HomeMy WebLinkAboutOrd 3060 10/07/1980 RDINANCE NO. 3060
AN ORDINANCE ESTABLISHING A BUSINESS
REPIABIL%TATION LOA/~PUND AND STANDARDS
AND PROCEDURES IN CONNECTION THEREWITH
HEREAS, Section 6(a) of Article VII of the 1970 Constitution of
llinois provides that any municipality which has a population
f more than 25,000 is a home rule unit and may exercise any
ower and perform any function pertaining to its government and
ffairs including, but not limited to, the power to tax and to
ncur debt; and
HEREAS, the Village of Mount Prospect, Cook County, Illinois
as a population in excess of 25,000 and is therefor a home rule
nit and may exercise any of the aforementioned powers and per-
orm any of the aforementioned functions pertaining to its
overnment and affairs; and
HEREAS, it is necessary and in the best interest of the Village
f Mount Prospect:
1. To provide for and promote the public health, safety an
welfare;
To relieve conditions of unemployment and encourage the
increase of business activity and economic development
of the Village;
To encourage the rehabilitation of deteriorating
structures in the business community to promote the
economic growth of the Village;
nd
To provide for efficient and well-planned growth and
development of the Village including the elimination
and prevention of urban blight;
5. To Preserve and increase the Village's tax base;
~EREAS, the Village has determined that the availability and
:ost of financing for necessary improvements to business struc-
tures makes it imperative that the Village assist the business
~ommunity in the Village; and
IHEREAS, the Village proposes to assist the business community
~y providing interest subsidies on loans for the upgrading and
· ehabilitation of business structures in specified areas with-
~n the Village; and
REREAS, it is proposed that such interest subsidy program
~all be administered by lending institutions within the Vil-
~ge with such lending institutions providing the funds for
~uch loans and the Village providing an interest subsidy for
~uch loans; and
2
S~
T~
SI
EREAS, the Village proposes to set aside $75,000-00 to be
~d for the purpose of providing interest subsidies as pro-
ded for herein.
~, THEREFORE, BE IT ORDAINED BY THE PRESIDENT AND BOARD OF
USTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY,
LINOIS AS FOLLOWS:
CTION ONE: Findings. The President and Board of Trustees
the Village of Mount Prospect incorporate the recitals con-
ined hereinabove as findings of the President and Board of
ustees of the Village.
iCTION TWO: Definitions. For purposes of this Ordinance, the
llowing words and terms shall have the following meanings:
A. "Village" shall mean the Village of Mount Prospect.
B. "Corporate Authorities" shall mean the President and
Board of Trustees of the Village.
C. "Person" shall mean any individual, firm, partnership
or corporation.
D. "Lending Institution" shall mean state or federally
rnsr~ered banks.
E. "Business Rehabilitation Area" shall mean a geographical
area of the Village which has been designated by the
corporate authorities as a Business Rehabilitation
Area.
F. "Business Rehabilitation Loan" shall mean a loan from
a private lending institution to an eligible person for
a Business Rehabilitation Project in a Business
Rehabilitation Area.
G. "Business Rehabilitation Loan Subsidy Fund" shall mean.~
the fund established by the corporate authorities of
the Village to subsidize the interest cost of Business
Rehabilitation Loans.
H. "Business Rehabilitation Project" shall mean the repair,
remodeling, refurbishing, rehabilitation and recon-
struction of structures to be used for business located
within a Business Rehabilitation Area and any and all
costs and expenses connected therewith including, but
not limited to, architecture fees, engineering fees,
materials and labor.
S],~TION THREE: Designation of Business Rehabilitation Area.
A. Areas Eligible for Designation. The Corporate Authori-
ties of the Village may designate areas within the Vil-
lage as Business Rehabilitation Areas whenever they
shall find that the area proposed to be designated con-
tains structures which are or were used for business
purposes and which are characterized by any three or
more of the following factors:
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!. Dilapidation;
2. Obsolescence;
3. Deterioration;
4. Failure to comply with current minimum Building
Code standards;
5. Excessive vacancy rates;
6. Inadequate ventilation, light, utilities and
sanitary facilities;
7. Excessive age;
8. Inadequate physical maintenance.
B. Initiation of Process of Designation
The following persons are authorized to initiate
the process of designating an area as a Business
Rehabilitation Area in the Village of Mount
Prospect:
Any person, fi~ or corporation which owns
or operates a business within the Village
and who owns the premises where such business
is conducted; and
Any person, firm or corporation which owns
and operates a business within.the Village
and who leases the premises where the business
is conducted under a lease of at least the
duration of any Business Rehabilitation Loan
to be requested; and
Ce
Any person, fi~m or corporation which owns
the premises of property which is, was or
will be used for business purposes; and
de
Any association acting on behalf of and
authorized by its members, whose members
meet the qualifications set forth in Section
Three Bla, b or c.
e
An application for designation of an area as a
Business Rehabilitation Area shall be filed with
the Director of Community Development and shall
contain the following info~ation:
a. Name, address and telephone number of applican~
b. If applicant owns or operates a business:
1) Name and address of applicant's business;
2)
Statement indicating whether applicant owns
or operates such business and the nature of
applicant's interest in such business;
3)
Name, address and telephone number of the
owner of the business if not disclosed in
Section Three B2b2) and proof of applicant'~
ownership of the premises;
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4) If applicant is not the owner of the premise
written authority from the owner to file suc
application and to seek desiqnation of the
area as a Business Rehabilitation Area and
proof of applicant's leasehold interest in
the premises;
5) A statement indicating the length of time th,
business has been operated, the length of ti] e
it has been owned or operated by the applicalt
and the nature or type of bUsiness;
If the applicant owns the premises where a
business is, was or will be conducted:
1) Address of the premises where a business
is, was or will be conducted;
2) Proof of applicant's ownership of the
premises;
3) If a business is being conducted on the
premises, the name, operator and phone
number of such business and a statement
indicating the length of time the business
has been conducted on the premises and
the term. of any lease such business has for
the premises;
4) If a business is not being conducted on the
premises, a statement indicating the present
use of the premises~and applicant's proposed
use for the premises including, but not limi-
to, the name and type of business applicant
proposes for the premises as well as any
additional information required by the Direc~
of Community Development in rules published
from time to time;
d. If the applicant is an association:
Se
1) The names, addresses and telephone numbers
of those members of the association who
satisfy the qualifications set forth in
Section Three B2b or c and whose business
or premises are located within the area
proposed for designation as a Business
Rehabilitation Area;
2) Proof of authOrization to act with regard
to designation of an area as a Business
Rehabilitation Area;
3) The information required under Section
Three B2b or c for the associatiQn's members
whose businesses or premises are located
within the area proposed for designation
as a Buisness Rehabilitation Area;
A map showing the proposed boundaries of the
Business Rehabilitation Area;
.
A statement indicating the names and addresses
o2 the businesses and owners of business premise
located within the boundaries of the proposed
Business Rehabilitation Area;
A description of the area and of the age and
condition of the business buildings located
within the proposed Business Rehabilitation
Area;
A statement indicating which of the factors
set forth in Section Three A of this Ordinance
characterize the proposed Business Rehabilitati~
Area and the facts upon which such statement
is based.
Within thirty (30) days after a completed applicati
is filed, the Director of Community Development sha]
place the consideration of the designation of the
proposed area as a Business Rehabilitation Area
on the agenda of the Plan Commission for a date not
to exceed sixty (60) days from the date of the
filing of '~
a completed application.
C. Procedure for Designation
A public hearing shall be held before the Plan
Commission of the Village on any proposed Business
Rehabilitation Area. Notice of such public hearing
shall be published in a newspaper'of general circu-
lation within the Village and shall be mailed to the
bus±nesses and~.owners~of business premises located
within the proposed B~siness Rehabilitation Area at
least fifteen (15) days prior to the date of the
The Plan Commission shall review the proposed
boundaries of the Business Rehabilitation Area, and
shall examine the character of the structures and
businesses located therein. Within fifteen (15)
days after the close of the public hearing, the
Plan Commission shall forward written
to the corporate authorities of the Village with
regard to the following matters:
a. Whether the proposed Business Rehabilitation
Area should be designated as such;
Whether the structures located within the
boundaries of the proposed Business Rehabilita-
tion Area exhibit any of the factors set forth
in Section Three A of this Ordinance and, if
so, a statement setting forth each such factor
exhibited and the facts supporting each such
factor.
The corporate authorities shall review the recom-
mendations of the Plan Commission and shall deter-
mine whether to designate an area as a Business
Rehabilitation Area after considering whatever
additional information and testimony the corporate
authorities deem necessary and relevant. If the
corporate authorities determine that an area shall
be designated as a Business Rehabilitation Area,
the corporate authorities shall adopt an ordinance
setting forth the findings required by Section
Three A of this Ordinance and a description of
the Business Rehabilitation Area designated.
SE~ ~ION FOUR: Effect of Designation. If an area is designated
asl~ Business Rehabilitation Area by the Village, the owners of
st~ctures which are, were or will be used for business purposes
an~which are located within such Area and owners or operators
of~usinesses located within such Area with leases of at least
th~duration of the Business Rehabilitation Loan to be requested
sh~l be eligible to apply for a Business Rehabilitation Loan
as ~rovided for herein, provided that such Business Rehabilitation
Loa is sought for a Business Rehabilitation Project.
SEC ION FIVE: Business Rehabilitation Loan Subsidy Fund EstablishE
The corporate authorities of the Village of Mount Prospect hereby
est ~blish a fund in the amount of $75,000 and any additional
amc lnts the corporate authorities may authorize from time to
ti~ , to be known as the Business Rehabilitation Loan Subsidy
Fur .
SEf ?ION SIX: Purpose for Business Rehabilitation Loan Subsidy
Fur [. The Business Rehabilitation Loan Subsidy Fund shall be
us~ [ to pay a portion of the interest charged by lending insti-
tut .ons for loans to persons qualified for Business Rehabilitation
Loa ~s.
SEf ?ION SEVEN: Administration of Business Rehabilitation Loans
and Business Rehabilitation Loan Subsidy Fund.
A. It is proposed that funds for Business Rehabilitation
Loans shall be made available by private lending insti-
tutions to eligible~persons within areas designated
as herein provided as Business Rehabilitation Areas.
B. The Village shall enter into agreements with private
lending institutions to provide Business Rehabilitation
Loans to persons eligible for such loans under the
provisions of this Ordinance and who otherwise satisfy
such lending institution's criteria for business loans.
Such agreements shall also provide as follows:
1. That such Business Rehabilitation Loans shall be
payable over a period not to exceed ten (10)
years, shall not exceed the principal amount of
$25,000.00 and shall bear interest at the exist-
ing commercial mortgage rate in effect at the
time a Business Rehabilitation Loan is approved
by the Lending Institution.
2. That the Village shall pay one-half the interest
cost of Business Rehabilitation Loans up to a
maximum of six percent (6%) of the interest cost
of such loans approved for five years or less or
up to a maximum of seven percent (7%) of the
interest cost of such loans approved for six
to ten years in duration, provided that the Village
has sufficient funds in the Business Rehabilitation
Loan Subsidy Fund and further provided that the
Plan Commission approves the Business Rehabilitation
Project and the lending institution approves the
Business Rehabilitation Loan.
hat any funds provided by the Village from the
Business Rehabilitation Loan Subsidy Fund to a
lending institution to pay a portion of the
interest cost of a Business Rehabilitation Loan
as hereinabove provided shall be deposited in an
interest bearing account, certificate of deposit
or other type of investment or fund in which
municipal funds may lawfully be deposited and
invested so that such funds accrue the maximum
interest possible. Such funds along with the
interest thereon may be automatically withdrawn
by the lending institution to pay the interest
subsidy on a Business Rehabilitation Loan at such
times as the parties may agree.
~CTION EIGHT: Procedure for Obtainin~ Business Rehabilitation
)ans. An application for a Business Rehabilitation Loan shall
.~led with the Director of Community Development of the Vilta¢
~ Mount Prospect, shall be accompanied by a nonrefundable
~plication fee of $25.00 and shall contain the following
~fo~LLation:
1. Name, address and telephone number of the applicant
2. The information required underlSection Three B2b or
c;
3. The design and engineering plans for the
rehabilitation work planned;
A statement indicating the factors set forth in
Section Three A which the premises for which the
Business Rehabilitation Loan is sought exhibit
and the facts supporting such statement;
The completed Business Rehabilitation Loan
application from the lending institution from
which applicant will seek the Business
Rehabilitation Loan.
