[Code of Federal Regulations]
[Title 24, Volume 3]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 24CFR570.401]

[Page 67-70]
 
                 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. 570.401  Community adjustment and economic diversification planning 
assistance.

    (a) General--(1) Purpose. The purpose of this program is to assist 
units of general local government in nonentitlement areas to undertake 
the planning of community adjustments and economic diversification 
activities, in response to physical, social, economic or governmental 
impacts on the communities generated by the actions of the Department of 
Defense (DoD) defined in paragraph (a)(2) of this section.
    (2) Impacts. Funding under this section is available only to 
communities affected by one or more of the following DoD-related 
impacts:
    (i) The proposed or actual establishment, realignment, or closure of 
a military installation;
    (ii) The cancellation or termination of a DoD contract or the 
failure to proceed with an approved major weapon system program;
    (iii) A publicly announced planned major reduction in DoD spending 
that would directly and adversely affect a unit of general local 
government and result in the loss of 1,000 or more full-time DoD and 
contractor employee positions over a five-year period in the unit of 
general local government and the surrounding area; or
    (iv) The Secretary of HUD (in consultation with the Secretary of 
DoD) determines that an action described in paragraphs (a)(2)(i)-(iii) 
of this section is likely to have a direct and significant adverse 
consequence on the unit of general local government.
    (3) Form of awards. Planning assistance will be awarded in the form 
of grants.
    (4) Program administration. HUD will publish in the Federal Register 
early in each fiscal year the amount of funds to be available for that 
fiscal year for awards under this section. HUD will accept applications 
throughout the fiscal year, and will review and consider for funding 
each application according to the threshold and qualifying factors in 
paragraphs (f) and (g) of this section.
    (b) Definitions. In addition to the definitions in Sec. 570.3 of 
this part, the following definitions apply to this section:
    (1) Adjustment planning. Generally, developing plans and proposals 
in direct response to contraction or expansion of the local economy, or 
changes in the physical development or the social conditions of the 
community, resulting from a DoD-generated impact. Typically, this 
planning includes one or more of the following tasks: Collecting, 
updating, and analyzing data; identifying problems; formulating 
solutions; proposing long- and short-term policies; recommending public- 
and private-sector actions to implement community adjustments and 
economic diversification activities; securing citizen involvement; and 
coordinating with Federal, State, and local entities with respect to the 
DoD-related impacts.
    (2) Community adjustment. Any proposed action to change the 
physical, economic, or social infrastructure within the jurisdiction or 
surrounding area, directly and appropriately in response to the DoD-
generated impact.

[[Page 68]]

