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(b) Displacement made necessary by improvement of private properties. The displacement of a site occupant from an interim assistance project area is deemed made necessary by improvement of private properties if the vacation of the private real property occurs on or after the commencement of improvement activities, or the receipt of notice by the site occupant that improvements will be required with respect to private real property occupied by the site occupant, and if:

(1) The improvement is necessary to eliminate the most immediate dangers to public health and safety, and the agency so determines, and the improvement cannot reasonably by undertaken without the vacation of the real property by the site occupant and the agency so determines. No claim based upon interim assistance involving improvement of private properties shall be approved unless the agency shall have determined that the claimant was displaced by such activities. The determination shall be supported by a statement by the agency giving the factual basis on which the determination was made; or

(2) In the case of a tenant, the owner has increased the rent, or has notified the tenant of an increase in rent, amounting to not less than 25 percent in the case of a business concern and not less than 10 percent in the case of an individual or family: Provided, That in the case of an individual or family the increase shall also result in a rent exceeding the standards established by the agency for displacees' ability to pay.

(c) Displacement made necessary by acquisition. The displacement of a site occupant from an interim assistance project area is deemed made necessary by acquisition if the vacation of the real property occurs after the agency has acquired legal or equitable title or the right to possession and has ordered the site occupant to vacate the real property.

(d) Displacement made necessary by demolition of unfit structures. The displacement of a site occupant from an interim assistance project area is deemed made necessary by demolition of unfit structures if the vacation of the real property occurs under the following circumstances:

(1) The structures occupying the real property are structually unsound or unfit for human habitation and constitute a public nuisance and serious hazard to the public health and safety, and the agency has so determined; and

(2) The vacation of the real property occurs after the agency has ordered the real property to be vacated and demolished. § 41.25 Low-rent public housing.

(a) Displacement. A site occupant is eligible for a relocation payment if the displacement of the site occupant is:

(1) From real property within the low-rent public housing project area on or after the date of execution of the pertinent annual contributions contract (or the date of tentative site approval by HUD, whichever date is later); and

(2) Made necessary by the acquisition of the real property by the LHA.

(b) Displacement made necessary by acquisition. A site occupant of real property within the low-rent public housing area on the date of execution of the applicable annual contributions contract (or the date of tentative site approval by HUD, whichever date is later), wnich contemplates acquisition of the property, regardless of when or if such acquisition takes place, and a site occupant of the property at the time of its acquisition may be deemed displaced by the acquisition upon vacating the property. For this purpose, acquisition means the obtaining by the LHA of title ts, or the right to possession of, the real property. § 41.26 Open-space land, urban beauti

fication, and historic preservation. (a) Moving expenses and actual direct loss of property. A site occupant is deemed displaced by the acquisition of real property for open-space use, urban beautification, or historic preservation and is eligible for a relocation payment for moving expenses and actual direct loss of property if:

(1) The acquisition of real property necessitates its vacation; and

(2) The site occupant is (i) an occupant of the real property on the date of execution of a Federal grant contract authorizing the acquisition of the real property (or, if HUD concurrence is given for the acquisition of the real property prior to its approval of a Federal grant contract, the date of such HUD con•currence, provided that in the latter case a Federal grant contract for the project is thereafter executed) regardless of when or if such acquisition takes place, or (ii) the site occupant is an occupant of the real property at the time of its acquisition.

(b) Settlement costs. A site occupant is deemed eligible for a relocation payment for settlement costs if:

(1) He is the owner of the real property at the time of transfer of title to the agency; and

(2) If the transfer of title to the real property occurs on or after the date of execution of a Federal grant contract authorizing the acquisition of the real property (or, if HUD concurrence is given for the acquisition of the real property prior to its approval of a Federal grant contract, on or after the date of such HUD concurrence, provided that a Federal grant contract for the project is thereafter executed). $ 41.27 Neighborhood facilities projects.

(a) Moving expenses and actual direct loss of property. A site occupant is deemed displaced by the project and is eligible for a relocation payment for moving expenses and actual direct loss of property if:

(1) The project necessitates vacation of real property by the claimant; and

(2) The site occupant is (i) an occupant of the real property on the date of execution of a Federal grant contract authorizing the project (or, if HUD concurrence is given for the commencement of project activities causing the displacement prior to HUD approval of a Federal grant contract, the date of such concurrence, provided that in the latter case a Federal grant contract for the project is thereafter executed), or (ii) the site occupant is the occupant of the real property on the date of its acquisition.

