HomeMy WebLinkAbout1999-033
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RESOLUTION NO. 1999-33
RESOLUTION OF THE MAYOR AND COMMON COUNCIL
OF THE CITY OF SAN BERNARDINO AUTHORIZING
THE EXECUTION OF AN AGREEMENT WITH GE
CAPITAL MORTGAGE SERVICES, INC. AWARDING
COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS
WHEREAS, the City of San Bernardino is a municipal
corporation and charter city (the "City") duly organized and
existing pursuant to the Constitution and laws of the State of
California; and
WHEREAS,
the Department of Housing and Urban
Development has awarded to the City a Community Development
Block Grant (CDBG) pursuant to Title I of the Housing and
Community Development Act of 1974, as amended (42 U.S.C.
16 Section 5301, ~ ~.) and implementing regulations codified at
17 24 CFR Part 570; and
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WHEREAS, CDBG funds may be used only in furtherance
of one of the national objectives of the Department of Housing
and Urban Development, including benefit to low and moderate
income families; and
WHEREAS,
job
as
creation
activities
qualify
benefitting low and moderate income families if at least fifty
27 one percent (51%) of the jobs will be held by, or will be
28 available to, low and moderate-income persons; and
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WHEREAS, job retention acti vi ties qualify as
benefitting low and moderate income families if it is
demonstrated that the jobs retained would actually be lost
without the CDBG assistance and that either or both of the
following apply to at least fifty one percent (51%) of the jobs
at the time CDBG assistance is provided: the job is known to be
held by a low- or moderate-income person or the job can
reasonably be expected to turn over within the following two
years and steps will be taken to ensure that it will be filled
by, or made available to, a low- or moderate-income person upon
turnover; and
WHEREAS, pursuant to 24 CFR Section 570.203(b), CDBG
funds may be used by the City for special economic development
activities including the assistance through grants to private
for-profit businesses when such assistance is appropriate to
carry out an economic development project; and
WHEREAS, 24 CFR Section 570.209 sets forth guidelines
for evaluating and selecting economic development projects,
including mandatory standards for evaluating the public benefit
of a project; and
WHEREAS, economic development activities covered by
the guidelines must, in the aggregate, create or retain at
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i1l99-3!l
least one full-time equivalent, permanent job per Thirty-Five
Thousand Dollars ($35,000.00) of CDBG funds used; and
WHEREAS, GE Capital Mortgage Services, Inc. ("GE
Capital"), through the expansion of its facilities at 4680
Hallmark Parkway in the City, desires to consolidate its
customer service and loss mitigation departments formerly
located in Texas and Missouri at its location in the City; and
WHEREAS,
Capital
financial
has
requested
GE
assistance from the City in connection with the consolidation
of certain of its offices in the City; and
WHEREAS, on June 1, 1998, the Mayor and Cormnon
Council authorized the Economic Development Agency of the City
of San Bernardino to spend up to Six Hundred Fifty Thousand
Dollars ($650,000) to assist GE Capital with its consolidation
efforts in the City; and
WHEREAS, GE Capital at this time is requesting
financial assistance in the amount of Six Hundred Twenty Seven
Thousand Dollars ($627,000.00) from the City in connection with
its consolidation in the City; and
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\ 1999-33
Whereas, the consolidation effected by Subrecipient
through the expansion of its Facilities will result in the
retention of six hundred (600) jobs and the creation of
approximately four hundred (400) jobs in the City; and
WHEREAS, at least fifty one percent (51%) of the jobs
created by the consolidation effected by GE Capital will be
held by, or made available to, low- and moderate-income
persons; and
WHEREAS, the jobs retained as a result of the
consolidation effected by GE Capital of its customer service
and loss mitigation departments would have been lost if GE
Capital had consolidated its departments at a location outside
the City and at least fifty one percent (51%) of such jobs are
held by low- or moderate-income persons or can reasonably be
expected to turn over within the next two years and at such
time will, pursuant to steps taken by GE Capital, be filled by,
or made available to, low- or moderate-income persons; and
WHEREAS, the City desires at this time to authorize
the execution of an agreement awarding CDBG funds to assist GE
Capital in the consolidation of its customer service and loss
mitigation departments at its location in the City.
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1999-33
Section 1.
The Mayor and Common Council hereby
determine the above recitals to be true and correct as of the
date of this Resolution.
Section 2. The Mayor and Common Council hereby
approve the Agreement Between the City of San Bernardino and GE
Capital substantially in the form attached hereto as Exhibit
"A" and incorporated herein by this reference (the
"Agreement") .
Section 3.
The Mayor and City Clerk are hereby
authorized and directed to execute the Agreement on behalf of
the City together with any changes therein as may be approved
by the Mayor and the City Attorney.
The Mayor or such other
authorized representative of the City is further authorized to
do any and all things and take any and all actions as may be
deemed necessary or advisable to effectuate the purposes of the
Agreement.
III
III
III
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1'999-13
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO AUTHORIZING THE EXECUTION OF AN AGREEMENT WITH GE
CAPITAL MORTGAGE SERVICES, INC. AWARDING COMMUNITY DEVELOPMENT
BLOCK GRANT FUNDS
Section 4.
This Resolution shall take effect upon
the date of its adoption.
I HEREBY CERTIFY that the foregoing Resolution was
duly adopted by the Mayor and Common Council of the City of
San Bernardino at a joint regular
meeting thereof, held on
11 the 15th day of February, 1999, by the following vote, to wit:
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Council Members: AYES NAYS ABSTAIN ABSENT
ESTRADA x
LIEN x
McGINNIS x
SCHNETZ x
DEVLIN x
ANDERSON x
MILLER x
~k UuJu
/1
The
day of
foregoing resolution is hereby approved this
FphTl1ary , 1 999 .
23 Approved as to form and
legal content:
24 ;J
c;
25 City Attorney
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SBEOI0001/DOC/3452
27 2/9/99 950 ct
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1999-33
~/o
AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO
and
(AWARD OF CDBG FUNDS)
,.-:)(- ,
\ nJ I :;J (1-=0 \rl '"'\"( \7'1rJTl
....) ~ .....q! "-1 J2r- JI \J/ '6,
"" -__,' ',_, I ", ~ ,r
INC./'Iir' .... "'-'1111
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".' (I! .
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._I~' .'
GE CAPITAL MORTGAGE SERVICES.
: ;"~'I:,'(]
,'f'i":-;',;": ~lC:T!:" "~";'I .',~;;;,;C'~
I Ii,~;
THIS AGREEMENT ("Agreement") is entered into this (ffday
of February, 1999 by and between the City of San Bernar2f.no (the
"Ci ty") and GE Capital Mortgage Services, Inc. , a /I/d'w ~tc.ry
corporation ("Subrecipient").
WHEREAS, the Department of Housing and Urban Development
has awarded to the City a Community Development Block Grant
("CDBG") pursuant to Title 42, U.S.C. Sections 5301 et ~. and
Title 24 C.F.R., Part 570 (all references hereinafter in this
Agreement being to Title 24 of the Code of Federal Regulations
unless otherwise indicated); and
WHEREAS, CDBG funds may be used only in furtherance of
one of the national objectives of the Department of Housing and
Urban Development, including benefit to low and moderate income
families; and
WHEREAS, job creation activities qualify as benefitting
low and moderate income families if at least fifty one percent
(51%) of the jobs will be held by, or will be available to, low-
and moderate-income persons; and
WHEREAS, job retention activities qualify as benefitting
low and moderate income families if it is demonstrated that the
jobs retained would actually be lost without the CDBG assistance
and that either or both of the following apply to at least fifty
one percent (51%) of the jobs at the time CDBG assistance is
provided: the job is known to be held by a low- or moderate-income
person or the job can reasonably be expected to turn over within
the following two years and steps will be taken to ensure that it
will be filled by, or made available to, a low- or moderate-income
person upon turnover; and
WHEREAS, pursuant to Section 570.203, CDBG funds may be
used by the City for special economic development activities; and
WHEREAS, special economic development activities include
the provision of assistance through grants to private for-profit
POj:;O y:) /. '/7~;) ? 1
CJ)C :Jo /:r 77
q.)U7~ j
" .
1999-33
businesses, where the assistance is appropriate to carry out an
economic development project; and
WHEREAS, Section 570.209 sets forth guidelines for
evaluating and selecting economic development projects, including
mandatory standards for evaluating the public benefit of a project;
and
WHEREAS, economic development activities covered by the
guidelines must, in the aggregate, create or retain at least one
full-time equivalent, permanent job per $35,000 of CDBG funds used;
and
WHEREAS, the Subrecipient, through the expansion of its
facilities at 4680 Hallmark Parkway in the City, desires to
consolidate its customer service and loss mitigation departments
formerly located in Houston, Texas and St. Louis, Missouri, at its
location in the City; and
WHEREAS, the Subrecipient has
assistance in the amount of Six Hundred
Dollars ($627,000.00)from the City in
consolidation in the City; and
requested financial
Twenty Seven Thousand
connection with its
WHEREAS, the consolidation effected by the Subrecipient
will result in the retention of six hundred (600) jobs and the
creation of approximately four hundred jobs (400) in the City; and
WHEREAS, at least fifty-one percent (51%) of the jobs
created by the consolidation effected by the Subrecipient will be
held by, or made available to, low- and moderate-income persons;
and
WHEREAS, the jobs retained as a result of the
consolidation effected by the Subrecipient of its customer service
and loss mitigation departments would have been lost if the
Subrecipient had consolidated its departments at a location outside
the City and at least fifty one percent (51%) of such jobs are held
by low- or moderate-income persons or can reasonably be expected to
turn over within the next two years and at such time will, pursuant
to steps taken by the Subrecipient, be filled by, or made available
to, low- or moderate-income persons.
NOW, THEREFORE, the parties hereto agrees as follows:
SECTION 1. AWARD OF FUNDS. The City agrees to award
CDBG funds to the Subrecipient in the amount of Six Hundred Twenty
Seven Thousand Dollars ($627,000.00) to be used by the Subrecipient
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for the retention in the City of six hundred (600) jobs and the
creation in the City of four hundred (400)jobs.
SECTION 2. STATEMENT OF WORK. The Subrecipient shall
consolidate its customer service and loss mitigation departments in
the City within six months of the date of this Agreement.
SECTION 3. TERM. This Agreement shall continue in
full force and effect until February 15, 2000, unless extended by
mutual written agreement of the City and Subrecipient or terminated
earlier by the City as provided herein.
SECTION 4. RECORDS AND REPORTS. The Subrecipient
shall, upon execution of this Agreement and prior to the
disbursement of CDBG funds, provide the City with a report
containing the information required by Section 570.506 and
thereafter shall maintain such documents, records and accounts.
SECTION 5. PROGRAM INCOME. Gross income, if any,
received by the Subrecipient directly generated from the use of
CDBG funds pursuant to this Agreement shall not be retained by the
Subrecipient and shall be remitted to the City upon receipt
thereof.
SECTION 6. OTHER REOUIREMENTS OF SUBRECIPIENT. The
Subrecipient shall carry out each activity under this Agreement in
compliance with all Federal laws and regulations described in
Subpart K of Part 570, except that the Subrecipient does not assume
the City's environmental responsibilities described at Section
570.604 and the Subrecipient does not assume the City's
responsibility for initiating the review ,process under the
provisions of Part 52. Subpart K of Part 570 is attached hereto as
Exhibit "B".
SECTION 7. ENFORCEMENT OF AGREEMENT. In accordance
with Section 85.43, suspension or termination of this Agreement may
occur if Subrecipient materially fails to comply with any term of
this Agreement. The City has the right to suspend or terminate
this Agreement upon fifteen (15) days prior written notice to
Subrecipient in the event of breach of any provision of this
Agreement. In addition, the City may, in its sole discretion,
terminate this Agreement for convenience in accordance with Section
85.44.
SECTION 8. REVERSION OF ASSETS. Upon the expiration
or termination of this Agreement, the Subrecipient shall transfer
to the City any CDBG funds on hand at the time of expiration or
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1999-33
termination and any accounts receivable attributable to the use of
CDBG funds.
SECTION 9. INDEMNI FICATION. Subrecipient shall
defend, indemnify and hold harmless the City and its officers,
employees and agents from and against any and all actions, suits,
proceedings, claims, demands, losses, costs and expenses, including
attorneys' fees, for injury or damage of any type claimed by an
individual or entity, whether public or private, as a result of:
(i) the acts or omissions of Subrecipient, its officers, employees,
agents or contractors arising from or related to performance of the
services required hereunder and (ii) failure of Subrecipient, its
officers, employees, contractors or subcontractors to comply with
the laws and regulations applicable to the award of CDBG funds
pursuant hereto.
SECTION 10. NOTICES. Notices shall be presented in
person or delivered by overnight deli very made by a nationally
recognized deli very service to the addresses noted below or by
telephonically verified fax transmission to the facsimile numbers
noted below, each of which shall be deemed effective upon actual
receipt, or by certified or registered United States mail, return
receipt requested, postage prepaid, to the addresses noted below.
