Such financial settlements may be approved by the Secretary pursuant to a financing plan revised on the basis of the noncash local grants-in-aid actually provided. Subiect to the requirements of paragraph (b) of this section, any surplus grant funds remaining after settlement will be made available to the unit of general local government or use in accordance with the provisions of this Part.

The provisions for financial settlement under this section are authorized for any project with respect to the settlement of which one or more of the following conditions apply.

(1) All approved project activities (other than the sale of land) for which project funds are available, or noncash local grants-in-aid which would otherwise have been required, will not have been substantially completed prior to the date of the financial settlement;

(2) All available project funds have been exhausted prior to completion of the approved project activities;

(3) The approved project activities have been completed except for the sale of all project land;

(4) The approved project activities have been completed and the settlement will result in a surplus grant.

(b) The release of surplus grant funds may be subject to completion of an audit and satisfaction of any audit exceptions with respect to the project, or any other projects located in the unit of general local government; provided, that the surplus grant funds or other funds available under the provisions of this Part shall not be used for payment of ineligible project costs. The Secretary may require the application of surplus grant funds to any of the following purposes as a condition to financial settlement:

(1) Activities eligible for funding under § 570.801b) in any other projects located in the unit of general local government for which the Secretary determines insufficient project funds may be available, consisting of (i) the repayment of temporary loans; (ii) the completion of approved project activities which are deemed essential to protect the Federal interest in housing for which Federal subsidies have been committed or loans or mort

gage insurance provided; (iii) the completion of approved project activities which are deemed essential to assure compliance with any applicable low and moderate income housing requirements under sections 105(f) and 105(h) of Title I of the Housing Act of 1949, as amended; and (iv) the payment of any obligations under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970.

(2) With respect to the settlement of projects authorized under paragraph (a)(1), the completion of any approved project activities or noncash local grants-in-aid which are deemed essential to meet the requirements of paragraph (e) (3) and (4) and are eligible for funding under § 570.801(b).

(c) The financial settlement of a project under this section shall be subject to the environmental review requirements of 24 CFR § 58.20.

(d) Prior to financial settlement, the local public agency carrying out the project, and the unit of general local government in which the project is located, must execute a closeout agreement pursuant to the requirements of § 570.804(b) (7).

(e) Approval of requests for financial settlement under paragraph (a) (1) of this section shall be subject to the following additional requirements with respect to: any incomplete approved project activities which would otherwise be continued or completed with available project funds; any noncash local grants-in-aid which would otherwise be provided under the HUD contract for the project; and the use of any surplus grant funds remaining after the settlement:

(1) The proposed action must not be plainly inappropriate to meeting the needs and objectives stated in the unit of general local government's Community Development Plan;

(2) The proposed action must be subjected to the citizen participation requirements under this Part, and must be reviewed by the Urban Renewal Project Area Committee where one exists;

(3) Any proposed changes in the scope of renewal treatment must not adversely affect housing for which Federal subsidies have been commit

ted or loans or mortgage insurance provided;

(4) Any proposed change in the scope of renewal treatment must not be inconsistent with the satisfaction of any remaining low and moderate income housing requirements under Sections 105(f) and 105(h) of Title I of the Housing Act of 1949; as amended;

(5) I ne maintenance of any occupied residential project property owned by the local public agency at the time of the settlement, including such property thereafter transferred for use or disposition to the unit of general local government, with respect to which relocation activities have not been completed, must be consistent with property management standards applicable to the local public agency under urban renewal requirements.

(6) The unit of general local government shall be responsible to assess the effect of the proposed action on any third party obligations under State and local law.

§ 570.804 Application for approval of financial settlement.

Financial settlement will be approved if the Secretary finds that all applicable requirements of § 570.803 have been met after completion of the following actions:

(a) Preliminary request. A preliminary request shall be submitted in order to determine what actions will be necessary to comply with the requirements of § 570.803. The request shall include a report on the status of project activities, an estimate of the amount of surplus grant funds which may remain after financial settlement, and information regarding the financial status of any other projects in the locality of the unit of general local government. The Secretary will review the request and will advise the applicant whether any approved project activities must be completed or noncash local grants-in-aid provided in order to comply with requirements of § 570.803(e) (3) and (4) if the settlement is for a project authorized under § 570.803(a)(1), and whether any surplus grant funds will be required to be applied under the provisions of § 570.803(b). The applicant may then

proceed to prepare a formal application, including performance of any environmental reviews required pursuant to 24 CFR Part 58.20.

(b) Application for financial settlement and release of surplus funds. The application for financial settlement and release of any surplus funds may be submitted either as a program year amendment described in § 570.312 or in conjunction with the unit of general local government's application for funds under this Part, submitted in accordance with § 570.300(b) or (c), Provided, however, That the review and approval requirements of § 570.311(c) shall not apply. A unit of general local government which receives no entitlement amount under Subpart B shall submit an original application in accordance with the requirements of § 570.300(c). The application shall include:

(1) A written request for financial settlement submitted by the local public agency carrying out the project and concurred in by the governing body of the unit of general local government in which the project is located.

