preparation of final plans shall be repayable in full regardless of the number of minor changes provided the scope or size of the project constructed is approximately the same as that of the project planned.

§ 490.34 Proportionate repayment of advance.

(a) If the Administrator determines that construction of only a portion of a planned project or of a separate segment of a planned project has been undertaken, a proportionate repayment of the advance shall be due. The Administrator will determine the amount of such proportionate repayment by making a comparison of the project planned with the advance to the project placed under construction. Such comparison shall take into consideration project type and scope and include such factors as specifications, cost estimates, drawings, planning surveys, site location, subsurface studies, and area served. This § 490.34(a) shall not be construed to supersede any agreement executed under the Third Advance Planning Program providing for a schedule of repayment under other terms.

(b) If the Administrator determines that a proportionate repayment of the advance is due and that there is no reasonable likelihood that the remaining portions of the planned project will be placed under construction, liability for replayment of such remaining portion shall be terminated as provided under § 490.36. If the Administrator determines that there is a reasonable likelihood that such remaining portion will be placed under construction at a future date, liability for repayment of such portion shall be continued.

the liability for repayment of such advance shall be terminated. This determination shall take into consideration, among other things, such factors as significant changes in population, technology, community needs, and governmental organizational structure of the applicant which would obviate the need for or diminish the usefulness of the planned project.

(b) If the Administrator determines that there is no reasonable likelihood that the public work, or any portion of the public work, planned with an advance will be constructed, liability for repayment of the entire advance shall be terminated.

(c) If the Administrator determines that a proportionate repayment of an advance is due and that liability for repayment as to the remainder shall be terminated, such determination shall be based on the considerations set forth under § 490.34.

(d) If no construction has been undertaken and the Administrator determines that there is no reasonable likelihood that the entire public work planned will be constructed, but that there is reasonable likelihood that a portion thereof may be undertaken or started in the future, liability for repayment shall be terminated in part and shall continue as to the remainder.

§ 490.37 Termination of agreement.

If the Administrator determines in accordance with § 490.36 that there is no reasonable likelihood that the public work, or any portion of the public work, planned with an advance will be constructed, the agreement for such advance will be terminated.

§ 490.38 Termination of liability as result of Accelerated Public Works grant.

If construction of a public work planned with an advance made under the Third Advance Planning Program is initiated as a result of a grant-in-aid under the Public Works Acceleration Act, P.L. 87-657, 76 Stat. 541, there shall be no liability for repayment of such advance, under subsection 702(g) of the Housing Act of 1954, as added by section 6 of the Public Works Acceleration Act. If the Administrator determines that only a portion of the planned project has been constructed as a result of the grant-in-aid assistance, a propor

(a) "Local public bodies and agencies" means any public corporate bodies or political subdivisions; public agencies or instrumentalities of one or more States (including public agencies and instrumentalities of one or more municipalities or other political subdivisions of one or more States); Indian tribes; or boards or commissions established under the laws of any State to finance specific capital improvement projects.

(b) "Public purposes" includes the construction of public works and facilities; retention of land as open space to be utilized for recreation, conservation, scenic, or historic preservation purposes; and other purposes recognized as public under applicable State law, subject to such limitations as the Secretary may establish.

(c) "Secretary" means the Secretary of Housing and Urban Development, or an officer authorized to perform the functions of the Secretary.

(d) "Section 704" means section 704 of the Housing and Urban Development Act of 1965 (Public Law 89-117), as amended by section 603 of the Housing

and Urban Development Act of 1968 (Public Law 90-448), 42 U.S.C. 3104.

(e) "State" means the several States, the District of Columbia, the Commonwealth of Puerto Rico, and the territories and possessions of the United States.

§ 491.2 Grants for advance acquisition of land.

Grants may be made to States and local public bodies and agencies to assist in financing the acquisition of a fee simple estate or other interest in land planned to be utilized in the future for public purposes.

§ 491.3 Amount of grant.

The amount of any grant may not exceed the aggregate amount of reasonable interest charges on the loans or other financial obligations incurred by a State or local public body or agency to finance the acquisition of such land for a period not exceeding the lesser of (a) 5 years from the date of acquisition of such land, or (b) the period of time between the date on which the land was acquired and the date its use begins for the purpose for which it was acquired. If all or any portion of the cost of the land is not financed through borrowings, the amount of the grant shall be computed on the basis of the aggregate amount of reasonable interest charges that the Secretary determines would have been required.

§ 491.4 Requirements for assistance.

(a) Grant assistance will be made available only if the Secretary determines that:

(1) The land is planned to be utilized for a public purpose within 5 years after the date on which the contract to make such grant was entered into (unless the Secretary determines that due to unusual circumstances a longer period of time is necessary and in the public interest and reports such determination to the Committees on Banking and Currency of the Senate and House of Representatives); and

(2) The utilization of the land for the public purpose will contribute to economy, efficiency, and the comprehensively planned development of the

area.

(b) Grant assistance will be made available only if the applicant possesses adequate legal authority to finance the acquisition of the land, and demonstrates

that the land will be utilized for the anticipated public purpose within a reasonable period of time (as required by paragraph (a) (1) of this section).

§ 491.5 Diversion of land; repayment of grant.

(a) Land acquired with assistance under section 704 may not be diverted from the purpose originally approved without the approval of the Secretary. No such diversion may be approved unless the Secretary finds that it is in accord with the then applicable comprehensive plan for the area. In cases of diversion of land to other than a public purpose, the Secretary may require repayment of the grant or substitution of land of approximately equal fair market value, whichever he deems appropriate.

(b) An interim use of the land for a public or private purpose in accordance with standards prescribed by the Secretary, or approved by him, shall not constitute a diversion within the meaning of this section.

§ 491.6 Application of other Federal laws.

(a) Grants authorized by section 704 are subject to provisions of:

(1) Title VI of the Civil Rights Act of 1964, 42 U.S.C. 2000d-2000d-4, which provides that no person in the United States shall, on the ground of race, color, or national origin, be excluded from participation in, or be denied the benefits of, or be otherwise subjected to discrimination under any program or activity

receiving Federal financial assistance; and

(2) Title IV of the Housing and Urban Development Act of 1965, as amended, 42 U.S.C. 3071-3074, which requires that, as a condition of eligibility for assistance under section 704, the applicant will follow certain prescribed policies in the acquisition of real property, and also provides policies to be followed for the relocation of individuals and businesses displaced by the assisted land acquisition.

(b) An applicant for grant assistance under section 704 will be required to furnish satisfactory assurance that it will comply with the requirements and policies referred to in paragraph (a) of this section.

§ 491.7

Eligibility of land for other Federal assistance.

No land acquired with assistance under section 704 shall, solely as a result of such advance acquisition, be considered ineligible for the purpose of any other Federal loan or grant program. The amount of the purchase price paid for the land by the recipient of a grant under section 704 may be considered an eligible cost for the purpose of such other Federal loan or grant program.

§ 491.8 Information, application forms, and applications.

Information and application forms may be obtained from, and applications may be submitted to, the Regional Office of the Department of Housing and Urban Development which serves the area in which the applicant is located.