amended; or implementing the goals of area wide fair share plans.

(v) Where substantial housing needs are identified pursuant to paragraph (c) (2) of this section, and housing assistance resources are available, the Secretary may determine that Housing Assistance Plans with only minimal housing goals are plainly inappropriate to meeting the needs pursuant to the standards of review in § 570.306(b).

(4) Indicates the general locations, by census tract (or enumeration districts in those jurisdictions where a census tract includes a substantial area, such as an entire community) of proposed new housing construction units or projects and substantial rehabilitation units or projects for lower-income persons on maps as called for in paragraph (b)(2) of this section, consistent with the following objectives:

(i) Furthering the revitalization of the community, including the restoration and rehabilitation of stable neighborhoods to the maximum extent possible.

(ii) Promoting greater choice of housing opportunities and avoiding undue concentrations of assisted persons in areas containing a high proportion of low-income persons.

(iii) Assuring the availability of public facilities and services adequate to serve proposed housing projects.

General locations for projects proposed for Section 8 assistance shall conform to the site and neighborhood standards established for the new construction program (24 CFR Part 880.112) or for the substantial rehabilitation program (24 CFR Part 881.112); and general locations for housing proposed for Section 235 assistance shall meet at least the adequate level on Items 2, 3, 4, and 5 of the Project Selection Criteria (24 CFR Part 200).

(d) Community development budget. The applicant shall submit a community development budget on a form prescribed by HUD. Sufficient amounts shall be included in each year's budget to fully fund relocation payments and assistance for all persons expected to be displaced by that year's Community Development Program activities, even if such displacement will not occur until a later program year. The total amount for such relocation payments and assistance shall reflect the total costs to be incurred pursuant to both § 570.602(a) and 570.602

(d) and shall include any amounts to be made available in accordance with section 206(a) of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970.

(e) Certifications. The applicant shall submit certifications, in such form as HUD may prescribe, providing assurances that:

(1) It possesses legal authority to apply for the grant, and to execute the proposed program.

(2) Its governing body has duly adopted or passed as an official act a resolution, motion or similar action authorizing the filing of the application, including all understandings and assurances contained therein, and directing and authorizing the person identified as the official representative of the applicant to act in connection with the application and to provide such additional information as may be required.

(3) It has complied with all the requirements of OMB Circular No. A-95 as modified by this Part and that either: (i) any comments and recommendations made by or through clearinghouses are attached and have been considered prior to submission of the application;

or

(ii) the required procedures have been followed and no comments or recommendations have been received.

(4) Prior to submission of its application, the applicant has:

(i) Provided citizens with adequate information concerning the amount of funds available for proposed community development and housing activities, the range of activities that may be undertaken, and other important program requirements;

(ii) Held at least two public hearings to obtain the views of citizens on community development and housing needs; and

(iii) Provided citizens an adequate opportunity to articulate needs, express preferences about proposed activities, assist in the selection or priorities, and otherwise participate in the development of the application.

The Act provides that no part of this paragraph shall be construed to restrict the responsibility and authority of the applicant for the development of the application and the execution of its Community Development Program. Accordingly, the citizen participation requirements of this paragraph do not include concurrence by any person or group in

volved in citizen participation in making final determinations concerning the findings and contents of the application. The sole responsibility and authority to make such final determinations rests exclusively with the applicant.

(5) Its chief executive officer or other officer of applicant approved by HUD:

(i) Consents to assume the status of a responsible Federal official under the National Environmental Policy Act of 1969 insofar as the provisions of such Act apply pursuant to this Part;

(ii) Is authorized and consents on behalf of the applicant and himself to accept the jurisdiction of the Federal courts for the purpose of enforcement of his responsibilities as such an official.

The responsibilities of such an officer include, where applicable, as described in 24 CFR Part 58, the conduct of environmental reviews; decisionmaking, and action as to environmental issues; preparation and circulation of draft and final environmental impact statements; and assumption of lead agency responsibilities for preparation of such statements in behalf of Federal agencies other than HUD when such agencies consent to such assumption.

