[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: 24CFR570.3]



[Page 33-36]

 

                 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 A_General Provisions

 

Sec.  570.3  Definitions.



    The terms HUD and Secretary are defined in 24 CFR part 5. All of the 

following definitions in this section that rely on data from the United 

States Bureau of the Census shall rely upon the data available from the 

latest decennial census.

    Act means title I of the Housing and Community Development Act of 

1974 as amended (42 U.S.C. 5301 et seq.).

    Age of housing means the number of year-round housing units, as 

further defined in section 102(a)(11) of the Act.

    Applicant means a State or unit of general local government that 

makes application pursuant to the provisions of subpart E, F, G or M.

    Buildings for the general conduct of government shall have the 

meaning provided in section 102(a)(21) of the Act.

    CDBG funds means Community Development Block Grant funds, including 

funds received in the form of grants under subpart D, F, or Sec.  

570.405 of this part, funds awarded under section 108(q) of the Housing 

and Community Development Act of 1974, loans guaranteed under subpart M 

of this part, urban renewal surplus grant funds, and program income as 

defined in Sec.  570.500(a).

    Chief executive officer of a State or unit of general local 

government means the elected official or the legally designated 

official, who has the primary responsibility for the conduct of that 

entity's governmental affairs. Examples of the ``chief executive 

officer'' of a unit of general local government are: the elected mayor 

of a municipality; the elected county executive of a county; the 

chairperson of a county commission or board in a county that has no 

elected county executive; and the official designated pursuant to law by 

the governing body of a unit of general local government.

    City means the following:

    (1) For purposes of Entitlement Community Development Block Grant 

and Urban Development Action Grant eligibility:

    (i) Any unit of general local government that is classified as a 

municipality by the United States Bureau of the Census, or

    (ii) Any other unit of general local government that is a town or 

township and that, in the determination of the Secretary:

    (A) Possesses powers and performs functions comparable to those 

associated with municipalities;

    (B) Is closely settled (except that the Secretary may reduce or 

waive this requirement on a case by case basis for the purposes of the 

Action Grant program); and

    (C) Contains within its boundaries no incorporated places as defined 

by the United States Bureau of the Census that have not entered into 

cooperation agreements with the town or township for a period covering 

at least 3 years to undertake or assist in the undertaking of essential 

community development and housing assistance activities. The 

determination of eligibility of a town or township to qualify as a city 

will be based on information available from the United States Bureau of 

the Census and information provided by the town or township and its 

included units of general local government.

    (2) For purposes of Urban Development Action Grant eligibility only, 

Guam, the Virgin Islands, American Samoa, the Commonwealth of the



[[Page 34]]



Northern Mariana Islands, the counties of Kauai, Maui, and Hawaii in the 

State of Hawaii, and Indian tribes that are eligible recipients under 

the State and Local Government Fiscal Assistance Act of 1972 and located 

on reservations in Oklahoma as determined by the Secretary of the 

Interior or in Alaskan Native Villages.

    Community Development Financial Institution has the same meaning as 

used in the Community Development Banking and Financial Institutions Act 

of 1994 (12 U.S.C. 4701 note).

    Consolidated plan. The plan prepared in accordance with 24 CFR part 

91, which describes needs, resources, priorities and proposed activities 

to be undertaken with respect to HUD programs, including the CDBG 

program. An approved consolidated plan means a consolidated plan that 

has been approved by HUD in accordance with 24 CFR part 91.

    Discretionary grant means a grant made from the various Special 

Purpose Grants in accordance with subpart E of this part.

    Entitlement amount means the amount of funds which a metropolitan 

city is entitled to receive under the Entitlement grant program, as 

determined by formula set forth in section 106 of the Act.

    Extent of growth lag shall have the meaning provided in section 

102(a)(12) of the Act.

    Extent of housing overcrowding shall have the meaning provided in 

section 102(a)(10) of the Act.

    Extent of poverty means the number of persons whose incomes are 

below the poverty level based on data compiled and published by the 

United States Bureau of the Census available from the latest census 

referable to the same point or period in time and the latest reports 

from the Office of Management and Budget. For purposes of this part, the 

Secretary has determined that it is neither feasible nor appropriate to 

make adjustments at this time in the computations of ``extent of 

poverty'' for regional or area variations in income and cost of living.

    Family means all persons living in the same household who are 

related by birth, marriage or adoption.

    Household means all the persons who occupy a housing unit. The 

occupants may be a single family, one person living alone, two or more 

families living together, or any other group of related or unrelated 

persons who share living arrangements.

    Income. For the purpose of determining whether a family or household 

is low- and moderate-income under subpart C of this part, grantees may 

select any of the three definitions listed below for each activity, 

except that integrally related activities of the same type and 

qualifying under the same paragraph of Sec.  570.208(a) shall use the 

same definition of income. The option to choose a definition does not 

apply to activities that qualify under Sec.  570.208(a)(1) (Area benefit 

activities), except when the recipient carries out a survey under Sec.  