Notice presented by United States mail shall be deemed effective
the second business day after deposit with the United States Postal
Service. Either party may change its address for receipt of
written notice by notifying the other party in writing in
accordance with this Section 10.
TO SUBRECIPIENT:
GE Capital Mortgage Services, Inc.
~tol f:')( FO"-ia ~/\.
~(.{dG . Ale.... 27 IS-
Attn: 7-:.771 CoGS ~ S'.<:. V. P. '(}oRr Sif/i.~'/(d
Telephone: $1'1- ~G ,'i{IZ!
Facsimile: _/0/- g'-6- LlZ-fe;
TO CITY:
City of San Bernardino
c/o Redevelopment Agency of
the City of San Bernardino
201 North "E" Street, Suite 301
San Bernardino, California 92401
Attn: Executive Director
Telephone: (909) 384-5081
Facsimile: (909) 384-5135
SECTION 11. SEVERABILITY.
or more of the sentences, clauses,
In the event that anyone
paragraphs, or sections
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1999-33
contained herein is declared invalid, void or illegal by a court of
competent jurisdiction, the same shall be deemed severable from the
remainder of this Agreement and shall in no way affect, impair or
invalidate any of the remaining phrases, sentences, clauses,
paragraphs or sections contained herein.
SECTION 12. WAIVER. Failure of either party to enforce
any provision of this Agreement shall not constitute a waiver of
the right to compel enforcement of the remaining provisions of this
Agreement.
SECTION 13. ENTIRE AGREEMENT.
entire understanding and agreement of
all prior understandings, negotiations
to the subject matter hereof.
This Agreement contains the
the parties and supersedes
and agreements with respect
SECTION 14. AMENDMENT. This Agreement may only be amended
by a written instrument signed by the parties hereto, and only upon
approval thereof by the Mayor and Common Council of the City.
SECTION 15. ASSIGNMENT. In no event shall Subrecipient
assign this Agreement without the prior written consent of the
City, which consent may be withheld in its sole discretion.
SECTION 16. ATTORNEYS' FEES. In the event that either
party hereto shall institute any action or proceeding to enforce
the terms hereto or declare rights hereunder, the prevailing party
in such action or proceeding shall be entitled to recover its
reasonable costs and attorneys' fees from the losing party. The
costs, salary and expenses of the City Attorney and members of his
office in enforcing this Agreement on behalf of the City shall be
considered as "attorney's fees" for the purposes of this paragraph.
SECTION 17. PROVISIONS REOUIRED BY LAW DEEMED INSERTED.
Each and every provision of law required to be inserted herein
shall be deemed inserted and this Agreement shall be read and
enforced as though each such provision was included herein.
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1999-33
IN WITNESS WHEREOF, the City and Subrecipient have
executed this Agreement as of the date first above written.
CITY
City of San Bernardino, a
munic~Pl corporation
! i
, ,
\. ! /"/',' I
By: ",1 ~LL.",-L-/
JUdi~' Valles, Mayor
ATTEST:
...-!~r "e (' C( tee Ie,
cit~c:erk
APPROVED AS TO FORM:
~~
SP~~i'a'l':',/ n~~-
SUBRECIPIENT
GE Capital Mortgage Services,
Inc., a AJt1W~~'fCorporation
'y' ~- ~~
D ts ~"',
By:
Its
P:\APPS\WPDATA\SBEO\OOOl\DOC\3451.WPD
6
1999-33
24 CPR CIl. V CoC-I-97 ~
bit t!'"""&tter, CD be Pl&DocI In
~jollt I IIllI ot ....<Ile. TIll. prD~'
allIlU.. to llrDIl1"&m Ill.""'. "'11
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. I trantol ....d It. aub1'tclptOlllll.
s prOV!llOIl lhaIl bl .ppllocl tor ClIe
~e at tht tDd ot tilt ProIrl'aDi
tor wbJoll Jl'eden1 Jl'1~ Ylar ,_
s are ProVldld.) .....
Prorram IDOome 011 Ilalld t
ot olo.lout tllall ODDtJDue a tIl.
~C to till ellrlblUty l'eqUII'I':II~
I>&l'1: 0 ..nd all Othlr appllC&ll1 ;t,
,1.111 ot tlUl I>&l'1: lUltll I" I I
Id. . . q_
UIllIII otllel'WllI Ilrovldocl ID &II
I ~O.~Dut AireomeDC, aDd .UbJlo~
q "'Illene. ot P&rarra.Pll (b)(5)
I .eotlDII, Incoml rlollvocl aft
'ut .hall Dot be or
10111 ot Chle __(OVO",let by till
tJ -" l"Olpt tIlat l!
, tIlml ot olo.eout thl roolpl~nt
lOell Ir oDrollli' COllG rr&llt ....
reotl,y from !roD !\Inda
artor OIOllOUt ehl,lI' be tre.;:
rrarn IlIoom. or tIl. O"~oIM
rogram. .. _
thl I'IOlpllllt dOli 1I0t haYo all-
~~olllr rro.nt reoelvod dlr80tly
at till tlm. ot Olo..out, In-
'ollvod aner olollout trom till
.Ion ot "'&1 property or from
~trt&nct~ at the tlmo ot 01_
,llIot bl rOV."'"d b,. till proyt:
Cjj1" I>&rt. l"Olpt that luoh Ih-
la be Ut.d tor aoti VI tie. tIlat
.. ot the Ilatlon&l ObJe.tl VII III
lLIl4 the ellrlblllty ""quJ...
IIOrlblet III ..0tlOIl 105 ot tIl;
POlltlon ., "'0'''''", tnc..... ....
V IUbnctplmu. Th. wrlttoll
It betw'.n thl 1'I0lpt.nt ""d
'",oIPI.nt, .. requJrlcl by
shall 'Poo1t;y "hetllor ~orram
"oel....4 la to be roturn.c1 to
tOllt Or rot&lnod b,. tho IUb-
Wh.... prorrfom Illoom. I. to
,:cI~ the 'ubreolpl.Dt, the
be Ullde~oltyk the aotlvltl" I
.D "I th tho pro-
ml lLIl4 that all provl.loD. ot
~n on..m.nt .hall ap~ly to
,Id lLCtlyttl... When tIl. .ub.
raWn. prorr&rn Jaoome
,t rr....t tun<la by tb. reol I~
~ 'UbreolploDt Ih&ll be :d-
rdllli' to tIlo J>r1D.lpl.1 de-
I>&rarn.ph. (bX2) (l) ""d (11)
EXHIBIT "A"
Ofc. 01 Ant. Seer, Comm. Plannln;. Develop.. HUe
1570.506
th&t It I. apprOPrlato to oh&J1i'e 1110 ....
ot the prop.rty to .. u.e ..hloh do.. ..ot
quallt;y Illld.r I>&rI41'&Ph (10)(1) ot thla
Motion, it m&7 ret&.f.D or 41'POH at the
property Cor the oh&llrecl Ut. IC the .....
olpl'lIt'. CDBG prorram II I'Ilmbursecl
IA the &mount oC the OutreDt r&lr'mar-
lr.t value DC the property. 1...,&117 po....
ttOIl ot tho value attrlbutabl. to Ol[-
penclltur.. oC 1I0n-ODBG tunda tor &0-
'lulaltlOIl oC, ""cIlmprovomllltl to, the
prop.rt7.
(0) U the oh&:lr. ot u.. ooouro aCt.r
clo..out, the proY1.lon. rov.rnlllB' 111-
oome from thl cll.po.ltlon DC tht nlal
property 111 1570.604(b)(4) or (S). ... ap-
pllcabl., .hall ..pply to the WI. ot !\Inda
relmbure.cI.
(d) Followlnr thl relmbun.meDt oC
thl OOBG prorram lD &C.Orct"".1 with
pI.l'qraph (b) ot thil ..0tIOD, the prop-
erty 110 longer will b. ,ubJ.ot to &n;y
aosa requJrem.ntl.
res J'R IOn. Mar. 11, 1981. &. &m'cd,d .~ IS
PIt 41381. 0... II. IN.)
1G70.508 Record. to be ",.lntalnec1.
Eaoh reclpl.nt .hall eetabUeh and
m..lnt&ln .uttlot.nt recoreta to .nabl.
tho S.cr.tar)' to d.t.rmln. wh.ther
the reolpl.Dt h&e met the requlremlnc.
oC thl. pa.rt. At a mlDlmum, the tollow.
Inr reoord. are ....c1.c1:
(I.) Reoord. ProvIIllDr a f\1ll d..onp-
tlOD or neb aotlvlty ....I.ted (or b.ler
....1.t.c1) with ODBG !\Incl., InolU<11nr
ltl 10ClLtlon (It thl aotlY1ty hILI a rec-
rraphloal loou.), the &:DOWlt ot COSG
tulld. buclg.t.d, obllr..ud .lId ."p.nded
tor th.aotlvlt7, and the provl.loD ID
.ubpart 0 undor "hloh It I. .1lr1bl..
Ib) aloorda demoD.tratlnr that I.oh
aotlvl~, uDdlrtaken mite. 011. or thl
orlt.rla ..t rorth ID U70.a08. (Wh.... In.
tarmatl.oll 011 lDooml by !f.m.ll,. 11.. 11
requlr.d, tho rlolpl.Dt may .ub.tlt1It.
.vid.Dot ..t.bU.hl"r that the p.reon
uli.teel QualU1el under another )).rO--
rram havilli' In.om. qu&lltlo..t1on crj_
un.. .t I...t III re.tnotlv. ... that
used In the det1nit1onl of "low and.
moderAte tn.come penon" &cd "low a.nd.
moderate income houllhold." (u &"1'11...
oabl.) at 1570.3, .uoh III Job Tr&lo1nr
Partn.rehlp Aot (J'I'P A) and ".It....
prorram&: or the :ec1~I.nt lIIAY .ub.
.tltute .vlet.nc. that the ....I.tod per.
IOD it homelela; or the reo1ptenc ma.,y
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of thJ.J l.oUano AD)" prorram inoom. an
l&.Dc1 when the arr".ment expire.. or
received attar the acnement'. e,xplra-
I:IOD, shall b. palcl to thl reolpl.nt ..
rtlqlrlrod by 1 570.503(b)(8).
(d) DUpont'... 0' .ITt.,.. ".ogram en-
_ rcr:av.tJ Ilti lIl'b".. ......tlu. Pro-
II1'&In lDcom. cllI1\'1c1 Crom urban ooun-
Q' prO(l"&:D a.tlvltl.. uudortak.D by or
w1tll1.. the Jurlacl1otlon ot alllllt DC r.n-
.r&llooaJ rovlrnment whloh thlr.loIt.r
tonnJno.tll Its p&rtlolpatlOD In tho
urb&ll oounty Illall OODtlnuI to b. pro-
rr&:D Incoml ot the urb&ll .0uDt,.. Th.
urb&ll county ~ tr&n&fer tIl. pro-
rram Income to ths unit ot reDlral
loc&l rov.rnm.llt. UPOD Itr t.rmlnatloD
oC urb&ll .0Wl~ pl.l'tlolpatton. provld.c1
that the UDlt ot ren.r&! local rov.r...
m.Dt h... beoome an Intltl.m.Dt rrant-
.. ....d agr... to WI. thl prorrun In.
oom. 1II1c. OWII COBa .ntltlem.nt pro.
rrarn.
[sa Fit ICY. MI.l". 11. lan. .. 1tm'I1d.ed .., eo
P'R 0S16. Nov, Do 1i961
1170.505 V.. DC real proPl1't7,
Th. .t..ndarda de.orlbl~ In thl. ....
tlon apply to re.l prop.rty wiWn the
r.olpl.nt.. control which WILe ...qulred
or Improved 111 "holl or In p...'t WlllIB'
COBG CUnda In .xcIse oC ~:!6,OOO. Thoee
.t&Ild&rde .hall apply erom the 4&te
COBG tunda are Orat .p.nt tor tho
prop.rty until Ov. yun otter olo..out
ot an Intltlement ...clpl.Dt'. partlclpa,.
tlon 111 the entitlement OOBG prorram
or, WltIl re.peot to o;her re.lpl.nte.
until tlv. ,.1..... otter tho olo..ou; oC
the ........t erom ..hloh the ".I.cano. to
the properQ' Will proVlded.
(a) A reolpllnt may Ilot obanf. the
..... or plann.d .... oC an,y .uoh prop.rty
(1Doludlnr the b.D.tlolarl.. or .uoh
lIIO) trom that Cor whl.h the ..oqull1-
tlon or Improv.m.Dt wa. madl unl...
the reolpieDt provld.. aaeot.c1 .ltlzeD'
WIth 1'8ILeOllAbll notlo. ot, alld OppOl'
tunlt;y to comm.nt on, any propo..d
ohang.. &lid elthor:
(1) Th. "." U.I oC .uoh pro~.rty
qu&lltl.. III moetlnf on. or thl Da.
tlonal objectlvlI In 1570.:lO8 (rormorly
1570.901) ""c1 I. DOt I. buUdl1lll' tor the
,en.ral canc1uot ot rOVlrnment: or
(2) Thl r.qutremente lD I>&ragraph (b)
of this ..ct10:C ue met.