(6) The Community Development Program has been developed so as to give maximum feasible priority to activities which will benefit low- or moderate-income families or aid in the prevention or elimination of slums or blight. The requirement for this certification will not preclude the Secretary from approving an application where the applicant certifies, and the Secretary determines, that all or part of the Community Development Program activities are designed to meet other community development needs having a particular urgency as specifically explained in the application in accordance with § 570.303 (a).

(7) It will comply with the regulations, policies, guidelines and requirements of Federal Management Circular 74-4 and 74-7, as they relate to the application, acceptance, and use of Federal funds under this Part.

(8) It will administer and enforce the labor standards requirements set forth in § 570.605 and HUD regulations issued to implement such requirements.

(9) It will comply with all requirements imposed by HUD concerning special requirements of law, program requirements, and other administrative re

quirements approved in accordance with Federal Management Circular 74–7.

(10) It will comply with the provisions of Executive Order 11296, relating to evaluation of flood hazards.

(11) It will comply with:

(i) Title VI of the Civil Rights Act of 1964 (Pub. L. 88-352), and the regulations issued pursuant thereto (24 CFR Part 1), which provides that no person in the United States shall on the ground of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination under any program or activity for which the applicant receives Federal financial assistance and will immediately take any measures necessary to effectuate this assurance. If any real property or structure thereon is provided or improved with the aid of Federal financial assistance extended to the applicant, this assurance shall obligate the applicant, or in the case of any transfer of such property, any transferee, for the period during which the real property or structure is used for a purpose for which the Federal financial assistance is extended, or for another purpose involving the provision of similar services or benefits.

(ii) Title VIII of the Civil Rights Act of 1968 (Pub. L. 90-284), as amended, administering all programs and activities relating to housing and community development in a manner to affirmatively further fair housing; and will take action to affirmatively further fair housing in the sale or rental of housing, the financing of housing, and the provision of brokerage services within the applicant's jurisdiction.

(iii) Section 109 of the Housing and Community Development Act of 1974, and the regulations issued pursuant thereto (24 CFR 570.601), which provides that no person in the United States shall, on the ground of race, color, national origin, or sex, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under, any program or activity funded in whole or in part with funds provided under this Part.

(iv) Executive Order 11063 on equal opportunity in housing and nondiscrimination in the sale or rental of housing built with Federal assistance.

(v) Executive Order 11246, all regulations issued pursuant thereto (24 CFR Part 130 and 41 CFR Chapter 60), and Section 4(b) of the Grant Agreement,

(1) In acquiring real property in connection with the community development block grant program, be guided to the greatest extent practicable under State law, by the real property acquisition policies set out under Section 301 of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (P.L. 91-646) and the provisions of Section 302 thereof;

(ii) Pay or reimburse property owners for necessary expenses as specified in Section 303 and 304 of the Act; and

(iii) Inform affected persons of the benefits, policies, and procedures provided for under HUD regulations (24 CFR Part 42).

(13) It will:

(i) Provide fair and reasonable relocation payments and assistance in accordance with Sections 202, 203, and 204 of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 and applicable HUD regulations (24 CFR Part 42), to or for families, individuals, partnerships, corporations or associations displaced as a result of any acquisition of real property for an activity assisted under this Part;

(ii) Provide relocation assistance programs offering the services described in Section 205 of the Act to such displaced families, individuals, partnerships, corporations or associations in the manner

90-079-77-5

provided under applicable HUD regulations;

(iii) Assure that, within a reasonable time prior to displacement, decent, safe, and sanitary replacement dwellings will be available to such displaced families and individuals in accordance with Section 205(c) (3) of the Act; and that such housing will be available in the same range of choices to all such displaced persons regardless of their race, color, religion, national origin, sex, or source of income;

(iv) Inform affected persons of the benefits, policies, and procedures provided for under HUD regulations; and (v) Carry out the relocation process in such a manner as to provide displaced persons with uniform and consistent services, including any services required to insure that the relocation process does not result in different or separate treatment to such displaced persons on account of their race, color, religion, national origin, sex, or source of income.

