[Code of Federal Regulations]

[Title 24, Volume 3]

[Revised as of April 1, 2005]

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

[CITE: 24CFR570.202]



[Page 44-45]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

  CHAPTER V--OFFICE OF ASSISTANT SECRETARY FOR COMMUNITY PLANNING AND 

        DEVELOPMENT, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

 

PART 570_COMMUNITY DEVELOPMENT BLOCK GRANTS--Table of Contents

 

                      Subpart C_Eligible Activities

 

Sec.  570.202  Eligible rehabilitation and preservation activities.



    (a) Types of buildings and improvements eligible for rehabilitation 

assistance. CDBG funds may be used to finance the rehabilitation of:

    (1) Privately owned buildings and improvements for residential 

purposes; improvements to a single-family residential property which is 

also used as a place of business, which are required in order to operate 

the business, need not be considered to be rehabilitation of a 

commercial or industrial building, if the improvements also provide 

general benefit to the residential occupants of the building;

    (2) Low-income public housing and other publicly owned residential 

buildings and improvements;

    (3) Publicly or privately owned commercial or industrial buildings, 

except that the rehabilitation of such buildings owned by a private for-

profit business is limited to improvements to the exterior of the 

building and the correction of code violations (further improvements to 

such buildings may be undertaken pursuant to Sec.  570.203(b));

    (4) Nonprofit-owned nonresidential buildings and improvements not 

eligible under Sec.  570.201(c); and

    (5) Manufactured housing when such housing constitutes part of the 

community's permanent housing stock.

    (b) Types of assistance. CDBG funds may be used to finance the 

following types of rehabilitation activities, and related costs, either 

singly, or in combination, through the use of grants, loans, loan 

guarantees, interest supplements, or other means for buildings and 

improvements described in paragraph (a) of this section, except that 

rehabilitation of commercial or industrial buildings is limited as 

described in paragraph (a)(3) of this section.

    (1) Assistance to private individuals and entities, including profit 

making and nonprofit organizations, to acquire for the purpose of 

rehabilitation, and to rehabilitate properties, for use or resale for 

residential purposes;

    (2) Labor, materials, and other costs of rehabilitation of 

properties, including repair directed toward an accumulation of deferred 

maintenance, replacement of principal fixtures and components of 

existing structures, installation of security devices, including smoke 

detectors and dead bolt locks, and renovation through alterations, 

additions to, or enhancement of existing structures, which may be 

undertaken singly, or in combination;

    (3) Loans for refinancing existing indebtedness secured by a 

property being rehabilitated with CDBG funds if such financing is 

determined by the recipient to be necessary or appropriate to achieve 

the locality's community development objectives;

    (4) Improvements to increase the efficient use of energy in 

structures through such means as installation of storm windows and 

doors, siding, wall and attic insulation, and conversion, modification, 

or replacement of heating and cooling equipment, including the use of 

solar energy equipment;

    (5) Improvements to increase the efficient use of water through such 

means as water savings faucets and shower heads and repair of water 

leaks;



[[Page 45]]



    (6) Connection of residential structures to water distribution lines 

or local sewer collection lines;

    (7) For rehabilitation carried out with CDBG funds, costs of:

    (i) Initial homeowner warranty premiums;

    (ii) Hazard insurance premiums, except where assistance is provided 

in the form of a grant; and

    (iii) Flood insurance premiums for properties covered by the Flood 

Disaster Protection Act of 1973, pursuant to Sec.  570.605.

    (iv) Procedures concerning inspection and testing for and abatement 

of lead-based paint, pursuant to Sec.  570.608.

    (8) Costs of acquiring tools to be lent to owners, tenants, and 

others who will use such tools to carry out rehabilitation;

    (9) Rehabilitation services, such as rehabilitation counseling, 

energy auditing, preparation of work specifications, loan processing, 

inspections, and other services related to assisting owners, tenants, 

contractors, and other entities, participating or seeking to participate 

in rehabilitation activities authorized under this section, under 

section 312 of the Housing Act of 1964, as amended, under section 810 of 

the Act, or under section 17 of the United States Housing Act of 1937;

    (10) Assistance for the rehabilitation of housing under section 17 

of the United States Housing Act of 1937; and

    (11) Improvements designed to remove material and architectural 

barriers that restrict the mobility and accessibility of elderly or 

severely disabled persons to buildings and improvements eligible for 

assistance under paragraph (a) of this section.

    (c) Code enforcement. Costs incurred for inspection for code 

violations and enforcement of codes (e.g., salaries and related expenses 

of code enforcement inspectors and legal proceedings, but not including 

the cost of correcting the violations) in deteriorating or deteriorated 

areas when such enforcement together with public or private 

improvements, rehabilitation, or services to be provided may be expected 

to arrest the decline of the area.

    (d) Historic preservation. CDBG funds may be used for the 

rehabilitation, preservation or restoration of historic properties, 

whether publicly or privately owned. Historic properties are those sites 

or structures that are either listed in or eligible to be listed in the 

National Register of Historic Places, listed in a State or local 

inventory of historic places, or designated as a State or local landmark 

or historic district by appropriate law or ordinance. Historic 

preservation, however, is not authorized for buildings for the general 

conduct of government.

    (e) Renovation of closed buildings. CDBG funds may be used to 

renovate closed buildings, such as closed school buildings, for use as 

an eligible public facility or to rehabilitate such buildings for 

housing.

    (f) Lead-based paint activities. Lead-based paint activities as set 

forth in part 35 of this title.



[53 FR 34439, Sept. 6, 1988; 53 FR 41330, Oct. 21, 1988, as amended at 

60 FR 1944, Jan. 5, 1995; 60 FR 56911, Nov. 9, 1995; 64 FR 50225, Sept. 

15, 1999]