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<br />SECTION 20. ENVIRONMENTAL CLEARANCE REQUIREMENTS <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 />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 /> 1. The payment of reasonable planning and administrative costs related to <br /> the project. <br /> 2. Environmental studies, including environmental clearance activities <br /> required by this Section; and <br /> 3. The payment or reimbursement of reasonable project engineering and <br /> design costs incurred for this project. <br />C. Contractor shall provide Department with documentation that it has the <br />legal capacity to assume responsibilities under Section 5304(f) of Title I of <br />the Housing and Community Development Act of 1974, as amended. Contractor <br />must then follow the steps specified in this subsection to ensure compliance <br />with the National Environmental Policy Act (NEPA). Contractor shall complete <br />a written Finding of Categorical Exclusion, as applicable under 24 C.F.R. <br />Section 58.35(a), which cites the subsection of Section 58.35(a) by which the <br />activities or projects funded under this contract are categorically excluded <br />from the National Environmental Policy Act requirements of 24 C.F.R. Part 58. <br />When the recipient determines that the related authorities listed in 24 C.F.R. <br />Section 58.5 do not apply to a categorically excluded project, then the <br />project may be categorically excluded exempted from any Release of Funds <br />requirements under this part in accordance with 24 C.F.R. Section 58.34(a)(IO) <br />and ( b). Contractor must comply with all other applicable environmental <br />requirements as specified in Attachment D of this contract. Contractor shall <br />document its compliance with such other requirements in its environmental <br />revi ew fil e. Funds provided under this contract may be obligated and expended <br />before the actions specified in this subsection occur only for the following: <br /> 1. The payment of reasonable administrative costs related to <br /> the planning and execution of projects; and <br /> 2. Other related activities under 24 C.F.R. Section 58.34 that <br /> are specified as being exempt from environmental review <br /> requirements, such as eligible planning, design, and environ- <br /> mental review activities. <br /> Page 11 of 14 Pages <br />