[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: 24CFR599.105]

[Page 317]
 
                 TITLE 24--HOUSING AND URBAN DEVELOPMENT
 
  CHAPTER V--OFFICE OF ASSISTANT SECRETARY FOR COMMUNITY PLANNING AND 
        DEVELOPMENT, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
 
PART 599_RENEWAL COMMUNITIES--Table of Contents
 
Subpart B_Eligibility Requirements for Nomination of Renewal Communities
 
Sec. 599.105  Economic condition requirements for a nominated area.

    (a) Certification for economic requirements. An official or 
officials authorized to do so by the nominating State and local 
governments must certify in writing for HUD's acceptance that the 
nominated area is an area of pervasive poverty, unemployment, and 
general distress, and that the nominated area meets the requirements of 
paragraphs (b), (c) and, in the case of urban areas, paragraph (d) of 
this section. HUD's acceptance of the certification is subject to a 
review of data supporting the certification, as provided in paragraph 
(e) of this section.
    (b) Unemployment requirement. A nominated area meets the 
unemployment requirement if the unemployment rate in the nominated area 
taken as a whole was at least one and one-half times (150% of) the 
national unemployment rate for the period to which such data relate.
    (c) Poverty requirement. A nominated area meets the poverty 
requirement if the poverty rate for each population census tract within 
the nominated area is at least 20 percent. In the case of a nominated 
area that is within an Indian reservation, and cannot equivalently be 
described with census tracts, the poverty rate of the nominated area 
taken as a whole is considered for purposes of making this 
determination.
    (d) Income requirement for urban areas. In the case of a nominated 
urban area, at least 70 percent of the households living in the 
nominated area must have incomes below 80 percent of the median income 
of households within the jurisdiction of the local government or 
governments in which the nominated area is located. The number of 
households below 80 percent of the median income in each census tract 
shall be the number of households with incomes below 80 percent of the 
Household Adjusted Median Family Income (HAMFI) in each census tract as 
determined by HUD.
    (e) HUD review of supporting data--(1) Unemployment, poverty and 
income. HUD will review 1990 census data to determine whether to accept 
a certification that a nominated area meets the requirements of 
paragraphs (b), (c) and (d) of this section.
    (2) Pervasive poverty, unemployment and general distress--(i) 
Pervasive poverty. Pervasive poverty is demonstrated by evidence that:
    (A) Poverty, as indicated by the number of persons listed as being 
in poverty in the 1990 Decennial Census, is widespread throughout the 
nominated area; or
    (B) Poverty, as described in paragraph (e)(2)(i)(A) of this section, 
has become entrenched or intractable over time (through comparison of 
1980 and 1990 census data or other relevant evidence).
    (ii) Unemployment. Unemployment is demonstrated by:
    (A) The most recent data available indicating that the annual rate 
of unemployment for the nominated area is not less than the national 
annual average rate of unemployment; or
    (B) Evidence of especially severe economic conditions, such as 
military base or plant closings or other conditions that have brought 
about significant job dislocation within the nominated area.
    (iii) General distress. General distress is evidenced by describing 
adverse conditions within the nominated urban area other than those of 
pervasive poverty and unemployment. Below average or decline in per 
capita income, earnings per worker, number of persons on welfare, per 
capita property tax base, average years of school completed, substantial 
population decline, and a high or rising incidence of crime, narcotics 
use, homelessness, high incidence of AIDS, abandoned housing, 
deteriorated infrastructure, school dropouts, teen pregnancy, incidence 
of domestic violence, incidence of certain health conditions and 
illiteracy are examples of appropriate indicators of general distress.

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