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HomeMy WebLinkAboutBack-Up from Law DeptAUTHENTICATED U.S. GOVERNMENT INFORMATION GPO Ofc. of Asst. Secy., Comm. Planning, Develop., HUD §570.201 on a religious basis, and include reli- gious references in its organization's mission statements and other gov- erning documents. (4) An organization that participates in the CDBG program shall not, in pro- viding program assistance, discrimi- nate against a program beneficiary or prospective program beneficiary on the basis of religion or religious belief. (5) CDBG funds may not be used for the acquisition, construction, or reha- bilitation of structures to the extent that those structures are used for in- herently religious activities. CDBG funds may be used for the acquisition, construction, or rehabilitation of structures only to the extent that those structures are used for con- ducting eligible activities under this part. Where a structure is used for both eligible and inherently religious activi- ties, CDBG funds may not exceed the cost of those portions of the acquisi- tion, construction, or rehabilitation that are attributable to eligible activi- ties in accordance with the cost ac- counting requirements applicable to CDBG funds in this part. Sanctuaries, chapels, or other rooms that a CDBG- funded religious congregation uses as its principal place of worship, however, are ineligible for CDBG-funded im- provements. Disposition of real prop- erty after the term of the grant, or any change in use of the property during the term of the grant, is subject to gov- ernment -wide regulations governing real property disposition (see 24 CFR parts 84 and 85). (6) If a State or local government vol- untarily contributes its own funds to supplement federally funded activities, the State or local government has the option to segregate the Federal funds or commingle them. However, if the funds are commingled, this section ap- plies to all of the commingled funds. [53 FR 34439, Sept. 6, 1988, as amended at 54 FR 47031, Nov. 8, 1989; 57 FR 27119, June 17, 1992; 60 FR 1943, Jan. 5, 1995; 60 FR 17445, Apr. 6, 1995; 60 FR 56910, Nov. 9, 1995; 61 FR 11476, Mar. 20, 1996; 61 FR 18674, Apr. 29, 1996; 65 FR 70215, Nov. 21, 2000; 68 FR 56404, Sept. 30, 2003; 69 FR 32778, June 10, 2004; 70 FR 76369, Dec. 23, 2005; 72 FR 46370, Aug. 17, 2007] 41 § 570.201 Basic eligible activities. CDBG funds may be used for the fol- lowing activities; (a) Acquisition. Acquisition in whole or in part by the recipient, or other public or private nonprofit entity, by purchase, long-term lease, donation, or otherwise, of real property (including air rights, water rights, rights -of -way, easements, and other interests therein) for any public purpose, subject to the limitations of § 570.207. (b) Disposition. Disposition, through sale, lease, donation, or otherwise, of any real property acquired with CDBG funds or its retention for public pur- poses, including reasonable costs of temporarily managing such property or property acquired under urban renewal, provided that the proceeds from any such disposition shall be program in- come subject to the requirements set forth in § 570.504. (c) Public facilities and improvements. Acquisition, construction, reconstruc- tion, rehabilitation or installation of public facilities and improvements, ex- cept as provided in §570.207(a), carried out by the recipient or other public or private nonprofit entities. (However, activities under this paragraph may be directed to the removal of material and architectural barriers that restrict the mobility and accessibility of elderly or severely disabled persons to public fa- cilities and improvements, including those provided for in §570.207(a)(1).) In undertaking such activities, design fea- tures and improvements which pro- mote energy efficiency may be in- cluded. Such activities may also in- clude the execution of architectural de- sign features, and similar treatments intended to enhance the aesthetic qual- ity of facilities and improvements re- ceiving CDBG assistance, such as deco- rative pavements, railings, sculptures, pools of water and fountains, and other works of art. Facilities designed for use in providing shelter for persons having special needs are considered public fa- cilities and not subject to the prohibi- tion of new housing construction de- scribed in § 570.207(b)(3). Such facilities include shelters for the homeless; con- valescent homes; hospitals, nursing homes; battered spouse shelters; half- way houses for run -away children, drug offenders or parolees; group homes for § 570.201 mentally retarded persons and tem- porary housing for disaster victims. In certain cases, nonprofit entities and subrecipients including those specified in § 570.204 may acquire title to public facilities. When such facilities are owned by nonprofit entities or sub - recipients, they shall be operated so as to be open for use by the general public during all normal hours of operation. Public facilities and improvements eli- gible for assistance under this para- graph are subject to the policies in § 570.200(b). (d) Clearance and renediation activi- ties, Clearance, demolition, and re- moval of buildings and improvements, including movement of structures to other sites and remediation of known or suspected environmental contami- nation. Demolition of HUD -assisted or HUD -owned housing units may be un- dertaken only with the prior approval of HUD. Remediation may include project -specific environmental assess- ment costs not