(c) Patterns of urban growth. The project will help curb urban sprawl or involves undeveloped or predominately undeveloped land which, if withheld from commercial, industrial, and residential development, would have special significance in helping to shape desirable patterns of urban growth 5 "Urban sprawl" refers to random and unguided development outward from urban centers. It is usually characterized by groups of large scale, low denity residential developments, interspersed and surrounded by commercial and industrial development. Projects that can help alleviate and curb urban sprawl are projects designed to guide large scale growth or act as a buffer by separating incompatible land uses.

(d) Danger of loss. The project site is in imminent danger of loss 3

"Imminent Danger of Loss" means that the project is threatened by action which will prevent the use of the area or property for open space or historic preservation purposes.

(e) Program experience. (1) If applicant had previous federally assisted program experience: The applicant has expeditiously acquired properties; where displacement was involved, effectively carried out relocation activities; expeditiously developed the properties; sponsors programs for their use; and operates them in accordance with contract conditions

or

4

(The value of this category is the sum of the values of paragraphs (a) and (b) of this section.)

(a) Median income of jurisdiction. The median annual family income of the geographic area of jurisdiction of the applicant compared to the State median annual family income is: (Select one, if appropriate):

(1) $1-$500 below State median 3 (2) more than $500 below State median...... ................ 6

(b) Median income of service area. The median annual family income of the service area compared to the State annual median family income is: (Select one if appropriate):

(1) $1-$500 below State median 4 (2) more than $500 below State median...... 8

Median family incomes for the service area and the State are to be obtained by utilizing the City County Data Book or other census data if possible. Or use best available data. "Service Area" refers to the area proposed to be, and reasonably capable of being, served by the Open Space Land Project.

§ 551.18 Local need.

(The value of this category is the sum of the values of paragraphs (&) and (b) of this section.)

(a) Median income of jurisdiction. The median annual family of the geographic area of jurisdiction of the applicant compared to the State median annual family income is: (Select one, if appropriate):

(1) $1-$500 below State median...... 3 (2) More than $500 below State median......

(b) Median income of service area. The median annual family of the service area compared to the State annual median family income is: (Select one if appropriate):

sentatives in the areawide or metropolitan planning organization ............. 3

§ 551.22 Expansion of housing for low-and moderate-income families.

(The value of this category is the sum of the values of paragraphs (a), (b), and (c) of this section.)

(a) Expansion of low- and moderateincome housing (applicant). Within the applicant's geographic area of jurisdiction, there has been significant expansion of the supply of standard housing for low- and moderate-income families in nondiscriminatory way.... 3

(b) Expansion of low- and moderateincome housing (iocality). Within the locality in which the project is located, there has been significant expansion of the supply of standard housing for low-and moderate-income families in a

nondiscriminatory way.

3

The degree to which the project is necessary for undertaking other publicly supported community development activities .... 0 to 6

“Community development activities" refers to those publicly supported physical development activities and those related social or economic development activities being carried out or to be carried out within a reasonable period of time in accordance with a locally determined or areawide plan or strategy. Factors taken into consideration may include the project's responsiveness to local needs and objectives, the economics possible through coordinated or joint action, the degree of support by the appropriate unit(s) of local general-purpose government, and the management capacity and efforts to develop management capacity within local general-purpose government.

PART 555-GRANTS FOR BASIC PUBLIC WATER AND SEWER FACILITIES

Sec.

555.1 Purpose.

555.2 Definitions.

555.3 Grants for basic public water and sewer facilities.

555.4 Eligible projects.

555.5 Requirements for assistance. 555.6 Labor standards.

555.7 Certification of projects for sewer fa

cilities.

555.8 Application of other Federal laws. 555.9 Information, application forms, and applications.

AUTHORITY: Secs. 702, 705, 79 Stat. 490, 492; 42 U.S.C. 3102, 3105.

SOURCE: 36 FR 24730, Dec. 22, 1971, unless otherwise noted.

§ 555.1 Purpose.

The purpose of section 702 of the Housing and Urban Development Act of 1965 (79 Stat. 490, 42 U.S.C. 3102) is to assist the large and small communities throughout the Nation to serve the needs of their citizens and to promote efficient and orderly community growth and development by making available Federal grant assistance to construct adequate basic public water and sewer facilities.

§ 555.2 Definitions.

(a) "Act" shall mean the Housing and Urban Development Act of 1965 (Pub. L. 89-117, approved August 10, 1965).

(b) "Development cost" shall mean the cost of constructing a basic public water or sewer facility and the cost of acquiring the land on which it is located, including site improvements necessary to permit the use of the land as a site for the facility.

(c) "Local public bodies and agencies" shall mean any public corporate bodies or political subdivisions; public agencies or instrumentalities of one or more States (including public agencies and instrumentalities of one or more municipalities or other political subdivisions of one or more States); Indian tribes; or boards or commissions established under the laws of any State to finance specific capital improvement projects.

(d) "Secretary" shall mean the Secretary of Housing and Urban Development, or an officer authorized to perform the functions of the Secretary.

(e) "State" shall mean the several States, the District of Columbia, the Commonwealth of Puerto Rico, and territories and possessions of the United States.

§ 555.3 Grants for basic public water and sewer facilities.

(a) Grants of not more than 50 percent of the development cost of eligible basic public water or sewer facility projects may be made to local public bodies and agencies.

(b) Grants of not more than 90 percent of the development cost of an eligible sewer facility project may be made if the project is to serve a community having a population of less than 10,000, according to the most recent decennial census, which is situated within a metropolitan area, and if such community is unable to finance the construction of the sewer facility without the increased grant, and if in such community (1) there does not exist a public or other adequate sewer facility which serves a substantial portion of the inhabitants of the community and (2) the rate of unemployment is, and has been continuously for the preceding calendar year, 100 percent above the national average.

