
to "§ 570.305" is changed to
"§ § 570.312."
29. In 8 570.909(f)(1)(1), the refer-
ences
to
"§ 570.303(e)(6)" and
"§ $ 570.305"
are
changed
to
"§ § 570.307(f)" and "§ 570.312," respec-
tively.
$ 570.910 [Amended]
30. In 8 570.910(b)(4), the reference
to "§ 570.308(b)(1)" is changed to
"§ 570.311(b)(1)."
31. In $ 570.910(b)(9), the reference
to "§ 570.306(e)(3)" is changed to
"§ § 570.311(f)(3)."
32. In $ 570.910(b)(10), the reference
to "§ 570.306(e)(3)" is changed to
"§ § 570.311(f)(3)."
33. In §§ 570.403(e)(1), 570.502(a)(2),
570.505, 570.506 (a) and (b), 570.507,
570.508, 570.512(d), 570.905(b), and
570.907(a), the reference to "Federal
Management Circular 74-7" is
changed to "OMB Circular No. A-
102."
[Title I. Housing and Community Develop-
ment Act of 1974 (42 U.S.C. 5301 et seq.);
Title I, Housing and Community Develop-
ment Act of 1977 (Pub. L. 95-128); and sec.
7(d), Department of Housing and Urban De-
velopment Act (42 U.S.C. 3535(d).)]
Issued at Washington, D.C., Febru-
ary 22, 1978.
ROBERT C. EMBRY, Jr.,
Assistant Secretary for Community
Planning and Development.
[FR Doc. 78-5180 Filed 2-23-78; 2:24 pm]
FEDERAL REGISTER, VOL 43, NO. 41-WEDNESDAY, MARCH 1, 1978
Short grant proposal
for Exec Air.
for Center
A. Statement freed
or justification
- Aescribe need
for and Davis for
Carter
- Explain how city
(31/2 will to corp.
will make grout
for work on center
provided we cen
it
(sefer of inc. & fudges)
- Therefore: : We
need Can exec
or office & staff
B. Purpose / Role of
Exec Air.
- Rongh out job
qualifications descrip. and
- Explain that
were located
qualified in
several lically
C
Budget
- State Current of
funds requested
1 Specify how
funds will be used/
projected budget
- State that
funds would be
maneged by
CAFL tempressily
descrite CBFL5
this qualifications for
Gift. of incorp, budget intorio
report, CBFL CEA prop documents
Conter plans, etc.
10/1/1003
Ы
for barrier free living post office box 20803 houston, texas 77025
ORGANIZATIONAL DESCRIPTION:
The Coalition for Barrier Free Living is a consumer-
oriented, Houston based non-profit organization composed
of handicapped people and non-handicapped supporters. It
has a dues paying membership of approximately 300 persons,
among them educators, counselors, government officials,
doctors architects, and many other representatives of
various professions. The Coalition has existed since 1975
and is dedicated to making the living environment in
Houston more hospitable for disabled people. It has sought
to achieve this goal through involvement with governmental
and non-governmental groups in the fields of transportation,
housing, architectural design, mass media, and education.
Coalition policy is set by a board elected from the
membership. The board meets monthly and the general mem-
bership meets every two months. The board members are
very active in the functioning of the Coalition and are
assisted in their efforts by two fulltime VISTA volun-
teers. The Coalition office is located in Easter Seals
Headquarters, 3630 West Dallas. The office number is
526-1651.
coolition for barrier free living post office box 20803 houston, texas 77025
K
STATEMENT OF NEED:
Since the Coalition for Barrier Free Living came into
existence in 1975, it has sought to fill a huge gap in
services for Houston's handicapped population. That gap
can be summarized as follows:
Although there are numerous facilities in Houston
addressed to the medical and educational needs of the
physically disabled, there are very few programs and agencies
who even recognize, let alone address, the needs of the
disabled population to:
1. Socialize and Communicate in an environment in
which the disabled person is neither a patient nor a client
but rather a participant among peers.
2. Communicate important issues and discuss relevent
needs unique to the disabled population through a media
form controlled and designed by and for disabled people.
3. Be informed of all legal and financial resources
and remedies available to disabled persons. The disabled,
particularly the newly disabled and under-educated disabled
people, are extremely vulnerable to discrimination and
loss of opportunity due to lack of financial and legal in-
formation.
