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HomeMy WebLinkAboutR26- Economic Development Agency ECONOMIC DEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO FROM: Maggie Pacheco,Director SUBJECT:. AUTHORIZATION TO EXECUTE Housing&Community Development THE AGREEMENT BETWEEN GE CAPITAL MORTGAGE SERVICES DATE: February 9, 1999 COPY BERNARDINO CDECONONHC DEVELOPMENT ACTIVITIES Synopsis of Previous Commission/Council/Committee Action(s): On June 1, 1998,the Mayor and Common Council authorized the Economic Development Agency to spend up to $650,000 to assist GE Capital Mortgage Services in the expansion of its facilities, located at 4680 Hallmark Parkway, San Bernardino. Recommended Motion(s): (Mayor and Common Council) MOTION: 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 Contact Person(s): Gary Van Osdel/ Maggie Pacheco Phone: 5081 Project Area(s) Ward(s): Supporting Data Attached: ® Staff Report 0 Resolution(s)©Agreement(s)/Contract(s) 0 Map(s)O Letter/Memo FUNDING REQUIREMENTS Amount: $ 627,000 Source: CDBG-Employment Linkage Fund / Budget Authority: Approved 6-1-98 SIGNATURE: � Gary Vidi Osdel,Executive Di c[or Maggie Maggie Pco,DvectorDvector .. Ecorr6mic Development Agency Housing Community Development Commission/Council Notes: - MP:lag:99-02-15 GE Capital COMMISSION MEETING AGENDA Meeting Date: 02/1511999 Agenda Item Number: ECONOMIC DEVELOPMENT AGENCY STAFF REPORT --------------------------------------------------------------------------------------------------------------------- Authorization To Execute The Agreement Between GE Capital Mortgage Services And The City Of San Bernardino-CDBG Economic Development Employment Linkage Program GE Capital Services(GECS) is a wholly owned subsidiary of General Electric Company(GE). GECS is headquartered in Stamford, Connecticut. GECS is a diversified financial services business with customers and operations throughout the world. The company's network of 28 different financial businesses includes equipment management,consumer financial services, specialized and mid marketing financing and mortgage banking insurance. GE employs over 10,000 employees with an annual payroll and benefits estimated at$300 million. Their annual GE purchases in California are in excess of$1.2 billion(see attached). One of the businesses owned by GECS is GE Capital Mortgage Services headquartered in Cherry Hill, New Jersey. In 1998 GECM employed over 600 people in San Bernardino. GECM specializes in mortgage services such as payment processing and collection services for a variety of mortgage lenders and investors with one million borrowers located throughout the United States. Its business is providing residential financial services and supplying capital and mortgage products to lenders and borrowers. In 1998,GECS approached the City with their plans to consolidate approximately 1,000 of its customer and service loss mitigation employees that were located in three states, Houston, TX; St Louis, MO; and San Bernardino,California. Consequently, GECS opted to consolidate their three businesses and expand the facility at 4680 Hallmark Parkway. The existing facility consists of approximately 102,000 square feet. GECM workforce in San Bernardino has grown significantly in the last two years. The consolidation plans resulted in the retention of 600 jobs and approximately 400 additional new"white collar"jobs with payroll additions estimated at $10 million with an average annual salary of about$30,000. As part of the GECM's expansion plans, they expended about$5 million for additional furniture, fixtures,equipment and facility upgrades. RECOMMENDATION: Accordingly, staff recommends that the Mayor and Common Council adopt the attached Resolution and �authorize execution of the Agreement between the City and GECMS. 6l�/i.zt.�--� Maggie Pac ,Director Housing& on munity Department MP:lag:99-02-15 GE Capital COMMISSION MEETING AGENDA Meeting Date: 02/15/1999 Agenda Item Number: R� +r O (D �■ V O � i = o cn V Q M U W () ° g n 3 - � a L m E ' g nc E F " I nE n g n ms Y m Y < m Q C m U m E E E mU O U ? Z oU GU rt U wU -V E m n E � y E mt. E •V c m� N N °° p v ° E m ° ' c 8 E ° ° u °� a `E E EL.. c to n �_ � �l�'�. i° T•r d U V gp YJ 7 T 68 a 42 o C ANC E'E — U o aAPL p q u 'c m y 3 3 N o v N w c N N v 5ti 3 v ba o E nY � or 0 c n°8i" ^ ° rnL� s N_E °3 0i 8 a oAC o A°' g EL � ' b Lrnrn U, W 22 j L d o°i r wZ _ wZ N Y V Q E m 7 0 c Q r. aLL ELL lLU' j ° Z ° vYE oLL u . d a U) U m N i ` N W f' i cu E c j N d E W C C L � = E f 1 0p 0a) C_ � D. LL = O f6 U a1 W •U dr W^" j C W s tm c � c 10 Z § CL E ° ra E m o . U Q RR/ C Lij o 0 CD a ~_J C C \ O. p C ,U C f0 a3 \\\1\ o Vy � C i 41 r F O U ! 01 W ° N Z n._ w C O C O F- W EO N y .H p N U C W W C-) CD V V y c LL a) CL t C FV � C9 'm Z w J E ._ 0) J z aQ � w H a`0i W � '' ow aag Oa J � � Wy W y z 0) ca N C 'L f in J CO � co N tf cm E C N N O co A Q m U N X N O ca (n c L 0 — (a cu N ~ cn L m p U > O c - �, O z y � — O U w v� �° U a� O O CO Q � 06 � � N � J U Qpa- U (6 d' to � i � Q � Q. i O U O W N U) U Q Q- fl ' t N W W U) v m oM U U j (� (t3 •L O m Z cz co N Q W U Z W W N �- cD cD 0 � 7 k § k ƒ CLo ^ § 0 cu E\ m � � o o � \ c � @ E / § 2 [ u2$ ® g Q e X 2 2 $ ® 7 7 q C ' :0) UJ Q U) o o/ kk f o � G ® m o E & E 2 � o 2 = a \ 5 m � @ o � • J O g o E � ' R � m � G ' 0 E ± @ o o- m a @ \ ) / / / 9 & 2 § 2 7 E o 2 / =3 � 0 � � / o C:':E @ £ 0 2 § _ \ e .? � 2 § \ 7 ° § f W � � \ � / � % ƒ / , / . . , . � O O O + m O O p O N � O t� O O cle CY O O M (f} U u)O � 4_ (6 Q v, U U _ 4- Cl) o 0 0 O co 0 0 U Q — � w L O_ U) U U 4+— O W O c6 O � a U � F v E E W =3 c c :3 W 0 Z Q Q Z C� MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA AGENDA 3 4 February 15, 1999 5 Item: RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF 6 THE CITY OF SAN BERNARDINO AUTHORIZING THE EXECUTION OF AN AGREEMENT WITH GE CAPITAL 7 MORTGAGE SERVICES, INC. AWARDING COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS 8 9 10 Action to be Taken: Adopt Resolution. 11 12 Certified copy of Resolution to be returned to Sabo & Green, A Professional Corporation. 13 15 16 17 18 19 20 21 22 23 24 25 26 28 - 1 - RESOLUTION NO. 2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING 3 THE EXECUTION OF AN AGREEMENT WITH GE CAPITAL MORTGAGE SERVICES, INC. AWARDING 4 COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS 5 6 WHEREAS, the City of San Bernardino is a municipal 7 corporation and charter city (the "City") duly organized and 8 existing pursuant to the Constitution and laws of the State of 9 California; and 10 11 WHEREAS, the Department of Housing and Urban 12 Development has awarded to the City a Community Development 13 Block Grant (CDBG) pursuant to Title I of the Housing and 4 Community Development Act of 1974, as amended (42 U.S .C. 15 • ) and implementing regulations codified at 16 Section 5301, at SgA 17 24 CFR Part 570; and 18 19 WHEREAS, CDBG funds may be used only in furtherance 20 of one of the national objectives of the Department of Housing 21 and Urban Development, including benefit to low and moderate 22 income families; and 23 24 WHEREAS, job creation activities qualify as 25 benefitting low and moderate income families if at least fifty 26 27 one percent (518) of the jobs will be held by, or will be 28 available to, low and moderate-income persons; and - 1 - i WHEREAS, job retention activities qualify as 2 benefitting low and moderate income families if it is 3 demonstrated that the jobs retained would actually be lost 4 without the CDBG assistance and that either or both of the 5 following apply to at least fifty one percent (51%) of the jobs 6 at the time CDBG assistance is provided: the job is known to be 7 held by a low- or moderate-income person or the job can 8 9 reasonably be expected to turn over within the following two 10 years and steps will be taken to ensure that it will be filled 11 by, or made available to, a low- or moderate-income person upon 12 turnover; and 13 WHEREAS, pursuant to 24 CFR Section 570.203 (b) , CDBG 15 funds may be used by the City for special economic development 16 activities including the assistance through grants to private 17 for-profit businesses when such assistance is appropriate to 18 carry out an economic development project; and 19 20 WHEREAS, 24 CFR Section 570.209 sets forth guidelines 21 22 for evaluating and selecting economic development projects, 23 including mandatory standards for evaluating the public benefit 24 of a project; and 25 26 WHEREAS, economic development activities covered by 7 the guidelines must, in the aggregate, create or retain at 28 2 _ least one full-time equivalent, permanent job per Thirty-Five 2 Thousand Dollars ($35, 000 .00) of CDBG funds used; and 3 4 WHEREAS, GE Capital Mortgage Services, Inc. ("GE 5 Capital") , through the expansion of its facilities at 468 6 Hallmark Parkway in the City, desires to consolidate its 7 customer service and loss mitigation departments formerly 8 located in Texas and Missouri at its location in the City; and 9 10 11 WHEREAS, GE Capital has requested financial 12 assistance from the City in connection with the consolidation 13 of certain of its offices in the City; and 4 15 WHEREAS, on June 1, 1998, the Mayor and Common 16 Council authorized the Economic Development Agency of the City 17 of San Bernardino to spend up to Six Hundred Fifty Thousand 18 Dollars ($650, 000) to assist GE Capital with its consolidation 19 efforts in the City; and 20 21 22 WHEREAS, GE Capital at this time is requesting 23 financial assistance in the amount of Six Hundred Twenty Seven 24 Thousand Dollars ($627, 000.00) from the City in connection with 25 its consolidation in the City; and 26 27 28 - 3 - Whereas, the consolidation effected by Subrecipient 2 through the expansion of its Facilities will result in the 3 retention of six hundred (600) jobs and the creation of 4 approximately four hundred (400) jobs in the City; and 5 6 WHEREAS, at least fifty one percent (51%) of the jobs 7 created by the consolidation effected by GE Capital will be 8 9 held by, or made available to, low- and moderate-income 10 persons; and 11 12 WHEREAS, the jobs retained as a result of the 13 consolidation effected by GE Capital of its customer service and loss mitigation departments would have been lost if GE 15 Capital had consolidated its departments at a location outside 16 the City and at least fifty one percent (51%) of such jobs are 17 held by low- or moderate-income persons or can reasonably be 18 expected to turn over within the next two years and at such 19 time will, pursuant to steps taken by GE Capital, be filled by, 20 21 or made available to, low- or moderate-income persons; and 22 23 WHEREAS, the City desires at this time to authorize 24 the execution of an agreement awarding CDBG funds to assist GE 25 Capital in the consolidation of its customer service and loss 26 mitigation departments at its location in the City. '7 28 4 - SPCr; on 1 . The Mayor and. Common Council hereby 2 determine the above recitals to be true and correct as of the 3 date of this Resolution. 