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ELECTRONIC CODE OF FEDERAL REGULATIONS
e-CFR Data is current as of February 2, 2014
Title 24: Housing and Urban Development
PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS
Subpart C—Eligible Activities
§570.202 Eligible rehabilitation and preservation activities.
(a) Types of buildings and improvements eligible for rehabilitation assistance. CDBG funds may
be used to finance the rehabilitation of:
(1) Privately owned buildings and improvements for residential purposes; improvements to a
single-family residential property which is also used as a place of business, which are required in order
to operate the business, need not be considered to be rehabilitation of a commercial or industrial
building, if the improvements also provide general benefit to the residential occupants of the building;
(2) Low-income public housing and other publicly owned residential buildings and improvements;
(3) Publicly or privately owned commercial or industrial buildings, except that the rehabilitation of
such buildings owned by a private for -profit business is limited to improvement to the exterior of the
building, abatement of asbestos hazards, lead -based paint hazard evaluation and reduction, and the
correction of code violations;
(4) Nonprofit -owned nonresidential buildings and improvements not eligible under §570.201(c); and
(5) Manufactured housing when such housing constitutes part of the community's permanent
housing stock.
(b) Types of assistance. CDBG funds may be used to finance the following types of rehabilitation
activities, and related costs, either singly, or in combination, through the use of grants, loans, loan
guarantees, interest supplements, or other means for buildings and improvements described in
paragraph (a) of this section, except that rehabilitation of commercial or industrial buildings is limited as
described in paragraph (a)(3) of this section.
(1) Assistance to private individuals and entities, including profit making and nonprofit
organizations, to acquire for the purpose of rehabilitation, and to rehabilitate properties, for use or
resale for residential purposes;
(2) Labor, materials, and other costs of rehabilitation of properties, including repair directed toward
an accumulation of deferred maintenance, replacement of principal fixtures and components of existing
structures, installation of security devices, including smoke detectors and dead bolt locks, and
renovation through alterations, additions to, or enhancement of existing structures and improvements,
abatement of asbestos hazards (and other contaminants) in buildings and improvements that may be
undertaken singly, or in combination;
(3) Loans for refinancing existing indebtedness secured by a property being rehabilitated with
CDBG funds if such financing is determined by the recipient to be necessary or appropriate to achieve
the locality's community development objectives;
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(4) Improvements to increase the efficient use of energy in structures through such means as
installation of storm windows and doors, siding, wall and attic insulation, and conversion, modification,
or replacement of heating and cooling equipment, including the use of solar energy equipment;
(5) Improvements to increase the efficient use of water through such means as water savings
faucets and shower heads and repair of water leaks;
(6) Connection of residential structures to water distribution lines or local sewer collection lines;
(7) For rehabilitation carried out with CDBG funds, costs of:
(i) Initial homeowner warranty premiums;
(ii) Hazard insurance premiums, except where assistance is provided in the form of a grant; and
(iii) Flood insurance premiums for properties covered by the Flood Disaster Protection Act of 1973,
pursuant to §570.605.
(8) Costs of acquiring tools to be lent to owners, tenants, and others who will use such tools to
carry out rehabilitation;
(9) Rehabilitation services, such as rehabilitation counseling, energy auditing, preparation of work
specifications, loan processing, inspections, and other services related to assisting owners, tenants,
contractors, and other entities, participating or seeking to participate in rehabilitation activities
authorized under this section, under section 312 of the Housing Act of 1964, as amended, under
section 810 of the Act, or under section 17 of the United States Housing Act of 1937;
(10) Assistance for the rehabilitation of housing under section 17 of the United States Housing Act
of 1937; and
(11) Improvements designed to remove material and architectural barriers that restrict the mobility
and accessibility of elderly or severely disabled persons to buildings and improvements eligible for
assistance under paragraph (a) of this section.
(c) Code enforcement. Costs incurred for inspection for code violations and enforcement of codes
(e.g., salaries and related expenses of code enforcement inspectors and legal proceedings, but not
including the cost of correcting the violations) in deteriorating or deteriorated areas when such
enforcement together with public or private improvements, rehabilitation, or services to be provided
may be expected to arrest the decline of the area.
(d) Historic preservation. CDBG funds may be used for the rehabilitation, preservation or
restoration of historic properties, whether publicly or privately owned. Historic properties are those sites
or structures that are either listed in or eligible to be listed in the National Register of Historic Places,
listed in a State or local inventory of historic places, or designated as a State or local landmark or
historic district by appropriate law or ordinance. Historic preservation, however, is not authorized for
buildings for the general conduct of government.
(e) Renovation of closed buildings. CDBG funds may be used to renovate closed buildings, such
as closed school buildings, for use as an eligible public facility or to rehabilitate such buildings for
housing.
(f) Lead -based paint activities. Lead -based paint activities pursuant to §570.608.
[53 FR 34439, Sept. 6, 1988; 53 FR 41330, Oct. 21, 1988, as amended at 60 FR 1944, Jan. 5, 1995; 60 FR 56911,
Nov. 9, 1995; 64 FR 50225, Sept. 15, 1999; 71 FR 30035, May 24, 2006]
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