[Federal Register Volume 66, Number 139 (Thursday, July 19, 2001)]
[Notices]
[Pages 37878-37882]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-18074]



[[Page 37877]]

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Part VI





Department of Housing and Urban Development





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Notice Inviting Applications: Third Round Designation of Seven Urban 
Empowerment Zones; Notice

  Federal Register / Vol. 66, No. 139 / Thursday, July 19, 2001 / 
Notices  

[[Page 37878]]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4663-N-02]


Notice Inviting Applications: Third Round Designation of Seven 
Urban Empowerment Zones

AGENCY: Office of the Assistant Secretary for Community Planning and 
Development, HUD.

ACTION: Notice inviting applications.

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SUMMARY: The Community Renewal Tax Relief Act of 2000 authorizes the 
designation of nine Round III Empowerment Zones (EZs). Seven of the 
Round III EZs are to be designated in urban areas by the Secretary of 
HUD. The remaining two Round III EZs are to be designated in rural 
areas by the Secretary of Agriculture. This Notice invites applications 
for designation of nominated areas as Empowerment Zones. The 
designation of the new Empowerment Zones will be made in accordance 
with the designation process described in this Notice.
    Application Due Date: Completed applications (one original and 2 
copies) must be submitted no later than September 28, 2001. See below 
for specific procedures governing the form of application submission 
(e.g., mailed application or hand delivery). No facsimile (FAX) 
applications will be accepted for consideration by HUD.
    Delivered Applications. Completed applications (one original and 
two copies) must be submitted no later than 5:00 p.m. eastern time, on 
September 28, 2001. Up until 5:00 p.m. on the deadline date, completed 
applications will be accepted at the address and room number specified 
below.
    Mailed Applications. Applications will be considered timely if 
postmarked on or before September 28, 2001.
    Applications Sent by Overnight Delivery. Overnight delivery items 
will be considered filed on time if received on or before September 28, 
2001.

Electronic Submission of Application Information

    Information submitted electronically using the RC/EZ On-Line 
Application System must be submitted not later than 5 pm, Eastern Time 
on September 28, 2001. This is done by hitting the ``Submit'' button at 
each appropriate location in the software. The system will not be 
available after the deadline.

ADDRESSES: Address for submitting applications. Completed paper 
applications (one original and two copies) should be submitted to: 
Department of Housing and Urban Development, Office of Community 
Planning and Development, c/o Processing and Control Unit, Room 7255, 
451 7th Street, SW, Washington, DC 20410, by mail or hand delivery.
    For Application and Other Materials. For a copy of the EZ Round III 
Application Guidebook, which includes the Nomination Forms and the EZ 
Round III rule at 24 CFR part 598 (which also implemented EZ Round II), 
please call the Community Connections Information Clearinghouse at 
(800) 998-9999. Round III publications are also available on the HUD 
web site at: 
http://www.hud.gov/offices/cpd/ezec. Requests for application materials 
should be made immediately to insure sufficient time for application 
preparation. Hearing-or speech-impaired persons should use the Federal 
Information Relay Service telephone number, (800) 877-8339, to obtain 
application materials.
    The Round III publications consist of:
     Urban Application Guide for Empowerment Zones Round III 
(Application Guide and Nomination forms);
     The Round II and Round III Rule at 24 CFR part 598;
     Tax Incentive Guide for Businesses in Renewal Communities, 
Empowerment Zones and Enterprise Communities; and
     Federal Programs Guide.

FOR FURTHER INFORMATION CONTACT: For technical questions, contact Lisa 
Hill, Empowerment Zone/Enterprise Community Initiative, Office of 
Community Planning and Development, Department of Housing and Urban 
Development, 451 Seventh Street, SW, Room 7130, Washington, DC 20410, 
(202) 708-6339. Hearing-or speech-impaired individuals may call (800) 
877-8339 (the Federal Information Relay Service--TTY).