4 5 RP tiOn 2 . The Mayor and Common Council hereby 6 approve the Agreement Between the City of San Bernardino and G 7 Capital substantially in the form attached hereto as Exhibit 8 "A" and incorporated herein by this reference (the 9 10 "Agreement") . 11 12 Sa�t; on 3. The Mayor and City Clerk are hereby 13 authorized and directed to execute the Agreement on behalf of 3 the City together with any changes therein as may be approved 15 by the Mayor and the City Attorney. The Mayor or such other 16 authorized representative of the City is further authorized to 17 do any and all things and take any and all actions as may be 18 deemed necessary or advisable to effectuate the purposes of the 19 Agreement. 20 21 22 23 24 25 26 27 28 - 5 - RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING THE EXECUTION OF AN AGREEMENT WITH GE 2 CAPITAL MORTGAGE SERVICES, INC. AWARDING COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS 3 4 Section 4 . This Resolution shall take effect upon 5 the date of its adoption. 6 7 I HEREBY CERTIFY that the foregoing Resolution was 8 duly adopted by the Mayor and Common Council of the City of 9 ]0 San Bernardino at a meeting thereof, held on 11 the day of 1999, by the following vote, to wit: 12 Council Members: AYES NAYS ABSTAIN ESTRADA 13 LIEN McGINNIS 4 SCHNETZ 15 DEVLIN ANDERSON 16 MILLER 17 City Clerk 18 The foregoing resolution is hereby approved this 19 day of 1999 . 20 21 Judith Valles, Mayor City of San Bernardino 22 23 Approved as to form and legal content: 24 G By: 25 City Attorney 26 SBEO/0o01/DOC/3452 27 2/9/99 950 ct 28 - 6 STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO ) ss 2 CITY OF SAN BERNARDINO ) 3 I, City Clerk of the City of 4 San Bernardino, DO HEREBY CERTIFY that the foregoing and attached copy of Mayor and Common Council of the City of 5 San Bernardino Resolution No. is a full, true and correct copy of that now on file in this office. 6 IN WITNESS WHEREOF, I have hereunto set my hand and 7 affixed the official seal of the Mayor and Common Council of the City of San Bernardino this day of 8 1999 . 9 10 City Clerk 11 City of San Bernardino 12 13 15 16 17 18 19 20 21 22 23 24 25 26 7 28 EXHIBIT "A" 2 AGREEMENT BETWEEN REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO 3 AND GE CAPITAL MORTGAGE SERVICES, INC. 4 [TO BE ATTACHED] 5 6 7 8 9 10 11 12 13 4 15 16 17 18 19 20 21 22 23 24 25 26 27 28 AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO and GE CAPITAL MORTGAGE SERVICES INC. (AWARD OF CDBG FUNDS) THIS AGREEMENT (`Agreement") is entered into this _ day of February, 1999 by and between the City of San Bernardino (the "City") and GE Capital Mortgage Services, Inc. , a 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 €t sea• 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 percent low ad modeate income(51%) n of therj jobs will be l amilies held by, ora e will be available 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 assistnce I and that either or both of the following apply o at 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 j 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 i 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 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 thermanentatob per retain at least funds used; full-time equivalent, p j p 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 requested 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 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 (518) 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 (518) 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 Ak'ARD OF FUNDS. The City agrees to award CDBG funds to the Subrecipient in the amount of Six Hundred Twenty Seven Thousand Dollars (5627, 000. 00) to be used by the Subrecipient 2 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 I. 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 REQUIREMENTS 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 . SF TION 8 . gFVERSIpN 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 3 termination and any accounts receivable attributable to the use of CDBG funds . SECTION 9 . INDEMNIFICATION. 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 delivery made by a nationally recognized delivery 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. Attn: Telephone: Facsimile: 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 . SFVERABILITY. In the event that any one or more of the sentences, clauses, paragraphs, or sections 4 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. This Agreement contains the entire understanding and agreement of the parties and supersedes all prior understandings, negotiations and agreements with respect to the subject matter hereof. 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 R O IR D 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. 5 IN WITNESS WHEREOF, the City and Subrecipient have executed this Agreement as of the date first above written. CITY City of San Bernardino, a municipal corporation By: Judith Valles, Mayor ATTEST: City Clerk APPROVED AS TO FORM: Special Counsel SUBRECIPIENT GE Capital Mortgage Services, Inc. , a corporation . By: Its By: Its P:\APPS\WPDATA\SBEO\0001\DOC\3451.WPD �... 6 EXHIBIT "A„ ?4 GR Ch.V (41-47 ltdRlpN _ of/,eat. Sscy., Comm. Plannlrlq, DavaloP•, HUD !670.606 .aeresfter, to 6e Dlaad f71 the, .:y Of taro se0tloa. Any program income an that SC is appropriate to Clings the teas meat's line of credit, This provi,. i• hand whoa the agreement expires, or of the property to a uee which does not applies to program Income oyh noes cad tnvntCr ate thereof hold received after the agreement's expire- qualify under paragraph (0)(1) of trot, eh¢31 be Raid to the teolpisnt as section, SE may retain or dlspode of the :he grantee Lad Su subrecipfentk required by 1570.500(b)(e). property for the ahnged use if the re- m provision shall be applied for the (d) Dlrpodtion of certain Pro fn- ofDleat's CDBG program is reimbursed time at the end of the Drograhi tome received by urban counties. Pro- In the amount of the current fair mar- for which Federal Fiscal you 1998 sitters income derived from urban ooua- set value of the Property, lees say Dot` s are Provided.) ty Program activities undertaken by or Eioa of the value attributable CO ex- Program lnaome on freed at the srlthlt the jurisdiction of s unit of sere- Pend Program of eon-CDBG funds for co- Cf Closeout shall continue to be oral local government which thereafter quldtloa of, and Improvements to, the at to the eligibility requirement terminates SG participation Sn the property. bpart 0 and all other applicable '�- urban county sh¢II continue to be pro- (o) 11 the change of use occurs after dons of this part until t to ex- gram income of the urban county. The closeout, the provisions governing In- d• urban county may transfer the pro- came from the disposition of the real Union otherwise provided in any gram income to the unit of general property in 1570.609(6)(4) or (6), as RP, closeout agreement, and subject local governmeat,upon it$ termination p1lcaDle, shall apply to the uee of funds nqulrements of paragraph (b)(6) of urban county DarclolpatSOn, Dravided reimbursed. s section, income received after that the unit of general local ¢Quern- (d) Following the reimbursement of at shall not be governed by the meat hoe become an entitlement grnP the CDBG Program In accordance with one of this Part, except that, 1t ee and aeraee to uee the Program 1a- paragraph (b) of this section. the Prop- as of 010eeout the reolDfent Came la its own CDBG entitlement Dr0• arty no longer will be subject to any iother ongoing CDBG grant r!- gram. CDBG"quiremenu. directly from RVD, funds re- (03 FR Boss. Mtr. 11. load, u amended at eo (s' DR 6666. Mer. 11, less, as amended at 63 alter closeout shall be treated FR M5,Nov.9,19061 FR 01381,Oct.21,19601 $ram income of the ongoing rogram. 1670.606 Use of real pml?atY. Ig70.500 Records to be maintaine& the reolDfent does not have an- The standards described in this sec- Each reclDlent "I establish and arguing grant received directly ttan apply to real Property within the maintain sufficient records to enable UD at the time of closeout, In• recipient's control which was acquired the escretary to determine whether Waived actor closeout from the or improved in whole or in part using the recipient hen met the requirements .lot of real Property or from CDBG Lands in excess of 32b,000. These of this Dart. At a minimum, the follow- tatandinif at the time of clow- ,ot be governed by the Drovf- standards shall apply from the date Ing records are needed: is Pert, except that such ih- CDBG funds are C1rst §Dent for the be used for activities that property until five years alter closeout Lion )ofeeeach activity ityf". feted(or being .e of the national objectives in ti n entitlement ment CDBG parogram seelisted) with CDBG fords, Including and the eligibility require. or, Sa the entitlement CDBG program Su location (if the activity had a ge0• esoribed in section 105 of the I or, wlch respect to ocher reclDlent$. STa until five years sitar the olosecut of fun the budgeted, obligat do and expended position C the grant from which the "distance to for the activity, and the provision in / pmVram Income M. I the property was provided. V subradvimt4. The written (a) A reafDfeat may not chnge the subpart 0 under which it is eligible. It between the recipient and I use or Planned uee of any such property (b) Records demonstrating that 91011 reciplent, AN required by (Snoluding the beneficiaries of such activity undertaken meet$ ono of the shall $P§Qlfy whether program uee) from that [or which the eoqulei- criteria get forth is 1670.208. (where in- e0eived 11 to be returned to use) or Improvement ich made quiol' formation on income by family aide IN tent or retained by the sub- the recipient provides affected citizens required, the recipient may substitute Whom program income if to with ressonable notice of, and oppcn evidence establishing that the Pardon ad by the subreoiDlent, the tunity to comment on, any proposed "'listed qualifies under another pre t shall specify the activities change End either: BTam having income qualification ori- be undertaken with the pro• .I (1) The new use of ouch property teria ►t least " reeenotl ve as that me and that all provision, of qualifies " meeting area of the na- used Sn the definitions of "low and an agreement shall apply to CSa lif ahJas mss in One (formerly moderate income pardon" and"low and ,end activities. when the sub. 1670601) red is tot a building for the moderate income household° (ae aDPll- reWas Program lnaome, amble) at 4670.3, such " Job Training 1f grant funds by the roof i- general conduit m government; or p I (2) The reauf[emenu is Paragraph (b) Partnership Act th (JTPA) red welfare e sing toDlent §hall be ad- of this section are met. Programs: or the recipient may sub- aiding to the Princlpleo de- (b) If the reclDlent determinae. after statute evidence that the aaeigted per- Paragraphs (6X2) (1) and (1f) consultation with affected citizens, eon A