[Code of Federal Regulations]
[Title 24, Volume 3]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 24CFR597.103]

[Page 296-297]
 
                 TITLE 24--HOUSING AND URBAN DEVELOPMENT
 
  CHAPTER V--OFFICE OF ASSISTANT SECRETARY FOR COMMUNITY PLANNING AND 
        DEVELOPMENT, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
 
PART 597_URBAN EMPOWERMENT ZONES AND ENTERPRISE COMMUNITIES: ROUND 
ONE DESIGNATIONS--Table of Contents
 
                       Subpart B_Area Requirements
 
Sec. 597.103  Poverty rate.

    (a) General. The poverty rate shall be established in accordance 
with the following criteria:
    (1) In each census tract within a nominated urban area, the poverty 
rate shall be not less than 20 percent;
    (2) For at least 90 percent of the population census tracts within 
the nominated urban area, the poverty rate shall not be less than 25 
percent; and
    (3) For at least 50 percent of the population census tracts within 
the nominated urban area, the poverty rate shall be not less than 35 
percent.
    (b) Special rules relating to the determination of poverty rate--(1) 
Census tracts with no population. Census tracts with no population shall 
be treated as having a poverty rate which meets the standards of 
paragraphs (a)(1) and (2) of this section, but shall be treated as 
having a zero poverty rate for purposes of applying paragraph (a)(3) of 
this section.
    (2) Census tracts with populations of less than 2,000. A population 
census tract which has a population of less than 2,000 shall be treated 
as having a poverty rate which meets the requirements of paragraphs 
(a)(1) and (a)(2) of

[[Page 297]]

this section if more than 75 percent of the tract is zoned for 
commercial or industrial use.
    (3) Adjustment of poverty rates for Enterprise Communities. Where 
necessary to carry out the purposes of this part, the Secretary may 
reduce by 5 percentage points one of the following thresholds for not 
more than 10 percent of the census tracts, or, if fewer, five population 
tracts in the nominated urban area:
    (i) The 20 percent threshold in paragraph (a)(1) of this section;
    (ii) The 25 percent threshold in paragraph (a)(2) of this section; 
and
    (iii) The 35 percent threshold in paragraph (a)(3) of this section; 
Provided that, the Secretary may in the alternative reduce the 35 
percent threshold by 10 percentage points for three population census 
tracts.
    (4) Rounding up of percentages. In making the calculations required 
by this section, the Secretary shall round all fractional percentages of 
one-half percent or more up to the next highest whole percentage figure.
    (c) Noncontiguous areas. A nominated urban area may not contain a 
noncontiguous parcel unless such parcel separately meets the criteria 
set forth at paragraphs (a)(1), (2), and (3) of this section.
    (d) Areas not within census tracts. In the case of an area which 
does not have population census tracts, the block numbering area shall 
be used.