[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: 24CFR597.403]

[Page 304-305]
 
                 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 E_Post-Designation Requirements
 
Sec. 597.403  Revocation of designation.

    (a) Basis for revocation. The Secretary may revoke the designation 
of an urban area as an Empowerment Zone or Enterprise Community if the 
Secretary determines, on the basis of the periodic performance review 
described at Sec. 597.401, that the State(s) or local government(s) in 
which the urban area is located:

[[Page 305]]

    (1) Has modified the boundaries of the area;
    (2) Has failed to make progress in achieving the benchmarks set 
forth in the strategic plan; or
    (3) Has not complied substantially with the strategic plan.
    (b) Letter of warning. Before revoking the designation of an urban 
area as an Empowerment Zone or Enterprise Community, the Secretary will 
issue a letter of warning to the nominating State(s) and local 
government(s):
    (1) Advising that the Secretary has determined that the nominating 
local government(s) and/or State(s) has:
    (i) Modified the boundaries of the area; or
    (ii) Is not complying substantially with, or has failed to make 
progress in achieving the benchmarks set forth in the strategic plan 
prepared pursuant to Sec. 597.200(c); and
    (2) Requesting a reply from all involved parties within 90 days of 
the receipt of this letter of warning.
    (c) Notice of revocation. After allowing 90 days from the date of 
receipt of the letter of warning for response, and after making a 
determination pursuant to paragraph (a) of this section, the Secretary 
may issue a final notice of revocation of the designation of the urban 
area as an Empowerment Zone or Enterprise Community.
    (d) Notice to affected Federal agencies. HUD will notify all 
affected Federal agencies providing assistance in an urban Empowerment 
Zone or Enterprise Community of its determination to revoke any 
designation pursuant to this section or to modify a designation pursuant 
to Sec. 597.402(b).