homeless; or the recipient may 133 1 �fff- ;578.506 24 C)Rt Ch.V (41-97 wmeN ( suDetitute a Dopy Of a verifiable oerUfl- llehes tlut it is used predominantly by cation Rom the "gated person that Sow cad moderate persons: or W or her family income does not ex- (111) Data showing the dae and an- osed the applicable income limit estab- nual income of the family of each per. F �. lished in accordaaos with$670.3; or the sun receiving the benefit. molplent may substitute a notice that (4) For each Activity carried out for stteetee noun person local (employment housl it which In determined Improving benefit 16 86 agency or other entity that agrees to low and c d�t Income rsOnl:Agreement refer individuals it determines to be _ based on HUD's rcriteriaend Agneeto ingA CDBG landlord tancedendfaatfng eMe low And theeaµdeterminations.)o Such precords multlfamSlY structure(Assisted and the shall Include the following Informs- n D ebeer by those units which f1laoome Eton: (1) For each activity determined to households attar sseietnce; beasflt low nd moderate income per- (1S)The total Cost of the activity, n- eon, the income limit applied and the oluding both ODBG And non-0DHG point in time when the benefit was de- fund$.For each unit occupied by 16 low wrmined. benefit low And moderate determined ia income Der- size ndincomefof theshousehold� the For each son, based on the area served by the (Iv) For rental housing only: Activity: U) The tent charged (or to be i (11) novmes charaeteri tlon of dwelling unity in v"all itructurs vaa- tamiliee 'ad unrelated Individuals in gated:B) uoh information w aeaeeeal9 to the service aroa;and I (III) If the percent of low nd mod• show or Affordability be occupied)of unite oocu• . Orate income Persons n the service pled (or w be occupied) Dy low nd area is lees thin fil peroent, data chow- moderate income households pursuant ing that the area auallfies under the to the rsolDtentliehd and made yabllo exception criteria set forth at by For each property inquired on 1610.208(L)(1XU). which there are no structures, evidence (3) For each activity determined to bane it low eAnd moderat involves income teria in 116 0,20B(a)(3)uwill be met when fa- cility or service designed for use by a the structures are built; limited clientele Consisting exclusively (vi) Where applicable, records dam- or pmdom(nantly of low and moderate undtntiih that the activity conditions laat income persons: (1) Dooumantation eetbtiehing that 1610.208(a)(3(t); the facility or service is designed for (vii) For any homebuyer ueistnce the partfcular needs of or used exclu- activity ¢uxlifying under 1670301(6), the p ti ulalor e(tltens, adults meet- 570.201(n), or 570.204, Identification of ol ing the Bureau of the Census' Current the applicable eliglbllitY paragraph Population Raporu definition do living with the eligibility crriteria for Activity tthat DrovI- verely disabled:' pe AIDS, battered spouses, abused Chil- sion; for any such activity cualifyfng ! drsn, the homeless. Illiterate adults, or under 1670.208(&), the size and income ( regulation,m4gra provide workers,s for whit can-e Of(vliih For ab 1870.201(k) housing serv- e oerang the extent w which low- and face OMS prof ct Sde xamlat ion that the m(d)rDe-Inoo a perso s;benhnng or ho ng services activity supports,nd y the nature end, If applicable, the loos, evidence that project(s) or seeUtancs i tion of the facility or service satsD- meet the HOME program income i� 134 'fJlo.tlfJS of/oaf. 50.Y,,Comm. pltuinln0, DeveJOP'. MUD (B) A listing by Jab �hichfl tie were U CfR Ch.V (4-1�D7 fdI11dN �- manta at 2S CFB 92.167 mast lobs tilled and ring require to initially held by low sad modest la- :it to used predommaatb ur,. e none:and oderate oderat income persons:or or 9Z.254. aecb activity determined r name pal For each each law sad 10 :a showing the des and aa- pepefft low sad modem Income per- coon hired, the etas and an tf the family of each par- wus paced on the creation of lobe, the Income De roan's family fog the benefit. recipient $hall Dro`ddeitherd Daragr'aDh pool tncnme Person being hired for the each activity carried out for described in prior to the m tioa determined W ,e of Dravlding or improving grhere the reaiDlaat ahocsee to job. For each Activity (b`S')(i) ore of Ghee ipient roast of ( ) blob la detsrrriined to bensfft dctarpaat that at least 51 De retention of Jobe° oderst Income persons: benefit low and moderate income ea Per- the Jobe Will be available to low an was bleed oa the the aDSenpe of Il, o{ a written psa*i Agreement to income persona. documents- I pvidsncs that Sa la mig a developer reaaih- modern CDBG aaeiet0coe lobe worlds a loot: } aaeletencs indicating the Won for earth asafeted busiasee eh►11 in- () lber of dwelling user In sash (il) For each business �aeantdlobeirt-- p1�A�■A copy of a written agreement Ing by Job title of perms .IV structure "stated and the Indicating which of those lobe those units which will be 00' containing: the business tamed, and (where St Se kn . low and moderate lateral (1) A °°nor eta a6lesIt 61 percent of ar• pLr,t., a DBO se- a after assistance; that It Will m WOh srroav►t the time he C rate ,,- come Pe provided, Where applicable, total cost of the activity, Sp- the Jobs aysilable t pill provide dtrain eietaaoe u pr cf the reaolaed loth CDBG end non-CDBG taccme persona e be lag for any of those lobe requiring sD•- Jdeotitication Of those known to aial skills or education: lobs (other then Desome each unit occupied by a low held by Sow ssa a projected l to me per- Skills income household, the (2) A listing b beoDcTeaLed the held) which ,come of the household; sent lobe to Sable to low and which lobe will Da oval which Jobs available to law and t�°urdaover income rental housing only: reono, sad pareone through l CDBD aeelecoaoe e rent charged (or to be moderate Income pa two Years of the time require special skills or education, Se provided. Iatormatlon ,Dan which after assistance for each red JCbe are Par.t•time,it any; and pr°100tione were based unit in each structure aa- (7) A description of actions to be the Job turnover the record; d taken b9 the roclDtent sad business to shall also De Included in reformation O units Oc to ensure that low an (1 moderate income (131) For each retained Job claimed to !ordablllty of units coca- be geld by a low and moderate Income A Person' information on the site and en- be occupied) by loveperooae receive first oondderetion or see lobe: and rn% family: .,,come households pursuant those A listing by Job Carle of the Der` De available ii, a established and made public (iv) For Joe» alalmed Sao me persons rlDisat; man ent lobe tilled, and which Ao mcdf dual Sncoma of a description nom. and a description va t° hued oa Sob turnover, ,ava11- e�ch proyerty wQuSred oa those were available to law as the Stoma turnover, a for !ro are no structures. evidence Brat income De Covering h e to D•,re,graph (b)(6) Of this tmsnta ensuring tbat the Ors- of how ffe0>no faerdthose jobs. Tpe de- able to' 1 570.20e(►)(e) will be met when s such pen $ball Include what hiring section, JaDS were ddmed to be aurae Am built; rnCBBS ,pas used: which low and mod' fl modest• income rare applicable, record° (1010- p through turnover, • lilting of as aco mar lab: and which low and avallaDle to low an er to date, g that the activity ¢w13Iles $rote income pesoru veers Sntetvtewed Job which has toral ov he special conditions at I for a➢ each J whlaIs of those lobs were at, )(2)((), mcdente income pr so at cho se E0 indicating WherehaEaab least 61 pa Cher taken bY. or available to, low ab6 x any homebuyer aseietanoe I do�urrient r d mod- moderate by. persons. For J qualifying under 1570.201(e), oDs ,,,•111 be held by low an ode available. • description of how or 670.201, identlffoatioa o[ the J room, documentation ven to such .issues eligibility paragraph crate Income ➢e Bement ffrot tonoideratton was for esch aeel$t ofDQ ahtten aagrnclua : persons for tboee lobs °g all also De In' that the activity meet• (A) A Copy person 1n the record. oility criteria for that Drool- onntaSning: the busineae (1)For Pur'POaee of dais (bt S)WtB) say such activity qualifying 1 A commitment DY to psi s v of Wit$ 70.208(,,), the sloe and ino=e they at least 51 percent of the JoDa, as stunt a full-time equlva1Ont bade, wffl ire (b)(6)(ii)(C)• (bl(Bxiii) or for w ) amebuyer'e household; and eeotlon, that the person for whom a Job 'or a 1570.701(k) homing eefv- , held by low and moderate Sacome Da win either filled by or made avallabU ivity, identification Of the eons;and yc a law- or modeste-Inoome Caress .olect(s) or aeeeetaace that the (2J A listing by Job title of the Carina" 1ervlcee activity supports, and sent Jobe to be oreated, Identifying bleed upon the census treat where the that Droleat(s) or sa d2taaae I which are P�t1me. If say: it Homm Program income 1,9Jr I !070.so6 u CFR Ch.V (4-1-" NWOM person resides or In which the business (11) For arch setivlty determined Ie L located, the recipient. Sa Its of aid In the prevention or elimnation of e. I maintaining records showing the per- slums or blight based on addressing F son's family size and Income, may sub- class, or blight 1n an urban renewal I stituta records showing either the Der- area, a copy of the Urban Renewal I wn's a=a" at the time the dater- Plan. AS In offset at the time maps and the add""income of the business provtddocumentation- the p dlna' supporting minatiOn Of Job, as applicable, the cansus tract (12) For each activity determined to In which that address was located, the meet 0, eommufiity development need paro•ot of persons residing in that having a pu'ticulsr urgency: tract who either are Sn poverty or who (1) DocumantatSon concerning the ¢►- ara low• and moderate-ln0ome, u aD- bury and degree of eericusness of the pllcable, the data source used for deter- condition requiring aseletaA00; mining the percentage, and a descrip- (it) Evidence that the recipient cer- ticn of the pervasive poverty and gen- tilled that the CDBG activity was ds• Orel distress in the oensas tract in suf- signed to address the urgent need; flofent detail to demonstrate how the (111) Information on the timing of the census tract met the criteria in development of the serious condition; l 570.208(s)(4)(v),as applicable. and (8) For each activity determined to (Sv) Evidence confirming that Other aid in the prevention or elimination of financial resources to Alleviate the ' slum$or blight based on addressing 00e need were not available. ! or more of the conditions which Wait- (c) Records that demonstrate that find so area as a alum or blighted area: the recipient bas made the ditermins. (1)The boundaries of the ores:and tions required as a condition of e11g1- (iU A descriDtton of the conditions billtY of certain activities, as pr" which qualified the area at the time of scribed in IIVO.201(f), 670.201(1)(7), its demonstrate how the area met detail aro 570.201(p), 570.201(q). 