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US (United States) Code. Title 42. Chapter 69: Community development

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-CITE-

42 USC CHAPTER 69 - COMMUNITY DEVELOPMENT 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 69 - COMMUNITY DEVELOPMENT

-HEAD-

CHAPTER 69 - COMMUNITY DEVELOPMENT

-MISC1-

Sec.

5301. Congressional findings and declaration of purpose.

(a) Critical social, economic, and environmental

problems facing Nation's urban communities.

(b) Establishment and maintenance of viable urban

communities; systematic and sustained action

by Federal, State, and local governments;

expansion of and continuity in Federal

assistance; increased private investment;

streamlining programs and improvement of

functioning of agencies; action to address

consequences of scarce fuel supplies.

and economic opportunities for persons of low

and moderate income; community development

activities which may be supported by Federal

assistance.

(d) Consolidation of complex and overlapping

Federal assistance programs into consistent

system of Federal aid.

5302. General provisions.

(a) Definitions.

(b) Basis and modification of definitions.

(d) Local governments, inclusion in urban county

population.

(e) Exclusion of local governments from urban

county population; notification of election.

5303. Grants to States, units of general local government

and Indian tribes; authorizations.

5304. Statement of activities and review.

(a) Statement of objectives and projected use of

funds by grantee prerequisite to receipt of

grant; publication of proposals by grantees;

notice and comment; citizen participation

plan.

(b) Certification of enumerated criteria by grantee

to Secretary.

grants.

(d) Residential antidisplacement and relocation

assistance plan; certification of adherence;

contents.

(e) Submission of performance and evaluation report

by grantee to Secretary; contents;

availability for citizen comment; annual

review and audit by Secretary of program

implementation; adjustments in amount of

annual grants.

(f) Audit of grantees by General Accounting Office;

access to books, accounts, records, etc., by

representatives of General Accounting Office.

(g) Environmental protection measures applicable

for release of funds to applicants for

projects; issuance of regulations by Secretary

subsequent to consultation with Council on

Environmental Quality; request and

certification to Secretary for approval of

release of funds; form, contents and effect of

certification.

(h) Payments; revolving loan fund: establishment in

private financial institution for

rehabilitation activities; standards for

payments: criteria.

(i) Metropolitan city as part of urban county.

(j) Retention of program income; condition of

distribution.

(k) Provision of benefits to displaced persons.

(l) Protection of individuals engaging in

nonviolent civil rights demonstrations.

(m) Community development plans.

5305. Activities eligible for assistance.

(a) Enumeration of eligible activities.

(b) Reimbursement of Secretary for administrative

services connected with rehabilitation of

properties.

moderate income.

(d) Training program.

(e) Guidelines for evaluating and selecting

economic development projects.

(f) Assistance to for-profit entities.

(g) Microenterprise and small business program

requirements.

(h) Prohibition on use of assistance for employment

relocation activities.

5306. Allocation and distribution of funds.

(a) Amounts allocated to Indian tribes,

discretionary fund, and metropolitan cities

and urban counties; limitations on amount of

annual grants.

(b) Computation of amount allocated to metropolitan

cities and urban counties.

metropolitan area as original allocation;

amount and calculation of reallocation grant;

disaster relief.

(d) Allocation among States for nonentitlement

areas; amount and calculation of grants;

distributions by State or Secretary; certain

distributions made pursuant to prior

provisions; certifications required by

Governor enumerated; responsibility for

administration and administrative expenses;

reallocation; certifications required of units

of general local government in nonentitlement

areas; applicability of this chapter and other

law.

(e) Qualification or submission dates, and finality

and conclusiveness of computations and

determinations.

(f) Pro rata adjustment of entitlement amounts.

5307. Special purpose grants.

(a) Set-aside.

(b) Permissible uses of funds.

minority students participating in community

development work study programs.

(d) Continued availability of unused funds.

(e) Satisfactory assurances required, special

assurances required of Indian tribes.

(f) Criteria for selection of recipients.

5308. Guarantee and commitment to guarantee loans for

acquisition of property.

(a) Authority of Secretary; issuance of obligations

by eligible public entities or designated

public agencies; form, denomination, maturity,

and conditions of notes or other obligations;

percentage allocation requirements.

(b) Prerequisites.

(d) Repayment contract; security; pledge by State.

(e) Pledged grants for repayments.

(f) Full faith and credit of United States pledged

for payment; conclusiveness and validity of

guarantee.

(g) Issuance of obligations by Secretary to

Secretary of the Treasury to satisfy

authorized guarantee obligations;

establishment of maturities and rates of

interest and purchase of obligations by

Secretary of the Treasury.

(h) Federal taxation of guaranteed obligations;

grants to borrowing entity or agency of

taxable obligations for net interest costs,

etc.; limitation on amount of grant;

assistance to issuer in hardship cases.

(i) Omitted.

(j) Inclusion within gross income for purpose of

chapter 1 of title 26 of interest paid on

taxable obligations.

(k) Outstanding obligations; limitation; monitoring

use of guarantees under this section.

(l) Purchase of guaranteed obligations by Federal

Financing Bank.

(m) Limitation on imposition of fee or charge.