(2) A description of the steps the applicant has taken to comply with the applicable requirements of § 570.803 and any conditions required by HUD pursuant to review of the preliminary request.

(3) A statement indicating the extent to which incomplete activities are proposed to be continued or completed after financial settlement of a project under § 570.803(a)(1).

(4) A Certificate of Completion and Gross and Net Project Costs for the project, with appropriate modifications, reflecting the authority and nature of the settlement under the applicable provisions of § 570.803(a), and which includes the cost of any remaining incurred, disputed, contingent and unliquidated relocation or other claims and obligations.

(5) A certification that environmental review required of the applicant pursuant to 24 CFR 58.20 has been completed, and that the citizen participation requirements under § 570.803(d)(2) have been complied with.

(6) A Community Development Program and Budget which identifies the activities to be carried out with any surplus funds or other funds included in the letter of credit for the purpose of liquidating costs identified pursuant to § 570.804(b)(4).

(7) A closeout agreement for concurrence by the Secretary, executed by the local public agency carrying out the project and by the unit of general local government in which the project is located, under the provisions of which:

(i) All remaining project property owned by the local public agency shall be identified and the proceeds from the sale or lease of such property after financial settlement shall be treated as program income of the unit of general local government under the provisions of § 570.506; provided, however, that such proceeds may be applied to the reimbursement of any funds of the unit of general local government, other than funds made available under this Part or cash local grants-inaid required on the basis of incurred net project costs, which were used for the payment of temporary loans for the project. Any remaining project land may be retained for disposition by the local public agency, or transferred to the unit of general local government for use or disposition subject to the covenants specified in § 570.801(c) (1) (i), (ii), (iii) and (iv). In the disposition of such land, the provisions of section 110(c)(4) of Title I of the Housing Act of 1949, as amended, regarding fair use value shall not apply.

(ii) All low- and moderate-income housing required to be provided due to the demolition or removal of residential structures with project funds, purLuant to Section 105(h) of Title I of the Housing Act of 1949, as amended, shall be set forth, and the units actually provided shall be identified as to general location and total number. To the extent such housing has not been provided, it shall be incorporated and identified in the unit of general local government's Housing Assistance Plan, described in § 570.306.

(iii) All low- and moderate-income housing requirements with respect to

residential

which a predominantly project was obligated, pursuant to Section 105(f) of the Title I of the Housing Act of 1949, as amended, shall be set forth, and the units actually provided shall be identified as to general location and total number. To the extent such housing has not been provided, it shall be incorporated and identified in the unit of general local government's Housing Assistance Plan. Any change in such remaining housing obligations, or in previously approved land uses affecting the remaining housing obligations, shall require the approval of the Secretary as long as the area remains predominantly residential under the provisions of the applicable urban renewal plan.

(iv) Any costs or obligations incurred in connection with the project with respect to claims which are disputed, contingent, unliquidated or unidentified, and for the payment of which insufficient project funds have been reserved under the financial settlement, shall be borne by the unit of general local government. Such additional expenses may be paid from funds made available under this Part.

(v) Provision is made for any special conditions regarding the obligations of the local public agency and the unit of general local government with respect to the requirements of § 570.803.

(vi) The obligations under the closeout agreement are made specifically subject to the Program Management requirements of Subpart O.

(c) Staged use of surplus funds. If the unit of general local government wishes to stage the use of surplus urban renewal funds over a period of years, it may request the Secretary to make the funds available on a schedule specified by the unit of general local government. In this event, the community development plan summary included in the application or amendment shall specify the total usage of funds, and the annual Community Development Program and budget submissions shall include only the surplus funds proposed to be used in the program year.

[41 FR 20524, May 18, 1976, as amended at 43 FR 8473, Mar. 1, 1978]

Subpart O-Program Management

the

§ 570.900 Performance standards. Performance standards are standards against which the Secretary will determine whether the applicant or recipient has complied with the specific requirements of this Part. Performance standards are operational program requirements complementing the simplified application review requirements of this part which are designed to provide financial assistance, with maximum certainty and minimum delay, upon which communities can rely in their planning. The Secretary's review of performance against the standards set forth in this section will serve as the basic assurance that grants are being used properly to achieve the objectives of this Part. The Secretary may, either during or after performance, review, monitor, and evaluate the recipient's community development program. The Secretary will use the following standards in determining compliance with this Part of the applicant's recipient's performance, including determinations

under § 570.911.