570.202(b)(0), tern In rate ow the 670.208((), 670.200, and 570.800. (8) For 0.2W residential rohablllta- (d) Records which demonstrate ecm- tioa activity determined to aid In the pllaaoe with of regarding any prevention or elimination of alums or thailge.of use of real G&aGiGt acquired blight In•alum or blighted area: or improved with CDBG►eelatancs. �i ill The local defloitlon of "sub- (a) Records that demonstrate oompil- see with the citizen participation re- standard";an A pre-rehab111tat1on SaepecLSOa quirerriants prescribed In 24 CFR part 01, subpart B, for entitlement recipt- N report describing the deficiencies In eats. or in 24 CFR part 01. sub Dart 0, each structure to be rehabilitated: and for HUD-administered small cities re- I� (iiD Detail and scope of CDBG aa- cipfeaEe. stated rehabilitation,by structure. (fi Records which demonstrate com- 11 (10) For each activity determined to pliance with the requirements in �A aid In the prevention or elimination of 570 808 regarding acquisition, QSeDlace- !, slum, or blight based on the e11m1- want, relocation, and replacement nation of specific conditions of blight housing. or physical decay hat located la•Blum (g) Fair housing and equal opDOr- .I or blighted area: tunSty records containing: i• (t)A description of the specific condi- tion of blight or physical decay cress Impediments andithe actions the recip- �' ed; and (11) For rehabilitation carried out lent has castled out with Its housing ands[ tale ocondit a a description of rand esources to remedy or ameliorate other any .i the spsclrio ocndlcfane detrimental to impedimenta to fair housing choice in 1E public health and eafaty which were Identified and the details and scope of the recipient's community. the CDBG assisted rehabilitation by rwfal and ethnics group and which singgle- etruoLure. 13G f 670.601 '1 Ofa d Md•fscY•. C Otnm' PlannaW p�va(oq••XUD radar o[house- Da to obtain or ocmpete for con'o .]l.V (41-97 Ltl6baQ rtto LubocacrYee Y NuroY of trac ,oh activity determined M headed ad�eluvl°applied for, partfro. Supplies, egeQal➢men0. uvet'r°steps may IT hold eeyvlosS. SO affirms to. t,oh- yaud m, or baneClNnteQea in who or m not limited :eventlon or ellmlaation of .. tnaluda, but ate w all lowine Lit '.fight based on addressing or activity pal aSSlstaaoe open 0pportuat lghb in as urban renewal with CDBDe�diy Such, be�LO(srfar nl n k a• 04 hot deealgnintewi•Dtlwa attd Special ono- ry of the Vrban Renewal ticn shall be w compliance con- �tfeoL at the time the aotlY- er investigation uirement,, orrfl Shall reach d out, including map and - �� uondleoriminatton req stain oe Car these Lo tnf them ocumantation. !-'` 140 �nleat is requited to etatf eticsl tract °ludo pr St rri 8 am ct r s In as. Nd !lfg iolt or gander not Snoluds Ofei�r preferring on °e a l :ah activity determined to � by r"e ethhnloStY, the award on site basil munity development need 0ontraot solely or is Dart daub[urgency: to covered programs' of race or gender• the affirmatlH infation oon°erning the na- (3) Data 0 , employment in each units grae of seriousness, Of the all recipient's ape with CDS funds, (1) Daanmantatio Erie recipient has Sn whole or to per 1nU.tned in the wa action m•aeutse prior dizOrUnin a qulrins anietsncs; S in th B to overcome D :oe that the recipient car- i with snob data bed °II thCO lee(on'S 61'on�where the r p0 Sent has Previously %a CDBD activity wY de- °Vries aPrOM ortunitY found that the recipient Pomona on the dress the urgent need; ploy none er ken documentation Banal am- discriminated against ainst, ational oriMU nation on the timing of the 890-'1 one ground of race, pro, of the serious condition; actions undertaken op9 tlee to ►ti pen Sa e6rninSet,rtng a D Pctym °�O� or sex dad st whole or to Dart operating unit, activity fun eaa0rdan00 nes confirming that other regardless b race. polar, national o !Sowcee to Alleviate the gin. sex or handicap to ape (h) glnanOtal moordS. to listed Traded to whole or to part under LASE with QDB6 fun e and eth- with the applicable Mal[sment, n,that ne. M, to that demonstrate flat 'Data indicating the ga° °meats and other records t has made the determine. nicity of households(and gander of eta- in{670.6,2• disburSemei t, n ad Y a o°ndltion of s11gi- Cl, heads of halls activities.displaced�o- lstedto lump inetitutfoas Sum ,ruin activities, AS pre- result of CDB(2 fun us, private llaa°°Ss1 scribed fn gather with units to which asnoing tehaDilitatoa u Ore p 670.201(➢, b70.203(U(2), the addren and sew Dr 670.201(q), 570.202(b)(3), houaing maintained tract of Lhe household relocated. {670.6tSao and reaatt'ed t°be +oD, and 6T0.8W. 0s, with other ap011a°u1,_ •hioh demonstrate 0001- Such Snfor'ma6dta etinvestigation�se to Sn1ao dddrII regulations set forth Sa ;610.606 regarding SAY a basis for witA of real property acquired lianas with nondle0rimtmtSan re- laws and re menL and with CDBG Ysity ace. vamrement,. No recipient to particular eta- Dart R of this Office or:wean attain e, ethnioltY, or Bridget under 000=1 number 260E-0aR e that demonstrate eomDli- or maintain any pet' (ADprorsd DY 41920 Oat 21 le citizen participation re- tistical meeiuro DY gr wi, Eept.e.t9s9:62 yA 1068, Jan. e, prescribed in 24 CFR part grader in acvored Programs' late, 19874,ov.1999. La amended aL s,0 �1096; el HA tlOn Of a0t30N Ondei- (pe� 6ea16, N B. for entitlement recipi- I (6) Document'set the requirement, of 190, s,0 YA 14 CM part 91, subpart C, taken to whleh implements Section 3 Apr 20,lose] nlateterad small altfes re- {570s0T(D) Development Act Of 670.607 Of the Rousing uation ra- a which demonstrate cam- 1998, as amended (12 D.8.C. 1701 of low { prman" and a++a1 eau and and training (a) Farr ant r.j j ative to the luring 1) Entitle nee° T recipient[ fthe requirements dIs 1a aderate Income per,ana and the [ding acquisition,dleplsca- and m HUD-administered performsncs and cation, and replacement use of local Duicati es,, admfnlatered small cicW (6) Data indicating the rae!sl)echnlo in Hawaii. The evaluation report°CFADDa ubmitted Sa part 91. lousing and equal OVPOl character of each tract o¢osontraowi`h Lcporda"I with 24 aft Coal re- do a contra id or to be paid, (2) HVDwdaMtn Wtered 301 _ oonts]ning: or more pal which of York, and Hawaii rectpt entatfon of the analysis of I CDSa funds, data indicating L(yimU In New t Content•an' enG lo* pre-FY 1995 prams—(cat°n aSad the notions the reciP- those entities are women's business iv der erforrnsnee and aura es of -ried out with its housing terprleee M defined in Bxeccontraptdor uet contain eomDleted 10D1 oh D RLy development and other 12108 the amount of Llr art m and narrLEivas Preaorlbed by remedy or ameliorate any subcontract, and documents ionaf "' pj11 forme a e¢mrnary Of the alt' s to fair housing choice in I aiDtent's Lffnrms. step women's 1fi1D, including art• tae oommuniEY• 8noritY business and son comment°rooetved vn the rep that m have an equal op- a the extent to which each puslnees enterprl see ethnlo group and "Is- 131 NJ MIBIT ' B" 570.600 o . of Asst. Sety., Comm. Planning, Develop.. HUD § ft funds are used to subsidize or guamn- institution at no cost or at lower than tee repayment of rehabilitation loans actual cost. made with non-CDBG funds. or to pro- (c) Program income. Interest earned on the borrower of the loan or g funds, loans made from such deposits are pro- the rehabilitation activities are consid- gram income and, during the period of ered to be CDBG-assisted activities the agreement, shall be used for reha- sublect to the requirements applicable bilitation activities under the provi- I such activities, except that repay- sions Of this section- findings. Notwith- to i ment of non-CDBG funds shall fiat be treated as program income. standing any other provision of this • (g) Provision of consideration. In con- section, no recipient shall enter into o a new sideration for the lump sum deposit by time in which t period of an audit or monitoring the recipient in a private financial in- finding sum deposit must result in on a previous lump t appro ria the dep support of the drawdown agreement remains unre- appropriate benefits in rehabilitation solved. recipient's local requirements for Dro- (e) Prior notification. The recipient e gram. Minimum requirements for such d benefits are: shall provide the HUD field office with (i) Grantees shall require the finan- written notification of the amount of d cial institution to pay interest on the funds to be distributed to a private ti- lump sum deposit- nancial institution before distribution ,t I the fi- ll (A) The interest rate paid by under Recordkeeping requirerrientstThe re- 11 institution shall be to more oipient shall maintain in its files a than three points below the rate on one copy of the written agreement and re- 11 year Treasury obligations at constant maturity. lated documents establishing conform- 'n agreement sets a £axed ante with this section and concerning o_ (B) When an a.g performance by a financial institution o_ interest rate for the entire term of the in accordance with the agreement. s_( agreement, the rate should be based is {err I the rate at the time the agreement is i; 1e excuted. Subpart K—Other Program t; to (C) The agreement may provide for Requirements �f Id fluctuate th I an interest rate that wou is vn periodically during the term of the 56• Sept. 6. 1988, unless SOURCE: 53 FR 344 ,. agreement, but at no time shall the otherwise noted. en rate be established at more than three §570.600 General. ' xw points below the rate on one year 1w I Treasury obligations at constant matu- (a) This subpart K enumerates laws )in nd rity. ants made under section 106 at- (ii) In addition to the payment of in that the Secretary will treat as aPP - terest, at least one of the following cable to grants benefits must of the Act, other than grants States t be provided by the finan- ;he made pursuant to section 106(dd) of the Be- cial institution: purposes of the Secretary's de- an_ (A) Leverage of the deposited funds Act, for p P m- including statutes expressly so that the financial institution tom- terminations under section 104(e)(1) of ed- I mits private funds for loans in the re the Act, a i habilitation program in an amount made applicable by the Act and certain nt r a substantially in excess of the amount whichsthe Secretary enforceml es c on I of the lump sum deposit; . to (B) Commitment of private funds by responsibility. This subpart r a ted the financial institution for rehabilita- to grants made under the Insular areas ;ise lien loans at below market interest program in §570.405, with the exception au- I rates, at higher than normal risk, or of §570. tatute for which 612. The absence of mention with longer than normal repayment pe- herein of any other s 911, the Secretary does not have direct en- is riods: or �on- (C) Provision of administrative serv- forcement responsibility is not in- i I ices in support of habilitation tended to be taken as an the re indication it program by the participating financial that, in the Secretary's opinion. such 143 i I §570.601 24 CFR Ch. V (4-1-97 Edition) Oft. C statute or Executive Order is not appli- that analysis, and maintaining