[Code of Federal Regulations]

[Title 24, Volume 1]

[Revised as of April 1, 2006]

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

[CITE: 24CFR91.320]



[Page 578-580]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

PART 91_CONSOLIDATED SUBMISSIONS FOR COMMUNITY PLANNING AND DEVELOPMENT 

PROGRAMS--Table of Contents

 

       Subpart D_State Governments; Contents of Consolidated Plan

 

Sec.  91.320  Action plan.



    The action plan must include the following:

    (a) Standard Form 424;

    (b) A concise executive summary that includes the objectives and 

outcomes identified in the plan as well as an evaluation of past 

performance, a summary of the citizen participation and consultation 

process (including efforts to broaden public participation) (24 CFR 

91.300 (b)), a summary of comments or views, and a summary of comments 

or views not accepted and the reasons therefore (24 CFR 91.115 (b)(5)).

    (c) Resources and objectives--(1) Federal resources. The 

consolidated plan must provide a concise summary of the federal 

resources expected to be made available. These resources include grant 

funds and program income.

    (2) Other resources. The consolidated plan must indicate resources 

from private and non-federal public sources that are reasonably expected 

to be made available to address the needs identified in the plan. The 

plan must explain how federal funds will leverage those additional 

resources, including a description of how matching requirements of the 

HUD programs will be satisfied. Where the state deems it appropriate, it 

may indicate publicly owned land or property located within the state 

that may be used to carry out the purposes identified in the plan;

    (3) Annual objectives. The consolidated plan must contain a summary 

of the annual objectives the state expects to achieve during the 

forthcoming program year.

    (d) Activities. A description of the state's method for distributing 

funds to local governments and nonprofit organizations to carry out 

activities, or the activities to be undertaken by the state, using funds 

that are expected to be received under formula allocations (and related 

program income) and other HUD assistance during the program year, the 

reasons for the allocation priorities, how the proposed distribution of 

funds will address the priority needs and specific objectives described 

in the consolidated plan, and any obstacles to addressing underserved 

needs.

    (e) Outcome measures. Each state must provide outcome measures for 

activities included in its action plan in accordance with guidance 

issued by HUD. For the CDBG program, this would include activities that 

are likely to be funded as a result of the implementation of the state's 

method of distribution.

    (f) Geographic distribution. A description of the geographic areas 

of the State (including areas of low-income and minority concentration) 

in which it will direct assistance during the ensuing program year, 

giving the rationale for the priorities for allocating investment 

geographically. When appropriate, the state should estimate the 

percentage of funds they plan to dedicate to target area(s).

    (g) Affordable housing goals. The state must specify one-year goals 

for the number of households to be provided affordable housing through 

activities that provide rental assistance, production of new units, 

rehabilitation of existing units, or acquisition of existing units using 

funds made available to the state, and one-year goals for the number of 

homeless, non-homeless, and special-needs households to be provided 

affordable housing using funds made available to the state. The term 

affordable housing shall be as defined in 24 CFR 92.252 for rental 

housing and 24 CFR 92.254 for homeownership.

    (h) Homeless and other special needs activities. Activities it plans 

to undertake during the next year to address emergency shelter and 

transitional housing needs of homeless individuals and families 

(including subpopulations), to prevent low-income individuals and 

families with children (especially those with incomes below 30 percent 

of median) from becoming homeless, to help homeless persons make the 

transition to permanent housing and independent living, specific action 

steps to end



[[Page 579]]



chronic homelessness, and to address the special needs of persons who 

are not homeless identified in accordance with Sec.  91.315(e);

    (i) Barriers to affordable housing. Actions it plans to take during 

the next year to remove or ameliorate the negative effects of public 

policies that serve as barriers to affordable housing. Such policies, 

procedures, and processes include but are not limited to: land use 

controls, tax policies affecting land, zoning ordinances, building 

codes, fees and charges, growth limitations, and policies affecting the 

return on residential investment.

    (j) Other actions. Actions it plans to take during the next year to 

implement its strategic plan and address obstacles to meeting 

underserved needs, foster and maintain affordable housing (including the 

coordination of Low-Income Housing Tax Credits with the development of 

affordable housing), evaluate and reduce lead-based paint hazards, 

reduce the number of poverty level families, develop institutional 

structure, enhance coordination between public and private housing and 

social service agencies, address the needs of public housing (including 

providing financial or other assistance to troubled public housing 

agencies), and encourage public housing residents to become more 

involved in management and participate in homeownership.