(n) State assistance in submission of applications.

(o) "Eligible public entity" defined.

(p) Training and information activities relating to

home guarantee program.

(q) Economic development grants.

(r) Guarantee of obligations backed by loans.

5309. Nondiscrimination in programs and activities.

(a) Prohibited conduct.

(b) Compliance procedures available to Secretary.

(d) Waiver of race discrimination prohibitions

regarding assistance to Hawaiian Home Lands.

5310. Labor standards; rate of wages; exceptions;

enforcement powers.

5311. Remedies for noncompliance with community development

requirements.

(a) Notice and hearing; termination, reduction, or

limitation of payments by Secretary.

(b) Referral of matters to Attorney General;

institution of civil action by Attorney

General.

Court of Appeals; filing of record of

proceedings in court by Secretary; affirmance,

etc., of findings of Secretary; exclusiveness

of jurisdiction of court; review by Supreme

Court on writ of certiorari or certification.

5312. Use of grants for settlement of outstanding urban

renewal loans of units of general local government.

(a) Limitation on amounts; prerequisites.

(b) Approval by Secretary of financial settlement

of urban renewal project.

5313. Reporting requirements.

5314. Consultation by Secretary with other Federal

departments, etc.

5315. Interstate agreements or compacts; purposes.

5316. Transition provisions.

(a) Prohibition on new grants or loans after

January 1, 1975; exceptions.

(b) Final date in fiscal year for submission of

application for grant; establishment by

Secretary.

5317. Liquidation of superseded or inactive programs.

5318. Urban development action grants.

(a) Authorization; purpose; amount.

(b) Eligibility of cities and urban counties;

criteria and standards; regulations.

proposed plan; assurance of notice and

comment; assurance of consideration on

historical landmarks.

(d) Mandatory selection criteria; award of points;

distribution of funds; number of competitions

per year; use of distress conditions data by

urban counties.

(e) Limitations on power of Secretary to approve

grants; waiver.

(f) Permissibility of consistent but unenumerated

activities; report on use of repaid grant

funds for economic development activities.

(g) Annual review and audit; adjustments,

withdrawals and reduction permitted.

(h) Limitations on grants for industrial or

commercial relocations or expansions; appeal

of denial or cancellation of assistance;

grants to adversely affected individuals.

(i) Minimum percentage of funds to be allocated to

certain noncentral cities; application by

consortia of cities of less than 50,000

population.

(j) Grant contingent on factors related to

non-Federal funds.

(k) Duty of Secretary to minimize amount.

(l) Power of Secretary to waive requirement that

town or township be closely settled.

(m) Notice to State historic preservation officer

and Secretary of the Interior required with

regard to affected landmark property;

opportunity for comment.

(n) Territories, tribes, and certain Hawaiian

counties included in term "city".

(o) Special provisions for years after 1983.

(p) Unincorporated portions of urban counties.

(q) Technical assistance grants.

(r) Nondiscrimination by Secretary against type of

activity or applicant.

(s) Maximum grant amount for fiscal years 1988 and

1989.

(t) UDAG retention program.

5318a. John Heinz Neighborhood Development Program.

(a) Definitions.

(b) Duties of Secretary.

(d) Consultation with informal working group.

(e) Matching funds for participating organizations.

(f) Authorization.

(g) Short title.

5319. Community participation in programs.

5320. Historic preservation requirements.

(a) Regulations.

(b) Actions by State historic preservation officer

and Secretary of the Interior.

Preservation providing for expeditious action.

5321. Suspension of requirements for disaster areas.

-SECREF-

CHAPTER REFERRED TO IN OTHER SECTIONS

This chapter is referred to in sections 1437d, 1439, 1440, 3013,

3533, 3535, 5133, 9816, 11505 of this title; title 7 section 2008n;

title 12 sections 1464, 1701x, 1715z, 1715z-13, 1834a; title 25

section 4104; title 40 section 14507.

-End-

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42 USC Sec. 5301 01/06/03

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TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 69 - COMMUNITY DEVELOPMENT

-HEAD-

Sec. 5301. Congressional findings and declaration of purpose

-STATUTE-

(a) Critical social, economic, and environmental problems facing

Nation's urban communities

The Congress finds and declares that the Nation's cities, towns,

and smaller urban communities face critical social, economic, and

environmental problems arising in significant measure from -

(1) the growth of population in metropolitan and other urban

areas, and the concentration of persons of lower income in

central cities;

(2) inadequate public and private investment and reinvestment

in housing and other physical facilities, and related public and

social services, resulting in the growth and persistence of urban

slums and blight and the marked deterioration of the quality of

the urban environment; and

(3) increasing energy costs which have seriously undermined the

quality and overall effectiveness of local community and housing

development activities.