570.208(a)(1)(vi). Activities qualifying under Sec.  570.208(a)(1) 

generally must use the area income data supplied to recipients by HUD. 

The three definitions are as follows:

    (1)(i) ``Annual income'' as defined under the Section 8 Housing 

Assistance Payments program at 24 CFR 813.106 (except that if the CDBG 

assistance being provided is homeowner rehabilitation under Sec.  

570.202, the value of the homeowner's primary residence may be excluded 

from any calculation of Net Family Assets); or

    (ii) Annual income as reported under the Census long-form for the 

most recent available decennial Census. This definition includes:

    (A) Wages, salaries, tips, commissions, etc.;

    (B) Self-employment income from own nonfarm business, including 

proprietorships and partnerships;

    (C) Farm self-employment income;

    (D) Interest, dividends, net rental income, or income from estates 

or trusts;

    (E) Social Security or railroad retirement;

    (F) Supplemental Security Income, Aid to Families with Dependent 

Children, or other public assistance or public welfare programs;

    (G) Retirement, survivor, or disability pensions; and

    (H) Any other sources of income received regularly, including 

Veterans' (VA) payments, unemployment compensation, and alimony; or



[[Page 35]]



    (iii) Adjusted gross income as defined for purposes of reporting 

under Internal Revenue Service (IRS) Form 1040 for individual Federal 

annual income tax purposes.

    (2) Estimate the annual income of a family or household by 

projecting the prevailing rate of income of each person at the time 

assistance is provided for the individual, family, or household (as 

applicable). Estimated annual income shall include income from all 

family or household members, as applicable. Income or asset enhancement 

derived from the CDBG-assisted activity shall not be considered in 

calculating estimated annual income.

    Insular area shall have the meaning provided in section 102(a)(24) 

of the Act.

    Low- and moderate-income household means a household having an 

income equal to or less than the Section 8 low-income limit established 

by HUD.

    Low- and moderate-income person means a member of a family having an 

income equal to or less than the Section 8 low-income limit established 

by HUD. Unrelated individuals will be considered as one-person families 

for this purpose.

    Low-income household means a household having an income equal to or 

less than the Section 8 very low-income limit established by HUD.

    Low-income person means a member of a family that has an income 

equal to or less than the Section 8 very low-income limit established by 

HUD. Unrelated individuals shall be considered as one-person families 

for this purpose.

    Metropolitan area shall have the meaning provided in section 

102(a)(3) of the Act.

    Metropolitan city shall have the meaning provided in section 

102(a)(4) of the Act except that the term ``central city'' is replaced 

by ``principal city.''

    Microenterprise shall have the meaning provided in section 

102(a)(22) of the Act.

    Moderate-income household means a household having an income equal 

to or less than the Section 8 low-income limit and greater than the 

Section 8 very low-income limit, established by HUD.

    Moderate-income person means a member of a family that has an income 

equal to or less than the Section 8 low-income limit and greater than 

the Section 8 very low-income limit, established by HUD. Unrelated 

individuals shall be considered as one-person families for this purpose.

    Nonentitlement amount means the amount of funds which is allocated 

for use in a State's nonentitlement areas as determined by formula set 

forth in section 106 of the Act.

    Nonentitlement area shall have the meaning provided in section 

102(a)(7) of the Act.

    Population means the total resident population based on data 

compiled and published by the United States Bureau of the Census 

available from the latest census or which has been upgraded by the 

Bureau to reflect the changes resulting from the Boundary and Annexation 

Survey, new incorporations and consolidations of governments pursuant to 

Sec.  570.4, and which reflects, where applicable, changes resulting 

from the Bureau's latest population determination through its estimating 

technique using natural changes (birth and death) and net migration, and 

is referable to the same point or period in time.

    Small business means a business that meets the criteria set forth in 

section 3(a) of the Small Business Act (15 U.S.C. 631, 636, 637).

    State shall have the meaning provided in section 102(a)(2) of the 

Act.

    Unit of general local government shall have the meaning provided in 

section 102(a)(1) of the Act.

    Urban county shall have the meaning provided in section 102(a)(6) of 

the Act. For the purposes of this definition, HUD will determine whether 

the county's combined population contains the required percentage of 

low- and moderate-income persons by identifying the number of persons 

that resided in applicable areas and units of general local government 

based on data from the most recent decennial census, and using income 

limits that would have applied for the year in which that census was 

taken.

    Urban Development Action Grant (UDAG) means a grant made by the



[[Page 36]]



Secretary pursuant to section 119 of the Act and subpart G of this part.



[53 FR 34437, Sept. 6, 1988; 53 FR 41330, Oct. 21, 1988, as amended at 

56 FR 56126, Oct. 31, 1991; 60 FR 1915, 1943, Jan. 5, 1995; 60 FR 56909, 

Nov. 9, 1995; 61 FR 5209, Feb. 9, 1996; 61 FR 11475, Mar. 20, 1996; 61 

FR 18674, Apr. 29, 1996; 68 FR 69582, Dec. 12, 2003; 69 FR 32778, June 

10, 2004]