CFR > Title 24 - Housing and Urban Development > SUBTITLE B—Regulations Relating to Housing and Urban Development > CHAPTER V—OFFICE OF ASSISTANT SECRETARY FOR COMMUNITY PLANNING AND DEVELOPMENT, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (parts 500 to 599) > SUBCHAPTER C—COMMUNITY FACILITIES (parts 570 to 599) > PART 597—URBAN EMPOWERMENT ZONES AND ENTERPRISE COMMUNITIES: ROUND ONE DESIGNATIONS > SUBPART B—Area Requirements (§597.100 to §597.103) > 597.102—Tests of pervasive poverty, unemployment and general distress.

597.102—Tests of pervasive poverty, unemployment and general distress.

(a) Pervasive poverty. Pervasive poverty shall be demonstrated by the nominating entities by providing evidence that:
(1) Poverty is widespread throughout the nominated area; or
(2) Poverty has become entrenched or intractable over time (through comparison of 1980 and 1990 census data or other relevant evidence); or
(3) That no portion of the nominated area contains any component areas of an affluent character.
(b) Unemployment. Unemployment shall be demonstrated by:
(1) Data indicating that the weighted average rate of unemployment for the nominated area is not less than the national average rate of unemployment; or
(2) Evidence of especially severe economic conditions, such as military base or plant closings or other conditions which have brought about significant job dislocation within the nominated area.
(c) General distress. General distress shall be evidenced by describing adverse conditions within the nominated urban area other than those of pervasive poverty and unemployment. A high incidence of crime, narcotics use, homelessness, abandoned housing, and deteriorated infrastructure or substantial population decline, are examples of appropriate indicators of general distress.