records (iii) cable to activities assisted under the reflecting the analysis and actions in relate Act. For laws that the Secretary will this regard. faeilit treat as applicable to grants made to (b) Executive Order 11063, as amended relate States under section 106(d) of the Act by Executive Order 12259 (3 CFR, 1959- efit u: for purposes of the determination re- 1963 Comp., p. 652: 3 CFR, 1980 Comp., P. (iv) quired to be made by the Secretary 307) (Equal Opportunity in Housing), I in as pursuant to section 104(e)(2) of the Act, and implementing regulations in 24 any r see §570.487. CFR part 107, also apply. (b) This subpart also sets forth cer- servi( tain additional program requirements (61 FR 11477, Mar. 20, 19961 under which the Secretary has determined to §570.602 Section 109 of the Act. (v) be applicable to grants provided under from the Act as a matter of administrative (a) Section 109 of the Act requires the ii discretion. that no person in the United States enrol (c) In addition to grants made pursu- shall on the ground of race, color, reli- other ant to section 106(b) and 106(d)(2)(B) of gion, national origin or sex, be ex- the ii the Act (subparts D and F, respec- cluded from participation in, be denied I provi tively), the requirements of this sub- the benefits of, or be subjected to dis- othe3 part K are applicable to grants made crimination under, any program or ac- I grarr pursuant to sections 107 and 119 of the tivity funded in whole or in part with (vi Act (subparts E and G, respectively), community development funds made tunic and to loans guaranteed pursuant to available pursuant to the Act. For pur- actiN subpart M. poses of this section "program or activ- (2) ity" is defined as any function con- or r (53 FR 34456, Sept. 6, 1966, as amended at 81 ducted by an identifiable administra- have FR 11477, Mar. 20. 1996) tive unit of the recipient, or by any disci §570.601 Public Law 88-352 and Public unit of government, subrecipient, or colo. / Law 90-284; 'af£rmatively further- private contractor receiving commu- i or h ing fair housing; Executive Order nity development funds or loans from stan 11063. the recipient. "Funded in whole or in of t) (a) The following requirements apply part with community development tivil according to sections 104(b) and 107 of funds" means that community develop- ticu the Act: ment funds in any amount in the form orig (1) Public Law 88-352, which is title of grants or proceeds from HUD guar- I (3. VI of the Civil Rights Act of 1964 (42 anteed loans have been transferred by site U.S.C. 2000d et seq.), and implementing the recipient or a subrecipient to an pro, regulations in 24 CFR part 1. identifiable administrative unit and i and (2) Public Law 90-284, which is the disbursed in a program or activity. In tior Fair Housing Act (42 U.S.C. 3601-3620). subsection (b) of this section, "recipi- hav In accordance with the Fair Housing ent" means recipient as defined in 24 frot Act, the Secretary requires that grant- CFR 1.2(f). sub ees administer all programs and activi- (b) Specific discriminatory actions the ties related to housing and community prohibited and corrective actions. tioi development in a manner to affirma- (1) A recipient may not, under any pur tively further the policies of the Fair Program or activity to which the regu- sta Housing Act. Furthermore, in accord- lations of this part may apply, directly me ante with section 104(b)(2) of the Act, or through contractual or other ar- thi for each community receiving a grant rangements, on the ground of race, under subpart D of this part, the cer- color, religion, national origin, or sex: act tification that the grantee will affirm- M Deny any individual any facilities, wig,, atively further fair housing shall spe- services, financial aid or other benefits - re( cifically require the grantee to assume provided under the program or activ- ag the responsibility of fair housing plan- ity. co ning by conducting an analysis to iden- (ii) Provide any facilities, services, or tify impediments to fair housing choice financial aid or other benefits which ell within its jurisdiction, taking appro- are different, or are provided in a dif- th priate actions to overcome the effects ferent form, from that provided to oth- j fir of any impediments identified through ers under the program or activity. i fe, 144 M. of A3d. may„ Comm. Planning, Develop., HUD §570.603 ) "previously" does not exclude current - s (iii) Subject an individual to seg- discriminatory practices. z I regated or separate treatment in any a recipient, in administering a program facility in, or in any matter of process (ii) In the absence of discrimination. d i related to or of any service or ben- or activity funded in whole or in Dart with funds made available under this of(i under the program or activity. may take any nondiscriminatory (iv) Restrict r individual m any of, Part, in access to, or in the enjoyment affirmative action necessary is open ensure o 4 I any advantage or privilege enjoyed by that the program or activity .i others in connection with facilities, all without regard to race, color, reli- services, financial aid or other benefits gion national origin or sex. under the program or activity. (iii) After a finding of noncompliance (v) Treat an individual differently or after a recipient has a firm basis to from others in determining whether conclude that discrimination has oc- es the individual satisfies any admission, culled, a recipient shall not be Prohib- es enrollment, eligibility, membership, or ited by this section from taking any .i- other requirement or condition which action eligible under Subpart C to eme- x- the individual must meet in order to be liorate an imbalance in services or fa- ad provided any facilities, services or cilities Provided to any geographic s- other benefit provided under the Pro- area or specific wherof persons s wit of .c- ' am or activity. its jurisdiction, prior dis- individual an oppor- th � (vi) Deny an such action is to remedy P de tunity to participate in a program or criminatory practice or usage. ; to ee. (5) Notwithstanding anything to the s- activity an emp Y in this section, v- I (2) A recipient may not use criteria contrary nothing Con- n- or methods of administration which mined herein shall be construed to pro- .a- have the effect of subjecting Persons to hibit any recipient from maintaining ay ' discrimination on the basis of race, or constructing separate living facili- ties or rest room facilities for the dif- ' or color, religion, national origin, or sex, ferent sexes. Furthermore, selectivity .u- or have the effect of defeating or sub- fe the basis of sex is not prohibited )m stantially impairing accomplishment on am or ac- when institutional or custodial serv- in I of the objectives of the Prggr ices can properly be performed only by nt tivity with respect to persons of a par- )p- ticular race, color, religion, national a member of the same sex as the recipi- i m I origin, or sex. ents of the services. 1 in determining the c Section 109 of the Act further pro- in(3) A recipient, de prohibition against dis- by site or location of housing or facilities ,rides that any P crimination on the basis of age under an provided in whole a in Dart with funds the Age Discrimination Act of 1975 (42 nd under this Part, may not make which U.S.C. 6101 et seq.) or with respect person on In Lions h such site or location er on otherwise qualified handicapped Person pi- have the effect of excluding P ,� 24 I from, denying them the benefits of, or as provided in section 504 of the . 794) subjecting them to discrimination on bilitation Act of 1973 (29 U.S.C. 794) +1 ' color, religion, 111- shall also apply to any program or ac- ' ,ns the ground of race, tluity funded in whole or in part with 1 tional origin, or sex: or which have the ny purpose or effect of defeating or sub- funds made available pursuant to the ;u- sta Itially impairing the accomplish- Act. HUD regulations implementing i In- the Age Discrimination Act are con- Cly ment of the objectives of the Act and of tained in 24 CFR part 146 and the regu- 3r- this section. ro ce a ram or(4)(i) In administering program lotions implementing section 50 are e activity funded in whole or in part contained in 24 CFR Part B. es, j with CDBG funds regarding which the [53 FR its i recipient has Previously discriminated R 56916. Sept. Nov.9, 199511988, m amended at 60 against persons on the ground of race, iv- national origin or sex, color, religion, 8570.603 Labor standards. es, or if there is sufficient evidence to con- a Section 110(x) of the Act contains ch elude that such discrimination existed. ( > to nonvol- iif- � the recipient must take remedial at- labor standards that apply li firmative action to overcome the ef- unteer labor financed in whole or in fects of prior discrimination. The word Part with assistance received under the i 145 ;1 §570.604 24 CFR Ch. V (4-1-97 Edition) Ofc Act. In accordance with section 110(a) tion assistance at the levels described hoL of the Act, the Contract Work Hours in, and in accordance with the require- cor and Safety Standards Act (40 U.S.C. 327 menns of 49 CFR part 24, which con- (: et seq.) also applies. However, these re- tains the government-wide regulations ) ten quirements apply to the rehabilitation implementing the Uniform Relocation ten of residential property only if such Assistance and Real Property Acquisi- rea property contains not less than 8 units. tion Policies Act of 1970 (URA) (42 cur (b) The regulations in 24 CFR part 70 U.S.C. 460111655). pot apply to the use of volunteers. (2) Displaced person. (i) For purposes Inc 161 FR 11477, Mar.20, 1996] of paragraph (b) of this section, the cat term "displaced person" means any per- or $570.604 Environmental standards. son (family, individual, business, non- rel For purposes of section 104(8) of the profit organization, or farm) that ter Act, the regulations in 24 CFR part 58 moves from real property, or moves his col specify the other provisions of law or her personal property from real which further the purposes of the Na- property, permanently and involuntar- an ily, as a direct result of rehabilitation, bu tional Environmental Policy Act of demolition, or acquisition for an activ- I all 1969, and the procedures by which ity assisted under this part. A perma- in grantees must fulfill their environ- nent, involuntary move for an assisted mental responsibilities. In certain activity includes a permanent move - pa cases, grantees assume these environ- from real property that is made: to mental review, decisionmaking, and (A) After notice by the grantee (or c1 action responsibilities by execution of the state recipient, if applicable) to s nts with the Secretary. gr ant agreements move permanently from the property, be [61 FR 11477, Mar.20, 1996] if the move occurs after the initial offi- ti $570.606 National Flood Insurance cial submission to HUD (or the State, I 0( m. as applicable) for grant, loan, or loan P( Program. guarantee funds under this part that S