(1) The Secretary determines that the facility proposed to be assisted by the supplementary grant is necessary or desirable for carrying out a Project; (2) The related basic grant has been approved by the basic granting agency; and

(3) A Project Agreement has been entered into for the Project which the facility is intended to serve.

§ 720.73 Community development block grants.

Title I of the Housing and Community Development Act of 1974 (42 U.S.C. 301) authorizes grant assistance for certain community development activities, including such activities in behalf of Projects under the Act and under the New Communities Act of 1968 (42 U.S.C. 3901 et seq.). The policies and procedures applicable to this program are contained in 24 CFR, Part 570. Developers and others intending to apply for assistance under Title I in behalf of new communities should consult with the General Manager.

§ 720.74 Federally-assisted housing.

Section 8 of the United States Housing Act of 1937, as amended (42 U.S.C. 1437(f), authorizes the making of housing assistance payments on behalf of lower income families renting housing pursuant to the United States Housing Act of 1937 (42 U.S.C. 1437 et seq.), including such families renting such housing in new community Projects. The policies and procedures applicable to this program are contained in 24 CFR, Ch. II.

Subpart F-Fee and Charge Schedule

§ 720.80 Applicability of this Subpart.

This Subpart specifies the fees and charges which have been established for payment to HUD in connection with applications for and approval of guarantees and other assistance.

§ 720.81 Fees and charges.

(a) Application charge. A non-refundable application charge of $10,000 shall accompany the initial submission of all or part of an application by a Public or Private Developer for guar

antee assistance or a Determination of Eligibility (§ 720.44; § 720.49).

(b) Commitment charge. A commitment charge equal to 0.5 percent of the principal amount of the guarantee commitment by the Secretary up to $30 million, and in addition, 0.1 percent of the principal amount above $30 million shall be paid by the Developer upon acceptance of an offer of commitment (§ 720.46(c)) or at the time a guarantee is made (§ 720.48), whichever occurs first. Should the Project become impractical, infeasible, or impossible to undertake prior to issuance of a guarantee, the Secretary may refund such portion of the commitment charge as he deems equitable. (c) Reopening charge. A timely reopening request (§ 720.46(c)) shall be accompanied by a charge of 0.05 percent of the expired offer of commitment for guarantee assistance. An offer of commitment which has expired because of the failure to pay the commitment charge may be reopened and accepted only upon payment by the Developer of the commitment charge and the reopening charge.

(d) Guarantee fee. A guarantee fee equal to 3 percent of the principal amount of guaranteed debt obligations shall be paid by the Developer at the time of the issuance of such obligations, subject to waiver in whole or in part at the discretion of the Secretary.

(e) Annual fee. An annual fee equal to 0.5 percent of the average principal amount of guaranteed debt obligations and unused guarantee commitment, outstanding during the preceding year, shall be paid on the first anniversary date of the guarantee, until the seventh anniversary date. Thereafter an annual fee of 1 percent of the average principal amount of guaranteed debt obligations and unused guarantee commitment outstanding during the preceding year shall be paid on each subsequent anniversary date of the initial guarantee until the total debt obligation is paid in full. Annual fees may, however, be waived in whole or in part at the discretion of the Secretary.

(f) Transfer charge. Upon application for approval of a substitution of Developers (§ 720.21(d)), a transfer

Subpart B-Project Development and
Operation

800.201 Preapplication.

800.202 Submission of application.

800.203 HUD review and approval of application.

800.204 Development procedures.

800.205 Preparation and contents of developer's packet.

800.206 Invitation for proposals. 800.207 Submission of proposals. 800.208 Proposal contents.

800.209 Site and neighborhood standards. 800.210 Prohibition of use of preselected sites.

800.211 Evaluation of proposals.

800.212 Notification of developer selection. 800.213 Annual contribution contract. 800.214 Agreement to enter into housing assistance payments contract. 800.215 Project completion.

800.216 Execution of housing assistance payments contract.

800.217 Project operation.

800.218 HUD review of contract compli

ance.

800.219 LHA reporting requirements. [Reserved]

APPENDICES:

[Appendices I, II, III, VII, IX, XIV, XV, XVII, XVIII, XIX, and XX, which relate to internal HUD processing procedures, are not included herein, but do appear in the HUD New Construction Handbook] Appendix IV: New Construction-Invitation for Proposals.

Appendix V: Management Capability and
Proposed Management Program.
Appendix VI: LHA Review Checklist for
Section 23 New Construction Proposals.
Appendix VIII: Notification of Developer
Selection.

Appendix X: Annual Contributions Contract.

Appendix XI: Agreement to Enter Into Housing Assistance Payments Contract. Appendix XII: Housing Assistance Payments Contracts.

Appendix XIII: Determination of Family
Eligibility and Lease Approval.
Appendix XVI: Security Deposit Agree-
ment.

AUTHORITY: Sec. 7(d), Department of Housing and Urban Development Act (42 U.S.C. 3535(d)); sec. 10(b) of the U.S. Housing Act of 1937 (42 U.S.C. 1410(b)); sec. 23 of the U.S. Housing Act of 1937 (42 U.S.C. 1421(b)).

SOURCE: 39 FR 14303 Apr. 22, 1974, unless otherwise noted. Redesignated at 40 FR 15580, Apr. 7, 1975.

Subpart A-Applicability, Scope, and Basic Policies

§ 800.101 Applicability and scope.

(a) The policies and procedures contained herein are applicable to the making of housing assistance payments on behalf of eligible low-income families leasing newly constructed housing developed under the new construction method pursuant to the provisions of section 23 of the U.S. Housing Act of 1937.

(b) For the purposes of this part, "new construction" shall mean newly constructed housing for which, prior to the start of construction: (1) An Annual Contributions Contract (ACC) is executed between the Department of Housing and Urban Development (HUD) and the Local Housing Authority (LHA); and (2) an Agreement to Enter Into Housing Assistance Payments Contract ("Agreement") is executed between the LHA and the owner, except that developers of housing already under construction are eligible for participation in this program, provided that all requirements of the program can be met. Unless specific approval is obtained from HUD, the policies and procedures contained herein shall apply to all new construction projects for which ACCS have not yet been executed. With respect to projects under executed ACCs, these standards may be applied to a project if the LHA and owner/developer, if designated, agree to do so.

(c) This part (1) covers policies and procedures relating to the roles and responsibilities of HUD, the LHA and the owner/developer; the application process; the project development