SUPPLEMENTARY INFORMATION:

I. Summary

A. Purpose and Authority

    The Community Renewal Tax Relief Act of 2000 (CRTR Act) authorizes, 
among other things, the designation of nine Round III Empowerment Zones 
(EZs). Seven of the Round III EZs are to be designated in urban areas 
by the Secretary of HUD. The remaining two Round III EZs are to be 
designated in rural areas by the Secretary of Agriculture. The CRTR Act 
also conforms and enhances the tax incentives for Round I and Round II 
EZs, and makes the new Round III EZs eligible for these incentives. The 
availability of the tax incentives is extended to December 31, 2009 for 
all EZs.
    Section 111 of the CRTR Act adds a new subsection (h), which 
authorizes the designation of nine additional EZs, to section 1391 of 
Subchapter U of Chapter 1 of the Internal Revenue Code of 1986. 
Subchapter U governs the designation and treatment of Empowerment 
Zones, Enterprise Communities, and Rural Development Investment Areas, 
and provided authorization by separate legislative enactments for the 
designation of Round I EZs in 1993, and Round II EZs in 1997.
    HUD promulgated Round I EZ regulations at 24 CFR part 597 in 1994, 
and Round II EZ regulations at 24 CFR part 598 in 1998. Separate Round 
I and Round II regulations were issued because although many of the 
Round I and II submission requirements, such as the strategic plan, 
were similar, there were some differences in the authorizing statutes 
for each Round. For example, the legislation authorizing the Round II 
designations changed the eligibility and selection criteria from the 
Round I requirements. Two specific changes in the Round II eligibility 
criteria were an increase in the size of zones and elimination of the 
requirement that at least half of the nominated area consist of census 
tracts with poverty rates of 35 percent. Round II designations were 
also permitted to except up to three ``developable sites''--parcels 
that may be developed for commercial or industrial purposes--from 
satisfying the two poverty rate criteria that otherwise would be 
applicable, but the size of the area given this special poverty rate 
treatment was restricted to a total of 2,000 acres.
    Unlike the differences in Round I and Round II, the eligibility and 
selection criteria for the Round III EZs are the same as the criteria 
that applied to the Round II EZs. HUD, therefore, implemented Round III 
by making only conforming changes to include references to Round III in 
part 598. The regulation at 24 CFR part 598 will apply for Round III 
designations for urban areas as it did for Round II, and this Notice 
Inviting Applications for Round III urban EZ designation uses the same 
procedures as the Round II notice published on April 16, 1998 (63 FR 
19162), with only the distribution of point values adjusted to reflect 
HUD's experience in administering the program. The designation of rural 
areas as EZs will continue to be implemented separately by the 
Department of Agriculture.

B. Available Resources

    The tax benefits that apply to EZs are the following: Tax-exempt 
bond financing, Empowerment Zone

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employment tax credit, welfare-to-work tax credit, work opportunity tax 
credit, roll over capital gain from the sale or exchange of any 
``original zone asset'' where assets are used to purchase a 
``replacement zone asset,'' environmental cleanup cost deduction 
(``brownfields'' tax incentive), and up to $35,000 of additional 
section 179 (accelerated depreciation) expensing.

II. Application Preparation

A. Notice of Intent To Participate

    Applicants should submit a Notice of Intent to Participate form as 
soon as possible. The Notice should be submitted on the form provided 
in the EZ Application Guide or on HUD's RC/EZ On-Line Application 
System. Instructions for gaining access to the system appear on HUD's 
web page at: www.hud.gov/offices/cpd/ezec. Submission of the Notice of 
Intent to Participate is not mandatory, but it will ensure that an 
applicant receives updated information. The Notice of Intent to 
Participate may be mailed, or submitted by facsimile (FAX). The address 
for submitting the Notice of Intent to Participate is: U.S. Department 
of Housing and Urban Development, Ms. Lisa Hill, EZ/EC Team, Room 7130, 
451 Seventh St., SW, Washington, D.C. 20410.
    The facsimile number is (202) 708-3363 or (202) 401-7615.

