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 after 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 completion deadline, will remain subject to additional HUD audits. Program administration costs incurred by the city after the final audit of the comprehensive 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 completion.

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 written agreement regarding the completion of any activities continuing after the grant assistance completion deadline, the city shall be required to certify program completion on a form prescribed by HUD. § 580.8 Reports on projects and activities continuing after grant assistance completion deadline.

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

Model cities policies relating to citizen participation remain in effect until the grant assistance completion deadline has been reached.

Subpart C-Disposition of Property
Purchased With Model Cities Funds

§ 580.12 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 con

tract 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.

The objectives of the Comprehensive Planning Assistance Program are to assist recipients to:

(a) Develop and improve overall governmental capability and the management and decision-making capability of Governors and Chief Executive Officers to:

(1) Improve public service productivity by making governmental services more effective, efficient and less costly; (2) Modernize state and local government institutions and areawide structures;

(3) Use natural resources wisely while observing conservation principles; and (4) Develop a policy-planning-evaluation capacity.

(b) Address special problems or opportunities including:

(1) Planning for the recovery from and to lessen the impact of floods and other natural or man-caused incidents;

(2) Planning for economic recovery of communities impacted by substantial changes in Federal activities, such as base closing;

(3) Developing energy conservation measures to reduce energy consumption and to assist communities facing substantial impact due to exploitation of energy resources situated within or adjacent to the community; and

(4) Planning for adequate energy supplies and siting of necessary supporting facilities;

(c) Develop coordination mechanisms which will facilitate planning on a unified basis for States, metropolitan and non metropolitan areas, counties, municipalities and Indian tribal groups or bodies and to link governmental planning and capital improvement programs.

(d) Develop and carry out a comprehensive plan, considering energy and environmental needs and impacts, as part of an on-going comprehensive planning process including:

(1) The development of land use plans to facilitate the efficient use of land for conservation, production, development and redevelopment;

(2) The development of housing plans to maximize the use and conservation of existing housing stock and neighborhoods and to facilitate the production of new housing to meet community needs and to reduce the isolation of income groups within communities and geographic areas; and

(3) Public facility, utility, recreational, conservation and other plans and regulatory measures to achieve State and local goals and objectives.

§ 600.7 Definitions.

As used in this Part, the following terms shall have the meaning indicated.

(a) "Applicant" means a State or unit of general local government, or any combination thereof, areawide planning organization or Indian tribal group or body, as defined in paragraph (f) of this section, which makes application pursuant to the provisions of this Part.

(b) "Areawide planning organization” means an organization authorized by law or by interlocal agreement to undertake planning for a metropolitan or nonmetropolitan area which meets the areawide organizational and jurisdictional requirements of this Part; or a Council of Governments.

(c) "Chief Executive Officer" means the elected official, or the legally designated official, who has the primary responsibility for the conduct of the governmental affairs of a state, unit of general local government or areawide planning organization. Examples of the "Chief Executive Officer" of a state, unit of general local government or an areawide planning organization may be: The governor of a state; the elected mayor of a municipality; the elected county executive of a county; the chairman of a county commission or board in a county that has no elected county executive; the official designated pursuant to law by the governing body of the unit of general local government (e.g., City Manager or City Administrator); the chairman, governor, chief, or president (as the case may be) of an Indian tribe or Alaskan native village; and the highest policy officer (president or chairman) of an areawide planning organization.

(d) "Council of Governments" and "COG" each means an organization authorized by law or by interlocal agreement to undertake planning for a metropolitan or nonmetropolitan area and whose voting membership is composed solely of elected officials of units of general local government within the planning jurisdiction, or their representatives which meets the areawide organizational and jurisdictional requirements § 600.40(b).

of

(e) "Department" and "HUD" each means Department of Housing and Urban Development.