(a) Relocation. With respect to displacement subject to § 570.602(a), the recipient has established operating procedures under which:

(1) All displaced persons were provided sufficient information in an assimilable form so that they fully understood the reason for their displacement and the relocation rights, payments, and assistance to which they were entitled;

(2) All displaced persons received formal notice establishing their eligibility for relocation payments;

(3) All displaced families and individuals were provided a reasonable number of referrals to comparable decent, safe, and sanitary housing and were provided assistance in obtaining such housing;

(4) All displaced businesses, organizations, and farm operations were offered assistance in obtaining replacement locations;

(5) All displaced persons were provided appropriate advisory services in order to minimize hardships to such persons in adjusting to relocation;

(6) All displaced persons received all the relocation payments to which they were entitled in a prompt manner;

(7) Displacement and relocation activities assisted under this Part were coordinated with those of other governmental agencies in the community carrying out programs resulting in concurrent displacement; and

(8) A locally developed administrative review process provides full opportunity for displaced persons to obtain reconsideration of determinations as to their eligibility for, or the amount of, a relocation payment made and consideration of complaints regarding the adequacy of replacement housing. The process assures that complaints of displaced persons are handled in a timely and responsive manner, that conflicts are resolved fairly and expeditiously, that the recipient will review determinations upon request, and that an appeal may be made to the HUD Area Office when necessary.

(b) Acquisition. Local acquisition policy complies with Title III of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970.

(c) Equal opportunity. (1) The recipient will be required to document the actions undertaken to assure that no person, on the ground of race, color, national origin, religion, or sex, has been excluded from participation in, denied the benefits of, or otherwise subjected to discrimination under any activity funded under this Part. Such documentation should indicate:

(i) Any methods of administration designed to assure that no person, on the ground of race, color, national origin or sex, has been excluded from participation in, denied the benefits of, or otherwise subjected to discrimination under any activity funded under this Part.

(ii) Criteria used in selecting sites for public facilities designed to further the accomplishment of the objectives of the programs or activities conducted under this Part with respect to any identifiable segment of the total group of lower-income persons in the community.

(iii) Any actions undertaken to overcome the effects of conditions which

may have resulted in limited participation, in the past, in programs or activities of the type funded under this Part, by any identifiable segment of the total group of lower-income persons in the community.

(iv) Any actions undertaken to promote equal employment opportunities for any identifiable segment of the total group of lower-income persons in the community.

(2) The recipient will be required to document the actions undertaken to further fair housing. Such documentation should indicate:

(i) Any actions undertaken to encourage the development and enforcement of fair housing laws.

(ii) Any actions taken to prevent discrimination in housing and related facilities developed and operated with assistance under this Part, and in the lending practices, with respect to residential property and related facilities, of lending institutions.

(iii) Any action taken to assure that land use and development programs funded under this Part provide greater housing opportunities throughout the planning area for any identifiable segment of the total group of lowerincome persons in the community.

(iv) Any site selection policies adopted to promote equal opportunity in housing.

[40 FR 24693, June 9, 1975, as amended at 43 FR 8473, Mar. 1, 1978)

§ 570.905 Reports to be submitted by recipient.

(a) General. Recipients will submit such reports, including litigation reports as the Secretary may require.

(b) Financial management. Each recipient shall submit such financial reports as are deemed necessary by the Secretary, consistent with the requirements of OMB Circular No. A-102.

(c) Relocation and acquisition reports. Recipients will report at least annually on a form prescribed by the Secretary on numbers of persons and businesses relocated, numbers remaining in the relocation workload, and a general breakdown of relocation costs and on real property acquired.

(d) Equal opportunity reports. Recipients shall submit such reports as

may be necessary, pursuant to the rules and regulations under Title VI, Civil Rights Act of 1964; Title VIII, Civil Rights Act of 1968; Section 3 of the Housing and Urban Development Act of 1968; Section 109 of the Act, Executive Order 11246 as amended, and Executive Order 11063, or any reports as may be further prescribed by the Secretary.

[40 FR 24693, June 9, 1975, as amended at 43 FR 8474, Mar. 1, 1978]

§ 570.906 Performance report.

(a) Submission requirements. (1) Each entitlement recipient shall submit a performance report to HUD no later than the end of the eighth month of each program year. The report shall cover a twelve month period ending with the sixth month of the program year.

(2) A copy of the performance report shall be submitted to the appropriate A-95 State and areawide clearinghouses for informational purposes at the time it is submitted to HUD.

(3) The recipient shall make the report available to citizens at no charge and shall make public notice of the availability of the report at the time it is submitted.

(4) The requirements for submission of performance reports by discretionary grant recipients are set forth in § 570.400(h).

(b) Content of report. The report shall include the following components in a format to be prescribed:

(1) Progress on planned activities. The report shall describe progress on each project and activity that was to be carried out under approved applications since the inception of the applicant's block grant program, excluding 'projects or activities reported as completed in a previous report. The report shall list each project and activity by the program year in which it was approved and provide cumulative informatin on the following:

(i) Amount of funds obligated and expended;

(ii) Environmental status including the date of HUD release of funds;

(iii) The administrative unit having lead responsibility;