[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: 24CFR598.430]

[Page 313-314]
 
                 TITLE 24--HOUSING AND URBAN DEVELOPMENT
 
  CHAPTER V--OFFICE OF ASSISTANT SECRETARY FOR COMMUNITY PLANNING AND 
        DEVELOPMENT, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
 
PART 598_URBAN EMPOWERMENT ZONES: ROUND TWO AND THREE DESIGNATIONS--Table of Contents
 
                 Subpart E_Post-Designation Requirements
 
Sec. 598.430  Revocation of designation.

    (a) Basis for revocation. The Secretary may revoke the designation 
of an urban area as an Empowerment Zone if the Secretary determines, on 
the basis of the periodic progress determination described at Sec. 
598.420, that the State(s) or local government(s) in which the urban 
area is located:
    (1) Has modified the boundaries of the area without written approval 
from HUD;
    (2) Has failed to make progress in implementing 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 and an Empowerment Zone, the Secretary will issue a letter of 
warning to the nominating State(s) and local government(s), with a copy 
to all affected Federal agencies of which the Secretary is aware;

[[Page 314]]

    (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 without written approval 
from HUD; or
    (ii) Is not complying substantially with, or has failed to make 
progress in implementing the strategic plan; and
    (2) Requesting a reply from the nominating entities within 90 days 
of the receipt of this letter of warning.
    (c) Notice of revocation. To revoke the designation, the Secretary 
must issue a final notice of revocation of the designation of the urban 
area as an Empowerment Zone, after allowing 90 days from the date of 
receipt of the letter of warning for response, and after making a 
determination in accordance with paragraph (a) of this section.
    (d) Notice to affected Federal agencies. HUD will notify all 
affected Federal agencies of which it is aware, of its determination to 
revoke any designation in accordance with this section.
    (e) Effect of revocation. Upon revocation of an EZ's designation, 
the designation and remaining benefits may be awarded to the next 
highest ranked Round II applicant.
    (f) Publication. The final notice of revocation of designation will 
be published in the Federal Register, and the revocation will be 
effective on the date of publication.

(Approved by the Office of Management and Budget under Control Number 
2506-0148)

[63 FR 19155, Apr. 16, 1998, as amended at 63 FR 53262, Oct. 2, 1998]