[Code of Federal Regulations]

[Title 24, Volume 4]

[Revised as of April 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 24CFR1003.203]



[Page 778]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

CHAPTER IX--OFFICE OF ASSISTANT SECRETARY FOR PUBLIC AND INDIAN HOUSING, 

               DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

 

PART 1003_COMMUNITY DEVELOPMENT BLOCK GRANTS FOR INDIAN TRIBES AND ALASKA 

NATIVE VILLAGES--Table of Contents

 

                      Subpart C_Eligible Activities

 

Sec.  1003.203  Special economic development activities.



    A grantee may use ICDBG funds for special economic development 

activities in addition to other activities authorized in this subpart 

which may be carried out as part of an economic development project. 

Special activities authorized under this section do not include 

assistance for the construction of new housing. Special economic 

development activities include:

    (a) The acquisition, construction, reconstruction, rehabilitation or 

installation of commercial or industrial buildings, structures, and 

other real property equipment and improvements, including railroad spurs 

or similar extensions. Such activities may be carried out by the grantee 

or public or private nonprofit subrecipients.

    (b) The provision of assistance to a private for-profit business, 

including, but not limited to, grants, loans, loan guarantees, interest 

supplements, technical assistance, and other forms of support, for any 

activity where the assistance is necessary or appropriate to carry out 

an economic development project, excluding those described as ineligible 

in Sec.  1003.207(a). In order to ensure that any such assistance does 

not unduly enrich the for-profit business, the grantee shall conduct an 

analysis to determine that the amount of any financial assistance to be 

provided is not excessive, taking into account the actual needs of the 

business in making the project financially feasible and the extent of 

public benefit expected to be derived from the economic development 

project. The grantee shall document the analysis as well as any factors 

it considered in making its determination that the assistance is 

necessary or appropriate to carry out the project. The requirement for 

making such a determination applies whether the business is to receive 

assistance from the grantee or through a subrecipient.



(Approved by the Office of Management and Budget under control number 

2577-0191)