cfr_sections
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127 rows where part_number = 570 and title_number = 24 sorted by section_id
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| section_id ▼ | title_number | title_name | chapter | subchapter | part_number | part_name | subpart | subpart_name | section_number | section_heading | agency | authority | source_citation | amendment_citations | full_text |
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| 24:24:3.1.1.3.3.1.1.1 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | A | Subpart A—General Provisions | § 570.1 Purpose and primary objective. | HUD | [53 FR 34437, Sept. 6, 1988, as amended at 56 FR 56126, Oct. 31, 1991; 61 FR 11475, Mar. 20, 1996; 69 FR 32778, June 10, 2004] | (a) This part describes policies and procedures applicable to the following programs authorized under title I of the Housing and Community Development Act of 1974, as amended: (1) Entitlement grants program (subpart D); (2) Nonentitlement Funds: HUD-administered Small Cities and Insular Area programs (subpart F); (3) State program: State-administered CDBG nonentitlement funds (subpart I); (4) Special Purpose Grants (subpart E); (5) Urban Development Action Grant program (subpart G); and (6) Loan Guarantees (subpart M). (b) Subparts A, C, J, K, and O apply to all programs in paragraph (a) except as modified or limited under the provisions of these subparts or the applicable program regulations. In the application of the subparts to Special Purpose Grants or the Urban Development Action Grant program, the reference to funds in the form of grants in the term “CDBG funds”, as defined in § 570.3, shall mean the grant funds under those programs. The subparts do not apply to the State program (subpart I) except to the extent expressly referred to. (c) The primary objective of the programs authorized under title I of the Housing and Community Development Act of 1974, as amended, is described in section 101(c) of the Act (42 U.S.C. 5301(c)). | |||
| 24:24:3.1.1.3.3.1.1.2 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | A | Subpart A—General Provisions | § 570.3 Definitions. | HUD | [53 FR 34437, Sept. 6, 1988; 53 FR 41330, Oct. 21, 1988, as amended at 56 FR 56126, Oct. 31, 1991; 60 FR 1915, 1943, Jan. 5, 1995; 60 FR 56909, Nov. 9, 1995; 61 FR 5209, Feb. 9, 1996; 61 FR 11475, Mar. 20, 1996; 61 FR 18674, Apr. 29, 1996; 68 FR 69582, Dec. 12, 2003; 69 FR 32778, June 10, 2004; 77 FR 5675, Feb. 3, 2012; 80 FR 42366, July 16, 2015; 80 FR 69870, Nov. 12, 2015; 85 FR 47910, Aug. 7, 2020; 88 FR 9665, Feb. 14, 2023] | The terms Affirmatively Furthering Fair Housing, HUD, and Secretary are defined in 24 CFR part 5. All of the following definitions in this section that rely on data from the United States Bureau of the Census shall rely upon the data available from the latest decennial census or the American Community Survey. Act means title I of the Housing and Community Development Act of 1974 as amended (42 U.S.C. 5301 et seq. ). Age of housing means the number of year-round housing units, as further defined in section 102(a)(11) of the Act. Applicant means a State or unit of general local government that makes application pursuant to the provisions of subpart E, F, G or M. Buildings for the general conduct of government shall have the meaning provided in section 102(a)(21) of the Act. CDBG funds means Community Development Block Grant funds, including funds received in the form of grants under subpart D, F, or § 570.405 of this part, funds awarded under section 108(q) of the Housing and Community Development Act of 1974, loans guaranteed under subpart M of this part, urban renewal surplus grant funds, and program income as defined in § 570.500(a). Chief executive officer of a State or unit of general local government means the elected official or the legally designated official, who has the primary responsibility for the conduct of that entity's governmental affairs. Examples of the “chief executive officer” of a unit of general local government are: the elected mayor of a municipality; the elected county executive of a county; the chairperson of a county commission or board in a county that has no elected county executive; and the official designated pursuant to law by the governing body of a unit of general local government. City means the following: (1) For purposes of Entitlement Community Development Block Grant and Urban Development Action Grant eligibility: (i) Any unit of general local government that is classified as a municipality by the United States Bureau of the Census, or (ii) Any other unit of… | |||
| 24:24:3.1.1.3.3.1.1.3 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | A | Subpart A—General Provisions | § 570.4 Allocation of funds. | HUD | [53 FR 34437, Sept. 6, 1988, as amended at 68 FR 69582, Dec. 12, 2003; 69 FR 32778, June 10, 2004] | (a) The determination of eligibility of units of general local government to receive entitlement grants, the entitlement amounts, the allocation of appropriated funds to States for use in nonentitlement areas, the reallocation of funds, the allocation of appropriated funds to insular areas, and the allocation of appropriated funds for discretionary grants under the Secretary's Fund shall be governed by the policies and procedures described in sections 106 and 107 of the Act, as appropriate. (b) The definitions in § 570.3 shall govern in applying the policies and procedures described in sections 106 and 107 of the Act. (c) In determining eligibility for entitlement and in allocating funds under section 106 of the Act for any federal fiscal year, HUD will recognize corporate status and geographical boundaries and the status of metropolitan areas and principal cities effective as of July 1 preceding such federal fiscal year, subject to the following limitations: (1) With respect to corporate status as certified by the applicable State and available for processing by the Census Bureau as of such date; (2) With respect to boundary changes or annexations, as are used by the Census Bureau in preparing population estimates for all general purpose governmental units and are available for processing by the Census Bureau as of such date, except that any such boundary changes or annexations which result in the population of a unit of general local government reaching or exceeding 50,000 shall be recognized for this purpose whether or not such changes are used by the Census Bureau in preparing such population estimates; and (3) With respect to the status of Metropolitan Statistical Areas and principal cities, as officially designated by the Office of Management and Budget as of such date. (d) In determining whether a county qualifies as an urban county, and in computing entitlement amounts for urban counties, the demographic values of population, poverty, housing overcrowding, and age of housing of any Indian tribes loc… | |||
| 24:24:3.1.1.3.3.1.1.4 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | A | Subpart A—General Provisions | § 570.5 Waivers. | HUD | [61 FR 11476, Mar. 20, 1996] | HUD's authority for the waiver of regulations and for the suspension of requirements to address damage in a Presidentially declared disaster area is described in 24 CFR part 5 and in section 122 of the Act, respectively. | |||
| 24:24:3.1.1.3.3.10.1.1 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | J | Subpart J—Grant Administration | § 570.500 Definitions. | HUD | [53 FR 8058, Mar. 11, 1988, as amended at 57 FR 27120, June 17, 1992; 60 FR 1952, Jan. 5, 1995; 60 FR 17445, Apr. 6, 1995; 60 FR 56914, Nov. 9, 1995; 80 FR 75937, Dec. 7, 2015] | For the purposes of this subpart, the following terms shall apply: (a) Program income means gross income received by the recipient or a subrecipient directly generated from the use of CDBG funds, except as provided in paragraph (a)(4) of this section. (1) Program income includes, but is not limited to, the following: (i) Proceeds from the disposition by sale or long-term lease of real property purchased or improved with CDBG funds; (ii) Proceeds from the disposition of equipment purchased with CDBG funds; (iii) Gross income from the use or rental of real or personal property acquired by the recipient or by a subrecipient with CDBG funds, less costs incidental to generation of the income; (iv) Gross income from the use or rental of real property, owned by the recipient or by a subrecipient, that was constructed or improved with CDBG funds, less costs incidental to generation of the income; (v) Payments of principal and interest on loans made using CDBG funds, except as provided in paragraph (a)(3) of this section; (vi) Proceeds from the sale of loans made with CDBG funds; (vii) Proceeds from sale of obligations secured by loans made with CDBG funds; (viii) [Reserved] (ix) Interest earned on program income pending its disposition; and (x) Funds collected through special assessments made against properties owned and occupied by households not of low and moderate income, where the assessments are used to recover all or part of the CDBG portion of a public improvement. (2) Program income does not include income earned (except for interest described in § 570.513) on grant advances from the U.S. Treasury. The following items of income earned on grant advances must be remitted to HUD for transmittal to the U.S. Treasury, and will not be reallocated under section 106(c) or (d) of the Act: (i) Interest earned from the investment of the initial proceeds of a grant advance by the U.S. Treasury; (ii) Interest earned on loans or other forms of assistance provided with CDBG funds that are used for activities … | |||
| 24:24:3.1.1.3.3.10.1.10 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | J | Subpart J—Grant Administration | § 570.509 Grant closeout procedures. | HUD | [53 FR 8058, Mar. 11, 1988, as amended at 56 FR 56128, Oct. 31, 1991; 60 FR 1916, Jan. 5, 1995; 60 FR 16379, Mar. 30, 1995; 80 FR 69873, Nov. 12, 2015; 80 FR 75938, Dec. 7, 2015] | (a) Criteria for closeout. HUD may make grant closeout determinations for individual grants or multiple grants simultaneously. A grant will be closed out when HUD determines, in consultation with the recipient, that the following criteria have been met: (1) All costs to be paid with CDBG funds from a given origin year's grant have been expended and drawn down, with the exception of closeout costs (e.g., audit costs) and costs resulting from contingent liabilities described in the closeout agreement pursuant to paragraph (c) of this section. Contingent liabilities include, but are not limited to, third-party claims against the recipient, as well as related administrative costs. (2) All activities for which funds were expended from the origin year grant are physically completed, are eligible, have met a national objective under § 570.208, and the grantee has reported on all accomplishments resulting from the activity. (3) A final performance and expenditure report for completed activities has been submitted to HUD pursuant to 24 CFR 91.520, and HUD has determined the plan is satisfactory. (4) All program income received by the grantee during the grantee program year associated with the origin year grant has been expended, or identified in a more recent program year's Action Plan, pursuant to 24 CFR 91.220(l). (5) For origin year 2015 grants and subsequent grants, the grantee has expended no more than 20 percent of the origin year grant for planning and program administrative costs, under § 570.200(g)(1). (6) Other responsibilities of the recipient under the grant agreement and applicable laws and regulations appear to have been carried out satisfactorily or there is no further Federal interest in keeping the grant agreement open for the purpose of securing performance. (b) Closeout actions. (1) Based on the information provided in the performance report and other relevant information, HUD, in consultation with the recipient, will prepare a closeout agreement in accordance with paragraph (c) of this secti… | |||
| 24:24:3.1.1.3.3.10.1.11 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | J | Subpart J—Grant Administration | § 570.510 Transferring projects from urban counties to metropolitan cities. | HUD | Section 106(c)(3) of the Act authorizes the Secretary to transfer unobligated grant funds from an urban county to a new metropolitan city, provided: the city was an included unit of general local government in the urban county immediately before its qualification as a metropolitan city; the funds to be transferred were received by the county before the qualification of the city as a metropolitan city; the funds to be transferred had been programmed by the urban county for use in the city before such qualification; and the city and county agree to transfer responsibility for the administration of the funds being transferred from the county's letter of credit to the city's letter of credit. The following rules apply to the transfer of responsibility for an activity from an urban county to the new metropolitan city. (a) The urban county and the metropolitan city must execute a legally binding agreement which shall specify: (1) The amount of funds to be transferred from the urban county's letter of credit to the metropolitan city's letter of credit; (2) The activities to be carried out by the city with the funds being transferred; (3) The county's responsibility for all expenditures and unliquidated obligations associated with the activities before the time of transfer, including a statement that responsibility for all audit and monitoring findings associated with those expenditures and obligations shall remain with the county; (4) The responsibility of the metropolitan city for all other audit and monitoring findings; (5) How program income (if any) from the activities specified shall be divided between the metropolitan city and the urban county; and (6) Such other provisions as may be required by HUD. (b) Upon receipt of a request for the transfer of funds from an urban county to a metropolitan city and a copy of the executed agreement, HUD, in consultation with the Department of the Treasury, shall establish a date upon which the funds shall be transferred from the letter of credit of the urban county to t… | ||||
| 24:24:3.1.1.3.3.10.1.12 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | J | Subpart J—Grant Administration | § 570.511 Use of escrow accounts for rehabilitation of privately owned residential property. | HUD | [55 FR 32369, Aug. 8, 1990, as amended at 80 FR 75938, Dec. 7, 2015] | (a) Limitations. A recipient may withdraw funds from its letter of credit for immediate deposit into an escrow account for use in funding loans and grants for the rehabilitation of privately owned residential property under § 570.202(a)(1). The following additional limitations apply to the use of escrow accounts for residential rehabilitation loans and grants closed after September 7, 1990: (1) The use of escrow accounts under this section is limited to loans and grants for the rehabilitation of primarily residential properties containing no more than four dwelling units (and accessory neighborhood-scale non-residential space within the same structure, if any, e.g., a store front below a dwelling unit). (2) An escrow account shall not be used unless the contract between the property owner and the contractor selected to do the rehabilitation work specifically provides that payment to the contractor shall be made through an escrow account maintained by the recipient, by a subrecipient as defined in § 570.500(c), by a public agency designated under § 570.501(a), or by an agent under a procurement contact governed by the requirements of 2 CFR part 200, subpart D. No deposit to the escrow account shall be made until after the contract has been executed between the property owner and the rehabilitation contractor. (3) All funds withdrawn under this section shall be deposited into one interest earning account with a financial institution. Separate bank accounts shall not be established for individual loans and grants. (4) The amount of funds deposited into an escrow account shall be limited to the amount expected to be disbursed within 10 working days from the date of deposit. If the escrow account, for whatever reason, at any time contains funds exceeding 10 days cash needs, the grantee immediately shall transfer the excess funds to its program account. In the program account, the excess funds shall be treated as funds erroneously drawn in accordance with the requirements of U.S. Treasury Financial Manual, para… | |||
| 24:24:3.1.1.3.3.10.1.13 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | J | Subpart J—Grant Administration | § 570.512 [Reserved] | HUD | |||||
| 24:24:3.1.1.3.3.10.1.14 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | J | Subpart J—Grant Administration | § 570.513 Lump sum drawdown for financing of property rehabilitation activities. | HUD | [53 FR 8058, Mar. 11, 1988, as amended at 80 FR 69873, Nov. 12, 2015] | Subject to the conditions prescribed in this section, recipients may draw funds from the letter of credit in a lump sum to establish a rehabilitation fund in one or more private financial institutions for the purpose of financing the rehabilitation of privately owned properties. The fund may be used in conjunction with various rehabilitation financing techniques, including loans, interest subsidies, loan guarantees, loan reserves, or such other uses as may be approved by HUD consistent with the objectives of this section. The fund may also be used for making grants, but only for the purpose of leveraging non-CDBG funds for the rehabilitation of the same property. (a) Limitation on drawdown of grant funds. (1) The funds that a recipient deposits to a rehabilitation fund shall not exceed the grant amount that the recipient reasonably expects will be required, together with anticipated program income from interest and loan repayments, for the rehabilitation activities during the period specified in the agreement to undertake activities, based on either: (i) Prior level of rehabilitation activity; or (ii) Rehabilitation staffing and management capacity during the period specified in the agreement to undertake activities. (2) No grant funds may be deposited under this section solely for the purpose of investment, notwithstanding that the interest or other income is to be used for the rehabilitation activities. (3) The recipient's rehabilitation program administrative costs and the administrative costs of the financial institution may not be funded through lump sum drawdown. Such costs must be paid from periodic letter of credit withdrawals in accordance with standard procedures or from program income, other than program income generated by the lump sum distribution. (b) Standards to be met. The following standards shall apply to all lump sum drawdowns of CDBG funds for rehabilitation: (1) Eligible rehabilitation activities. The rehabilitation fund shall be used to finance the rehabilitation of privately o… | |||
| 24:24:3.1.1.3.3.10.1.2 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | J | Subpart J—Grant Administration | § 570.501 Responsibility for grant administration. | HUD | [53 FR 8058, Mar. 11, 1988, as amended at 57 FR 27120, June 17, 1992] | (a) One or more public agencies, including existing local public agencies, may be designated by the chief executive officer of the recipient to undertake activities assisted by this part. A public agency so designated shall be subject to the same requirements as are applicable to subrecipients. (b) The recipient is responsible for ensuring that CDBG funds are used in accordance with all program requirements. The use of designated public agencies, subrecipients, or contractors does not relieve the recipient of this responsibility. The recipient is also responsible for determining the adequacy of performance under subrecipient agreements and procurement contracts, and for taking appropriate action when performance problems arise, such as the actions described in § 570.910. Where a unit of general local government is participating with, or as part of, an urban county, or as part of a metropolitan city, the recipient is responsible for applying to the unit of general local government the same requirements as are applicable to subrecipients, except that the five-year period identified under § 570.503(b)(8)(i) shall begin with the date that the unit of general local government is no longer considered by HUD to be a part of the metropolitan city or urban county, as applicable, instead of the date that the subrecipient agreement expires. | |||