otherwise eligible under § 570.205. (e) Public services. Provision of public services (including labor, supplies, and materials) including but not limited to those concerned with employment, crime prevention, child care, health, drug abuse, education, fair housing counseling, energy conservation, wel- fare (but excluding the provision of in- come payments identified under § 570.207(b)(4)), homebuyer downpay- ment assistance, or recreational needs. To be eligible for CDBG assistance, a public service must be either a new service or a quantifiable increase in the level of an existing service above that which has been provided by or on behalf of the unit of general local gov- ernment (through funds raised by the unit or received by the unit from the State in which it is located) in the 12 calendar months before the submission of the action plan. (An exception to this requirement may be made if HUD determines that any decrease in the level of a service was the result of events not within the control of the unit of general local government.) The amount of CDBG funds used for public services shall not exceed paragraphs (e) (1) or (2) of this section, as applicable: (1) The amount of CDBG funds used for public services shall not exceed 15 42 24 CFR Ch. V (4-1-12 Edition) percent of each grant, except that for entitlement grants made under subpart D of this part, the amount shall not ex- ceed 15 percent of the grant plus 15 per- cent of program income, as defined in §570.500(a). For entitlement grants under subpart D of this part, compli- ance is based on limiting the amount of CDBG funds obligated for public serv- ice activities in each program year to an amount no greater than 15 percent of the entitlement grant made for that program year plus 15 percent of the program income received during the grantee's immediately preceding pro- gram year. (2) A recipient which obligated more CDBG funds for public services than 15 percent of its grant funded from Fed- eral fiscal year 1982 or 1983 appropria- tions (excluding program income and any assistance received under Public Law 98-8), may obligate more CDBG funds than allowable under paragraph (e)(1) of this section, so long as the total amount obligated in any program year does not exceed: (i) For an entitlement grantee, 15% of the program income it received dur- ing the preceding program year; plus (ii) A portion of the grant received for the program year which is the high- est of the following amounts: (A) The amount determined by apply- ing the percentage of the grant it obli- gated for public services in the 1982 program year against the grant for its current program year; (B) The amount determined by apply- ing the percentage of the grant it obli- gated for public services in the 1983 program year against the grant for its current program year; (C) The amount of funds it obligated for public services in the 1982 program year; or, (D) The amount of funds it obligated for public services in the 1983 program year. (f), Interim assistance. (1) The following activities may be undertaken on an in- terim basis in areas exhibiting objec- tively determinable signs of physical deterioration where the recipient has determined that immediate action is necessary to arrest the deterioration and that permanent improvements will be carried out as soon as practicable: Ofc. of Asst. Secy., Comm. Planning, Develop., HUD §570.201 (i) The repairing of streets, side- walks, parks, playgrounds, publicly owned utilities, and public buildings; and (ii) The execution of special garbage, trash, and debris removal, including neighborhood cleanup campaigns, but not the regular curbside collection of garbage or trash in an area. (2) In order to alleviate emergency conditions threatening the public health and safety in areas where the chief executive officer of the recipient determines that such an emergency condition exists and requires imme- diate resolution, CDBG funds may be used for: (i) The activities specified in para- graph (f)(1) of this section, except for the repair of parks and playgrounds; (ii) The clearance of streets, includ- ing snow removal and similar activi- ties, and (iii) The improvement of private properties. (3) All activities authorized under paragraph (f)(2) of this section are lim- ited to the extent necessary to allevi- ate emergency conditions. (g) Payment of non -Federal share. Pay- ment of the non -Federal share required in connection with a Federal grant-in- aid program undertaken as part of CDBG activities, provided, that such payment shall be limited to activities otherwise eligible and in compliance with applicable requirements under this subpart. (h) Urban renewal completion. Pay- ment of the cost of completing an urban renewal project funded under title I of the Housing Act of 1949 as amended. Further information regard- ing the eligibility of such costs is set forth in §570.801. (i) Relocation. Relocation payments and other assistance for permanently and temporarily relocated individuals families, businesses, nonprofit organi- zations, and farm operations where the assistance is (1) required under the pro- visions of §570.606 (b) or (c); or (2) de- termined by the grantee to be appro- priate under the provisions of § 570.606(d). (j) Loss of rental income. Payments to housing owners for losses of rental in- come incurred in holding, for tem- porary periods, housing units to be 43 used for the relocation of individuals and families displaced by program ac- tivities assisted under this part. (k) Housing services. Housing