[Title 24 CFR XXV]
[Code of Federal Regulations (annual edition) - May 1, 2001 Edition]
[Title 24 - HOUSING AND URBAN DEVELOPMENT]
[Chapter Xxv - NEIGHBORHOOD REINVESTMENT CORPORATION]
[From the U.S. Government Printing Office]


24HOUSING AND URBAN DEVELOPMENT52001-05-012001-05-01falseNEIGHBORHOOD REINVESTMENT CORPORATIONXXVCHAPTER XXVHOUSING AND URBAN DEVELOPMENT
           CHAPTER XXV--NEIGHBORHOOD REINVESTMENT CORPORATION




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Part                                                                Page
4100            Organization and channeling of functions....         311

[[Page 311]]



PART 4100--ORGANIZATION AND CHANNELING OF FUNCTIONS--Table of Contents




Sec.
4100.1  Functions and activities.
4100.2  General organization.
4100.3  Field activities.
4100.4  Inquiries.

    Authority: Title VI, Pub. L. 95-557, 92 Stat. 2115 (42 U.S.C. 8101 
et seq.); as amended by sec. 315, Pub. L. 96-399, 94 Stat. 1645; sec. 
710, Pub. L. 97-320, 96 Stat. 1544; and sec. 520, Pub. L. 100-242, 101 
Stat. 1815.

    Source: 49 FR 12700, Mar. 30, 1984, unless otherwised noted.



Sec. 4100.1  Functions and activities.

    (a) General statement. The Neighborhood Reinvestment Corporation 
(referred to in this part as the Corporation) was established by 
Congress in the Neighborhood Reinvestment Corporation Act (title VI of 
the Housing and Community Development Amendments of 1978, Pub. L. 95-
557, October 31, 1978). The Corporation is not a department, agency, or 
instrumentality of the Federal Government.
    (b) The Corporation is authorized to receive and expend Federal 
appropriations and other public and private revenues to conduct a 
variety of programs designed primarily to revitalize older urban 
neighborhoods by mobilizing public, private, and community resources at 
the neighborhood level. These programs include:
    (1) Neighborhood Housing Services. The major effort of the 
Corporation is to assist local communities in the development, expansion 
and provision of technical services to local Neighborhood Housing 
Services (NHS) programs. NHS programs are based upon partnerships of 
community residents, and representatives of local governments and 
financial institutions. Each local program is administered by an 
autonomous, private, non-profit corporation, and conducts a 
comprehensive revitalization effort in locally selected neighborhoods. 
Services to neighborhood residents include rehabilitation counseling, 
construction assistance, financial counseling, loan referrals and loans 
at flexible rates and terms to homeowners who do not meet private 
lending criteria. Programs and strategies to remove blighting 
influences, obtain improved public services and amenities, and improve 
the neighborhood's image and the functioning of its real estate market 
are also undertaken. To insure the continuing effectiveness of NHS 
programs, the Corporation provides grants, training, information and 
technical services to NHS programs.'
    (2) Mutual Housing Associations. The Corporation also supports the 
organizational development of, and provides technical assistance to, 
Mutual Housing Associations. Mutual Housing Associations are private, 
nonprofit organizations which own, manage and continually develop 
affordable housing. Mutual Housing residents are members of the 
Association which owns and manages their buildings; thus they enjoy the 
security of long-term housing tenure. Mutual Housing developments are 
capitalized through up-front grants and mortgages in a combination that 
ensures permanent affordability to low- and moderate-income families. 
Monthly housing charges to residents are kept at affordable levels on a 
continuing basis. A key element of Mutual Housing is the Association's 
commitment to use all resources in excess of operating and maintenance 
costs for the production of additional units. A Mutual Housing 
Association's board of directors includes current member-residents, 
potential residents, and representatives from the community, local 
government and business. Residents and community members make up the 
majority on the board. A highly qualified professional staff, employed 
by the Mutual Housing Association, carries out the day-to-day activities 
of the organization. In addition to creating new affordable housing 
opportunities, Mutual Housing Associations offer a creative alternative 
for subsidized rental housing developments whose subsidies are scheduled 
to expire.
    (3) Neighborhood preservation projects. The Corporation identifies, 
monitors, evaluates and supports through demonstration grants and 
technical assistance other promising neighborhood preservation 
strategies based on local, public-private partnerships.

