88 STAT. ]
PUBLIC LAW 93-383-AUG. 22, 1974
639
ity of the applicant for the development of the application and the execution of its Community Development Program. (b)(1) Not more than 10 per centum of the estimated costs referred to m subsection (a)(2) which are to be incurred during any contract period may be designated for unspecified local option activities which are eligible for assistance under section 105(a) or for a contingency account for activities designated by the applicant pursuant to subsection (a)(2). (2) Any grant under this title shall be made only on condition that the applicant certify to the satisfaction of the Secretary that its Community Development Program has been developed so as to give maximum feasible priority to activities which will benefit low- or moderate-income families or aid in the prevention or elimination of slums or blight. The Secretary may also approve an application describing activities which the applicant certifies and the Secretary determines are designed to meet other community development needs having a particular urgency as specifically described in the application. (3) The Secretary may waive all or part of the requirements con- waiver. tained in paragraphs (1), (2), and (3) of subsection (a) if (A) the application for assistance is in behalf of a locality having a population of less than 25,000 according to the most recent data compiled by the Bureau of the Census which is located either (i) outside a standard metropolitan statistical area, or (ii) inside such an area but outside an "urbanized area"' as defined by the Bureau of the Census (or as such urbanized area. definition is modified by the Secretary for purposes of this title), (B) the application relates to the first community development activity to be carried out by such locality with assistance under this title, (C) the assistance requested is for a single development activity under this title of a type eligible for assistance under title VII of the Housing Act of 1961 or title VII of the Housing and Urban Development Act ^^ "^^ ^^°°of 1965, and (D) the Secretary determines that, having regard to the 42 USC sioi. nature of the activity to be carried out, such waiver is not inconsistent with the purposes of this title. (4) The Secretary may accept a certification from the applicant that it has complied with the requirements of paragraphs (5) and (6) of subsection (a). (c) The Secretary shall approve an application for an amount which does not exceed the amount determined in accordance with section 108(a) unless— (1) on the basis of significant facts and data, generally available and pertaining to community and housing needs and objectives, the Secretary determines that the applicant's description of such needs and objectives is plainly inconsistent with such facts or data; or (2) on the basis of the application, the Secretary determines that the activities to be undertaken are plainly inappropriate to meeting the needs and objectives identified by the applicant pursuant to subsection (a); or (3) the Secretary determines that the application does not comply with the requirements of this title or other applicable law or proposes activities which are ineligible under this title. (d) Prior to the beginning of fiscal year 1977 and each fiscal year rejor'/'submluai thereafter, each grantee shall submit to the Secretary a performance to secretary. report concerning the activities carried out pursuant to this title, together with an assessment by the grantee of the relationship of those activities to the objectives of this title and the needs and objectives identified in the grantee's statement submitted pursuant to subsection Audits (a). The Secretary shall,, at least on an annual basis,J make_ such reviews and ^ ^ _ __ _ n reviews and audits as may be necessary or appropriate to determine
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