services, as provided in section 105(a)(21) of the Act (42 U.S.C. 5305(a)(21)). (1) Privately owned utilities. CDBG funds may be used to acquire, con- struct, reconstruct, rehabilitate, or in- stall the distribution lines and facili- ties of privately owned utilities, in- cluding the placing underground of new or existing distribution facilities and lines. (in) Construction of housing. CDBG funds may be used for the construction of housing assisted under section 17 of the United States Housing Act of 1937. (n) Homeownership assistance. CDBG funds may be used to provide direct homeownership assistance to low- or moderate -income households in accord- ance with section 105(a) of the Act. (o)(1) The provision of assistance ei- ther through the recipient directly or through public and private organiza- tions, agencies, and other subrecipients (including nonprofit and for -profit sub - recipients) to facilitate economic de- velopment by: (i) Providing credit, including, but not limited to, grants, loans, loan guarantees, and other forms of finan- cial support, for the establishment, stabilization, and expansion of micro - enterprises; (ii) Providing technical assistance, advice, and business support services to owners of microenterprises and persons developing microenterprises; and (iii) Providing general support, in- cluding, but not limited to, peer sup- port programs, counseling, child care, transportation, and other similar serv- ices, to owners of microenterprises and persons developing microenterprises. (2) Services provided this paragraph (o) shall not be subject to the restric- tions on public services contained in paragraph (e) of this section. (3) For purposes of this paragraph (o), "persons developing microenterprises" means such persons who have expressed interest and who are, or after an initial screening process are expected to be, actively working toward developing businesses, each of which is expected to be a microenterprise at the time it is formed. § 570.202 (4) Assistance under this paragraph (o) may also include training, technical assistance, or other support services to increase the capacity of the recipient or subrecipient to carry out the activi- ties under this paragraph (o). (p) Technical assistance. Provision of technical assistance to public or non- profit entities to increase the capacity of such entities to carry out eligible neighborhood revitalization or eco- nomic development activities. (The re- cipient must determine, prior to the provision of the assistance, that the ac- tivity for which it is attempting to build capacity would be eligible for as- sistance under this subpart C, and that the national objective claimed by the grantee for this assistance can reason- ably be expected to be met once the en- tity has received the technical assist- ance and undertakes the activity.) Ca- pacity building for private or public entities (including grantees) for other purposes may be eligible under §570.205, (q) Assistance to institutions of higher education. Provision of assistance by the recipient to institutions of higher education when the grantee determines that such an institution has dem- onstrated a capacity to carry out eligi- ble activities under this subpart C. [53 FR 34439, Sept. 6, 1988, as amended at 53 FR 31239, Aug. 17, 1988; 55 FR 29308, July 18, 1990; 57 FR 27119, June 17, 1992; 60 FR 1943, Jan. 5, 1995; 60 FR 56911, Nov. 9, 1995; 61 FR 18674, Apr. 29, 1996; 65 FR 70215, Nov. 21, 2000; 67 FR 47213, July 17, 2002; 71 FR 30034, May 24, 2006] § 570.202 Eligible rehabilitation and preservation activities. (a) Tppe.e of buildings and improve- ments eligible for rehabilitation assist- ance. CDBCx fun ay be used to fi- t a1 Ce the rehabilitation of: (1) Privately owned buildings and im- provements for residential purposes; improvements to a single-family resi- dential 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; 44 24 CFR Ch. V (4-1-12 Edition) (2) Low-income public housing and other publicly owned residential build- ] nd improvements; (3) ublicly or privately owned com- mercial or industrial buildings, except that the rehabilitation of such build- ings owned by a private for -profit busi- ness is limited to improvement to the exterior of the building, abatement of asbestos hazards, lead -based paint haz- ard evaluation and reduction, and the correction of code violations; (4) Nonprofit -owned nonresidential buildings and improvements not eligi- ble under §570.201(c); and (5) Manufactured housing when such housing constitutes part of the commu- nity'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 com- bination, through the use of grants, loans, loan guarantees, interest supple- ments, or other means for buildings and improvements described in para- graph (a) of this section, except that rehabilitation of commercial or indus- trial 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 re- sale for residential purposes; (2) Labor, materials, and other costs of rehabilitation of properties, includ- ing repair directed toward an accumu- lation of deferred maintenance, re- placement of principal fixtures and components of existing structures, in- stallation of security devices, includ- ing smoke detectors and dead bolt locks, and renovation through alter- ations, 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 in- debtedness secured by a property being rehabilitated with CDBG funds if such financing is determined by the recipi- ent to be necessary or appropriate to achieve the locality's community de- velopment objectives;