[[Page 312]]

    (4) Programmatic supplements. Proven, replicable programmatic tools 
are offered as broadly as resources permit. Often, these selected 
strategies are supported by Neighborhood Reinvestment grants. The 
Corporation's major programmatic supplements include the following:
    (i) Neighborhood economic development and commercial revitalization 
strategies. The Corporation's neighborhood economic development and 
commercial revitalization strategies offer NHSs a variety of tools 
designed to stabilize and enhance the economic base of NHS 
neighborhoods. They complement NHSs' revitalization mission by focusing 
the energies and resources of the partnership on the economic issues 
underlying neighborhood decline. Neighborhood economic development and 
commercial revitalization assures a viable neighborhood economy by 
strengthening small businesses and improving the physical environment of 
the area, thus providing additional goods, services, and employment 
opportunities for the community.
    (ii) Housing Development Strategies. The Corporation's Housing 
Development Strategies program addresses the shortage of affordable, 
quality housing available to low to moderate income families in NHS 
neighborhoods, as well as the blighting effect of vacant lots and 
substandard properties. Home ownership opportunities are created through 
the planning and implementation of a variety of housing mechanisms by 
the NHS, which are intended to reverse negative real estate market 
trends, enhance new residential growth, and create renewed neighborhood 
pride. The mechanisms being used to achieve these goals include the 
following.
    (A) The Owner Built Housing program is a supervised housing 
construction process that helps moderate-income homeowners to 
collectively build their own homes. The NHS provides technical 
assistance while private lenders and public bodies providing financing.
    (B) The Owner Rehab Housing program assists low to moderate income 
families in collectively rehabilitating existing blighted and vacant 
structures.
    (C) The Infill Housing program provides a mechanism for assisting 
NHSs in building new units on vacant land to meet the needs of 
prospective lower income homeowners.
    (D) The Urban Subdivisions program focuses on providing low cost, 
new housing for low-to-moderate income families on tracts of land 
suitable for the construction of 20 or more units.
    (iii) Problem properties strategies. This program assists NHSs in 
addressing specific problem areas beyond the scope of basic NHS services 
and typical financial resources. Through the implementation of various 
problem properties strategies, NHS programs are able to assist tenants 
to purchase, improve the physical condition of target blocks, eliminate 
vacant neighborhood eyesores, develop housing and service facilities for 
special populations, and stimulate private reinvestment and new 
conventional mortgages in the NHS community.
    (5) Apartment Improvement Program. The goal of the Apartment 
Improvement Program is to provide an effective, economical means of 
revitalizing and preserving neighborhoods with multi-family housing for 
the benefit of the current residents. The program is based upon a 
partnership of tenants and community representatives, property owners 
and managers, financial institutions and local government. The program 
assists in the development of an individually tailored improvement plan 
of activities from which each building may benefit, including tenant 
participation, tax assessment reviews, and increased investment or 
restructured mortgages to improve the economic viability of the 
buildings and to finance improvements.
    (6) Neighborhood Housing Services of America. The Corporation also 
supports Neighborhood Housing Services of America (NHSA), an 
independent, private, non-profit corporation which provides a variety of 
services to local NHS programs, including a secondary market for NHS 
revolving loan fund loans, and the strengthening of private sector 
resources available to the network of local NHSs.

[49 FR 12700, Mar. 30, 1984, as amended at 54 FR 13061, Mar. 30, 1989]

[[Page 313]]



Sec. 4100.2  General organization.