| 24:24:3.1.1.3.3.10.1.3 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | J | Subpart J—Grant Administration | § 570.502 Applicability of uniform administrative requirements. | HUD | [80 FR 75937, Dec. 7, 2015] | (a) Grantees and subrecipients shall comply with 2 CFR part 200, “Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards”, except that: (1) Section 200.305 “Payment” is modified for lump sum drawdown for financing of property rehabilitation activities, in accordance with § 570.513. (2) Section 200.306 “Cost sharing or matching” does not apply. (3) Section 200.307 “Program income” does not apply. Program income is governed by § 570.504. (4) Section 200.308 “Revisions of budget and program plans” does not apply. (5) Section 200.311 “Real property” does not apply, except as provided in § 570.200(j). Real property is governed by § 570.505. (6) Section 200.313 “Equipment” applies, except that when the equipment is sold, the proceeds shall be program income. Equipment not needed by the subrecipient for CDBG activities shall be transferred to the recipient for the CDBG program or shall be retained after compensating the recipient. (7) Section 200.333 “Retention requirements for records” applies except that: (i) For recipients: (A) The period shall be 4 years from the date of execution of the closeout agreement for a grant, as further described in this part; (B) Records for individual activities subject to the reversion of assets provisions at § 570.503(b)(7) or the change of use provisions at § 570.505 must be maintained for 3 years after those provisions no longer apply to the activity; (C) Records for individual activities for which there are outstanding loan balances, other receivables, or contingent liabilities must be retained for 3 years after the receivables or liabilities have been satisfied. (ii) For subrecipients: (A) The retention period for individual CDBG activities shall be the longer of 3 years after the expiration or termination of the subrecipient agreement under § 570.503, or 3 years after the submission of the annual performance and evaluation report, as prescribed in § 91.520 of this title, in which the specific activity is reported on for the fin… | |||
| 24:24:3.1.1.3.3.10.1.4 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | J | Subpart J—Grant Administration | § 570.503 Agreements with subrecipients. | HUD | [53 FR 8058, Mar. 11, 1988, as amended at 53 FR 41331, Oct. 21, 1988; 57 FR 27120, June 17, 1992; 60 FR 56915, Nov. 9, 1995; 68 FR 56405, Sept. 30, 2003; 80 FR 69873, Nov. 12, 2015; 80 FR 75938, Dec. 7, 2015] | (a) Before disbursing any CDBG funds to a subrecipient, the recipient shall sign a written agreement with the subrecipient. The agreement shall remain in effect during any period that the subrecipient has control over CDBG funds, including program income. (b) At a minimum, the written agreement with the subrecipient shall include provisions concerning the following items: (1) Statement of work. The agreement shall include a description of the work to be performed, a schedule for completing the work, and a budget. These items shall be in sufficient detail to provide a sound basis for the recipient effectively to monitor performance under the agreement. (2) Records and reports. The recipient shall specify in the agreement the particular records the subrecipient must maintain and the particular reports the subrecipient must submit in order to assist the recipient in meeting its recordkeeping and reporting requirements. (3) Program income. The agreement shall include the program income requirements set forth in § 570.504(c). The agreement shall also specify that, at the end of the program year, the grantee may require remittance of all or part of any program income balances (including investments thereof) held by the subrecipient (except those needed for immediate cash needs, cash balances of a revolving loan fund, cash balances from a lump sum drawdown, or cash or investments held for section 108 security needs). (4) Uniform requirements. The agreement shall require the subrecipient to comply with applicable uniform requirements, as described in § 570.502. (5) Other program requirements. The agreement shall require the subrecipient to carry out each activity in compliance with all Federal laws and regulations described in subpart K of these regulations, except that: (i) The subrecipient does not assume the recipient's environmental responsibilities described at § 570.604; and (ii) The subrecipient does not assume the recipient's responsibility for initiating the review process under the provisions … | |||
| 24:24:3.1.1.3.3.10.1.5 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | J | Subpart J—Grant Administration | § 570.504 Program income. | HUD | [53 FR 8058, Mar. 11, 1988, as amended at 60 FR 56915, Nov. 9, 1995; 77 FR 24146, Apr. 23, 2012] | (a) Recording program income. The receipt and expenditure of program income as defined in § 570.500(a) shall be recorded as part of the financial transactions of the grant program. (b) Disposition of program income received by recipients. (1) Program income received before grant closeout may be retained by the recipient if the income is treated as additional CDBG funds subject to all applicable requirements governing the use of CDBG funds. (2) If the recipient chooses to retain program income, that program income shall be disposed of as follows: (i) Program income in the form of repayments to, or interest earned on, a revolving fund as defined in § 570.500(b) shall be substantially disbursed from the fund before additional cash withdrawals are made from the U.S. Treasury for the same activity. (This rule does not prevent a lump sum disbursement to finance the rehabilitation of privately owned properties as provided for in § 570.513.) (ii) Substantially all other program income shall be disbursed for eligible activities before additional cash withdrawals are made from the U.S. Treasury. (iii) At the end of each program year, the aggregate amount of program income cash balances and any investment thereof (except those needed for immediate cash needs, cash balances of a revolving loan fund, cash balances from a lump-sum drawdown, or cash or investments held for section 108 loan guarantee security needs) that, as of the last day of the program year, exceeds one-twelfth of the most recent grant made pursuant to § 570.304 shall be remitted to HUD as soon as practicable thereafter, to be placed in the recipient's line of credit. This provision applies to program income cash balances and investments thereof held by the grantee and its subrecipients. (This provision shall be applied for the first time at the end of the program year for which Federal Fiscal Year 1996 funds are provided.) (3) Program income on hand at the time of closeout shall continue to be subject to the eligibility requirements in subpart C an… | |||
| 24:24:3.1.1.3.3.10.1.6 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | J | Subpart J—Grant Administration | § 570.505 Use of real property. | HUD | [53 FR 8058, Mar. 11, 1988, as amended at 53 FR 41331, Oct. 21, 1988] | The standards described in this section apply to real property within the recipient's control which was acquired or improved in whole or in part using CDBG funds in excess of $25,000. These standards shall apply from the date CDBG funds are first spent for the property until five years after closeout of an entitlement recipient's participation in the entitlement CDBG program or, with respect to other recipients, until five years after the closeout of the grant from which the assistance to the property was provided. (a) A recipient may not change the use or planned use of any such property (including the beneficiaries of such use) from that for which the acquisition or improvement was made unless the recipient provides affected citizens with reasonable notice of, and opportunity to comment on, any proposed change, and either: (1) The new use of such property qualifies as meeting one of the national objectives in § 570.208 (formerly § 570.901) and is not a building for the general conduct of government; or (2) The requirements in paragraph (b) of this section are met. (b) If the recipient determines, after consultation with affected citizens, that it is appropriate to change the use of the property to a use which does not qualify under paragraph (a)(1) of this section, it may retain or dispose of the property for the changed use if the recipient's CDBG program is reimbursed in the amount of the current fair market value of the property, less any portion of the value attributable to expenditures of non-CDBG funds for acquisition of, and improvements to, the property. (c) If the change of use occurs after closeout, the provisions governing income from the disposition of the real property in § 570.504(b)(4) or (5), as applicable, shall apply to the use of funds reimbursed. (d) Following the reimbursement of the CDBG program in accordance with paragraph (b) of this section, the property no longer will be subject to any CDBG requirements. | |||
| 24:24:3.1.1.3.3.10.1.7 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | J | Subpart J—Grant Administration | § 570.506 Records to be maintained. | HUD | [53 FR 34454, Sept. 6, 1988; 53 FR 41330, Oct. 21, 1988, as amended at 60 FR 1916, 1953, Jan. 5, 1995; 60 FR 56915, Nov. 9, 1995; 61 FR 18674, Apr. 29, 1996; 64 FR 38813, July 19, 1999; 70 FR 76370, Dec. 23, 2005; 80 FR 42368, July 16, 2015; 80 FR 69873, Nov. 12, 2015; 81 FR 92637, Dec. 20, 2016; 85 FR 47911, Aug. 7, 2020; 86 FR 30792, June 10, 2021; 90 FR 11024, Mar. 3, 2025] | Each recipient shall establish and maintain sufficient records to enable the Secretary to determine whether the recipient has met the requirements of this part. At a minimum, the following records are needed: (a) Records providing a full description of each activity assisted (or being assisted) with CDBG funds, including its location (if the activity has a geographical locus), the amount of CDBG funds budgeted, obligated and expended for the activity, and the provision in subpart C under which it is eligible. (b) Records demonstrating that each activity undertaken meets one of the criteria set forth in § 570.208. (Where information on income by family size is required, the recipient may substitute evidence establishing that the person assisted qualifies under another program having income qualification criteria at least as restrictive as that used in the definitions of “low and moderate income person” and “low and moderate income household” (as applicable) at § 570.3, such as Job Training Partnership Act (JTPA) and welfare programs; or the recipient may substitute evidence that the assisted person is homeless; or the recipient may substitute a copy of a verifiable certification from the assisted person that his or her family income does not exceed the applicable income limit established in accordance with § 570.3; or the recipient may substitute a notice that the assisted person is a referral from a state, county or local employment agency or other entity that agrees to refer individuals it determines to be low and moderate income persons based on HUD's criteria and agrees to maintain documentation supporting these determinations.) Such records shall include the following information: (1) For each activity determined to benefit low and moderate income persons, the income limits applied and the point in time when the benefit was determined. (2) For each activity determined to benefit low and moderate income persons based on the area served by the activity: (i) The boundaries of the service area; (ii) The inc… | |||
| 24:24:3.1.1.3.3.10.1.8 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | J | Subpart J—Grant Administration | § 570.507 Reports. | HUD | [53 FR 34456, Sept. 6, 1988, as amended at 60 FR 1916, Jan. 5, 1995; 61 FR 32269, June 21, 1996] | (a) Performance and evaluation report —(1) Entitlement grant recipients and HUD-administered small cities recipients in Hawaii. The annual performance and evaluation report shall be submitted in accordance with 24 CFR part 91. (2) HUD-administered Small Cities recipients in New York, and Hawaii recipients for pre-FY 1995 grants —(i) Content. Each performance and evaluation report must contain completed copies of all forms and narratives prescribed by HUD, including a summary of the citizen comments received on the report. (ii) Timing. The performance and evaluation report on each grant shall be submitted: (A) No later than October 31 for all grants executed before April 1 of the same calendar year. The first report should cover the period from the execution of the grant until September 30. Reports on grants made after March 31 of a calendar year will be due October 31 of the following calendar year, and the reports will cover the period of time from the execution of the grant until September 30 of the calendar year following grant execution. After the initial submission, the performance and evaluation report will be submitted annually on October 31 until completion of the activities funded under the grant; (B) Hawaii grantees will submit their small cities performance and evaluation report for each pre-FY 1995 grant no later than 90 days after the completion of their most recent program year. After the initial submission, the performance and evaluation report will be submitted annually until completion of the activities funded under the grant; and (C) No later than 90 days after the criteria for grant closeout, as described in § 570.509(a), have been met. (iii) Citizen comments on the report. Each recipient shall make copies of the performance and evaluation report available to its citizens in sufficient time to permit the citizens to comment on the report before its submission to HUD. Each recipient may determine the specific manner and times the report will be made available to citizens consiste… | |||
| 24:24:3.1.1.3.3.10.1.9 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | J | Subpart J—Grant Administration | § 570.508 Public access to program records. | HUD | [53 FR 8058, Mar. 11, 1988, as amended at 80 FR 75938, Dec. 7, 2015] | Notwithstanding 2 CFR 200.337, recipients shall provide citizens with reasonable access to records regarding the past use of CDBG funds, consistent with applicable State and local laws regarding privacy and obligations of confidentiality. | |||
| 24:24:3.1.1.3.3.11.1.1 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | K | Subpart K—Other Program Requirements | § 570.600 General. | HUD | [53 FR 34456, Sept. 6, 1988, as amended at 61 FR 11477, Mar. 20, 1996; 72 FR 12536, Mar. 15, 2007] | (a) This subpart K enumerates laws that the Secretary will treat as applicable to grants made under section 106 of the Act, other than grants to states made pursuant to section 106(d) of the Act, for purposes of the Secretary's determinations under section 104(e)(1) of the Act, including statutes expressly made applicable by the Act and certain other statutes and Executive Orders for which the Secretary has enforcement responsibility. This subpart K applies to grants made under the Insular Areas Program in § 570.405 and § 570.440 with the exception of § 570.612. The absence of mention herein of any other statute for which the Secretary does not have direct enforcement responsibility is not intended to be taken as an indication that, in the Secretary's opinion, such statute or Executive Order is not applicable to activities assisted under the Act. For laws that the Secretary will treat as applicable to grants made to states under section 106(d) of the Act for purposes of the determination required to be made by the Secretary pursuant to section 104(e)(2) of the Act, see § 570.487. (b) This subpart also sets forth certain additional program requirements which the Secretary has determined to be applicable to grants provided under the Act as a matter of administrative discretion. (c) In addition to grants made pursuant to section 106(b) and 106(d)(2)(B) of the Act (subparts D and F, respectively), the requirements of this subpart K are applicable to grants made pursuant to sections 107 and 119 of the Act (subparts E and G, respectively), and to loans guaranteed pursuant to subpart M. | |||
| 24:24:3.1.1.3.3.11.1.10 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | K | Subpart K—Other Program Requirements | § 570.609 Use of debarred, suspended or ineligible contractors or subrecipients. | HUD | [61 FR 5209, Feb. 9, 1996] | The requirements set forth in 24 CFR part 5 apply to this program. | |||
| 24:24:3.1.1.3.3.11.1.11 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | K | Subpart K—Other Program Requirements | § 570.610 Uniform administrative requirements, cost principles, and audit requirements for Federal awards. | HUD | [80 FR 75938, Dec. 7, 2015] | The recipient, its agencies or instrumentalities, and subrecipients shall comply with 2 CFR part 200, “Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards”, as set forth at § 570.502. | |||
| 24:24:3.1.1.3.3.11.1.12 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | K | Subpart K—Other Program Requirements | § 570.611 Conflict of interest. | HUD | [60 FR 56916, Nov. 9, 1995, as amended at 80 FR 75938, Dec. 7, 2015] | (a) Applicability. (1) In the procurement of supplies, equipment, construction, and services by recipients and by subrecipients, the conflict of interest provisions in 2 CFR 200.317 and 200.318 shall apply. (2) In all cases not governed by 2 CFR 200.317 and 200.318, the provisions of this section shall apply. Such cases include the acquisition and disposition of real property and the provision of assistance by the recipient or by its subrecipients to individuals, businesses, and other private entities under eligible activities that authorize such assistance (e.g., rehabilitation, preservation, and other improvements of private properties or facilities pursuant to § 570.202; or grants, loans, and other assistance to businesses, individuals, and other private entities pursuant to § 570.203, 570.204, 570.455, or 570.703(i)). (b) Conflicts prohibited. The general rule is that no persons described in paragraph (c) of this section who exercise or have exercised any functions or responsibilities with respect to CDBG activities assisted under this part, or who are in a position to participate in a decisionmaking process or gain inside information with regard to such activities, may obtain a financial interest or benefit from a CDBG-assisted activity, or have a financial interest in any contract, subcontract, or agreement with respect to a CDBG-assisted activity, or with respect to the proceeds of the CDBG-assisted activity, either for themselves or those with whom they have business or immediate family ties, during their tenure or for one year thereafter. For the UDAG program, the above restrictions shall apply to all activities that are a part of the UDAG project, and shall cover any such financial interest or benefit during, or at any time after, such person's tenure. (c) Persons covered. The conflict of interest provisions of paragraph (b) of this section apply to any person who is an employee, agent, consultant, officer, or elected official or appointed official of the recipient, or of any designated public … | |||
| 24:24:3.1.1.3.3.11.1.13 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | K | Subpart K—Other Program Requirements | § 570.612 Executive Order 12372. | HUD | (a) General. Executive Order 12372, Intergovernmental Review of Federal Programs, and the Department's implementing regulations at 24 CFR part 52, allow each State to establish its own process for review and comment on proposed Federal financial assistance programs. (b) Applicability. Executive Order 12372 applies to the CDBG Entitlement program and the UDAG program. The Executive Order applies to all activities proposed to be assisted under UDAG, but it applies to the Entitlement program only where a grantee proposes to use funds for the planning or construction (reconstruction or installation) of water or sewer facilities. Such facilities include storm sewers as well as all sanitary sewers, but do not include water and sewer lines connecting a structure to the lines in the public right-of-way or easement. It is the responsibility of the grantee to initiate the Executive Order review process if it proposes to use its CDBG or UDAG funds for activities subject to review. | ||||
| 24:24:3.1.1.3.3.11.1.14 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | K | Subpart K—Other Program Requirements | § 570.613 Eligibility restrictions for certain resident aliens. | HUD | [55 FR 18494, May 2, 1990] | (a) Restriction. Certain newly legalized aliens, as described in 24 CFR part 49, are not eligible to apply for benefits under covered activities funded by the programs listed in paragraph (e) of this section. “Benefits” under this section means financial assistance, public services, jobs and access to new or rehabilitated housing and other facilities made available under covered activities funded by programs listed in paragraph (e) of this section. “Benefits” do not include relocation services and payments to which displacees are entitled by law. (b) Covered activities. “Covered activities” under this section means activities meeting the requirements of § 570.208(a) that either: (1) Have income eligibility requirements limiting the benefits exclusively to low and moderate income persons; or (2) Are targeted geographically or otherwise to primarily benefit low and moderate income persons (excluding activities serving the public at large, such as sewers, roads, sidewalks, and parks), and that provide benefits to persons on the basis of an application. (c) Limitation on coverage. The restrictions under this section apply only to applicants for new benefits not being received by covered resident aliens as of the effective date of this section. (d) Compliance. Compliance can be accomplished by obtaining certification as provided in 24 CFR 49.20. (e) Programs affected. (1) The Community Development Block Grant program for small cities, administered under subpart F of part 570 of this title until closeout of the recipient's grant. (2) The Community Development Block Grant program for entitlement grants, administered under subpart D of part 570 of this title. (3) The Community Development Block Grant program for States, administered under subpart I of part 570 of this title until closeout of the unit of general local government's grant by the State. (4) The Urban Development Action Grants program, administered under subpart G of part 570 of this title until closeout of the recipient's grant. | |||