The Director of Community Development shall review a
completed application for a Business Rehabilitation
Loan within thirty (30) days after it is filed and
place it on the agenda of the Plan Commission and if
the loan is requested for a Business Rehabilitation
Project located within the geographical area under
its jurisdiction, the Board of Downtown Development
and Redevelopment Commissioners, for consideration
within sixth (60) days after the date the completed
application is filed. The Director of Community
Development shall forward its recommendations and
comments and,. if applicable, the Board of Downtown
Development and Redevelopment Commissioners on the
application to the Plan Commission.
The Plan Commission shall review the completed
application for a Business Rehabilitation Loan and
the recommendations and comments of the Director
of Community Development and, if applicable, the
Board of Downtown Development and Redevelopment
Co£~issioners. The Plan Commission shall determine
whether to approve a Business Rehabilitation Loan
based upon the following:
1. Whether the Business Rehabilitation Loan will
be used for a Business Rehabilitation Project; .
2. Whether the Business Rehabilitation Project
proposed is consistent with the purposes of this
Ordinance;
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Whether the Business Rehabilitation Project
is consistent with the character of other
Business Rehabilitation Projects or other
redevelopment within the Business Rehabilitation
Area.
Before an applicant shall be eligible to receive a
Business Rehabilitation Loan it must first be approved
by the Plan Commission and then by the lending
institution.
;ECTION NINE: Severabili~ Clause. If any provision or part
hereof of this Ordinance zs declared invalid and of no further
orce and effect, the other provisions of this Ordinance shall
!emain in full force and effect.
ECTION TEN: Effective Date. This Ordinance shall be in full
orce and effect from and after its passage, approval and
ublication in the manner provided by law.
assed this 7th day of October
, 1980.
YES: Farley, Floros, Miller, M~rauskis, Richardson, Wattenberg
AYS: None
BSENT: None
~proved this 7th day of October , 1980.
Approved:
,ttest:
~illage Clerk
~Village President
GREEMENT
This Agreement made and entered into this 6th day
of M~y , 1981 by and between the Village of Mount
Prospect, an Illinois Municipal corporation (hereinafter
referred to as the "Village") and the First National Bank of
Mount Prospect, a national bank (hereinafter referred to
as the "Lending Institution").
WITNESSETH:
WHEREAS, the Village of Mount Prospect is an Illinois
home rule municipality under Section 6(a) of Article VII
of the 1970 Constitution of Illinois and as such, the
Village may exercise any power and perform any function
pertaining to its government and affairs; and
WHEREAS, the Village of Mount Prospect has determined
that it is necessary and in the best interest of the Village
of Mount Prospect to create a Business Rehabilitation Loan
Subsidy Fund to assist the business community in the Village
to upgrade and rehabilitate business areas within the Village
which are located within Business Rehabilitation Areas
of the Village, all as set out in Ordinance No. 3060
entitled, '~n Ordinance Establishing a Business Rehabilitation
Loan Fund and Standards and Procedures in Connection Therewith,"
passed and approved by the President and Board of Trustees
of the Village of Mount Prospect on October 7, 1980; and
WHEREAS, the First National Bank of Mount Prospect
is a national bank which is authorized by Federal charter
to grant loans for various purposes including business
rehabilitation projects; and
WHEREAS, the First National Bank of Mount Prospect
has determined that it is in the best interest of both
the First National Bank of Mount Prospect and the Village of
Mount Prospect to participate in the Business Rehabilitation
Loan Subsidy program developed by the Village of Mount
Prospect and set forth in said Ordinance No. 3060; and
WHEREAS, the Village and the Lending Institution have
determined that it is to their mutual benefit as well as
to the benefit of the business community to cooperate to
provide Business Rehabilitation Loans under the terms and
conditions set forth in this Agreement.
NOW THEREFORE, for and in consideration of the mutual
covenants herein made and pursuant to the provisions of
Ordinance No. 3060 of the Village, the parties do hereby
enter into the following Agreement:
Section One: Definitions.
For purposes of this Agreement, the following terms
shall have the following meanings:
A. "Business Rehabilitation Area" shall mean a
geographical area of the Village which has been
designated by the corporate authorities as a
Business Rehabilitation area.
B. "Business Rehabilitation Loan" shall mean a loan
from the private lending institution to an eligible
person for a Business Rehabilitation Project in
a Business Rehabilitation Area.
C. "Business Rehabilitation Loan Subsidy Fund" shall
mean the fund established by the corporate
authorities of the Village to subsidize the
interest cost of Business Rehabilitation Loans.
D. "Business Rehabilitation Project" shall mean the
repair, remodeling, refurbishing and rehabilitation
of structures to be used for business located with-
in a Business Rehabilitation Area and any and all
costs and expenses connected therewith including,
but not limited to, architecture fees, engineering
fees, materials and labor.
E. "Person" shall mean any individual, firm, partner-
ship or corporation.
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Section Two: Business Rehabilitation Loan Subsidy
Fund
The Village shall deposit $25,000 with the Lending
Institution to be known as the Business Rehabilitation
Loan Subsidy Fund. Such funds shall be invested in an
interest-bearing savings account, certificate of deposit
or other type of investment or fund in which municipal
funds may lawfully be deposited and invested so that such
funds accrue the maximum interest possible consistent with
the provisions for withdrawal of such funds as are set
forth in this agreement. Interest earned on such funds
shall be added to the Business Rehabilitation Loan Subsidy
Fund for the purpose of making additional interest subsidy
payments in accordance with the terms of this Agreement.
Section Three: Purpose for Business Rehabilitation
Loan Subsidy Fund
The Village shall deposit such Business Rehabilitation
Loan Subsidy Fund with the Lending Institution by May 1,
1981. Such funds shall be used by the Lending Institution
to subsidize to the extent provided for hereinafter, the
interest cost of Business Rehabilitation Loans pursuant to
the provisions of this Agreement.
Section Four: Procedure for Lending Institution's
Approval or Disapproval of Business Rehabilitation Loans
A. The parties agree that the Lending Institution
may only authorize Business Rehabilitation Loans for
Business Rehabilitation Projects which have been approved
by the Plan Co~ission of the Village of Mount Prospect.
B. The Village shall forward completed applications
for Business Rehabilitation Loans to the Lending Institution
within ten (10) days after the date the Plan Commission
approves a Business Rehabilitation Project.
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C. The Lending Institution shall approve or disapprove
such Business Rehabilitation Loan application in accordance
with the standards generally applied by the Lending Institution
in determining whether to approve or disapprove similar
business-type loans and shall send written notice to the
Village and the applicant of its decision within five (5)
days after such decision is made.
D. The Village agrees that the Lending Institution
may make secured or unsecured Business Rehabilitation
Loans.
Section Five: Business Rehabilitation Loans
A. During the term of this Agreement, the Lending
Institution agrees to make available funds for Business
Rehabilitation Loans in the amount of approximately $40,000,
subject to presentation by the Village to the Lending
Institution of qualified applicants in accordance with
Section Four of the Agreement. The Village and the Lending
Institution agree that individual Business Rehabilitation
Loans shall be payable over a period of not to exceed ten
(10) years, shall not exceed the principal amount of
$25,000.00 and shall bear interest at the existing commercial
mortgage rate in effect at the time a Business Rehabilitation
Loan is approved by the Lending Institution.
B. The Village agrees to pay one-half the interest cost
of each Business Rehabilitation Loan authorized by the
Lending Institution up to a maximum of six percent (6%) of
the interest cost for such loan approved for five years or
less or up to a maximum of seven persent (7%) of the interest
cost of such loans approved for six to ten years in duration,
as long as there are sufficient funds in the Business
Rehabilitation Loan Subsidy Fund to pay such interest.
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The Business Rehabilitation Loan Subsidy Fund and the interest
thereon are hereby assigned and pledged to the Lending
Institution to pay the portion of the interest cost of
Business Rehabilitation Loans provided for herein, subject
to the provisions of this Agreement. The Village agrees
that the monthly portion of the interest the Village is to
pay on each loan shall be calculated at the time each Business
Rehabilitation Loan is authorized and written notice thereof
mailed to the Village by the Lending Institution. The Village
hereby authorizes the Lending Institution to withdraw such
monthly portion of the interest from the Business Rehabilitation
Loan Subsidy Fund on a monthly basis.
Section Six: Release of Business Rehabilitation Loan
Subsidy Fund
Any portion of the Business Rehabilitation Loan Subsidy
Fund not committed for the payment of a portion of the
interest on Business Rehabilitation Loans authorized by the
Lending Institution at the end of the term of this Agreement
shall be released by the Lending Institution from the
assignments and pledges by the Village in this Agreement.
The Village shall dispose of such released funds as authorized
by Section 570.513 of the regulations of the Department of
Housing and Urban Development for Community Development Block
Grant funds, 24 CFR Part 570.
Section Seven:
The Lending Institution agrees that the first Business
Rehabilitation Loan shall be made within 45 days after the
initial deposit by the Village of funds into the Business
Rehabilitation Loan Subsidy Fund. If the first such loan
is not made within said 45 day period, the Village reserves
the right to terminate this Agreement and to withdraw all
or part of the funds then on deposit in that Business
Rehabilitation Loan Subsidy Fund.
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Section Eight:
The Village reserves the right to withdraw from the
Business Rehabilitation Loan Subsidy Fund any portion of
said Fund not then committed for the payment of a portion
of the Interest on Business Rehabilitation Loans authorized
and approved by the Lending Institution, if and when the
Village is required by the Department of Housing and Urban
Development to withdraw such funds in the exercise of
corrective or remedial action authorized under regulations
of said Department at 24 CFR Section 570.910 or other similar
provision.
Section Nine: Reports
The Lending Institution shall provide the Village with
a written report containing the following information by
January 1 and July 1 of each year during the term of this
Agreement and thereafter until each Business Rehabilitation
Loan has been retired;
A. A list of each Business Rehabilitation Loan outstanding,
the remaining term of such loan, the principal amounts to be
paid and which remain to be paid on such loan, the interest
paid and which remains to be paid on such loan by the borrower,
the interest paid and which remains to be paid on such loan
by the Village;
B. A list of the Business Rehabilitation Loans which
have been satisfied in full;
C. A statement of the interest earned on the Business
Rehabilitation Loan Subsidy Fund and withdrawals from such
fund;
D. Such other information as the Village may reasonably
require.
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Section Ten:
The Lending Institution agrees to provide administrative
services in support of Business Rehabilitation Loans at no
COSt.
Section Eleven:
The parties agree that the terms and conditions of this
Agreement are subject to the provisions governing lump sum
drawdowns for Business Rehabilitation Projects as set forth
in Section 570.513 of the regulations of the Department of
Housing and Urban Development on Community Development Block
Grant funds, 24 CFR Part 570. A copy of Section 570.513 is
attached hereto as Exhibit A and incorporated herein by this
reference.
Section Twelve:
The parties agree that the Business Rehabilitation Loans
made pursuant to this Agreement shall be subject to the same
requirements (excluding the treatment of loan repayments as
program income) as are applicable to direct loan or grant
assistance provided for the rehabilitation of private property
as provided in regulations of the Department of Housing and
Urban Development set forth in 24 CFR Part 570 Subpart K, a
copy of which is attached hereto as Exhibit B and incorporated
herein by this reference.
Section Thirteen: Term
The term of this Agreement shall be two years from and
after the date hereof.
Section Fourteen: General Provisions'
A. Any notices or reports required by this Agreement
shall be mailed or personally delivered as follows:
Village
Terrance L. Burghard
Village Manager
Village of Mount Prospect
Village Hall
100 South Emerson Street
Mount Prospect, Illinois 60056
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Lending Institution
First National Bank of Mount Prospect
Randhurst Center Mall
Mount Prospect, Illinois 60056
B. This Agreement contains the entire understanding
between the parties and each understands and agrees that
no other representations have been made by either to the
other.
IN WITNESS WHEREOF the parties hereto have caused this
Agreement to be executed on the day and year first above
written.
Village of Mount Prospect
Its: Village President
Attest:
Village Clerk
By:
First National Bank of
Mount Prospect
570.513 Lump sum drawdown for prop-
erty rehabilitation financing.
Subject to the cond:tions prescribed
in this section recipients of grants
under this Part may draw funds from.,
the letter of credit in a single lump
sum to establish z rehabilitation fund
in one or more private financ!M insti-
tr.~ions f~r the purpose of financing
the rchabi!itatien c; priratc]y owns,
~ropcz'Ge3 ~ a ~ar: of the recil:ient's
con'.reunify development program.