    (a) The Board of Directors. (1) The Corporation is under the 
direction of a Board of Directors composed of six members: the Chairman 
of the Federal Home Loan Bank Board or a member of the Federal Home Loan 
Bank Board designated by the Chairman; the Secretary of Housing and 
Urban Development; the Chairman of the Board of Governors of the Federal 
Reserve System, or a member of the Board of Governors of the Federal 
Reserve System designated by the Chairman; the Chairman of the Federal 
Deposit Insurance Corporation or the appointive member of the Board of 
Directors of the Federal Deposit Insurance Corporation if so designated 
by the Chairman; the Comptroller of the Currency; and the Chairman of 
the National Credit Union Administration, or a member of the Board of 
the National Credit Union Administration designated by the Chairman. 
Members of the Board serve without additional compensation. The Board 
elects from among its members a Chairman and Vice-Chairman. The Bylaws 
of the Corporation provide for the creation of an Audit Committee, and 
such other committees as the Board may from time to time establish.
    (2) The Board holds an Annual Meeting each year during the month of 
May (or as the Bylaws or the Board may specify). The Board also holds 
regular meetings at least quarterly and special meetings as required. 
The meetings of the Board are conducted in accordance with provisions of 
the Neighborhood Reinvestment Corporation Act, the Government in the 
Sunshine Act (5 U.S.C. 552b), the Corporation's Bylaws, and when not 
inconsistent with the foregoing, with Robert's Rules of Order. Every 
portion of every meeting of the Board is open to public observation 
except as provided by the Government in the Sunshine Act. Interested 
members of the public may attend such meetings, but may not participate 
therein unless invited or permitted to do so by the Board.
    (3) The Secretary of the Corporation, in consultation with the 
Corporation's General Counsel, is responsible for taking such steps as 
are required to ensure the Corporation's compliance with the Government 
in the Sunshine Act, as that Act may be amended from time to time. 
Consistent with this responsibility, the Secretary of the Corporation 
provides to the Communications Department at the principal office of the 
Corporation such records as the Act requires to be made available to the 
public for access during regular office hours on regular business days.
    (b) The Officers. (1) The officers of the Corporation are the 
Executive Director, the Deputy Executive Director, the Secretary, the 
Treasurer, and such other officer positions as the Board may, in 
consultation with the Executive Director, create. The Board elects the 
officers of the Corporation annually.
    (2) The Neighborhood Reinvestment Corporation Act provides that the 
Executive Director shall serve as the chief executive officer of the 
Corporation. Consistent with that authority, the Corporation's Bylaws 
provide that the Executive Director shall have the responsibility and 
authority for the day-to-day administration of the affairs of the 
Corporation under the general supervision of the Board. The Board 
periodically reviews the activities of the Executive Director and, from 
time to time, provides guidance and policy direction to the Executive 
Director in the exercise of his or her authority.
    (3) The responsibilities and authorities of the other officers of 
the Corporation are set forth in the Corporation's Bylaws, resolutions 
and policies adopted by the Board, duties and authorities delegated to 
each officer, other statutes and this statement. (See, for example, the 
Government in the Sunshine Act and paragraph (a)(3) of this section for 
specific duties of the Secretary and General Counsel.)
    (c) Principal office. The Corporation maintains its principal office 
in the District of Columbia. Currently, the principal office is 
maintained at 1325 G Street NW., Suite 800, Washington, DC 20005.

[49 FR 12700, Mar. 30, 1984, as amended at 54 FR 13062, Mar. 30, 1989]



Sec. 4100.3  Field activities.

    The Corporation conducts its field activities from district and 
field offices around the country. District offices

[[Page 314]]

provide coordination of field activities in support of local programs 
within the geographic limits of each district. Field offices within each 
district provide assistance in the development and support of local 
programs. A current directory of all district and field offices can be 
obtained upon request from the Communications Department, Neighborhood 
Reinvestment Corporation, 1325 G Street NW., Suite 800, Washington, DC 
20005.

[49 FR 12700, Mar. 30, 1984, as amended at 54 FR 13061, Mar. 30, 1989]



Sec. 4100.4  Inquiries.

    (a) General. All requests for information, forms, and records should 
be addressed to: Communications Department, Neighborhood Reinvestment 
Corporation, 1325 G Street NW., Suite 800, Washington, DC 20005.
    (b) Applications. Applications for the Corporation's assistance in 
the development of NHS programs and complementary programs and 
strategies, or the support of other promising neighborhood strategies 
are accepted on an ongoing basis. Local governmental or nonprofit 
entities should submit completed applications (forms are available upon 
request), including supportive materials, to the Corporation at the 
address stated in paragraph (a) of this section. The Corporation reviews 
applications to determine their readiness for development or support. 
Promising applications are selected for field reviews. Subject to the 
availability of the Corporation's resources, the Corporation may enter 
into agreements with top ranking applicants to provide financial and 
technical assistance in the development or support of selected programs. 
The application form contains a list of the criteria used for 
determining the readiness and promise of applications.
    (c) Records. (1) The Corporation maintains such records and 
information for public inspection and copying as are required by the 
Freedom of Information Act (5 U.S.C. 552), as that Act may be amended 
from time to time. Records are available for public inspection and 
copying during regular business hours on regular business days at the 
address stated in paragraph (a) of this section. Requests for records 
should be submitted in writing and state the full name and address of 
the person requesting the records and a description of the records or 
other information sought that is reasonably sufficient to permit their 
identification without undue difficulty. A request should be submitted 
sufficiently in advance of the date inspection or copying is desired, 
preferably by mail.
    (2) Although the Corporation finds that the publication of indexes 
of statements of policy and interpretations or administrative staff 
manuals and instructions would be unnecessary and impracticable, such 
information will be made available upon request.
    (d) Fees for providing copies for records. Fees shall be assessed 
pursuant to the Freedom of Information Act (5 U.S.C. 552) in order to 
recover the full allowable direct costs of providing copies of records. 
For purposes of this section, the term direct costs means those 
expenditures which the Corporation actually incurs in searching for and 
duplicating (and in the case of commercial use requesters, reviewing) 
documents to respond to a Freedom of Information Act (``FOIA'') request. 
Direct costs include, for example, the salaries of the employees 
performing the work (the basic rate of pay plus 16 percent of that rate 
to cover benefits) and the cost of operating duplicating equipment. The 
term search includes all time spent looking for material that is 
responsive to a request, including page-by-page or line-by-line 
identification of material within documents. Searches may be done 
manually or by computer using existing programming. The term duplication 
refers to the process of making a copy of a document necessary to 
respond to a FOIA request. Such copies can take the form of paper copy, 
microfilm, audiovisual materials, or machine readable documentation 
(e.g., magnetic tape or disk), among others. The term review refers to 
the process of examining documents located in response to a commercial 
use request to determine whether any portion of any document is 
permitted to be withheld. It also includes processing any documents for 
disclosure, e.g., doing all that is necessary to exise them and 
otherwise prepare them for release. Review does not include time spent 
resolving general