| 24:24:3.1.1.3.3.11.1.15 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | K | Subpart K—Other Program Requirements | § 570.614 Architectural Barriers Act and the Americans with Disabilities Act. | HUD | [60 FR 56917, Nov. 9, 1995] | (a) The Architectural Barriers Act of 1968 (42 U.S.C. 4151-4157) requires certain Federal and Federally funded buildings and other facilities to be designed, constructed, or altered in accordance with standards that insure accessibility to, and use by, physically handicapped people. A building or facility designed, constructed, or altered with funds allocated or reallocated under this part after December 11, 1995, and that meets the definition of “residential structure” as defined in 24 CFR 40.2 or the definition of “building” as defined in 41 CFR 101-19.602(a) is subject to the requirements of the Architectural Barriers Act of 1968 (42 U.S.C. 4151-4157) and shall comply with the Uniform Federal Accessibility Standards (appendix A to 24 CFR part 40 for residential structures, and appendix A to 41 CFR part 101-19, subpart 101-19.6, for general type buildings). (b) The Americans with Disabilities Act (42 U.S.C. 12131; 47 U.S.C. 155, 201, 218 and 225) (ADA) provides comprehensive civil rights to individuals with disabilities in the areas of employment, public accommodations, State and local government services, and telecommunications. It further provides that discrimination includes a failure to design and construct facilities for first occupancy no later than January 26, 1993, that are readily accessible to and usable by individuals with disabilities. Further, the ADA requires the removal of architectural barriers and communication barriers that are structural in nature in existing facilities, where such removal is readily achievable—that is, easily accomplishable and able to be carried out without much difficulty or expense. | |||
| 24:24:3.1.1.3.3.11.1.16 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | K | Subpart K—Other Program Requirements | § 570.615 Housing counseling. | HUD | [81 FR 90659, Dec. 14, 2016] | Housing counseling, as defined in 24 CFR 5.100, that is funded with or provided in connection with CDBG funds must be carried out in accordance with 24 CFR 5.111. | |||
| 24:24:3.1.1.3.3.11.1.2 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | K | Subpart K—Other Program Requirements | § 570.601 Public Law 88-352 and Public Law 90-284; affirmatively furthering fair housing; Executive Order 11063. | HUD | [61 FR 11477, Mar. 20, 1996, as amended at 80 FR 42368, July 16, 2015; 85 FR 47911, Aug. 7, 2020; 86 FR 30792, June 10, 2021; 90 FR 11024, Mar. 3, 2025] | (a) The following requirements apply according to sections 104(b) and 107 of the Act: (1) Public Law 88-352, which is title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq. ), and implementing regulations in 24 CFR part 1. (2) Public Law 90-284, which is the Fair Housing Act (42 U.S.C. 3601-3620). In accordance with the Fair Housing Act, the Secretary requires that grantees administer all programs and activities related to housing and urban development in a manner to affirmatively further the policies of the Fair Housing Act. Each community receiving a grant under subpart D of this part, shall submit a certification that it will affirmatively further fair housing, consistent with §§ 5.150 and 5.151 of this title. (b) Executive Order 11063, as amended by Executive Order 12259 (3 CFR, 1959-1963 Comp., p. 652; 3 CFR, 1980 Comp., p. 307) (Equal Opportunity in Housing), and implementing regulations in 24 CFR part 107, also apply. | |||
| 24:24:3.1.1.3.3.11.1.3 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | K | Subpart K—Other Program Requirements | § 570.602 Section 109 of the Act. | HUD | [64 FR 3802, Jan. 25, 1999] | Section 109 of the Act requires that no person in the United States shall on the grounds of race, color, national origin, religion, or sex be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving Federal financial assistance made available pursuant to the Act. Section 109 also directs that the prohibitions against discrimination on the basis of age under the Age Discrimination Act and the prohibitions against discrimination on the basis of disability under Section 504 shall apply to programs or activities receiving Federal financial assistance under Title I programs. The policies and procedures necessary to ensure enforcement of section 109 are codified in 24 CFR part 6. | |||
| 24:24:3.1.1.3.3.11.1.4 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | K | Subpart K—Other Program Requirements | § 570.603 Labor standards. | HUD | [61 FR 11477, Mar. 20, 1996] | (a) Section 110(a) of the Act contains labor standards that apply to nonvolunteer labor financed in whole or in part with assistance received under the Act. In accordance with section 110(a) of the Act, the Contract Work Hours and Safety Standards Act (40 U.S.C. 327 et seq. ) also applies. However, these requirements apply to the rehabilitation of residential property only if such property contains not less than 8 units. (b) The regulations in 24 CFR part 70 apply to the use of volunteers. | |||
| 24:24:3.1.1.3.3.11.1.5 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | K | Subpart K—Other Program Requirements | § 570.604 Environmental standards. | HUD | [61 FR 11477, Mar. 20, 1996] | For purposes of section 104(g) of the Act, the regulations in 24 CFR part 58 specify the other provisions of law which further the purposes of the National Environmental Policy Act of 1969, and the procedures by which grantees must fulfill their environmental responsibilities. In certain cases, grantees assume these environmental review, decisionmaking, and action responsibilities by execution of grant agreements with the Secretary. | |||
| 24:24:3.1.1.3.3.11.1.6 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | K | Subpart K—Other Program Requirements | § 570.605 National Flood Insurance Program. | HUD | [61 FR 11477, Mar. 20, 1996] | Notwithstanding the date of HUD approval of the recipient's application (or, in the case of grants made under subpart D of this part or HUD-administered small cities recipients in Hawaii, the date of submission of the grantee's consolidated plan, in accordance with 24 CFR part 91), section 202(a) of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4106) and the regulations in 44 CFR parts 59 through 79 apply to funds provided under this part 570. | |||
| 24:24:3.1.1.3.3.11.1.7 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | K | Subpart K—Other Program Requirements | § 570.606 Displacement, relocation, acquisition, and replacement of housing. | HUD | [61 FR 11477, Mar. 20, 1996, as amended at 61 FR 51760, Oct. 3, 1996] | (a) General policy for minimizing displacement. Consistent with the other goals and objectives of this part, grantees (or States or state recipients, as applicable) shall assure that they have taken all reasonable steps to minimize the displacement of persons (families, individuals, businesses, nonprofit organizations, and farms) as a result of activities assisted under this part. (b) Relocation assistance for displaced persons at URA levels. (1) A displaced person shall be provided with relocation assistance at the levels described in, and in accordance with the requirements of 49 CFR part 24, which contains the government-wide regulations implementing the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (URA) (42 U.S.C. 4601-4655). (2) Displaced person. (i) For purposes of paragraph (b) of this section, the term “ displaced person ” means any person (family, individual, business, nonprofit organization, or farm) that moves from real property, or moves his or her personal property from real property, permanently and involuntarily, as a direct result of rehabilitation, demolition, or acquisition for an activity assisted under this part. A permanent, involuntary move for an assisted activity includes a permanent move from real property that is made: (A) After notice by the grantee (or the state recipient, if applicable) to move permanently from the property, if the move occurs after the initial official submission to HUD (or the State, as applicable) for grant, loan, or loan guarantee funds under this part that are later provided or granted. (B) After notice by the property owner to move permanently from the property, if the move occurs after the date of the submission of a request for financial assistance by the property owner (or person in control of the site) that is later approved for the requested activity. (C) Before the date described in paragraph (b)(2)(i)(A) or (B) of this section, if either HUD or the grantee (or State, as applicable) determines that the displac… | |||
| 24:24:3.1.1.3.3.11.1.8 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | K | Subpart K—Other Program Requirements | § 570.607 Employment and contracting opportunities. | HUD | [68 FR 56405, Sept. 30, 2003, as amended at 85 FR 61567, Sept. 29, 2020] | To the extent that they are otherwise applicable, grantees shall comply with: (a) Executive Order 11246, as amended by Executive Orders 11375, 11478, 12086, and 12107 (3 CFR 1964-1965 Comp. p. 339; 3 CFR, 1966-1970 Comp., p. 684; 3 CFR, 1966-1970., p. 803; 3 CFR, 1978 Comp., p. 230; 3 CFR, 1978 Comp., p. 264 (Equal Employment Opportunity), and Executive Order 13279 (Equal Protection of the Laws for Faith-Based and Community Organizations), 67 FR 77141, 3 CFR, 2002 Comp., p. 258; and the implementing regulations at 41 CFR chapter 60; and (b) Section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701u) and implementing regulations at 24 CFR part 75. | |||
| 24:24:3.1.1.3.3.11.1.9 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | K | Subpart K—Other Program Requirements | § 570.608 Lead-based paint. | HUD | [64 FR 50226, Sept. 15, 1999] | The Lead-Based Paint Poisoning Prevention Act (42 U.S.C. 4821-4846), the Residential Lead-Based Paint Hazard Reduction Act of 1992 (42 U.S.C. 4851-4856), and implementing regulations at part 35, subparts A, B, J, K, and R of this part apply to activities under this program. | |||
| 24:24:3.1.1.3.3.13.1.1 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | M | Subpart M—Loan Guarantees | § 570.700 Purpose. | HUD | This subpart contains requirements governing the guarantee under section 108 of the Act of debt obligations as defined in § 570.701. | ||||
| 24:24:3.1.1.3.3.13.1.10 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | M | Subpart M—Loan Guarantees | § 570.709 Allocation of loan guarantee assistance. | HUD | [74 FR 36389, July 22, 2009] | Of the amount approved in any appropriation act for guarantees under this subpart in any fiscal year, 70 percent shall be allocated for entitlement public entities and 30 percent shall be allocated for States and nonentitlement public entities. HUD need not comply with these percentage requirements in any fiscal year to the extent that there is an absence of applications approvable under this subpart from entitlement public entities or from States and nonentitlement public entities. | |||
| 24:24:3.1.1.3.3.13.1.11 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | M | Subpart M—Loan Guarantees | § 570.710 State responsibilities. | HUD | [59 FR 66604, Dec. 27, 1994, as amended at 74 FR 36389, July 22, 2009] | The State is responsible for choosing public entities that it will assist under this subpart. States are free to develop procedures and requirements for determining which activities will be assisted, subject to the requirements of this subpart. Upon approval by HUD of an application from a State or a State-assisted public entity, the State will be principally responsible, subject to HUD oversight under subpart I of this part, for ensuring compliance with all applicable requirements governing the use of the guaranteed loan funds. Notwithstanding the State's responsibilities described in this section, HUD may take any action necessary for ensuring compliance with requirements affecting the security interests of HUD with respect to the guaranteed loan. | |||
| 24:24:3.1.1.3.3.13.1.12 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | M | Subpart M—Loan Guarantees | § 570.711 State borrowers; additional requirements and application procedures. | HUD | [74 FR 36389, July 22, 2009] | This section contains additional requirements and alternative application procedures for guarantees of debt obligations under section 108 of the Act pursuant to the additional authority provided in paragraph (a) of section 222 of the Transportation, Housing and Urban Development, and Related Agencies Appropriations Act, 2009, Public Law 111-8; 123 Stat. 524 at 976 (Division I of the Omnibus Appropriations Act, 2009) (“section 222” and the “2009 Appropriations Act”). If any other federal law or laws are enacted after March 11, 2009, the effect of which with respect to loan guarantee authority provided in an appropriations act is equivalent to the effect of section 222 with respect to the loan guarantee authority provided in the 2009 Appropriations Act, the additional requirements and alternative application procedures in this section shall also apply to guarantees of debt obligations under section 108 of the act, pursuant to the additional authority provided in such other federal law or laws. (a) Applications by States. Notwithstanding § 570.702 and § 570.704, states that administer the CDBG program (under subpart I of this part) may apply for loan guarantee assistance under this subpart, and such application shall consist of the following: (1) A copy of the State's CDBG method of distribution in the action plan most recently submitted or amended pursuant to 24 CFR part 91. In addition to the requirements of 24 CFR part 91, such method of distribution must note the approximate amount of section 108 guaranteed obligations issued by the State and all nonentitlement public entities that are outstanding at the time of such submission or amendment, identify the maximum amount of guaranteed loan funds for which the State will apply during the period covered by the action plan, describe the pledge of grants required under § 570.705(b)(2), and identify the nonentitlement public entities in the State that may be assisted with such guaranteed loan funds (to satisfy this requirement, the method of distribution may identi… | |||
| 24:24:3.1.1.3.3.13.1.13 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | M | Subpart M—Loan Guarantees | § 570.712 Collection of fees; procedure to determine amount of the fee. | HUD | [80 FR 67633, Nov. 3, 2015] | This section contains additional procedures for guarantees of debt obligations under section 108 when HUD is required or authorized to collect fees to pay the credit subsidy costs of the loan guarantee program. (a) Collection of fees. HUD may collect fees from borrowers for the purpose of paying the credit subsidy cost of the loan guarantee. Each public entity or its designated public agency and each State issuing debt obligations under this subpart is responsible for the payment of any and all fees charged pursuant to this section. The fees are payable from the grant allocated to the issuer pursuant to the Act (including program income derived therefrom) or from other sources, but are only payable from guaranteed loan funds if the fee is deducted from the disbursement of guaranteed loan funds. (b) Amount and determination of fee. (1) HUD shall calculate the amount of the fee as a percentage of the principal amount of the guaranteed loan as provided by this section, based on a determination that the fees when collected will reduce the credit subsidy cost to the amount established by applicable appropriation acts. The amount of the fee payable by the public entity or State shall be based on the date of the loan guarantee commitment and shall be determined by applying the percentages announced by Federal Register notice to guaranteed loan disbursements as they occur or periodically to outstanding principal balances, or both. (2) HUD shall publish in the Federal Register the fees required under paragraph (a) of this section, announcing the fee to be applied, the effective date of the fee, and any other necessary information regarding payment of the fee and, if necessary, provide a 30-day public comment period for the purpose of inviting comment on the proposed fee before adopting changes to the assumptions underlying the fee calculation or if the fee structure itself raises new considerations for Borrowers. HUD will publish a second Federal Register notice, if necessary, after consideration of public co… | |||
| 24:24:3.1.1.3.3.13.1.2 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | M | Subpart M—Loan Guarantees | § 570.701 Definitions. | HUD | [59 FR 66604, Dec. 27, 1994, as amended at 61 FR 11481, Mar. 20, 1996; 74 FR 36389, July 22, 2009; 80 FR 67633, Nov. 3, 2015] | Borrower means the public entity or its designated public agency or the State that issues debt obligations under this subpart. Credit subsidy cost means the estimated long-term cost to the Federal Government of a Section 108 loan guarantee or a modification thereof, calculated on a net present value basis, excluding administrative costs and any incidental effects on governmental receipts or outlays. Debt obligation means a promissory note or other obligation issued by a public entity or its designated public agency or by a State and guaranteed by HUD under this subpart, or a trust certificate or other obligation offered by HUD or by a trust or other offeror approved for purposes of this subpart by HUD, which is guaranteed by HUD under this subpart and is based on and backed by a trust or pool composed of notes or other obligations issued by public entities or their designated public agencies or by States and guaranteed or eligible for guarantee by HUD under this subpart. Designated public agency means a public agency designated by a public entity to issue debt obligations as borrower under this subpart. Entitlement public entity means a metropolitan city or an urban county receiving a grant under subpart D of this part. Guaranteed loan funds means the proceeds payable to the borrower from the issuance of debt obligations under this subpart and includes funds received by a nonentitlement public entity from a State under § 570.711. Nonentitlement public entity means any unit of general local government in a nonentitlement area. Public entity shall have the meaning provided for the term “ Eligible public entity ” in section 108(o) of the Act. State-assisted public entity means a unit of general local government in a nonentitlement area which is assisted by a State as required in § 570.704(b)(9) and § 570.705(b)(2) or pursuant to § 570.711. | |||
| 24:24:3.1.1.3.3.13.1.3 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | M | Subpart M—Loan Guarantees | § 570.702 Eligible applicants. | HUD | The following public entities may apply for loan guarantee assistance under this subpart. (a) Entitlement public entities. (b) Nonentitlement public entities that are assisted in the submission of applications by States that administer the CDBG program (under subpart I of this part). Such assistance shall consist, at a minimum, of the certifications required under § 570.704(b)(9) (and actions pursuant thereto). (c) Nonentitlement public entities eligible to apply for grant assistance under subpart F of this part. | ||||