(b) U the r.clpleDt c1.t.nnln... otter
oonaultat1on with a.ttected. oJtt.,!1.I,
1570.506
lublt1tute .. aapy at a vertt1able aertln-
cation ll'om thll a.ul.te<t Ptnan that
II1a or her ramlly Inaome doe. not ex-
aMeI the appllaable Inaame limit ..tAb-
ilIheclln accarclanoo with f&'lO.3; or the
nalplont may .ub.tltute a notlao that
tho uat.t.<t penon \I a nrerra!lram a
.tat., oaunty or 10oa1 employment
",.nay or oth.r Intlty that ...... to
raror IncIJvldual. It d.t<innlno. to bo
law and moel.rate Illaamo Ptnano
bal.d an KUD'. orIterta and &il'O" to
maintAin daaum.ntatlan lupportlnr
th.... d.termlnatlon..) Suoh noordl
ehall Include the rcllawlllll" Inlarm....
tion:
(1) For .ach a.atlvlt;r det.rmlne<! to
belllnt low and mad.rato Inaom. per-
.onl, the Inaom. llmlt. appll.<t and tho
point In tlm. when the benent WU de-
tormlned.
(2) Far eaah aotlvlty d.t.rmlned to
b.nent law and mod.r..<e Inaame per-
.ana hued. OD the are.. IOrved by the
a.atlvlt.r.
(1) The bounda.r1n ot the .ervice are..;
(Ill Th. Inaame chara.ot.ri.tla. at
r&mlll.. ..ad WU'1llated Indlvlduale In
the .erne. ana; and.
(lU) II the percent or law and mod-
erate Inaome per.CIll In tho .erna.
ar... I' Ie.. than &1 pel'<lent, data ehaw-
Inr thAt the .....a qualltl.. under the
.xc.ptlon .rtterla ..t tarth at
'&70,308(a)(IXII).
(3) rar eaoh aatlvlt)' determine<! to
ben.nt law and mod.rate Inoom. per-
Ions becau.. the aatlvlty Involvee a ra-
olll ty or ,0rYI.. d..lrned tor u.. b;r a
llmited cU.nt.l. oOl1ll.tlng- .xohalv.ly
or predamlnantl)' a! low and mod.r..te
inoome per.ona:
(I) Dooumentatlon e.tabll.hlnr thAt
the raolll ty or IIrYloe I. deelilled ror
the particular n..ca at or ...eeI .xalu-
.Ively by ,enlor cltt..na, acIu1tt meet-
illS" the Bureau or the Cen.uo' Ourrent
Popu.lat1oD :a.porta d.etln1tlon ot ......
nrely cU...blod," ponaDl IIvlll( with
AIDS, b&tund 'PO"''', ab",.d chil-
dren, the homelell, 1111t.ra.te adulta, Dr
mltrrant tarm work..., tor wblch tho
tegu]a.t1011ll provid.e a. pre,umptlon oon..
cornlnS" the ",t.nt to which low- and
moderate-Inoome penona benent: or
(II) Docum.ntatlon d..orIblll( haw
the nAture and. if appllo&ble, the loo&,.p
tlcn ot the r..clllty or ..tvlco .etat>-
24 CfR ClI. V (4-1-'17 EdmCX1)
11111.. tha~ Jt I. "oed prodaminant17 b, ,
low &nd moclenr.te Illcom. pel'lOIll: or
(111) Data ehcwln8" the lIIe and an-
IIUal IlIcame ct the tamil;r at eaoh per-
IOn ...colvillll" the bOlltnt.
(4) For .ach activity can1e<l out !lIr
the purpae. at provldlll8" or Imlll'OVlIl8"
houallllr wh.loh I. d.tormlllOd to belletIt
low and mcdenr.te Incam. pel'llOlll'
(I) A oopy ot a written """,em~~
w1tll eo.oh lallcUcrcl or d.velop.r nc.lv-
Ill&' CDBO ...,I'tallce Indloatlnr th.
tot..1 nwnner cr dw.l11lll1" unlto In _h
multl!l.mlly .truotur. ....I.t.<t ....d th.
number or thcs. ullltt which will b. 00-
oupltd by low and moderat. Inccmo
hauleholda &t'tor uelltancej
(II) ne tot&! ocst or tho o.ctlvit;r, 111-
aludlll( both ODBG and ncn-oDBO
!Unca.
(111) Far ...oh unIt oocUpl.d by , low
and mOd.r..te IlIcom. haus.hold, tho
.1.. ..nd Inoome at the hOl1lehold;
(iv) Por rentAl hou.lnr only:
(A) Th. nont chlrll'Od (or to b.
charged) after aS81.1ta.nc. tor each
dw.l1lnS" unit In eAoh etructun ....
.I.ted: ..nd
(B) Such In!orm..tton .. lI.ce..ary tc
ehow the atIardablllty at unite cccu-
pled (or to be accupl.d) hy low &lid
mod-er&t" inoome houeeholda punua.nt
to crlterta .stabllshedand macl. public
by the nalpl.nt;
(v) Fcr each prcperty aoqulre<l on
which th.... art no seructur.., 'Vld.no.
ct oammltment. .n.urlng that tho ari-
terta In '&70,~08(&)(3) will b. m.t wh.n
the structur.. are bullt:
(vi) Wh.... ..ppllc&bl., recordl d.m-
ollltratlnS" thAt the activity qualln..
under the .poola!' ocncUtlallll at
1 &70.208(&)(3)(1):
(viI) For allY home buyer a,sl,tanco
aotlvlty qualllYlntr "lId.r 1570.201(.),
&70.201(n), or 570,204. Id.ntltloatlon ot
the ..ppll....bl. .lllrIblllty ll&l'lIlP"&ph
MId .v1<lecce that the &etl vi ty m..tIi
the .Urlblllty crtt.rta rar thAt pl'<lvl-
.Ion: tar.1U1Y '''Oh aotlvlty C1uallt:YIll(
und.r 1&70,208(a). the elso an4 Inoam.
c! eo.oh home buyer'. hcullhald: and
(vi!\) For Il U70.2Cl(k) hcU&lnr ..rv-
Ic.. activity. Id.ntlfioatloll at the
HOME projectes) or ....l.tano. that the
ho...llllf ..mc.. aotlvlty .upportt, and
ev1d.no. thAt project,.) or "liat&Dce
m..t the KOME Pl'<lB"tAm Inoaml
I
I
I
184
1999-33
lA CFll CII. V ~ 1-97 klIIIcrI)
: it I. 1lH4 pnl1om1llAl1t!7 1Q' ,
ollll"&te Incom. penelll: or .
;a .howllllr tll. II.. &Il11 _
.n. ot tII. lam1l7 or IllOII _
In, tII. b.n.l1t.
.aoh ...t;jvlt)' o&:rtecl out tll
.. or proYidlar or ImPl'09i";
ll!oh I. d.t.rmIn.11 to bonettt
,o<1e....te 1Il00m. poneu
_ of a written &lrteJlllftt
, 1e.Ilcllorll or d.v.loper ..0.1...
:ib ...lltano. inl1lC&tlnr!;h. ,','
1 .r or dw.IUn, unlta In ....11
.Iy .tructure &IIllt.1l &Illl tII.
r tho.. unite wll!ch wUl bo 00
, low &lllI modll"&te Inoom;
.. after u.llt&noe.
tot&! oo.t at till ~Ot;jVlt;y, In-
,oth OOBG &lid nOn-oOBG
. .ach unit ocoupl'llll3' " low
,ral. Incom. houllhold. tII.
lcom' of the hoWl. hold:
r.ntal houl1nr onlr-
I rent oharp4 lOr to bo
anlr aellltan.oe tor eaoh
unit In each .truotu.. &I-
d
II intonnatlon .. n,cI"1ll7 to
&lfordablllty ot unltl ~-
to be oooupl.\1j by low lUl<l
Inoome ho....hol4a purIU&Ilt
. lltablllhld &lid Dlade pllbUo
llpilnt:
. each property aequlnll OD
'rI art no ItruOturel, eVl4.nC41
,tmlnt. lnaurin, tbat the ori-
~670.ilO8(Io)(3) "Ill b. m.t Wh'D
.un. an buil t.
lire aPJ)l1cabl;. reoorda 4em-
, that the &Qtlvlt)' quUll..
.he lpeol&1 con<ll tlODl at
XS)(I);
>r all7 hom.buyer ""1._
qualltyln, under 1670.:101(.).
. 01" 670.:104, Id.ntitloatlon of
.Ioable 111i1blllty ~ph
mOl that the aotlVlty D111t1
cUlt)' criteria ror tbat proV!-
,&Il.Y .uoh &Qtlnty qu&l1l)1nw
10.208(a), tho II.zI and IIlcom.
om.bUYlr'l boullhol<l. anll
'or a 1670.201(k) hOUlin.- Ie.....
Inty, Id.ntlllo..tlOIl or the
'ojlot(l) or _iltano. tllat the
lemon &Qtivtty lupporta &Il<l
that Pl'Oloot(l) or ...1Iot....c.
,. HOMlll prO/lI'lJll 11100_
0f0- of ANt. S.oy., Comm. P1cInnlng, ellY.lop.. HUe 1570.506
I&tS"tln' ..qu1rementa at 24 crn 92.262 (B) A 1Ilttlllf b;y Job tltl. of !;h. po...
ot 82.264. _llIlIt lobI lU1.d ....4 wll!cll Jobe w...
(6) ror .ach r.ottVlty 4etermtllecl to Inltl&1ly 1I.1d by low &III! m04.....W Ill-
lltDeflt low &1111 moll.....W Inoom. per- com. ponoll.: lUll!
00111 buel! on \h. creation or Jobe, the IC) For ....11 auoll low &114 mo<1erate
nolp1.nt 111..11 provtl!. tho I!ocum.nta- lnoODl. poreoll l1lnll. tho II.. anI! an-
!;tOil 1!..orlb.1! 111 .Ither parqrapll nual Inoom. or the penoll'. t&mJly
(b)(6){1) or (11) of tll1a I.otlon. prior to tll. penon boln, lI1red tor !;h,
(I) Wh.re tll. ....,Iplant ohooa.. to job.
I!ocwnent that at I...t 51 poro.llt of (e) For .ach aotlVlty l1.termlDed to
the lob. will b. av..llabl. to low and "'n.nt low Ionl! mocltrate Inoom. per-
"'od.....t. 1Il00m. penon., docum.nt&- aon. b...cl On tile r.telltion or jolla:
~on tor .ach ...l.t.d bUlln." lballln. (I) lilvld.nc. that III the abeello, of
olud.: ODBG ,,"I"to.no. Jobl wouidlla 101t;
(t.) A oOpY of a wrltt.n &it..mellt (11) J'or eaoll buelnall ..1I.ted, a 1I.t-
oonta.lnllllf: Inr b;y Job tltl. or plrm&lllnt lobI ....
(1) A oommitm.nt by the buelne.. t&1n.d, lD<Ilc..t1nJ whioh or tllo.. Jobo
\hat It will make at lealt 61 poroeat at ..... p....t-tlm. and (wh.n It la known)
tIl. Job. Iov&1labl. to low ..nd mod.rat. whioh ..re hel4 by loW and mod.....te In-
Il10cme pereone ond 00'111 proVld. tr&In- oom. penoll. at tIl. time the CDBG .....
Ill' for &Il.Y of thol. lobI requiring ape- Illtanoe 1O proVldell. Where ..ppllca.bl.,
010.1 11<111. or .ducation: Id.ntlCic..tloll Of any or tho retained
m A lI.tln, by lob titll of thl perm... lobe (other tbloll tho.. known to bo
neat lobI to be oreated Indloatlng hol4 by loW and m04.rate Inoome PO'"
wll!oh lobI wlll b. ..va.lllobl. to low ..nd .one) wll10h ..n prol.ot.d to b.oome
mo4lrat. Inoom. pereonl, ...hloh ,obi avall..bl. to low and moder..te tDoOm.
require lpoolo.l .kllll or 14uo..tlon, ..al! pononl throurll job turnov.r 1ritll1n
wll!cl> Jobe ..... part-tlm., If IollTo and t...o 7...... of tIl. tlm. CDBG ,,"I"tanoe
(3) A deecrtptloa at ..otlolll to b. II prov1l!ell. Wormatlon upon which
cak.n by tIl. recipllnt &I1d bWllne.. to the Job turnoVlr prol.otloll. W're b....d
.1lIW'I tha.t low onl! mod.rlote Inoom. aha.1I &110 bo lnolu4.4111 tII. record;
ponont rec.lve lIret ooneld.....tloa ror (111l J'or .10011 ..wn.1! lob olalDlI<I to
thaI. lob.: and b. 1I.ld by a low an<l mod.rat. I1100m.