(b) Settlement costs. A claimant for settlement costs is eligible for a relocation payment if:

(1) He is the owner of the real property at the time of transfer to the agency or to a nonprofit agency under its control which is engaged in the carrying out of the project; and

(2) The transfer of title to the real property occurs on or after the date of execution of a Federal grant contract authorizing the acquisition of the real property (or, if HUD concurrence is given for the acquisition of the real property prior to its approval of a Federal grant contract, on or after the date of such HUD concurrence, provided that a Federal grant contract for the project is thereafter executed). § 41.28 Public facility loans; grants for

basic water and sewer facilities; and grants for advance acquisition of

land. (a) Displacement. A site occupant is eligible for a relocation payment if:

(1) The site occupant is displaced from the real property within the project area on or after the date of the filing of an application for Federal financial assistance; and

(2) A Federal financial assistance contract is executed under title II of the Housing Amendments of 1955 (42 U.S.C. 1491-1497) or section 702 or 704 of the Housing and Urban Development Act of 1965 (42 U.S.C. 3102 or 3104); and

(3) The acquisition or use of such real property is determined by HUD to be necessary in connection with a project under the program; and

(4) The site occupant vacates after (1) the Agency acquires title to or use of the. property in connection with the program; or (ii) the agency becomes entitled to: possession of the real property pursuant:) to a proceeding in condemnation; or (iii) a binding contract for the purchase of the real property is entered into by the Agency and the owner of such real property if, in fact, the real property is not occupied by another occupant prior to acquisition of title to, or the right of possession of, the real property by the; agency.

(b) Settlement costs. A claimant is : eligible for a relocation payment for settlement costs if he is the owner of the real property at the time of the transfer of such real property to the ! agency. § 41.29 Model Cities.

A site occupant is eligible for relocation payment if the displacement of the site occupant is:

(a) From real property, on or after (1) the date of HUD approval of a comprehensive city demonstration program (or an amendment thereof) that identifies the undertaking resulting in the displacement as being carried out in connection with the program, or (2) such earlier date as may be approved by HUD for a specific undertaking upon the request of a city (provided that in both cases a Federal financial assistance contract is thereafter, or has been, executed and that in the latter case HUD subsequently aproves a comprehensive city demonstration program, or an amendment thereof, that identifies the undertaking as one being carried out in connection with the program); and

(b) On or after (1) receipt of a notice to vacate from the owner of the property (or of a notice of increase in rent for the rent period involved amounting to not less than 25 percent in the case of a business concern and not less than 10 percent in the case of an individual or family if in the latter case the increase results in a rent exceeding the standards established by the city for the displacees' ability to pay) or, in the case of an owner-occupant, the commencement of activities which make it necessary (as determined by the city) to vacate the property; or (2) such earlier date fixed by HUD on the basis of a determination that the move was reasonably in contemplation of a notice to vacate or an increase in rent as defined herein.

AUTHORITY: The provisions of this Part 51 issued under sec, 207, 81 Stat. 257; 40 U.S.C. App. 207.

SOURCE: The provisions of this Part 51 appear at 33 F.R. 6654, May 1, 1968, unless otherwise noted. § 51.1 Statement of applicable law and

scope of planning assistance. Section 207 of the Appalachian Regional Development Act of 1965 authorizes the Secretary of Housing and Urban Development to make loans, under such terms and conditions as he may prescribe, to nonprofit, limited dividend, or cooperative organizations, or to public bodies, for expenses of planning a housing construction or rehabilitation project and for obtaining the financing of such project by an insured mortgage under section 221 or 236 of the National Housing Act. Such project shall be located in an area of the Appalachian region determined by the Appalachian Regional Commission to have significant potential for future growth. (33 F.R. 16071, Nov. 1, 1968) $ 51.3 Delegation from Secretary to As

sistant Secretary-Federal Housing

Commissioner. The Secretary has delegated to the Assistant Secretary-Federal Housing Commissioner the authority to execute the powers and functions vested in the Secretary by section 207 of the Appalachian Regional Development Act of 1965. The delegation includes the authority for the Commissioner to redelegate such authority to one or more employees under his jurisdiction, and to Regional Administrators and Deputy Regional Administrators, and to authorize successive redelegations by the Commissioner's employees and by Regional employees. $ 51.5 Definitions.