Notwithstanding the date of HUD ap- are later provided or granted. rr proval of the recipient's application (B) After notice by the property n (or, in the case of grants made under owner to move permanently from the it subpart D of this part or HUD-adminis- property, if the move occurs after the a tered small cities recipients in Hawaii, date of the submission of a request for the date of submission of the grantee's financial assistance by the property I p consolidated plan, in accordance with owner (or person in control of the site) d 24 CFR part 91), section 202(a) of the that is later approved for the requested Flood Disaster Protection Act of 1973 activity. V T, (42 U.S.C. 4106) and the regulations in (C) Before the date described in pars- r 44 CFR parts 59 through 79 apply to graph (b)(2)(i)(A) or (B) of this section, funds provided under this part 570. if either HUD or the grantee (or State, [61 FR 11477, Mar.20, 1996] as applicable) determines that the dis- placement directly resulted from ac- $670.606 Displacement, relocation, ac- quisition, rehabilitation, or demolition quisition, and replacement of hous- for the requested activity. ing. (D) After the "initiation of negotia- '?,- (a) General policy for minimizing dis- tions" if the person is the tenant-occu- placement. Consistent with the other pant of a dwelling unit and any one of goals and objectives of this part, grant- the following three situations occurs: ees (or States or state recipients, as ap- (1) The tenant has not been provided plicable) shall assure that they have with a reasonable opportunity to lease I taken all reasonable steps to minimize ' and occupy a suitable decent, safe, and i the displacement of persons (families, sanitary dwelling in the same building/ individuals, businesses, nonprofit orga- complex upon the completion of the nizations, and farms) as a result of ac- project, including a monthly rent that tivities assisted under this part• does not exceed the greater of the ten- (b) Relocation assistance for displaced ant's monthly rent and estimated aver- persons at URA levels. (1) A displaced age utility costs before the initiation i person shall be provided with reloca- of negotiations or 30 percent of the 146 I fitlon) Ofc. of Asst. Sect'., Comm. Planning, Develop., HUD §570.606 i household's average monthly gross in- habilitation, demolition, or acquisition rj of real property, the term "initiation of u� come: or the execution of cow (2) The tenant is required to relocate negotiations" means agreement between Ltions temporarily for the activity but the the granteer(or State or state recipi- •ation tenant is not offered payment for all the gran quisi- reasonable out-of-pocket expenses in- ent,m or applicable) and the person awn- ) (42 curred in connection including the coat of (c) Residential anthdisPtacement and re- porary relocation, lo_ location assistance plan. The grantee poses moving to and from the temporary with the requirements of cation and any increased housing costs, shall comply i, the 24 CFR part 42, subpart B. y per_ I or other conditions of the temporary non- relocation are not reasonable; and the (d) Options[ relocation assistance. that tenant does not return to the building/ gT nteedmay provide (or he State may es his complex; or real (3) The tenant is required to move to permit the state recipient to provide, mom._ another unit in the building/complex, as applicable) relocation payments and ation, but is not offered reimbursement for other relocation assistance to persons activ- all reasonable out-of-pocket expenses displaced by activities that are not erma_ incurred in connection with the move. subject to paragraph a or (c) of this ,sisted (ii)Notwithstanding the provisions section.oothe State maytalso permit the state move paragraph (b)(2)(i) of this section, licable) re- term "displaced person does not in- location ass stan ee to as receiv- es (or clude: Is) to (A) A person upon is evicted for cause repeated viola- (cg oassistance his section at levels in excess of petty, i tions of material terms of the lease or those required by these paragraphs. .1 offi- agreement. To exclude a Unless such assistance is provided State, occupancy anted (or under State or local law, the grantee loan person on this basis, the gr State or state recipient, as aDPlicable) (or state recipient, as applicable) shall must determine that the eviction was provide such assistance only upon the not undertaken for the purpose of evad- basis of a written determination oee, e.g., m the ing the obligation to provide relocation 24 CFRs570 201(5), as applicable). The er the assistance under this section; hca- ist for I (B) A person who moves into the grantee (or state recipient, li y a )perty property after the date of the notice ble) must adopt a written policy the site) described in paragraph (b)(2)(i)(A) or able to the public that describes the re- described wBntten nloticetof the expected displace- state iorecipient cdashaappli applicable) - ment before occupancy. pars elected to provide and that provides for :ction, (C) A person who is not displaced as equal as of displaced persons.assistance within each State, described in 49 CFR 24.2(8)(2)• is dis- (D) A person whdetermines is not qusition of l real property rfor an d as - m ac- State, as applicable) Aition displaced as a direct result of the ac- sisted activity is subject to 49 CFR quisition, rehabilitation, or demolition part 24, subpart B. disagrees disagrees with •gotta- for n assisted activity. To exclude a (f) Appeals. -occu- person on this basis, HUD must concur the s ate�rec ination of the recipient, as applicable) con- one of in that determination. (iii) A grantee (or State or state re- the mount ofsa relocation tpayment urs:ovided cipient, as applicable) may, at any lease I time, request HUD to determine wheth- under this section, the person may file 'e, and I er a person is a displaced person under withlthe grantee (or that statedetermination recipient, as ilding/ this section.. The appeal of the 1plttdeterminng negotiations. the typeFor of re- be followed are described�nd49dCFR t that poses Le ten- I placement housing assistance to be income In addition, a low- a moderate- Le _ f provided under paragraph (b) of this income household that has been dis- I section, if the displacement is the di- placed from a dwelling may file awrit- rect result of privately undertaken re- ten request for review of the grantee's 147 i i §570.607 24 CFR Ch. V (4-1-97 Edition) Of decision to the HUD Field Office. For bilitated with assistance provided 35. purposes of the State CDBG program, a under this part 570. ml low- or moderate-income household (b) Notification of hazards of Lead-based ! tic may file a written request for review of paint poisoning. (1) The Secretary has I su- the state recipient's decision with the promulgated requirements regarding I to State. notification to purchasers and tenants pr` (g) Responsibility of grantee or State. of HUD-associated housing constructed 1 35. (1) The grantee (or State, if applicable) prior to 1978 of the hazards of lead- ' is responsible for ensuring compliance based paint poisoning at 24 CFR part pl= with the requirements of this section, 35 subpart A. This paragraph is pro- su notwithstanding any third party's con- mul ated as tractual obligation to the grantee to g Pursuant F the authorize- ac Lion granted in 24 CFR 35.5(c) and su- comply with the provisions of this sec- persedes, with respect to all housing to I ni' tion. For purposes of the State CDBG which it applies, the notification re- gr program, the State shall require state gr recipients to certify that they will quirements prescribed by subpart A of comply with the requirements of this 24 CFR part 35. le: section. (2) For properties constructed prior pa (2) The cost of assistance required to 1978, applicants for rehabilitation under this section may be paid from assistance provided under this part and local public funds, funds provided tenants or purchasers of properties under this part, or funds available from owned by the grantee or its sub- other sources. recipient and acquired or rehabilitated (3) The grantee (or State and state with assistance provided under this is. recipient, as applicable) must maintain part shall be notified: bi records in sufficient detail to dem- (i) That the property may contain i onstrate compliance with the provi- lead-based paint; P< pl sions of this section. (ii) Of the hazards of lead-based U (Approved by the Office of Management and Paint; 35 Budget under OMB control number 2506-0102) (iii) Of the symptoms and treatment 161 FR Mar. 20, 1996, as amended at 61 of lead-based poisoning; t FR 51760,0, Oct.Oc 3, 19961 (iv) Of the precautions to be taken to sl avoid lead-based paint poisoning (in- tl §570.607 Employment and contracting cluding maintenance and removal tech- opportunities. niques for eliminating such hazards); Grantees shall comply with: (v) Of the advisability and availabil- n, (a) Executive Order 11246, as amended ity of blood lead level screening for s, by Executive Orders 11375, 11478, 12086, children under seven years of age; and and 12107 (3 CFR, 1964-1965 Comp., p.339; NO That in the event lead-based p 3 CFR, 1966-1970 Comp., p. 684; 3 CFR, paint is found on the property, appro- f( 1966-1970 Comp., p. 803; 3 CFR, 1978 priate abatement procedures may be a Comp., P. 230; and 3 CPR, 1978 Comp., p. undertaken. I s, 264) (Equal Employment Opportunity) (c) Elimination of lead-based paint haz- n and the implementing regulations at 41 ards. The purpose of this paragraph is f] CFR chapter 60; and to implement the provisions of section w (b) Section 3 of the Housing and 302 of the Lead-Based Paint Poisoning Urban Development Act of 1968 (12 Prevention Act, 42 U.S.C. 4822, by es- a U.S.C. 1701u) and implementing regula- tablishing procedures to eliminate as s tions at 24 CFR part 135. far as practicable the hazards due to (61 FR 5209, Feb. 9. 