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(5) The entitlement amount determined for each individual unit of goverment, in both metropolitan and nonmetropolitan areas, the amount determined to be available for general purpose discretionary grants in metropolitan areas (including any metropolitan area "set-aside" funds), and the amount determined to be available for general purpose discretionary grants in nonmetropolitan areas shall each be reduced by an amount bearing the same ratio to such total amount prior to reduction as the ratio determined in paragraph (f)(4) of this section; and

(6) In the case of general purpose discretionary funds for either metropolitan or nonmetropolitan areas, any such reduction shall be made prior to the allocation of such funds among the States as provided in §570.104 (c)(1) and (c)(2).

§ 570.104 Funds for discretionary grants.

(a) Secretary's funds. From the amount appropriated for community development block grants each fiscal year, excluding funds described in § 570.101(a), (b), and (c), HUD will determine an amount for each of the fiscal years 1975, 1976, and 1977 which is two percent (2%) and an amount for each of the fiscal years 1978, 1979, and 1980 which is three percent (3%) of such appropriated funds for use in making grants:

(1) In behalf of new communities approved under Title VII of the Housing and Urban Development Act of 1970 or Title IV of the Housing and Urban Development Act of 1968, or in behalf of new community projects assisted under Title X of the National Housing Act which meet eligibility standards set forth in Title VII of the Housing and Urban Development Act of 1970 and which were the subject of an application or preapplication under such title prior to January 14, 1975;

(2) To States and units of general local government which jointly apply for such funds for addressing problems that are areawide in scope;

(3) In Guam, the Virgin Islands, American Samoa, and the Trust Territory of the Pacific Islands;

(4) To States and units of general local government for use in demon

strating innovative community development projects;

(5) To States, units of general local government, and Indian tribes for use in meeting emergency community development needs caused by federally recognized disasters as defined in § 570.407(a) (but not more than 25 percent for each of fiscal years 1975, 1976, and 1977, and 15 percent for each of fiscal years 1978, 1979, and 1980, of the total amount reserved and set aside in the Secretary's fund under this section for each such year will be used for this purpose);

(6) To States and units of general local government where HUD finds it necessary to correct inequities resulting from the allocation provisions of this subpart;

(7) To Indian tribes (all community development block grant assistance for Indian programs will come from the Secretary's fund); and

(8) To States, units of general local government, Indian tribes, or areawide planning organizations for the purpose of providing technical assistance in planning, developing, and administering assistance under this title. The Secretary may also provide such technical assistance under this paragraph directly or through contracts. Grants from the Secretary's fund may be made in addition to any other community development block grants which may be made to the same recipient under this subpart.

(b) Transition/categorical program settlement fund. Using funds appropriated for each of the fiscal years 1975 through 1980 for this purpose as described in § 570.101(b), grants may be made to facilitate an orderly transition to the community development block grant program, and for financial settlement of projects and programs that were terminated and consolidated by this Act, primarily urban renewal projects, to units of general local government which require assistance that cannot be provided through the operation of the allocation provisions described in this subpart.

(c) General purpose funds—(1) Metropolitan areas. Any portion of the amount allocated to metropolitan areas under § 570.101, which remains

after the allocation of: Basic grant amounts to metropolitan cities and urban counties under § 570.102; Holdharmless grants to which units of general local governments in metropolitan areas are entitled under § 570.103, and "set-aside" funds for that fiscal year as described under § 570.101(a) for each fiscal year 1975 through 1980 that are not used for hold-harmless, except as such remaining amount may be modified by pro rata reduction in § 570.103(b), will be allocated for grants to units of general local government, other than metropolitan cities and urban counties, and to States for use in metropolitan areas, allocating for the metropolitan area of each State the greater of an amount that bears the same ratio to the total amount for such areas of all States as either:

(1) The average of ratios between: (A) The population of the metropolitan area in that State and the population of the metropolitan areas of all States;

(B) The extent of poverty in the metropolitan area in that State and the extent of poverty in the metropolitan areas of all States; and

(C) The extent of housing overcrowding in the metropolitan area in that State and the extent of housing overcrowding in

ratio involving the extent of poverty shall be counted one and one-half times, and the ratio involving population will be counted once (0.50+0.30+0.20=1.00). In computing these ratios for metropolitan areas, there will be excluded the demographic values for any metropolitan cities, any urban counties, any units of general local government which are entitled to hold-harmless grants under § 570.103(b), and any Indian tribes.

