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 E—Post-Designation Requirements (§597.400 to §597.403) > 597.403—Revocation of designation.

597.403—Revocation of designation.

(a) Basis for revocation. The Secretary may revoke the designation of an urban area as an Empowerment Zone or Enterprise Community if the Secretary determines, on the basis of the periodic performance review described at § 597.401, that the State(s) or local government(s) in which the urban area is located:
(1) Has modified the boundaries of the area;
(2) Has failed to make progress in achieving the benchmarks set forth in the strategic plan; or
(3) Has not complied substantially with the strategic plan.
(b) Letter of warning. Before revoking the designation of an urban area as an Empowerment Zone or Enterprise Community, the Secretary will issue a letter of warning to the nominating State(s) and local government(s):
(1) Advising that the Secretary has determined that the nominating local government(s) and/or State(s) has:
(i) Modified the boundaries of the area; or
(ii) Is not complying substantially with, or has failed to make progress in achieving the benchmarks set forth in the strategic plan prepared pursuant to § 597.200(c); and
(2) Requesting a reply from all involved parties within 90 days of the receipt of this letter of warning.
(c) Notice of revocation. After allowing 90 days from the date of receipt of the letter of warning for response, and after making a determination pursuant to paragraph (a) of this section, the Secretary may issue a final notice of revocation of the designation of the urban area as an Empowerment Zone or Enterprise Community.
(d) Notice to affected Federal agencies. HUD will notify all affected Federal agencies providing assistance in an urban Empowerment Zone or Enterprise Community of its determination to revoke any designation pursuant to this section or to modify a designation pursuant to § 597.402(b).