(~,.) Dcflnilio~s. (~ "XlehabHitat~cn
fund' meagre a fund established with
blod: gran~ drawn down in atump
sum from zhe recipmnt's let.tot o~
cred~ for use in a rehab~Htation
na~cing pro;~rarn under the ~erms of
an ~gy~'cn~ent between ~he block grant
rec!pien~ and ~he depository private
nr. nciai institution pursuam ~o the re-
quirements or th~s section.
(2) "Private financial institu~icn"
means *. depository ancluding
serials and loan ~sociat]ons. credit
unmn~ and other financiM instku-
tions), in which deposits are federally
insured, and wh[c~ is ~ party to such
(3) "Private fund5" means the funds
of the private financial institution.
Privr.:.o funds ~nclude funds held in
trus; for the bencfit of bondholders or
notchold~r~ of the CD~G recipient er
its aTcnc7 where such bond or nc%2
proceeds are ~o be used m coi%ncct~on
with the rehabilitation
(4) "R, ehzbiHtaticn' me, ns the ac-
tivit~e~ eligible for r~h~b~Htation of
ciudln~ ~hc acqu!s[f{on of properties
for *,:hab~};;,:tion by pri,.ate
orF.;il:ized Jar profit ol on a not-fof
~rofit ba~Is, and ti~e rehabll!raLion of
'commercial and industrial buildings
2nd .s~ructures pursuant to
~ 57b.205(c)( i ).
(b) ~e~uiyc~;:ezzt for a~r~e;~c~L
'a'r;;ten agreement fo,: the deposit of
blo.:k grant funds to establish a reha-
bilitation fund shah be executed by
the block ~rant rempient and partici-
pating prh'ate fin~eial ip~tRution(s).
The agreement shall specifically
scribe the obligations and responsibil-
ities of the parties ~md the terms and
conditions on which such f~ ~e
be deposited and u~ed consistent with
the requiremen.m of this section.
Except ~ may otherw~e be author-
[zed by the HUD Area Office in con:
nection with approva~ for uses of the
rehabilitation fund pursuant to para-
graph (c)(5) or (9). the agreement_
shall authorize the use of the rehabili-
tation fund only in connection with
grants and loans msde within a period
of two years from the date of the
sg~ cement. %'l]e description of thc pro-
pos[,d use of depos~led funds in
agreement shall i~clude a statement
on the intended usa of lo~n repay-
ments and ~nterest earned. The agree-
ment shall expressly provide that its
:erms arid condxions are subject to
the provisions govern}ng lu!ilp Sll~
dra'c downs for property rehabilitation
{ 570.513 of the HUD regnlations on
community developmen[ block gran~.
24 CFR Part 570.
(c) Usc,* of rehabilii~tion /~znd. The
rehabi!itatfon fund may be used for
the following r, urposes:
(1) ~o make direct rehabilitation
loans or grants [o properly owners;
(2) To pay hxterest subsidies, or
tab]ish a fund for Dayraenr of subsi-
dies, on rehakfiltmt~on loans ma~e by
private f~nanclal institutions with Prl-
,.'ate fnnds;
(3) To ~uars. nlee the repayment of
rehabilii'ation leans made to prcpcrW
cvmers by private fir, e, naial [nstitu-
lions with ~rivate fund~; or
(4) To s~rve ~ collateral for financ-
f::g actually extended to the applicant
cot applicant's a~ency) where such fi-
ns. ricing is u~ed to n:ake reh,,bil!tat!on
152
EXHIBIT A
~lL, s by the recipient or Jl~ ~i'.('ncy,
{mhJJJllllJo?l of Drivnt(. property; or for
(g) Olhm u.:,,:; :uq may hc approved
hy IiUD consi,'lenL with the objc('rives
lion fund or oDwr block [:rani
thc payment Cfi rehabilitation lcmns
made with l)rivalo funds, or is listed
In th, bm'rowm- of the privMe fm~ds,
vided for the relmhiiitation et privxte
properly uuder this part.
(e) Ti?ne liuffl o?~ s~art ~f uzc of
Bo;ilcci funds. Use of l.he deposited
fulld~ fo:' reh:dfilitation financing
~5 days of Lhe (lope:4[, Shcmld usc of
deposited funds nat sL~.i't, within 45
day& the reejplclll, may be rcquirc(l by
I.iUD Lo return pal or part of Lhe
r)oMted funds Lo the letter of credit
(f))~clt:~*l of unlt.sod dcposlts. Al.
~rnfim,,tion of Lhe period et thc
meui. all unobiigMed fund3 (hinds
Ibc relmbilih~tkni hind l,h;:.t have nol.
becIl cllClllzlbcred or dh;bursed) then
on del'msi~ >:hall he returned to t, he re-
cit,lenUs letter of clcdig UIIle.;S the
bcl ,!: ~iulhorl'aeO l)y IIUD to ,~xl,end
lwrlod. In addition, the block grnnL re-
cipleni :;hall ret;eryc I.he right Lo with.
draw from the relmbllftatlon fired ~ny
~ 1~70.910(1,1 el the rr//ulat!ona.
(g) Interest mir,lcd, on thc rch(tbilita-
lion fund. lnteresL e~rlwd on the reh:v
bilil, al,ion fund shall be used ptll'Stlgll~
to the terms and conditions of tile
thorizcd tlll.!!~t' pn,r~w, raph (C) of tlli:.;
s(~cl Iotl.
(h~ l{eou('st for IIUI) review and a~-
l)roltid of lllltlp 1;Itlll (lrtllD(tOlOll. I1UD
lilt'Il office review arid approv&l 0f & re-
qtlt'sL for I[ htnlp Stltll drawdowR
qubed prior to (Irswdown. IIUD review
cnn he carried mit maytime dllr{ll g the
program year bu~ generally IIUD will
review ~hesc requests ~ a Bart of the
review and approval of a block
al)l~lical.[o~ ('xcel)[ (host, requests sub.
mil.led in COllJilBCgJOtl with grants
made uttder thc gecretg_ry's [tllld
new contain nit. les. A reques[ submitted
ties fund is subject to Hm require-
menl.a of this sec~ton; however it shall
he reviewed and approved b~ the New
Commmfities Developmen~ Corpora-
Hon. which approves and administers
gl'alit2; l.llldUl' the new eomlntllliLlefi
fund. All rCqtleSts for drawdown shv.!l
include:
(11 A copy of the written agreement
described in paragraph (b);
(2) The re~ons for the loealil'~':
belief [lmt /l~e agreement meets
IIUD approval st. rmdar~; set forth
paragraph (i); and
(3) Certific:.Lion. described In para-
grnpl~ (D(2)(i); where the rcques~ pro-
poses that the benefit to be derived
Irolll ]111119 Sllll} drawdown qualifies
Imdcr paragraph
(i) HUD ~xmiew eNie~a Jot approval
of lu~tp sum dr~wclom~t request The
IIUD area office shall al)prove 2 re.
re]cst, lOT lllt~p ~;11~1 drawdown 1[ it de-
termim-a that {he funds will be del>os-
lied in one or more private financial
institutions under tm a~rccmcn~ which
JllallltJOS, OllO or more of thc
meres described in paragraph (i)(1)
~his section: meets the beneflg t.csLs tlc-
sc[Jbcd In paragraph (1)(2) of Lifts see-
~moun[ of drawdox~m described
p:tragraDh (1)(31 of this section; and
otherwise meets the requircmen[s of
param'r.uh (b) of thls sectlnn. Consl:~t-
ont with l,he natlon:;l goal of expand-
Ina the oppm'tunitlca for minority
huJluess ctl~er~rk~es, thc ilUD ~rca
office :;hall ellCOllraRc block ITl'frill ri,.
ciplell[.s LO ll:,;e lnl~lorH.y bal~ks
wi)Ich is owned at least 50 pm'cent by
l~t~llO{'J[y {~l'Ollp
cinl institutions. (i) Commil, menL of
privnte fumls' R,r the rehahili~atlm~ fi.
I!:lllC}lli[ nelrivilies in nmcmnLs which
are substantially {n excess of the de-'
posit of block grtud. [unds;
(ii) Comm{Lmcn~ ~f private f/lIIds [Or
reimbilitat.ion finm~cing acLiviLies
longcr repaymonL pcriods, or a[ higher
risk than would normally be t~ken;
(iii) Provision of administraMve serv-
ices by the finaneird ilmt. iLuLlons in
suppor~ of the rehabilila[.ion financing
.activities a~ no co~t or a~ reduced
(2) ~enefit tcsts-.(i) Rq~en 7narket
ratc ~lerest is payobl~ on ihe reh~bili-
lalion fund. ~Viwn interest
market raLo for depo;;ils of similar nla-
Lutity nnd size is payable on tile reha-
biliLatien fund, the applicant must ee~-
ti[y Clml the commhmcn(, uIider
aRrcemcn[ puvsuall[ to para.graph
(i)(1) providca :t slgnifican~ benefi~
nme~in~ the ne~ds et its rehabilitation
objecMves consistent wi~h i~ block
gran~ application. Such certification
shall be accepted by the Area Office
for the purpose et meeting the re-
quh'emenM of ~he benefits tes~ of this
paragraph tn the absclleo ()i substan-
tial evidence to the comrary.
When le:;s thru) the market rate inLer-
cs~ is payable on tlm rchabili~ation
fund, the value of thc benefits o{ Lhe
COllmtJL.mel]L till{Icl the
foregone. The COfll~i!l'j[;Olt et LJle belle-
Iii and hal.re'cst forvaone shall be
(A) Estimnle of jor,'90~C nderest. An
estinm~e of the difference bel,ween the
inLercsL I)ayabh: trader the agt'cement
and L)/e alllotinL Of iHfo,'Ost, fha[ woH]d
monthly balance of lh? rehabilitation
fund at the tll;,,riteL rate [or dcpos{Ls of ·
sinfilar maLuri( y l[lld
(B) EMimoh' of value of bene~ils. A
quant, ifiect est. ima~e of/he value of
benefits of f. he commit, merit under the
l!grpelll¢llL..I,'er examole, [( ~'; a result
of ibc tiept~sJl, the private fhmnelal In-
stlLutlon provides frcc loan
services, [he bel]0[JL would hc
f}e{I ~ thc ~lnount of I.he direct
that wotlld atherwiso have Lo
for sIIch scrvJecg.
(3) Basis for (lll[Oll~lg of
The amoull[ o[ fut,(h; thai a block
do~osl~ for a reilabil{h~tion fund sh~{{
Lbo apl))icanL r('~;o~lahly exo,,cls
be reqtlirod under l. he turin:; (~f the
~gl'eolneIl~ dtlriHg the {)(,rJud of tho
a~reement and based on ~'H her:
(i) Prior level o[ rehu. bili~nthm ~ctivi-
ty; or
(ii) l~ehabilitaLion :;Lafl in g
almmen~ plans of ~he locality for th,'
period of the agreement.
[~ }~I~ 20990, Apr. ~,
153 154
S,.,c:..¢~: 40 PR 24693. Jurw 9. 1975.
o; herwi.~ n~ted
§ 570.C69 Limita(imns on local optiom ac-
tivhies and contingency accounts.
No more than ten per eemum of the
estimated costs which are expected to
be incurred during any ~rogram year
may be dcsi~ated for unspecified
local cDt. ion activities, which arc eligi-
b]e pursuan~ to SubDar~ C, or los a
con~ingency account for activities des-
i~aated by the applicant pursuant to
I 570.305. Funds desi~ated for unspe-
cified local option activities are subject
to the conditionM approval require-
ments of ~ 5~0.31I(f).
!~O ~ ~4~9~. Julia 9. 1975. r~ amended a~
(a) Df.',.crimincY:o;; prohibited. Sec-
~ion 109 of the i~ous~ng
%y DcveloDrnen~ Act of 1974 requires
tbr, t no person in ~he U~ilcd
tiona] oriEin or sex, be cxcluded from
of, or be subjec~e~ [o discrimination
under, any 9roarzm ov activity funded
in v.'hok, er in par~ '~:ith community
develo~nen~ funds made available
9ursuam to thi~ ..Part.
this ~eDtion "program or activity"
154
daf iced as any function conducted by
an identifiable administrative unit of
the recipient, or by any unit of govern-
mcnt or private contractor receiving
co:n:nunity development funds or
loans from the recipient. "~unded in
whole or in Dart with community
velof, men% funds" means that commu-
nity development funds in any amount
in the form of ~ants or proceeds from
HUD ~uaran~eed loans have been
transferred by the recipient to ~
identifiable administrative unit and
disbursed in a program or activity.