§ 555.4 Eligible projects.

(a) Grant assistance is available to construct new facilities and to enlarge or improve existing facilities of the following types:

(1) Basic public water facilities, including facilities for the storage, supply, treatment, purification, or distribution of water for domestic, commercial, or industrial use; and

(2) Basic public sewer facilities, including sanitary sewer systems for the collection, transmission and discharge of liquid wastes; and storm sewer systems for the collection, transmission, and discharge of water caused by rainfall or ground water runoff.

(b) The basic public water or sewer facility for which a grant may be made may include all parts of the water or sewer facility except household con

nections and the local collection or distribution laterals.

(c) Grant assistance will not be provided to finance ordinary repairs or maintenance of existing facilities.

(d) Grant assistance will not be provided for the construction of “treatment works” as defined in the Federal Water Pollution Control Act (70 Stat. 506, 23 U.S.C. 1173).

3555.5 Requirements for assistance.

(a) An eligible project must be necessary to provide adequate water or sewer facilities for, and contribute to the improvement of the health or living standards of, the people in the community to be served by the project. The project must be—

(1) Designed so that an adequate capacity will be available to serve the reasonably foreseeable growth needs of the area;

(2) Consistent with a program for a unified or officially coordinated areawide water or sewer facilities system as part of the comprehensively planned development of the area; and (3) Necessary to orderly community development.

(b) Prior to July 1, 1968, the Secretary may, in his discretion, make a grant with respect to an eligible project if the program for an areawide water or sewer facilities system is under active preparation but not yet completed, if the facility for which assistance is sought can reasonably be expected to be required as part of such an areawide program, and there is an urgent need for the facility.

(c) The Secretary is authorized to make a grant with respect to an eligible project for a sewer facility without regard to the requirements contained in this section in the case of a community which is eligible for an increased grant under § 555.3(b).

§ 555.6 Labor standards.

All laborers and mechanics employed by contractors or subcontractors on projects assisted by a grant made pursuant to section 702 of the Act shall be paid wages at rates not less than those prevailing on similar construction in the locality as determined by the Secretary of Labor in ac

cordance with the Davis-Bacon Act, as amended (40 U.S.C. 276a—276a-5), and shall receive overtime compensation in accordance with and subject to the provisions of the Contract Work Hours Standards Act (40 U.S.C. 327– 332). The Secretary of Labor has, with respect to the labor standards specified in this section, the authority and functions set forth in Reorganization Plan Number 14 of 1950 (15 FR 3176, 5 U.S.C. 1332-15) and section 2 of the Act of June 13, 1934, as amended (40 U.S.C. 276c). No such project shall be approved without first obtaining adequate assurance that these labor standards will be maintained upon the construction work.

§ 555.7 Certification of projects for sewer facilities.

Grant assistance may not be made available for a project for a sewer facility unless the Secretary of the Interior certifies to the Secretary that any waste material carried by the facility will be adequately treated so as to meet applicable Federal, State, interstate, or local water quality standards before such waste material is discharged into any public waterway.

§ 555.8 Application of other Federal laws.

(a) Grants authorized by section 702 of the Act are subject to provisions of:

(1) Title VI of the Civil Rights Act of 1964 (Pub. L. 88-352, 42 U.S.C. 2000d), which provides that no person in the United States shall, on the ground of race, color, or national origin, be excluded from participation in, or be denied the benefits of, or be otherwise subjected to discrimination under any program or activity receiving Federal financial assistance; and

(2) Title IV of the Housing and Urban Development Act of 1965 (42 U.S.C. 3071-3074), which requires that, as a condition of eligibility for assistance under section 702 of the Act, the applicant will follow certain prescribed policies in the acquisition of real property by eminent domain.

(b) An applicant for grant assistance under section 702 of the Act will be required to furnish satisfactory assurance that it will comply with the re

This part sets forth the criteria and procedures used in evaluating preliminary applications for Federal grant assistance to local public bodies and agencies for basic water and sewer facilities under the Act. The evaluation of preliminary applications described in this part does not result in a final decision by the Secretary to extend grant assistance to particular projects for the construction of such facilities. The provisions of this part of the regulations do not apply to projects involving New Communities, or such other critical or innovative projects as the Assistant Secretary for Community Development may determine. The Department reserves the right to negotiate the modification of the scope of the proposed undertaking and/or

the amount of financial assistance requested. Further application procedures are described in § 556.18.

(42 U.S.C. 3535(d))

[37 FR 26415, Dec. 12, 1972]

§ 556.2 Definitions.

terms "Act",

"development

The cost", "local public bodies and agencies", "Secretary", and "State" shall have the meanings given in § 555.2 of this chapter.

§ 556.3 Preliminary applications for assistance.

(a) Preliminary applications for grants for water and sewer facilities shall be submitted on Standard Form 101, to the appropriate HUD regional or area office having jurisdiction over the geographic area involved in the application. Copies of this form may be obtained on request from the regional or area office.

(b) In general, Standard Form 101 requests the legal name and address of the applicant (an eligible local public body or agency); a brief description of the proposed project and its purpose; a list of the localities to be served; the public interest and necessity for the project; and the proposed method of financing including the total project cost and the grant amount requested.

§ 556.4 Criteria for evaluating preliminary applications.

Criteria for evaluating preliminary applications are divided into the following major categories:

(a) Orderly growth and development.

(b) Financial need.

(c) Housing.

(d) Health.

(e) Local job and business opportunity.

(f) Community development. The elements considered in each category are described in the following sections, and the method of assigning rating points to each element or category is set forth. Points are awarded to each element or category in the following manner unless otherwise specifically indicated: If a statement under a particular element or category