19961 the presence of paint which may con- 1 §570.608 Lead-based aint tain lead and to which children under c P seven years of age may be exposed in v (a) Prohibition against the use of lead- existing housing which is rehabilitated 1 based paint. Section 401(b) of the Lead- with assistance provided under this € Based Paint Poisoning Prevention Act part. The Secretary has promulgated (42 U.S.C. 4831(b)) and regulations in 24 requirements regarding the elimi- CFR part 35, subpart B apply to resi- nation of lead-based paint hazards in l dential structures constructed or reha- HUD-associated housing at 24 CFR part 148 'Mon) ofc. of Asst. Secy., Comm. Planning, Develop., HUD §570.608 vid 35, subpart C. This paragraph is pro- (3) Inspection and testing--W Defective mulgated pursuant to the authoriza- paint surfaces. The grantee shall in- based tion granted in 24 CFR 35.24(b)(4) and spect for defective paint surfaces in all has I supersedes, with respect to all housing units constructed prior to 1979 which rding to which it applies, the requirements are occupied by families with children of age nanta prescribed by subpart C of 24 CFR Dart under roposed for yrehabilitati n and which assistan ee ucted ( 35. The inspection shall occur at the same led- (1) Applicability. This paragraph ap- inspected for part plies to the rehabilitation of applicable time the property f being pain pro- surfaces in existing housing which is onn will rehabilitation.be included inasthe cwo k miza- i assisted under this part. The following A su- activities assisted under the Commu- write-up for the remainder of the reha- .ng to nity Development Block Grant pro- bilitation work. gr n re- gram are not covered by this pare- shall Chewable test heele dacon- A of graph:(i) Emergency rep tent of chewable surfaces if the family airs (not including residing in a unit, constructed prior to prior lead-based paint-related emergency re- 1978 and receiving rehabilitation assist- pairs); ance, includes a child under seven t and i (ii) Weatherization: years of age with an identified EBL ernes (iii) Water or sewer hook-ups: condition. Lead content shall be tested (iv)Installation of security devices; by using an X-ray fluorescence ana- sub- tsub- (v) Facilitation of tax exempt bond lyzer (XRF) or other method approved this issuances which provide funds for reha- by HUD. Test readings of 1 mg/cm2 or bilitation: higher using an XRF shall be consid- ntain I (vi) Other similar types of single-pur- ered positive for presence of lead-based pose programs that do not include paint. as physical repairs or remodeling of appli- (iii) Abatement without testing. In lieu b cable surfaces (as defined in 24 CFR of the procedures set forth in para- 35.22) of residential structures; and graph (c)(3)(ii) of this section, in the m (vii) Any non-single purpose rehabfli- case of a residential structure con- tation that does not involve applicable structed prior to 1978, the grantee may :en to surfaces (as defined in 24 CFR 35.22) forgo testing and abate all applicable (in- that does not exceed$3,000 per unit. surfaces in accordance with the meth- tech- (2) Definitions. ods set out in 24 CFR 35.24(b)(2)(ii). is); "Applicable surface." All intact and (4) Abatement actions. (i) For inspec- .labil- nonintact interior and exterior painted tions performed under 4570.608(c)(3)(i) .g for surfaces of a residential structure. and where defective paint surfaces are j and "Chewable surface." All chewable found, treatment shall be provided to based protruding painted surfaces up to five defective areas. Treatment shall be 6ppro- feet from the floor or ground, which performed before final inspection and ry be I are readily accessible to children under approval of the work. seven years of age, e.g., protruding cor- (ii) For testing performed under t haz- ners, windowsills and frames, doors and §570.608(c)(3)(ii) and where interior Lph is frames, and other protruding wood- chewable surfaces are found to contain !ction work. lead-based paint, all interior chewable oning "Defective paint surface." Paint on surfaces in any affected room shall be )y es- applicable surfaces that is cracking, treated. Where exterior chewable sur- .te as scaling, chipping, peeling or loose. faces are found to contain lead-based us to I "Elevated blood lead level or EBL." paint, the entire exterior chewable sur- con- Excessive absorption of lead, that is, a face shall be treated. Treatment shall under I confirmed concentration of lead in be performed before final inspection ed in whole blood of 25 µg!dl (micrograms of and approval of the work. tated lead per deciliter of whole blood) or (iii) When weather prohibits repaint- this greater. ing exterior surfaces before final in- gated "Lead-based paint surface." A paint spection, the grantee may permit the -lir surface, whether or not defective, id en- owner to abate the defective paint or -based paint as required d� tified as having a lead content greater chewable lead p than or equal to 1 mg/cm2. by this section and agree to repaint by 149 Z. j §570.609 21 CFR Ch. V (4-1-97 Edition) ac• a specified date. A separate inspection comparable to that provided by the re- provi quirements of this section and that ad- 84.42. is required. (5) Abatement methods. herence to the requirements of this (2) treatment of the defective a minimum,areas and subpart would be duplicative or other- Lh R chewable lead-based paint surfaces wise cause inefficiencies, HUD may shall consist of covering or removal of modify or waive the requirements of cludE the painted surface as described in 24 appropriate in such manner as may be real CFR 35.24(b)(2)(ii). (6) Funding for inspection, testing and while ensuring such comparable level andF abatement. Program requirements and of protection. ' local program design will determine (iii) Grantee responsibility. Nothing in ble whether the cost of inspection, testing this section is intended to relieve any sista or abatement is to be borne by the grantee in the programs covered by tiom owner/developer, the grantee or a com- this section of any responsibility for vats bination of the owner/developer and the compliance with State or local laws, §570_ ordinances, codes or regulations gov- sista grantee. erning lead-based paint testing or haz- othe (7) Tenant protection. The owner/de- ardabatement. §570 veloper shall take appropriate action d-based paint debris. (b to protect tenants from hazards associ- (iv) Disposal of lea ated with abatement procedures. Where Lead-based paint and defective paint I rule necessary, these actions may include debris shall be disposed of in accord- par the temporary relocation of tenants ance with applicable Federal, State or cise during the abatement process. The local requirements. (See e.g., 40 CFR i resl i owner/developer shall notify the grant- parts 260 through 271.) ci w hc ee of all such actions taken. 153 FR 34456, Sept.6, 1988; 53 FR 41330, Oct. 21, a d (8) Records. The grantee shall keep a 1988, as amended at 61 FR 11481. Mar. 20. 1996) aid( copy of each inspection and/or test re- §570.608 Use of debarred, suspended act port for at least three years. (9) Monitoring and enforcement. HUD or ineligible contractors or sub- ter recipients. act field office monitoring of rehabilita- tion an; lion programs includes reviews views for for The requirements set forth in 24 CFR i�' me compliance with applicable program part 5 apply to this program. acs requirements for lead-based paint. The 161 FR 5209, Feb.9, 19961 cei CPD Field Monitoring Handbook which th currently includes instructions for §570.610 Uniform administrative re- wl monitoring lead-based paint require- quirements and cost principles. fa: ments will be amended as appropriate. The recipient, its agencies or instru- or In cases of noncompliance, HUD may mentalities, and subrecipients shall gr impose conditions or sanctions on comply with the policies, guidelines, al grantees to encourage prompt compy- and requirements of 24 CFR part 85 and tl ance. OMB Circulars A-37, A-110 (imple- sl (10) Compliance with other program re- mentad at 24 CFR part 84), A-122, A-133 I it quirements, Federal, State and local laws. (implemented at 24 CFR part 45), and tf (i) Other program requirements. To the A-1282 (implemented at 24 CFR part extent that assistance from any of the 44), as applicable, as they relate to the ti programs covered by this section is acceptance and use of Federal funds t: used in conjunction with other HUD under this part. The applicable sections a program assistance which have lead- of 24 CFR parts 84 and 85 are set forth i c based paint requirements which may at §570.502. t have more or less stringent require- 160 FR 56916,Nov.9. 19951 1 ments, the more stringent require- ments will prevail. §570.611 Conflict of interest. ) (ii) HUD responsibility. If HUD deter- (a) Applicability. (1) In the procure- nance, code or regulation provides for mines that a State local law, ordi- ment of supplies, equipment, construc- tion,paint testing or hazard tion, and services by recipients and by abatement in a manner which provides subrecipients, the conflict of interest a level of protection from the hazards of lead-based paint poisoning at least 2 See footnote 1 at§570.200(a)(5). 150 i on) Ofc. of Assi. SecY•, Comm. Planning, Develop., HUD 9570.611 re- provisions in 24 CPR 85.36 and 24 CPR chant of this section. effects o tPa c- ad- 84.42. respectively, shall apply. this CPR 85.36 and cases the provisions of �(1)hThreshold this requirements. HUD will zer- nay this section shall apply. Such cases in- consider an exception only after the ra- n of cludeptoear y and the provision disposition of amentatooBrovided the following doc-acquisit101a and be be real pro er the recipient or by its sub (i) A disclosure of the nature oft e ,ncy evel andpother private entities under eligi- that there has been public disclosure of In sistancev(elgg. rehatillitatione pr serva- the public disclosure was made; and ow and a description of any by Lion, and other improvements of pri- a(ii) An opinion of the recipient's a -torney for vats acilities othertas-exceptione the sought would not violate aws, §570.202; or gov- sistance to businesses. individuals, and State or loco law. haz- other private entities pursuant to tions. In determining nwhether to grant §570.203, 570.204, 570.-155, or 570.703(i)). !bris. (b) Conflicts prohibited. The general a requested exception after the recire- )o d I paragraph (c) of thisssectionswhoeexer- ment ofaparagraphy(d)(1) ofe this usec- ;e or cise or have exercised any functions or Lion, HUD shall conclude that such an CPR i re tons ilities with reap ct to CDBG posestof thelAct rand the r effective and :c.21. I who are in a position ing process or gain Participate in- en6 seprogra administration Project(taking into 19961 s decisionmaking P /^` side information with regard to such account the cumulative effect oft the ad( activities, may obtain a financial in following factors, as applicable: s! teresttor or have a financial lnterest in vide a sign ffcant cost benefit t or an es- CPR any contract, subcontract, or agree- gram l de project that would otherwise ment with respect to a CDBG-assisted gram or p j t activity, or with respect to the pro- not( i) Whether an opportunity was pro- ceeds of the CDBG-assisted activity, ei- ( ) re- they for themselves or those with vided for open competitive bidding or whom they have business or immediate negotiation; stru- family ties, during their tenure or for (iii) Whether the person affected is a l member of a group or class of low- or shall gram, thereafter. For the restrictions Gshall moderate incomeies of the assisted c- lines, apply to all activities that are a part of be the beneficiaries of the assisted ac- s and the UDAG project, and shall cover any tivity, and the exception will permit mple- such financial interest or benefit dur- such person to receive generally the A-133 inch or at cia time after, such Person's same interests or benefits de are being and I made available or provided to the Pmt tenure. (c) Persons covered. The conflict of in- group or class; o the terest provisions of paragraph (b) of (iv) Whether the affected person has funds i this section aDP1Y to any Person who is withdrawn from his or her functions or :tions an employee, agent, consultant. officer, responsibilities, or the decisionmaking c as forth I or elected official or appointed official process with respect to the specifi - of the recipient• or of any designated sisted activity in question;Whether the thatica ee receiving or fundsnunderlthis wasp re .s before the affected person was in a position as described in para- part. )Cure- (d) Exceptions. Upon the written re- graph (b) of this section: re duq aneexception rto the provisions� aof parat suit leitherttor the d recipient or the 1per- rod graph (b) of this section on a ofpara- son affected when weighed against the case basis when it has satisfactorily public interest served by avoiding the met the threshold requirements of prohibited conflict: and 151 24 CFR Ch. V (4-1-97 Edition) Ofe. 6570.612 (vii) Any other relevant consider- moderate income persons (excluding i to 41 activities serving the public at large, for(bg, ations. such as sewers, roads. Act sidewalks, and [60 FR 56916.Nov. 9, 19951 parks), and that provide benefits to Ac §570.612 Executive order 12372. persons on the basis of an application. 