(b) S~ccific disc~mfnalo~ actions
~rohibi~ed and co~ec~ive aciion& (1)
A recipicn~ may no:, under any pro-
gram or ac~i%qty ~o whirl% %he re~l~-
tior~ of this Part may apply, directly
or through contractual or other
r~ngcmen~s, on the ground of race,
color, n~tional origin, or sex:
(i) Deny any facfliNcs, scrvmcs,
nancial aid or o%hcr benefits
under the pro,ram or
iii) Provide any facHkles, services, fi-
nancial ai~ or other 5enefits which arc
d!/fcrent, or are provided in a differ-
en: form from that provided to others
under the pro~ or sct. ivii y.
(iff) Subject to segregated or sepa-
rate treatment in ~ny facility in, or in
any m~%Ler or process related to re-
ccitt of any service or benefit un~r
the ~rogram or activity.
(iv) Restrict in any way access to. or
in the enjoymen~ of any advantage
privilege enjoyed by othc~ in conner-
%ion with facilities, services.
girl or other benefits under the
gram or activity.
(v) Treat an individual differently
from other~ in determinina whether
the individual satisfies any admission.
enrollment, eligibUity, membership, or
oft]er reQuire~ncnt or condltion which
individuals must meet in order ~o
provided any f~ci!ft~es, services er
othzr benefit p:ovifled under the pro-
gram or activity.
(vi) Deny an oD9ortun!ty to per,ici-
pate in a program or activity ~ an era-
(2) A remDien~ may not utilize
~i~ or methods of aOmlnistralion
which have the effect c,f cubJec[ing in-
dR'Iduals to discrimlnaLlon on the
basra of race,, col~;', n~ti5n~l orlaln, or
:;,.>: or bare 1.1,e effect of defeating er
substantiai!y impairing accomplish-
ment of the objectives of the program
or activity with respect to individuals
of a particular race. color, national
origin, or sex,
(3) A recipient, in determining the
site or location of housing or facilities
provided in whole or in part 'wiLh
funds under this part, may not, make
selections of such site or location
which have the effect of excluding ~-
dividuals from, denying them the
benefi~ of. or subjecting them [o dis-
crimination on the ~ound of r~e,
color, national origin, or sex; or which
have the purpose or effect of defeat-
ing or substantially impairing the
com~Iis~cnt of the objectives of th9
Act and of this section.
(4)(i) In a~inistering a program or
activity funded in whole or in part
with community development block
grant funds regardin~ which the re-
cipient hr~ previously discriminated
~gains~ persons ~n the ~round of race,
color, national origin or sex. the recipi-
ent must take affirmative action to
overcome the effcct~ of prior discrin-d-
n~tion.
(ii) .Even in the absence of such
d~scriminz%ion, a recipient ~n admin~-
retina a pro,ram or activit~ funded
whole or in part with community
vclopmen~ block grant funds shou!d
take affirmative action ~o
the effects of conditions whic~ wo~d
otherwise result in l~litinE DarticiDa-
tion by perso~ of ape. rticu!ar taco,
color, national origin or sex. IVhere
previous discriminatory practice or
usage tends, on the ground of race,
color, naticral origin or sex, to ex-
clude individuals from participation
in. to deny them the benefi~ of, or to
subjec~ th~m to discrimination under
any program or activity to which th~
part applies, the recipient h~ an ob!i-
eat.ion tc take reachable actiom
remove or overcome the conseq ~e~ccs
of tile pribr discr!m~atory practice or
usage, and ~o accornpllsh the purpose
of the Act
(iii) A recipient shall not be prohibit-
ed by this part from takln~ ~y action
elifflb!e under Subpart'C to ameliorate
an imbalance in servmes or facilities
provided to any geographic area
specific ~ouP of persons v:i[h[n its ju-
t!sd!etlon, where tile purpose of such
155
EXHIBIT B
action [s to overcome prim' discrim{lla.
{ory 1)r;,cticc of usagc.
(5) Nolwttll:;larlding anylhin! h)
t,:{hled hcr'(q{l ,~{llt{{ be co{l~Lrtic({ [,0
fneilH, ie~ or )'pst ~oom facilities for
d~flcren[ sexes. Fm'thermore,
ify on the b:).sis of sex is nt,[ l)rohibiL-
cd v.'hm~ institutional or cuModial serv-
ices can properly be pPrformed only by
P fl]ca'thor o~ [ilo ssi'tlc ~ex ~m [,he rue}p-
lents of the services.
[40 F~ 24G93, g,me 9, 1975. as nmenfled at
43 I.~ ~,;47, Mar. I, 19781
~ 570.662 {h'l-calkm ami aequi:ddon.
I'olicics .~ct. o! 1970 (Uniform A(:L) and
iIUD implementing rcgulaLious aL 24
CRf~ Part d2 ~pply to al~y acquisition
o[ rval praperty by a S~ate aacncy
fined :% 24 CPR ~.85) Lb:ti is c:~rricd
out f~;r a,t p.clivity a:;Msted UllduF this
family. Jl~divi;lual, b~lsJness, nonprofit
Ol'gOllizatjon OF fD_rra that results from
such acquisition.
(i) A~5' aequisiiJo~{ of real property
by a '%trdc r'p:ency" aud any displace-
tach[ r~;;ulting from such acqu{si~io}t
of rcm properly ~;}ml{ be considered to
bc for ;,u :uqivity P.s,:isled un(ici Lhe
commtmity devu!upme~d block ~ranL
{)rollli:,lB and 1o be subject tO {.he r('~u.
Iai ions at. 24 Cl.q? Part d2 if tim acqui-
sft. iOll or dJsplncce~r~ci~[ occurs on or
after the dare of tho mfi))niss{o~ of the
appl!cntJor~ rcqtmsti:i~ ]~ederal finan.
('i~l n.'iskdlulcc which is arnnf, cd for an
activity for which tho acquisition
been or will be Undertaken. tlowovcr,
[[ llte roe{pictor dul"!-millcs that an ~c-
qui:;i~{o~ cr displace{ileal was I~ot c~r-
l'ied OUl for 81{ Iu;si~ied activity, and
the HUD At-Pa Olfit'r, scrvint: the to-
-n}ity ~0n"m's h] tlmt deist'ruination,
st:c}l acquisition or displuccment shall
not. be subject fo Il)ese relfnlatlons.
The rcclph,n('~: rt}qu!,3L Jar }JUL) col!-
c'urren%? rdmj] inch:d~ Its certification
that al, lbo ti:ne of the aequh;ition l[
an a~sir4ed.nei{vity hlld
(2) The reciDicnL or tlUD, w/deb
shall monitor compliance With the
Title 24--HouMng ond Urbrm Devolopmon!
Uniform Act. nlay determine Lhat, an
acquisition I)I'JoF Lo SllbIDJssJon O{
ai)plicalion for finavf'ial n.qsistanep
carl ied ouI, for an t~';:;isl ed activil.y and
are sub jet( ~o (hese regulnUons. In
absence of ;;rich a detprlninatJon by
t he recipient or HUD, arty such acqu[.
siLion or displacement occurring prior
to submission of an aPPlicaiion shall
The recipient may at any time request
a ItUD determinaUon ~ Lo whether or
not such an acquisition and any result-
ing displacement are considered to be
for an assisted activity and to be sub-
Jeer to these regulations. The request
shall be submitted to the ItUD Area
Office and shall hlelude appropriate
background doeulnenLation.
(3) If the owner or oeeupan[ of
property disagrces with gl~e remPient's
determination that the Uniform ACt
and the regulations.aL 24 GF~ Part 42
do not apply to the aeqtlISiLion of
Drol.,erLy or Lo a displacement result-
ina from the acquisition, he/she may
file tm appeal under 24 C~ Part 42
Subpart J (Appeals), whether or nog
the acquisition or disph,.ccment occurs
before or ~.ftor submission of the
91ication for financial ~sisLance. Thc
specific Payments It{id other assistance
for which an ;,ppcal may be filed are
scl forth in 24 C.}'ll 42.703(a).
(b) The costs of relocation payments
and ~ssistance under Title II of thc
Uniform Ac~ shall bc paid from funds
provided by this Pa.r5 xnd/or such
other funds as may hc available ~o thc
]ocalily D'ol}~ any sollrcc.
(el Thc recipient ]lll;y P~ovide reloca-
tion Payments m,d asstsLance fro' hldl-
viduals, families, btminesses, nonprofl~
organlzatioi~ and fit. rm aPcrations dis-
Placed by an activity thaL Is no~ sub.
jcct to ~ 570.602(a). The lcciplent also
may provide rclocation Dg. YI~lCliL8 and
other ~,ssistance p.b lcvel.~ above those
established under the Uniform Act. All
aucb relocation mssb;taucc not l'cquired
by the Uniform Act musL be deter.
mined by Lhc rec~pl,.mt Lo be :,Pproprl.
ate ~o its communl[y develoDmcn[ Pro.
grflm. Ullless ~;t)c[) pltylltellt.s EDd
local law, the rcc{plenl shall adept n
written policy availablu to the public
setthm- forth the relocation pu. ymenl~,
Ch. V~Oi'fice of A~et. Secy, for Comm.
and ,~sslstancc It, elecl.s Lo provkle and
providing for cqu~l pRymenk~ ~nd
slsLnl)ce within oach chis of dis.
placees.
(Title I, IIousing and COIIIIHUlII[,y Develop-
meal ACt ol 19~4 (42 U.S.C. 5301 e~ seq.);
Title I. }lousi.g and Community Develop-
men[ Act of 19~ (Pub. ~. ~5-128); and see.
~{dL Department of Housle~ aod Urban
velopment Act t42 U.S.C. 3535(d); Title I ol
the ltousim~ and Conlmuo{ty Development
Act of 1974 (42 U.S.C. 5~01 e[ seq.); sec. 213,
Unl[orm ReloeMion Assistance nnd Real
Property Acquisition Policies Ac~ of 19~0 (42
U.S.C. ~601): sec. ~(d). Department of
lng and Urlm.n l)evelopmeng Ae[ (42 U.8.C.
3~35 (d))).
[40 PR 24693. June 9. 19~5, ~ amended
4~ PR 502~4. Aug. 2~, 19~0; 44 PR 56326.
Oct. I 1979]
~ 570.603 Environment,
In order [o assure ~ha[ the policies
of the National Environmental Policy
Act of 1909 are mos~ effecUvely
men,ed in connection wiU~ [l~e ex-
penditure of funds under this Par~ ghe
recipien~ shall comply with HUD Envi-
ronmental ~eview Procedures (24
CF~ Part 58) leading [o eerUfieation
for the release of funds for particular
projects. These procedures se~
the regulations, policies, responsibil-
iUes and procedures governing U~e car-
rying out of cnvu'onmenCal review re-
sDonsibillUcs of recipients.
~ 570.~0.1 llisloric prese*wntim~.
R. eclpients mus~ take Into account
tl~e effect, of a project on any district.
silo. buildi~m, s~ructure, or object
listed in or foond by the Secretary of
the Interior. pursuant to 34 CPR
800, to be elhdble for ineluMon In the
Natlotml l~egisl.cr of Historic Places.
mMntained by ~he NaUonal Park 8err-
Ice of the lJ.~. Department of [l~e In-
[crhn. t~eciplents should make every
effort Lo ellmhm[e or mlnbnlze any ad-
verse effect on a historic Droper~y.
UvlUes affecting such properties will
be subject to requlrenlen~ set lorth hi
~570.~03. Reclphmts must meet the
historic preservation requlrementa of
Pub. L. 89-695 attd the ArcheologlcM
and Historic PreservaUon Act of 1974
(Piti). L. 93-291), and ~xeeuUve Order
11593. including the ~roeedures pre-
scribed by thc Advisor7 Council on
Plunning, Dovelopmant § 570.607
ttistoric Preservation-hi 36 CFI't. I'art
800.
§ 570,605 Labor :lla,dards.
Ail laborers and mechanics em-
p]oycd by contractors or subcontrac-
tors on construct{on work mssJs{ed
under this Part shall be paid waf:es at
rates not'less thnn those prcvaiHug on
similar construction in thc locality ~s
deLermincd by thc Secretary of I,aber
in accordance with the Davisdlacon
Ac~. ~ ~mended (40 U.8.C. 27Ga-2~a-
5), and shM1 receive overtime compen-
sation in accordance with and st)hit:el
~o the 9revisions of ~he Contract Work
Hot{rs and Safet;y Stundards AcL (4o
U.S.C. 327-333). and the contracto:'s
and subcontractors shall con:ply v:i~h
all regulations Issued pnrsuant
these Ac~ and wi~h other aDpllcablc
~ederal laws nnd regulations pertain-
ing to labor standards. This
.shall apply to thc rehabilitation o~
residential property only If such Drop-
erty Is designed for roshteD~ial nsc ef
eigh~ or more familics. The Secretary
of Labor h~, with rcspcc~ to thc h;bor
standards specllied In this section, thc
authority and functimm sc; fort' '
~corg~nization Plan Nnmb;q I~
1950 (5 U.S.C. 133z-151 and scction
of the Ac~ of June 13, 193~, ms amend-
ed (~0 U.8.C. 276c).
