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HomeMy WebLinkAboutBack-Up from Law Dept4/17/14 eCFR — Code of Federal Regulations ELECTRONIC CODE OF FEDERAL REGULATIONS e-CFR Data is current as of April 15, 2014 Title 24: Housing and Urban Development PART 570—COMMUNITY DEVELOPMENT BLOCK GRANTS Subpart C—Eligible Activities §570.206 Program administrative costs. Payment of reasonable administrative costs and carrying charges related to the planning and execution of community eveler�Y activities assisted in whole or in part with funds provided under this part and; w ere app icable, housing activities described in paragraph (g) of this section) covered in the recipient's housing assistance plan. This does not include staff and overhead costs directly related to carrying out activities eligible under §570.201 through §570.204, since those costs are eligible as . part of such activities. (a) General management, oversight and coordination. Reasonable costs of overall program management, coordination, monitoring, and evaluation. Such costs include, but are not necessarily limited to, necessary expenditures for the following: (1) Salaries, wages, and related costs of the recipient's staff, the staff of local public agencies, or other staff engaged in program administration. In charging costs to this category the recipient may either include the entire salary, wages, and related costs allocable to the program of each person whose primary responsibilities with regard to the program involve program administration assignments, or the pro rata share of the salary, wages, and related costs of each person whose job includes any program administration assignments. The recipient may use only one of these methods during the program year (or the grant period for grants under subpart F). Program administration includes the following types of assignments: (i) Providing local officials and citizens with information about the program; (ii) Preparing program budgets and schedules, and amendments thereto; (iii) Developing systems for assuring compliance with program requirements; (iv) Developing interagency agreements and agreements with subrecipients and contractors to carry out program activities; (v) Monitoring program activities for progress and compliance with program requirements; (vi) Preparing reports and other documents related to the program for submission to HUD; (vii) Coordinating the resolution of audit and monitoring findings; (viii) Evaluating program results against stated objectives; and (ix) Managing or supervising persons whose primary responsibilities with regard to the program include such assignments as those described in paragraph (a)(1)(i) through (viii) of this section. (2) Travel costs incurred for official business in carrying out the program; www.ecfr.g ov/cg i-bi n/text-id)OSID=f93babc30a33fd86d60a09699f545a54&node=24:3.1.1.3.4.3.1.7&rg n=div8 1/3 4/17/14 eCFR — Code of Federal Regulations (3) Administrative services performed under third party contracts or agreements, including such services as general legal services, accounting services, and audit services; and (4) Other costs for goods and services required for administration of the program, including such goods and services as rental or purchase of equipment, insurance, utilities, office supplies, and rental and maintenance (but not purchase) of office space. (b) Public information. The provisions of information and other resources to residents and citizen organizations participating in the planning, implementation, or assessment of activities being assisted with CDBG funds. (c) Fair housing activities. Provision of fair housing services designed to further the fair housing objectives of the Fair Housing Act (42 U.S.C. 3601-20) by making all persons, without regard to race, color, religion, sex, national origin, familial status or handicap, aware of the range of housing opportunities available to them; other fair housing enforcement, education, and outreach activities; and other activities designed to further the housing objective of avoiding undue concentrations of assisted persons in areas containing a high proportion of_low and moderate income persons. (d) [Reserved] (e) Indirect costs. Indirect costs may be charged to the CDBG program under a cost allocation plan prepared in accordance with OMB Circular A-21, A 87, or A 122 as applicable. (f) Submission of applications for federal programs. Preparation of documents required for submission to HUD to receive funds under the CDBG and UDAG programs. In addition, CDBG funds may be used to prepare applications for other Federal programs where the recipient determines that such activities are necessary or appropriate to achieve its community development objectives. (g) Administrative expenses to facilitate housing. CDBG funds may be used for necessary administrative expenses in planning or obtaining financing for housing as follows: for entitlement recipients, assistance authorized by this paragraph is limited to units which are identified in the recipient's HUD approved housing assistance plan; for HUD -administered small cities recipients, assistance authorized by the paragraph is limited to facilitating the purchase or occupancy of existing units which are to be occupied by low and moderate income households, or the construction of rental or owner units where at least 20 percent of the units in each project will be occupied at affordable rents/costs by low and moderate income persons. Examples of eligible actions are as follows: (1) The cost of conducting preliminary surveys and analysis of market needs; (2) Site and utility