[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: 24CFR570.3]

[Page 33-36]
 
                 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 A_General Provisions
 
Sec. 570.3  Definitions.

    The terms HUD and Secretary are defined in 24 CFR part 5. All of the 
following definitions in this section that rely on data from the United 
States Bureau of the Census shall rely upon the data available from the 
latest decennial census.
    Act means title I of the Housing and Community Development Act of 
1974 as amended (42 U.S.C. 5301 et seq.).
    Age of housing means the number of year-round housing units, as 
further defined in section 102(a)(11) of the Act.
    Applicant means a State, unit of general local government, or an 
Indian tribe which makes application pursuant to the provisions of 
subpart E, F, G or M.
    Buildings for the general conduct of government shall have the 
meaning provided in section 102(a)(21) of the Act.
    CDBG funds means Community Development Block Grant funds, including 
funds received in the form of grants under subpart D, F, or Sec. 
570.405 of this part, funds awarded under section 108(q) of the Housing 
and Community Development Act of 1974, loans guaranteed under subpart M 
of this part, urban renewal surplus grant funds, and program income as 
defined in Sec. 570.500(a).
    Chief executive officer of a State or unit of general local 
government means the elected official or the legally designated 
official, who has the primary responsibility for the conduct of that 
entity's governmental affairs. Examples of the ``chief executive 
officer'' of a unit of general local government are: the elected mayor 
of a municipality; the elected county executive of a county; the 
chairperson of a county commission or board in a county that has no 
elected county executive; and the official designated pursuant to law by 
the governing body of a unit of general local government.
    City means the following:
    (1) For purposes of Entitlement Community Development Block Grant 
and Urban Development Action Grant eligibility:
    (i) Any unit of general local government that is classified as a 
municipality by the United States Bureau of the Census, or
    (ii) Any other unit of general local government that is a town or 
township and that, in the determination of the Secretary:
    (A) Possesses powers and performs functions comparable to those 
associated with municipalities;
    (B) Is closely settled (except that the Secretary may reduce or 
waive this requirement on a case by case basis for the purposes of the 
Action Grant program); and
    (C) Contains within its boundaries no incorporated places as defined 
by the United States Bureau of the Census that have not entered into 
cooperation agreements with the town or township for a period covering 
at least 3 years to undertake or assist in the undertaking of essential 
community development and housing assistance activities. The 
determination of eligibility of a town or township to qualify as a city 
will be based on information available from the United States Bureau of 
the Census and information provided by the town or township and its 
included units of general local government.
    (2) For purposes of Urban Development Action Grant eligibility only, 
Guam, the Virgin Islands, American

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Samoa, the Commonwealth of the Northern Mariana Islands, the counties of 
Kauai, Maui, and Hawaii in the State of Hawaii, and Indian tribes that 
are eligible recipients under the State and Local Government Fiscal 
Assistance Act of 1972 and located on reservations in Oklahoma as 
determined by the Secretary of the Interior or in Alaskan Native 
Villages.
    Community Development Financial Institution has the same meaning as 
used in the Community Development Banking and Financial Institutions Act 
of 1994 (12 U.S.C. 4701 note).
    Consolidated plan. The plan prepared in accordance with 24 CFR part 
91, which describes needs, resources, priorities and proposed activities 
to be undertaken with respect to HUD programs, including the CDBG 
program. An approved consolidated plan means a consolidated plan that 
has been approved by HUD in accordance with 24 CFR part 91.
    Discretionary grant means a grant made from the various Special 
Purpose Grants in accordance with subpart E of this part.
    Entitlement amount means the amount of funds which a metropolitan 
city is entitled to receive under the Entitlement grant program, as 
determined by formula set forth in section 106 of the Act.
    Extent of growth lag shall have the meaning provided in section 
102(a)(12) of the Act.
    Extent of housing overcrowding shall have the meaning provided in 
section 102(a)(10) of the Act.
    Extent of poverty means the number of persons whose incomes are 
below the poverty level based on data compiled and published by the 
United States Bureau of the Census available from the latest census 
referable to the same point or period in time and the latest reports 
from the Office of Management and Budget. For purposes of this part, the 
Secretary has determined that it is neither feasible nor appropriate to 
make adjustments at this time in the computations of ``extent of 
poverty'' for regional or area variations in income and cost of living.
    Family means all persons living in the same household who are 
related by birth, marriage or adoption.
    Household means all the persons who occupy a housing unit. The 
occupants may be a single family, one person living alone, two or more 
families living together, or any other group of related or unrelated 
persons who share living arrangements.
    Income. For the purpose of determining whether a family or household 
is low- and moderate-income under subpart C of this part, grantees may 
select any of the three definitions listed below for each activity, 
except that integrally related activities of the same type and 
qualifying under the same paragraph of Sec. 570.208(a) shall use the 
same definition of income. The option to choose a definition does not 
apply to activities that qualify under Sec. 570.208(a)(1) (Area benefit 
activities), except when the recipient carries out a survey under Sec. 
570.208(a)(1)(vi). Activities qualifying under Sec. 570.208(a)(1) 
generally must use the area income data supplied to recipients by HUD. 
The three definitions are as follows:
    (1)(i) ``Annual income'' as defined under the Section 8 Housing 
Assistance Payments program at 24 CFR 813.106 (except that if the CDBG 
assistance being provided is homeowner rehabilitation under Sec. 
570.202, the value of the homeowner's primary residence may be excluded 
from any calculation of Net Family Assets); or
    (ii) Annual income as reported under the Census long-form for the 
most recent available decennial Census. This definition includes:
    (A) Wages, salaries, tips, commissions, etc.;
    (B) Self-employment income from own nonfarm business, including 
proprietorships and partnerships;
    (C) Farm self-employment income;
    (D) Interest, dividends, net rental income, or income from estates 
or trusts;
    (E) Social Security or railroad retirement;
    (F) Supplemental Security Income, Aid to Families with Dependent 
Children, or other public assistance or public welfare programs;
    (G) Retirement, survivor, or disability pensions; and
    (H) Any other sources of income received regularly, including 
Veterans' (VA) payments, unemployment compensation, and alimony; or

