3.1.0   LAND USE

Land is a very precious resource, when used wisely; it can be enjoyed by many generations. Smart use of this finite resource is absolutely essential for a healthy environment, a dynamic economy and the well being of any community. Effective land use can help to preserve open space, protect farmland, allow planned growth without sprawl and provide the quality of life generations can enjoy in their communities. USDA recognizes that its specific mission of assisting rural areas goes hand in hand with protecting the resources upon which these areas are dependent.  Basic resources necessary to both farm and rural settlements include important farmlands and forestlands, prime rangelands, wetlands, and floodplains.   It is USDA's policy to promote effective land use responsive to current and long-term economic, social and environmental needs and discourage unwarranted conversion of important land resources to other uses. As part of the environmental review process, the compatibility of the proposed project and the considered alternatives with existing land use and land use plans should be discussed, as well as, possible land use changes that may result from implementing the proposed project.

1.  It is also recognized that unless carefully reviewed, some proposals designed to serve the needs of rural communities can adversely affect the existing economic base and settlement patterns of the community as well as create development pressures on land and environmental resources essential to farm economics.  An example of such a proposal might be the extension of utilities and other types of infrastructure beyond a community's existing settlement pattern and into important farmlands for the purpose of commercial or residential expansion, even though there is available space within the existing settlement pattern for such expansion.  Not only may the loss of important farmlands unnecessarily result, but the community may be faced with the economic costs of providing public services to outlying areas, as well as the deterioration of its central business or commercial area; the latter may not be able to compete with the newer, outlying commercial establishments.  These results are undesirable, and to avoid their occurrence, projects designed to meet rural community needs (i.e., residential, industrial, commercial, and public facilities) will not be approved unless the following conditions are met:

          (a) The project is planned and sited in a manner consistent with the policies of this section, the Farmland Protection Policy Act, and Departmental Regulation 9500-3.

          (b) The project is not inconsistent with an existing comprehensive and enforceable plan that guides growth and reflects a realistic strategy for protecting natural resources, and the project is compatible to the extent practicable, with State, unit of local government, and private programs and policies to protect farmland.

          (c) The project will encourage long-term economically viable public investment by fostering or promoting development patterns that ensure compact community development, that is, development that is limited to serving existing settlement patterns or is located in existing settlement patterns, e.g. the rehabilitation and renovation of existing structures, systems and neighborhoods; infilling of development; the provision of a range of moderate-to-high residential densities appropriate to local and regional needs.  When these development patterns or types are not practicable, the development must be contiguous with the existing settlement pattern and provide for a range of moderate-to-high residential densities appropriate to local and regional needs.  It is recognized that some Rural Development Community Programs' projects are designed to serve rural residents, such as rural water and waste disposal systems and, therefore, cannot be limited in service area to those areas contiguous with existing structures and rural residents in noncontiguous areas.  Any additional capacity within the system will be limited to meet reasonable growth needs and, to the extent practicable, be designed to meet such needs within existing settlements and areas contiguous to them. The conditions in paragraph 1 of this section should not be construed as advocating excessive densities, congestion, or loss of open space amenities within rural communities.  Desirable living conditions can be obtained under these objectives along with economic and social benefits for the community and the surrounding farm operations.  Additionally, these conditions should not be construed as requiring localities to develop plans that contain the conditions or to so amend existing plans to incorporate the conditions.  In any instance in which these planning conditions or criteria do not exist within the project area, project reviews will not be postponed until the criteria are adopted.  Rather, projects shall be reviewed and funding decisions made in light of a project's consistency with the contents of this Guide.