~570.606 Architocl.ral lire'flora Act
1968.
Every building or facility tother
than a DrivMoly owned rcsldeut!al
s~ructurc) :!cslgned. constructed, or
tcrcd with ftlllda mPdc p. vai!nble under
this Da~%, shall comply with Llm
qu{relllcnLs of ibc "Amcricltll Stal)d-
ards Specifications for Making Build-
ings and PaclliUes Accessible io, nnd
Usable by, thc PhyslcMly llandi-
capped," Nnmhcr A-11?.I--~
subJcci ~o ibc exccp[h,ns cenln{ncd in
41 CFR Subcar~ 101-19.004,
pursuant [o thc Archltccturnl Barriers
Act of 1968. 42 U.S.C. 4151.
[42 ~ 33020, Julle 2a,
fi g70.607 Acilvlt{~s fur Milch other Fedt, r-
al funds mt, at be ~ought.
A reclplen~ may use eommtmity tlc-
velo~men[ ruin&; for th~ provlsioe ol
public senvices rm described In
157 :
~570.?otce) for acfivi;i.s ~o{her tb2n
dc::rr~bcd
~ 570.201<,')(13). Prov~drd. 'FhaL:
(al An ;~Pl~llc:d. ion or 'wriLI m~ lllqUiry
m ~' v~:c!es, if any, xshich cm~dt~ct I~
m'ed. u:' o) the ~;~t~" or k)(:a] ;)i~(:IIC)~ or
,~1;I1,' /)r hl('~l ;'i?'lICS', if lilly; (:~) a will,-
Nell,he,, Lh~- Co)nulu!liiy Devdop-
~ru~('.etlon Ac~, o[ !97;! (Pill). L. g3-23,11
C)']~ CJI. ]'~. ~t'b~:]l;lptor Bl apply Lo
Title 24~Hou~ing end Urban
Oll llll;I :t[[l'F ~llJy' ], 1975 (or Olio ]'cllr
af[t,r fl COIIIIIIIIHi{,}' has bCell fol'llHtJ]5'
nol.ificd of ils idenl,ificaUon m~ a com.
flood hxz:;r(t, whichever is ]ah'r) for
usc in ytil5' al'ca thaL hlLs beell identi-
fied by the Secreiary el llol~sing and
iitullily iii which si)ch area is s/t, tJalCd
is then participating in thc Nal, ional
Flood IIlSUI'aH('C Prol!ram, Notwilh-
st:lading tim date of IIUD approval of
l.ho recipionLs' apptlcaLion, ftllld3
Drovcd ll lldeI' l,}]i5 PIii'L hhaH lief bc cx-
l)ellded oi1 or after lilly I, 1975. or olio
really lwllficd, whichever is later, for
p(;quiaitioll or col,Si, l'tl(.lioll Dlll'p0ses
D:IA'iIII' Spl'('{;l{ florid lilu;a, rds; which
t, ionn! i.qoo:l Illq~ll'D.!'lC,~ ?l'Ogl'a)]l pur-
m):;.nL to srelion 201(d) o[ said Acl,.
'['i!C lisp el qlly flllld3 pvovldcd lllldOr
thia l'arl for act!u[aitiOll or coDst, rt/c-
tim~ Durpo,~es iD idcnUfied speciM
flood hxz:~rd at'cfm shall be sttbjecL Lo
the nllt!lrlal.ory I)U)'CI)RSe of flood [n-
:4uF~lllge roquJToIIICIlJS Of SOct. JoI] 102(x)
~ 571,.a10 Cie:., Air Act ~',d Feder.l lV~te~'
The recipient IllUst. eomply will] tile
lTrovlsJolls Of the Clean Air Act,
amc~dod (42 U.S.C. 185'I eg seq.), ~md
~he Fedcral Water Po]luUon ConJro)
AcL, as amended (RS U.~.C. 1251
seq,), :md Lhe remdaUons
Th~ a~c!p!c-nL must comply wit, i, thc
Dol)l[l'llr~cl~l.'!; [,or)fl Based T'MnL
]u. tioi)s (24 CI"R I'~:rt 35) Iss~ed ptli'sl}-
allL tO the Lertd-!~aacd Pal~t Poisoning
Prevention Act (42 II.S.C. 4831 e;
rcqul:'lnr prohlbltim~ of Lhe use t.f
lead-bn~ed lmirH,, whenever a:~sl::tnnce
trader t.his l's. rl Is used dh'ectly or l)~di-
rect!y by the r~:c!phq)[ lot cunMrlte.-
't. lon. rch.xbl11LaLlou, cr modornizsUm,
of reslderHial slri)clures; clim!naLIon
of hmm:d[Jtte lead-bm;ed palnL
In rcr;ldential strttetures rmslsLed un(k:r
Ch. V--.Office of Assl, $oc¥. for Corem, Plnnnln,q,
l,hi:; I)[H'[: and noLifica~ion ~[ [he haz-
n rds of lead-bp, seal l)a'lnt poisoning Lo
t)urchnsers p. lld [eIlRn[.~ Of residcntlal
s~rttcla~r~s construct.ed prior to 1950
and ass{si,ed trader t his Par[.
[42 I,'I~ 33020. June 28,
~ 570.012 Aclivlties conducted by nonprof-
it cnl~tic~, small business investmcnt
port, lions. [ Resem'edl
~ 570,613 Disposition. [Reset'ed]
~ 570.61:1 Use of Debarred, S.Sl)ended, or
h~eligihle Contracl,m or Subrcc~picnts.
Block grant [llIldS shall not be used
dircctly or Indirectly to emoloy, award
coD[r~¢~s t.o. or otherwise engage
services of. or ft~d any contractor or
sttbrecipient during any Derlo~ o[ de'-
DaI'IIICBt. suspension, or plaemnellt
ineligibility s~tttus under the provi-
stuns of 24 CI~ Par[ 24. "Subreci-
pienCs" are either eligible enti[ies
under ~ 570.204(a)(2) or ~rivate ent.i-
ties ~sis~ed under ~ 570.202(c)(1).
[44 ~'~ 41089. ~uly 13. 1970]
57'}.702
GREEMENT
This Agreement made and entered into this 26th day
of March , 1981 by and between the Village of Mount
Prospect, an Illinois Municipal corporation (hereinafter
referred to as the "Village") and the Mount Prospect State
Bank, a state bank (hereinafter referred to as the "Lending
Institution").
WITNESSETH:
WHEREAS, the Village of Mount Prospect is an Illinois
home rule municipality under Section 6(a) of Article VII
of the 1970 Constitution of Illinois and as such, the
Village may exercise any power and perform any function
pertaining to its government and affairs; and
WHEREAS, the Village of Mount Prospect has determined
that it is necessary and in the best interest of the Village
of Mount Prospect to create a Business Rehabilitation Loan
Subsidy Fund to assist the business community in the Village
to upgrade and rehabilitate business areas within the Village
which are located within Business Rehabilitation Areas
of the Village, all as set out in Ordinance Noo 3060 entitled,
"An Ordinance Establishing a Business Rehabilitation Loan
Fund and Standards and Procedures in Connection Therewith,"
passed and approved by the President and Board of Trustees
of the Village of Mount Prospect on October 7, 1980; and
WHEREAS, the Mount Prospect State Bank is a state bank
which is authorized by State charter to grant loans for
various purposes including business rehabilitation projects;
and
WHEREAS, the Mount Prospect State Bank has determined
that it is in the best interest of both the Mount Prospect
State Bank and the Village of Mount Prospect to participate
in the Business Rehabilitation Loan Subsidy program developed
by the Village of Mount Prospect and set forth in said
Ordinance No~ 3060; and
2 -
WHEREAS, the Village and the Lending Institution have
determined that it is to their mutual benefit as well as
to the benefit of the business community to cooperate to
provide Business Rehabilitation Loans under the terms and
conditions set forth in this Agreement.
NOW THEREFORE, for and in consideration of the mutual
covenants herein made and pursuant to the provisions of
Ordinance Noo 3060 of the Village, the parties do hereby
enter into the following Agreement:
Section One: Definitions.
For purposes of this Agreement, the following terms
shall have the following meanings:
A. "Business Rehabilitation Area" shall mean a
geographical area of the Village which has been
designated by the corporate authorities as a
Business Rehabilitation area.
B. "Business Rehabilitation Loan" shall mean a loan
from the private lending institution to an eligible
person for a Business Rehabilitation Project in
a Business Rehabilitation Area.
C. "Business Rehabilitation Loan Subsidy Fund" shall
mean the fund established by the corporate
authorities of the Village to subsidize the
interest cost of Business Rehabilitation Loans.
Do "Business Rehabilitation Project" shall mean the
repair, remodeling, refurbishing and rehabilitation
of structures to be used for business located with-
in a Business Rehabilitation Area and any and all
costs and expenses connected therewith including,
but not limited to, architecture fees, engineering
fees, materials and labor.
E. "Person" shall mean any individual, firm, partner-
ship or corporation.
ection Two: Business Rehabilitation Loan Subsidy
Fund
The Village shall deposit $25,000 with the Lending
Institution to be known as the Business Rehabilitation
Loan Subsidy Fund. Such funds shall be invested in an
interest-bearing savings account, certificate of deposit
or other type of investment or f~L~d in which municipal
funds may lawfully be deposited and invested so that such
funds accrue the maximum interest possible consistent with
the provisions for withdrawal of such funds as are set
forth in this agreement. Interest earned on such funds
shall be added to the Business Rehabilitation Loan Subsidy
Fund for the purpose of making additional interest subsidy
payments in accordance with the terms of this Agreement.
Section Three: Purpose for Business Rehabilitation
Loan Subsidy Fund
The Village shall deposit such Business Rehabilitation
Loan Subsidy Fund with the Lending Institution by May 1,
1981. Such funds shall be used by the Lending Institution
to subsidize to the extent provided for hereinafter, the
interest cost of Business Rehabilitation Loans pursuant to
the provisions of this Agreement.
Section Four: Procedure for Lending Institution's
Approval or Disapproval of Business Rehabilitation Loans
A, The parties agree that the Lending Institution
may only authorize Business Rehabilitation Loans for
Business Rehabilitation Projects which have been approved
by the Plan Commission of the Village of Mount Prospect.
B. The Village shall forward completed applications
for Business Rehabilitation Loans to the Lending Institution
within ten (10) days after the date the Plan Commission
approves a Business Rehabilitation Project.
4 -
C. The Lending Institution shall approve or disapprove
such Business Rehabilitation Loan application in accordance
with the standards generally applied by the Lending Institution
in determining whether to approve or disapprove similar
business-type loans and shall send written notice to the
Village and the applicant of its decision within five (5)
days after such decision is made.
D~ The Village agrees that the Lending Institution
may make secured or unsecured Business Rehabilitation
Loans.
Section Five: Business Rehabilitation Loans
A. During the term of this Agreement, the Lending
Institution agrees to make available funds for Business
Rehabilitation Loans in the amount of approximately $40,000,
subject to presentation by the Village to the Lending
Institution of qualified applicants in accordance with
Section Four of the Agreement. The Village and the Lending
Institution agree that individual Business Rehabilitation
Loans shall be payable over a period of not to exceed ten
(10) years, shall not exceed the principal amount of
$25,000.00 and shall bear interest at the existing commercial
mortgage rate in effect at the time a Business Rehabilitation
Loan is approved by the Lending Institution.
Bo The Village agrees to pay one-half the interest cost
of each Business Rehabilitation Loan authorized by the
Lending Institution up to a maximum of six percent (6%) of
the interest cost for such loan approved for five years or
less or up to a maximum of seven persent (7%) of the interest
cost of such loans approved for six to ten years in duration,
as long as there are sufficient funds in the Business
Rehabilitation Loan Subsidy Fund to pay such interest.
he Business Rehabilitation Loan Subsidy Fund and the interest
thereon are hereby assigned and pledged to the Lending
Institution to pay the portion of the interest cost of
Business Rehabilitation Loans provided for herein, subject
to the provisions of this Agreement. The Village agrees
that the monthly portion of the interest the Village is to
pay on each loan shall be calculated at the time each Business
Rehabilitation Loan is authorized and written notice thereof
mailed to the Village by the Lending Institution. The Village
hereby authorizes the Lending Institution to withdraw such
monthly portion of the interest from the Business Rehabilitation
Loan Subsidy Fund on a monthly basis.
