---
kind: "section"
citation: "7 C.F.R. § 25.405"
title: "7"
number: "25.405"
heading: "Revocation of designation."
url: "https://uscodex.org/cfr/7/25.405"
---

# §25.405. Revocation of designation.

- (a) **Basis for revocation.** The Secretary may revoke the designation of a rural area as an Empowerment Zone or Enterprise Community, or withdraw status as a Champion Community, if the Secretary determines, on the basis of the periodic monitoring and assessments described in [§ 25.402](/cfr/7/25.402.md), that the applicant, lead managing entity, or the States or local governments in which the rural area is located have:
  - (1) Modified the boundaries of the area without written approval from USDA;
  - (2) Failed to make progress in implementing the strategic plan; or
  - (3) Not complied substantially with the strategic plan (which may include failing to apply funds as contained in the strategic plan without advance written approval from USDA).
- (b) **Letter of Warning.** Before revoking the designation of a rural area as an Empowerment Zone or Enterprise Community, the Secretary will issue a letter of warning to the applicant, the lead managing entity (if different from the applicant) and the nominating States and local governments, with a copy to all affected Federal agencies of which USDA is aware:
  - (1) Advising that the Secretary has determined that the applicant and/or lead managing entity and/or the nominating local governments and State:
    - (i) Have modified the boundaries of the area without written approval from USDA; or
    - (ii) Are not complying substantially with, or have failed to make satisfactory progress in implementing the strategic plan; and
  - (2) **Requesting a reply from all involved parties within 90 days of the receipt of this letter of warning.**
- (c) **Notice of revocation.** To revoke the designation, the Secretary must issue a final notice of revocation of the designation of the rural area as an Empowerment Zone or Enterprise Community, after:
  - (1) Allowing 90 days from the date of receipt of the letter of warning for response; and
  - (2) **Making a determination pursuant to paragraph (a) of this section.**
- (d) **Notice to affected Federal agencies.** USDA will notify all affected Federal agencies of which it is aware of its determination to revoke any designation pursuant to this section or to modify a designation pursuant to [§ 25.404(b)](/cfr/7/25.404.md?p=b).
- (e) **Effective date.** The final notice of revocation of designation will be published in the Federal Register, and the revocation will be effective on the date of publication.

## Notes

### Authority

Authority: 5 U.S.C. 301; 26 U.S.C. 1391; Pub. L. 103-66, 107 Stat. 543; Pub L. 105-34, 111 Stat. 885; Sec. 766, Pub. L. 105-277, 112 Stat. 2681-37; Pub. L. 106-554 [Title I of H.R. 5562], 114 Stat. 2763.

### Source

Source: 63 FR 19114, Apr. 16, 1998, unless otherwise noted.