[Code of Federal Regulations]
[Title 24, Volume 1]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 24CFR58.22]

[Page 413-414]
 
                 TITLE 24--HOUSING AND URBAN DEVELOPMENT
 
PART 58_ENVIRONMENTAL REVIEW PROCEDURES FOR ENTITIES ASSUMING HUD 
ENVIRONMENTAL RESPONSIBILITIES--Table of Contents
 
        Subpart C_General Policy: Environmental Review Procedures
 
Sec. 58.22  Limitations on activities pending clearance.

    (a) Neither a recipient nor any participant in the development 
process, including public or private nonprofit or for-profit entities, 
or any of their contractors, may commit HUD assistance under a program 
listed in Sec. 58.1(b) on an activity or project until HUD or the state 
has approved the recipient's RROF and the related certification from the 
responsible entity. In addition, until the RROF and the related 
certification have been approved, neither a recipient nor any 
participant in the development process may commit non-HUD funds on or 
undertake an activity or project under a program listed in Sec. 58.1(b) 
if the activity or project would have an adverse environmental impact or 
limit the choice of reasonable alternatives.

[[Page 414]]

    (b) If a project or activity is exempt under Sec. 58.34, or is 
categorically excluded (except in extraordinary circumstances) under 
Sec. 58.35(b), no RROF is required and the recipient may undertake the 
activity immediately after the responsible entity has documented its 
determination as required in Sec. 58.34(b) and Sec. 58.35(d), but the 
recipient must comply with applicable requirements under Sec. 58.6.
    (c) If a recipient is considering an application from a prospective 
subrecipient or beneficiary and is aware that the prospective 
subrecipient or beneficiary is about to take an action within the 
jurisdiction of the recipient that is prohibited by paragraph (a) of 
this section, then the recipient will take appropriate action to ensure 
that the objectives and procedures of NEPA are achieved.
    (d) An option agreement on a proposed site or property is allowable 
prior to the completion of the environmental review if the option 
agreement is subject to a determination by the recipient on the 
desirability of the property for the project as a result of the 
completion of the environmental review in accordance with this part and 
the cost of the option is a nominal portion of the purchase price. There 
is no constraint on the purchase of an option by third parties that have 
not been selected for HUD funding, have no responsibility for the 
environmental review and have no say in the approval or disapproval of 
the project.
    (e) Self-Help Homeownership Opportunity Program (SHOP). In 
accordance with section 11(d)(2)(A) of the Housing Opportunity Program 
Extension Act of 1996 (42 U.S.C. 12805 note), an organization, 
consortium, or affiliate receiving assistance under the SHOP program may 
advance nongrant funds to acquire land prior to completion of an 
environmental review and approval of a Request for Release of Funds 
(RROF) and certification, notwithstanding paragraph (a) of this section. 
Any advances to acquire land prior to approval of the RROF and 
certification are made at the risk of the organization, consortium, or 
affiliate and reimbursement for such advances may depend on the result 
of the environmental review. This authorization is limited to the SHOP 
program only and all other forms of HUD assistance are subject to the 
limitations in paragraph (a) of this section.
    (f) Relocation. Funds may be committed for relocation assistance 
before the approval of the RROF and related certification for the 
project provided that the relocation assistance is required by 24 CFR 
part 42.

[68 FR 56129, Sept. 29, 2003]