[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: 24CFR570.421]



[Page 94-96]

 

                 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 F_Small Cities and Insular Areas Programs

 

Sec.  570.421  New York Small Cities Program design.



    (a) Selection system--(1) Competitive applications. Each competitive 

application will be rated and scored against at least the following 

factors:

    (i) Need-absolute number of persons in poverty as further explained 

in the NOFA;

    (ii) Need-percent of persons in poverty as further explained in the 

NOFA;

    (iii) Program Impact; and

    (iv) Fair Housing and Equal Opportunity, which may include the 

applicant's Section 3 plan and implementation efforts with respect to 

actions to affirmatively further fair housing. The NOFA described in 

paragraph (b) of this section will contain a more detailed description 

of these factors, and the relative weight that each factor will be 

given.

    (2) In addition HUD reserves the right to establish minimal 

thresholds for selection factors and otherwise select grants in 

accordance with Sec.  570.425 and the applicable NOFA.

    (3) Imminent threats to public health and safety. The criteria for 

these grants are described in Sec.  570.424.

    (4) Repayment of Section 108 loans. The criteria for these grants 

are described in Sec.  570.432.

    (5) Economic development grants. HUD intends to use the Section 108 

loan guarantee program to the maximum extent feasible to fund economic 

development projects in the nonentitlement areas of New York. In the 

event that there are not enough Section 108 loan guarantee funds 

available to fund viable economic development projects, if a project 

needs a grant in addition to a loan guarantee to make it viable, or if 

the project does not meet the requirements of the Section 108 program 

but is eligible for a grant under this subpart, HUD may fund Economic 

Development applications as they are determined to be fundable in a 

specific amount by HUD up to the sum set aside for economic development 

projects in a notice of funding availability, notwithstanding paragraph 

(g) of this section. HUD also has the option in a NOFA of



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funding economic development activities on a competitive basis, as a 

competitive application as described in paragraph (a)(1) of this 

section. In order for an applicant to receive Small Cities grant funds 

on a noncompetitive basis, the field office must determine that the 

economic development project will have a substantial impact on the needs 

identified by the applicant.

    (b) Notice of funding availability. HUD will issue one or more 

Notice(s) of Funding Availability (NOFA) each fiscal year which will 

indicate the amount of funds available, the annual grant limits per 

grantee, type of grants available, the application requirements, and the 

rating factors that will be used for those grants which are competitive. 

A NOFA may set forth, subject to the requirements of this subpart, 

additional selection criteria for all grants.

    (c) Eligible applicants. (1) Eligible applicants in New York are 

units of general local government, excluding: Metropolitan cities, urban 

counties, units of general local government which are participating in 

urban counties or metropolitan cities, even if only part of the 

participating unit of government is located in the urban county or 

metropolitan city. Indian tribes are also ineligible for assistance 

under this subpart. An application may be submitted individually or 

jointly by eligible applicants.

    (2) Counties, cities, towns, and villages may apply and receive 

funding for separate projects to be done in the same jurisdiction. Only 

one grant will be made under each funding round for the same type of 

project to be located within the jurisdiction of a unit of general local 

government (e.g., both the county and village cannot receive funding for 

a sewer system to be located in the same village, but the county can 

receive funding for a sewer system that is located in the same village 

as a rehabilitation project for which the village receives funding). The 

NOFA will contain additional information on applicant eligibility.

    (3) Counties may apply on behalf of units of general local 

government located within their jurisdiction when the unit of general 

local government has authorized the county to apply. At the time that 

the county submits its application for funding, it must submit a 

resolution by the governing body of the unit of local government that 

authorizes the county to submit an application on behalf of the unit of 

general local government. The county will be considered the grantee and 

will be responsible for executing all grant documents. The county is 

responsible for ensuring compliance with all laws, regulations, and 

Executive Orders applicable to the CDBG Program. HUD will deal 

exclusively with the county with respect to issues of program 

administration and performance, including remedial actions. The unit of 

general local government will be considered the grantee for the purpose 

of determining grant limits. The unit of general local government's 

statistics will be used for purposes of the selection factors referred 

to in Sec.  570.421(a).

    (d) Public service activities cap. Public service activities may be 

funded up to a maximum of fifteen (15) percent of a State's 

nonentitlement allocation for any fiscal year. HUD may award a grant to 

a unit of general local government for public service activities with up 

to 100 percent of the funds intended for public service activities. HUD 

will apply the 15 percent statewide cap to public service activities by 

funding public service activities in the highest rated applications in 

each NOFA until the cap is reached.

    (e) Activities outside an applicant's boundaries. An applicant may 

conduct eligible CDBG activities outside its boundaries. These 

activities must be demonstrated to be appropriate to meeting the 

applicant's needs and objectives, and must be consistent with State and 

local law. This provision includes using funds provided under this 

subpart in a metropolitan city or an urban county.

    (f) Multiyear plans. HUD will not make any new multiyear commitments 

for NOFAs published in calendar year 1997 or later. HUD will continue to 

honor the terms of the multiyear plans that were approved under the 

provisions of NOFAs published prior to calendar year 1997.

    (g) Maximum grant amount. The maximum grant amount that will be 

awarded to a single unit of general



[[Page 96]]



local government in response to the annual Small Cities NOFA published 

in calendar year 1997 or later is $400,000, except that counties may 

apply for up to $600,000 in HUD-administered Small Cities funds. HUD may 

specify lower grant limits in the NOFA, which may include different 

limits for different types of grants available or different types of 

applicants. This paragraph (g) does not apply to multiyear plans that 

were approved under the provisions of NOFAs published prior to calendar 

year 1997, nor does it apply to grants awarded in connection with 

paragraphs (a)(3) through (a)(5) of this section. The maximum limits in 

this paragraph (g) apply to grants for economic development projects 

awarded under NOFAs in which there is no set-aside of funds for such 

projects.