In order to compensate for the discrepancy between the total of the amounts to be allocated under this paragraph and the total amount of funds available for such purpose, the Secretary shall make a further pro rata reduction of each amount allocated to the metropolitan area in each State under this paragraph so that each State will be allocated an amount representing the same percentage of the total amount of funds available for such allocation as the percentage such State would have been allocated under this paragraph if the total amount of funds available for this purpose had equaled the total amount allocated to all States under this paragraph.

metropolitan the metropolitan

areas of all States; or

(ii) The average of the ratios between: (A) The age of housing in the metropolitan area in that State and the age of housing in the metropolitan areas of all States;

(B) The extent of poverty in the metropolitan area of that State and the extent of poverty in the metropolitan areas of all States; and

(C) The population of the metropolitan area in that State and the population of the metropolitan areas of all States. In determining the average of ratios under paragraph (c)(1)(i) of this section, the ratio involving the extent of poverty shall be counted twice and each of the other ratios shall be counted once (0.50 +0.25 +0.25=1.00); and in determining the average of ratios under paragraph (c)(1)(ii), the ratios involving the age of housing shall be counted two and one-half times, the

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(2) Nonmetropolitan areas. Any portion of the amount allocated to nonunder § 570.101 which remains after providing the allocation of hold-harmless grants to which units of general local government in nonmetropolitan areas are entitled under § 570.103(b), and except as such remaining amount may be modified by pro rata reduction in § 570.103(f), will be allocated for grants to units of general local government in nonmetropolitan areas or to States for use in nonmetropolitan areas, allocating for the nonmetropolitan areas of each State the greater of an amount which bears the same ratio to the total of that remaining amount as either:

(i) The average of ratios between: (A) The population of the nonmetropolitan area in that State and the population of the nonmetropolitan areas in all States;

(B) The extent of poverty in the nonmetropolitan area in that State

and the extent of poverty in the nonmetropolitan areas in all States;

(C) The extent of housing overcrowding by units in the nonmetropolitan areas in that State and the extent of housing overcrowding by units in the nonmetropolitan areas in all States; or

(ii) The average ratios between: (A) The age of housing in the nonmetropolitan area in that State and the age of housing in the nonmetropolitan areas of all States;

(B) The extent of poverty in the nonmetropolitan area of that State and the extent of proverty in the nonmetropolitan areas of all States; and

(C) The population of the nonmetropolitan area of that State and the population of the nonmetropolitan areas of all States.

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In determining the average of ratios under paragraph (c)(2)(i) of this section, the ratios involving the extent of poverty shall be counted twice, and each other ratio shall be counted once (0.50 +0.25 +0.25=1.00); and in determining the average of ratios under paragraph (c)(2)(ii), the ratio involving the age of housing shall be counted two and one-half times, the ratios involving the extent of poverty shall be counted one and one-half times, and the ratio involving population shall be counted (0.50 +0.30+0.20=1.00). In computing these ratios for nonmetropolitan areas, there will be excluded the demographic values for any units of general local government which are entitled to hold-harmless grants under § 570.103(b), and any Indian tribes. In order to compensate for the discrepancy between the total of the amounts to be allocated under this paragraph and the total of the amouni of funds available for such purpose the Secretary shall make a further pro rata reduction of each amount allocated to the nonmetropolitan areas in each State under this paragraph so that each State will be allocated an amount representing the same percentage of the total amount of funds available for such allocation as the percentage such State would have been allocated under this paragraph if the total amount of funds available for this purpose had

equalled the total amount allocated to all States under this paragraph.

(d) Exclusions of demographic values. (1) In excluding the demographic values of population, poverty, housing overcrowding, and age of housing for units of general local government which are entitled to holdharmless grants as required under paragraphs (c) (1) and (2) of this section, only two-thirds of such data will be excluded for fiscal year 1978 and one-third of such data for fiscal year 1979. In 1980 and subsequent years, no such exclusion is to be made.

(2) The demographic values of population, poverty, housing overcrowding, and age of housing of all Indian tribes shall be excluded as part of any computations required by paragraphs (c) (1) and (2) of this section, whether or not they are entitled to hold-harmless grants. It is recognized that all such data on Indian tribes is not generally available from the Bureau of the Census and that missing portions of data will have to be estimated. In accomplishing such estimates the Secretary may use such other related information available from reputable sources as may seem appropriate, regardless of the data's point or period of time, and shall use the best judgment possible in adjusting such data to reflect the same point or period of time as the overall data from which the Indian tribes are being deducted, so that such deductions shall not create an imbalance with that overall data.