B. Application Requirements

    1. The application must include an original and two copies of the 
items listed below. To facilitate review, please submit applications in 
such a form that they can be taken apart. Loose leaf binders are 
preferable.
    2. The application submitted on behalf of a nominated urban area 
shall include:
    a. Nomination Form Parts I through IV, with the required 
certifications and written assurances, including assurances that the 
nominating governments will administer the Empowerment Zone program in 
a manner which affirmatively furthers fair housing on the bases of 
race, color, national origin, religion, sex, disability, and familial 
status (presence of children);
    b. A strategic plan which meets the requirements of the 24 CFR part 
598, especially the content specified in Sec. 598.215 of the rule; and
    c. 1990 census maps showing:
    (i) The boundaries of the local government(s); and
    (ii) The boundaries of the nominated area, including developable 
sites, if any.
    3. Preferably, the Strategic Plan will contain no more than 75 
pages excluding attachments.
    4. The application should contain only the necessary documentation. 
Appendices or additional information extraneous to evaluation 
components will not be reviewed. Examples of such extraneous 
information include: Meeting sign-in sheets, and copies of applications 
for other programs or funds.

C. Strategic Plan Requirements

    The Strategic Plan shall conform to the requirements set forth in 
24 CFR 598.215, and the criteria stated in this Notice. Requirements 
set forth in 24 CFR part 598 will be used in the evaluation process.

III. Designation Process

A. General

    HUD will accept for processing those nominations meeting the 
submission deadline stated in this Notice, and the Eligibility 
Requirements listed in Subpart B of 24 CFR part 598. Nominating 
procedures are described in Subpart C of 24 CFR part 598.

B. Exceptions

    The Secretary may waive a non-statutory provision of 24 CFR part 
598 for good cause where it is determined that the application of the 
provision would result in undue hardship to the applicant.

C. Application Review

    A threshold review will be conducted to ensure the application 
requirements in Section II.B. of this Notice are satisfied, and the 
applicant meets the eligibility requirements listed below. Applications 
determined eligible will receive a technical review under the rating 
factors described in Section IV of this Notice. Specific maximum point 
scores for each rating factor are listed in Section IV. Applications 
will be evaluated against the rating factors, then placed in rank 
order. Evaluation and ranking of applications will be made relative to 
other applications received.
    To review and rate applications, the Department may establish 
panels including employees of other Federal agencies to obtain certain 
expertise and outside points of view.
1. Eligibility Requirements
    a. To be considered for designation, a nominated urban area, with 
the exception of areas described below in the Special Rules, must meet 
all of the eligibility requirements of 24 CFR 598.100.
    The only sources of census data that will be used in determining 
the eligibility of an area are: The 1990 Decennial Census, and 
information published by the Bureau of Census and the Bureau of Labor 
Statistics. The boundary of an urban area nominated for designation as 
an Empowerment Zone must coincide with the boundaries of census tracts. 
Census tract means a census tract as the term is used by the Bureau of 
the Census, or, if and only if census tracts are not defined for the 
area, a block numbering area.
    b. A nominated urban area, with the exception of areas described 
below in the Special Rules, must demonstrate poverty, unemployment and 
general distress, as described in 24 CFR 598.110. In addition, each 
nominated area must satisfy the specific poverty rate criteria in 24 
CFR 598.115.
    c. Special Rules.  (i) A nominated area in Alaska or Hawaii is 
deemed to satisfy the criteria of distress, size, and poverty rate 
detailed in 24 CFR 598.100(b), (c), (d), and (f), and Sec. 598.110 if, 
for each census tract or block numbering area within the nominated 
area, 20 percent or more of the families have income that is 50 percent 
or less of the statewide median family income (as determined under 
section 143 of the Internal Revenue Code).
    (ii) An area within an Indian reservation (as defined in section 
168(j)(6) of the Internal Revenue Code) may be included in an area 
nominated as an Empowerment Zone by State and local governments. An 
area completely within an Indian reservation may be nominated by the 
reservation governing body, and in that case, the area is treated as if 
it also were nominated by a State and a local government. Where two or 
more governing bodies have joint jurisdiction over an Indian 
reservation, the nomination of a reservation area must be a joint 
nomination.
    (iii) Any urban area nominated by an Economic Development 
Corporation chartered by the State in which it is located or by the 
District of Columbia shall be treated as nominated by a State and a 
local government.
2. Technical Review
    a. General. The technical review will evaluate the quality of the 
application against the following rating factors:
    (i) Quality of the Strategic Plan; and
    (ii) Quality of the Commitments made in connection with the 
Strategic Plan.
    The criteria against which HUD will measure these factors, and the 
maximum points that will be awarded for each factor are described below 
in Section IV. An application may receive up to 100 total points.