| 24:24:3.1.1.3.3.13.1.4 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | M | Subpart M—Loan Guarantees | § 570.703 Eligible activities. | HUD | [59 FR 66604, Dec. 27, 1994, as amended at 61 FR 11481, Mar. 20, 1996; 71 FR 30036, May 24, 2006; 80 FR 67633, Nov. 3, 2015; 81 FR 1121, Jan. 11, 2016] | Guaranteed loan funds may be used for the following activities, provided such activities meet the requirements of § 570.200. However, guaranteed loan funds may not be used to reimburse the CDBG program account or line of credit for costs incurred by the public entity or designated public agency and paid with CDBG grant funds or program income. (a) Acquisition of improved or unimproved real property in fee or by long-term lease, including acquisition for economic development purposes. (b) Rehabilitation of real property owned or acquired by the public entity or its designated public agency. (c) Payment of interest on obligations guaranteed under this subpart. (d) Relocation payments and other relocation assistance for individuals, families, businesses, nonprofit organizations, and farm operations who must relocate permanently or temporarily as a result of an activity financed with guaranteed loan funds, where the assistance is: (1) Required under the provisions of § 570.606(b) or (c); or (2) Determined by the public entity to be appropriate under the provisions of § 570.606(d). (e) Clearance, demolition, and removal, including movement of structures to other sites and remediation of properties with known or suspected environmental contamination, of buildings and improvements on real property acquired or rehabilitated pursuant to paragraphs (a) and (b) of this section. Remediation may include project-specific environmental assessment costs not otherwise eligible under § 570.205. (f) Site preparation, including construction, reconstruction, installation of public and other site improvements, utilities or facilities (other than buildings), or remediation of properties (remediation can include project-specific environmental assessment costs not otherwise eligible under § 570.205) with known or suspected environmental contamination, which is: (1) Related to the redevelopment or use of the real property acquired or rehabilitated pursuant to paragraphs (a) and (b) of this section, or (2) For an economic develop… | |||
| 24:24:3.1.1.3.3.13.1.5 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | M | Subpart M—Loan Guarantees | § 570.704 Application requirements. | HUD | [59 FR 66604, Dec. 27, 1994, as amended at 60 FR 1917, Jan. 5, 1995; 61 FR 11481, Mar. 20, 1996; 69 FR 32781, June 10, 2004; 72 FR 73496, Dec. 27, 2008; 74 FR 36389, July 22, 2009; 80 FR 67633, Nov. 3, 2015] | (a) Presubmission and citizen participation requirements. (1) Before submission of an application for loan guarantee assistance to HUD, the public entity must: (i) Develop a proposed application that includes the following items: (A) The community development objectives the public entity proposes to pursue with the guaranteed loan funds. (B) The activities the public entity proposes to carry out with the guaranteed loan funds. Each activity must be described in sufficient detail, including the specific provision of § 570.703 under which it is eligible and the national objective to be met, amount of guaranteed loan funds expected to be used, and location, to allow citizens to determine the degree to which they will be affected. The proposed application must indicate which activities are expected to generate program income. The application must also describe where citizens may obtain additional information about proposed activities. (C) A description of the pledge of grants required under § 570.705(b)(2). In the case of applications by State-assisted public entities, the description shall note that pledges of grants will be made by the State and by the public entity. (D) A description of any CDBG funds, including guaranteed loan funds and grant funds, that will be used to pay fees required under § 570.705(g). The description must include an estimate of the amount of CBDG funds that will be used for this purpose. If the applicant will use grant funds to pay required fees, it must include this planned use of grant funds in its consolidated plan. (ii) Fulfill the applicable requirements in its citizen participation plan developed in accordance with § 570.704(a)(2). (iii) Publish community-wide its proposed application so as to afford affected citizens an opportunity to examine the application's contents and to provide comments on the proposed application. (iv) Prepare its final application. Once the public entity has held the public hearing and published the proposed application as required by paragraphs (a)… | |||
| 24:24:3.1.1.3.3.13.1.6 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | M | Subpart M—Loan Guarantees | § 570.705 Loan requirements. | HUD | [59 FR 66604, Dec. 27, 1994, as amended at 69 FR 32782, June 10, 2004; 74 FR 36389, July 22, 2009; 80 FR 67633, Nov. 3, 2015] | (a) Limitations on commitments. (1) If loan guarantee commitments have been issued in any fiscal year in an aggregate amount equal to 50 percent of the amount approved in an appropriation act for that fiscal year, HUD may limit the amount of commitments any one public entity may receive during such fiscal year as follows (except that HUD will not decrease commitments already issued): (i) The amount any one entitlement public entity may receive may be limited to $35,000,000. (ii) The amount any one nonentitlement public entity may receive may be limited to $7,000,000. (iii) The amount any one public entity may receive may be limited to such amount as is necessary to allow HUD to give priority to applications containing activities to be carried out in areas designated as empowerment zones/enterprise communities by the Federal Government or by any State. (2) In addition to the limitations specified in paragraph (a)(1) of this section, the following limitations shall apply. (i) Entitlement public entities. No commitment to guarantee shall be made if the total unpaid balance of debt obligations guaranteed under this subpart (excluding any amount defeased under the contract entered into under § 570.705(b)(1)) on behalf of the public entity would thereby exceed an amount equal to five times the amount of the most recent grant made pursuant to § 570.304 to the public entity. (ii) States and State-assisted public entities. No commitment to guarantee shall be made if the total unpaid balance of debt obligations guaranteed under this subpart (excluding any amount defeased under the contract entered into under § 570.705(b)(1)) on behalf of the State and all State-assisted public entities in the State would thereby exceed an amount equal to five times the amount of the most recent grant received by such State under subpart I. (iii) Nonentitlement public entities eligible under subpart F of this part. No commitment to guarantee shall be made with respect to a nonentitlement public entity in an insular area or th… | |||
| 24:24:3.1.1.3.3.13.1.7 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | M | Subpart M—Loan Guarantees | § 570.706 Federal guarantee; subrogation. | HUD | [61 FR 11481, Mar. 20, 1996] | Section 108(f) of the Act provides for the incontestability of guarantees by HUD under subpart M of this part in the hands of a holder of such guaranteed obligations. If HUD pays a claim under a guarantee made under section 108 of the Act, HUD shall be fully subrogated for all the rights of the holder of the guaranteed debt obligation with respect to such obligation. | |||
| 24:24:3.1.1.3.3.13.1.8 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | M | Subpart M—Loan Guarantees | § 570.707 Applicability of rules and regulations. | HUD | (a) Entitlement public entities. The provisions of subparts A, C, J, K and O of this part applicable to entitlement grants shall apply equally to guaranteed loan funds and other CDBG funds, except to the extent they are specifically modified or augmented by the provisions of this subpart. (b) State-assisted public entities. The provisions of subpart I of this part, and the requirements the State imposes on units of general local government receiving Community Development Block Grants or program income to the extent applicable, shall apply equally to guaranteed loan funds and Community Development Block Grants (including program income derived therefrom) administered by the State under the CDBG program, except to the extent they are specifically modified or augmented by the provisions of this subpart. (c) Nonentitlement public entities eligible under subpart F of this part. The provisions of subpart F of this part shall apply equally to guaranteed loan funds and other CDBG funds, except to the extent they are specifically modified or augmented by the provisions of this subpart. | ||||
| 24:24:3.1.1.3.3.13.1.9 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | M | Subpart M—Loan Guarantees | § 570.708 Sanctions. | HUD | (a) Non-State assisted public entities. The performance review procedures described in subpart O of this part apply to all public entities receiving guaranteed loan funds other than State-assisted public entities. Performance deficiencies in the use of guaranteed loan funds made available to such public entities (or program income derived therefrom) or violations of the contract entered into pursuant to § 570.705(b)(1) may result in the imposition of a sanction authorized pursuant to § 570.900(b)(7) against pledged CDBG grants. In addition, upon a finding by HUD that the public entity has failed to comply substantially with any provision of the Act with respect to either the pledged grants or the guaranteed loan funds or program income, HUD may take action against the pledged grants as provided in § 570.913 and/or may take action as provided in the contract for loan guarantee assistance. (b) State-assisted public entities. Performance deficiencies in the use of guaranteed loan funds (or program income derived therefrom) or violations of the contract entered into pursuant to § 570.705(b)(1) may result in an action authorized pursuant to § 570.495 or § 570.496. In addition, upon a finding by HUD that the State or public entity has failed to comply substantially with any provision of the Act with respect to the pledged CDBG nonentitlement funds, the guaranteed loan funds, or program income, HUD may take action against the pledged funds as provided in § 570.496 and/or may take action as provided in the contract. | ||||
| 24:24:3.1.1.3.3.14.1.1 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | N | Subpart N—Urban Renewal Provisions | § 570.800 Urban renewal regulations. | HUD | [61 FR 11481, Mar. 20, 1996] | The regulations governing urban renewal projects and neighborhood development programs in subpart N of this part, that were effective immediately before April 19, 1996, will continue to govern the rights and obligations of recipients and HUD with respect to such projects and programs. | |||
| 24:24:3.1.1.3.3.15.1.1 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | O | Subpart O—Performance Reviews | § 570.900 General. | HUD | [53 FR 34466, Sept. 6, 1988, as amended at 60 FR 56917, Nov. 9, 1995; 72 FR 12536, Mar. 15, 2007] | (a) Performance review authorities —(1) Entitlement, Insular Areas, and HUD-administered Small Cities performance reviews. Section 104(e)(1) of the Act requires that the Secretary shall, at least on an annual basis, make such reviews and audits as may be necessary or appropriate to determine whether the recipient has carried out its activities in a timely manner, whether the recipient has carried out those activities and its certifications in accordance with the requirements and the primary objectives of the Act and with other applicable laws, and whether the recipient has a continuing capacity to carry out those activities in a timely manner. (2) Urban Development Action Grant (UDAG) performance reviews. Section 119(g) of the Act requires the Secretary, at least on an annual basis, to make such reviews and audits of recipients of Urban Development Action Grants as necessary to determine whether the recipient's progress in carrying out the approved activities is substantially in accordance with the recipient's approved plans and timetables. (b) Performance review procedures. This paragraph describes the review procedures the Department will use in conducting the performance reviews required by sections 104(e) and 119(g) of the Act: (1) The Department will determine the performance of each entitlement, Insular Areas, and HUD-administered small cities recipient in accordance with section 104(e)(1) of the Act by reviewing for compliance with the requirements described in § 570.901 and by applying the performance criteria described in §§ 570.902 and 570.903 relative to carrying out activities in a timely manner. The review criteria in § 570.904 will be used to assist in determining if the recipient's program is being carried out in compliance with civil rights requirements. (2) The Department will review UDAG projects and activities to determine whether such projects and activities are being carried out substantially in accordance with the recipient's approved plans and schedules. The Department will also … | |||
| 24:24:3.1.1.3.3.15.1.10 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | O | Subpart O—Performance Reviews | § 570.911 Reduction, withdrawal, or adjustment of a grant or other appropriate action. | HUD | [61 FR 11481, Mar. 20, 1996, as amended at 72 FR 12537, Mar. 15, 2007; 72 FR 46371, Aug. 17, 2007] | (a) Opportunity for an informal consultation. Prior to a reduction, withdrawal, or adjustment of a grant or other appropriate action, taken pursuant to paragraph (b), (c), or (d) of this section, the recipient shall be notified of such proposed action and given an opportunity within a prescribed time period for an informal consultation. (b) Entitlement grants, Non-entitlement CDBG grants in Hawaii, and Insular Areas grants. Consistent with the procedures described in § 570.900(b), the Secretary may make a reduction in the entitlement, non-entitlement CDBG grants in Hawaii, or Insular Areas grant amount either for the succeeding program year or, if the grant had been conditioned, up to the amount that had been conditioned. The amount of the reduction shall be based on the severity of the deficiency and may be for the entire grant amount. (c) HUD-administered small cities grants. Consistent with the procedures described in § 570.900(b), the Secretary may adjust, reduce or withdraw the grant or take other actions as appropriate, except that funds already expended on eligible approved activities shall not be recaptured or deducted from future grants. (d) Urban Development Action Grants. Consistent with the procedures described in § 570.900(b), the Secretary may adjust, reduce or withdraw the grant or take other actions as appropriate, except that funds already expended on eligible approved activities shall not be recaptured or deducted from future grants made to the recipient. | |||
| 24:24:3.1.1.3.3.15.1.11 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | O | Subpart O—Performance Reviews | § 570.912 Nondiscrimination compliance. | HUD | (a) Whenever the Secretary determines that a unit of general local government which is a recipient of assistance under this part has failed to comply with § 570.602, the Secretary shall notify the governor of such State or chief executive officer of such unit of general local government of the noncompliance and shall request the governor or the chief executive officer to secure compliance. If within a reasonable period of time, not to exceed sixty days, the governor or chief executive officer fails or refuses to secure compliance, the Secretary is authorized to: (1) Refer the matter to the Attorney General with a recommendation that an appropriate civil action be instituted; (2) Exercise the powers and functions provided by title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d); (3) Exercise the powers and functions provided for in § 570.913; or (4) Take such other action as may be provided by law. (b) When a matter is referred to the Attorney General pursuant to paragraph (a)(1) of this section, or whenever the Secretary has reason to believe that a State or a unit of general local government is engaged in a pattern or practice in violation of the provisions of § 570.602, the Attorney General may bring a civil action in any appropriate United States district court for such relief as may be appropriate, including injunctive relief. | ||||
| 24:24:3.1.1.3.3.15.1.12 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | O | Subpart O—Performance Reviews | § 570.913 Other remedies for noncompliance. | HUD | [53 FR 34466, Sept. 6, 1988, as amended at 64 FR 3802, Jan. 25, 1999] | (a) Action to enforce compliance. When the Secretary acts to enforce the civil rights provisions of Section 109, as described in § 570.602 and 24 CFR part 6, the procedures described in 24 CFR parts 6 and 180 apply. If the Secretary finds, after reasonable notice and opportunity for hearing, that a recipient has failed to comply substantially with any other provisions of this part, the provisions of this section apply. The Secretary, until he/she is satisfied that there is no longer any such failure to comply, shall: (1) Terminate payments to the recipient; (2) Reduce payments to the recipient by an amount equal to the amount of such payments which were not expended in accordance with this part; or (3) Limit the availability of payments to programs or activities not affected by such failure to comply. Provided, however, that the Secretary may on due notice suspend payments at any time after the issuance of a notice of opportunity for hearing pursuant to paragraph (c)(1) of this section, pending such hearing and a final decision, to the extent the Secretary determines such action necessary to preclude the further expenditure of funds for activities affected by such failure to comply. (b) In lieu of, or in addition to, any action authorized by paragraph (a) of this section, the Secretary may, if he/she has reason to believe that a recipient has failed to comply substantially with any provision of this part; (1) Refer the matter to the Attorney General of the United States with a recommendation that an appropriate civil action be instituted; and (2) Upon such a referral, the Attorney General may bring a civil action in any United States district court having venue thereof for such relief as may be appropriate, including an action to recover the amount of the assistance furnished under this part which was not expended in accordance with it, or for mandatory or injunctive relief; (c) Proceedings. When the Secretary proposes to take action pursuant to this section, the respondent is the unit of general loc… | |||
| 24:24:3.1.1.3.3.15.1.2 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | O | Subpart O—Performance Reviews | § 570.901 Review for compliance with the primary and national objectives and other program requirements. | HUD | [53 FR 34466, Sept. 6, 1988, as amended at 60 FR 1917, Jan. 5, 1995; 60 FR 56917, Nov. 9, 1995; 72 FR 12536, Mar. 15, 2007; 72 FR 46371, Aug. 17, 2007] | HUD will review each entitlement, Insular Areas, and HUD-administered small cities recipient's program to determine if the recipient has carried out its activities and certifications in compliance with: (a) The requirement described at § 570.200(a)(3) that, consistent with the primary objective of the Act, not less than 70 percent of the aggregate amount of CDBG funds received by the recipient shall be used over the period specified in its certification for activities that benefit low and moderate income persons; (b) The requirement described at § 570.200(a)(2) that each CDBG assisted activity meets the criteria for one or more of the national objectives described at § 570.208; (c) All other activity eligibility requirements defined in subpart C of this part; (d) For entitlement grants and non-entitlement CDBG grants in Hawaii, the submission requirements of 24 CFR part 91 and the displacement policy requirements at § 570.606; (e) For HUD-administered Small Cities grants in New York, the citizen participation requirements at § 570.431, the amendment requirements at § 570.427, and the displacement policy requirements of § 570.606; (f) For Insular Areas Program grants only, the application and amendment requirements at § 570.440, the citizen participation requirements at § 570.441, the displacement policy requirements of § 570.606, and the lead-based paint requirements of 24 CFR 35.940; (g) The grant administration requirements described in subpart J; (h) Other applicable laws and program requirements described in subpart K; and (i) Where applicable, the requirements pertaining to loan guarantees (subpart M) and urban renewal completions (subpart N). | |||
| 24:24:3.1.1.3.3.15.1.3 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | O | Subpart O—Performance Reviews | § 570.902 Review to determine if CDBG-funded activities are being carried out in a timely manner. | HUD | [53 FR 34466, Sept. 6, 1988, as amended at 60 FR 56917, Nov. 9, 1995; 72 FR 12536, Mar. 15, 2007; 72 FR 46371, Aug. 17, 2007] | HUD will review the performance of each entitlement, HUD-administered small cities, and Insular Areas recipient to determine whether each recipient is carrying out its CDBG-assisted activities in a timely manner. (a) Entitlement recipients and Non-entitlement CDBG grantees in Hawaii. (1) Before the funding of the next annual grant and absent contrary evidence satisfactory to HUD, HUD will consider an entitlement recipient or a non-entitlement CDBG grantee in Hawaii to be failing to carry out its CDBG activities in a timely manner if: (i) Sixty days prior to the end of the grantee's current program year, the amount of entitlement grant funds available to the recipient under grant agreements but undisbursed by the U.S. Treasury is more than 1.5 times the entitlement grant amount for its current program year; and (ii) The grantee fails to demonstrate to HUD's satisfaction that the lack of timeliness has resulted from factors beyond the grantee's reasonable control. (2) Notwithstanding that the amount of funds in the line of credit indicates that the recipient is carrying out its activities in a timely manner pursuant to paragraph (a)(1) of this section, HUD may determine that the recipient is not carrying out its activities in a timely manner if: (i) The amount of CDBG program income the recipient has on hand 60 days prior to the end of its current program year, together with the amount of funds in its CDBG line of credit, exceeds 1.5 times the entitlement grant amount for its current program year; and (ii) The grantee fails to demonstrate to HUD's satisfaction that the lack of timeliness has resulted from factors beyond the grantee's reasonable control. (3) In determining the appropriate corrective action to take with respect to a HUD determination that a recipient is not carrying out its activities in a timely manner pursuant to paragraphs (a)(1) or (a)(2) of this section, HUD will consider the likelihood that the recipient will expend a sufficient amount of funds over the next program year to reduce the … | |||