As used in this part:

(a) “Act” means the Appalachian Regional Development Act of 1965, as amended.

(b) “Commission" means the Appalachian Regional Commission, its Executive Committee, or the Federal Cochairman of such Commission or his authorized representative.

(c) “Commissioner" means the Assistant Secretary-Federal Housing Com

PART 51-LOAN AND GRANT ASSIST

ANCE FOR PLANNING HOUSING

PROJECTS IN APPALACHIA Sec. 51.1 Statement of applicable law and scope

of planning assistance. 51.3

Delegation from Secretary to Assistant

Secretary-Federal Housing Com

missioner. Definitions.

Scope of assistance. 51.10 Location of proposed project. 51.13 Filing, processing and approving ap

plications. 51.15 Eligible applicants. 51.17 Use of loan or grant proceeds. 51.20 Maximum amount of loan. 51.23 Maximum amount of grant. 51.25 Waiver of repayment. 61.27 Maturity of loans-contract provi

sions, 51.30 Interest on loans.

51.5 51.7

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missioner or his authorized representa- (33 F.R. 6654, May 1, 1968, as amended at 33 ta tive.

F.R. 16071, Nov. 1, 1968] (d) “Cooperative organization" means

§ 51.7 Scope of assistance. a nonprofit cooperative ownership housing corporation or trust approved by the

The Commissioner may make loans or Commissioner which restricts permanent

grants from the fund to encourage and occupancy of the project to the members facilitate the construction or rehabilitaof the corporation or trust and which

tion of housing in any area of the

li prescribes requirements, approved by the

Appalachian Region determined by the Commissioner, for obtaining and trans

Commission to have significant potential clia ferring membership.

for future growth. The conditions of (e) "Fund” means the Appalachian

eligibility for applicants and applications Housing Fund allocated to the Secretary

for such loans or grants and the terms for carrying out the purposes of this part.

and conditions under which the proceeds more (f) “FNMA” means the Federal Na

of such loans and grants may be used are tional Mortgage Association.

specified in this part. (g) “GNMA” means the Government § 51.10 Location of proposed project. National Mortgage Association. (h) "Limited dividend organization”

The proposed project for which a loan means an entity eligible as a limited dis

or grant is sought shall be located in the tribution mortgagor under section 221 of

Appalachian region as that term is the National Housing Act and § 221.510

defined in section 403 of the Appalachian nude (c) of this title.

Regional Development Act, as amended (i) “Nonprofit organization" means a

(40 U.S.C. Apendix A, sec. 403). The procorporation or association organized for

posed project shall be located in an area purposes other than the making of profit

of such region determined by the Com

mission to have significant potential for Ve or gain for itself or any persons identified

future growth. therewith and which the Commissioner finds is in no manner controlled or di

§ 51.13 Filing, processing, and approve rected by persons or firms seeking to de

ing applications. rive profit or gain from its operation. (a) Prior to filing an application for

(j) "Public body” means a Federal a loan under this part, the applicant instrumentality, a State or political sub- shall obtain approval for such filing division or an instrumentality thereof, from the state member. The application which certifies that it is not receiving shall be filed, on a form prescribed by the financial assistance from the United Commissioner, with the FHA insuring States exclusively pursuant to the United office having jurisdiction over the area States Housing Act of 1937.

in which the applicant proposes to con(k) "Secretary” means the Secretary struct or rehabilitate a housing project of Housing and Urban Development or

to be financed with a mortgage insured an officer of the Department of Housing under section 231 or 236. and Urban Development empowered to

(b) Upon a determination by the Com'exercise any of the functions of the missioner that the financial assistance Secretary under section 207 of the Act. applied for will carry out the purposes

(1) "Section 221" means section 221 of of this part and that an applicant is the National Housing Act.

eligible for such assistance, the applica(m) "Section 221 regulations” means

tion will be submitted to the Commission the regulations in Subchapter G, Part for final approval. 221 of this title issued to implement sec- (c) After review, and upon approval by Mar tion 221 of the National Housing Act. the Commission, the loan or grant may

(n) "Section 236" means section 236 be disbursed by the Commissioner. of the National Housing Act.

