Common use of Small cities Clause in Contracts

Small cities. The Act permits each state to elect to admin- ister all aspects of the CDBG program annual fund allocation for the non-en- titlement areas within its jurisdiction. All states except Hawaii have elected to administer the CDBG program for non-entitlement areas within their ju- risdiction. This section is applicable only to active HUD-administered small cities grants in New York. The require- ments for the non-entitlement CDBG grants in Hawaii are set forth in § 570.429 of this subpart. States that elected to administer the program after the close of Fiscal Year 1984 can- not return administration of the pro- gram to HUD. A decision by a state to discontinue administration of the pro- gram would result in the loss of CDBG funds for non-entitlement areas in that state and the reallocation of those funds to all states in the succeeding fiscal year.