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otherwise apply to Department under Section 5304(f) of the Act, in accordance with and to the ex- tent specified in 24 C,F.R. Part 58. In accordance with Section 58.77(b) of such regulations, Con- tractor further understands and agrees that Contractor shall handle inquiries and complaints from persons and agencies seeking redress in relation to environmental reviews covered by approved certifications. B. Funds provided under this contract may be obligated and expended before the actions specified in this Section occur only for the following eligible activities: 1. The payment of reasonable planning and administrative costs related to the project; 2, Environmental studies, including environmental clearance activities required by this Sec- tion; and 3. The payment or reimbursement of reasonable project engineering and design costs in- curred for this project. C, Contractor shall provide Department with documentation that it has the legal capacity to assume responsibilities under Section 5304(f) of Title I of the Housing and Community Development Act of 1974, as amended, Contractor shall prepare a written Environmental Assessment on its activities in accordance with 24 C.F.R. Part 58, Subpart F. When the Environmental Assessment is completed, Contractor must follow one of the following two (2) procedures. The first is a Finding of Significant Impact, in which the Request for Release of Funds for the project is an action which may significant- ly affect the quality of the human environment. If this is the case, Contractor must then prepare an Environmental Impact Statement in accordance with Subpart H or Subpart I of 24 C,F.R. Part 58, The second and more common procedure must be followed for all projects not requiring an Envjron- mental Impact Statement. Contractor in this instance must publish, in the manner prescribed in 24 C.F,R. Sections 58.43 and 58.44, a combined legal notice in a single publication: A Finding of No Significant Impact, and a Notice of Intent to Request Release of Funds. In the first part of this not- ice, Contractor certifies that, as a result of the Environmental Assessment, the project is not an ac- tion which mayor will significantly affect the quality of the human environment. Contractor shall then provide the public with at least 15-days (calendars days) to comment on this combined notice fol- lowing its publicatfon. date. unless exceptional circumstances exist as specified in .24 C.F.R. Section 58.46, If no unresolved problems occur, Contractor. must then concurrently submit to Department the following documents: 1) A Certificate of Publication for the combined legal notice; and 2) A Request for Release of Funds form. Upon receipt of such documents, Department must allow a 15-day (calendar days) comments period to expire before it can formally release any project funds which are subject to the environ- mental review regulations. Contractor must comply with all other applicable environmental require- ments as specified in Attachment D of this contract. Contractor shall document its compliance with such other requirements in its environmental review file. Funds provided under this contract may be obligated and expended before the actions specified in this subsection occur only for the following: 1) The payment of reasonable administrative costs related to the planning and execution of projects; and 2) Other related activities under 24 C.F.R. Section 58.34 that are specified as being exempt from environmental review requirements, such as eligible planning, design, and environmental Page 9 of 12