[Code of Federal Regulations]
[Title 24, Volume 3]
[Revised as of April 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 24CFR570.421]

[Page 95-97]
 
                 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 funding 
economic development activities on a competitive basis, as a competitive 
application as described in paragraph (a)(1) of this section. In

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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 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

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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.