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) > 597.103—Poverty rate.

597.103—Poverty rate.

(a) General. The poverty rate shall be established in accordance with the following criteria:
(1) In each census tract within a nominated urban area, the poverty rate shall be not less than 20 percent;
(2) For at least 90 percent of the population census tracts within the nominated urban area, the poverty rate shall not be less than 25 percent; and
(3) For at least 50 percent of the population census tracts within the nominated urban area, the poverty rate shall be not less than 35 percent.
(b) Special rules relating to the determination of poverty rate— (1) Census tracts with no population. Census tracts with no population shall be treated as having a poverty rate which meets the standards of paragraphs (a)(1) and (2) of this section, but shall be treated as having a zero poverty rate for purposes of applying paragraph (a)(3) of this section.
(2) Census tracts with populations of less than 2,000. A population census tract which has a population of less than 2,000 shall be treated as having a poverty rate which meets the requirements of paragraphs (a)(1) and (a)(2) of this section if more than 75 percent of the tract is zoned for commercial or industrial use.
(3) Adjustment of poverty rates for Enterprise Communities. Where necessary to carry out the purposes of this part, the Secretary may reduce by 5 percentage points one of the following thresholds for not more than 10 percent of the census tracts, or, if fewer, five population tracts in the nominated urban area:
(i) The 20 percent threshold in paragraph (a)(1) of this section;
(ii) The 25 percent threshold in paragraph (a)(2) of this section; and
(iii) The 35 percent threshold in paragraph (a)(3) of this section; Provided that, the Secretary may in the alternative reduce the 35 percent threshold by 10 percentage points for three population census tracts.
(4) Rounding up of percentages. In making the calculations required by this section, the Secretary shall round all fractional percentages of one-half percent or more up to the next highest whole percentage figure.
(c) Noncontiguous areas. A nominated urban area may not contain a noncontiguous parcel unless such parcel separately meets the criteria set forth at paragraphs (a)(1), (2), and (3) of this section.
(d) Areas not within census tracts. In the case of an area which does not have population census tracts, the block numbering area shall be used.