218 a (c) Limitation on coverage. The restric- sive (a) General. Executive Order 12372, tions under this section apply only to abili Intergovernmental Review of Federal applicants for new benefits not being publ Programs, and the Department's imple- received by covered resident aliens as I loca menting regulations at 24 CFR part 52, of the effective date of this section. that allow each State to establish its own (d) Compliance. Compliance can be ac- process for review and comment on complished by obtaining certification to proposed Federal financial assistance provided in 24 CFR 49.20. firs programs. (e) Programs affected. (1) The Commu- (b) Applicability. Executive Order and nity Development Block Grant pro- and 12372 applies to the CDBG Entitlement am for small cities, administered me program and the UDAG program. The under subpart F of part 570 of this title i Executive Order applies to all activi- col ties proposed to be assisted under until closeout of the recipient's grant. I tu, UDAG, but it applies to the Entitle- (2) The Community Development wl went but only where a grantee Block Grant program for entitlement ab proposes to use funds for the planning grants, administered under subpart D ar or construction (reconstruction or in- of part 570 of this title. m stallation) of water or sewer facilities. (3) The Community Development such facilities include storm sewers as Block Grant program for States, ad- [64 well as all sanitary sewers, but do not ministered under subpart I of part 570 include water and sewer lines connect- of this title until closeout of the unit ing a structure to the lines in the pub- of general local government's grant by lic right-of-way or easement. It is the the State. grantee responsibility of the to initiate (4) The Urban Development Action the Executive Order review process if it Grants program, administered under i proposes to use its CDBG or UDAG subpart G of part 570 of this title until C funds for activities subject to review. closeout of the recipient's grant. + §570.613 Eligibility restrictions for [55 FR 18494, May 2, 19901 certain resident aliens. �•I (a) Restriction. Certain newly legal- §570.614 Architectural Barriers Act and the Americans with Disabilities ized aliens, as described in 24 CFR part Act 49, are not eligible to apply for benefits under covered activities funded by the (a) The Architectural Barriers Act of programs listed in paragraph (e) of this 1968 (42 U.S.C. 4151-4157) requires cer- section. "Benefits" under this section lain Federal and Federally funded means financial assistance, public serv- buildings and other facilities to be de- ices. jobs and access to new or rehabili- signed, constructed, or altered in ac- tated housing and other facilities made cordance with standards that insure available under covered activities fund- handicapped people A use by,building Physically acil- ed by programs listed in paragraph (e) ity designed, constructed, or altered of this section. "Benefits" do no payments with funds allocated or reallocated elude relocation services and 1995, to which displacees are entitled by law. under this part after December 11, (b) Covered activities. "Covered activi- and that meets the definition of "resi- ties" under this section means activi- dential structure" as defined in 24 CFR ties meeting the requirements of de nedt ne 41 definition of CFR 101-19.602(a) is gsub- , §570.208(a) that either: (1) Have income eligibility require- ject to the requirements of the Archi- ments limiting the benefits exclusively tectural Barriers Act of 1968 (42 U.S.C. 1 to low and moderate income Persons: 4151-4157) Uniform Federal Ac Accessibility 1 Stand- or (2) Are targeted geographically or rest (appendix c ur s, CFR Part di for otherwise to primarily benefit low and residential structures, and appendix A 152 I 7:1M . Ofe• of Aast• may, Comm. Planning, Develop., HUD §570.7D3 (odic.., to 41 CFR part 101-19, subpart 101-19.6, Designated Public agency means public en- buildings)• lie agency designated by a public en- large. for general type with Disabilities City to issue debt obligations as bor- and (b) The Americans 47 U.S.C. 155, 201, rower under this bentity means a met- its to Act (42 U.S.C. 12131TOVides comprehen- Entitlement public :ation. 218 and 225) (ADA) P ant under subpart D of this estric- r sive civil rights to individuals with di ce vin§ as gray or an urban coon y r - nly to abilities in the areas of employment, and part• being public accommodations, able to the borrower from the sbe as I local government accommodations services, and tale- Guaranteed loan Iun� means the pro- be' I communications. It further provides ceeds payable i be ac- that discrimi aconstruct facilities or subpart of debt op b icioentity under r cation to design ° no later than January Nonentitlement public first occupancy )mmu- 26, 1993, that are readily accessible to any unit ti general local government t pro- and usable by individuals with disabil- in a nonentitlement area-Eligible Public istered hies. Further, the ADA requires the re- Public entity shall have the meaning is title moval of architect. that axe true- provided i for ection 108(0 of the Ace ns a grant. communication barriers facilities, State-assisted public entity 1pment tural in nature in existing I where such removal is readily achiev- unit. of general local government n a cement easily accomplishable nonentitlement area which is assisted part D able—that is, required in §570.704(b)( ) and able to be carried out without and§570.705(b)(2) pment much difficulty or expense. (59 FR 66604• Dec. 27, 1994. as amended at 61 m ad- (60 FR 56917,Nov.9. 19951 Fp,11481,Mar. 20. 1996) in 570 .e unit I Subpart L—(Reserved) §570.702 Eligible applicants' The following public entities may i ar I Loan Guarantees guarantee assistance Subpart M— apply for loan gn Ac._ under this subpart. under (a) Entitlement public entities.entities e until 1 Souace: 59 FR 666°4• Dec. 27, 1994. unless (b) Nonentitlement Public otherwise noted. 'I that are assisted submission of §670.700 PurP°Se• applications by under subpart I of This subpart contains requirements the CDBG program Act ' the guarantee under section this part). Such assistance shall con- governing of the certifi- bilities I 108 of the Act of debt obligations as de- list, at a minimum, 570.704(b)(9) fined in §570.701. cations required under § Act of tinny (and actions pursuant thereto). es car- §570.701 Definitions-• ublic entity or (c) Nonentitlement public entities el- funded I Borrower means the p igible to apply for grant assistance be de- its designated public agency that is- under subpart F of this part. in ac- sues debt obligations under this sub- §570.703 Eligible activities. insure part. romissory be used •sically Debt obligation means a P Guaranteed loan funds may provided by a -r facil- note or other obligation issued public for the following activities, altered public entity or its designated p guaranteed loan located agency and guaranteed by HUD under such activities meet the ratitd to requirements funds may not be used to reimburse the .1, 1995, this subpart, or a trust certificate or of §57may However, f "resi- I other obligation offered by HUD or by D which it for costs incurred by the public en- 24 CFR a trust or other offeror approved for CDBG program account or line of cre - .ng" as purposes of this subpart by IiIJ id with CDBG grant funds or pro- is sub- is guaranteed by HUD under this sub- paid or designated public agency an Archi- - part and is based on and backed by a gram income. U.S.C. trust or pool composed of notes or gram e other obligations issued by public enti- (a) Acquisition et improved or unim- acies term lease, including acquisition for ties or their designated public agencies proved real property in fee or by ong- t ... -or and guaranteed r eligible for Bu economic development purposes. ,ndix A tee by HUD under this subpart. 153 17N1'1 0-97--6 C I T Y OF S A N B E R N A R D I N O INTEROFFICE MEMORANDUM CITY CLERK'S OFFICE DATE: February 22, 1999 TO: Gary Van Osdel, Executive Director, EDA Revitalization FROM: Josie Alvarez, Account Clerk III/Liens SUBJECT: Transmittal for signature - Res 99-33 COPIES : file ------------------------------------------------------------------ Attached are the following: Original one (1) original agreement and 1 duplicate original agreement between the City of San Bernardino and GE Capital Mortgage Services, Inc. (Award of CDBG Funds) awarding Community Development Block Grant Funds. Please obtain signatures where indicated on all copies. Please return the executed original to the City Clerk' s office as soon as possible, to my attention. If you have any questions, please do not hesitate to contact me at ex. 3114 . Thank you. Rachel Clark City Clerk By Josie Alvarez I hereby acknowledge receipt of the above mentioned documents. Signed: Date : Resolution/memo contracts C I T Y OF S A N B E R N A R D I N O INTEROFFICE MEMORANDUM CITY CLERK' S OFFICE DATE: February 22, 1999 TO: Gary Van Osdel, Executive Director, EDA FROM: Josie Alvarez, Account Clerk III/Liens SUBJECT: Transmittal for signature - Res 99-33 COPIES: file Attached are the following: Original one (1) original agreement and 1 duplicate original agreement between the City of San Bernardino and GE Capital Mortgage Services, Inc. (Award of CDBG Funds) awarding Community Development Block Grant Funds . Please obtain signatures where indicated on all copies. Please return the executed original to the City Clerk' s office as soon as possible, to my attention. If you have any questions, please do not hesitate to contact me at ex. 3114 . Thank you. Rachel Clark City Clerk By Josie Alvarez I hereby acknowledge receipt of the above mentioned documents . Signed: / N (o.�.�- o/ ;/t t� Date: a - ?- 2 - Jn 2 Resolution/memo contracts