(B) A Ilatll1, by lob titl. ot tho po... penOll, intormatlon all tIl. .Ize and an-
1Jl&ll.nt lobS tilled, &III! wll!oh lobo or lIuallncome at the poreon'. !&mIly:
tIlOI' ....n ava.ll..bl. to low ond mod- (Iv) J'or lobo 01a.lm.4 to '" avallabl.
.....telnoom. pel"lOllI, &I1d a 4eaorlptlon to low &III! mol!.rato Inoom. peraon.
ot hoW t1ret oon.ld.ratIDn "'.. rinn to b..el! 011 lob turnover, a 1!.lorlptlon
luch penone tor tholl lob.. TIl. de- cov.rllllf tIl. It.me r.qu1re4 for "a.Io11-
aorlption 11Iall Inolude what hiring r.ble to" job. In p&tagr..pb (b)(6) of tllla
proc... ..... ue.4: wll!ch low Iolld mod- I.otlon: and
.....telnccm. p.raOIll wire Intervlew.4 (v) Wher. lob. ....re c1a.lmed to b.
for a partloul.... Job: &lid wll!olllow and ava.llabl. to 10'" anI! m04.rate Inoom.
D1od.raUllloom. ponone w.r. lIlr.4. poreolll through turnov.r, .. Uatllllr or
(11) Wh.r. tile reclpl.nt ohoo"" to ,"011 lob ...hiDh h.. turn.ll over to date,
40cum,"t tllAt at I...t 61 pero.nt or indicating wll!oll of thOlI Joba w.re .t-
the jobl will be h.ld by low and mod- tIl.r taken by, or ..va.llabl. to, low and
et&te income pereoNl, documentation moderato income penon.. for jo~
for .ach ..Ilated bueln"" ah..lllnclude: m..lle a.a.llabl., .. d.lcrlptlon or how
(A) A oopy of a written agreem.nt lint 001ll14.r..tion WILl riV'ln to luoh
oont..lntnr: ponolll tor tllo.' Joba Ih&11 al.o '" In-
(1) A oommltmlnt by the bWlln... oluded In the reoord.
th"t at I....t 61 perc.nt of the JObl, on (7) J'or purpoa.. of dooum.ntlnr, PUl'-
a full-tlm. .qulval.nt ba.la, will b. IUNlt to pou'~pb (b)(&)(I)(5),
held by low and moder..t. Incom. per- (b)(6XIll(C), (b)(6XIII) Or (b)(6Xv) or till.
Ion'; &I1d lIotlon. tbat the penon for wlloDl a lob
(Z) A IIltln, by lob title Of the porma- wILl .Ither nu.4 b;Y or ",..d. ava.llable
lIent Jobe to b. or.M.d, 14entltylnr to a lOW- or mod.rate-lIloom. penon
which are p~tlml, It any: b....1! UpOIl the c.n.ua traot wh.n tll.
;.
"
135
1999-33
1870.506
penon relld.1 or ID whlcll tII. bl1lln...
11 loo&t.d. the recipient, In !lIU ot
m&lDt&lnlng "ccrtll Ihowlnr thl por-
oon'l !&mil1 II.. &IIdlncom.. ml1 Iub-
atltute reoortll IhoWlng lither tile per-
oon'l &c1lIr.u .t the tlm. the deter-
mlD&tlon or Incoml It&tUI waa ID&de or
the &delr... or the bl1lln,," provlc1lnr
the lob, .. &ppllclble, the c.nlUl tr&ot
In whlch tb&t Iddre.. w.. 1000tec\, the
pol'Olnt ot pertonl relldlnr III that
tr&ot who .Ith.r &re In pov.rty or Who
are low. &.z:l.d modlrat&-inoome, u ap-
pllc&bl., the d&tl 10urC. UI.d rcr deter-
mlnlDl" the porc.nt&i'1o. Ind . d.OCrlp.
tlon or tho ptrvaal v. povert1 o.nd fon-
er&l d1.tr,al in the oel1.\11 tract In aut.
flol.nt dotlll to d.moOltr&te how till
centUl tract mlt the orlterl& In
I070.:lOl!(&)(4)(v), ... &ppllo&ble.
(8) For e&oh &ctlvlty d.tartnln.d to
&ldln the prev.nUon or .lImlD&t10n ot
tluml or bllrht bll.d on Iddre.e1q one
or more or the oonclltlonl whloll qQ&!1-
l1od. In ..... .. I alu.m or bllrhted &re&:
(I) Th. boundarl.. or tile .......: o.nd
(11) A c1eecrlptlon or the oollclltlolll
...hloh quollflod. thl ...... lot the tlm. or
Ita d"l&'D&tlon I" l..molent detail to
demollltr&te how the ....... mlt the ort-
t.I'1& In 1070.208CbXl).
(9) For ....h relld.lltl&l rehlbllJto.-
tlon IoOtlvlty detertnlned to &ld In thl
prltvent10n or elim1nation ot .huM 01'
bllll11t In & .Ium or bllr11ted ......:
(1) Thl 100&1 deOnltlon or "tub-
Itanducl";
(U) A pr....ll&btllt&tlon InllPlctlon
report d.'crlblni the d.nol.nol.. III
1&011 ttructure to bl ..h&bllltat.d: Uld
11\1) D.t&UI o.nd ocopt ot ODae ....
IIltld ..11lbllltatlon, b1 Itruotur..
(10) For ..oh &ctlVlty determined to
&ld In thl prevlntlon or .Umlnltlon or
alWllll or bllllllt b..ed 011 the 11Im.!-
Il&tlon ot IP.cIClo condltloDl or bll&'ht
or p11Yllo&l d.oLT not loo&t.d In I elwn
or bllrhted lor...:
(I) A d.ecrlptlon or the ep.clClc conc1l-
tlon or bllrht or phyeloll d.o..,. true-
.d; o.nd
(1l1 For rehAbilitation ourle<! out
u.n4er W. oa.terory, & d.eecrtpt1on ot
the Ip.OInO oondltloDl dltrlmellt&l to
publlo h...1 th o.nd IA!llty whloh were
Id'lItlCled &nd thl d.teJla and 100pe ot
the ODne ..lilted rel1abUltatlon b)'
ttructure.
24 CfR Ch. V Cot-l-97 IdIIIon)
(U) ror lo.ch &Otlvlty d..I....IDe<! '"
&101 In the prov.ntloll or .11mlna.t1on or
IIW11I or bllrht bued on &ddreoolng
a1wna or bll&'ht In Ll1 nrh&D reneW&!
....&. & oopy ot the 't1rh&D ReneW&!
Pl&11. ..In Icrlot lot the time the &GU...
IQ' Ia o&n1.d out. IDCI'llclllll" m.;>> ....01
tupportllll" dOOlUDentAtlOD.
(12) For .&011 &Ctlvlty d.t.rmlned. to
milt & oommlUllty d.v.lopm.nt """01
!l&v1ng & pa.rticul&l' urpnar.
(\) DooumentAtlon oono'nlllII" the II&-
ture ancl c1.rree at I.MOllOn... or the
oondltlon requlrlnc &I,I,tanae;
(II) EVld.nce tll&t the reclpl.nt oer-
tlOed. tl1at thl eDBO &OtMty wu de-
IIlll1ecl to &delr... the UJ'i.nt need:
(III) IIltotm& tlon on the tlmlng ot the
d.velopm.nt or the ,.rlOUI oondltlon;
&Ild
(1v) Evldlna. oonClrmtnr that other
tln&nal&l re,ourc.1 to .alleviate tho
noed. ""re not &v&ll&bl..
(c) Reoordo that d.mollltr&te that
the reclpt.nt h&a _dl tho c1lt.rmln&-
tlona required &I .. oonclltlon of eUll1-
blllty ot oertaln &otlvltl.., .. P....
Icr\beclln 11570.201(1), &70.201(1)(2).
fl0.201Ip). flO.201(V, 57Q.203(b)(3).
570.208<0. 570.209, o.nd 570,8~.
(4) Jteoordo whlah <l.emonetr&tt oom-
pll&Do, with 1570.000 rer&rdlng IllY
olWlp Of UN ot re&l prop.rty o.oqu\re4
or Improved ...Ith ODBa ..elltonc..
(.) Rlcorlll th&t d.monltrMe oompU-
&na. ...1th tll. oltlzen pa.rtlclpo.tlon ....
qulrem.ntl pr.lcrtb.d In :l4 01"R put
81. lubpa.rt B. tor entltl.m.ot r.clpi-
.ntl. or In :l4 eYR put 91. lubpa.rt O.
tor HtTD-o.c1rnlnl,tered IJllAU oltl.. ....
olpl.ntl.
en Reoord' whloh d.mon.trat. com-
pllLl10e WIth tho r.qulrem.ntt In
1570.806 l'II'Po1'<IlDr &O~ul'ltlon. cIIeplo.oe-
m.nt. relooatlon. &nd replloO.m.llt
houllng.
(r) Fair houellll" &nd equal oppor-
tunity r.oortll oontalnlnr:
(1) Documento.tlon or the lJlolya\a Of
Impodlmellte a.nd the ""tlone the reolp-
I.nt h.. co.rrIld out ..Ith Ite hOllOlnr
and. oommunitY' development ...n4 other
re.ou.ro.. to remedy 01" am.Uorate &n7
Imp.cllm.ntt to I&Ir houalllr aholce In
the recipient'. community.
(2) D&tA on the ext.nt to whloh e&Oh
ra.ol&l &nd .thnlo rn>I>1l o.nd 0111110-
.~~
130
CI'R ClI.. V (4-1-'17 ~
.011 actl Y1 ty 4attmllne4
:.velltloll or tllm1ll&t1011 :
.~IIt ba..4 011 acl~ .
Irllt III ... lUb... l'eIIewaI
>y at tile 17rb&ll Ren'lr&l
,Utae ae tho time UI. aoct".
:d out. 1IIol11dlnr llI&llI &IIll
.ocnunentatlo.Q.
"'II actlvitY el.cennllle4 co
>lUUlllty 4ev.lo;>mlll.t 11104
'tloul.... wyellOr.
JDt&t1on OOnclminl' the 11...
1m. or ..rJouen... of ~
qUlrln<< ...1.C&.ll0.;
:.11:0' thr.t the reolpl.nt c....
. CDBG r.octVlty W&I 4..
dr... the 1U'isnt lleeel'
;"'tlon on tho tlml". 'ot tIL.
. ot tIL. 1er101l.l oOlldl tlon;
00' oonf1nn1n.. th&t oCher
llOlUCII CO &Uev1..te UI.
,t ..v&llabl.. ..
II thr.t elemonatn.t. th&t
t Ilu m..4a the 4at.rmlna-
.el II a oond.l tlon of .Up-
.rt&1II actlvitl... ... lll'''
1t6'T0~1(t). 670 ~1(1)(2)
670.201('1). 670.ao:l(bX3)'
).a. uel 670.80ll '
:1 wlllch demo~tr&te oom-
h 1670.8OD re..r..r1l1I1" aD7
JI of ro&\ Ill'operty aoql11rt4
wIth CDM ....1._
" th..t ellmonatr&C4l C~Pll'
01 cItizen Pf,rtlolp..tlon .....
prooorlbtd III 24 0ll"1\ po.rt
B. tor Inti tllment roolpl-
If Ont part 81. oubpo.rt O.
nlIl1&t.....el em&ll aI tiel .....
~ whioh elomonlt....C4l com-
.11 UI. requJrementll III
cllnr &oqulol tlon. <I1opl&oo-
oatlon. anel rtp!&oom.nt
110Ulln<< &Del equo.! oppo,,"
<lo oo"t&1nlnr.
olltatlon or the ..II&\y111 or
J &Del thl ..otlonl the recll>-
:rIed out >riCh Ita IIoualn
llty ellvelopment &I1el Oth~
, reml<ly or r.meUorate &D)'
'. CO !&Ir IIoUlI", oholce In
t I oommWllt:v.
" the extent to Whloh e&oll
etlullo ~oup ..nel JlDcI..
Ofc. of AIIt. SKy.. Comm. PlaMIng, o.velop., HUO
157D.107
i~~
';
bea4e4 bouaeholdll (1)T ,,_"r or hou",
hold h.&4) hr.ve a;>plIed tor. partici-
pated In. or benoa teel from. "1lY pro-
lit*'" or actIvity !Uneltcl III "hol. or In
~ with ODBO !UndA. Buob Inlonn...
tlon IIl&ll be UIIed 011~ II a br.oll tor
1Urthor Inv..tl....tlon ... to oompU....o.
with 1l0ncl1lorl:nIIl&Clon requirement..
