HARRY HUGHES, Governor                                      3685

It is further found and declared that to promote sound
community development is a proper public purpose and State use
for which public money may be expended and property may be
acquired, and that the functions and responsibilities of the
Community Development Administration as hereinafter set forth are
necessary and proper for the purpose of achieving the ends here
recited.

266DD-3.

(d) "Development cost" means the costs incurred in carrying
out all works and undertakings which the Department deems
reasonable and necessary for the construction of a community
development project, AN INFRASTRUCTURE PROJECT, an energy
conservation project or a solar energy project. These shall
include but are not necessarily limited to the costs of all
necessary studies, surveys, plans and specifications,
architectural, engineering or other special services, acquisition
of land and any buildings thereon, site preparation and
development, construction, reconstruction, rehabilitation,
improvement and the acquisition of such machinery and equipment
and furnishings as may be deemed necessary in connection
therewith; the necessary expenses incurred in connection with
initial occupancy OR OPERATION of the [development] PROJECT; an
allocable portion of the administrative and operating expenses of
the Department; the cost of financing the project, including
interest on bonds and notes issued to finance the project from
the date thereof to the date when the Department shall determine
that the [development] PROJECT be deemed substantially occupied
OR SUBSTANTIALLY IN OPERATION; and the cost of such other items,
including any indemnity and surety bonds and premiums on
insurance, fees, relocation costs, and charges and expenses of
trustees, depositories and paying agents for bonds and notes
issued, all as the Department shall deem necessary.

(H) "INFRASTRUCTURE PROJECT" MEANS ANY UNDERTAKING,
PROJECT, OR FACILITY THAT IS PLANNED, ACQUIRED, OWNED, DEVELOPED,
CONSTRUCTED, RECONSTRUCTED, REHABILITATED, OR IMPROVED BY OR ON
BEHALF OF A COUNTY OR MUNICIPALITY IN ORDER TO PROVIDE THE
ESSENTIAL PHYSICAL ELEMENTS THAT CONSTITUTE THE BASIS OF THE
PUBLIC SERVICE SYSTEM. INFRASTRUCTURE PROJECTS INCLUDE, BUT ARE
NOT LIMITED TO, STREETS, SIDEWALKS, CURBS, SEWER AND WATER
SYSTEMS, BRIDGES, AND PUBLIC BUILDINGS THAT ARE OWNED BY A COUNTY
OR MUNICIPALITY OR ANY OF THEIR AGENCIES OR INSTRUMENTALITIES.
INFRASTRUCTURE PROJECTS MAY NOT INCLUDE ANY FACILITIES WITH
RESPECT TO WHICH LOCAL OBLIGATIONS FINANCING SUCH FACILITIES
WOULD BE PRIVATE ACTIVITY BONDS WITHIN THE MEANING OF SECTION
103(N) OF THE INTERNAL REVENUE CODE OF 1954, AS AMENDED,
OBLIGATIONS DESCRIBED IN SECTION 103(B)(4)(A) OF THAT CODE, OR
HOUSING PROGRAM OBLIGATIONS UNDER SECTION 11(B) OF THE UNITED
STATES HOUSING ACT OF 1937.

(L) "LOCAL OBLIGATION" MEANS ANY BOND, NOTE, OR OTHER
OBLIGATION OF ANY COUNTY OR MUNICIPALITY OR ANY OF THEIR AGENCIES
OR INSTRUMENTALITIES.