law judge shall serve also a copy of the initial decision by certified mail to the chief executive officer of the respor.dent or to its attorney of record.

(k) What constitutes record. The ranscript of testimony, pleadings and exhibits, all papers and requests filed n the proceeding together with all indings, decisions and orders, shall onstitute the exclusive record in the hatter.

(1) Procedure on review of decision fadministrative law judge-(1) ppeal to the Secretary. Within 30 ays froim the date of the initial decion and order of the administrative w judge, the respondent may appeal the Secretary and file his excepons to the initial decision and his asons therefor. The respondent shall ansmit a copy of his appeal and reans therefor to the HUD counsel who ay, within 30 days from receipt of e respondent's appeal, file a reply ief in opposition to the appeal. A by of the reply brief, if one if filed, all be transmitted to the respondent its counsel of record. Upon the ng of an appeal and a reply brief, if y, the Secretary shall make the al agency decision on the record of administrative law judge submitto her.

2) Absence of appeal. In the absence exceptions by the respondent hin the time set forth in paragraph 1) of this section or a review initiatby HUD counsel within 45 days er the initial decision, such initial ision of the administrative law ge shall constitute the final deciof the Department.

1) Decision of the Secretary. On eal from or review of the initial deon of the administrative law judge, Secretary will make the final cy decision. In making her decitrhe Secretary will review the rd or such portions thereof as may ted by the parties to permit limitof the issues. The Secretary may m, modify, or revoke the findings initial decision of the administralaw judge. A copy of the Secres decision shall be transmitted imately to the chief executive offif the respondent or its counsel of

d.

(n) Publicity of proceedings—(1) I general. A proceeding conducted unde this subpart shall be open to th public and to elements of the new. media provided that in the judgmen of the administrative law judge, th presence of the media does not detrac from the decorum and dignity of the proceeding.

(2) Availability or record. The record established in any proceeding conduct ed under this subpart shall be made available for inspection by the public as provided for and in accordance with regulations of the Department of HUD pursuant to 24 CFR Part 15.

(3) Decisions of the administrative law judge. The statement of findings and the initial decision of the administrative law judge in any proceedings, whether or not on appeal or review, shall be indexed and maintained by the Secretary and made available for inspection by the public at the public documents room of the Department. If practicable, the statement of findings and the decisions of the administrative law judge shall be published periodically by the Department and offered for sale through the Superintendent of Documents.

(4) Based on written advice from the Department of Justice that publicity of the proceedings or public release of the record pursuant to paragraph (n) (1), (2), and (3), of this section would adversey affect criminal prosecution, the Secretary may deem the applicability of paragraph (n) (1), (2), and (3) stayed.

(0) Judicial review. (1) Actions tak-h en under administrative proceedings pursuant to this subpart shall be subject to judicial review pursuant to Section 111(c) of the Act. If a respondent desires to appeal a decision of the administrative law judge which has become final, or a final order of the Secretary for review of appeal, to the U.S. Court of Appeals, as provided by law, the Secretary, upon prior notification of the filing of the petition for review, shall have prepared in triplicate, a complete transcript of the record of the proceedings, and shall certify to the correctness of the record. The original certificate together with the original record shall then be filed

Cou

Subpart C--Disposition of Property Purchased
With Model Cities Funds

580.12 Disposition of personal property.
580.13 Assets held by economic and hous-
ing development corporations.
580.14 Disposition of real property.

AUTHORITY: Sec. 7(d) of the Department
of Housing and Urban Development Act (42
U.S.C. 3535(d)).

have jurisdiction
the action of the
aside in whole or
s of fact by the
ted by substantial
rd considered as a
clusive. The court
al evidence to be
retary, and to be
record. The Secre-
er findings of fact,
gs, by reason of the
aken and filed with
e shall also file such
findings, which find-
to questions of fact
ive if supported by
ence on the record
whole, and shall also
endations, if any, for
n or setting aside of

on.

SOURCE: 40 FR 12073, Mar. 17, 1975, unless otherwise noted.

