[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: 24CFR570.203]



[Page 45-46]

 

                 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.  570.203  Special economic development activities.



    A recipient may use CDBG 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. 

Guidelines for selecting activities to assist under this paragraph are 

provided at Sec.  570.209. The recipient must ensure that the 

appropriate level of public benefit will be derived pursuant to those 

guidelines before obligating funds under this authority. 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 

recipient 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



[[Page 46]]



support, for any activity where the assistance is appropriate to carry 

out an economic development project, excluding those described as 

ineligible in Sec.  570.207(a). In selecting businesses to assist under 

this authority, the recipient shall minimize, to the extent practicable, 

displacement of existing businesses and jobs in neighborhoods.

    (c) Economic development services in connection with activities 

eligible under this section, including, but not limited to, outreach 

efforts to market available forms of assistance; screening of 

applicants; reviewing and underwriting applications for assistance; 

preparation of all necessary agreements; management of assisted 

activities; and the screening, referral, and placement of applicants for 

employment opportunities generated by CDBG-eligible economic development 

activities, including the costs of providing necessary training for 

persons filling those positions.



[53 FR 34439, Sept. 6, 1988, as amended at 60 FR 1944, Jan. 5, 1995]