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3. The payment or reimbursement of reasonable project engineering and design costs incurred <br />for this project. <br />C. Contractor shall complete a written Finding of Categorical Exclusion, as applicable under 24 <br />C.F.R. Section 58.35 (a), which cites the subsection of Section 58.35 (a) by which the activities or <br />projects funded under this contract are categorically excluded from the National Environmental Policy <br />Act requirements of 24 C.F.R. Part 58. Contractor shall then publish'a Notice of Intent to Request <br />Release of Funds in the manner prescribed in 24 C.F.R. Section 58.43. Contractor shall provide the <br />public with at least seven (7) calendar days to comment on the Notice following its publication date. <br />Finally, Contractor shall concurrently submit to Department the following documents: <br />1) a Request for Release of Funds form; <br />2) the written Finding of Categorical Exclusion described above; and <br />3) a Publisher's Affidavit for the Notice of Intent to Request Release of Funds notice. <br />Upon receipt of such documents, Department must allow a fifteen (15) calendar days comments <br />period to expire before it can formally release any project funds which are subject to the environmental <br />review regulations. Contractor must comply with all other applicable environmental requirements as <br />specified in Exhibit D of this contract. Contractor shall document its compliance with such other <br />requirements in its environmental review file. <br />SECTION 21. CITIZEN PARTICIPATION REQUIREMENTS <br />A. Contractor shall provide for and encourage citizen participation, particularly by low and moderate <br />income persons who reside in slum or blighted areas and areas in which the funds provided under <br />this contract are used, in accordance with Section 570.486 of the Regulations and this contract; <br />B. Contract shall hold a public hearing concerning any activities proposed to be added, deleted, or <br />substantially changes, as determined by the Department, from the activities specified in Exhibit A, <br />Performance Statement, of this contract; <br />C. Prior to the termination of this contract, Contractor shall hold a public hearing to review its <br />performance under this contract; <br />D. For each public hearing scheduled and conducted by Contractor under this section, Contractor <br />shall comply with the following requirements: <br />1. Notice of each hearing shall be published in the non -legal section of a newspaper having <br />general circulation in Contractor's jurisdiction at least seventy-two (72) hours prior to each <br />scheduled hearing. The published notice shall include the date, time, and location of each <br />hearing and the topics to be considered at each hearing. The published notice shall be printed in <br />both English and Spanish, if appropriate. Department shall accept articles published in such <br />newspapers which satisfy the content and timing requirements of this subsection. In addition, <br />Contractor shall prominently post such notices in public buildings and distributed to interested <br />community groups. <br />2. One of the public hearings shall be held after 5 p.m. on a weekday or on a Saturday and both <br />hearings must be conducted at a location convenient to potential or actual beneficiaries, with <br />accommodation for the handicapped. <br />Page 10 of 12 <br />