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    b. Corrections to Deficient Applications. HUD will notify an 
applicant in writing, or by FAX, of any technical deficiencies in the 
application, and HUD will maintain a log of such communications.
    The notification will specify the date by which HUD must receive 
the applicant's correction of all technical deficiencies, which shall 
be within 14 calendar days from the date of HUD's notification. If the 
fourteenth day falls on a Saturday, Sunday, or holiday, the correction 
must be received by HUD on the next business day. The date and time of 
receipt of corrections by HUD shall be determined in the same way as 
the receipt of the application.
    Technical deficiencies relate to items that:
    (i) Are not necessary for HUD review under the rating factors; and
    (ii) Would not improve the substantive quality of the proposal. 
Examples of technical deficiencies would be a failure to submit proper 
certifications or failure to submit an application containing an 
original signature by an authorized official.
    If any of the items identified in HUD's written notification of 
technical deficiencies are not corrected and submitted within the 
correction period, the application will be ineligible for further 
consideration.
    c. Clarification of Application and Request for Additional 
Information. The Department may contact an applicant to obtain 
clarification of information submitted in an application. Clarification 
may include, for example, a request for an applicant to submit 
additional information to ensure HUD's understanding of the terms of a 
submitted application. In obtaining clarifying information, the 
Department may contact an applicant by telephone or in person. The 
Department will conduct all requests for clarification from an 
applicant according to uniform procedures and will document all 
requests.
    In addition, the Department reserves the right to conduct 
independent site inspections of proposed EZ/EC sites to accurately rate 
and rank an applicant's application under the selection criteria 
provided in this Notice. Should HUD decide to conduct site visits, it 
will visit sites according to uniform procedures. The Department will 
document site visit findings.
    HUD employees involved in the review of applications and the making 
of designation decisions will refrain from providing advance 
information to any person (other than an authorized employee of HUD) 
concerning designation decisions, or from otherwise giving any 
applicant an unfair competitive advantage.

D. Designation Announcements

    Designations will be made before January 1, 2002. The nominated 
urban areas designated as Empowerment Zones will be published in the 
Federal Register.

IV. Designation Rating Factors

    In choosing among nominated areas eligible for designation, HUD 
will consider the following factors:
     Quality of the Strategic Plan; and
     Quality of Commitments made in connection with the 
Strategic Plan.
    The following chart identifies the points that will be assigned to 
each rating factor. The criteria HUD will use to rate the applications 
on the factors follow the chart.

                             Rating Factors
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                                                                 Points
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                        Strategic plan
Vision/Values.................................................         5
Community Assessment..........................................         5
Goals/Strategies..............................................        10
                      Implementation Plan
Projects & Programs...........................................        10
Tax Incentive Utilization Plan................................        30
                 Developable Sites (optional)
Governance Plan...............................................         5
Community Performance Assessment..............................         5
Strategic Planning Process....................................         5
                                                               ---------
  Total.......................................................        75
                    Quality of Commitments
                                                               ---------
Resources leveraged and documented............................        25
                                                               =========
  Total.......................................................       100
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A. Quality of the Strategic Plan (Maximum Points: 75)