(e) Urban Development Actions Grants fund. Using funds appropriated for each of the fiscal years 1978, 1979, and 1980 for such purpose, grants may be made to assist severely distressed cities and urban counties to provide supplemental assistance in alleviating excessive physical and economic deterioration. Such funds allotted shall not exceed $400,000,000 for each of these fiscal years.

§ 570.105 Qualification as urban county.

(a) Determination of qualification. The Secretary will determine the qualifications of counties to receive entitlements as urban counties pursuant to §570.102(b) upon receipt of ap

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In order to compensate for amounts to be allocated un crepancy between the total paragraph and the total am funds available for such purp Secretary shall make a furt rata reduction of each amoun cated to the metropolitan area State under this paragraph s representing the same percent each State will be allocated an a for such allocation as the perc the total amount of funds av such State would have been all under this paragraph if the amount of funds available for thi pose had equaled the total amou located to all States under this graph.

(2) Nonmetropolitan areas. Any metropolitan areas under $57 tion of the amount allocated to location of hold-harmless grants which remains after providing th which units of general local gov ment in nonmetropolitan areas are titled under § 570.103(b), and excep such remaining amount may be m $570.103(1), will be allocated fied by pro grants to units of general local gove rata reduction States for use in nonmetropolit ment in nonmetropolitan areas or areas, allocating for the nonmetropa an amount which bears the same rat tan areas of each State the greater to the total of that remaining amour

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all States under this paragraph.

(C) The population of the nonmetropolitan area of that State and the population of the nonmetropolitan areas of all States.

(d) Exclusions of demographic values. (1) In excluding the demographic values of population, poverty, housing overcrowding, and age of housing for units of general local government which are entitled to holdharmless grants as required under paragraphs (c) (1) and (2) of this section, only two-thirds of such data will be excluded for fiscal year 1978 and one-third of such data for fiscal year 1979. In 1980 and subsequent years, no such exclusion is to be made.

(2) The demographic values of population, poverty, housing overcrowding, and age of housing of all Indian tribes shall be excluded as part of any computations required by paragraphs (c) (1) and (2) of this section, whether or not they are entitled to hold-harmless grants. It is recognized that all such data on Indian tribes is not generally available from the Bureau of the Census and that missing portions of data will have to be estimated. In accomplishing such estimates the Secretary may use such other related information available from reputable sources as may seem appropriate, regardless of the data's point or period of time, and shall use the best judgment possible in adjusting such data to reflect the same point or period of time as the overall data from which the Indian tribes are being deducted, so that such deductions shall not create an imbalance with that overall data.

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In determining the average of ratios
under paragraph (c)(2)(i) of this sec-
tion, the ratios involving the extent of
poverty shall be counted twice, and
each other ratio shall be counted once
(0.50+0.25+0.25=1.00); and in deter-
mining the average of ratios under
paragraph (c)(2)(ii), the ratio involv-
ing the age of housing shall be count-
ed two and one-half times, the ratios
involving the extent of poverty shall
be counted one and one-half times,
and the ratio involving population
shall be counted
(0.50+0.30+0.20-1.00). In computing
these ratios for nonmetropolitan
areas, there will be excluded the de-
mographic values for any units of gen-
eral local government which are enti-
tled to hold-harmless grants under
$570.103(b), and any Indian tribes. In
order to compensate for the discrepan-
cy between the total of the amounts to
be allocated under this paragraph and
the total of the amount of funds avail-
able for such purpose the Secretary
shall make a further pro rata reduc-
tion of each amount allocated to the
nonmetropolitan areas in each State
under this paragraph so that each
State will be allocated an amount rep-
resenting the same percentage of the
total amount of funds available for
allocation as the percentage such
en allocated under
total amount of
is purpose had

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(e) Urban Development Actions Grants fund. Using funds appropriated for each of the fiscal years 1978, 1979, and 1980 for such purpose, grants may be made to assist severely distressed cities and urban counties to provide supplemental assistance in alleviating excessive physical and economic deterioration. Such funds allotted shall not exceed $400,000,000 for each of these fiscal years.

$570.105 Qualification as urban county.

(a) Determination of qualification. The Secretary will determine the qualifications of counties to receive entitlements as urban counties pursuant to § 570.102(b) upon receipt of ap

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