| 24:24:3.1.1.3.3.15.1.4 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | O | Subpart O—Performance Reviews | § 570.903 Review to determine if the recipient is meeting its consolidated plan responsibilities. | HUD | [60 FR 56918, Nov. 9, 1995, as amended at 72 FR 12537, Mar. 15, 2007] | The consolidated plan, action plan, and amendment submission requirements referred to in this section are in 24 CFR part 91. For the purpose of this section, the term consolidated plan includes an abbreviated consolidated plan that is submitted pursuant to 24 CFR 91.235. (a) Review timing and purpose. HUD will review the consolidated plan performance of each entitlement, Insular Areas, and Hawaii HUD-administered Small Cities grant recipient prior to acceptance of a grant recipient's annual certification under 24 CFR 91.225(b)(3) to determine whether the recipient followed its HUD-approved consolidated plan for the most recently completed program year, and whether activities assisted with CDBG funds during that period were consistent with that consolidated plan, except that grantees are not bound by the consolidated plan with respect to the use or distribution of CDBG funds to meet non-housing community development needs. (b) Following a consolidated plan. The recipient will be considered to be following its consolidated plan if it has taken all of the planned actions described in its action plan. This includes, but is not limited to: (1) Pursuing all resources that the grantee indicated it would pursue; (2) Providing certifications of consistency, when requested to do so by applicants for HUD programs for which the grantee indicated that it would support application by other entities, in a fair and impartial manner; and (3) Not hindering implementation of the consolidated plan by action or willful inaction. (c) Disapproval. If HUD determines that a recipient has not met the criteria outlined in paragraph (b) of this section, HUD will notify the recipient and provide the recipient up to 45 days to demonstrate to the satisfaction of the Secretary that it has followed its consolidated plan. HUD will consider all relevant circumstances and the recipient's actions and lack of actions affecting the provision of assistance covered by the consolidated plan within its jurisdiction. Failure to so demonstrate i… | |||
| 24:24:3.1.1.3.3.15.1.5 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | O | Subpart O—Performance Reviews | § 570.904 Equal opportunity and fair housing review criteria. | HUD | [53 FR 34466, Sept. 6, 1988; 53 FR 41330, Oct. 21, 1988, as amended at 54 FR 37411, Sept. 9, 1989; 60 FR 1917, Jan. 5, 1995; 61 FR 11482, Mar. 20, 1996; 80 FR 42368, July 16, 2015; 80 FR 75938, Dec. 7, 2015] | (a) General. (1) Where the criteria in this section are met, the Department will presume that the recipient has carried out its CDBG-funded program in accordance with civil rights certifications and civil rights requirements of the Act relating to equal employment opportunity, equal opportunity in services, benefits and participation, and is affirmatively furthering fair housing unless: (i) There is evidence which shows, or from which it is reasonable to infer, that the recipient, motivated by considerations of race, color, religion where applicable, sex, national origin, age or handicap, has treated some persons less favorably than others, or (ii) There is evidence that a policy, practice, standard or method of administration, although neutral on its face, operates to deny or affect adversely in a significantly disparate way the provision of employment or services, benefits or participation to persons of a particular race, color, religion where applicable, sex, national origin, age or handicap, or fair housing to persons of a particular race, color, religion, sex, or national origin, or (iii) Where the Secretary required a further assurance pursuant to § 570.304 in order to accept the recipient's prior civil rights certification, the recipient has failed to meet any such assurance. (2) In such instances, or where the review criteria in this section are not met, the recipient will be afforded an opportunity to present evidence that it has not failed to carry out the civil rights certifications and fair housing requirements of the Act. The Secretary's determination of whether there has been compliance with the applicable requirements will be made based on a review of the recipient's performance, evidence submitted by the recipient, and all other available evidence. The Department may also initiate separate compliance reviews under title VI of the Civil Rights Act of 1964 or section 109 of the Act. (b) Review for equal opportunity. Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq. ), and i… | |||
| 24:24:3.1.1.3.3.15.1.6 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | O | Subpart O—Performance Reviews | § 570.905 Review of continuing capacity to carry out CDBG funded activities in a timely manner. | HUD | If HUD determines that the recipient has not carried out its CDBG activities and certifications in accordance with the requirements and criteria described in § 570.901 or 570.902, HUD will undertake a further review to determine whether or not the recipient has the continuing capacity to carry out its activities in a timely manner. In making the determination, the Department will consider the nature and extent of the recipient's performance deficiencies, types of corrective actions the recipient has undertaken and the success or likely success of such actions. | ||||
| 24:24:3.1.1.3.3.15.1.7 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | O | Subpart O—Performance Reviews | § 570.906 Review of urban counties. | HUD | In reviewing the performance of an urban county, HUD will hold the county accountable for the actions or failures to act of any of the units of general local government participating in the urban county. Where the Department finds that a participating unit of government has failed to cooperate with the county to undertake or assist in undertaking an essential community development or assisted housing activity and that such failure results, or is likely to result, in a failure of the urban county to meet any requirement of the program or other applicable laws, the Department may prohibit the county's use of funds made available under this part for that unit of government. HUD will also consider any such failure to cooperate in its review of a future cooperation agreement between the county and such included unit of government described at § 570.307(b)(2). | ||||
| 24:24:3.1.1.3.3.15.1.8 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | O | Subpart O—Performance Reviews | §§ 570.907-570.909 [Reserved] | HUD | |||||
| 24:24:3.1.1.3.3.15.1.9 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | O | Subpart O—Performance Reviews | § 570.910 Corrective and remedial actions. | HUD | [53 FR 34466, Sept. 6, 1988, as amended at 60 FR 1917, Jan. 5, 1995; 72 FR 12537, Mar. 15, 2007] | (a) General. Consistent with the procedures described in § 570.900(b), the Secretary may take one or more of the actions described in paragraph (b) of this section. Such actions shall be designed to prevent a continuation of the performance deficiency; mitigate, to the extent possible, the adverse effects or consequences of the deficiency; and prevent a recurrence of the deficiency. (b) Actions authorized. The following lists the actions that HUD may take in response to a deficiency identified during the review of a recipient's performance: (1) Issue a letter of warning advising the recipient of the deficiency and putting the recipient on notice that additional action will be taken if the deficiency is not corrected or is repeated; (2) Recommend, or request the recipient to submit, proposals for corrective actions, including the correction or removal of the causes of the deficiency, through such actions as: (i) Preparing and following a schedule of actions for carrying out the affected CDBG activities, consisting of schedules, timetables and milestones necessary to implement the affected CDBG activities; (ii) Establishing and following a management plan which assigns responsibilities for carrying out the actions identified in paragraph (b)(2)(i) of this section; (iii) For entitlement and Insular Areas recipients, canceling or revising affected activities that are no longer feasible to implement due to the deficiency and re-programming funds from such affected activities to other eligible activities (pursuant to the citizen participation requirements in 24 CFR part 91); or (iv) Other actions which will serve to prevent a continuation of the deficiency, mitigate (to the extent possible) the adverse effects or consequences of the deficiency, and prevent a recurrence of the deficiency; (3) Advise the recipient that a certification will no longer be acceptable and that additional assurances will be required; (4) Advise the recipient to suspend disbursement of funds for the deficient activity; (5) Advise … | |||
| 24:24:3.1.1.3.3.3.1.1 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | C | Subpart C—Eligible Activities | § 570.200 General policies. | HUD | [53 FR 34439, Sept. 6, 1988, as amended at 54 FR 47031, Nov. 8, 1989; 57 FR 27119, June 17, 1992; 60 FR 1943, Jan. 5, 1995; 60 FR 17445, Apr. 6, 1995; 60 FR 56910, Nov. 9, 1995; 61 FR 11476, Mar. 20, 1996; 61 FR 18674, Apr. 29, 1996; 65 FR 70215, Nov. 21, 2000; 68 FR 56404, Sept. 30, 2003; 69 FR 32778, June 10, 2004; 70 FR 76369, Dec. 23, 2005; 72 FR 46370, Aug. 17, 2007; 80 FR 67633, Nov. 3, 2015; 80 FR 69870, Nov. 12, 2015; 80 FR 75936, Dec. 7, 2015; 81 FR 19418, Apr. 4, 2016; 90 FR 894, Jan. 6, 2025] | (a) Determination of eligibility. An activity may be assisted in whole or in part with CDBG funds only if all of the following requirements are met: (1) Compliance with section 105 of the Act. Each activity must meet the eligibility requirements of section 105 of the Act as further defined in this subpart. (2) Compliance with national objectives. Grant recipients under the Entitlement and HUD-administered Small Cities programs and recipients of insular area funds under section 106 of the Act must certify that their projected use of funds has been developed so as to give maximum feasible priority to activities which will carry out one of the national objectives of benefit to low- and moderate-income families or aid in the prevention or elimination of slums or blight. The projected use of funds may also include activities that the recipient certifies are designed to meet other community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community where other financial resources are not available to meet such needs. Consistent with the foregoing, each recipient under the Entitlement or HUD-administered Small Cities programs, and each recipient of insular area funds under section 106 of the Act must ensure and maintain evidence that each of its activities assisted with CDBG funds meets one of the three national objectives as contained in its certification. Criteria for determining whether an activity addresses one or more of these objectives are found in § 570.208. (3) Compliance with the primary objective. The primary objective of the Act is described in section 101(c) of the Act. Consistent with this objective, entitlement recipients, non-entitlement CDBG grantees in Hawaii, and recipients of insular area funds under section 106 of the Act must ensure that, over a period of time specified in their certification not to exceed three years, not less than 70 percent of the aggregate of CDBG fund expenditures shall be f… | |||
| 24:24:3.1.1.3.3.3.1.10 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | C | Subpart C—Eligible Activities | § 570.209 Guidelines for evaluating and selecting economic development projects. | HUD | [60 FR 1947, Jan. 5, 1995, as amended at 60 FR 17445, Apr. 6, 1995; 71 FR 30035, May 24, 2006; 72 FR 12535, Mar. 15, 2007; 72 FR 46370, Aug. 17, 2007] | The following guidelines are provided to assist the recipient to evaluate and select activities to be carried out for economic development purposes. Specifically, these guidelines are applicable to activities that are eligible for CDBG assistance under § 570.203. These guidelines also apply to activities carried out under the authority of § 570.204 that would otherwise be eligible under § 570.203, were it not for the involvement of a Community-Based Development Organization (CBDO). (This would include activities where a CBDO makes loans to for-profit businesses.) These guidelines are composed of two components: guidelines for evaluating project costs and financial requirements; and standards for evaluating public benefit. The standards for evaluating public benefit are mandatory, but the guidelines for evaluating projects costs and financial requirements are not. (a) Guidelines and objectives for evaluating project costs and financial requirements. HUD has developed guidelines that are designed to provide the recipient with a framework for financially underwriting and selecting CDBG-assisted economic development projects which are financially viable and will make the most effective use of the CDBG funds. These guidelines, also referred to as the underwriting guidelines, are published as appendix A to this part. The use of the underwriting guidelines published by HUD is not mandatory. However, grantees electing not to use these guidelines would be expected to conduct basic financial underwriting prior to the provision of CDBG financial assistance to a for-profit business. Where appropriate, HUD's underwriting guidelines recognize that different levels of review are appropriate to take into account differences in the size and scope of a proposed project, and in the case of a microenterprise or other small business to take into account the differences in the capacity and level of sophistication among businesses of differing sizes. Recipients are encouraged, when they develop their own programs and underwriting … | |||
| 24:24:3.1.1.3.3.3.1.11 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | C | Subpart C—Eligible Activities | § 570.210 Prohibition on use of assistance for employment relocation activities. | HUD | [70 FR 76369, Dec. 23, 2005] | (a) Prohibition. CDBG funds may not be used to directly assist a business, including a business expansion, in the relocation of a plant, facility, or operation from one LMA to another LMA if the relocation is likely to result in a significant loss of jobs in the LMA from which the relocation occurs. (b) Definitions. The following definitions apply to this section: (1) Directly assist. Directly assist means the provision of CDBG funds for activities pursuant to: (i) § 570.203(b); or (ii) §§ 570.201(a)-(d), 570.201(l), 570.203(a), or § 570.204 when the grantee, subrecipient, or, in the case of an activity carried out pursuant to § 570.204, a Community Based Development Organization (CDBO) enters into an agreement with a business to undertake one or more of these activities as a condition of the business relocating a facility, plant, or operation to the grantee's LMA. Provision of public facilities and indirect assistance that will provide benefit to multiple businesses does not fall under the definition of “directly assist,” unless it includes the provision of infrastructure to aid a specific business that is the subject of an agreement with the specific assisted business. (2) Labor market area (LMA). For metropolitan areas, an LMA is an area defined as such by the BLS. An LMA is an economically integrated geographic area within which individuals can live and find employment within a reasonable distance or can readily change employment without changing their place of residence. In addition, LMAs are nonoverlapping and geographically exhaustive. For metropolitan areas, grantees must use employment data, as defined by the BLS, for the LMA in which the affected business is currently located and from which current jobs may be lost. For non-metropolitan areas, an LMA is either an area defined by the BLS as an LMA, or a state may choose to combine non-metropolitan LMAs. States are required to define or reaffirm prior definitions of their LMAs on an annual basis and retain records to substantiate such areas p… | |||
| 24:24:3.1.1.3.3.3.1.2 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | C | Subpart C—Eligible Activities | § 570.201 Basic eligible activities. | HUD | [53 FR 34439, Sept. 6, 1988, as amended at 53 FR 31239, Aug. 17, 1988; 55 FR 29308, July 18, 1990; 57 FR 27119, June 17, 1992; 60 FR 1943, Jan. 5, 1995; 60 FR 56911, Nov. 9, 1995; 61 FR 18674, Apr. 29, 1996; 65 FR 70215, Nov. 21, 2000; 67 FR 47213, July 17, 2002; 71 FR 30034, May 24, 2006; 80 FR 69870, Nov. 12, 2015; 81 FR 90659, Dec. 14, 2016] | CDBG funds may be used for the following activities: (a) Acquisition. Acquisition in whole or in part by the recipient, or other public or private nonprofit entity, by purchase, long-term lease, donation, or otherwise, of real property (including air rights, water rights, rights-of-way, easements, and other interests therein) for any public purpose, subject to the limitations of § 570.207. (b) Disposition. Disposition, through sale, lease, donation, or otherwise, of any real property acquired with CDBG funds or its retention for public purposes, including reasonable costs of temporarily managing such property or property acquired under urban renewal, provided that the proceeds from any such disposition shall be program income subject to the requirements set forth in § 570.504. (c) Public facilities and improvements. Acquisition, construction, reconstruction, rehabilitation or installation of public facilities and improvements, except as provided in § 570.207(a), carried out by the recipient or other public or private nonprofit entities. (However, activities under this paragraph may be directed to the removal of material and architectural barriers that restrict the mobility and accessibility of elderly or severely disabled persons to public facilities and improvements, including those provided for in § 570.207(a)(1).) In undertaking such activities, design features and improvements which promote energy efficiency may be included. Such activities may also include the execution of architectural design features, and similar treatments intended to enhance the aesthetic quality of facilities and improvements receiving CDBG assistance, such as decorative pavements, railings, sculptures, pools of water and fountains, and other works of art. Facilities designed for use in providing shelter for persons having special needs are considered public facilities and not subject to the prohibition of new housing construction described in § 570.207(b)(3). Such facilities include shelters for the homeless; convalescent home… | |||
| 24:24:3.1.1.3.3.3.1.3 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | C | Subpart C—Eligible Activities | § 570.202 Eligible rehabilitation and preservation activities. | HUD | [53 FR 34439, Sept. 6, 1988; 53 FR 41330, Oct. 21, 1988, as amended at 60 FR 1944, Jan. 5, 1995; 60 FR 56911, Nov. 9, 1995; 64 FR 50225, Sept. 15, 1999; 71 FR 30035, May 24, 2006; 82 FR 92636, Dec. 20, 2016] | (a) Types of buildings and improvements eligible for rehabilitation assistance. CDBG funds may be used to finance the rehabilitation of: (1) Privately owned buildings and improvements for residential purposes; improvements to a single-family residential property which is also used as a place of business, which are required in order to operate the business, need not be considered to be rehabilitation of a commercial or industrial building, if the improvements also provide general benefit to the residential occupants of the building; (2) Low-income public housing and other publicly owned residential buildings and improvements; (3) Publicly or privately owned commercial or industrial buildings, except that the rehabilitation of such buildings owned by a private for-profit business is limited to improvement to the exterior of the building, abatement of asbestos hazards, lead-based paint hazard evaluation and reduction, and the correction of code violations; (4) Nonprofit-owned nonresidential buildings and improvements not eligible under § 570.201(c); and (5) Manufactured housing when such housing constitutes part of the community's permanent housing stock. (b) Types of assistance. CDBG funds may be used to finance the following types of rehabilitation activities, and related costs, either singly, or in combination, through the use of grants, loans, loan guarantees, interest supplements, or other means for buildings and improvements described in paragraph (a) of this section, except that rehabilitation of commercial or industrial buildings is limited as described in paragraph (a)(3) of this section. (1) Assistance to private individuals and entities, including profit making and nonprofit organizations, to acquire for the purpose of rehabilitation, and to rehabilitate properties, for use or resale for residential purposes; (2) Labor, materials, and other costs of rehabilitation of properties, including repair directed toward an accumulation of deferred maintenance, replacement of principal fixtures and comp… | |||