:10 recipient I. requlnd to ..ttalll or
~t&lJI, aD7 p.,rtloul.... ltael.tlc&\
me&aU%'tl 'Oy ....... ethuJolty. or rend.r
In covered ptoll1"ama.
tal Data on employm.nt III each ot
tIl. reolpl.nt'l ope....tlnr uDlta tIInel.el
III whol. or In pert wltJ1 CDBO tIInel..
with .uoh uta malntAlnod In tJ1. oat-
ISOrI.. pre.orlbeel on tJ1. IIIqu&\ \!lm-
plo~nt Opportunity Oonun\lllon'.
ElIlo--l torm; and elooumentatlon oC an,-
""UOII.I unelertak.n to ......... ellu&l .m.
plo:y.m.nt opportunltle. to all petton.
rerucll... of :0.:1, oolor. lIatloll&l orl-
rtn. .ax or hAncUcap In oper..t1nr un! ta
!und.d In whol. or Ul pr.rt uncler Chi.
part.
(f) Data Illd.lc..tlnr the l'&Oe &Del .th-
nlcltY ot hou.eholcle (..nil. r.ndor oC .In-
..Ie h...dA or houeeholel.) cllopllLO.d ... a
"IUlt or ODSO !Undeel actlVltl.., to-
IrIth.... wlUI tJ1. ..eldr... and O.IIJI'"
cro.ot of the bouainr lIn1t. to whioh
.""h dl.pl&Oed hO...lhold relooated.
Such InlomuLtlon.h&l1 be IIled oIlly ...
a b&l1. for turthlr IlIv..tlPtlon ... to
oomp\lalloe with 1I0nclllOr\ml....tlon re-
Ilulrementa. No reolplellt I. required. to
att&lll Dr m&lntaln ..1lY partlowr.r "...
t1.tlor.1 m....ul'l by 1'&0'. ethnlolty, or
J'lnd.r III oovered proll1"J.Il1'.
(6) Dooum.ntatlon or I.tlona under-
taken to meet tJ1e requirement. of
1$10.IlO'l(b) wbloh Impl.m.nt. eeotlon a
ot thl HOUlI~ D.velopm.nt Act o[
1sea. ... am'lleled (12 I1.S.0. 170!"(ll r.l-
at! v. to th. Illrinll uel t....lnllli oC low
1on4 moden.te Inoom. penolll ..nil. the
..... of 100&1 bu.ln......
Ie) Data Indlcatlnr the :o.:lAliethlllo
oharacter or each b~lSlne.. entit7 l"e-
ol1V1nr a oonttl\Ot or .ulloontrlLOt or
sali.OOO or more po.lel. or to be p&lll. with
CDSO !Uncl.l, uta InelIo..tlnr whioh ot
thOle entitie. a.re women', bue1neaa en-
terprl... .. donneel In Bxeoutl v. Ord.r
1:n38. the amount oC tJ1e cOlltraet or
lubcontr..ct, and. documentation or ~
olplent'. a.mrmltlve "epo to ....ure
thAt minority b\1a1neal a.nd women'l
bUlln..1 ."torprl.e. hl.v. &11 .qual 01>-
portunlty W obtain or oompeta ror COli-
tn.o~ ~ .uboontraclla _ 1tO~ ot
IlIppUee. equipment. oonatrUotlOIl &IllI
IIrvtotl. auoll atnrm&tlVI .tlllI m&3'
lIIolu4a. but ..... Illlt \lnl1ted to. tloll-
lIIoal ....lataDOI open to &\1 bllIlD"'''
but clel1ill.d to .nb&nO' o;>portunltl..
cor tll." .nterprl'" r.II4 .peo\&1 out-
l'Iacll .Uorta to Worm them at 0011-
tor""t opportunl tI.L Such .tape .11&\1
not Ulolucl. prer.rrt", &IlY bualll_ III
tIl. awr.r4 of allY oonUloOt or 11I~
oontr&Ot .01.IT or In part on ~ b&al.
or r&ClI or re~r.
('I) Docum.ntatlon or UI. amrmatlvt
aotlon 1Il'''uro the reclpl.nt hU
tak.n to ov.reollll prior dlaorllllill'"
tloll. wbe.. the oourtl or WD hAve
tOdd th..t the reo1pl.nt hU pl'Ivlo...11
dlaor\lllln&teel ....alnlt pettOM on the
ITOlInel ot n.oe. oolor. !1atlonal orl<<lll
or lex In &drnllll.terllllr .. prorram or
&otlvlty !unclt4 In whole or In part
with CDSO !UndA.
(II) Jlnlonol&\ reoordA. III acoord&!1o,
with the appllcabll l'Iqulremllltl lI.ted
1111670.60'.1. '
(1) Ag1:eem.llta an4 oth.r l'IOordl ro-
Iattel to lumP IlllIl d.l.bunelllAlntl to
Ill'lvate !1nr.nal&1 In.tltutlolll [or t1-
, ll&Ilolnr rehAbUltatlon ... prtllOribld III
1610.61J: and
(j) J\loordl required ~o ~ malntaln.d
111 aooorc\&llOO with other appllo&ble
law. ....4 l'Ii\1latlollJl lit tortll In .ull-
part It of thI. pe.rt.
(MIII"V'l4 by tlll OlIICI of _llImut '"
B\I,q1t under ooDvol awnbet 26O&-OOTl)
[al nt. MtM. Sop\. 8. lUll: sa nt. fll11O, O~ 11,
1981. u amend,d "c eo F& 1818. lQY. JlC.. '1
1m: IlO nt. 5891&. flOY. t. 166: II 1'& 1811'7(.
NIt. 21. 19i8l
IITO.1O'l 1\eperlll.
(a) l'ar[ormClnce Clncl <tllClllIClliOft .....
"ort-{Il Enlllll17ltnl g1C1nl Toclpjdll ClM
HUD-aclmlnlll.".ocl JPMlI olll.. rocl~<III1I
In HClVJ<>li. TIle annl1&l perCOrmanoe r.n4
.valuation report Ihall b. .ublllltted In
o.coorcl&nO' ...1 th 24 on part 81.
(2) HUD-/Jd.lnlnlll.".td Sm4l1 cmu TO-
olpirntJ In Ne1J1 YOT~. Clncl HClWlJII Ttol)ll-
...11 [or fJT.-FY 1995 gTlJnll-(l) Conltnl.
lD&oh pertormo.nco ....el .valuatlo!1 re-
port muat oont&ll1 oompleteel oopl.. of
&II tonnl aneln&rratlvlI prelOrlbod b:v
KUD, Includl~ .. lammr.ry of UI. c1tl~
II~ oo=.nta reoelved on the report.
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1999-33
EXHIBIT "B"
Ofc_ of Asst. Secy., Comm- Planning, Develop., HUD
funds are used to subsidize or guaran-
tee repayment of rehabilitation loans
made with non-CDBG funds. or to pro-
vide a supplemental loan or grant to
the borrower of the non-CDBG funds,
the rehabilitation activities are consid-
ered to be CDBG-assisted activities
subject to the requirements applicable
to such activities. except that repay-
ment of non-CDBG funds shall not be
treated as program income.
(9) Provision of consideration. In con-
sideration for the lump sum deposit by
the recipient in a private financial in-
stitution. the deposit must result in
appropriate benefits in support of the
recipient's local rehabilitation pro-
gram. Minimum requirements for such
benefi ts are:
(i) Grantees shall require the finan-
cial institution to pay interest on the
lump sum deposit.
(A) The interest rate paid by the fi-
nancial institution shall be no more
than three points below the rate on one
year Treasury obligations at constant
maturity.
(B) When an agreement sets a fixed
interest rate for the entire term of the
agreement. the rate should be based on
the rate at the time the agreement is
excuted.
(C) The agreement may provide for
an interest rate that would fluctuate
periodicallY during the term of the
agreement. but at no time shall the
rate be established at more than three
points below the rate on one year
Treasury obligations at constant matu.
rity.
(ii) In addition to the payment of in-
terest. at least one of the following
benefits must be provided by the finan-
cial institution:
(A) Leverage of the deposited funds
so that the financial institution com-
mi ts private funds for loans in the re-
habilitation program in an amount
substantiallY in excess of the amount
of the lump sum deposit;
(B) Commitment of private funds by
the financial institution for rehabilita-
tion loans at below market interest
rates. at higher thf\.n normal risk. or
with longer than normal repayment pe-
riods; or
(el Provision of administrative serv-
ices in support of the rehabilitation
program by the participating financial
5570.600
institution at no cost or at lower than
actual cost.
(c) Program income. Interest earned on
lump sum deposits and payments on
loans made from such deposits are pro-
gram income and, during the period of
the agreement. shall be used for reha-
bilitation activities under the provi-
sions of this section.
(d) Outstanding findings. Notwith-
standing any other provision of this
section, no recipient shall enter into a
new agreement during any period of
time in which an audit or monitoring
finding on a previOUS lump sum
drawdown agreement remains unre-
sol ved.
(e) Prior notification. The recipient
shall provide the HUD field office with
written notification of the amount of
funds to be distributed to a private fi-
nancial instit,ution before distribution
under the provisions of this section.
(D Recordkeeping reqlllrements. The re-
cipient shall maintain in its files a
copy of the written agreement and re-
lated documents establishing conform-
ance with this section and concerning
performance by a financial institution
in accordance with the agr~ement.
subpart K -Other Program
ReqUirements
SOURCE: 53 FR 34456, S.pt. 6, 1988. unless
otherwise noted.
~ 570.600 General.
(a) This subpart K enumerates law5
that the Secretary will treat as appli-
cable to grants made under section 106
of the Act. other than grants to States
made pursuant to section 106(d) of the
Act. for purposes of the Secretary's de-
terminations under section l04(e)(l) of
the Act, including statutes expressly
made applicable by the Act and certain
other'statutes and Executive Orders for
which the Secretary has enforcement
responsibility. This subpart K applies
to grants made under the Insular areas
program in ~570.405, with the exception
of ~ 570.612. The absence of mention
herein of any other statute for which
the Secretary does not have direct en-
forcement responsibility is not in-
tended to be taken as an indication
that. in the Secretary's opinion, such
143
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P-:-~'
1999-33
5570.601
statute or Executive Order is not appli-
cable to activities assisted under the
Act. For laws that the Secretary will
treat as applicable to grants made to
States under section l06(d) of the Act
for purposes of the determination re-
quired to be made by the Secretary
pursuant to section 104(e)(2) of the Act,
see ~ 570.487.
(b) This subpart also sets forth cer-
tain additional program requirements
which the Secretary has determined to
be applicable to grants prOvided under
the Act as a matter of administrative
discretion.
(c) In addition to grants made pursu-
ant to section l06(b) and 106(d)(2)(B) of
the Act (subparts D and F. respec-
tively), the requirements of this sub-
part K are applicable to grants made
pursuant to sections 107 and 119 of the
Act (subparts E and G, respectively),
and to loans guaranteed pursuant to
subpart M.
[53 FR 34456. Sept. 6, 19118, as amended at 61
FR 11477, Mar. 20, 1996]
~570_601 Public Law 88-352 and Public
Law 00-284; affirmatively further-
ing fair housing; Executive Order
11063.
(a) The follOWing requirements apply
according to sections l04(b) and 107 of
the Act:
(1) Public Law 88-352, which is title
VI of the Civil Rights Act of 1964 (42
U.S.C. 2000d et seq.), and implementing
regulations in 24 CFR part 1.
(2) Public Law 90-284. which is the
Fair Housing Act 142 U.S.C. 3601-3620).
In accordance with the Fair Housing
Act, the Secretary reqUires that grant-
ees administer all programs and activi-
ties related to housing and community
development in a manner to affirma-
tively further the poliCies of the Fair
Housing Act. Furthermore, in accord-
ance with section 104(b)(2) of the Act,
for each community receiving a grant
under subpart D of this part, the cer-
tification that the grantee will aff"1rm-
atively further fair housing shall spe-
cifically require the grantee to assume
the responsibility of fair housing plan-
ning by conducting an analysis to iden-
tify impediments to fair housing choice
within its jurisdiction, taking appro-
priate actions to overcome the effects
of any impediments identified through
24 CFR Ch. V (4-1-97 Edition)
Ole. c
that analysis, and maintaining records
reflecting the analysis and actions in
this regard.
(b) Executive Order 11063, as amended
by Executive Order 12259 (3 CFR. 1959-
1963 Compo, p. 652; 3 CFR, 1980 Compo. p.
307) IEqual Opportunity in Housing),
and implementing regulations in 24
CFR part 107, also apply.
[61 FR 1l477, Mar. 20, 1996J
~ 570.602 Section 109 of the Act.
(a) Section 109 of the Act requires
that no person in the United States
shall on the ground of race, color, reli-
gion, national origin or sex, be ex-
cluded from partiCipation in, be denied
the benefits of. or be subjected to dis-
crimination under, any program or ac-
tivity funded in whole or in part with
community development funds made
available pursuant to the Act. For pur-
poses of this section "program or activ-
ity" is defined as any function con-
ducted by an identifiable administra-
tive unit of the reCipient. or by any
unit of government, subrecipient, or
private contractor receiving commu-
nity development funds or loans from
the recipient. "Funded in whole or in
part with community development
funds" means that community develop--
ment funds in any amount in the form
of grants or proceeds from HUD guar-
anteed loans have been transferred by
the recipient or a subrecipient to an
identifiable administrative unit and
disbursed in a program or activity. In
subsection Ib) of this section, "recipi-
ent.' means recipient as defined in 24
CFR 1.2<0.