Section Six: Release of Business Rehabilitation Loan
Subsidy Fund
Any portion of the Business Rehabilitation Loan Subsidy
Fund not coam~itted for the payment of a portion of the
interest on Business Rehabilitation Loans authorized by the
Lending Institution at the end of the term of this Agreement
shall be released by the Lending Institution from the
assignments and pledges by the Village in this Agreement.
The Village shall dispose of such released funds as authorized
by Section 570.513 of the regulations of the Department of
Housing and Urban Development for Community Development Block
Grant funds, 24 CFR Part 570.
Section Seven:
The Lending Institution agrees that the first Business
Rehabilitation Loan shall be made within 45 days after the
initial deposit by the Village of funds into the Business
Rehabilitation Loan Subsidy Fund. If the first such loan
is not made within said 45 day period, the Village reserves
the right to terminate this Agreement and to withdraw all
or part of the funds then on deposit in that Business
Rehabilitation Loan Subsidy Fund.
Section Eight:
The Village reserves the right to withdraw from the
Business Rehabilitation Loan Subsidy Fund any portion of
said Fund not then committed for the payment of a portion
of the Interest on Business Rehabilitation Loans authorized
and approved by the Lending Institution, if and when the
Village is required by the Department of Housing and Urban
Development to withdraw such funds in the exercise of
corrective or remedial action authorized under regulations
of said Department at 24 CFR Section 570.910 or other similar
provision.
Section Nine: Reports
The Lending Institution shall provide the Village with
a written report containing the following information by
January 1 and July 1 of each year during the term of this
Agreement and thereafter until each Business Rehabilitation
Loan has been retired;
A. A list of each Business Rehabilitation Loan outstanding,
the remaining term of such loan, the principal amounts to be
paid and which remain to be paid on such loan, the interest
paid and which remains to be paid on such loan by the borrower,
the interest paid and which remains to be paid on such loan
by the Village;
B. A list of the Business Rehabilitation Loans which
have been satisfied in full;
Co A statement of the interest earned on the Business
Rehabilitation Loan Subsidy Fund and withdrawals from such
fund;
D. Such other information as the Village may reasonably
require.
Section Ten:
The Lending Institution agrees to provide administrative
services in support of Business Rehabilitation Loans at no
cost.
Section Eleven:
The parties agree that the terms and conditions of this
Agreement are subject to the provisions governing lump sum
drawdowns for Business Rehabilitation Projects as set forth
in Section 570.513 of the regulations of the Department of
Housing and Urban Development on Co~m~Lunity Development Block
Grant funds, 24 CFR Part 570. A copy of Section 570.513 is
attached hereto as Exhibit A and incorporated herein by this
reference.
Section Twelve:
The parties agree that the Business Rehabilitation Loans
made pursuant to this Agreement shall be subject to the same
requirements (excluding the treatment of loan repayments as
program income) as are applicable to direct loan or grant
assistance provided for the rehabilitation of private property
as provided in regulations of the Department of Housing and
Urban Development set forth in 24 CFR Part 570 Subpart K, a
copy of which is attached hereto as Exhibit B and incorporated
herein by this reference.
Section Thirteen: Term
The term of this Agreement shall be two years from and
after the date hereof.
Section Fourteen: General Provisions
A. Any notices or reports required by this Agreement
shall be mailed or personally delivered as follows:
Village
Terrance L. Burghard
Village Manager
Village of Mount Prospect
Village Hall
100 South Emerson Street
Mount Prospect, Illinois 60056
8 -
Lending Institution
Mount Prospect State Bank
111 East Busse Avenue
Mount Prospect, Illinois 60056
B. This Agreement contains the entire understanding
between the parties and each understands and agrees that
no other representations have been made by either to the
other.
IN WITNESS WHEREOF the parties hereto have caused this
Agreement to be executed on the day and year first above
written°
Village of Mount Prospect
Its: Vi{lage President
Attest:
Village Clerk
Mount Prospect S~e Bank
By:~~Y~~~A . ~ _
Its: Senior Vice President
Attest:
By:
Its: Assistant Vice President
570.513 Lump st,.m dr,-wdown for prop-
erty rehab:.ikation
Subject to the conditions prescribed
in th5 section recipients of grants
under th~ Part may draw funds from
thc letter of credi~ in a single lump
~um to establish a rehabilitation fund
in o:~c or more private financiM insli-
tuSSahS for the purpose of financing
the rc}-.a~i!itativ~ c~ ~:riv~tc. ly
proL. crde3 ~ a ~ar: of the recii:ient'~
con.raw, ky deve!o~men~ ~ro~l'am,
!unfl" means a fund esta~!ishcd wilh
block grants drawn down iii a lump
suin from ~he r~ciDient's Icl%er of
crediL for use ir: u rellabilitation fi-
nancing pro::ram under the ~erms of
an agrccla~r~% be%v,'ccn %he block granl
recipient and %he depository pr[va~e fi-
nallcizl inJtitution pursues! to the re-
quirements of thb section.
(2) "Private financ?.l ins~itutlon"
mer. n~ z depository (inctudinu
savinns and loan ~socialions. credit
unions end other financial instku-
ticnsa in which deposils are federally
insured, and which is z party to such
an agreement.
(3) "Private Iunds" means the funds
of the ~rivxtc financial inz~itution.
Frivnu? funds include funds held in
trust for %he bencfi[ cf bon~fio!ders or
no%chold~r~ of ~he CD~O recipient or
its aucncy where such bond or
proceeds are to be used m connection
with the rehabilitation program.
(4) "R. chzbilkz{ion" means thc ac-
tirkies eliglble fo:' rehabiUtaUon of
proDcrUcs purzu:~:,~ tc ~.570.?02fc).
ciudlng the acqu~[~ign of properl!ea
fur -,.hab:.V;.:tio:~ by p:'p.v, te
&=Z;':!liZf:d for Drofi[ ¢.t o,"1 :t riot-fof
~,rofit o.'.,.~is, and ti%,: rehabi![ra,'.i.Pn of
'co:::merc:.al and i.':. us,r.~l buildip, g~
a nd si r n clur,.-s pu.~$t.,~ r:t
'.. 57:3.20:3,:c?, i ;.
,'b) ~equire::':e; t .for agree:re, cna ;.
'.vriucr, kf~re.',:::or:,, fc,: the deposit of
bi!itation fuP, d shall be executed bi,'
the block grant recipient and partieS-
patina prix, ate financial institution(s).
The agreement shMl specifically de-
scribe the obligations and resDons!bil-
Sties of the partie~ and the terms and
conditions on v.:hict% such funds are to
be deposited and used consistent with
the requiremen.;s of this section.
Except ~ ma}' otherwise be author-
izod by the HUD Area Office in con-
nection with approvals for uses of the
rehabilitation fund pursuant to para-
graph (c)(5) or ('~). the agreement
shall authorize the use of the rehabili-
tatlon fund only in co,nnection with
grants and loans rm~da within a period
of two yc;,.r:~ from, %he date of the
ag~ ce,men:. The d~scz'i~tion of ['_;lc pro-
po:.¢:o use of depc:zited funds in tl:e
agre.q~,e~t :;."'mil i?~cln(ie a statement
an .'.he inte::ded usa of loan repay-
men:s and futerest earned. Thc agree-
merit shall expr,~saly p;'ovide that its
tim provisions governing lump sum
drav,'do:.vn:; for p,'~,~ertv - ' P:' ": -'
~ 570.513 of the .~-IDD reeu!ations on
co!rm-,.unity development block
2i CFR Part 575.
(c) Uses of rehabf!ilation fund, The
rehabilitation fund may be used for
the fol!owin£. I,Urposes:
(i) To make direct rehabiiitation
t~,.b]ish a fund for payment of subs:-
~'rR'ate financial institutions
Vale funds;
(3) To tvaa,'s, ntez- the r.~paym~nt of
rei'.,~.bi!i!'ztion te:~ns made to Prcpcr~y
.~vrn. ers by private financial institu.
tlon~ with private,un.;>, ~ · '~"- or
(4) To serve - '~"-. -
as e~., :-tCr~.l for financ-
ina actualty extended ~,.; the app!ieant
~o,' ~pp!icant's ,.,,m.~) whore au.2!',
n$.n'Jk!g is uaa, d [o I,.:akc reh~biiitatioa
los l.~ or
152
EXHIBIT A
rLmdC Ih~:tn,,i',l in.:~ittHim~ ]'~laled fo
h:H~iHIn~iml (ff r?riv:He proper[y; or for
hy IiIID con,i-tent with thc
p;i;'a[; ft;~'da IVhcr,. tho rcJl~b~lit, n-
~t~ t]H' bol'rtJwpl- or tho p:'ivalo flip(Il.
~h,' rclml,;liialitm l,~al~; ItUl~i(' with
:.,~"i~ l'ri~=d= ftmr;a shrill 1;n subjcc~
vk!cd for the rehabilitation of l)~ivate
prop(,rly trailer t.hi3 part.
(o) T/t/lc limi~ o?l ,~[(frl ~lf ?/:.C of
pozih'd .ful~dx. Use of file delm:;ited
d?'.t.d or ~:uai'tlItct.d) lrlllal, sinri wit
i5 days of khe deposit, alto,id usc of
deposited funds not sb~rl, wiLhin 45
d;iya, LJu, rpeipit'/~t, may bo r~'qtlircd 1)y
IiUD to return :ill or part or the
m¥.it,,d fl!:lds to the hqter of credit.
on dcl~o:iJt ~.h:dl he l'cturnud to the re.
Cil.lcnt's lelt, er r}f cit.;fig tmlr,,;s
bh,ck I't':klll. rceipienL lifts h,x'h O:' 14
l),'r/rtd. In ;til(lJt[o~l, Lbo blot'k iii'lin[ re-
cJpl,,n[ :ihall l'er;er?e Ibc right t.o wll h-
draw f:'m~ LJm rellablllirtt[oI~ fUIld pJly
H;/q~lhl:Ued RII1OHDIe: roquh'rd by IIUD
hi Ibc f:x~'re:ls,, of e,~rr, ell :e nr
~':~?0.:,i0~i~l of the r~
{g) hzteres! car,led on lhn rchabilila-
lion fund. InLerest em'ned on the reha-
hilil.:~lioll ftlltd ~;}lltll bo tlIIO(l
to the terms all{I eollditloBs of Hie
(10 Itc ;uvst /or IlUI) review and
iiFt'il t)ffiefi l't,vipw alld approval of a re-
qllt'l;t [of It IlIIBI) gull1 dl'aWdUWll Jg re-
qtlilt,d prior Io drlIwdowll. IIUD review
can Im carried OUL anytime during the
program ycn. r hilt llclmrally IIUD will
review these requests as n part of the
review and approval of a block
;lpDliCaf.[O~l OXCC]}L thoso t'eqH0StS Sill J-
milled in conJunctim~ with grants
made under the Secretary's Itllld for
new commut~iMes. A request submitt.cd
itl co:llleei.Jon wit.h the new
lies fund is subject to the require-
menla of Lhis sectioll; however it sba. Il
be r,?viewod altrl approved by the New
COllll;IUIli[ Jell Dovelopment Corpora.
lion, which approves alld
ftllld. 7, II rr':llU?st.s for dr~twdown shall
inch
(1) h copy of tim wrlM,en ngreemen[
described in paragraph (b);
(2) Tl~e reasons for tim loealR "-
belief thnt the agreemenc meets tilt
IIUD :tpprov:,l si.r~d~rds scl fol*{.ll ill
paragraph iix and
~:t) Certilication. described In para-
groph (D(2)(D; where Lhe request pro-
posoa that the benefit to bo derived
fl'Olll ]tmlD Stll~l drawdown qualifies
under I)aragr:tph (i)(2X.l).