| 24:24:3.1.1.3.3.3.1.4 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | C | Subpart C—Eligible Activities | § 570.203 Special economic development activities. | HUD | [53 FR 34439, Sept. 6, 1988, as amended at 60 FR 1944, Jan. 5, 1995; 71 FR 30035, May 24, 2006] | A recipient may use CDBG funds for special economic development activities in addition to other activities authorized in this subpart that may be carried out as part of an economic development project. Guidelines for selecting activities to assist under this paragraph are provided at § 570.209. The recipient must ensure that the appropriate level of public benefit will be derived pursuant to those guidelines before obligating funds under this authority. Special activities authorized under this section do not include assistance for the construction of new housing. Activities eligible under this section may include costs associated with project-specific assessment or remediation of known or suspected environmental contamination. Special economic development activities include: (a) The acquisition, construction, reconstruction, rehabilitation or installation of commercial or industrial buildings, structures, and other real property equipment and improvements, including railroad spurs or similar extensions. Such activities may be carried out by the recipient or public or private nonprofit subrecipients. (b) The provision of assistance to a private for-profit business, including, but not limited to, grants, loans, loan guarantees, interest supplements, technical assistance, and other forms of support, for any activity where the assistance is appropriate to carry out an economic development project, excluding those described as ineligible in § 570.207(a). In selecting businesses to assist under this authority, the recipient shall minimize, to the extent practicable, displacement of existing businesses and jobs in neighborhoods. (c) Economic development services in connection with activities eligible under this section, including, but not limited to, outreach efforts to market available forms of assistance; screening of applicants; reviewing and underwriting applications for assistance; preparation of all necessary agreements; management of assisted activities; and the screening, referral, and placement of applicants… | |||
| 24:24:3.1.1.3.3.3.1.5 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | C | Subpart C—Eligible Activities | § 570.204 Special activities by Community-Based Development Organizations (CBDOs). | HUD | [60 FR 1944, Jan. 5, 1995, as amended at 71 FR 30035, May 24, 2006; 81 FR 92636, Dec. 20, 2016] | (a) Eligible activities. The recipient may provide CDBG funds as grants or loans to any CBDO qualified under this section to carry out a neighborhood revitalization, community economic development, or energy conservation project. The funded project activities may include those listed as eligible under this subpart, and, except as described in paragraph (b) of this section, activities not otherwise listed as eligible under this subpart. For purposes of qualifying as a project under paragraphs (a)(1), (a)(2), and (a)(3) of this section, the funded activity or activities may be considered either alone or in concert with other project activities either being carried out or for which funding has been committed. For purposes of this section: (1) Neighborhood revitalization project includes activities of sufficient size and scope to have an impact on the decline of a geographic location within the jurisdiction of a unit of general local government (but not the entire jurisdiction) designated in comprehensive plans, ordinances, or other local documents as a neighborhood, village, or similar geographical designation; or the entire jurisdiction of a unit of general local government which is under 25,000 population; (2) Community economic development project includes activities that increase economic opportunity, principally for persons of low- and moderate-income, or that stimulate or retain businesses or permanent jobs, including projects that include one or more such activities that are clearly needed to address a lack of affordable housing accessible to existing or planned jobs and those activities specified at 24 CFR 91.1(a)(1)(iii); activities under this paragraph may include costs associated with project-specific assessment or remediation of known or suspected environmental contamination; (3) Energy conservation project includes activities that address energy conservation, principally for the benefit of the residents of the recipient's jurisdiction; and (4) To carry out a project means that the CBDO undertakes … | |||
| 24:24:3.1.1.3.3.3.1.6 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | C | Subpart C—Eligible Activities | § 570.205 Eligible planning, urban environmental design and policy-planning-management-capacity building activities. | HUD | [53 FR 34439, Sept. 6, 1988, as amended at 56 FR 56127, Oct. 31, 1991; 60 FR 1915, Jan. 5, 1995; 71 FR 30035, May 24, 2006; 80 FR 42366, July 16, 2015; 85 FR 47910, Aug. 7, 2020] | (a) Planning activities which consist of all costs of data gathering, studies, analysis, and preparation of plans and the identification of actions that will implement such plans, including, but not limited to: (1) Comprehensive plans; (2) Community development plans; (3) Functional plans, in areas such as: (i) Housing, including the development of a consolidated plan; (ii) Land use and urban environmental design; (iii) Economic development; (iv) Open space and recreation; (v) Energy use and conservation; (vi) Floodplain and wetlands management in accordance with the requirements of Executive Orders 11988 and 11990; (vii) Transportation; (viii) Utilities; and (ix) Historic preservation. (4) Other plans and studies such as: (i) Small area and neighborhood plans; (ii) Capital improvements programs; (iii) Individual project plans (but excluding engineering and design costs related to a specific activity which are eligible as part of the cost of such activity under §§ 570.201-570.204); (iv) The reasonable costs of general environmental, urban environmental design and historic preservation studies; and general environmental assessment- and remediation-oriented planning related to properties with known or suspected environmental contamination. However, costs necessary to comply with 24 CFR part 58, including project specific environmental assessments and clearances for activities eligible for assistance under this part, are eligible as part of the cost of such activities under §§ 570.201-570.204. Costs for such specific assessments and clearances may also be incurred under this paragraph but would then be considered planning costs for the purposes of § 570.200(g); (v) Strategies and action programs to implement plans, including the development of codes, ordinances and regulations; (vi) Support of clearinghouse functions, such as those specified in Executive Order 12372; and (vii) Developing an inventory of properties with known or suspected environmental contamination. (5) [Reserved] (6) Policy—pl… | |||
| 24:24:3.1.1.3.3.3.1.7 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | C | Subpart C—Eligible Activities | § 570.206 Program administrative costs. | HUD | [53 FR 34439, Sept. 6, 1988; 53 FR 41330, Oct. 21, 1988, as amended at 54 FR 37411, Sept. 8, 1989; 60 FR 56912, Nov. 9, 1995; 69 FR 32778, June 10, 2004; 80 FR 69870, Nov. 12, 2015; 80 FR 75937, Dec. 7, 2015] | Payment of reasonable program administrative costs and carrying charges related to the planning and execution of community development activities assisted in whole or in part with funds provided under this part and, where applicable, housing activities (described in paragraph (g) of this section) covered in the recipient's housing assistance plan. This does not include staff and overhead costs directly related to carrying out activities eligible under § 570.201 through § 570.204, since those costs are eligible as part of such activities. (a) General management, oversight and coordination. Reasonable costs of overall program management, coordination, monitoring, and evaluation. Such costs include, but are not necessarily limited to, necessary expenditures for the following: (1) Salaries, wages, and related costs of the recipient's staff, the staff of local public agencies, or other staff engaged in program administration. In charging costs to this category the recipient may either include the entire salary, wages, and related costs allocable to the program of each person whose primary responsibilities with regard to the program involve program administration assignments, or the pro rata share of the salary, wages, and related costs of each person whose job includes any program administration assignments. The recipient may use only one of these methods during the program year. Program administration includes the following types of assignments: (i) Providing local officials and citizens with information about the program; (ii) Preparing program budgets and schedules, and amendments thereto; (iii) Developing systems for assuring compliance with program requirements; (iv) Developing interagency agreements and agreements with subrecipients and contractors to carry out program activities; (v) Monitoring program activities for progress and compliance with program requirements; (vi) Preparing reports and other documents related to the program for submission to HUD; (vii) Coordinating the resolution of audit… | |||
| 24:24:3.1.1.3.3.3.1.8 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | C | Subpart C—Eligible Activities | § 570.207 Ineligible activities. | HUD | [53 FR 34439, Sept. 6, 1988; 53 FR 41330, Oct. 21, 1988, as amended at 60 FR 1945, Jan. 5, 1995; 60 FR 56912, Nov. 9, 1995; 65 FR 70215, Nov. 21, 2000; 80 FR 75937, Dec. 7, 2015] | The general rule is that any activity that is not authorized under the provisions of §§ 570.201-570.206 is ineligible to be assisted with CDBG funds. This section identifies specific activities that are ineligible and provides guidance in determining the eligibility of other activities frequently associated with housing and community development. (a) The following activities may not be assisted with CDBG funds: (1) Buildings or portions thereof, used for the general conduct of government as defined at § 570.3(d) cannot be assisted with CDBG funds. This does not include, however, the removal of architectural barriers under § 570.201(c) involving any such building. Also, where acquisition of real property includes an existing improvement which is to be used in the provision of a building for the general conduct of government, the portion of the acquisition cost attributable to the land is eligible, provided such acquisition meets a national objective described in § 570.208. (2) General government expenses. Except as otherwise specifically authorized in this subpart or under 2 CFR part 200, subpart E, expenses required to carry out the regular responsibilities of the unit of general local government are not eligible for assistance under this part. (3) Political activities. CDBG funds shall not be used to finance the use of facilities or equipment for political purposes or to engage in other partisan political activities, such as candidate forums, voter transportation, or voter registration. However, a facility originally assisted with CDBG funds may be used on an incidental basis to hold political meetings, candidate forums, or voter registration campaigns, provided that all parties and organizations have access to the facility on an equal basis, and are assessed equal rent or use charges, if any. (b) The following activities may not be assisted with CDBG funds unless authorized under provisions of § 570.203 or as otherwise specifically noted herein or when carried out by an entity under the provisions of… | |||
| 24:24:3.1.1.3.3.3.1.9 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | C | Subpart C—Eligible Activities | § 570.208 Criteria for national objectives. | HUD | [53 FR 34439, Sept. 6, 1988; 53 FR 41330, Oct. 21, 1988, as amended at 60 FR 1945, Jan. 5, 1995; 60 FR 17445, Apr. 6, 1995; 60 FR 56912, Nov. 9, 1995; 61 FR 18674, Apr. 29, 1996; 71 FR 30035, May 24, 2006; 72 FR 46370, Aug. 17, 2007; 88 FR 30498, May 11, 2023] | The following criteria shall be used to determine whether a CDBG-assisted activity complies with one or more of the national objectives as required under § 570.200(a)(2): (a) Activities benefiting low- and moderate-income persons. Activities meeting the criteria in paragraph (a) (1), (2), (3), or (4) of this section as applicable, will be considered to benefit low and moderate income persons unless there is substantial evidence to the contrary. In assessing any such evidence, the full range of direct effects of the assisted activity will be considered. (The recipient shall appropriately ensure that activities that meet these criteria do not benefit moderate income persons to the exclusion of low income persons.) (1) Area benefit activities. (i) An activity, the benefits of which are available to all the residents in a particular area, where at least 51 percent of the residents are low and moderate income persons. Such an area need not be coterminous with census tracts or other officially recognized boundaries but must be the entire area served by the activity. An activity that serves an area that is not primarily residential in character shall not qualify under this criterion. (ii) For metropolitan cities and urban counties, an activity that would otherwise qualify under § 570.208(a)(1)(i), except that the area served contains less than 51 percent low- and moderate-income residents, will also be considered to meet the objective of benefiting low- and moderate-income persons where the proportion of such persons in the area is within the highest quartile of all areas in the recipient's jurisdiction in terms of the degree of concentration of such persons. This exception is inapplicable to non-entitlement CDBG grants in Hawaii. In applying this exception, HUD will determine the lowest proportion a recipient may use to qualify an area for this purpose, as follows: (A) All census block groups in the recipient's jurisdiction shall be rank ordered from the block group of highest proportion of low and moderate inc… | |||
| 24:24:3.1.1.3.3.4.1.1 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | D | Subpart D—Entitlement Grants | § 570.300 General. | HUD | [72 FR 46370, Aug. 17, 2007] | This subpart describes the policies and procedures governing the making of community development block grants to entitlement communities and to non-entitlement counties in the State of Hawaii. The policies and procedures set forth in subparts A, C, J, K, and O of this part also apply to entitlement grantees and to non-entitlement grantees in the State of Hawaii. Sections 570.307 and 570.308 of this subpart do not apply to the Hawaii non-entitlement grantees. | |||
| 24:24:3.1.1.3.3.4.1.2 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | D | Subpart D—Entitlement Grants | § 570.301 Activity locations and float-funding. | HUD | [60 FR 56913, Nov. 9, 1995] | The consolidated plan, action plan, and amendment submission requirements referred to in this section are those in 24 CFR part 91. (a) For activities for which the grantee has not yet decided on a specific location, such as when the grantee is allocating an amount of funds to be used for making loans or grants to businesses or for residential rehabilitation, the description in the action plan or any amendment shall identify who may apply for the assistance, the process by which the grantee expects to select who will receive the assistance (including selection criteria), and how much and under what terms the assistance will be provided, or in the case of a planned public facility or improvement, how it expects to determine its location. (b) Float-funded activities and guarantees. A recipient may use undisbursed funds in the line of credit and its CDBG program account that are budgeted in statements or action plans for one or more other activities that do not need the funds immediately, subject to the limitations described below. Such funds shall be referred to as the “float” for purposes of this section and the action plan. Each activity carried out using the float must meet all of the same requirements that apply to CDBG-assisted activities generally, and must be expected to produce program income in an amount at least equal to the amount of the float so used. Whenever the recipient proposes to fund an activity with the float, it must include the activity in its action plan or amend the action plan for the current program year. For purposes of this section, an activity that uses such funds will be called a “float-funded activity.” (1) Each float-funded activity must be individually listed and described as such in the action plan. (2)(i) The expected time period between obligation of assistance for a float-funded activity and receipt of program income in an amount at least equal to the full amount drawn from the float to fund the activity may not exceed 2.5 years. An activity from which program income suffic… | |||
| 24:24:3.1.1.3.3.4.1.3 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | D | Subpart D—Entitlement Grants | § 570.302 Submission requirements. | HUD | [60 FR 1915, Jan. 5, 1995] | In order to receive its annual CDBG entitlement grant, a grantee must submit a consolidated plan in accordance with 24 CFR part 91. That part includes requirements for the content of the consolidated plan, for the process of developing the consolidated plan, including citizen participation provisions, for the submission date, for HUD approval, and for the amendment process. | |||
| 24:24:3.1.1.3.3.4.1.4 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | D | Subpart D—Entitlement Grants | § 570.303 Certifications. | HUD | [60 FR 1915, Jan. 5, 1995] | The jurisdiction must make the certifications that are set forth in 24 CFR part 91 as part of the consolidated plan. | |||
| 24:24:3.1.1.3.3.4.1.5 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | D | Subpart D—Entitlement Grants | § 570.304 Making of grants. | HUD | [53 FR 34449, Sept. 6, 1988, as amended at 60 FR 1915, Jan. 5, 1995; 60 FR 16379, Mar. 30, 1995; 60 FR 56913, Nov. 9, 1995] | (a) Approval of grant. HUD will approve a grant if the jurisdiction's submissions have been made and approved in accordance with 24 CFR part 91, and the certifications required therein are satisfactory to the Secretary. The certifications will be satisfactory to the Secretary for this purpose unless the Secretary has determined pursuant to subpart O of this part that the grantee has not complied with the requirements of this part, has failed to carry out its consolidated plan as provided under § 570.903, or has determined that there is evidence, not directly involving the grantee's past performance under this program, that tends to challenge in a substantial manner the grantee's certification of future performance. If the Secretary makes any such determination, however, further assurances may be required to be submitted by the grantee as the Secretary may deem warranted or necessary to find the grantee's certification satisfactory. (b) Grant agreement. The grant will be made by means of a grant agreement executed by both HUD and the grantee. (c) Grant amount. The Secretary will make a grant in the full entitlement amount, generally within the last 30 days of the grantee's current program year, unless: (1) Either the consolidated plan is not received by August 16 of the federal fiscal year for which funds are appropriated or the consolidated plan is not approved under 24 CFR part 91, subpart F—in which case, the grantee will forfeit the entire entitlement amount; or (2) The grantee's performance does not meet the performance requirements or criteria prescribed in subpart O and the grant amount is reduced. | |||