Ib) SpeCific discriminatory acti ons
prOhibited and corrective actions.
11) A recipient may not. under any
program or actiVity to which the regu-
lations of this part may apply. directly
or through contractual or other ar-
rangements, on the ground of race,
color, religion. national origin, or sex:
(i) Deny any individual any facilities,
services, financial aid or other benefits
provided under the program or activ-
ity.
Iii) Provide any facilities, services,
financial aid or other benefits which
are different, or are provided in a dif-
ferent form, from that provided to oth-
ers under the program or activity.
(Hi)
regate
facili t
relate
efit w
(iv)
in aCt
any a
other:
servic
under
(v)
from
the ir
enrol:
other
the ir
provi!
other
gram
(vi)
tunit
activ'
(2)
or IT.
have
discr:
color
or ha
stant
of th,
tivit)
ticuh
origiJ
(3)
site c
provi
undel
tions
have
from.
subje
the g
tiona
purp'
stant
ment
this'
(4)(
acti1i
with
reci~
agai;
COlOl
or if
clud,
the
firm
fect~
144
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, 1999-33
Ok:. of Asst. Seey., Comm. Planning, Develop., HUD
5570.603
(ill) Subject an individual to seg-
regated or sepa.ra.te treatment in any
facility in. or in any matter of process
related to receipt of any service or ben-
efit under the program or activity.
(iv) Restrict an individual in any way
in access to, or in the enjoyment of,
any advantage or privilege enjoyed by
others in connection with facilities,
services, financial aid or other benefits
under the program or activity.
(v) Treat an individual differently
from others in determining whether
the individual satisfies any admission,
enrollment. eligibility. membership, or
other requirement or condition which
the individual must meet in order to be
provided any fa.cill ties, services or
other benefit provided under the pro-
gram or activity.
(vi) Deny an individual an oppor-
tuni ty to participate in a program or
activity as an employee.
(2) A recipient may not use criteria
or methods of administration which
have the effect of subjecting persons to
discrimination on the basis of race,
color, religion, national origin. or sex,
or have the effect of defeating or sub-
stantially impairing accomplishment
of the objectives of the prqgram or ac-
tivity with respect to persons of a par-
ticular race. color. religion. national
origin, or sex.
(3) A recipient. in determining the
site or location of housing or facilities
provided in whole or in part with funds
under this part. may not make selec-
tions of such site or location which
have the effect of excluding persons
from, denying them the benefits of, or
subjecting them to discrimination on
the ground of race. color, religion, na-
tional origin. or sex: or which have the
purpose or effect of defeating or sub-
stantially impairing the accomplish-
ment of the objectives of the Act and of
this section.
(4)(i) In administering a program or
activity funded in whole or in part
with CDBG funds regarding which the
recipient has previously discriminated
against persons on the ground of race.
color. religion. national origin or sex.
or if there is sufficient evidence to con-
clude that such discrimination existed.
the recipient must take remedial af-
firmative action to overcome the ef-
fects of prior discrimination. The word
-
"previously" does not exclude current
discriminatory practices.
(il) In the absence of discrimina.tion,
a recipient, in administering a program
or activity funded in whole or in part
with funds made available under this
part, may take any nondiscriminatory
affirma.ti ve action necessary to ensure
that the program or activity is open to
all without regard to race. color, reli-
gion, national origin or sex.
(iii) After a finding of noncompliance
or after a recipient has a firm basis to
conclude that discrimination has oc-
curred, a reCipient shall not be prohib-
ited by this section from taking any
action eligible under Subpart C to ame-
liorate an imbalance in services or fa-
cilities provided to any geographic
area or specific group of persons within
its jurisdiction. where the purpose of
such action is to remedy prior dis-
criminatory practice or usage.
(5) Notwithstanding anything to the
contrary in this section, nothing con-
tained herein shall be construed to pro-
hibit any recipient from maintaining
or constructing separate living facili-
ties or rest room facilities for the dif-
ferent sexes. Furthermore, selectivity
on the basis of sex is not prohibited
when institutional or custodial serv-
ices can properly be performed only by
a member of the same sex as the reCipi-
ents of the services.
(c) Section 109 of the Act further pro-
vides that any prohibition against dis-
crimination on the basis of age under
the Age Discrimination Act of 1975 (42
U.S.C. 6101 et seq.) or with respect to an
otherwise qualified handicapped person
as provided in section 504 of the Reha-
bilitation Act of 1973 (29 U.S.C. 794)
shall also apply to any program or ac-
tivity funded in whole or in part with
funds made available pursuant to the
Act. HUD regulations implementing
the Age Discrimination Act are con-
tained in 24 CFR part 146 and the regu-
lations implementing section 504 are
contained in 24 CFR part B.
[53 FR 34456. Sept. 6. 1988. as amended at 60
FR 56916, Nov. 9. 1995]
A 570.603 Labor standards.
(a) Section 110(a) of the Act contains
labor standards that apply to nonvol-
unteer labor financed in whole or in
part with assistance received under the
145
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!l570.604
Act. In accordance with section 110(a)
of the Act. the Contract Work Hours
and Safety Standards Act (40 U.S.C. 327
et seq.) also applies. However, these re-
quirements apply to the rehabilitation
of residential property only if such
property contains not less than 8 units.
Ib) The regulations in 24 CFR part 70
apply to the use of volunteers.
(61 FR 11477, Mar. 20. 1996]
fi 570.604 Environmental standards.
For purposes of section l04(g) of the
Act. the regulations in 24 CFR part 58
specify the other provisions of law
which further the purposes of the Na-
tional Environmental Policy Act of
1969, and the procedures by which
grantees must fulfill their environ-
mental responsibilities, In certain
cases, grantees assume these environ-
mental review, decisionmaking. and
action responsibilities by execution of
grant agreements with the Secretary.
(61 FR 11477, Mar. 20, 1996)
fi 570.605 National Flood Insurance
Program,
Notwithstanding the date of HUD ap-
proval of the recipient's application
(or, in the case of grants made under
subpart D of this part or HUD-adminis-
tered small cities reCipients in HaWaii,
the date of submission of the grantee's
consolidated plan, in accordance with
24 CFR part 91), section 202(a) of the
Flood Disaster Protection Act of 1973
(42 U.S.C. 4106) and the regulations in
44 CFR parts 59 through 79 apply to
funds provided under this part 570.
161 FR 11477, Mar. 20. 19961
fi 570.606 Displacement, relocation, ac-
quisition, and replacement of hous-
ing.
(a) General policy for minimizing dis-
placement. Consistent with the other
goals and objectives of this part, grant-
ees (or States or state recipients. as ap-
plicable) shall assure that they have
taken all reasonable steps to minimize
the displacement of persons (families,
individuals, businesses, nonprofit orga-
nizations, and farms) as a result of ac-
tivities assisted under this part.
(b) Relocation assistance for displaced
persons at URA levels. (1) A displaced
person shall be provided with reloca-
24 CFR Ch. V (4-1-97 Edition)
Ofc
tion assistance at the levels described
in, and in accordance with the require-
ments of 49 CFR part 24, which con-
tains the government-wide regulations
implementing the Uniform Relocation
Assistance and Real Property Acquisi-
tion Policies Act of 1970 (URA) (42
U.S.C. 4601-4655).
(2) Displaced person, (i) For purposes
of paragraph (b) of this section, the
term "displaced person'. means any per-
son (family, individual, business, non-
profit organization, or farm) that
moves from real property, or moves his
or her personal property from real
property, permanently and involuntar-
ily, as a direct result of rehabilitation,
demolition, or acquisition for an activ-
ity assisted under this part. A perma-
nent. involuntary move for an assisted
activity includes a permanent move
from real property that is made:
(A) After notice by the grantee lor
the state recipient, if applicable) to
move permanently from the property.
if the move occurs after the initial offi-
cial submission to HUD (or the State,
as applicable) for grant, loan, or loan
guarantee funds under this part that
are later provided or granted.
IB) After notice by the property
owner to move permanently from the
property, if the move occurs after the
date of the submission of a request for
financial assistance by the property
owner lor person in control of the site)
that is later approved for the requested
activity.
(C) Before the date described in para-
graph (b)(2)(i)(A) or (B) of this section,
if either HUD or the grantee lor State,
as applicable) determines that the dis-
placement directly resulted from ac-
quisition, rehabilitation, or demolition
for the requested activity.
(D) After the "initiation of negotia-
tions" if the person is the tenant-occu-
pant of a dwelling unit and anyone of
the following three si tuations occurs:
(1) The tenant has not been provided
with a reasonable opportunity to lease
and occupy a suitable decent, safe, and
sanitary dwelling in the same buildingl
complex upon the completion of the
project, inclUding a monthly rent that
does not exceed the greater of the ten-
ant's monthly rent and estimated aver-
age utility costs before the initiation
of negotiations or 30 percent of the
h01:
COt:"
(~
ten-
ten
rea.
cur
por
mo'
cat
or
reI<
ten
cor
(~
ane
but
all
inc
(:
par
ter
ch:
(
ba,
tic
occ
pel
St,
mt:
no'
in.
as:'
(
pre
de~
(B
wr:
me
(
de~
(
St.
diE
qu
fO!
pe
in
I
cil
til
er
th
pc
pI.
pr
se
re
146
'.
ltlcin>
:ibed
'.lire-
con-
:ions
~tion
'uisi-
(42
Joses
the
per-
non-
that
s his
real
::!tar-
:ion.
~tiv-
=roa-
:sted
"'lOVe
e (or
) to
=rty.
offi-
:ate,
loan
;;hat
--erty
the
the
~ for
~rty
site)
,sted
Jara-
:ion,
:ate.
dis-
ac-
~t;jon
)tia-
ccu-
:e of
:"5:
ided
ease
and
.:ing/
the
:ha. t
ten-
.ver-
:ion
the
.
1999-33
Ole_ of Asst. Seey., Comm. Planning, Develop., HUD
I
household's average monthly gross in-
come; or
(2) The tenant is required to relocate
temporarily for the activity but the
tenant is not offered payment for all
reasonable out-of-pocket expenses in-
curred in connection with the tem-
porary relocation. including the cost of
moving to and from the temporary lo-
cation and any increased housing costs,
or other conditions of the temporary
relocation are, not reasonable; and the
tenant does not return to the building/
complex; or
(3) The tenant is required to move to
another unit in the building/complex,
but is not offered reimbursement for
all reasonable out-of-pocket expenses
incurred in connection with the move.
(Ii) Notwithstanding the provisions of
paragraph (b)(2)(i) of this section. the
term "displaced person." does not in.
elude:
(A) A person who is evicted for cause
based upon serious or repeated viola.
tions of material terms of the lease or
occupancy agreement. To exclude a
person on this basis, the grantee (or
State or state recipient. as applicable)
must determine that the eviction was
not undertaken for the purpose of evad-
ing the obligation to provide relocation
assistance under this section;
(B) A person who moves into the
property after the date of the notice
described in paragraph (b)(2)(i)(A) or
(B) of this section. but who received a
written notice of the expected displace-
ment before occupancy.
(C) A person who is not displaced as
described in 49 CFR 24.2(g)(2).
(D) A person who the grantee (or
State, as applicable) determines is not
displaced 1l.S a direct result of the ac-
quisition, rehabilitation, or demolition
for an assisted activity. To exclude a
person on this basis. HUD must concur
in that determination.
liii) A grantee (or State or state re-
cipient, as applicable) may, at any
time, request HUD to determine wheth-
er a person is a displaced person under
this section.,
(3) Initiation of nellotiations. For pur-
poses of determining the type of re-
placement housing assistance to be
provided under paragraph (b) of this
section, if the displacement is the di-
rect result of privately undertaken re-
5570.606
habilitation, demolition. or acquisition
of real property, the term "initiation of
nellotiations" means the execution of
the grant or loan agreement between
the grantee (or State or state recipi-
ent. as applicable) and the person own-
ing or controlling the real property.
(c) Residential antidisplacement and re-
location assistance plan. The grantee
shall comply with the requirements of
24 CFR part 42. subpart B.
Id) Optional relocation assistance.
Under section 105(80)(11) of the Act, the
grantee may provide (or the State may
permit the state reCipient to provide,
as applicable) relocation payments and
other relocation assistance to persons
displaced by activities that are not
subject to paragraph (b) or (c) of this
section. The grantee may also provide
lor the State may also permit the state
recipient to provide, as applicable) re-
location assistance to persons receiv-
ing assistance under paragraphs (b) or
(c) of this section at levels in excess of
those required by these paragraphs.