(il HUD review cHle~a for ap~m~ua~
of le¢;'lTJ aura dratvdoton request. Tim
iIUD t,rex office shall npprove a re-
atm::t for It, up sum drl~wdown If it c!e-
termim..q thak the fllllds will be depos-
It.ed iH one or moro private fhlanctM
ins/ltutions under tm e, gz'eement which
includes, one or more ol the commit-
menls described In paragraph (D(1) of
this n~,ct.lon; meets Lhe benefit t(:sl.s dc-
uc~Ibcd )n l>arngraph (t)(2) of this
CJUI'i: li~oClg t. lle tests eonccrnlng
p:tragr~mh (1)(3) o~ II, Is 80c[!oI1; nIld
otherwise m~,ets ~he requirements of
parv.grr.¢l~ (b) of this secl. lm~. Constat.-
ertl wl2h t.]w llft[JOl];~I gonl of oxptmd.
Ina thc opport, tt~iLlu:; roi rnlnm'l[y
huMI,L, ss cnterpri~;es, the IIUD aren
153
- office ,'droll ellCotlr;tge block Hrltll[, re-
ct[,Jelll.t; Co ti:e(: {llJl{ol'il y b;il'~kS (p. J)lMlk
wh{ell i,q ownod nL le:,s[ 50 pel'ecn[
¢iol im~tilutionx, ti1 (2t)ltl.rl{JLIneIit Of
privnte fluids lot the rchnbiliLltt[otl fl-
are suhsLnnLially In Cxccss of [Jle de--
pos[[ or block ~l'~tll{, tim{Is;
(ii) ComnHLmen~ o[ private fulfils for
rehabilital.lon fin:racing acLivitles at
Beluw-mn.rl:~t interes[ rates, or with
longer repaymenL poriods, or ~[ higher
risk than would m~rnmlly be La.ken:
did Provision of administrative serv.
icps by th,, financial ii)sL{LtJLlolls
support of Lhe rehnbilita[ion
.aeUvitles a[ no cu~t. or a~ reduced .cost.
(2) Benefit tests.--.(i) Bqten mather
r~c fnl~r,.s~ f3 p~yobl2 o~ lhe rcimbilf.
Iv. lion fund. Wlmn iuLerest, at Lhe
Luiity ami size is payahle on the rcha-
bilitation fHNd. [he almliennL musL cm-
tiry [ha! the emnmhmc,iL under Lhe
ggrO(Hllci![ pUI'SU p. IIL Lo
{il(1) Drovidea a significant benefit
ri:eel i11g the ,,eeds or ira rcimbllitation
objecbives consistent wiM~ iM block
grant application 8rich cert. lfleatlon
shall be accep[ed by the Area Office
for the p~lrpos~ of taco{lng t. he re-
quiremen~q of the bem, fH.s test nf t,his
paragrnpil ill the Id)sc'nco ol
Lial evidence l.o tho conl rary,
(ii) R?~en m~rt'el ~'ah~ infe~'~.~l is not
Da.$,able on fhe rehabilitation fund.
~Vhen le:;s Lhm~ the ;t~lt'knt rate inLor-
es~ is payable on th~ rehabilil,ation
run0. Ihe value nr {he beneflLs o[ the
COD!lltit. II!tqlL llilg~(,P J ho agreement
fort~gOlltL Thc (]o/)l}?:!l'J~;DI10[ (.h(] bczle-
~it and interest Iorm:one shall be
b:med on the
(A) ~Jsfimah, of Jo;'((~ol~e interest. An
estimate of the differo~icc lmLweo~t
inLm'v:d. ImY~:blc t~t,I(.r the
and Lhe al]lOtlltL of Jll[or~.q[ t. lmL would
NlOI1L]IIy bahmeo of [h~ rehablli~aLlon
lurid at th(, llll),l'][c[. Fate for depoM[s of
sim ilar maLurit.y alld size.
(II) ffslftl,nfe of t'~hte of benefil& A
qtl;UH.Ified est{male of the valtw of Lhe
belief lis of Llle eon~ndl, mc~it under
Pgl'¢('llleItL..l"er exnmplc. {[ m,; a result
of the {lept)S{l; the I)rivate Ilnanchd In.
2,t--?{911s[Ng ¢::!;i iJ/',;[;:l I: iv I'{..~r',,,.
sLILuCton provides frec loan m'i~d,ml ion
sm'v/ces. [Jle b~llOfJ[ woll]f[
that wotlld otherwi.~o hnve
[or stleJl m~rVIcc~.
(3) ll(tsi.~ for ~tlno.nl fg
depoMt rot a rehnbilihdim~ fu,,l shnll
hoc exceed the amount of /II~1({:; {hnt
Lhe nl)l)]icn, nL I'em';on:d)ly O??!),'('ls will
bC l'eQtlJrod llll(ler tho 1.1'l'la;;
Bgl'Oe111011~ dtlring tho ])erJod of Lh.,
a~reemen[ and based Oli eJ{.hel'i
(il Prior levol or rehabi]il;l{.ioil activi-
ty: or
(ii) l~ehabilitntion :;tarli,m and man-
a~mmenC p!nns o.' I}ic {ocality for th,,
~eriod of the af:r~.emcnL.
[dd l~It 2o996, Apr. 6.
154
f'.r;~.:i: ..'a 1-'~.. 2439.1. June ~. !§75.
~O ~ore ~h~-n ten Der centum of the
estimated costs which are expected
be ~ncurred dur~n~ ~ny ~ro~rz:n
~zy be des~mted for unspeclf~ed
]oczl option ' '~
~.c~l.~c~s. which ~rc eIJ~i-
,,m ..... ~ to Subpzr~ C, or for
co~:..,,~ .... ) account for activities des-
/~zted by the applicant pursuant to
~ 570.305. Pun~ desi~ated for unspe-
cified local option activities are subject
to [he conditional approval require-
meats of ~
:~-~ F~ 2~C9~ Jun~ a 1975. ~ amended at
~!o:: 109 of [h~ iiou~in~ ~-~ .... '
~:.- Dcveh?pn~en~ Ac; of i~74 requires
~.hali cn t~qi. [:round of rg~, co!or, na-
t:~..~: origin or sex, bo excluded from
~,-. ,t.:., .... be d~niod the benefits
of. or b.} subj~i:tr:J to discrimination
-...- ...ro.~m o, activity fa,dad
pl:lsuan~ 1o {hi~ ~a:'t. ~of pgrpo.tes of
154
defiued ,~ any funclion conducted by
an identifiable adnlinis[rat|ve unit of
the recipient, or by any unit of govern-
m(.nt or private contractor
CO:iUllunity deveJopznen% [~n~ or
loans from tile recipient. "Funded
whole or iu part with comnzunit.y de-
velopment Iunds' means that commu-
nity develoDn~ent funds in any amoun[
in the form of ~ants or proceeds from
HUD Uuaran[ced Jeans have been
~ransferred by the ~ecipient to an
identifiable administrative unit and
disbursed in a Dec,ram or activity.
(bi S~ccific di$c~mfnalo~, ccZions
pro,hibited and co~eclive aclio~s. (1)
A recipicnt may not under any pro-
~ram or activity to which the
tior~ of this Part may 9.pply. directly
or through contractual or other
ranzements~ on the Cround of race,
color, n~tional origin, or sex:
ii) Deny any facilities, service:.
nancial aid or olhcr benefits
under %he DroTram or ac[R'ity.
(ii) Provide any/aci!i~ies, services.
nancia] aid or other benefit~ which arc
different, or are provided in a differ-
ent form from that provided ~o others
under the pro.am or activity.
(iii) Subject to segregated or sepa-
rate treatment in any facility in, or ~n
any ma~ter or proceas related to rc-
cei~t of any service or benefit under
the pro,ram or activity.
(iv) Restrict in r. ny way access to. or
~n the enjoyment of any advantayc or
privilege enjoyed by others in connec-
tion with facilities, services, financial
aid or other benefi~ under the pre-
gram or activity.
(v) Treat an individual differently
from others in determining
the individual satisfies any admi~ion.
enrolh'nenl, eligibility, membership, or
o~her requ/re~acnt or tend;tier, wkich
individuals must meet in order lo be
provided any faci!!t~es, services er
o[h~r benefit provided under the
grain or activity.
(vi) Deny an opportunity ~o parrici-
De-Lc in a program Or activity ~ an era-
ployct.
(2) A recipiem m:~y no% uti!izo crite-
ria. or me,hods of admlnlstraLion
which have the effec~ (,f 2ui'deeiin~ in-
dR'!dnals to discrimim.tion on the
beats of race. color, n~t!or;21 0rlg~n. or
~,,-x. or lave ll,e effect of defeatih¢ cr
substantially /mp~-ir/ng accompligh-
raent of the objectives of the program
or activity with respect to individuals
of a particular race. color, national
origin, or sex.
(3) ~ recipient, in determining the
site or location of housing or facilities
provided in whole or in part 'with
fun~ under [his ~art, may not make
selections of such site or location
which have the effect el excluding ~-
dividua!s from, denying them the
benefi~ of. or subjecting them to dis-
crimination on the ~ound of r~e.
color, national origin, or sex: or which
have the purpose or effec~ of defoe%-
ma or substantially impairing the
complis~ent of the objectives of the
Act and cf this section.
(4)(i) In a~inistering a program or
activity funded in ~'hole or in
with community development block
grant funds regarding wt~ich the
cipient hr.s previously discriminated
~g&ins~ persons or, t}'ie ~round of race.
color, hat,chat oritdn or sex. th~
ant must take affirmative action
overcome the elfccts of prior discrin~-
nation.
(ii) Even in the absence of ~uch Drier
discrimination. ~ recipient in ,dminb-
teeing a projram or activity lunde5
whelk or in Bart with ccmmunity d~-
vclopment block ~rant funds shou)d
take affirmative action to overcome
the effects el conditions which would
otherwise result in l~alting participa-
tion by perso~ of a particular race.
color, national ori~ih or sex.
prey!cue discriminatory practice or
usage tends, on the ground of race,
color, antler.al orig~n or sex. to ex-
clude individuals from p~.rt~c!Dgticn
in, to deny then: the beneflgs of, or [o
subjec~ them to discrimination under
any pro,;ram or activity zo which thk
part zpplim% tho recipient h~ s.n ob!i-
gat.ion to take re~on~91c adrien
remove or overcome the consequences
of thc prihr discriminatory practice or
usage, and [o gccornpllsh the purpose
of the Act.
(iii) A recipient she. II not be prohibk-
ed by this part froth tgi:lng ~y action
td!~lble un.let Subpart C to
an imbalance in services or facilities
provided to any geo~rr, phlc area or
sptcifk: ~OUp 0f Persol%s within its ju-
risdict, ior:. where the >urpoze cf such
155
EXHIBIT B
acLion is Lo overcome prior
I orv Prpciiec of usage.
Ct,H~I':H'y ~lt lhis SPC~iOIL not]l~Hg COll.
f:wilitiex or rest. room facilities for
cliff area{ ~exea. l"m'thcrmore,
'13 1"I2 g'l<7. Mar, ]
l'alieic~ .act e! 1970 (Un[Yorm Act) and
HUD implcmcntinu rc. gulul, ions at 24
family, ind[vidt~o.l, business, nnnl)rofit
such acquisition.
(I) ABv aCQUIsi~i0D of real properly
by a ".~i.:tR. r'E(.!~c/,"' {il]d any displ:[ce.
of rem Prol,,,r~y ::ball be considered Lo
l:,r for ;.u :wi/vity ms:;istcd undcl the
l:Hio{~s ~t 2,[ C}.ql /'art d2 It the acqul-
~:i{ioi1 or (lJ::lqPt't'tf~oIi50CCIIUS OD or
aPl~l!cn(im't rctll!t,~cfiil;j }~ederal ffngn.
activity for which ti~ acquisition
hecn or will bp ur:~erlckcn, lie':leVer.
if (he recipient dty(,'rnahlcg [Ilar an
>,u ch ~-eqt{isltie;~ or di~'plneen{9{~ sl~l]
Tho rcciph,n{'>. :'etwr:,l ~or HUD con.
('urren?, r:hai{ inch,tie lis eer/irieat. Ion
th;xL 0.~. lieu Lime t)f ~lte ~mqui:;itJon
an arsJsted aellvlty a{~¢l
(2) Thc rouiDleIlL or IIUD. which
ahall mnnil, or rOlllll}lll~tlce wiLh the
T~tlc 24~HouMng and Urban Davalopnmnt
Uniform Act, ,nay determine that an
acquisition Deim' to subnfisslon
application for fimu,eial n.q~isto, nee
a~(I :t~ty l'estd[.[~l~l tlit;pl:tcenlt~HL w(trt'
(m rried chi for ~II m';~;ial.ed acl. lvll,y and
are sltbjecl [o lhese regulnMons. In
absence of such a determinaLlon by
tho recipient or HUD, ally such
silica or displacement occurring prior
lo subnllssion of an nDPlieal.ion shall
not be subject to these reg~llM, lons.