| 24:24:3.1.1.3.3.4.1.6 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | D | Subpart D—Entitlement Grants | § 570.307 Urban counties. | HUD | [53 FR 34449, Sept. 6, 1988, as amended at 56 FR 56127, Oct. 31, 1991; 68 FR 69582, Dec. 12, 2003] | (a) Determination of qualification. The Secretary will determine the qualifications of counties to receive entitlements as urban counties upon receipt of qualification documentation from counties at such time, and in such manner and form as prescribed by HUD. The Secretary shall determine eligibility and applicable portions of each eligible county for purposes of fund allocation under section 106 of the Act on the basis of information available from the U.S. Bureau of the Census with respect to population and other pertinent demographic characteristics, and based on information provided by the county and its included units of general local government. (b) Qualification as an urban county. (1) A county will qualify as an urban county if such county meets the definition at § 570.3(3). As necessitated by this definition, the Secretary shall determine which counties have authority to carry out essential community development and housing assistance activities in their included units of general local government without the consent of the local governing body and which counties must execute cooperation agreements with such units to include them in the urban county for qualification and grant calculation purposes. (2) At the time of urban county qualification, HUD may refuse to recognize the cooperation agreement of a unit of general local government in an urban county where, based on past performance and other available information, there is substantial evidence that such unit does not cooperate in the implementation of the essential community development or housing assistance activities or where legal impediments to such implementation exist, or where participation by a unit of general local government in noncompliance with the applicable law in subpart K would constitute noncompliance by the urban county. In such a case, the unit of general local government will not be permitted to participate in the urban county, and its population or other needs characteristics will not be considered in the determination of wh… | |||
| 24:24:3.1.1.3.3.4.1.7 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | D | Subpart D—Entitlement Grants | § 570.308 Joint requests. | HUD | [53 FR 34449, Sept. 6, 1988, as amended at 60 FR 1915, Jan. 5, 1995] | (a) Joint requests and cooperation agreements. (1) Any urban county and any metropolitan city located, in whole or in part, within that county may submit a joint request to HUD to approve the inclusion of the metropolitan city as a part of the urban county for purposes of planning and implementing a joint community development and housing program. Such a joint request shall only be considered if submitted at the time the county is seeking a three year qualification or requalification as an urban county. Such a joint request shall, upon approval by HUD, remain effective for the period for which the county is qualified as an urban county. An urban county may be joined by more than one metropolitan city, but a metropolitan city located in more than one urban county may only be included in one urban county for any program year. A joint request shall be deemed approved by HUD unless HUD notifies the city and the county of its disapproval and the reasons therefore within 30 days of receipt of the request by HUD. (2) Each metropolitan city and urban county submitting a joint request shall submit an executed cooperation agreement to undertake or to assist in the undertaking of essential community development and housing assistance activities, as defined in § 570.307(c). (b) Joint grant amount. The grant amount for a joint recipient shall be the sum of the amounts authorized for the individual entitlement grantees, as described in section 106 of the Act. The urban county shall be the grant recipient. (c) Effect of inclusion. Upon urban county qualification and HUD approval of the joint request and cooperation agreement, the metropolitan city shall be considered a part of the urban county for purposes of program planning and implementation for the period of the urban county qualification, and shall be treated the same as any other unit of general local government which is part of the urban county. (d) Submission requirements. In requesting a grant under this part, the urban county shall make a single submission… | |||
| 24:24:3.1.1.3.3.4.1.8 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | D | Subpart D—Entitlement Grants | § 570.309 Restriction on location of activities. | HUD | [60 FR 56914, Nov. 9, 1995] | CDBG funds may assist an activity outside the jurisdiction of the grantee only if the grantee determines that such an activity is necessary to further the purposes of the Act and the recipient's community development objectives, and that reasonable benefits from the activity will accrue to residents within the jurisdiction of the grantee. The grantee shall document the basis for such determination prior to providing CDBG funds for the activity. | |||
| 24:24:3.1.1.3.3.5.1.1 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | E | Subpart E—Special Purpose Grants | § 570.400 General. | HUD | [50 FR 37525, Sept. 16, 1985, as amended at 56 FR 18968, Apr. 24, 1991] | (a) Applicability. The policies and procedures set forth in subparts A, C, J, K, and O of this part shall apply to this subpart, except to the extent that they are specifically modified or augmented by the contents of this subpart, including specified exemptions described herein. The HUD Environmental Review Procedures contained in 24 CFR part 58 also apply to this subpart, unless otherwise specifically provided herein. (b) Data. Wherever data are used in this subpart for selecting applicants for assistance or for determining grant amounts, the source of such data shall be the most recent information available from the U.S. Bureau of the Census which is referable to the same point or period of time. (c) Review of applications for discretionary assistance —(1) Review components. An application for assistance under this subpart shall be reviewed by HUD to ensure that: (i) The application is postmarked or received on or before any final date established by HUD; (ii) The application is complete; (iii) Required certifications have been included in the application; and (iv) The application meets the specific program requirements listed in the Federal Register Notice published in connection with a competition for funding, and any other specific requirements listed under this subpart for each of the programs. (2) Timing and review. HUD is not required by the Act to review and approve an application for assistance or a contract proposal within any specified time period. However, HUD will attempt to complete its review of any application/proposal within 75 days. (3) Notification to applicant/proposer. HUD will notify the applicant/proposer in writing that the applicant/proposal has been approved, partially approved, or disapproved. If an application/proposal is partially approved or disapproved, the applicant/proposer will be informed of the basis for HUD's decision. HUD may make conditional approvals under § 570.304(d). (d) Program amendments. (1) Recipients shall request prior written HUD approval… | |||
| 24:24:3.1.1.3.3.5.1.10 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | E | Subpart E—Special Purpose Grants | § 570.415 Community Development Work Study Program. | HUD | [54 FR 27131, June 27, 1989, as amended at 61 FR 36458, July 10, 1996; 63 FR 31869, June 10, 1998; 80 FR 75937, Dec. 7, 2015] | (a) Applicability and objectives. HUD makes grants under CDWSP to institutions of higher education, either directly or through areawide planning organizations or States, for the purpose of providing assistance to economically disadvantaged and minority students who participate in a work study program while enrolled in full-time graduate programs in community and economic development, community planning, and community management. The primary objectives of the program are to attract economically disadvantaged and minority students to careers in community and economic development, community planning, and community management, and to provide a cadre of well-qualified professionals to plan, implement and administer local community development programs. (b) Definitions. The following definitions apply to CDWSP: Applicant means an institution of higher education, a State, or an areawide planning organization that submits an application for assistance under CDWSP. Areawide planning organization (APO) means an organization authorized by law or by interlocal agreement to undertake planning and other activities for a metropolitan or nonmetropolitan area. For an organization operating in a nonmetropolitan area to be considered an APO, its jurisdiction must cover at least one county. CDWSP means the Community Development Work Study Program. Community building means community and economic development, community planning, community management, land use and housing activities. Community building academic program or academic program means a graduate degree program whose purpose and focus is to educate students in community building. “Community building academic program” or “academic program” includes but is not limited to graduate degree programs in community and economic development, community planning, community management, public administration, public policy, urban economics, urban management, and urban planning. “Community building academic program” or “academic program” excludes social and humanistic fields s… | |||
| 24:24:3.1.1.3.3.5.1.11 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | E | Subpart E—Special Purpose Grants | § 570.416 Hispanic-serving institutions work study program. | HUD | [62 FR 17493, Apr. 9, 1997, as amended at 63 FR 9683, Feb. 25, 1998; 80 FR 75937, Dec. 7, 2015] | (a) Applicability and objectives. HUD makes grants under the Hispanic-serving Institutions Work Study Program (HSI-WSP) to public and private non-profit Hispanic-serving Institutions (HSI's) of higher education for the purpose of providing assistance to economically disadvantaged and minority students who participate in a work study program while enrolled in full-time community college programs in community building, and to provide entry to pre-professional careers in these fields. (b) Definitions. The following definitions apply to HSI-WSP: Applicant means a public or private non-profit Hispanic-serving institution of higher education that offers only two-year degree programs, including at least one community building academic degree program, and that applies for funding under HSI-WSP. Community building means community and economic development, community planning, community management, public policy, urban economics, urban management, urban planning, land use planning, housing, and related fields. Related fields include, but are not limited to, administration of justice, child development, and human services. Community building academic program or academic program means an undergraduate associate degree program whose purpose and focus is to educate students in community building. The terms “community building academic program” or “academic program” refer to the types of academic programs encompassed in the statutory phrase “community or economic development, community planning or community management.” For purposes of HSI-WSP, such programs include, but are not limited to, associate degree programs in community and economic development, community planning, community management, public administration, public policy, urban economics, urban management, urban planning, land use planning, housing, and related fields of study. Related fields of study that promote community building, such as administration of justice, child development, and human services are eligible, while fields such as natural science… | |||
| 24:24:3.1.1.3.3.5.1.2 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | E | Subpart E—Special Purpose Grants | § 570.401 Community adjustment and economic diversification planning assistance. | HUD | [59 FR 15016, Mar. 30, 1994] | (a) General —(1) Purpose. The purpose of this program is to assist units of general local government in nonentitlement areas to undertake the planning of community adjustments and economic diversification activities, in response to physical, social, economic or governmental impacts on the communities generated by the actions of the Department of Defense (DoD) defined in paragraph (a)(2) of this section. (2) Impacts. Funding under this section is available only to communities affected by one or more of the following DoD-related impacts: (i) The proposed or actual establishment, realignment, or closure of a military installation; (ii) The cancellation or termination of a DoD contract or the failure to proceed with an approved major weapon system program; (iii) A publicly announced planned major reduction in DoD spending that would directly and adversely affect a unit of general local government and result in the loss of 1,000 or more full-time DoD and contractor employee positions over a five-year period in the unit of general local government and the surrounding area; or (iv) The Secretary of HUD (in consultation with the Secretary of DoD) determines that an action described in paragraphs (a)(2)(i)-(iii) of this section is likely to have a direct and significant adverse consequence on the unit of general local government. (3) Form of awards. Planning assistance will be awarded in the form of grants. (4) Program administration. HUD will publish in the Federal Register early in each fiscal year the amount of funds to be available for that fiscal year for awards under this section. HUD will accept applications throughout the fiscal year, and will review and consider for funding each application according to the threshold and qualifying factors in paragraphs (f) and (g) of this section. (b) Definitions. In addition to the definitions in § 570.3 of this part, the following definitions apply to this section: (1) Adjustment planning. Generally, developing plans and proposals in direct response to … | |||
| 24:24:3.1.1.3.3.5.1.3 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | E | Subpart E—Special Purpose Grants | § 570.402 Technical assistance awards. | HUD | [56 FR 41938, Aug. 26, 1991, as amended at 80 FR 75937, Dec. 7, 2015] | (a) General. (1) The purpose of the Community Development Technical Assistance Program is to increase the effectiveness with which States, units of general local government, and Indian tribes plan, develop, and administer assistance under title I and section 810 of the Act. Title I programs are the Entitlement Program (24 CFR part 570, subpart D); the section 108 Loan Guarantee Program (24 CFR part 570, subpart M); the Urban Development Action Grant Program (24 CFR part 570, subpart G); the HUD-administered Small Cities Program (24 CFR part 570, subpart F); the State-administered Program for Non-Entitlement Communities (24 CFR part 570, subpart I); the grants for Indian Tribes program (24 CFR part 571); and the Special Purpose Grants for Insular Areas, Community Development Work Study and Historically Black Colleges and Universities (24 CFR part 570, subpart E). (2) Funding under this section is awarded for the provision of technical expertise in planning, managing or carrying out such programs including the activities being or to be assisted thereunder and other actions being or to be undertaken for the purpose of the program, such as increasing the effectiveness of public service and other activities in addressing identified needs, meeting applicable program requirements (e.g., citizen participation, nondiscrimination, 2 CFR part 200, increasing program management or capacity building skills, attracting business or industry to CDBG assisted economic development sites or projects, assisting eligible CDBG subrecipients such as neighborhood nonprofits or small cities in how to obtain CDBG funding from cities and States. The provision of technical expertise in other areas which may have some tangential benefit or effect on a program is insufficient to qualify for funding. (3) Awards may be made pursuant to HUD solicitations for assistance applications or procurement contract proposals issued in the form of a publicly available document which invites the submission of applications or proposals within a prescribe… | |||
| 24:24:3.1.1.3.3.5.1.4 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | E | Subpart E—Special Purpose Grants | § 570.403 New Communities. | HUD | [61 FR 11476, Mar. 20, 1996] | The regulations for New Communities grants in this section, that were effective immediately before April 19, 1996, will continue to govern the rights and obligations of recipients and HUD with respect to grants under the New Communities program. | |||
| 24:24:3.1.1.3.3.5.1.5 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | E | Subpart E—Special Purpose Grants | § 570.404 Historically Black colleges and universities program. | HUD | [56 FR 18968, Apr. 24, 1991] | (a) General. Grants under this section will be awarded to historically Black colleges and universities to expand their role and effectiveness in addressing community development needs, including neighborhood revitalization, housing and economic development in their localities, consistent with the purposes of title I of the Housing and Community Development Act of 1974. (b) Eligible applicants. Only historically Black colleges and universities (as determined by the Department of Education in accordance with that Department's responsibilities under Executive Order 12677, dated April 28, 1989) are eligible to submit applications. (c) Eligible activities. Activities that may be funded under this section are those eligible under §§ 570.201 through 570.207, provided that any activity which is required by State or local law to be carried out by a governmental entity may not be funded under this section. Notwithstanding the provisions of §§ 570.200(g), grants under this section are not subject to the 20 percent limitation on planning and program administration costs, as defined in §§ 570.205 and 570.206, respectively. (d) Applications. Applications will only be accepted from eligible applicants in response to a Request for Applications (RFA) which will be issued either concurrently with or after the publication of a Notice of Funding Availability (NOFA) published in the Federal Register. The NOFA will describe any special objectives sought to be achieved by the funding to be provided, including any limitations on the type of activities to be funded to achieve the objectives, points to be awarded to each of the selection criteria listed in paragraph (e) of this section, and any special factors to be evaluated in assigning points under the selection factors to achieve the stated objectives. The NOFA will also state the deadline for the submission of applications, the total funding available for the competition, and the maximum amount of individual grants. The NOFA will include further information and instructi… | |||
| 24:24:3.1.1.3.3.5.1.6 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | E | Subpart E—Special Purpose Grants | § 570.405 The insular areas. | HUD | [50 FR 37526, Sept. 16, 1985, as amended at 60 FR 56914, Nov. 9, 1995; 61 FR 32269, June 21, 1996] | (a) Eligible applicants. Eligible applicants are Guam, the Virgin Islands, American Samoa, the Trust Territory of the Pacific Islands, and the Commonwealth of the Northern Mariana Islands. (b) Threshold requirements. HUD shall review each grantee's progress on outstanding grants made under this section based on the grantee's performance report, the timeliness of close-outs and compliance with fund management requirements and pertinent regulations, taking into consideration the size of the grant and the degree and complexity of the program. If HUD determines upon such review that the applicant does not have the capacity effectively to administer a new grant, or a portion of a new grant, in addition to grants currently under administration, the applicant shall not be invited to submit an application for the current year's funding. (c) Previous audit findings and outstanding monetary obligations. HUD shall not accept for review an application from an applicant that has either an outstanding audit finding for any HUD program, or an outstanding monetary obligation to HUD that is in arrears, or for which a repayment schedule has not been established and agreed to. The Field Office manager may waive this restriction if he or she finds that the applicant has made a good faith effort to clear the audit. In no instance, however, shall a waiver be provided when funds are due HUD, unless a satisfactory arrangement for repayment of the debt has been made and payments are current. (d) Criteria for funding. The Secretary shall establish, for each fiscal year, an amount for which eligible applicants may apply. Grant amounts will be based on population of the applicant and its performance in previous years. In determining performance, HUD will consider program achievements and the applicant's effectiveness in using program funds. Effectiveness in using program funds shall be measured by reviewing audit, monitoring and performance reports. (e) Application and performance reporting. Application and performance reporti… | |||