Unless such assistance is provided
under State or local law, the grantee
(or state recipient, as applicable) shall
provide such assistance only upon the
basis of a written determination that
the assistance is appropriate (see, e.g.,
24 CFR 570.201(i), as applicable). The
grantee (or state recipient, as applica-
ble) must adopt a written policy avail-
able to the public that describes the re-
location assistance that the grantee (or
state recipient. as applicable) has
elected to provide and that provides for
equal relocation assistance within each
class of displaced persons.
(e) AcquiSition of real property. The ac-
quisi tion of real property for an as-
sisted activity is subject to 49 CFR
part 24. SUbpart B.
(f) Appeals. If a person disagrees with
the determination of the grantee (or
the state recipient. as applicable) con-
cerning the person's eligibility for. or
the amount of. a relocation payment
under this section, the person may file
a written appeal of that determination
with the grantee (or state recipient, as
applicable). The appeal procedures to
be followed are described in 49 CFR
24.10. In addition. a low- or moderate-
income household that has been dis-
'placed from a dwelling may file a. writ-
ten request for review of the grantee.s
147
1999-33
5570.607
decision to the HUD Field Office. For
purposes of the State CDBG program, a
low- or moderate-income household
may file a written request for review of
the state recipient's decision with the
State.
(g) Responsibility of grantee or State.
(1) The grantee (or State, if applicable)
is responsible for ensuring compliance
with the requirements of this section,
notwithstanding any third party's con-
tractual obligation to the grantee to
comply with the proviSions of this sec-
tion. For purposes of the State CDBG
program. the State shall require state
recipients to certify that they will
comply with the requirements of this
section.
(2) The cost of assistance required
under this section may be paid from
local pUblic funds. funds provided
under this part, or funds available from
other sources.
(3) The grantee (or State and state
recipient, as applicable) must maintain
records in sufficient detail to dem-
onstrate compliance with the provi-
sions of this section.
(Approved by the Office of Management and
Budget under OMB control number 25Oli-{)102)
[61 FR 11477, Mar. 20, 1996, as amended at 61
FR 51760, Oct. 3, 19961
fi570.607 Employment and contracting
OPPortunities.
Grantees shall comply with:
(a) Executive Order 11246, as amended
by Executive Orders 11375, 11478, 12086,
and 12107 (3 CFR, 1964-1965 Comp.. p.339;
3 CFR, 1966-1970 Comp., p. 684; 3 CFR,
1966-1970 Comp" p. 803; 3 CFR, 1978
Comp., p. 230; and 3 CFR. 1978 Comp.. p.
264) (Equal Employment Opportunity)
and the implementing regulations at 41
CFR Chapter 60; and
Ib) Section 3 of the Housing and
Urban Development Act of 1968 (12
U.S.C. 1701u) and implementing regula_
tions at 24 CFR part 135.
161 FR 5209, Feb. 9. 1996J
fi 570.608 Lead-based paint.
(a) Prohibition against the use of lead-
based paint. Section 4011b) of the Lead-
Based Paint Poisoning Prevention Act
(42 U.S.C. 4831(b)) and regulations in 24
CFR part 35. SUbpart B apply to resi-
dential structures constructed or reha-
24 CFR Ch. V (4-1-97 Edition)
Ok
35.
mu. i
tio:
SUI:
to
pre,
35.
(1
plie
sur:
ass:
act:
nit:
gra.;
gra-
(i
leac
pair
(I
(L
(i
(v
isst:
bili
(v
POSt
phy
cab
35.2:
(v
tati
surf
tha:
(2
bili tated wi th assistance prOvided
under this part 570.
(b) NOtification of hazards of lead-based
paint POis011ing. (1) The Secretary has
promulgated reqUirements regarding
notification to purchasers and tenants
of HUD-associated housing constructed
prior to 1978 of the hazards of lead-
based paint poisoning at 24 CFR part
35, subpart A. This paragraph is pro-
mulgated pursuant to the authoriza-
tion granted in 24 CFR 35.5(c) and su-
persedes, with respect to all housing to
which it applies, the notification re-
quirements prescribed by subpart A of
24 CFR part 35.
(2) For properties constructed prior
to 1978, applicants for rehabilitation
assistance provided under this part and
tenants Or purChasers of properties
owned by the grantee or its sub-
recipient and acquired or rehabilitated
with assistance prOvided under this
part shall he notified:
(i) That the property may contain
lead-based paint;
Iii) Of the hazards of lead-based
paint;
(Iii) Of the symptoms and treatment
oflead-based poisoning;
(iv) Of the precautions to be taken to
avoid lead-based paint poisoning (in-
cluding maintenance and removal tech-
niques for eliminating such hazards);
(v) Of the advisability and availabil-
ity of blood lead level screening for
children under seven years of age; and
(vi) That in the event lead-based
paint is found on the property, appro-
priate abatement procedures may be
undertaken.
Ic) Elimination of lead-based paint haz-
arcts. The purpose of this paragraph is
to implement the prOviSions of section
302 of the Lead-Based Paint Poisoning
Prevention Act, 42 U.S.C. 4822, by es-
tablishing procedures to eliminate as
far as practicable the hazards due to
the presence of paint which may con-
tain lead and to which children under
seven years of age may be exposed in
existing housing which is rehabilitated
with assistance provided under this
part. The Secretary has promulgated
requirements regarding the elimi-
nation of lead-based paint hazards in
HUn-associated housing at 24 CFR part
<
non.
surf
"e
pro!
feet
are
seVE
nen
frar:
wor
"I
app:
scal
"I
Exc
con:
whc
leac
gref
"I
surf
tifiE
thal
148
1999-33
:!ion)
Ole. of Asst. Secy., Comm. Planning, Develop., HUD
S 570.608
'.ided
35, subpart C. This paragraph is pro-
mulgated pursuant to the authoriza-
tion granted in 24 CFR 35.24(b)(4) and
supersedes, with respect to all housing
to which it applies, the requirements
prescribed by subpart C of 24 CFR part
35.
11) Applicability. This paragraph ap-
plies to the rehabilitation of applicable
surfaces in existing housing which is
assisted under this part. The following
activities assisted under the Commu-
nity Development Block Grant pro-
gram are not covered by this para-
graph:
(i) Emergency repairs (not including
lead-based paint-related emergency re-
pairs);
(ii) Weatherization;
(iii) Water or sewer hook-ups:
liv) Installation of security devices;
(v) Facilitation of tax exempt bond
issuances which provide funds for reha-
bilitation;
(vi) Other similar types of single-pur-
pose programs that do not include
physical repairs or remodeling of appli-
cable surfaces (as defined in 24 CFR
35.22) of residential structures; and
(vii) Any non-single purpose rehabili-
tation that does not involve applicable
surfaces (as defined in 24 CFR 35.22)
that does not exceed $3,000 per unit.
(2) Definitions.
"Applicable surface. '. All intact and
nonintact interior and exterior painted
surfaces of a residential structure.
"Chewable surface." All chewable
protruding painted surfaces up to five
feet from the floor or ground. which
are readily accessible to children under
seven years of age, e.g.. protruding cor-
ners, windowsills and frames, doors and
frames, and other protruding wood-
work.
"Defective paint surface:' Paint on
applicable surfaces that is cracking,
scaling, chipping, peeling or loose.
"Elevated blood lead level or EBL."
Excessive absorption of lead, that is, a
confirmed concentration of lead in
whole blood of 25 !1g/dl (micrograms of
lead per deciliter of whole blood) or
greater.
"Lead-based paint surface:' A paint
surface, whether or not defective. iden-
tified as having a lead content greater
than or equal to I mg/cm'.
'used
has
-ding
:ants
"cted
:ead-
part
pro--
riza-
.: su-
,g to
: re-
A of
~rior
.tion
and
:ties
sub-
J.ted
:his
,:ain
ased
:lent
:1 to
(in-
~ch-
"
.bil-
for
and
ased
;JrO-
be
"laz-
:l is
:::ion
:ing
es-
as
to
'on-
:der
, in
.ted
~his
.ted
:ru-
in
Jart
(3) Inspection and lesting-{i) Defective
paint surfaces. The grantee shall in-
spect for defective paint surfaces in all
units constructed prior to 1978 which
are occupied by families with children
under seven years of age and which are
proposed for rehabilitation assistance.
The inspection shall occur at the same
time the property is being inspected for
rehabilitation. Defective paint condi-
tions will be included in the work
write-up for the remainder of the reha-
bilitation work.
Iii) Chewable surfaces. The grantee
shall be required to test the lead con-
tent of chewable surfaces if the family
residing in a unit, constructed prior to
1978 and receiving rehabilitation assist-
ance, includes a child under seven
years of age with an identified EBL
condition. Lead content shall be tested
by using an X-ray fluorescence ana-
lyzer (XRF) or other method approved
by HUD. Test readings of 1 mg/cm' or
higher using an XRF shall be consid-
ered positive for presence of lead-based
paint.
(iii) Abatement without testing. In lieu
of the procedures set forth in para-
graph (c)(3)(ii) of this section. in the
case of a residential structure con-
structed prior to 1978, the grantee may
forgo testing and abate all applicable
surfaces in accordance with the meth-
ods set out in 24 CFR 35.24(b )(2)(ii).
(4) Abatement actions. (i) For inspec-
tions performed under ~570.608(c)(3)(i)
and where defective paint surfaces are
found. treatment shall be provided to
defective areas. Treatment shall be
performed before final inspection and
approval of the work.
(ii) For testing performed under
~570.608(c)(3)(ii) and where interior
chewable surfaces are found to contain
lead-based paint, all interior chewable
surfaces in any affected room shall be
treated. Where exterior chewable sur-
faces are found to contain lead-based
paint, the entire exterior chewable sur-
face shall be treated. Treatment shall
be performed before final inspection
and approval of the work.
(iii) When weather prohibits repaint-
ing exterior surfaces before final in-
spection, the grantee may permit the
owner to abate the defective paint or
chewable lead-based paint as required
by this section and agree to repaint by
149
" 1999-33
5570.609
a specified date. A separate inspection
is required.
(5) Abatement methods. At a minimum,
treatment of the defective areas and
chewable lead-based paint surfaces
shall consist of covering or removal of
the painted surface as described in 24
CFR 35.24(b)(2)lii).
(6) Funding for inspection, testing and
abatement. Program requirements and
local program design will determine
whether the cost of inspection, testing
or abatement is to be borne by the
owner/developer. the grantee or a com-
bination of the owner/developer and the
grantee.
(7) Tenant protection. The owner/de-
veloper shall take appropriate action
to protect tenants from hazards associ-
ated with abatement procedures. Where
necessary, these actions may include
the temporary relocation of tenants
during the abatement process. The
owner/developer shall notify the grant-
ee of all such actions taken.
(8) Records. The grantee shall keep a
copy of each inspection and/or test re-
port for at least three years.
(9) Monitoring and enforcement. HUD
field office monitoring of rehabi!i ta-
tion programs includes reviews for
compliance with applicable program
requirements for lead-based paint. The
CPD Field Monitoring Handbook which
currently includes instructions for
monitoring lead-based paint require-
ments will be amended as appropriate.
In cases of noncompliance, HUD may
Impose conditions or sanctions on
grantees to encourage prompt compli-
ance.
(10) Compliance with other program re-
Quirements, Federal, State and local laws.
(i) Other program requirements. To the
extent that assistance from any of the
programs covered by this section is
used in conjunction with other HUD
program assistance which have lead-
based paint requirements which may
have more or less stringent require-
ments, the more stringent reqUire-
ments will prevail.
(il) HUD responsibility. If HUD deter-
mines that a State or local law, ordi-
nance, code or regulation provides for
lead-based paint testing or hazard
abatement in a manner which prOvides
a level of protection from the hazards
of lead-based paint poisoning at least
24 CFR Ch. V (4-1-97 Edition)
COmparable to that provided by the re-
quirements of this section and that ad-
herence to the requirements of this
subpart would be duplicative or other-
wise cause inefficiencies, HUD may
modify or waive the requirements of
this section in such manner as may be
appropriate to promote effiCiency
while ensuring such comparable level
of protection.
(ili) Grantee responsibility. Nothing in
this section is intended to relieve any
gran tee in the programs covered by
this section of any responsibility for
compliance with State or local laws.
ordinances, codes or regulations gov-
erning lead-based paint testing or haz-
ard abatement.
(iv) Disposal of lead-based paint debris.
Lead-based paint and defective paint
debris shall be disposed of in accord-
ance with applicable Federal, State or
local reqUirements. (See e.g.. 40 CFR
parts 260 through 271.)
[53 FR 34456. Sept. 6, 1988: 53 FR 41330, Oct. 21.
1988, as amended at 61 FR 11481, Mar. 20. 1996)
~570.609 Use of debarred, suspended
or ineligible contractors or sub-
recipients.
The reqUirements set forth in 24 CFR
part 5 apply to this program.
[61 FR 5209, Feb. 9. 1996J
~570.610 Uniform administrative re-
quirements and cost principles.