(14) It will establish safeguards to prohibit employees from using positions for a purpose that is or gives the appearance of being motivated by a desire for private gain for themselves or others, particularly those with whom they have family, business, or other ties.

(15) It will comply with the provisions of the Hatch Act which limit the political activity of employees.

(16) It will give HUD and the Comptroller General through any authorized representatives access to and the right to examine all records, books, papers, or documents related to the grant.

[41 FR 4133, Jan. 28, 1976, as amended at 41 FR 7504, Feb. 19, 1976; 41 FR 8345, Feb. 26, 1976; 41 FR 11128, Mar. 16, 1976; 42 FR 6504, Feb. 2, 1977]

§ 570.304 Waiver of application require

ments.

(a) Eligibility for waiver. The Secretary may waive all or part of the application requirements contained in § 570.303 (a) and (b) if the applicant meets the following criteria:

(1) The applicant has a population of less than 25,000 according to the most recent data compiled by the Bureau of Census and is located:

(i) Outside a standard metropolitan statistical area, or

(ii) Inside such an area but outside an "urbanized area," as defined by the Bureau of Census;

(2) The application relates to the first community development activity to be

carried out by such locality with assistance under this part; and

(3) The assistance requested is for a single development activity under this Part of a type eligible for assistance under § 570.200 (a) (1) (iii); or neighborhood facilities, water and sewer facilities, historic properties, and parks, playgrounds, and similar recreational facilities authorized pursuant to § 570.200 (a)(2).

(b) Secretarial determination. Having considered the nature of the activities described in § 570.304 (a) (3), the Secretary has determined that a waiver of the application requirements of § 570.303 (a) and (b) is not inconsistent with the purposes of this Part, provided that the grant requested does not exceed $1,000,000. The Secretary may also waive the application requirements of § 570.303 (a) and (b), in response to a written request in other cases in which the conditions described in § 570.304 (a) (3) are met but the amount of the grant requested exceeds $1,000,000.

§ 570.305 Program amendments.

(a) Community Development Program amendments. An amended application shall be submitted to HUD in those instances where:

(1) A recipient proposes to carry out an activity or activities not included in Community Development Program or Community Development Program amendment approved by HUD, and the cost, or the cumulative cost of such activities, exceeds the sum of: (i) The amount included for contingencies and/ or unspecified local option activities in the community development budget approved by HUD for the most recent program year, and (ii) ten percent of the recipient's latest annual entitlement amount.

(2) A recipient proposes to undertake activities not previously approved by HUD regardless of costs, designed to meet other community development needs having a particular urgency; or

(3) A recipient proposes to reduce the amount of funds previously approved by HUD for completion of urban renewal projects.

(b) Housing assistance plan amendments. A recipient shall submit an amended housing assistance plan (HAP) or relevant amended parts of a HAP pursuant to § 570.303 (c) to the HUD Area Office where any of the following conditions exist:

(1) The recipient proposes a reduction of any goal for housing assistance pursuant to § 570.303 (c) (3); or

(2) The recipient proposes a revision of the general locations for assisted housing pursuant to § 570.303 (c) (4).

(c) Submission requirements. The following documentation only need be submitted in support of a request for an amendment to an approved application:

(1) The elements of the approved application to be changed such as the statement of needs, short-term objectives, community development budget, housing assistance plan, etc., and

(2) The assurances described in § 570.303 (e).

(d) Response to requested amendments. A recipient shall consider the proposed changes approved unless advised to the contrary in writing by HUD within 30 calendar days from the date of submission of the request to HUD. Such requests are subject to the applicable provisions of § 570.306. If such requests are disapproved, the recipient shall be informed of the specific reasons for disapproval.

(e) Other amendments. Changes not covered in paragraph (a) and (b) of this section shall be reported to HUD as part of the annual performance report as described in § 570.906.

(f) Reprogramming unobligated funds. Funds that will be unobligated at the end of a program year may be reprogrammed as a part of a subsequent year's annual application for a grant so as to avoid program amendments. Such a reprogramming is not a requirement inasmuch as an applicant may continue to carry out activities included in a prior year's application.

