[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: 24CFR570.703]

[Page 153]
 
                 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 M_Loan Guarantees
 
Sec. 570.703  Eligible activities.

    Guaranteed loan funds may be used for the following activities, 
provided such activities meet the requirements of Sec. 570.200. 
However, guaranteed loan funds may not be used to reimburse the CDBG 
program account or line of credit for costs incurred by the public 
entity or designated public agency and paid with CDBG grant funds or 
program income.
    (a) Acquisition of improved or unimproved real property in fee or by 
long-term lease, including acquisition for economic development 
purposes.
    (b) Rehabilitation of real property owned or acquired by the public 
entity or its designated public agency.
    (c) Payment of interest on obligations guaranteed under this 
subpart.
    (d) Relocation payments and other relocation assistance for 
individuals, families, businesses, nonprofit organizations, and farm 
operations who must relocate permanently or temporarily as a result of 
an activity financed with guaranteed loan funds, where the assistance 
is:
    (1) Required under the provisions of Sec. 570.606(b) or (c); or
    (2) Determined by the public entity to be appropriate under the 
provisions of Sec. 570.606(d).
    (e) Clearance, demolition and removal, including movement of 
structures to other sites, of buildings and improvements on real 
property acquired or rehabilitated pursuant to paragraphs (a) and (b) of 
this section.
    (f) Site preparation, including construction, reconstruction, or 
installation of public and other site improvements, utilities, or 
facilities (other than buildings), which is:
    (1) Related to the redevelopment or use of the real property 
acquired or rehabilitated pursuant to paragraphs (a) and (b) of this 
section, or
    (2) For an economic development purpose.
    (g) Payment of issuance, underwriting, servicing, trust 
administration and other costs associated with private sector financing 
of debt obligations under this subpart.
    (h) Housing rehabilitation eligible under Sec. 570.202.
    (i) The following economic development activities:
    (1) Activities eligible under Sec. 570.203; and
    (2) Community economic development projects eligible under Sec. 
570.204.
    (j) Construction of housing by nonprofit organizations for 
homeownership under section 17(d) of the United States Housing Act of 
1937 (Housing Development Grants Program, 24 CFR part 850) or title VI 
of the Housing and Community Development Act of 1987 (Nehemiah Housing 
Opportunity Grants Program, 24 CFR part 280).
    (k) A debt service reserve to be used in accordance with 
requirements specified in the contract entered into pursuant to Sec. 
570.705(b)(1).
    (l) Acquisition, construction, reconstruction, rehabilitation, or 
installation of public facilities (except for buildings for the general 
conduct of government), public streets, sidewalks, and other site 
improvements and public utilities.
    (m) In the case of applications by public entities which are, or 
which contain, ``colonias'' as defined in section 916 of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 5306 note), as 
amended by section 810 of the Housing and Community Development Act of 
1992, acquisition, construction, reconstruction, rehabilitation or 
installation of public works and site or other improvements which serve 
the colonia.

[59 FR 66604, Dec. 27, 1994, as amended at 61 FR 11481, Mar. 20, 1996]