| 24:24:3.1.1.3.3.5.1.7 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | E | Subpart E—Special Purpose Grants | § 570.406 Formula miscalculation grants. | HUD | [56 FR 41940, Aug. 26, 1991] | (a) General. Grants under this section will be made to States and units of general local government determined by the Secretary to have received insufficient amounts under section 106 of the Act as a result of a miscalculation of its share of funds under such section. (b) Application. Since the grant is to correct a technical error in the formula amount which should have been awarded under section 106, no application is required. (c) Use of funds. The use of funds shall be subject to the requirements, certifications and Final Statement otherwise applicable to the grantee's section 106 grant funds provided for the fiscal year in which the grant under this section is made. (d) Unavailability of funds. If sufficient funds are not available to make the grant in the fiscal year in which the Secretary makes the determination required in paragraph (a) of this section, the grant will be made, subject to the availability of appropriations for this subpart, in the next fiscal year. | |||
| 24:24:3.1.1.3.3.5.1.8 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | E | Subpart E—Special Purpose Grants | § 570.410 Special Projects Program. | HUD | [47 FR 30054, July 12, 1982, as amended at 54 FR 31672, Aug. 1, 1989; 55 FR 29309, July 18, 1990; 56 FR 56127, Oct. 31, 1991; 80 FR 69870, Nov. 12, 2015] | (a) Program objectives. The Community Development Special Projects Program enables HUD to award grants to States and units of general local government, subject to availability of funds, for special projects that address community development activities or techniques consistent with the purposes of title I of the Housing and Community Development Act of 1974, as amended. (b) Eligible applicants. Only States and units of general local government (as defined in § 570.3) are eligible to submit proposals or applications for Special Projects grants. Proposals or applications may be submitted by eligible applicants on behalf of themselves, on behalf of other eligible applicants, or jointly by more than one eligible applicant. (c) Eligible activities. (1) Project activities that may be funded under this section are those eligible under 24 CFR part 570—Community Development Block Grants, subpart C—Eligible Activities. No more than twenty (20) percent of the funds awarded under this section may be used for overall program administration or planning activities eligible under §§ 570.205 and 570.206. (2) The amount of funds awarded to a unit of general local government under this section that may be used for public service activities is limited. The applicant may use whichever of the following methods of calculation yields the highest amount: (i) Fifteen percent of the special projects grant; (ii) An amount equal to 15 percent of the sum of special project grant funds plus grant funds received for the same origin year under the Entitlement or State program, less the amount of the Entitlement or State program grant funds which will be used for other public service activities; or (iii) In the case of an applicant that is an Entitlement grantee subject to the exception in § 570.201(e)(2), an amount equal to the amount of the Entitlement grant funds received for the same origin year that may be used for public service activities, less the amount of the Entitlement grant funds which will be used for other public servic… | |||
| 24:24:3.1.1.3.3.5.1.9 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | E | Subpart E—Special Purpose Grants | § 570.411 Joint Community Development Program. | HUD | [60 FR 15837, Mar. 27, 1995] | (a) General. Grants under this section will be awarded to institutions of higher education or to States and local governments applying jointly with institutions of higher education. Institutions of higher education must demonstrate the capacity to carry out activities under title I of the Housing and Community Development Act of 1974. For ease of reference, this program may be called the Joint CD Program. (b) Definitions. Demonstrated capacity to carry out eligible activities under title I means recent satisfactory activity by the institution of higher education's staff designated to work on the program, including subcontractors and consultants firmly committed to work on the proposed activities, in title I programs or similar programs without the need for oversight by a State or unit of general local government. Institution of higher education means a college or university granting 4-year degrees and accredited by a national or regional accrediting agency recognized by the U.S. Department of Education. (c) Eligible applicants. Institutions of higher education or States and units of general local government jointly with institutions of higher education may apply. Institutions of higher education with demonstrated capacity to carry out eligible activities under title I may apply on their own, without the joint participation of a State or unit of general local government. States or unit of general local governments must file jointly with an institution of higher education. For these approved joint applications, the grant will be made to the State or unit of general local government and the institution of higher education jointly. If an eligible applicant is an institution of higher education, it will not be funded more than once for the same kinds of activities. These grantees may not receive funding under a subsequent NOFA if it has the same program objectives as the one under which the grantee previously received funding. However, a State or unit of general local government is eligible to apply if it f… | |||
| 24:24:3.1.1.3.3.6.1.1 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | F | Subpart F—Small Cities, Non-Entitlement CDBG Grants in Hawaii and Insular Areas Programs | § 570.420 General. | HUD | [69 FR 32779, June 10, 2004, as amended at 72 FR 46370, Aug. 17, 2007] | (a) Administration of Non-entitlement CDBG funds in New York by HUD or Insular Areas —(1) Small cities. The Act permits each state to elect to administer all aspects of the CDBG program annual fund allocation for the non-entitlement areas within its jurisdiction. All states except Hawaii have elected to administer the CDBG program for non-entitlement areas within their jurisdiction. This section is applicable only to active HUD-administered small cities grants in New York. The requirements for the non-entitlement CDBG grants in Hawaii are set forth in § 570.429 of this subpart. States that elected to administer the program after the close of Fiscal Year 1984 cannot return administration of the program to HUD. A decision by a state to discontinue administration of the program would result in the loss of CDBG funds for non-entitlement areas in that state and the reallocation of those funds to all states in the succeeding fiscal year. (2) Insular areas. Title V of Public Law 108-186 amended the Act to move the insular areas funding authorization from sections 107(a) and (b) to section 106(a). This revision identified a specific portion of the CDBG allocation for insular areas that is separate from the distribution for special purpose grants, as well as from the Entitlement and State formula distribution. The insular areas of Guam, the Northern Mariana Islands, the Virgin Islands, and American Samoa are permitted to administer all aspects of their Community Development Block Grant (CDBG) program under section 106 of the Act in accordance with their final statement as further described at § 570.440. (b) Scope and applicability. (1) This subpart describes the policies and procedures of the Small Cities program that apply to non-entitlement areas in states where HUD administers the CDBG program. HUD currently administers the Small Cities program in only two states—New York (for grants prior to FY 2000) and Hawaii (for non-entitlement CDBG grants in Hawaii). The Small Cities portion of this subpart addresses the… | |||
| 24:24:3.1.1.3.3.6.1.10 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | F | Subpart F—Small Cities, Non-Entitlement CDBG Grants in Hawaii and Insular Areas Programs | § 570.441 Citizen participation—insular areas. | HUD | [69 FR 32780, June 10, 2004, as amended at 80 FR 42366, July 16, 2015; 85 FR 47910, Aug. 7, 2020] | (a) General. An insular area jurisdiction submitting an abbreviated consolidated plan under 24 CFR 91.235 shall comply with the citizen participation requirements described in this section. An insular area jurisdiction submitting a complete consolidated plan in accordance with 24 CFR 91.200 through 91.230 shall follow the citizen participation requirements of § 91.100 and § 91.105, except for § 91.100(a)(4). For funding under section 106 of the Act, these requirements are applicable to all aspects of the Insular Areas program, including the preparation of the proposed statement and final statements as described in § 570.440. The requirements for citizen participation do not restrict the responsibility or authority of the jurisdiction for the development and execution of its community development program. (b) Citizen participation plan. The insular area jurisdiction must develop and follow a detailed citizen participation plan and must make the plan public. The plan must be completed and available before the statement for assistance is submitted to HUD, and the jurisdiction must certify that it is following the plan. The plan must set forth the jurisdiction's policies and procedures for: (1) Giving citizens timely notice of local meetings and reasonable and timely access to local meetings consistent with accessibility and reasonable accommodation requirements in accordance with section 504 of the Rehabilitation Act of 1973 and the regulations at 24 CFR part 8, and the Americans with Disabilities Act and the regulations at 28 CFR parts 35 and 36, as applicable, as well as information and records relating to the grantee's proposed and actual use of CDBG funds including, but not limited to: (i) The amount of CDBG funds expected to be made available for the coming year, including the grant and anticipated program income; (ii) The range of activities that may be undertaken with those funds; (iii) The estimated amount of those funds proposed to be used for activities that will benefit low- and moderate-income p… | |||
| 24:24:3.1.1.3.3.6.1.11 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | F | Subpart F—Small Cities, Non-Entitlement CDBG Grants in Hawaii and Insular Areas Programs | § 570.442 Reallocations-Insular Areas. | HUD | [72 FR 12536, Mar. 15, 2007] | (a) Any Insular Area funds that become available as a result of reductions under subpart O of this part, shall be reallocated in the same or future fiscal year to any remaining eligible Insular Area grantees pro rata according to population. (b) Any Insular Area grant funds for a fiscal year reserved for an applicant that chooses not to submit a final statement in accordance with § 570.440 to receive such funds, shall be reallocated in the same or future fiscal year to any remaining eligible Insular Area grantees pro rata according to population. (c) No amounts shall be reallocated under this section in any fiscal year to any applicant whose grant amount in such fiscal year was reduced under subpart O of this part or who did not submit a final statement in accordance with § 570.440 for that fiscal year. (d) Insular Area grantees receiving additional funds under this section will be evaluated for timeliness under § 570.902 based upon the original grant amount plus the additional funds received. Accordingly, references in § 570.902 to an Insular Area's grant amount for its current program year include such additional funds, and references to unexpended or undisbursed funds include such additional funds. | |||
| 24:24:3.1.1.3.3.6.1.2 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | F | Subpart F—Small Cities, Non-Entitlement CDBG Grants in Hawaii and Insular Areas Programs | § 570.421 New York Small Cities Program design. | HUD | (a) Selection system —(1) Competitive applications. Each competitive application will be rated and scored against at least the following factors: (i) Need-absolute number of persons in poverty as further explained in the NOFA; (ii) Need-percent of persons in poverty as further explained in the NOFA; (iii) Program Impact; and (iv) Fair Housing and Equal Opportunity, which may include the applicant's Section 3 plan and implementation efforts with respect to actions to affirmatively further fair housing. The NOFA described in paragraph (b) of this section will contain a more detailed description of these factors, and the relative weight that each factor will be given. (2) In addition HUD reserves the right to establish minimal thresholds for selection factors and otherwise select grants in accordance with § 570.425 and the applicable NOFA. (3) Imminent threats to public health and safety. The criteria for these grants are described in § 570.424. (4) Repayment of Section 108 loans. The criteria for these grants are described in § 570.432. (5) Economic development grants. HUD intends to use the Section 108 loan guarantee program to the maximum extent feasible to fund economic development projects in the nonentitlement areas of New York. In the event that there are not enough Section 108 loan guarantee funds available to fund viable economic development projects, if a project needs a grant in addition to a loan guarantee to make it viable, or if the project does not meet the requirements of the Section 108 program but is eligible for a grant under this subpart, HUD may fund Economic Development applications as they are determined to be fundable in a specific amount by HUD up to the sum set aside for economic development projects in a notice of funding availability, notwithstanding paragraph (g) of this section. HUD also has the option in a NOFA of funding economic development activities on a competitive basis, as a competitive application as described in paragraph (a)(1) of this section. In order for a… | ||||
| 24:24:3.1.1.3.3.6.1.3 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | F | Subpart F—Small Cities, Non-Entitlement CDBG Grants in Hawaii and Insular Areas Programs | §§ 570.422-425 [Reserved] | HUD | |||||
| 24:24:3.1.1.3.3.6.1.4 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | F | Subpart F—Small Cities, Non-Entitlement CDBG Grants in Hawaii and Insular Areas Programs | § 570.426 Program income. | HUD | (a) The provisions of § 570.504(b) apply to all program income generated by a specific grant and received prior to grant closeout. (b) If the unit of general local government has another ongoing CDBG grant at the time of closeout, the program income will be considered to be program income of the ongoing grant. The grantee can choose which grant to credit the program income to if it has multiple open CDBG grants. (c) If the unit of general local government has no open ongoing CDBG grant at the time of closeout, program income of the unit of general local government or its subrecipients which amounts to less than $25,000 per year will not be considered to be program income unless needed to repay a Section 108 guaranteed loan. When more than $25,000 of program income is generated from one or more closed out grants in a year after closeout, the entire amount of the program income is subject to the requirements of this part. This will be a subject of the closeout agreement described in § 570.509(c). | ||||
| 24:24:3.1.1.3.3.6.1.5 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | F | Subpart F—Small Cities, Non-Entitlement CDBG Grants in Hawaii and Insular Areas Programs | § 570.427 Program amendments. | HUD | [62 FR 62914, Nov. 25, 1997, as amended at 72 FR 46370, Aug. 17, 2007] | (a) HUD approval of certain program amendments. Grantees shall request prior HUD approval for all program amendments involving new activities or alteration of existing activities that will significantly change the scope, location, or objectives of the approved activities or beneficiaries. Approval is subject to the amended activities meeting the requirements of this part and being able to be completed promptly. (b) Documentation of program amendments. Any program amendments that do not require HUD approval must be fully documented in the grantee's records. (c) Citizen participation requirements. Whenever an amendment requires HUD approval, the requirements for citizen participation in § 570.431 must be met. | |||
| 24:24:3.1.1.3.3.6.1.6 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | F | Subpart F—Small Cities, Non-Entitlement CDBG Grants in Hawaii and Insular Areas Programs | § 570.428 [Reserved] | HUD | |||||
| 24:24:3.1.1.3.3.6.1.7 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | F | Subpart F—Small Cities, Non-Entitlement CDBG Grants in Hawaii and Insular Areas Programs | § 570.429 Hawaii general and grant requirements. | HUD | [62 FR 62914, Nov. 25, 1997, as amended at 72 FR 46371, Aug. 17, 2007] | (a) General. This section applies to non-entitlement CDBG grants in Hawaii. The non-entitlement counties in the State of Hawaii will be treated as entitlement grantees except for the calculation of allocations, and the source of their funding, which will be from section 106(d) of the Act. (b) Scope and applicability. Except as modified or limited under the provisions thereof or this subpart, the policies and procedures outlined in subparts A, C, D, J, K, and O of this part apply to non-entitlement CDBG grants in Hawaii. (c) Grant amounts. (1) For each eligible unit of general local government, a formula grant amount will be determined which bears the same ratio to the total amount available for the nonentitlement area of the State as the weighted average of the ratios between: (i) The population of that eligible unit of general local government and the population of all eligible units of general local government in the nonentitlement areas of the State; (ii) The extent of poverty in that eligible unit of general local government and the extent of poverty in all the eligible units of general local government in the nonentitlement areas of the State; and (iii) The extent of housing overcrowding in that eligible unit of general local government and the extent of housing overcrowding in all the eligible units of general local government in the nonentitlement areas of the State. (2) In determining the average of the ratios under this paragraph (c), the ratio involving the extent of poverty shall be counted twice and each of the other ratios shall be counted once. (0.25 + 0.50 + 0.25 = 1.00). (d) Reallocation. (1) Any amounts that become available as a result of any reductions under subpart O of this part shall be reallocated in the same or future fiscal year to any remaining eligible applicants on a pro rata basis. (2) Any formula grant amounts reserved for an applicant that chooses not to submit an application shall be reallocated to any remaining eligible applicants on a pro rata basis. (3) No amoun… | |||
| 24:24:3.1.1.3.3.6.1.8 | 24 | Housing and Urban Development | V | C | 570 | PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS | F | Subpart F—Small Cities, Non-Entitlement CDBG Grants in Hawaii and Insular Areas Programs | § 570.431 Citizen participation. | HUD | (a) General. An applicant that is located in a nonentitlement area of a State that has not elected to distribute funds shall comply with the citizen participation requirements described in this section, including requirements for the preparation of the proposed application and the final application. The requirements for citizen participation do not restrict the responsibility or authority of the applicant for the development and execution of its community development program. (b) Citizen participation plan. The applicant must develop and follow a detailed citizen participation plan and must make the plan public. The plan must be completed and available before the application for assistance is submitted to HUD, and the applicant must certify that it is following the plan. The plan must set forth the applicant's policies and procedures for: (1) Giving citizens timely notice of local meetings and reasonable and timely access to local meetings, information, and records relating to the grantee's proposed and actual use of CDBG funds including, but not limited to: (i) The amount of CDBG funds expected to be made available for the coming year, including the grant and anticipated program income; (ii) The range of activities that may be undertaken with those funds; (iii) The estimated amount of those funds proposed to be used for activities that will benefit low- and moderate-income persons; (iv) The proposed CDBG activities likely to result in displacement and the applicant's plans, consistent with the policies developed under § 570.606(b), for minimizing displacement of persons as a result of its proposed activities; and (v) The types and levels of assistance the applicant plans to make available (or to require others to make available) to persons displaced by CDBG-funded activities, even if the applicant expects no displacement to occur; (2) Providing technical assistance to groups representative of persons of low- and moderate-income that request assistance in developing proposals. The level and type of as… |
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