    The strategic plan must be developed in accordance with four key 
principles, described in 24 CFR 598.215: Strategic vision for change, 
community-based partnerships, economic opportunity, and sustainable 
community development. The elements required in the strategic plan 
reflect the key principles. Innovation and creativity are encouraged in 
fulfilling all elements of the plan.
1. Vision and Values (Maximum Points: 5)
    This process should articulate a vision for the future and include 
a graphic representation for the future physical appearances, land use 
patterns, and qualities of the community. To improve the quality of the 
visioning process, the community should reach out to local citizens and 
encourage participation in the visioning process. Explain how the 
vision creates economic opportunity, encourages self-sufficiency, and 
promotes sustainable community development. HUD will consider the 
extent to which this element:
    a. States a clear vision for the future;
    b. Develops the foundation upon which the goals are established and 
specific projects and programs are based;
    c. Demonstrates collaboration of the community's diverse 
stakeholders in arriving at its vision and values statement;
    d. Provides an effective vision for the community's long-term 
transformation; and
    e. Exhibits innovation and creativity.
2. Community Assessment (Maximum Points: 5)
    a. Assessment of problems and opportunities: In order to be 
considered for Empowerment Zone status the nominated area must be one 
of pervasive poverty, unemployment and general distress as prescribed 
by 24 CFR 598.110. The general rule is that 90% of the area's census 
tracts must have a poverty rate of at least 25%. In addition to meeting 
the minimum criteria for designation, a full account of community and 
regional assets and problems should be made. Baseline data should be 
collected to which outcomes can be compared and success measured. One 
important area to document is the state of local infrastructure. This 
includes housing, roads, transportation, water, sewer, solid waste, 
sidewalks, street lights, drainage, open space, and bandwidth. The 
state of local services is also crucial such as schools, police, fire, 
child care, health care, and other social services. The state of human 
and economic development should be documented, and barriers noted.
    b. Resource analysis: An assessment of the resources available to 
the community should be made, including potential resources outside the 
nominated area, to address identified problems and needs and maximize 
opportunities that exist within the community. Such resources may 
include financial, technical, human, cultural, educational, leadership, 
volunteerism, communications, transportation and commerce centers, rail 
and mass transit linkages, redevelopable land, public space, 
infrastructure, and other community and regional assets that form the 
basis for the formulation and implementation of the strategic plan. 
(2000 acres of