Subpart A-General Provisions

§ 580.1 Applicability.

The purpose of this part is to prescribe policies to be followed to complete the program of Federal categorical grant assistance to comprehensive city demonstration programs provided under Title I of the Demonstration Cities and Metropolitan Development Act of 1966, Pub. L. 89-754.

e filing of the record
the jurisdiction of the
exclusive and its judg-
final, except that such
I be subject to review by
Court of the United
rit of certiorari or certi-
ovided in Section 1254 of
ed States Code.

§ 580.2 Deadline for approval of new projects and activities.

(a) General. The deadline for HUD approval of new projects and activities, to be carried out with funds committed by tender letter from HUD to

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 administracion. Thereafter, model cities grant Funds may only be reprogrammed into previously approved projects and acivities and into program administraion.

(c) Budget revision requirements. In evising budgets prior to June 30, 1975, he city shall adhere to existing udget requirements. After June 30, 975, the budget revision requirements sted below shall apply:

(1) HUD approval of budget revions will be required only for substanal changes in the program and for anges in model neighborhood oundaries which add or subtract ten ercent of the model neighborhood pulation. Substantial changes, ether in key projects or administrawe arrangements, are those which present a major departure from the -ection of the program as previously proved.

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

3) Any increase in program administion must take into consideration at the model cities grant shall not eed 80 percent of the eligible costs program administration.

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

0.3 Deadline for city to obligate grant funds.

odel cities grant funds must be obced under contracts between the and third parties (i.e. operating cies and contractors) or under mal cooperation agreements ben the City Demonstration Agency other city departments on or prior eptember 30, 1975, except for pro■ administration. Any grant funds so obligated by that date will be ptured by HUD. Any grant funds

which become de-obligated after t obligation deadline date, may be r programmed into previously approve projects and activities or into progra administration.

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

HUD, in consultation with each cit shall establish a grant assistance con pletion deadline date by which a model cities grant fund assistance t the comprehensive city demonstratio program shall end subject to excep tions set forth in § 580.5. Any costs in curred with respect to the comprehen sive city demonstration program afte the grant assistance completion dead line shall be considered ineligible fo 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

for expendi- tion deadline, will remain subject to

ance comple-
o a written
and the city.
sing develop
nt funds for
development
ligated under
ity and the de-
on or before
§ 580.3). How-
may be budget-
the grant as-
eadline, subject
t between HUD

additional HUD audits. Program ad-
ministration costs incurred by the city
after the final audit of the compre-
hensive city demonstration program
will be certified to on a certificate of
program completion. (See § 580.7.) The
costs will be reviewed by HUD field
representatives and are subject to
audit.

$580.7 Certification of program comple-
tion.

When all audit findings contained in
the final HUD audit report have been
cleared, and if applicable, when HUD
and the city have entered into a writ-
ten agreement regarding the comple-
tion of any activities continuing after
the grant assistance completion dead-
line, the city shall be required to certi-
fy program completion on a form pre-
scribed by HUD.

§ 580.8 Reports on projects and activities
continuing after grant assistance com-
pletion deadline.

tances. In order ablishment of a pletion deadline cts and activities, raphs (a), (b), or 1, which involve Actual obligations ts and activities, Iministrators may exceptions to the mpletion deadline. ojects and activities è deadline by HUD rators shall be oblitracts between the ties or under formal ements between the on Agency and other on or prior to Sepsee § 580.3). However, may be budgeted for r the grant assistance line, subject to a writbetween HUD and the

Policies for Program
Closeout

UD audit of CCDP.

The city shall be required to submit to HUD such reports as HUD shall deem necessary with respect to capital projects, relocation activities, development corporations, and other excepted projects and activities continuing beyond the grant assistance completion deadline.

§ 580.9 Letter of credit adjustment and
draw downs.

Upon HUD approval of the certificate of program completion and final financial statements, the city's letter of credit will be adjusted to equal the amount of the undisbursed allowable grant due to the city as shown on the certificate.