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    (iii) Adjusted gross income as defined for purposes of reporting 
under Internal Revenue Service (IRS) Form 1040 for individual Federal 
annual income tax purposes.
    (2) Estimate the annual income of a family or household by 
projecting the prevailing rate of income of each person at the time 
assistance is provided for the individual, family, or household (as 
applicable). Estimated annual income shall include income from all 
family or household members, as applicable. Income or asset enhancement 
derived from the CDBG-assisted activity shall not be considered in 
calculating estimated annual income.
    Indian tribe shall have the meaning provided in section 102(a)(17) 
of the Act.
    Low- and moderate-income household means a household having an 
income equal to or less than the Section 8 low-income limit established 
by HUD.
    Low- and moderate-income person means a member of a family having an 
income equal to or less than the Section 8 low-income limit established 
by HUD. Unrelated individuals will be considered as one-person families 
for this purpose.
    Low-income household means a household having an income equal to or 
less than the Section 8 very low-income limit established by HUD.
    Low-income person means a member of a family that has an income 
equal to or less than the Section 8 very low-income limit established by 
HUD. Unrelated individuals shall be considered as one-person families 
for this purpose.
    Metropolitan area shall have the meaning provided in section 
102(a)(3) of the Act.
    Metropolitan city shall have the meaning provided in section 
102(a)(4) of the Act except that the term ``central city'' is replaced 
by ``principal city.''
    Microenterprise shall have the meaning provided in section 
102(a)(22) of the Act.
    Moderate-income household means a household having an income equal 
to or less than the Section 8 low-income limit and greater than the 
Section 8 very low-income limit, established by HUD.
    Moderate-income person means a member of a family that has an income 
equal to or less than the Section 8 low-income limit and greater than 
the Section 8 very low-income limit, established by HUD. Unrelated 
individuals shall be considered as one-person families for this purpose.
    Nonentitlement amount means the amount of funds which is allocated 
for use in a State's nonentitlement areas as determined by formula set 
forth in section 106 of the Act.
    Nonentitlement area shall have the meaning provided in section 
102(a)(7) of the Act.
    Population means the total resident population based on data 
compiled and published by the United States Bureau of the Census 
available from the latest census or which has been upgraded by the 
Bureau to reflect the changes resulting from the Boundary and Annexation 
Survey, new incorporations and consolidations of governments pursuant to 
Sec. 570.4, and which reflects, where applicable, changes resulting 
from the Bureau's latest population determination through its estimating 
technique using natural changes (birth and death) and net migration, and 
is referable to the same point or period in time.
    Small business means a business that meets the criteria set forth in 
section 3(a) of the Small Business Act (15 U.S.C. 631, 636, 637).
    State shall have the meaning provided in section 102(a)(2) of the 
Act.
    Unit of general local government shall have the meaning provided in 
section 102(a)(1) of the Act.
    Urban county shall have the meaning provided in section 102(a)(6) of 
the Act. For the purposes of this definition, HUD will determine whether 
the county's combined population contains the required percentage of 
low- and moderate-income persons by identifying the number of persons 
that resided in applicable areas and units of general local government 
based on data from the most recent decennial census, and using income 
limits that would have applied for the year in which that census was 
taken.
    Urban Development Action Grant (UDAG) means a grant made by the

[[Page 36]]

Secretary pursuant to section 119 of the Act and subpart G of this part.

[53 FR 34437, Sept. 6, 1988; 53 FR 41330, Oct. 21, 1988, as amended at 
56 FR 56126, Oct. 31, 1991; 60 FR 1915, 1943, Jan. 5, 1995; 60 FR 56909, 
Nov. 9, 1995; 61 FR 5209, Feb. 9, 1996; 61 FR 11475, Mar. 20, 1996; 61 
FR 18674, Apr. 29, 1996; 68 FR 69582, Dec. 12, 2003]