This rule amends the regulations for the Community Development Block Grants (CDBG) Small Cities Program for the State of New York. This rule eliminates the use of multiyear plans in the Small Cities Program for any NOFA published in calendar year 1997 or later. This rule also limits the maximum grant award under the annual Small Cities NOFA to any single, eligible unit of general local government to $400,000, except that counties may apply for a maximum of $600,000. HUD will honor grant awards for multiyear plans approved in response to NOFAs issued prior to calendar year 1997. In order to implement the reduction of grant limits, HUD intends to restrict competition under future annual Small Cities NOFAs to single purpose grants. This rule also makes minor technical and clarifying changes to the regulations.