Houston's vast and constantly burgeoning population
probably contains over 100,000 disabled persons. The
national average as measured by the Department of Health,
Education, and Welfare is one disabled person for every
eleven Americans. 1970 U.S. Census figures for Harris
County listed over 96,000 between the ages of 16 and
60 as "totally disabled."
The Coalition for Barrier Free Living is working with
the Houston Public Transportation Department to assure
an inexpensive, reliable means of public transport for
disabled people, who have largely been ignored in past
design and implementation of public and private transit
systems. The Coalition is also represented in working arran-
gements with Houston Community Development, Houston Housing
Authority, Houston Independent School District, City Parks
and Recreation, and other municipal, county, state, and
federal agencies charged with the responsibility of delivering
services that improve personal living conditions within
our society.
Having made significant gains in the areas of
public transport and architectural design for Houston's
disabled population, the Coalition now has the experience
and organizational expertise to begin addressing the
social and consumer needs of the disabled. We present the
following three proposals as an introductory effort to
meet the informational needs of disabled Houstonians:
1. A monthly newspaper edited by a disabled journalist
containing hard news, features, and service columns
presenting information and issues pertaining to the
disabled community. At present the Coalition publishes
a monthly paper, FREEWHEELING, in an offset, four-page
tabloid format. To establish FREEWHEELING as an effective
voice for the disabled in Houston, office space, equipment,
and the salary to pay a fulltime editor are needed.
These needs are detailed in the budget section of this
proposal. Also included are several copies of FREEWHEELING
as it is currently being published. At present a non-
disabled VISTA volunteer with journalism experience
handles most of the editing chores. With proper funding
the paper will be edited by a disabled journalism graduate.
In the process this person will receive valuable on-
the-job journalism experience and further her or his
future in the field of journalism.
2. A Financial and Legal Advocacy program em-
ploying disabled legal and financial counselors who
would work with both individuals seeking advice and
institutional and agency workers seeking aid and infor-
mation for their clients. The legal counselor might or
might not have a law degree and would be expected to
organize lawyer volunteers from this area to advise and
represent handicapped persons.
The financial counselor would gather information on
what local, state, and federal programs exist to aid
the handicapped and would make that information available
to handicapped individuals and those agency employees
serving their interests. This person should have a
background in counseling and social work and have
good organizational abilities.
3. Peer Counseling- Almost every major event in
our lives has to be experienced personally in order to
be completely understood. Traumatic injury and severe
physical disability produce physical and emotional changes
far more radical than most of us will experience in our
lifetimes. These far-reaching changes are difficult to
cope with under the best circumstances. The people who
understand these changes and their after-effects best
are the people who experience them firsthand- namely
disabled people themselves. The trained disabled counselor
can relate to newly disabled persons in a unique way.
Because he or she has experienced disability, the counselor has
the keys to reach other disabled people who are convinced
no one can understand what they are experiencing.
Numerous successful peer counseling programs,
particularly those at the Berkeley Center for Independent
Living and the Boston Center for Independent Living,
testify to the value of this approach.
The counselor will organize groups of newly disabled
persons and those disabled persons who are having difficulties
leading independent, self-realized lives. Participants
will share their personal experiences, their fears,
strengths, and ambitions. In such an atmosphere the
facilitator eventually becomes a member, and the group
discussion focuses not on disability as a problem to be
overcome but instead works on the positive achievements
and potential achievements of the members.
The Houston program will initially consist of
a project director, who will be disabled and trained
in couseling techniques, and four part time facilitators,
who will initially organize the groups. These facilitators
will be handicapped people who lead successful lives
and pursue active careers in the Houston area.
MILLERS FALLS
SE
YEARLY
PROGRAM BUDGET
MONTHLY NEWSPAPER:
SALARY OR COSTS
FULLTIME
EDITOR
$10,000
PUBLISHING COSTS
$ 2,400
EQUIPMENT
$ 2,000
OFFICE SPACE
$ 1,200
OPERATING FUND
$ 600
$16,000
Coolition for barrier free living post office box 20803 houston, texas 77025
Ы
YEARLY PROGRAM
BUDGET
Yearly
LEGAL AND FINANCIAL
Costs or
COUNSELING
Salaries
Financial Counselor
$10,000
Legal Counselor
$12,000
Consultant costs
$ 4,500
Office Space
$ 600
Telephone
$ 1,000
$27,600
PEER COUNSELING
Director
$ 9,600
Four part-time facilitators
$14,400
Office Space
$ 1,200
Telephone
$ 600
Training Materials
$ 500
$26,300