142 FR 6505, Feb. 2, 1977]

§ 570.306 HUD review and approval of application.

(a) Acceptance of application. (1) Upon receipt of an application, the HUD Area Office will accept it for review, provided that:

(i) It has been received before the deadline for receipt of applications established in § 570.300 (a);

(ii) The application requirements specified in § 570.303 are complete, except with regard to those applications for which certain submission requirements are waived pursuant to § 570.304;

(iii) The funds requested do not exceed the entitlement amount;

(iv) Any comments and recommendations received from clearinghouses are attached to the application; and

(v) The applicant's performance report for the previous fiscal year has been submitted as required by § 570.300 (d).

(2) If the application is accepted in accordance with the preceding paragraph, the date of acceptance of the application will be the date of receipt of the application in the HUD field office, and the applicant will be so notified in writing. If the application is not accepted for review, the applicant will be so notified in writing, and will be advised of the specific reasons for nonacceptance.

(b) Scope of review. (1) The Secretary will normally base his review upon the applicant's certifications, statements of facts and data and other programmatic decisions. The Secretary reserves the right, however, to consider substantial evidence including significant facts and data, in accordance with the review criteria in this section, which challenges the certifications, statements of facts and data, and other programmatic decisions, and to require additional information or assurances from the applicant as warranted by such evidence.

(2) Based on that review, the Secretary will approve the application unless:

(i) On the basis of significant facts and data, generally available (whether published data accessible to both the applicant and the Secretary, such as census data, or other data available to both the applicant and the Secretary, such as recent local, areawide or State comprehensive planning data) and pertaining to community and housing needs and objectives, the Secretary determines that the applicant's description of such needs and objectives is plainly inconsistent with such facts and data; or

(ii) On the basis of the application, the Secretary determines that the activities to be undertaken are plainly inappropriate to meeting the needs and objectives identified by the applicant; or (iii) The Secretary determines that the application does not comply with the requirements of this Part or other applicable law, or proposes activities which are ineligible under this Part.

(c) Approval or disapproval of application. Within seventy-five days of the date of receipt of the application, or at such earlier time as review is completed, the Secretary will notify the applicant in writing that the application has been either approved, or disap

proved. In the event the Secretary has not mailed a notification to the applicant within seventy-five days from the date of acceptance of a complete application that it has been disapproved, the application shall be deemed to be approved. If the application is disapproved, the applicant shall be informed of the specific reasons for disapproval.

(d) Approval of less than full entitlement. In addition to the adjustments authorized under § 570.911, the Secretary may also adjust the entitlement amount to the extent identified in an application submitted under this part designated for an activity or activities that are not eligible under § 570.200, and the deficiency has not been corrected prior to the expiration of the 75-day review period for the application. Funds not approved will be reallocated pursuant to § 570.107.

(e) Conditional approval. The Secretary may make a conditional approval, in which case the full entitlement amount will be approved but the obligation and utilization of funds for affected activities will be restricted. Conditional approvals will be made only where:

(1) Local environmental reviews under § 570.603 have not yet been completed;

or

(2) The requirements of § 570.607 regarding the provision of public services or flood or drainage facilities have not yet been satisfied; or

(3) There is substantial evidence that there has been, or there will be, a lack of substantial progress, noncomformance, noncompliance, or a lack of continuing capacity, as described in § 570.909. In such case, the reasons for the conditional approval and the actions necessary to remove the condition shall be specified. Failure to satisfy the condition may result in a reduction in the annual grant pursuant to § 570.910(b) (10).

[41 FR 4133, Jan. 28, 1976, as amended at 42 FR 5313, Jan. 27, 1977; 42 FR 6505, Feb. 2, 1977]

Subpart E-Applications and Criteria for Discretionary Grants

SOURCE: Subpart E, 41 FR 8612, Feb. 27, 1976, unless otherwise noted.

§ 570.400 General.

(a) Applicability of rules and regulations. The policies and procedures set forth in Subpart A, B, C, F, G, H, I, and J of this Part shall apply to this subpart