plans, narrative descriptions of the proposed construction, preliminary cost estimates, urban design documentation, and "sketch drawings," but excluding architectural, engineering, and other details ordinarily required for construction purposes, such as structural, electrical, plumbing, and mechanical details; (3) Reasonable costs associated with development of applications for mortgage and insured loan commitments, including commitment fees, and of applications and proposals under the Section 8 Housing Assistance Payments Program pursuant to 24 CFR parts 880-883; (4) Fees associated with processing of applications for mortgage or insured loan commitments under programs including those administered by HUD, Farmers Home Administration (FmHA), Federal National Mortgage Association (FNMA), and the Government National Mortgage Association (GNMA); (5) The cost of issuance and administration of mortgage revenue bonds used to finance the acquisition, rehabilitation or construction of housing, but excluding costs associated with the payment or guarantee of the principal or interest on such bonds; and (6) Special outreach activities which result in greater landlord participation in Section 8 Housing vwvw.ecfr.gov/cg n/text-lbOSID=f93babc30a33fd86d60a09699f545a54&node=24:3.1.1.3.4.3.1.7&rg n= di v8 2/3 4/17/14 eCFR — Code of Federal Regulations Assistance Payments Program -Existing Housing or similar programs for low and moderate income persons. (h) Section 17 of the United States Housing Act of 1937. Reasonable costs equivalent to those described in paragraphs (a), (b), (e) and (f) of this section for overall program management of the Rental Rehabilitation and Housing Development programs authorized under section 17 of the United States Housing Act of 1937, whether or not such activities are otherwise assisted with funds provided under this part. (i) Whether or not such activities are otherwise assisted by funds provided under this part, reasonable costs equivalent to those described in paragraphs (a), (b), (e), and (f) of this section for overall program management of: (1) A Federally designated Empowerment Zone or Enterprise Community; and (2) The HOME program under title II of the Cranston -Gonzalez National Affordable Housing Act (42 U.S.C. 12701 note). [53 FR 34439, Sept. 6, 1988; 53 FR 41330, Oct. 21, 1988, as amended at 54 FR 37411, Sept. 8, 1989; 60 FR 56912, Nov 9, 1995; 69 FR 32778, June 10, 2004] For questions or corm ments regarding e-CFR editorial content, features, or design, email ecfr@nara.gov. For questions concerning e-CFR programming and delivery issues, email webteam@gpo.gov. www.ecfr.g ov/cg i-bin/tex-ithoSID=f93babc30a33fd86d60a09699f545a54&node= 24:3.1.1.3.4.3.1.7&rg n=div8 3/3 Eligible Activities Program Administration Costs CDBG funds may be used to pay reasonable program administration costs and carrying charges related to the planning and execution of community development activities assisted in whole or in part with funds provided under the CDBG or the HOME or Urban Development Action Grants (UDAG) programs. Program administration costs include staff and related costs required for overall program management, coordination, monitoring, reporting, and evaluation, as described at §570.206(a)(1). Other activities eligible under this category include: J. Citizen participation costs Reference: §570.206(b), ✓ Fair housing activities Reference: §570.206(c), ✓ Indirect costs charged using an accepted cost allocation plan Reference: §570.206(e), ✓ Development of submissions or applications for Federal programs Reference: §570.206(f), and ✓ Certain costs of administering the HOME program or a Federally designated Empowerment Zone or Enterprise Community Reference: §570.206(i). Office space: A grantee may charge to the CDBG program the costs of rent and maintenance of office space to house the staff involved in program administration, but may not purchase or construct offices for this purpose. Proration: Where an individual staff person performs some duties that are eligible as administration costs as well as other duties that are eligible under other categories of basic eligibility, the grantee may elect to charge either all of such person's costs to administration if the person's primary duties are program administration, or only the portion of the staff's duties that are covered under this category (provided appropriate time distribution records are kept). 20% cap: Costs that are charged to administrative costs and to Planning and Capacity Building per §570.205 and 206 are subject to a statutory limitation Via not more than 20% of grant funds plus program income may be used for _planning and administration. (This limitation is not contained in the Housing and Community Development Act of 1974, which authorizes the CDBG program, but has been included in each Appropriations statute for the CDBG program since 1978.) See the description on how to calculate the amount of this limitation, shown later in this section. Community Development Block Grant Program Categories of Eligible Activities + 2-77 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. (m) 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 (includi� nonprofit and for-1�rofit sg recipients) to facilitate economic de- pinent by: Providing credit, including, but n• 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) Types of buildings and improve- ments eligible for rehabilitation assist- ance. CDBG funds may be used to fi- nance 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- ings and improvements; (3) Publicly 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;