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developable sites outside the zone can be included.)
3. Goals (Maximum Points: 10)
    This element describes the comprehensive set of goals to be 
achieved over the program period, along with the strategies that will 
be used. In evaluating this element, HUD will consider the extent to 
which:
    a. The goals serve as the framework for specific strategies;
    b. The strategies proposed to achieve the strategic plan goals have 
been effectively described, and demonstrate the link between the goals 
and proposed projects and programs; and
    c. The goals are designed to move the community toward its desired 
future.
    d. Strategies: Applicants will be asked to describe how the local 
plan will be coordinated with regional planning and regional growth 
management. The plan should include a strategy for re-development with 
minimal displacement of local residents, and if displacement occurs, 
how it will be mitigated. Strategies should include how land use and 
urban design will utilize transportation hubs, incorporate mixed and 
flexible land use, promote the development of economically mixed and 
geographically dispersed affordable housing, encourage community land 
trusts, and promote urban green parks. A strategy is recommended for 
remodeling and rehabilitation of existing buildings, including 
modifying existing building, fire, historical preservation, and zoning 
code requirements if necessary. The plan should explain a process for 
evaluating the fiscal impact of every project, including a measurement 
of costs and impacts, compared to revenues and benefits to the 
community.
4. Implementation Plan (Maximum Points: 55)
    This element contains a detailed plan of how the community will 
implement its strategic plan. The components of the Implementation Plan 
are: Projects and Programs, Tax Incentive Utilization Plan, a 
Governance Plan, Community Performance Assessment, and the Strategic 
Planning Process. These components must provide detailed information 
for the first 2 years of designation.
    a. Projects and Programs (maximum points: 10). Due to the lack of 
grant funding in Round III, this category receives less weight than in 
Round II, since project will result largely from marketing of tax 
incentives, and leveraged commitments. Zones should detail how they 
will leverage local and State funds for specific projects. This element 
describes the specific projects and programs to be implemented during 
the first two years of the designation. Timelines and budgets must be 
provided for the 2-year plan. HUD will evaluate this component 
considering the extent to which:
    (i) The narrative clearly outlines the specific projects and 
programs that will be implemented, including use of any developable 
sites, and demonstrates that the projects and programs will result in 
the achievement of the community's goals;
    (ii) Proposed timelines for implementing identified projects and 
programs are appropriate for the 2-year plan;
    (iii) The lead implementing entities are identified;
    (iv) Innovative partnerships that ensure maximum community 
participation and project sustainability are identified;
    (v) Proposed budgets are identified for each project or program, 
and costs and sources of funding are realistic;
    (vi) Baselines and proposed measurable outputs and outcomes are 
provided; and
    (vii) The component exhibits innovation and creativity.
    b. Tax Incentive Utilization Plan (maximum points: 30). This 
element addresses a significant aspect of the EZ initiative--the use of 
the business tax incentives available to designated Empowerment Zones 
to support economic revitalization. EZs need to provide a strong 
marketing and technical assistance plan to encourage businesses to take 
advantage of these benefits. If the applicant includes developable 
sites, this element must include a statement of how developable sites 
will maximize the use of tax incentives. In evaluating this element, 
HUD will consider the extent to which the plan:
    (i) Provides an effective strategy for integrating the new business 
tax incentives into the nominated area's business development efforts. 
The Round III business tax incentives include: Tax-Exempt Bond 
Financing, Empowerment Zone Employment Tax Credit, Increased Section 
179 Deduction, Welfare-to-Work Credit, Environmental Cleanup Cost 
Deduction (i.e. ``Brownfields Tax Incentive''), and the Work 
Opportunity Tax Credit. For a description of the tax incentives see the 
Round III publication, ``Tax Incentive Guide for Businesses in Renewal 
Communities, Empowerment Zones and Enterprise Communities.''
    (ii) Addresses the involvement of all appropriate segments of the 
community and the extent to which their participation will maximize the 
use of the business tax incentives;
    (iii) Provides a realistic strategy for marketing the incentives; 
and
    (iv) Exhibits innovation and creativity.
    c. Governance Plan (Maximum Points: 5). This element describes how 
the strategic plan will be implemented. A leadership development 
program should be included here, as leadership is extremely important 
to the success of EZs. Other capacity building plans could be included 
here as well. A plan for mediation of disputes should also be included. 
HUD will evaluate the extent to which:
    (i) The proposed lead implementing entity, has or will have, the 
legal status and authority to receive and administer Federal funds;
    (ii) The Governance Plan demonstrates that both the lead 
implementing entity and other key organizations participating in the 
implementation of the strategic plan have the capacity to implement the 
plan;
    (iii) The proposed composition of governance boards, advisory 
boards, commissions or similar bodies that will manage strategic plan 
implementation is representative of the EZ area. The representation of 
residents and businesses, and the method of selecting members of such 
boards should provide a clear picture of the use of partnerships;
    (iv) The relationships between the governance structure created and 
local governments, and other major community or regional organizations, 
such as a metropolitan planning organization, will strengthen the 
implementation of the strategic plan;
    (v) The Governance Plan includes methods by which stakeholders 
within the Zone will be kept informed about Zone activities and 
progress in implementing the strategic plan, including an explanation 
of how the Governance Board will conduct its meetings in accordance 
with applicable open meetings acts. The community should utilize modern 
communication techniques and incorporate the Internet in order to 
enhance the communication and access to information among all 
stakeholders and participants;
    (vi) The Governance Plan will ensure continuing community and 
grassroots participation in the implementation of the strategic plan 
and the governance of the Zone's activities; and
    (vii) The plan exhibits innovation and creativity.
    d. Community Performance Assessment (maximum points: 5) This 
element examines the methods the

[[Page 37882]]

