[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: 24CFR570.430]

[Page 99]
 
                 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 Program
 
Sec. 570.430  Hawaii program operation requirements.

    (a) Limitation on planning and administrative costs. For grants made 
with allocations prior to FY 1995, no more than 20 percent of the sum of 
the grant plus program income received during the grant period shall be 
expended for planning and program administrative costs. For grants 
received from allocations in FY 1995 and thereafter, a grantee will be 
considered to be in conformance with the requirements of Sec. 
570.200(g) if funds obligated for planning and administration during the 
most recently completed program year do not exceed 20 percent of the sum 
of the grant made for that program year and the program income received 
from post FY 1994 grants during that program year.
    (b) Performance and evaluation reports. Grantees will follow the 
requirements of Sec. 570.507(a) for entitlement grant recipients for 
all grants received in FY 1995 and thereafter. Grantees will continue 
following the requirements of Sec. 570.507(a) for HUD-administered 
small cities grants for grants received prior to FY 1995 until those 
grants are closed out.
    (c) Grant closeouts. Grants received prior to FY 1995 shall be 
closed out in accordance with the procedures in Sec. 570.509. Grants 
received in FY 1995 and thereafter shall not be closed out individually. 
A grantee's entire program shall be closed upon program completion if a 
grantee ceases its participation in the Small Cities Program.
    (d) Public Services. Starting with the FY 1996 grant, grantees may 
follow the provisions of Sec. 570.201(e)(1) that refer to entitlement 
grantees, allowing grantees to use 15 percent of the program income 
received in the previous program year in addition to 15 percent of the 
grant amount for public services.
    (e) Compliance with the primary objective. Starting with the FY 1995 
grant, grantees may select a time period of one, two or three program 
years in which to meet the requirement that not less than 70 percent of 
the aggregate of CDBG fund expenditures be for activities benefitting 
low- and moderate- income persons. Grants made from allocations prior to 
FY 1995 will be considered individually for meeting the primary 
objective, and expenditures for grants from pre-FY 1995 allocations made 
during and after FY 1995 will not be considered in determining whether 
the primary objective has been met for post-1994 allocations. If the 
State of Hawaii decides to administer the Community Development Block 
Grant Program for nonentitlement units of general local government in 
Hawaii, the State will be bound by the time period for meeting the 
primary objective that was chosen by each nonentitlement grantee within 
the State until those time periods have expired.
    (f) Program amendments for grants received prior to FY 1995. 
Grantees must follow the requirements of 24 CFR 91.505 when amending 
their program with regard to grants received prior to FY 1995. For 
purposes of this paragraph (f), the term consolidated plan as used in 24 
CFR 91.505 means an application submitted under the Hawaii program for 
pre-FY 1995 funds. Also for purposes of this paragraph (f), to comply 
with the requirements of 24 CFR 91.505, grantees must refer to their 
current citizen participation plans (adopted in accordance with 24 CFR 
91.505) to determine the criteria for substantial amendment and the 
citizen participation process to be followed.

(Approved by the Office of Management and Budget under control number 
2506-0020)