    (k) Program-specific requirements. In addition, the plan must 

include the following specific information:

    (1) CDBG. The action plan must set forth the state's method of 

distribution.

    (i) The method of distribution shall contain a description of all 

criteria used to select applications from local governments for funding, 

including the relative importance of the criteria, where applicable. The 

action plan must include a description of how all CDBG resources will be 

allocated among funding categories and the threshold factors and grant 

size limits that are to be applied. The method of distribution must 

provide sufficient information so that units of general local government 

will be able to understand and comment on it, understand what criteria 

and information their application will be judged, and be able to prepare 

responsive applications. The method of distribution may provide a 

summary of the selection criteria, provided that all criteria are 

summarized and the details are set forth in application manuals or other 

official state publications that are widely distributed to eligible 

applicants. HUD may monitor the method of distribution as part of its 

audit and review responsibilities, as provided in Sec.  570.493(a)(1), 

in order to determine compliance with program requirements.

    (ii) If the state intends to help nonentitlement units of general 

local government apply for guaranteed loan funds under 24 CFR part 570, 

subpart M, it must describe available guarantee amounts and how 

applications will be selected for assistance. If a state elects to allow 

units of general local government to carry out community revitalization 

strategies, the method of distribution shall reflect the state's process 

and criteria for approving local government's revitalization strategies.

    (2) HOME. (i) The state shall describe other forms of investment 

that are not described in 24 CFR 92.205(b).

    (ii) If the state intends to use HOME funds for homebuyers, it must 

state the guidelines for resale or recapture, as required in 24 CFR 

92.254.

    (iii) If the state intends to use HOME funds to refinance existing 

debt secured by multifamily housing that is being rehabilitated with 

HOME funds, it must state its refinancing guidelines required under 24 

CFR 92.206(b). The guidelines shall describe the conditions under which 

the state will refinance existing debt. At minimum, the guidelines must:

    (A) Demonstrate that rehabilitation is the primary eligible activity 

and ensure that this requirement is met by establishing a minimum level 

of rehabilitation per unit or a required ratio between rehabilitation 

and refinancing.

    (B) Require a review of management practices to demonstrate that 

disinvestment in the property has not occurred; that the long-term needs 

of the project can be met; and that the feasibility of serving the 

targeted population over an extended affordability period can be 

demonstrated.



[[Page 580]]



    (C) State whether the new investment is being made to maintain 

current affordable units, create additional affordable units, or both.

    (D) Specify the required period of affordability, whether it is the 

minimum 15 years or longer.

    (E) Specify whether the investment of HOME funds may be state-wide 

or limited to a specific geographic area, such as a community identified 

in a neighborhood revitalization strategy under 24 CFR 91.315(g), or a 

federally designated Empowerment Zone or Enterprise Community.

    (F) State that HOME funds cannot be used to refinance multifamily 

loans made or insured by any federal program, including the CDBG 

program.

    (iv) If the state will receive funding under the American Dream 

Downpayment Initiative (ADDI) (see 24 CFR part 92, subpart M), it must 

include:

    (A) A description of the planned use of the ADDI funds;

    (B) A plan for conducting targeted outreach to residents and tenants 

of public and manufactured housing and to other families assisted by 

public housing agencies, for the purposes of ensuring that the ADDI 

funds are used to provide downpayment assistance for such residents, 

tenants, and families; and

    (C) A description of the actions to be taken to ensure the 

suitability of families receiving ADDI funds to undertake and maintain 

homeownership, such as provision of housing counseling to homebuyers.

    (3) ESG. The state shall identify the process for awarding grants to 

state recipients and a description of how the state intends to make its 

allocation available to units of local government and nonprofit 

organizations (including community and faith-based organizations).

    (4) HOPWA. For HOPWA funds, the state must specify one-year goals 

for the number of households to be provided housing through the use of 

HOPWA activities for short-term rent; mortgage and utility assistance 

payments to prevent homelessness of the individual or family; tenant-

based rental assistance; and units provided in housing facilities that 

are being developed, leased or operated with HOPWA funds, and shall 

identify the method of selecting project sponsors (including providing 

full access to grassroots faith-based and other community-based 

organizations).



[71 FR 6969, Feb. 9, 2006]