Tho reciDient may at ~ny lime request
a IIUD determinaLIon ~ ~o whether or
I~o[ such an aequislHon and any result.
lng displacemenL are considered [o be
for an assisted activity and to be sub.
jeer to ~hoso regulations. The request
shall be submitged to the ItUD Area
Office and shall ineh~de approprD, te
background documentation,
(3) If the owner or oceupanL of
Drol)erty disagrees with tile rceipient.'s
determination that ~he Uniform Act
and tile regulations.at 24 CP'~ Part 42
do not apply t.o tlm acquisition of thc
prop(,rLy or to a displacement reslHt..
ina from the aequisit, lon. lin/she may
file an appeal under 24 CY'~ Part 42
8ubpart g (Appeals), whether or not
the ~cqttls]tton or displacement occurs
before or after submission of the ap-
plication for financial t~sistanee. Thc
specific paymtmts and other assistance
for which an appeal may be filed are
~et lorth in 24 OFlg 42.703(a).
(b) The cost.a of re!ocarina
and ~saistallce under Title Il of the
Uniform Aec shall be Paid from funds
provided by this ParL and/or such
other fullds as may he available to tl~e
loeal[l y from any acm'ce.
(o) The reeipienC may l,Ovtde reloett.
tion Paymet~ts ~t~tl asslsba~Ice for
viduals, families, businesses, nonprofl~
ollgaBlzatioI~g anti fu. rm hi, err. lions dis.
placed 1)y m) ac(ivity lhal, Is not sub.
jccg to 5 570.002(..). Th,~ ~ccil)tcnt.
oDmr ;,ssls[anee r.t levelx above those
estab!ishe~ ul~der th~ Unlform Act, All
8tlC}] rah)enrich B-qsJ~;[~I]CC net rcqu[rc~
by the U~lform AcL must be deter.
tn!ned by Lhe rca!pi,mt to be :,ppropri.
a~e to Its colllln {lll[y developmenl
gram, UI1]es3 at{cb DaYme!lt~ ~d as.
sl:,tn, nee nrc made Dl~rstmnt to S~aLe or
{nc~,.1 law, tl~e l'ce{DloiH slm]! adopt a
written Policy n. vl;ilablu to the Dtiblle
sett.[l~g forth tho relocntioa Pnymerfl.6
156
Ch. V~Office of Asst. Se{/y. for Comm.
and aaststanee It, elecL~ Lo provide and
providing for equal Dayment.q nnd
slstanec within each clips of
{)l~c('t's.
(TiLle I, Ih,us{ag and CommunlLy Develop-
men~ ACL el 1~4 ~42 U.S.~. 530~ e~
TIUe L }.lmm{n~ and Community
men~ ACL of 19~ (Pub. ~. 95-128}; an~
Vid). Dagariment o~ Houaing and Urban De-
velm)men~ AeL t42 ti.S.C. 3535(d); TIUe I
Lhc llougii~g ~tt:(l Conm~ulllty Duvelopment
AcL of [07d (dY U.S.G. 5301 eL seq.): sec.
Uniform ReloeaMon A~slstance nnd
Property Aequlslllnn Policies Acg et lg~0 (42
U.~.C. 4~0i): ~ec. ~(d). I)cDar[men[ of
I.~ a~ld Urlmll I)evt'loDmell[ Act (42 U.~.O.
3535 ((1))).
[40 PR 24093. June 9. igC5. ~ mnended
4d PI~ 502~4, Aug. 2~, lg79; 44 ~R
net. I, Ig?~]
~ 570.003 I'hwlronment,
In order [o assure Hint the policies
of ~he NaUonaI Environmental Policy
AcL of 190~ are mos[ effectively hnDle-
menLod tn connceLion wi~h ~he
~cndimre of funds under ~hia Par~
reeipien~ shall comply with HUD ~nvt-
ronmen~al Review Procedures (24
CF~ Par[ 58) leadin~ ~o eerLl[ieaLion
for [l~e release of funds for pariicular
projecLs. These procedures set forLh
the regulations, policies, responsibil-
IL{cs aBd {)l'Oeedtlres goverlling I,he ear-
tying ouL of cllVll'ollnlc~[~l review re-
sponsibilities of recipients,
} 570.fi0-1 llislor}c preservntlon.
~.eclpient.s mus~ take into account
the effect or a project on any district,
site. building, structure, or object
listed in or rouud by ~he Secretary
the h~terior, ptH'sua~lk ko 34 O]~R P~rt
gOO, to be eligtble for IneluMon In the
National Register of Historic Pluces.
maintained by the Nntlonal Park 8err.
Ice of thc ILS. Dvpart,nent of the In-
Lerhn'. Recilqents should nmke every
e~ro,-t tu ellmhmLe or mlnhnlze gay
verne effect on a histo,'lc Dropergy. Ac-
tivities arreeUng m~eh properties wlll
be subject to rcqldrenlell~ set forth In
~ s'10.~0a. Reelp.mts must ,neet the
hlsl.~rle l)rcsel'va~{o~ reqnlrement.g of
l"ub. ~. 89-065 uttd the Arche01oglcal
and liistorie PreservnUon Act of
(Pub. L. 03-~91). and ~xeeuUve Order
11593. including thc procedures pre.
scribed by the Advlsory Council on
Planning, Dovelopmont § 570.607
Historic Preservation'In 3G Cf,'l~ Par(
800,
§ 570.605 I.abor
All laborers and IlleehallleS
Dloyed by coBLrnct.ors or ,~tlbcont.rac-
tors on eonstrucHon work mssisled
under this Part shall be I)alcl waf:e3 gt
rates noffless than those prevailing on
Mmtl~r eons[ruction in the locality
determined by the 8ecretar7 of I,abor
-iu accordance with Um
Act, m~ ~mended (40 U.8.~.
fi). and ~hnll receive over[lain c0m
s~L}Oll in nccordatlcc wiLh nnd htfl)jt:cl
~o the provisions of the Contract Work
Hours and Safe~;y 8tundard:; AcL (4O
U.S.C. 327--333), and the contractors
and subeont.rac[ors shall comply v:ith
all regtll~tions issued l)ttl'Sll:lll[
these AcLs alld with olher al.U~l!cablt.
Federal laws nnd regulations pcrtaln-
lng Lo labor standards. This scetinn
.sh~ll ~DPlY I.o ~he rehabilitation ol
restdenl.lal property orlly I1 suel~
er~y 18 designed for residentkd use ~f
elghg or more families. The 8oeretary
of Labor ha~, with respect to tt~e
sgandards s~eelfled In this section, the
at~Mlorl[y and funetloBs se~; for~'
I~eorg~nizaUon Plan Numb~q' 1~
1950 (5 U.8.C. 133z-15~ ~md section
of tlm A¢~ of Jtme 18, 1934. ~s amend-
ed (40 U.8.C.
~ 570:606 A~chi~eeh,ral llm'riera Act
1968.
~Vel'y building or faeilHy ~other
~l~an a privately-owned residcutD, l
StrtlCttlro) .les] gncd, coz~stru('tt'd, r,r pl.
~ered with fired:; m~de avallnbh, t,nc;c.r
[l~is part, shnlt conmly wtLh th,,
ctll[relllell~q of []IC "AiB(tr[call Slnn(l.
ards Specifications fro' Making Build-
lags and PactllUes Acceaslble In. nnd
Usable by, Lhe t'hyslcally llandi.
capped," Nmaher A-llq.l~I~ 1971.
subject to ~he excepthms ctmlnhwd m
41 C~'~ 8ubpart 101-.19.604, Isnued
DUl'suan~ ~o 1.lin Archlteetural Barriers
Acg of 1~68, 42 U.S,C. 4151..
'[4a F~ 33020. Julle 28, 197~]
~ ~70.607 Acllvlll(s rt, r which olher al funds muat be somfht.
A redplent may use communit, y de-
velopmen~ fuild~; for the Dl'Ov~i6n of
D~blle. ser. vlces ~ dcscr~betl
157 :
~ ~ ~0 Z01O')(I3L 19oV~dcd, ']'haL:
FruLcc~oa AcL of H)72 (Pub. L. 93-g34)
(:; ,. ULt. ;...'>.'::chapter ~/ apply to
d,'flHt, d U~lder seql, loz~ 3(It) of sald Act.,
74~HousTng and UrI.'..n Dovnlopmot,i'
on ,'m,'! :Lfh,r July 1. I~'~:~ (or one year
n,~lifi(,d of ils id(~ltJifJc;tl, J(m m; a com.
U~t i11 :Llty :~F(~3 LIHtL Jtl~s bL'OH J(h'llti-
lied by {.ii(' Secretary of lloUSJllli
Sl~,'('ial flm)d )ln.zarda llllJ~ tim eom-
is (hell I.~articipafjIl~ ill tho Nkl.iollal
FlOOd I~lsttranc(, ProjTranl, NoLwi h-
st.auding [l~, dale of HUD nl)provnl of
l.ho reeipionts' applie~.t, io~L flmds
pI'OVCJ ttlldcr J. hJ5 Pltrt ~,]lall 11o[. be
really notified, whichever is later, for
:tn ;,rca id('uf, ified 1):,' t/Itt 8pCl'PJ~ry
auto? with J. llo F~quJ!'CDH'II[.~; Of tho Na.
MHLJl~ JO ~'CfiOll 2Ol(d). of said Acl..
The usg of qny f~)nclz provided tHlcJt~r
ihi3 Part ret gwquisition or constrtm-
timt mn'poses in klcnLificd special
rio,nd ]i:l;mrd ~,I'en ~ shall bo stlbjecC t.o
ihe t~an,'ln~ary pt))'ch~.se of flood [n-
l,rov]sh)ns o[ the Clean AIr AcL.
ml~ended (42 U.~.C. I85'I eL seq.), and
the Feder~3 Water Pollution Conlr:))
AoI., as amended (33 U.,%C. 125l
(40 CI,'/l l":trL J5 nll(I 40 CFi~ Par[ (}1).
~ 57a.q~ I /,e~,l. Jlt;;;cd Paint Pols,,nin.c
'Fh~ r(~c~t'~[t,~t TI;II~ C(H~T>]5' WIC!~ the
Dcp~lq tYICDL'}; [,(':)el B~sPel Pr: JIlL
]ationa (2'} C:.I"I~ I';;:'L 35) JS~;tlOtl
ant Co ihn T.,tmd-73?a(xl t'alnt Poisoning
Pl'PVurl(lr)ll AcL (42 U.~.C. 4831 uC
rcqul:'h)g t~rohlbltion of t. lm use of
tlndm' Ll~ls Par( {s used directly or lndl.
rectly by the r~c!pJo~lL for cvt~Mrt,e.-
t. lon, rthn. bJlllt~Llun, cr
of ln)ll~t:dh~Lo Icad-bm;ed paint
In resldent]M J;TYllCt. III'U3 r~ssl3Led undgr
Ch. V~Offico of AssL $ocy. for Corem, |:lnnning, Dow~Iopmen!
t,h[:: l~Itt't.: Ittl(l noLiflcaLIon ~f Lhe haT.- ' .......
.qrtls t)f JeJtd.bmsed lminL poisoning Lo
MrtlcL~u'es coxlstrlle[od prior Lo 1950
;t[1(1 :;s~l:ded under thia ParL.
[~a 1.'1~ 33020. gune 28. lg~]
~570.G12 Acthqtles conducted by
it e.(tt{ea, small 1)uainesa investment
eom{mtfit'~ nnd Iocnl develo! men( cnr-
porn(ions. [ l{e.en'edJ
~ 5~a.fit8 Dispoaitlon. [Reset'ed]
~ b~.gl4 Use of Dclmrred, S,Sl)ended, or hceligihle ContrlTcl,)~ or ~ubrccipieuts.
Block ~ran~ funds sh~dl not. be used
dirceUy or indh'ee[ly Lo em01oy, award
conl.rael~ t.o, or ot.herwlse engage
services of. or fttlld any conLracLor or
st~breeipien[ duri~R ~ny per}od of
bp. rll~OtlJ-, sUSDeBS]Oll, or placemenC in
ineligibili[y s~attm undm' [he provi-
sions of 24 CF~ Pnr[ 24. "Subreei-
pmnts" are either eligible entitles
under ~ ~'/0.20~(~)(~) or pr[vat.e entl-
t,tes ~[s~e(l under ~
[44 F~ 41080. Jt)ly 13, 1979]