(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), which 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 to, or the right to possession of, the real property. § 41.26 Open-space land, urban beautification, 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 concurrence, 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 (i) 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.

(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 Assistant 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. Definitions.

§ 51.5

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

missioner or his authorized representative.

(d) "Cooperative organization” means a nonprofit cooperative ownership housing corporation or trust approved by the Commissioner which restricts permanent occupancy of the project to the members of the corporation or trust and which prescribes requirements, approved by the Commissioner, for obtaining and transferring membership.

(e) "Fund" means the Appalachian Housing Fund allocated to the Secretary for carrying out the purposes of this part. (f) "FNMA" means the Federal National Mortgage Association.

(g) "GNMA" means the Government National Mortgage Association.

(h) "Limited dividend organization" means an entity eligible as a limited distribution mortgagor under section 221 of the National Housing Act and § 221.510 (c) of this title.

(i) "Nonprofit organization" means a corporation or association organized for purposes other than the making of profit or gain for itself or any persons identified therewith and which the Commissioner finds is in no manner controlled or directed by persons or firms seeking to derive profit or gain from its operation.

(j) "Public body" means a Federal instrumentality, a State or political subdivision or an instrumentality thereof, which certifies that it is not receiving financial assistance from the United States exclusively pursuant to the United States Housing Act of 1937.

(k) "Secretary" means the Secretary of Housing and Urban Development or an officer of the Department of Housing and Urban Development empowered to exercise any of the functions of the Secretary under section 207 of the Act.

(1) "Section 221" means section 221 of the National Housing Act.

(m) "Section 221 regulations" means the regulations in Subchapter G, Part 221 of this title issued to implement section 221 of the National Housing Act.

(n) "Section 236" means section 236 of the National Housing Act.

(o) "Section 236 regulations" means the regulations in Subchapter N, Part 236 of this title issued to implement section 236 of the National Housing Act.

(p) "State member" means the member of the Appalachian Regional Commission who represents the State in which a proposed housing project is to be located, or his authorized representative.

[33 F.R. 6654, May 1, 1968, as amended at 33 F.R. 16071, Nov. 1, 1968]

§ 51.7 Scope of assistance.

The Commissioner may make loans or grants from the fund to encourage and facilitate the construction or rehabilitation of housing in any area of the Appalachian Region determined by the Commission to have significant potential: for future growth. The conditions of eligibility for applicants and applications for such loans or grants and the terms and conditions under which the proceeds of such loans and grants may be used are specified in this part.

§ 51.10

Location of proposed project.

The proposed project for which a loan or grant is sought shall be located in the Appalachian region as that term is defined in section 403 of the Appalachian Regional Development Act, as amended (40 U.S.C. Apendix A, sec. 403). The proposed project shall be located in an area of such region determined by the Commission to have significant potential for future growth.

§ 51.13 Filing, processing, and approv ing applications.

(a) Prior to filing an application for a loan under this part, the applicant shall obtain approval for such filing from the state member. The application shall be filed, on a form prescribed by the Commissioner, with the FHA insuring office having jurisdiction over the area in which the applicant proposes to construct or rehabilitate a housing project to be financed with a mortgage insured under section 231 or 236.

(b) Upon a determination by the Commissioner that the financial assistance applied for will carry out the purposes of this part and that an applicant is eligible for such assistance, the application will be submitted to the Commission for final approval.

(c) After review, and upon approval by the Commission, the loan or grant may be disbursed by the Commissioner. [33 F.R. 6654, May 1, 1968, as amended at 33 F.R. 16071, Nov. 1, 1968]

§ 51.15 Eligible applicants.

(a) To be eligible for a loan, an applicant must be a nonprofit, limited dividend, or cooperative organization or a public body.

(b) To be eligible for a grant, an applicant must be a nonprofit or cooperative organization or a public body.

(c) An applicant for a loan or grant shall have available funds or assets considered adequate by the Commissioner to defray no less than 20 percent of the expenses of planning a project and of obtaining a mortgage insured under section 221.

§ 51.17 Use of loan or grant proceeds.

An applicant shall agree, in form satisfactory to the Commissioner, to use the loan proceeds for the expenses of planning a housing or rehabilitation project and for obtaining the financing of such project by a mortgage insured under section 221 or 236. The plans for such project shall contemplate its ownership by one of the following:

(a) The applicant.

(b) A cooperative organization.

(c) A nonprofit organization to be formed and controlled in a manner satisfactory to the Commissioner.

[33 F.R. 6654, May 1, 1968, as amended at 33 F.R. 16071, Nov. 1, 1968]

§ 51.20

Maximum amount of loan.

The loan shall not exceed 80 percent of the total cost of both planning the project and of obtaining an insured mortgage under section 221 or 236. These costs may include preliminary surveys and analyses of market needs; preliminary site engineering and architectural fees; options for the purchase of land; FHA and FNMA, or GNMA fees; construction loan fees and discounts; and such other items of cost as may be approved by the Commissioner. The loan shall be disbursed on the basis of 80 percent of the Commissioner's estimate of the total cost for such planning and for obtaining the insured mortgage. The loan contract shall provide for an adjustment of the loan to an amount which will not exceed 80 percent of the actual expenditures for such total cost.

[33 FR. 16072, Nov. 14, 1968]

§ 51.23 Maximum amount of grant. (a) The grant shall not exceed 80 percent of the difference between:

(1) The amount representing all the administrative expenses incident to planning a project added to the cost of obtaining a mortgage under section 221 or 236; and

(2) The amount of such expenses recovered from the proceeds of the insured mortgage.

(b) The administrative expenses incident to planning a project may include

preparation of applications to the FHA and FNMA, or GNMA, coordination and management activities, and such other items of administrative expense as may be approved by the Commissioner.

(c) The grant shall be disbursed in an amount determined by applying the formula in paragraph (a) of this section to the Commissioner's estimate of both the expenses that will be incurred and the expenses that will be recovered from mortgage proceeds.

(d) The grant contract shall provide for an adjustment of the grant by applying the formula in paragraph (a) of this section to the actual expenses and the amount of such expenses recovered from mortgage proceeds.

[33 F.R. 6654, May 1, 1968, as amended at 33 F.R. 16072, Nov. 1, 1968]

§ 51.25 Waiver of repayment.

The Commissioner may waive the repayment of all or such part of a loan, including interest thereon, that he determines cannot be recovered from the proceeds of a mortgage or mortgages insured under section 221 or 236. No waiver shall be made in connection with a loan to a limited dividend organization. [33 F.R. 16072, Nov. 1, 1968]

§ 51.27 Maturity of loans-contract provisions.

The contract for a loan shall provide for repayment by the borrower within 6 months following the first disbursement of funds pursuant to the contract or at such time as the borrower recovers his expenses from the mortgage proceeds, or at such other time as may be fixed by contract with the Commissioner. The Commissioner may extend the time for repayment under such terms and conditions as he may prescribe.

§ 51.30 Interest on loans.

(a) Interest shall not be charged to borrowers other than limited dividend organizations.

(b) Interest charged to a limited dividend organization shall be at the prevailing market rate, which shall be the maximum rate authorized under § 221.518(a) of this title for mortgages insured under section 221. Such rate shall be determined as of the date the insuring office director recommends approval of the application for financial assistance under the Act.