The recipient, its agencies or instru-
mentalities, and subrecipients shall
comply with the policies, guidelines,
and requirements of 24 CFR part 85 and
OMB Circulars A-87, A-110 (imple-
mented at 24 CFR part 84), A-l22, A-l33
(implemented at 24 CFR part 45), and
A-128 , (implemented at 24 CFR part
44), as applicable. as they relate to the
acceptance and use of Federal funds
under this part. The applicable sections
of 24 CFR parts 84 and 85 are set forth
at ~ 570.502.
[60 FR 56916. Nov. 9. 1995J
~ 570.611 Conflict of interest.
(a) Applicability. (1) In the procure-
ment of supplies, equipment, construc-
tion, and services by reCipients and by
subrecipients, the conflict of interest
, See footnote 1 at f570.200(a)(5J.
150
Ofc.c
provi,
84.42.
(2)
CFR
this s
cl ude
real r
sistar:
recipi
and e
ble a
sistar
tion.
vate]
~ 570.2
sistar
other
I ~ 570.2
I (b)
rule
parag
eise (
respo
activ
who,
a del
side
activ
teres
actlv
any
ment
activ
ceed~
ther
whon
fami!
one "
gram
apply
I the t
1 such
\ ing, (
tenu,
(c)
i teres
I this,
! an er
i or el
, of tl:
publ:
that
part.
(d)
Ques
an e
grap
case
met
1999-33
ion)
Ofc. of Assi. Secy., Comm. Planning, Develop., HUD
Ii 570.611
. re-
ad-
~s
ier-
nay
3 of
" be
'ncy
~vel
provisions in 24 CFR 85.36 and 24 CFR
84.42, respectively, shall apply.
(2) In all cases not governed by 24
CFR 85.36 and 84.42. the provisions of
this section shall apply. Such cases in-
clude the acquisition and disposition of
real property and the provision of as-
sistance by the recipient or by its sub-
recipients to individuals, businesses.
and other private entities under eligi-
ble activities that authorize such as-
sistance (e.g.. rehabilitation. preserva-
tion. and other improvements of pri-
vate properties or facilities pursuant to
~570.202; or grants, loans, and other as-
sistance to businesses, individuals. and
other private entities pursuant to
~570.203, 570.204. 570A55. or 570.703(i)).
(b) Conflicts prohibited. The general
rule is that no persons described in
paragraph (c) of this section who exer-
cise or have exercised any functions or
responsibilities with respect to CDBG
activities assisted under this part, or
who are in a position to participate in
a decisionmaking process or gain in-
side information with regard to such
activities, may obtain a financial in-
terest or benefit from a CDBG-assisted
activity. or have a financial interest in
any contract, subcontract. or agree-
ment with respect to a CDBG-assisted
activity, or with respect to the pro-
ceeds of the CDBG-assisted activity, ei-
ther for themselves or those with
whom they have business or immediate
family ties. during their tenure or for
one year thereafter. For the UDAG pro-
gram. the above restrictions shall
apply to all acti vi ties that are a part of
the UDAG project, and shall cover any
such financial interest or benefit dur-
ing. or at any time after. such person's
tenure.
(c) Persons covered. The conflict of in-
terest provisions of paragraph (b) of
this section apply to any person who is
an employee, agent, consultant, officer,
or elected official or appointed official
of the recipient. or of any designated
public agencies. or of subrecipients
that are receiving funds under this
part.
(d) Exceptions. Upon the written re-
quest of the recipient, HUD may grant
an exception to the provisions of para-
graph (b) of this section on a case-by-
case basis when it has satisfactorily
met the threshold requirements of
I
5 in
any
by
for
lWS..
?OV....
:laZ-
jris.
tint
~rd-
-:: or
:FR
:.21.
:996J
:ded
sub-
:FR
re-
";I"U-
iall
::les~
and
,:>le-
-133
and
Jart
the
ends
.ons
Jrth
:u-e-
:"uc-
: by
~est
(d)(l) of this section, taking into ac-
count the cumulative effects of para-
graph (d)(2) of this section.
(1) Threshold requirements. HUD will
consider an exception only after the re-
Cipient has provided the following doc-
umentation:
(i) A disclosure of the nature of the
conflict, accompanied by an assurance
that there has been public disclosure of
the conflict and a description of how
the public disclosure was made; and
(ii) An opinion of the recipient's at-
torney that the interest for which the
exception is sought would not violate
State or local law.
(2) Factors to be considered for excep-
tions. In determining whether to grant
a requested exception after the recipi-
ent has satisfactorily met the require-
ments of paragraph (d)(l) of this sec-
tion. HUD shall conclude that such an
exception will serve to further the pur-
poses of the Act and the effective and
efficient administration of the recipi-
ent's program or project, taking into
account the cumulative effect of the
following factors, as applicable:
(i) Whether the exception would pro-
vide a significant cost benefit or an es-
sential degree of expertise to the pro-
gram or project that would otherwise
not be available;
(ii) Whether an opportunity was pro-
vided for open competitive bidding or
negotiation;
(iii) Whether the person affected is a
member of a group or class of low. or
moderate-income persons intended to
be the beneficiaries of the assisted ac-
tivity, and the exception will permit
such person to receive generally the
same interests or benefits as are being
made available or provided to the
group or class:
(iv) Whether the affected person has
withdrawn from his or her functions or
responsibilities. or the decisionmaking
process wi th respect to the specific as-
sisted activity in question;
(v) Whether the interest or benefit
was present before the affected person
was in a position as described in para-
graph (b) of this section;
(vi) Whether undue hardship will re-
sult either to the recipient or the per-
son affected when weighed against the
public interest served by avoiding the
prohibited conflict: and
151
;
<
,
.
1999-33
5570.612
(vii) Any other relevant consider-
ations.
[60 FR 56916. Nov. 9, 1995J
~570.612 Executive Order 12372.
(a) General. Executive Order 12372,
Intergovernmental Review of Federal
Programs. and the Department's imple-
menting regulations at 24 CFR part 52.
allow each State to establish its own
process for review and comment on
proposed Federal financial assistance
programs.
(b) Applicability. Executive Order
12372 applies to the CDBG Entitlement
program and the UDAG program. The
Executive Order applies to all activi-
ties proposed to be assisted under
UDAG, but it applies to the Entitle-
ment program only where a grantee
proposes to use funds for the planning
or construction (reconstruction or in-
stallation) of water or sewer facilities.
Such facilities include storm sewers as
well as all sanitary sewers, but do not
include water and sewer lines connect-
ing a structure to the lines in the pub-
lic right-of-way or easement. It is the
responsibility of the grantee to initiate
the Executive Order review process if it
proposes to use its CDBG or UDAG
funds for activities subject to review.
~ 570.613 Eligibility restrictions for
certain resident aliens.
(a) Restriction. Certain newly legal-
ized aliens, as described in 24 CFR part
49, are not eligible to apply for benefits
under covered activities funded by the
programs listed in paragraph (e) of this
section. "Benefits" under this section
means financial assistance, public serv-
ices, jobs and access to new or rehabili-
tated housing and other facilities made
available under covered acti vi ties fund-
ed by programs listed in paragraph (e)
of this section. "Benefits" do not in-
clude relocation services and payments
to which displacees are entitled by law.
(b) Covered activities. "Covered activi-
ties" under this section means activi-
ties meeting the requirements of
~ 570.208Ia) that either:
(1) Have income eligibility require-
ments limiting the benefits exclusively
to low and moderate income persons;
or
(2) Are targeted geographically or
otherwise to primarily benefit low and
24 CFR Ch. V (4-1-97 Edition)
moderate income persons (excluding
activities serving the public at large,
such as sewers, roads, sidewalks, and
parks), and that prOVide benefits to
persons on the basis of an application,
(c) Limitation on coverage. The restric-
tions under this section apply only to
applicants for new benefits not being
received by covered resident aliens as
of the effective date of this section.
(d) Compliance. Compliance can be ac-
complished by obtaining certification
as prOvided in 24 CFR 49.20.
(e) Programs affected. (1) The Commu-
nity Development Block Grant pro-
gram for small cities, administered
under subpart F of part 570 of this title
until closeout of the recipient's grant.
(2) The Community Development
Block Grant program for entitlement
grants, administered under subpart D
of part 570 of this ti tIe.
(3) The Community Development
Block Grant program for States, ad-
ministered under subpart I of part 570
of this title until closeout of the unit
of general local government's grant by
the State.
(4) The Urban Development Action
Grants program. administered under
subpart G of part 570 of this title until
closeout of the recipient's grant.
[55 FR 18494, May 2. 1990J
~570.614 Architectural Barriers Act
and the Americans with Disabilities
Act.
(a) The Architectural Barriers Act of
1968 (42 U.S.C. 4151--4157) requires cer-
tain Federal and FederallY funded
bUildings and other facilities to be de-
signed. constructed, or altered in ac-
cordance with standards that insure
accessibility to, and use by. physically
handicapped people. A building or facil-
ity designed, constructed, or altered
with funds allocated or reallocated
under this part after December 11, 1995.
and that meets the definition of "resi-
dential structure" as defined in 24 CFR
40.2 or the defini tion of "building" as
defined in 41 CFR 101-19.602Ia) is sub-
ject to the requirements of the Archi-
tectural Barriers Act of 1968 (42 U.S.C.
4151-4157) and shall comply with the
Uniform Federal Accessibility Stand-
ards (appendix A to 24 CFR part 40 for
residential structures, and appendix A
152
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Ofc. of Asst. Secy., Comm. Planning, Develop., HUe
5570.703
to 41 CFR part 101-19. subpart 101-19.6.
for general t~ buildings).
(b) The Americans with Disabilities
Act (42 U.S.C. 12131; 47 U.S.C. 155. 201.
218 and 225) (ADA) provides comprehen-
sive civil rights to individuals with dis-
abilities in the areas of employment.
public accommodations, State and
local government services. and tele-
communications. It further provides
that discrimination includes a failure
to design and construct facilities for
first occupancy no later than January
26. 1993. that are readily accessible to
and usable by individuals with disabil-
ities. Further. the ADA requires the re-
moval of architectural barriers and
communication barriers that are struc-
tural in nature in existing facilities.
where such removal is readily achiev-
able-that is. easily accomplishable
and able to be carried out without
much difficulty or expense.
[60 FR 56917. Nov. 9. 1995]
subpart L-(Reserved)
subpart M-Loan Guarantees
SOURCE: 59 FR 66604. Dec. 27. 1994. unless
otherwise noted.
A570.700 Purpose.
This subpart contains requirements
governing the guarantee under section
108 of the Act of debt obligations as de-
fined in S 570. 70l.
A570.701 Def"mitions.
Borrower means the public entity or
its designated public agency that is-
sues debt obligations under this sub-
part.
Debt obligation means a promissory
note or other obligation issued by a
public entity or its designated public
agency and guaranteed by HUD under
this subpart. or a trust certificate or
other obligation offered by HUD or by
a trust or other offeror approved for
purposes of this subpart by HUD which
is guaranteed by HUD under this sub-
part and is based on and backed by a
trust or pool composed of notes or
other obligations issued by public enti-
ties or their designated public agencies
and guaranteed or eligible for guaran-
tee by HUD under this subpart.
174-07:) 0-9i---6
Designated publiC agency means a pub-
lic agency designated by a public en-
tity to Issue debt obligations as bor-
rower under this subpart.
Entitlement public entity means a met-
ropolitan city or an urban county re-
ceiving a grant under subpart D of this
part.
Guaranteed loan funds means the pro-
ceeds payable to the borrower from the
issuance of debt obligations under this
subpart.
Nonentitlement public entity means
any unit of general local government
in a nonentitlement area.
Public entity shall have the meaning
provided for the term "Eligible publiC
entity" in section 108(0) of the Act.
State-assisted public entity means a
unit of general local government in a
nonentitlement area which is assisted
by a State as required in ~570.704(b)(9)
and ~570.705(b)(2).
[59 FR 66604. Dec. 27. 1994. as amended at 61
FR 11481. Mar. 20. 1996J
~570.702 Eligible applicants.
The following public entities may
apply for loan guarantee assistance
under this subpart.
(a) Entitlement public entities.
(b) Nonentitlement public entities
that are assisted in the submission of
applications by States that administer
the CDBG program (under subpart I of
this part). Such assistance shall con-
sist. at a minimum. of the certifi-
cations required under S570.704(b)(9)
(and actions pursuant thereto).
(c) Nonentitlement public entities el-
igible to apply for grant assistance
under subpart F of this part.
~ 570.703 Eligible activities.
Guaranteed loan funds may be used
for the following activities. provided
such activities meet the requirements
of S570.200. However. guaranteed loan
funds may not be used to reimburse the
CDBG program account or line of cred-
it for costs incurred by the public en-
tity or designated public agency and
paid with CDBG grant funds or pro-
gram income.
(a) Acquisition of improved or unim-
proved real property in fee or by long-
term lease. including acquisition for
economic development purposes.
153