[[Page 315]]

legal or policy issues regarding the application of exemptions. A 
schedule based on these principles is set forth in paragraph (d)(9) of 
this section.
    (1) Categories of requesters. Fees will be assessed according to the 
category of the requester. There are four categories:
    (i) Commercial use requesters. For purposes of this section, the 
term commercial use request refers to a request from or on behalf of one 
who seeks information for a use or purpose that furthers the commercial, 
trade, or profit interests of the requester or the person on whose 
behalf the request is made. In determining whether a requester properly 
belongs in this category, the Corporation will look to the use to which 
the requester will put the documents requested. If the use is not clear 
from the request itself, or if there is reasonable cause to doubt the 
requester's stated use, the Corporation shall seek additional 
clarification before assigning the request to a specific category.
    (ii) Educational and noncommercial scientific institution 
requesters. For purposes of this section, the term educational 
institution refers to a preschool, a public or private elementary or 
secondary school, an institution of graduate higher education, an 
institution of undergraduate higher education, an institution of 
professional education, or an institution of vocational education, which 
operates a program or programs of scholarly research. The term 
noncommercial scientific institution refers to an institution that is 
not operated on a commercial basis, as that term is used in paragraph 
(d)(1)(i) of this section, and which is operated solely for the purpose 
of conducting scientific research the results of which are not intended 
to promote any particular product or industry. To be eligible for 
inclusion in this category, requesters must show that the request is 
made as authorized by and under the auspices of a qualifying 
institution, and that the records are not sought for a commercial use, 
but are sought in furtherance of scholarly (if the request is from an 
educational institution) or scientific (if the request is from a 
noncommercial scientific institution) research.
    (iii) Requesters who are representatives of the news media. For 
purposes of this section, the term representative of the news media 
refers to any person actively gathering information for an entity that 
is organized and operated to publish or broadcast news to the public. 
Examples of news media entities include television or radio stations 
broadcasting to the public at large, and publishers of periodicals (but 
only in those instances when they can qualify as disseminators of news) 
who make their products available for purchase or subscription by the 
general public. These examples are not intended to be all-inclusive. In 
the case of freelance journalists, they may be regarded as working for a 
news organization if they demonstrate a solid basis for expecting 
publication through that organization, even though not actually employed 
by it. A publication contract would be the clearest proof, but the 
Corporation may also look at the past publication record of a requester 
in making this determination. To be eligible for inclusion in this 
category, a requester must meet the criteria above, and his or her 
request must not be made for a commerical use. In reference to this 
class of requester, a request for records supporting the news 
dissemination function of the requester shall not be considered to be a 
request that is for a commercial use.
    (iv) All other requesters.
    (2) Limitations on fees to be charged--(i) Commercial use 
requesters. Commercial use requesters shall be assessed the full direct 
costs for searching for, reviewing, and duplicating records, in 
accordance with the fee schedule at paragraph (d)(9) of this section. 
Commercial use requesters are not entitled to the free search time or 
free pages of duplication provided to other categories of requesters.
    (ii) Educational and noncommercial scientific institution 
requesters. Requesters in this category may be assessed fees only for 
duplication of records in excess of the first 100 pages. Requesters in 
this category may not be assessed fees for search or review.
    (iii) Requesters who are representatives of the news media. 
Requesters in this category may be assessed fees only for duplication of 
records in excess of the

