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<br />-16- <br /> <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br /> <br />HOUSING AND URBAN DEVELOPMENT, DEPARTMENT OF <br />COMMUNITY DEVELOPMENT BLOCK GRANTS AND NATIONAL FLOOD INSURANCE <br /> <br />General <br /> <br />The secretary is authorized to make community development block grants <br />for community development programs which may include, among other things, the <br />acquisition, construction or installation of (a) water and sewer facilities, <br />(b) flood and drainage facilities where assistance for such facilities is <br />unavailable under other federal laws or programs, and (c) fire protection <br />services and facilities which are located in or serve areas where other <br />community development activities are being carried out, Treatment works for <br />sewage or industrial wastes of a liquid nature are expressly prohibited, <br />The secretary also is authorized to make grants to states, metropolitan <br />planning agencies, local governments and Indian tribes for comprehensive plan- <br />ning, including that for water and sewer systems, Grants generally cover <br />two-thirds of the planning cost. <br /> <br />The Flood Disaster Protection Act of 1973 (P.L. 93-234) substantially <br />expands the National Flood Insurance Program in order to provide better pro- <br />tection to the public and to reduce annual disaster assistance outlays through <br />the increased availability of flood insurance, The act extends the emergency <br />program through December 31, 1975, and addresses three key areas: insurance, <br />flood plain management and local community consultation and appeals procedures, <br /> <br />HUD publishes information on known flood-prone communities and notifies <br />them within six months of enactment of their tentative identification as such, <br />After such notification, the community must either make prompt application <br />for participation in the flood insurance program or satisfy the secretary that <br />it is no longer flood prone, Communities having identified flood-prone areas <br />are required to participate in the flood insurance program by July 1,1975, <br />or one year from the date of identification, or else they become ineligible <br />for federally related financing for projects that would be located in such <br />areas, <br /> <br />The law requires owners of property in flood-prone areas to purchase flood <br />insurance if they are to benefit from financial assistance for their property <br />from the federal government or from any federally insured, regulated or super- <br />vised lending institution, <br /> <br />The act permits federally regulated lending institutions to make conven- <br />tional mortgage loan funds available for the acquisition of previously occupied <br />residential dwellings only, located in the special flood hazard areas or non- <br />participating communities after the date the communities should have become <br />eligible but failed to do so, The granting of this relief is only for a period <br />of six months or until January 1, 1976, <br /> <br />The secretary, in carrying out land use responsibilities under the act, <br />is required to establish procedures assuring adequate consultation with elected <br />officials of local governments, including those whose eligibility under the <br />program has been suspended. Such consultation is specifically required with <br />