[33 F.R. 6654, May 1, 1968, as amended at 33 (0) "Section 236 regulations" means

F.R. 16071, Nov. 1, 1968] the regulations in Subchapter N, Part $ 51.15 Eligible applicants. 236 of this title issued to implement sec

(a) To be eligible for a loan, an applltion 23 of the National Housing Act. cant must be a nonprofit, limited divi

(p) “State member" means the mem- dend, or cooperative organization or & ber of the Appalachian Regional Com- public body. mission who represents the State in (b) To be eligible for a grant, an apwhich a proposed housing project is to be plicant must be a nonprofit or cooperalocated, or his authorized representative.

tive organization or a public body.

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s amended (c) An applicant for a loan or grant preparation of applications to the FHA

shall have available funds or assets con- and FNMA, or GNMA, coordination and sidered adequate by the Commissioner to management activities, and such other

defray no less than 20 percent of the ex- items of administrative expense as may make le

penses of planning a project and of ob- be approved by the Commissioner. ncours taining a mortgage insured under section (c) The grant shall be disbursed in an

amount determined by applying the for

mula in paragraph (a) of this section to mined t) $ 51.17 Use of loan or grant proceeds.

the Commissioner's estimate of both the cant pi An applicant shall agree, in form satis

expenses that will be incurred and the condition factory to the Commissioner, to use the

expenses that will be recovered from lappiz loan proceeds for the expenses of plan

mortgage proceeds. nd the is ning a housing or rehabilitation project

(d) The grant contract shall provide the pres and for obtaining the financing of such

for an adjustment of the grant by applyy be wet project by a mortgage insured under sec

ing the formula in paragraph (a) of this tion 221 or 236. The plans for such proj

section to the actual expenses and the ect shall contemplate its ownership by ed proje

amount of such expenses recovered from one of the following:

mortgage proceeds. which all

(a) The applicant. ocated it. (b) A cooperative organization.

[33 F.R. 6654, May 1, 1968, as amended at 33

F.R. 16072, Nov. 1, 1968)
Lat tad (c) A nonprofit organization to be
Appalsu formed and controlled in a manner satis- $ 51.25 Waiver of repayment.
Las amoi factory to the Commissioner.

The Commissioner may waive the reB). The” [33 F.R. 6654, May 1, 1968, as amended at 33

payment of all or such part of a loan, in 2011 F.R. 16071, Nov. 1, 1968)

including interest thereon, that he de$51.20 Maximum amount of loan.

termines cannot be recovered from the The loan shall not exceed 80 percent

proceeds of a mortgage or mortgages inof the total cost of both planning the

sured under section 221 or 236. No waiver und 9n project and of obtaining an insured mort- shall be made in connection with a loan

gage under section 221 or 236. These to a limited dividend organization. icatice costs may include preliminary surveys (33 F.R. 16072, Nov. 1, 1968]

appig and analyses of market needs; prelimisuch 4 nary site engineering and architectural

§ 51.27 Maturity of loans-contract applict fees; options for the purchase of land;

provisions. Ebed b1 FHA and FNMA, or GNMA fees; con

The contract for a loan shall provide inst struction loan fees and discounts; and for repayment by the borrower within - the such other items of cost as may be ap

6 months following the first disburse-es to my proved by the Commissioner. The loan ng mau shall be disbursed on the basis of 80 per

ment of funds pursuant to the contract ge is cent of the Commissioner's estimate of

or at such time as the borrower recovers the total cost for such planning and for

his expenses from the mortgage proceeds, the Co obtaining the insured mortgage. The loan

or at such other time as may be fixed by assisk contract shall provide for an adjustment

contract with the Commissioner. The purp of the loan to an amount which will not

Commissioner may extend the time for blicar exceed 80 percent of the actual expendi

repayment under such terms and condi-
tions as he may prescribe.
$ 51.30 Interest on loans.

(a) Interest shall not be charged to

borrowers other than limited dividend (1) The amount representing all the

organizations. administrative expenses incident to

(b) Interest charged to a limited planning a project added to the cost of

dividend organization shall be at the preobtaining a mortgage under section 221

vailing market rate, which shall be the maximum rate authorized under $ 221.

518(a) of this title for mortgages insured covered from the proceeds of the insured

under section 221. Such rate shall be determined as of the date the insuring

office director recommends approval of cident to planning a project may include

the application for financial assistance

under the Act.

tures for such total cost.
(33 F.R. 16072, Nov. 14, 1968]
$ 51.23 Maximum amount of grant.

(a) The grant shall not exceed 80 percent of the difference between:

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or 236; and

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(2) The amount of such expenses rem

mortgage.

(b) The administrative expenses in

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