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first 100 pages. Requesters in this category may not be assessed fees 
for research or review.
    (iv) All other requesters. Requesters who do not fit into any of the 
categories above shall be assessed fees only for searching and 
duplicating records, except that the first 100 pages of duplication and 
the first two hours of search time shall be furnished without charge. 
Requesters in this category may not be assessed fees for review.
    (v) Review of records. Charges will be assessed only for the initial 
review of the located documents and not for time spent at the 
administrative appeal level on an exemption applied at the initial 
determination level. However, where records or portions of records are 
withheld in full under an exemption which is subsequently determined not 
to apply, and these records are reviewed again to determine the 
applicability of other exemptions not previously considered, charges for 
review are properly assessable.
    (vi) Additional copies. The Corporation will normally furnish only 
one copy of any record. The allowance of 100 free pages of duplication 
under paragraphs (d)(2) (ii), (iii), and (iv) of this section shall not 
apply to additional copies furnished at the request of the record 
requester. Full duplication fees shall be assessed for each page of each 
such additional copy.
    (3) Charges for unsuccessful search. Where applicable under 
paragraph (d)(2) of this section search fees may be assessed for time 
spent searching, even if the Corporation fails to locate the records or 
if records located are determined to be exempt from disclosure.
    (4) Notice of anticipated fees in excess of $25.00. Unless the 
person making the request states in his or her initial request that he 
or she will pay all costs regardless of amount, the Corporation will 
notify him or her as soon as possible if there is reason to believe that 
the cost for obtaining access to and/or copies of such records will 
exceed $25. If such notice is given, the time limitations contained in 
the Freedom of Information Act shall not commence until the person 
making the intitial request agrees in writing to pay such cost.
    (5) Advance payments. The Communications Director is authorized to 
require an advance payment of an amount up to the full estimated charges 
whenever he or she determines that:
    (i) The allowable charges that a requester may be required to pay 
are likely to exceed $250 and the requester has no history of payment 
and cannot provide satisfactory assurance that payment will be made; or
    (ii) A requester has previously failed to pay a fee charged in a 
timely manner.

If such a payment is required, the time limitations contained in the 
Freedom of Information Act shall not commence until payment is made.
    (6) Charging interest. The Corporation will assess interest charges 
on any unpaid fees starting on the 31st day following the day on which 
the billing for fees was sent to the requester. Interest will be at the 
rate prescribed in 31 U.S.C. 3717 and will accrue from the date of the 
billing. Receipt of the fee by the Corporation, even if not processed, 
will stay the accrual of interest. Interest is not chargeable for unpaid 
advance payments under paragraph (d)(5) of this section.
    (7) Aggregating requests. A requester may not file multiple requests 
at the same time, each seeking portions of the document or documents, 
solely in order to avoid payment of fees. When the Corporation 
reasonably believes that a requester, or a group of requesters acting in 
concert, is attempting to break a request down into a series of requests 
for the purpose of evading the assessment of fees, the Corporation may 
aggregate any such requests and charge accordingly.
    (8) Waiver or reduction of fee. The Corporation will furnish 
documents without charge or at a reduced charge when it is determined 
that disclosure of the information is in the public interest because it 
is likely to contribute significantly to public understanding of the 
operations or activities of the Corporation and is not primarily in the 
commercial interest of the requester. In making a request for a waiver 
or reduction of fees, a requester should include a clear statement of 
his or her interest in the requested documents: The

[[Page 317]]

proposed use for the documents and whether the requester will derive 
income or other benefit from such use; and a statement of how the public 
will benefit from such use. Determinations concerning waiver or 
reduction of fees shall be made by the Executive Director, or his or her 
designee.
    (9) Schedule of fees. Fees for searching for, reviewing, 
duplicating, and providing records and information of the Corporation 
under this section will be assessed in accordance with the following 
schedule:
    (i) Manual search. For each quarter hour or fraction thereof: $3.37.
    (ii) Computer search. For each quarter hour or fraction thereof: 
$3.37.
    (iii) Review. For each quarter hour or fraction thereof: $4.87.
    (iv) Duplication.
    (A) For a paper photocopy of an existing paper record, $.10 per 
page.
    (B) For duplication of records other than existing paper records 
(such as computer-stored information, audio or video tapes, microfiche 
or microfilm), the fee shall equal the actual direct cost of production 
and duplication of the records or information in a form that is 
reasonably usable by the requester.
    (10) Processing costs. The Communications Director will waive 
payment in instances in which the costs of routine collection and 
processing of the fee are likely to equal or exceed the amount of the 
fee.

[49 FR 12700, Mar. 30, 1984, as amended at 54 FR 50953, Dec. 19, 1989]