    (3) Contract. (i) Any defense contract in an amount not less than $5 
million (without regard to the date on which the contract was awarded); 
and
    (ii) Any subcontract that is entered into in connection with a 
contract (without regard to the effective date of the subcontract) and 
involves not less than $500,000.
    (4) Defense facility. Any private facility producing goods or 
services pursuant to a defense contract.
    (5) DoD. The Department of Defense.
    (6) Economic diversification activities. Any public or private 
sector actions to change the local mix of industrial, commercial, and 
service sectors, or the mix of business ventures within a sector, that 
are intended to mitigate decline in the local economy resulting from 
DoD-generated impacts or, in the case of expansion of a military 
installation or a defense facility, that are intended to respond to new 
economic growth spawned by that expansion.
    (7) Military installation. Any camp, post, station, base, yard, or 
other jurisdiction of a military department that is located within any 
of the several States, the District of Columbia, the Commonwealth of 
Puerto Rico, or Guam.
    (8) Realignment. Any action that both reduces and relocates 
functions and civilian personnel positions, but does not include a 
reduction in force resulting from workload adjustments, reduced 
personnel or funding levels, or skill imbalances.
    (9) Section 107 means section 107 of the Housing and Community 
Development Act of 1974, 42 U.S.C. 5307. Section 107(b)(6) was added by 
section 801 of the Housing and Community Development Act of 1992 (Pub. 
L. 102-550, approved October 28, 1992).
    (10) Section 2391(b). The Department of Defense adjustment planning 
program as set out in 10 U.S.C. 2391(b).
    (11) Small Cities CDBG Program. The Community Development Block 
Grant program for nonentitlement areas in which the States have elected 
not to administer available program funds. The regulations governing 
this program are set out in subpart F of this part.
    (12) Surrounding area. The labor market area as defined by the 
Bureau of Labor Statistics that:
    (i) Includes all or part of the applicant's jurisdictions; and
    (ii) Includes additional areas outside the jurisdiction.
    (c) Eligible applicants. Any unit of general local government, 
excluding units of general government that are entitlement cities or are 
included in an urban county, and which does not include Indian Tribes.
    (d) Eligible activities. Activities eligible for adjustment planning 
assistance include, generally:
    (1) Initial assessments and quick studies of physical, social, 
economic, and fiscal impacts on the community;
    (2) Preliminary identification of potential public and private 
sector actions needed for the community to initiate its response;
    (3) If timely, modification of the applicant's current comprehensive 
plan or any functional plan, such as for housing, including shelter for 
the homeless, or for transportation or other physical infrastructure;
    (4) If timely, modification of the applicant's current economic 
plans and programs, such as for business development, job training, or 
industrial or commercial development;
    (5) Preparation for and conduct of initial community outreach 
activities to begin involving local citizens and the private sector in 
planning for adjustment and diversification;
    (6) Environmental reviews related to DoD-related impacts;
    (7) Initial identification of and coordination with Federal, State 
and local entities that may be expected to assist in the community's 
adjustment and economic development; and with State-designated 
enterprise zones, and Federal empowerment zones and enterprise 
communities when selected and announced.
    (8) Any other planning activity that may enable the community to 
organize itself, establish a start-up capacity to plan, propose specific 
plans and programs, coordinate with appropriate public or private 
entities, or qualify more quickly for the more substantial planning 
assistance available from DoD.

[[Page 69]]

    (e) Ineligible activities. Activities ineligible for adjustment 
planning assistance are:
    (1) Base re-use planning.
    (2) Site planning, architectural and engineering studies, 
feasibility and cost analyses and similar planning for specific projects 
to implement community adjustment or economic diversification, unless as 
last resort funding for those applicants which are unable to obtain 
planning assistance from other sources.
    (3) Planning by communities which are encroaching on military 
installations.
    (4) Demonstration planning activities intended to evolve new 
planning techniques for impacted communities.
    (5) Any planning activity proposed to supplement or replace planning 
that has been or is being assisted by the DoD Sec. 2391(b) adjustment 
planning program.
    (6) Any other planning activity the purpose of which is not 
demonstrably in direct response to a DOD-related impact triggered by one 
or more of the four criteria specified in paragraph (a)(2) of this 
section.
    (f) Threshold requirements. No application will qualify for funding 
unless it meets the following requirements:
    (1) Verification by HUD that the applicant is a unit of general 
government in a nonentitlement area.
    (2) Verification by HUD and DoD that a triggering event described in 
paragraph (a)(2) of this section has occurred or will occur.
    (3) With respect to communities affected by the 49 base closings and 
28 realignments listed by the 1991 Base Closure and Realignment 
Commission, verification by DoD that it has provided no prior funding 
and that the applicant may benefit from start-up planning assistance 
from HUD.
    (4) Determination by HUD that the proposed planning activities are 
eligible.
    (5) Determination by HUD that the submission requirements in 
paragraph (h) of this section have been satisfied.
    (g) Qualifying factors. HUD will make funding decisions on qualified 
applications on the basis of the factors listed below, in the order of 
such applications received, while program funds remain available. HUD 
will also request and consider advise from DoD's Office of Economic 
Assistance concerning the relative merits of each application.
    (1) The adequacy of the applicant's initial assessment of actual or 
probable impacts on the community and the surrounding area;
    (2) The adequacy and appropriateness of the start-up planning 
envisioned by the applicant in response to the impacts;
    (3) The type, extent, and adequacy of coordination that the 
applicant has achieved, or plans to achieve, in order to undertake 
planning for community adjustment and economic diversification.
    (4) The cost-effectiveness of the proposed budget to carry out the 
planning work envisioned by the applicant;
    (5) The capability of the organization the applicant proposes to do 
the planning;
    (6) The credentials and experience of the key staff the applicant 
proposes to do the planning;
    (7) The presence of significant private sector impact, as measured 
by the extent to which the DoD-generated impact is projected to decrease 
or increase the employment base by 10% or more;
    (8) The presence of significant public sector impact, as measured by 
the extent to which the DoD-generated impact is projected to decrease or 
increase the applicant's capital and operating budgets for the next 
fiscal year by 10% or more;
    (9) The degree of urgency, to the extent that a suddenly announced 
action, e.g. a plant closing, is officially scheduled to occur within a 
year of the date of application.
    (h) Submission requirements. Applicants may submit applications at 
any time to: Director, Office of Technical Assistance, room 7214, 451 
Seventh Street, SW., Washington, DC 20410. Each application (an original 
and three copies) shall include the following:
    (1) The Standard Form SF-424 as a face sheet, signed and dated by a 
person authorized to represent and contractually or otherwise commit the 
applicant;

