with the Court of Appeals which has jurisdiction.

(2) Any recipient which receives the final agency decision of the termination, reduction or limitation of payments under this title may, within sixty days after receiving such notice, file with the United State Court of Appeals for the circuit in which such State is located, or in the United States Court of Appeals for the District of Columbia, a petition for review of the Secretary's action. The petitioner shall forthwith transmit copies of the petition to the Secretary and the Attorney General of the United States, who, shall represent the Secretary in the litigation.

(3) The Secretary shall file in the court the record of the proceeding on which she based her action, as provided in Section 2112 of Title 28, United States Code. No objection to the action of the Secretary shall be considered by the court unless such objection has been urged before the Secretary.

(4) The court shall have jurisdiction to affirm or modify the action of the Secretary or to set it aside in whole or in part. The findings of fact by the Secretary, if supported by substantial evidence on the record considered as a whole, shall be conclusive. The court may order additional evidence to be taken by the Secretary, and to be made part of the record. The Secretary may modify her findings of fact, or make new findings, by reason of the new evidence so taken and filed with the court, and she shall also file such modified or new findings, which findings with respect to questions of fact shall be conclusive if supported by substantial evidence on the record considered as a whole, and shall also file her recommendations, if any, for the modification or setting aside of her original action.

(5) Upon the filing of the record with the court, the jurisdiction of the court shall be exclusive and its judgment shall be final, except that such judgment shall be subject to review by the Supreme Court of the United States upon writ of certiorari or certification as provided in Section 1254 of Title 28, United States Code.

the city on or prior to December 31, 1974, is June 30, 1975.

(b) Reprogramming. Prior to June 30, 1975, grant funds may be reprogrammed into both previously approved and new projects and activities, as well as into program administration. Thereafter, model cities grant funds may only be reprogrammed into previously approved projects and activities and into program administration.

(c) Budget revision requirements. In revising budgets prior to June 30, 1975, the city shall adhere to existing budget requirements. After June 30, 1975, the budget revision requirements listed below shall apply:

(1) HUD approval of budget revisions will be required only for substantial changes in the program and for changes in model neighborhood

boundaries which add or subtract ten percent of the model neighborhood population. Substantial changes, whether in key projects or administrative arrangements, are those which represent a major departure from the direction of the program as previously approved.

(2) The city shall report to HUD an increase of a program category budget of more than the greater of 5 percent of the model cities grant funded portion of its budget or $25,000 in model cities grant funds.

(3) Any increase in program administration must take into consideration that the model cities grant shall not exceed 80 percent of the eligible costs for program administration.

(4) No budget revisions may be made which will cause the total amount of the model cities grant to be exceeded.

§ 580.3 Deadline for city to obligate grant funds.

Model cities grant funds must be obligated under contracts between the city and third parties (i.e. operating agencies and contractors) or under formal cooperation agreements between the City Demonstration Agency and other city departments on or prior to September 30, 1975, except for program administration. Any grant funds not so obligated by that date will be recaptured by HUD. Any grant funds

which become de-obligated after the obligation deadline date, may be reprogrammed into previously approved projects and activities or into program administration.

§ 580.4 Deadline for completion of model cities grant assistance to CCDP.

HUD, in consultation with each city, shall establish a grant assistance completion deadline date by which all model cities grant fund assistance to the comprehensive city demonstration program shall end subject to exceptions set forth in § 580.5. Any costs incurred with respect to the comprehensive city demonstration program after the grant assistance completion deadline shall be considered ineligible for funding under the Grant Agreement, with the exception of costs incurred for activities listed in § 580.5 below.

§ 580.5 Exceptions to grant assistance completion deadline.

Costs may continue to be incurred after the grant assistance completion deadline date in the following areas:

(a) Program administration. The city must continue to provide an adequate number of knowledgeable staff to carry out its responsibilities under the model cities grant agreement until all HUD audit findings with respect to the comprehensive city demonstration program have been cleared by HUD. The cost of providing such staff may be paid either with model cities grant funds on an 80-20 percent basis or with other funds at the option of the city. If the city elects to continue to pay for such staff with model cities grant funds, such funds should be budgeted for program administration, in order that grant funds will be available to pay staff expenses until all HUD audit findings have been resolved.

(b) Capital projects and relocation activities. Grant funds for completion of capital projects and relocation activities shall be obligated under contracts between the city and third parties or under formal cooperation agreements between the City Demonstration Agency and other city departments on or prior to September 30, 1975 (see § 580.3). However, such grant

funds may be budgeted for expenditure after the grant assistance completion deadline, subject to a written agreement between HUD and the city. (c) Economic and housing development corporations. Grant funds for economic and housing development corporations shall be obligated under contracts between the city and the development corporations on or before September 30, 1975 (see § 580.3). However, such grant funds may be budgeted for expenditure afte the grant assistance completion deadline, subject to a written agreement between HUD and the city.

(d) Special Circumstances. In order to facilitate the establishment of a grant assistance completion deadline when there are projects and activities, not subject to paragraphs (a), (b), or (c) of this section, which involve longer term contractual obligations than other projects and activities, HUD Regional Administrators may allow additional exceptions to the grant assistance completion deadline. Grant funds for projects and activities excepted from the deadline by HUD Regional Administrators shall be obligated under contracts between the city and third parties or under formal cooperation agreements between the City Demonstration Agency and other city departments on or prior to September 30, 1975 (see § 580.3). However, such grant funds may be budgeted for expenditure after the grant assistance completion deadline, subject to a written agreement between HUD and the city.

Subpart B-Policies for Program Closeout

§ 580.6 Final HUD audit of CCDP.

The final HUD audit of the comprehensive city demonstration program shall be conducted as early as possible after the grant assistance completion deadline. HUD, in consultation with the city, shall determine the specific date on which the audit will begin. Capital projects, relocation activities, development corporations, and other excepted projects and activities for which funds are budgeted for expenditure after the grant assistance comple

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the grant assistance completion deadline has been reached.

Subpart C-Disposition of Property Purchased With Model Cities Funds

3580.12 Disposition of personal property.

All office equipment, supplies, materials, and other personal property, purchased in whole or in part with grant funds and used for the administration of the program or in the administration of a project or activity operated by the city, shall be the sole property of the city. Final disposition of personal property, as described above, in the hands of a non-city operating agency shall be a contract matter between the city and the operating agency.

§ 580.13 Assets held by economic and housing development corporations. Investment assets derived from the use of grant funds, such as loan notes,

collateral in a guarantee fund and real property, are the property of the city or the development corporation, depending upon the contract between them. When such investment assets return to liquid form upon the completion of their specific investment purpose, the proceeds will belong to the city or the development corporation, depending upon the contract between them. Income derived from investment assets shall also belong to the city or the development corporation, depending upon the contract between them. If the ownership of investment assets and the income derived therefrom is not otherwise specified by contract or law, the city shall be the sole owner of such assets and income.

§ 580.14 Disposition of real property.

Following HUD approval of the certificate of program completion, HUD concurrence in the transfer of title to real property shall no longer be required.