24 C.F.R. Subpart B—Area Requirements
Title 24 - Housing and Urban Development
A nominated urban area may be eligible for designation pursuant to this part only if the area: (a) Has a maximum population which is the lesser of: (1) 200,000; or (2) The greater of 50,000 or ten percent of the population of the most populous city located within the nominated area; (b) Is one of pervasive poverty, unemployment and general distress, as described in §597.102; (c) Does not exceed twenty square miles in total land area; (d) Has a continuous boundary, or consists of not more than three noncontiguous parcels; (e) Is located entirely within the jurisdiction of the unit or units of general local government making the nomination, and is located in no more than two contiguous States; and (f) Does not include any portion of a central business district, as this term is used in the most recent Census of Retail Trade, unless the poverty rate for each population census tract in the district is not less than 35 percent for an Empowerment Zone and 30 percent for an Enterprise Community. (a) Source of data. The data to be employed in determining eligibility pursuant to the criteria set forth at §597.102 shall be based upon the 1990 Decennial Census, and from information published by the Bureau of the Census and the Bureau of Labor Statistics. The data shall be comparable as to point or period of time and methodology employed. Specific information on appropriate data to be submitted will be provided in the application. (b) Use of statistics on boundaries. The boundary of an urban area nominated for designation as an Empowerment Zone or Enterprise Community must coincide with the boundaries of census tracts, or, where tracts are not defined, with block numbering areas. (a) Pervasive poverty. Pervasive poverty shall be demonstrated by the nominating entities by providing evidence that: (1) Poverty is widespread throughout the nominated area; or (2) Poverty has become entrenched or intractable over time (through comparison of 1980 and 1990 census data or other relevant evidence); or (3) That no portion of the nominated area contains any component areas of an affluent character. (b) Unemployment. Unemployment shall be demonstrated by: (1) Data indicating that the weighted average rate of unemployment for the nominated area is not less than the national average rate of unemployment; or (2) Evidence of especially severe economic conditions, such as military base or plant closings or other conditions which have brought about significant job dislocation within the nominated area. (c) General distress. General distress shall be evidenced by describing adverse conditions within the nominated urban area other than those of pervasive poverty and unemployment. A high incidence of crime, narcotics use, homelessness, abandoned housing, and deteriorated infrastructure or substantial population decline, are examples of appropriate indicators of general distress. (a) General. The poverty rate shall be established in accordance with the following criteria: (1) In each census tract within a nominated urban area, the poverty rate shall be not less than 20 percent; (2) For at least 90 percent of the population census tracts within the nominated urban area, the poverty rate shall not be less than 25 percent; and (3) For at least 50 percent of the population census tracts within the nominated urban area, the poverty rate shall be not less than 35 percent. (b) Special rules relating to the determination of poverty rate—(1) Census tracts with no population. Census tracts with no population shall be treated as having a poverty rate which meets the standards of paragraphs (a)(1) and (2) of this section, but shall be treated as having a zero poverty rate for purposes of applying paragraph (a)(3) of this section. (2) Census tracts with populations of less than 2,000. A population census tract which has a population of less than 2,000 shall be treated as having a poverty rate which meets the requirements of paragraphs (a)(1) and (a)(2) of this section if more than 75 percent of the tract is zoned for commercial or industrial use. (3) Adjustment of poverty rates for Enterprise Communities. Where necessary to carry out the purposes of this part, the Secretary may reduce by 5 percentage points one of the following thresholds for not more than 10 percent of the census tracts, or, if fewer, five population tracts in the nominated urban area: (i) The 20 percent threshold in paragraph (a)(1) of this section; (ii) The 25 percent threshold in paragraph (a)(2) of this section; and (iii) The 35 percent threshold in paragraph (a)(3) of this section; Provided that, the Secretary may in the alternative reduce the 35 percent threshold by 10 percentage points for three population census tracts. (4) Rounding up of percentages. In making the calculations required by this section, the Secretary shall round all fractional percentages of one-half percent or more up to the next highest whole percentage figure. (c) Noncontiguous areas. A nominated urban area may not contain a noncontiguous parcel unless such parcel separately meets the criteria set forth at paragraphs (a)(1), (2), and (3) of this section. (d) Areas not within census tracts. In the case of an area which does not have population census tracts, the block numbering area shall be used.
Title 24: Housing and Urban Development
PART 597—URBAN EMPOWERMENT ZONES AND ENTERPRISE COMMUNITIES: ROUND ONE DESIGNATIONS
Subpart B—Area Requirements
§ 597.100 Eligibility requirements and data usage.
§ 597.101 Data utilized for eligibility determinations.
§ 597.102 Tests of pervasive poverty, unemployment and general distress.
§ 597.103 Poverty rate.