[[Page 70]]

    (2) A concise title and brief abstract of the proposed planning 
work, including the total cost;
    (3) A narrative that:
    (i) Documents one or more of the triggering events described in 
paragraph (a)(2) of this section that qualifies the applicant to apply 
for planning assistance for community adjustments and economic 
diversification;
    (ii) Provides an initial assessment of actual or probable impacts on 
the applicant community and the surrounding area;
    (iii) Provides an initial assessment of the type and extent of 
start-up planning envisioned by the applicant in response to the DoD-
generated impact; and
    (iv) Describes the measures by which the applicant has already 
coordinated, or plans to coordinate, with the DoD Office of Economic 
Assistance, the Economic Development Administration of the Department of 
Commerce, the Department of Labor, any military department, or any other 
appropriate Federal agency; appropriate State agencies, specifically 
including the agency administering the Small Cities CDBG Program; 
appropriate State-designated enterprise zones; appropriate Federal 
empowerment zones and enterprise communities, when selected and 
announced; appropriate other units of general local government in the 
nonentitlement area; appropriate businesses, corporations, and defense 
facilities concerned with impacts on the applicant community; and 
homeless nonprofit organizations, with respect to title V of the Stewart 
B. McKinney Act (42 U.S.C. 11411-11412), requiring the Federal property 
be considered for use in assisting the homeless.
    (4) A Statement of Work describing the specific project tasks 
proposed to be undertaken in order to plan for community adjustment and 
economic diversification activities;
    (5) A proposed budget showing the estimated costs and person-days of 
effort for each task, by cost categories, with supporting documentation 
of costs and a justification of the person-days of effort;
    (6) A description of the qualifications of the proposed technical 
staff, including their names and resumes;
    (7) A work plan that describes the schedule for accomplishing the 
tasks described in the Statement of Work, the time needed to do each 
task, and the elapsed time needed for all the tasks; and
    (8) Other materials, as prescribed in the application kit; these 
materials will include required certifications dealing with: Drug-Free 
Workplace Requirements; Disclosure Regarding Payments to Influence 
Certain Federal Transactions; and Prohibition Regarding Excessive Force.
    (i) Approval procedures--(1) Acceptance. HUD's acceptance of an 
application meeting the threshold requirements of paragraph (f) does not 
assure a commitment to provide funding or to provide the full amount 
requested. HUD may elect to negotiate both proposed tasks and budgets in 
order to promote more cost-effective planning.
    (2) Notification. HUD will provide notification about whether a 
project will be funded, rejected, or held for further consideration by 
HUD and DoD.
    (3) Form of award. HUD will award funds in the form of grants.
    (4) Administration. Project administration will be governed by the 
terms of individual awards and by the following provisions of this part:
    (i) Subpart A, Sec. 570.5;
    (ii) Subpart E, Sec. Sec. 570.400(d), (e), (f), and (g);
    (iii) Subpart J, Sec. Sec. 570.500(c), 570.501, 570.502, 570.503, 
and 570.509;
    (iv) Subpart K, Sec. Sec. 570.601, 570.602, 570.609, 570.610, and 
570.611.

The environmental review requirements of 24 CFR part 58 do not apply.

(Approved by the Office of Management and Budget under control number 
2535-0084)

[59 FR 15016, Mar. 30, 1994]