FEDERAL COMMUNICATIONS COMMISSION
                            WASHINGTON, D.C. 20554

                         July 9, 1996          

                                        In Reply Refer To: 1800B3-JR

Derrick A. Humphries, Esq.
Suite 308
1025 Connecticut Avenue, N.W.
Washington, D.C.  20036

                              In re:    WLUA(FM), Westwood, KY
                                   Cope Communications, Inc.
                                   File No. BMPH-931014JB (extension)
                                   Permit No. BPH-901115MH 
                                             
Dear Mr. Humphries:

This concerns the captioned October 14, 1993 application of Cope
Communications, Inc. ("Cope") for additional time to construct the
authorized facilities of Station WLUA(FM), Westwood, Kentucky (File
No. BMPH-931014JB).  For the reasons set forth below, the extension
request is denied, the WLUA construction permit (File No. BPH-
901115MH) is cancelled, and the WLUA call letters are deleted.

Background.  Cope was issued its construction permit on April 14,
1992, to expire on October 14, 1993.  In its extension request, Cope
indicates that, while its principal, James Powell ("Powell"), had
"secured what he believed to be stable investors" to finance station
construction, his attempts to reach the investors over the past six
months were unsuccessful.  Cope further indicates that on October 13,
1993 (one day before the instant extension request was filed), its
major investor stated that he wished to buy out Powell's interest,
that Powell declined, and that Powell was now concentrating his
efforts towards construction utilizing his own financing.  Cope was
directed to provide in writing a construction progress update and
details concerning its original funding sources.  Cope responded that
Dixon Broadcasting ("Dixon") was interested in purchasing the station,
that Dixon had on hand "miscellaneous studio equipment," and that
Dixon had "been in touch with suppliers concerning the availability
of other equipment."  Cope further indicated that Dixon was prepared
to obtain $500,000 in construction funds and that additional
information concerning construction progress would follow. 
Subsequently, Dixon wrote the Commission indicating interest in
purchasing WLUA if an extension is granted as well as an intent to
obtain financing to put it on the air as soon as possible.  In
response to additional requests for clarifying information,  Cope
submitted a copy of a February 12, 1996 "conditional commitment"
letter from The Industrial Bank of Washington to lend $500,000 for
construction, conditioned on Cope's securing a one-year permit
extension.

Discussion.  Section 73.3534(b) of the Commission's Rules, 47 C.F.R.
§73.3534(b), provides that broadcast station construction permits will
be extended only in one of three circumstances: (1) construction is
complete with testing underway looking toward the prompt filing of a
license application; (2) substantial construction progress has been
made; or (3) there has been a lack of construction progress for
reasons clearly beyond the control of the permittee, and the permittee
has taken all possible steps to expeditiously resolve problems and
proceed with construction.  The Commission's criteria for extensions
are strict, and explicit notice has been given of its intent to limit
extension grants to permittees which demonstrate that they have met
one of the three §73.3534(b) criteria.  Construction of Broadcast
Stations, 102 FCC 2d 1054 (1985).  Significantly, extension
applications are evaluated based upon construction progress occurring
during the most recent construction period.  See, e.g., Mansfield
Christian School, 10 FCC Rcd 12,589, 12,590 (1995).  See also
Greenfield Television, 2 FCC Rcd 4332, 4333 (1987) (permittee not
entitled to extension on basis of second effort when it did nothing
prior to expiration of permit).  Here, we will examine Cope's
construction progress between the grant of the WLUA construction
permit on April 14, 1992 and its expiration on October 14, 1993.  

An examination of Cope's application and subsequent filings reveals
that between April 14, 1992 and October 14, 1993, neither of the first
two §73.3534(b) criteria were met.  Cope fails to demonstrate that it
made any progress toward constructing station WLUA during that time. 
Additionally, both Dixon's August 7, 1995, statement that it would
"make financial arrangements" to obtain $500,000 for the construction
of WLUA and the February 12, 1996 bank commitment letter are dated
well after the construction deadline. 

As to the third criterion, the Commission has repeatedly held that the
unavailability of funds is not considered a circumstance "beyond the
control of a permittee and does not, therefore, justify extension of
a construction permit."  See, e.g.: Revision of FCC Form 301, FCC 81-
278, released October 19, 1981, 50 RR 2d 381 (1981); Instructions to
FCC Form 301 ("It is Commission policy not to grant [an] extension of
time for construction on the basis of financial inability or
unwillingness to construct.").  Nor does collapse of financial
arrangements, of itself, constitute a sufficient reason for not
building.  High Point Community Television, Inc., 2 FCC Rcd 2506, 2507
(1987); L.E.O. Broadcasting, Inc., 2 FCC Rcd 1810, 1811 (MMB 1987). 
Rather, the Commission has held that a permit extension is warranted
based on lack of financing only when, unlike the instant situation,
an applicant's progress is unexpectedly defeated by the repeated
cancellation of committed financing from traditional capital sources,
such as banks and other financial institutions.  Horseshoe Bay Centex
Broadcasting Co., 5 FCC Rcd 7125, 7128 (1990) (extension granted where
bank's financing commitment was rescinded due to Federal Deposit
Insurance Corporation lending restrictions on local banks in light of
a state-wide recession causing numerous business failures).   

The facts surrounding Cope's alleged loss of financing do not
constitute a circumstance beyond its control which warrants an
extension of time to construct under well established Commission
precedent.  Neither has Cope demonstrated that all possible steps were
taken to resolve its financial situation until well after the October
14, 1993 expiration of its permit.  

Conclusion/Actions.  In light of the above and pursuant to 47 C.F.R.
§0.283: the application for an extension of time to construct filed
by Cope Communications, Inc. (File No. BMPH-931014JB) IS DENIED; the
construction permit (BPH-901115MH) for Station WLUA(FM), Westwood,
Kentucky, IS CANCELLED; and the WLUA call letters ARE DELETED.

      Sincerely,


      
      Linda Blair, Chief
      Audio Services Division
      Mass Media Bureau

cc: Cope Communications, Inc.