[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: 24CFR570.405]



[Page 76-78]

 

                 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 E_Special Purpose Grants

 

Sec.  570.405  The insular areas.



    (a) Eligible applicants. Eligible applicants are Guam, the Virgin 

Islands, American Samoa, the Trust Territory of the Pacific Islands, and 

the Commonwealth of the Northern Mariana Islands.

    (b) Threshold requirements. HUD shall review each grantee's progress 

on outstanding grants made under this section based on the grantee's 

performance report, the timeliness of close-outs and compliance with 

fund management requirements and pertinent regulations, taking into 

consideration the size of the grant and the degree and complexity of the 

program. If HUD determines upon such review that the applicant does not 

have the capacity effectively to administer a new grant, or a portion of 

a new grant, in addition to grants currently under administration, the 

applicant shall not be invited to submit an application for the current 

year's funding.

    (c) Previous audit findings and outstanding monetary obligations. 

HUD shall not accept for review an application from an applicant that 

has either an outstanding audit finding for any HUD program, or an 

outstanding monetary obligation to HUD that is in arrears, or for which 

a repayment schedule has not been established and agreed to. The Field 

Office manager may waive this restriction if he or she finds that the 

applicant has made a good faith effort to clear the audit. In no 

instance, however, shall a waiver be provided when funds are due HUD, 

unless a satisfactory arrangement for repayment of the debt has been 

made and payments are current.



[[Page 77]]



    (d) Criteria for funding. The Secretary shall establish, for each 

fiscal year, an amount for which eligible applicants may apply. Grant 

amounts will be based on population of the applicant and its performance 

in previous years. In determining performance, HUD will consider program 

achievements and the applicant's effectiveness in using program funds. 

Effectiveness in using program funds shall be measured by reviewing 

audit, monitoring and performance reports.

    (e) Application and performance reporting. Application and 

performance reporting requirements are as follows:

    (1) Applicants must submit applications within 90 days of the 

notification of the grant amount from HUD.

    (2) Applicants shall prepare and publish or post a proposed 

application in accordance with the citizen participation requirements of 

paragraph (h) of this section.

    (3) Applicants shall submit to HUD a final application containing 

its community development objectives and activities. This application 

shall be submitted to the appropriate HUD office, together with the 

required certifications, in a form prescribed by HUD.

    (4) Grant recipients must submit to HUD an annual performance report 

on progress achieved on previously funded grants. Grant recipients must 

submit the report at a time and in a format determined by HUD. The 

report should be made available to citizens in accordance with the 

requirements of paragraph (h)(1)(iv) of this section.

    (f) Costs incurred by the applicant. (1) Notwithstanding any other 

provision of this part, HUD will not reimburse or recognize any costs 

incurred by an applicant before submission of the application to HUD.

    (2) Normally, HUD will not reimburse or recognize costs incurred 

before HUD approval of the application for funding. However, under 

unusual circumstances, the Field office manager may consider and 

conditionally approve written requests to recognize and reimburse costs 

that will be incurred after submission of the application but before it 

is approved where failure to do so would impose undue or unreasonable 

hardship on the applicant. Conditional approvals will be made only 

before the costs are incurred and where the conditions for release of 

funds have been met in accordance with 24 CFR 58.22, and with the 

understanding that HUD has no obligation whatsoever to approve the 

application or to reimburse the applicant should the application be 

disapproved.

    (g) Criteria for conditional approval. HUD may approve a grant 

subject to specified conditions. In any such case, the obligation and 

utilization of funds may be restricted. The reasons for the conditional 

appproval and the actions necessary to remove the conditions shall be 

specified. Failure of the applicant to satisfy the conditions may result 

in a termination of the grant. A conditional approval may be granted 

under any of the following circumstances:

    (1) When local environmental reviews under 24 CFR part 58 have not 

yet been completed;

    (2) To ensure that actual provision of other resources required to 

complete the proposed activities will be available within a reasonable 

period of time;

    (3) To ensure that a project can be completed within its estimated 

costs;

    (4) Where the grantee is required to satisfy an outstanding debt due 

to HUD under a payment plan executed between the grantee and the 

Department;

    (5) Pending resolution of problems related to specific projects or 

the capability of the grantee to obtain resources needed to carry out, 

operate or maintain the project; or

    (6) Pending approval of site and neighborhood standards for proposed 

housing projects.

    (h) Citizen participation. (1) The applicant shall provide for 

appropriate citizen participation in the application and amendment 

process. The applicant must, at least, do each of the following:

    (i) Furnish citizens with information concerning the amount of funds 

available for community development and housing activities and the range 

of activities that may be undertaken, including the estimated amount 

proposed to be used for activities that will benefit persons of low and 

moderate income, and the plans of the grantee for minimizing 

displacement of persons as a result of activities assisted with such 

funds and to assist persons actually displaced;



[[Page 78]]



    (ii) Hold one or more public hearings (scheduled at convenient times 

and places) to obtain the views of citizens on community development and 

housing needs;

    (iii) Develop and publish or post the community development 

statement in such a manner as to afford affected citizens an opportunity 

to examine its contents and to submit comments;

    (iv) Afford citizens an opportunity to review and comment on the 

applicant's performance under any community development block grant.

    (2) Before submitting the application to HUD, the applicant shall 

certify that it has:

    (i) Met the requirements of paragraph (h)(1) of this section;

    (ii) Considered any comments and views expressed by citizens; and

    (iii) If appropriate, modified the application accordingly and made 

the modified application available to citizens.



[50 FR 37526, Sept. 16, 1985, as amended at 60 FR 56914, Nov. 9, 1995; 

61 FR 32269, June 21, 1996]



    Effective Date Note: At 61 FR 32269, June 21, 1996, Sec.  

570.405(e)(4) was revised. This section contains information collection 

and recordkeeping requirements and will not become effective until 

approval has been given by the Office of Management and Budget.