community will use to assess its own performance in implementing the 
strategic plan, and the process it will use to continually review the 
plan and amend it as appropriate. This information is crucial to the 
continuing development of the EZ initiative, by learning from what 
works. It is crucial to measure outcomes as well as outputs. Comparing 
outcomes to baselines and benchmarks developed in the community 
assessment will provide a more objective measure of success. In 
evaluating community performance assessment, HUD will consider:
    (i) The process the applicant will use to periodically evaluate its 
performance;
    (ii) The process the applicant will use to modify its strategic 
plan based on the results obtained in (i);
    (iii) The participation of stakeholders in (i) and (ii) above.
5. Strategic Planning Process Documentation (Maximum Points: 5).
    This element provides a description of the process the community 
used to select the boundaries of the proposed Empowerment Zone, 
including any developable sites, and the process used to prepare the 
strategic plan. In evaluating this element, HUD will consider the 
extent to which the documentation:
    a. Fully explains how the community participated in choosing the 
area, including any developable sites; and how the area ultimately 
nominated was selected over other areas considered;
    b. Indicates the specific groups, organizations, and individuals 
that participated in the production of the plan, describes the history 
of these groups in the community, and describes their role in creating 
the plan;
    c. Explains how participants were selected and provides evidence 
that the participants, taken as a whole, broadly represent the racial, 
cultural, gender and economic diversity of the community; and
    d. Identifies two or three topics addressed in the plan that caused 
the most serious disagreements among participants, and a description of 
how those disagreements were resolved.

B. Quality of Commitments Made in Connection With the Strategic Plan 
(Maximum Points: 25)

    In 24 CFR 598.210, nominated areas are required to provide written 
assurances that the Strategic Plan will be implemented. In addition to 
the certification, it is essential that HUD is able to evaluate the 
breadth and quality of such commitments.
1. Resources Leveraged (Maximum Points: 10)
    In evaluating this element, HUD will consider the extent to which 
the applicant has leveraged resources, such as funding and/or in-kind 
services from governmental entities, business, faith-based 
organizations, non-profit organizations, foundations, educational 
institutions, and other entities to implement the strategic plan.
2. Resource Commitments Documented (Maximum Points: 15).
    The applicant must provide evidence of public and private sector 
commitments by including letters of commitment, memoranda of 
understanding or agreement, or other documentation indicating the 
nature of the participation and the financial and non-financial 
resources to be contributed. The letters or agreements must be signed 
by an official of the organization able to make such commitments.
    3. Besides the leveraging of finances, EZs need to leverage many 
different types of commitments including tax and regulatory relief from 
other levels of government. This could include waivers or reductions in 
development fees including permit, license, inspection, impact, and 
utility connection fees. It could also include state and local 
abatements of taxes on wages, income, sales, personal property, and 
building improvements. Additional tax and regulatory incentives can be 
added to the marketing plan for the Tax Incentive Utilization Plan. 
This section should cover the resources that will be committed to 
perform cost-benefit studies, and to ensure coordination with regional 
growth management.

V. Period of Designation

    The designation period will commence on the date of designation and 
will continue until December 31, 2009, except:
    1. When the nominating entities have specified an earlier date; or
    2. When the designation is revoked by the Secretary.

VI. Findings and Certifications

A. Information Collection Requirements

    The information collection requirements contained in this Notice 
have been approved by the Office of Management and Budget and assigned 
control number 2506-0148. In accordance with the Paperwork Reduction 
Act, HUD may not conduct or sponsor, and a person is not required to 
respond to, a collection of information unless the collection displays 
a currently valid OMB control number.

B. Catalog

    The Catalog of Federal Domestic Assistance Program number assigned 
to this program is 14.244.

C. Environmental Impact

    This Notice provides for EZ designations under, and does not alter 
the environmental requirements of, 24 CFR part 598. Accordingly, under 
24 CFR 50.19(c)(5), this Notice is categorically excluded from 
environmental review under the National Environmental Policy Act of 
1969 (42 U.S.C. 4321). The environmental review provisions of part 598 
are set out in Sec. 598.405.

D. Documentation and Public Access Policy

    HUD will ensure that documentation and other information regarding 
each application submitted pursuant to this Notice are sufficient to 
indicate the basis upon which assistance was provided or denied. This 
material, including any letters of support, will be made available for 
public inspection for a 5-year period beginning not less than 30 days 
after the award of the assistance. Material will be made available in 
accordance with the Freedom of Information Act (5 U.S.C. 552) and HUD's 
implementing regulations in 24 CFR part 15.

    Dated: July 12, 2001.
Donna M. Abbenante,
Acting General Deputy Assistant Secretary for Community Planning and 
Development.
[FR Doc. 01-18074 Filed 7-18-01; 8:45 am]
BILLING CODE 4210-29-P