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<br />SECTION 20. <br /> <br />ENVIRONMENTAL CLEARANCE REQUIREMENTS <br /> <br />A. Contractor understands and agrees that by the execution of this contract <br />Contractor shall assume the responsibilities for environmental review, <br />decision making, and other action which would otherwise apply to Department <br />under Section 5304(f) of the Act, in accordance with and to the extent <br />specified in 24 C.F.R. Part 58. In accordance with Section 58.77(b) of such <br />regulations, Contractor further understands and agrees that Contractor shall <br />handle inquiries and complaints from persons and agencies seeking redress in <br />relation to environmental reviews covered by approved certifications. <br /> <br />B. Funds provided under this contract may be obligated and expended before <br />the actions specified in this Section occur only for the following eligible <br />activities: <br /> <br />1. The payment of reasonable planning and administrative costs related to <br />the project. <br /> <br />2. Environmental studies, including environmental clearance activities <br />required by this Section; and <br /> <br />3. The payment or reimbursement of reasonable project engineering and <br />design costs incurred for this project. <br /> <br />C. Contractor shall provide Department with documentation that it has the <br />legal capacity to assume environmental responsibilities under Section 5304{f) <br />of Title I of the Housing and Community Development Act of 1974, as amended. <br />Contractor must then follow the steps specified in this subsection to ensure <br />compliance with the National Environmental Policy Act (NEPA). First, <br />Contractor shall complete a written Finding of Categorical Exclusion, as <br />applicable under 24 C.F.R. Part 58. Second, Contractor shall then publish a <br />Notice of Intent to Request Release of Funds in the manner prescribed in 24 <br />C.F.R. Section 58.43. Contractor shall provide the public with at least seven <br />(7) days (calendar days) to comment on the Notice following its publication <br />date. Third, Contractor shall concurrently submit to Department the following <br />documents: 1) a Request for Release of Funds form; 2) the written Finding of <br />Categorical Exclusion described above; and 3) a Certificate of Publication of <br />the Notice of Intent to Request Release of Funds. Upon receipt of such <br />documents, Department must allow a 15 day (calendar days) comments period to <br />expire before it can formally release any project funds which are subject to <br />the environmental review regulations. Contractor must comply with all other <br />applicable environmental requirements as specified in Attachment 0 of this <br />contract. Contractor shall document its compliance with such other <br />requirements in its environmental review file. Funds provided under this <br />contract may be obligated and expended before the actions specified in this <br />subsection occur only for the following: 1) the payment of reasonable <br />administrative costs related to the planning and execution of projects; and 2) <br />other related activities under 24 C.F.R. Section 58.34 that are specified as <br />being exempt from environmental review requirements, such as eligible <br />planning, design, and environmental review activities. <br /> <br />Page 11 of 14 <br />