(b) Establishment and maintenance of viable urban communities;

systematic and sustained action by Federal, State, and local

governments; expansion of and continuity in Federal assistance;

increased private investment; streamlining programs and

improvement of functioning of agencies; action to address

consequences of scarce fuel supplies

The Congress further finds and declares that the future welfare

of the Nation and the well-being of its citizens depend on the

establishment and maintenance of viable urban communities as

social, economic, and political entities, and require -

(1) systematic and sustained action by Federal, State, and

local governments to eliminate blight, to conserve and renew

older urban areas, to improve the living environment of low- and

moderate-income families, and to develop new centers of

population growth and economic activity;

(2) substantial expansion of and greater continuity in the

scope and level of Federal assistance, together with increased

private investment in support of community development

activities;

(3) continuing effort at all levels of government to streamline

programs and improve the functioning of agencies responsible for

planning, implementing, and evaluating community development

efforts; and

(4) concerted action by Federal, State, and local governments

to address the economic and social hardships borne by communities

as a consequence of scarce fuel supplies.

opportunities for persons of low and moderate income; community

development activities which may be supported by Federal

assistance

The primary objective of this chapter and of the community

development program of each grantee under this chapter is the

development of viable urban communities, by providing decent

housing and a suitable living environment and expanding economic

opportunities, principally for persons of low and moderate income.

Consistent with this primary objective, not less than 70 percent of

the aggregate of the Federal assistance provided to States and

units of general local government under section 5306 of this title

and, if applicable, the funds received as a result of a guarantee

or a grant under section 5308 of this title, shall be used for the

support of activities that benefit persons of low and moderate

income, and the Federal assistance provided in this chapter is for

the support of community development activities which are directed

toward the following specific objectives -

(1) the elimination of slums and blight and the prevention of

blighting influences and the deterioration of property and

neighborhood and community facilities of importance to the

welfare of the community, principally persons of low and moderate

income;

(2) the elimination of conditions which are detrimental to

health, safety, and public welfare, through code enforcement,

demolition, interim rehabilitation assistance, and related

activities;

(3) the conservation and expansion of the Nation's housing

stock in order to provide a decent home and a suitable living

environment for all persons, but principally those of low and

moderate income;

(4) the expansion and improvement of the quantity and quality

of community services, principally for persons of low and

moderate income, which are essential for sound community

development and for the development of viable urban communities;

(5) a more rational utilization of land and other natural

resources and the better arrangement of residential, commercial,

industrial, recreational, and other needed activity centers;

(6) the reduction of the isolation of income groups within

communities and geographical areas and the promotion of an

increase in the diversity and vitality of neighborhoods through

the spatial deconcentration of housing opportunities for persons

of lower income and the revitalization of deteriorating or

deteriorated neighborhoods;

(7) the restoration and preservation of properties of special

value for historic, architectural, or esthetic reasons;

(8) the alleviation of physical and economic distress through

the stimulation of private investment and community

revitalization in areas with population outmigration or a

stagnating or declining tax base; and

(9) the conservation of the Nation's scarce energy resources,

improvement of energy efficiency, and the provision of

alternative and renewable energy sources of supply.

It is the intent of Congress that the Federal assistance made

available under this chapter not be utilized to reduce

substantially the amount of local financial support for community

development activities below the level of such support prior to the

availability of such assistance.

(d) Consolidation of complex and overlapping Federal assistance

programs into consistent system of Federal aid

It is also the purpose of this chapter to further the development

of a national urban growth policy by consolidating a number of

complex and overlapping programs of financial assistance to

communities of varying sizes and needs into a consistent system of

Federal aid which -

(1) provides assistance on an annual basis, with maximum

certainty and minimum delay, upon which communities can rely in

their planning;

(2) encourages community development activities which are

consistent with comprehensive local and areawide development

planning;

(3) furthers achievement of the national housing goal of a

decent home and a suitable living environment for every American

family; and

(4) fosters the undertaking of housing and community

development activities in a coordinated and mutually supportive

manner by Federal agencies and programs, as well as by

communities.

-SOURCE-

(Pub. L. 93-383, title I, Sec. 101, Aug. 22, 1974, 88 Stat. 633;

Pub. L. 95-128, title I, Sec. 101, Oct. 12, 1977, 91 Stat. 1111;

Pub. L. 96-399, title I, Sec. 104(a), Oct. 8, 1980, 94 Stat. 1616;

Pub. L. 98-181, title I, Sec. 101(a), Nov. 30, 1983, 97 Stat. 1159;

Pub. L. 100-242, title V, Sec. 502(a), (b), Feb. 5, 1988, 101 Stat.

1923; Pub. L. 101-625, title IX, Secs. 902(a), 913(a), Nov. 28,

1990, 104 Stat. 4385, 4392; Pub. L. 103-233, title II, Sec.

232(a)(2)(A), Apr. 11, 1994, 108 Stat. 367.)

-REFTEXT-

REFERENCES IN TEXT

This chapter, referred to in subsecs. (c) and (d), was in the

original "this title", meaning title I of Pub. L. 93-383, Aug. 22,

1974, 88 Stat. 633, as amended, which enacted this chapter and

amended sections 1452b, 1453, and 3311 of this title, section 1701u

of Title 12, Banks and Banking, and section 711 of former Title 31,

Money and Finance. For complete classification of this Act to the

Code, see Short Title note set out below and Tables.

-MISC1-

AMENDMENTS

1994 - Subsec. (c). Pub. L. 103-233 inserted "or a grant" after

"guarantee" in second sentence.

1990 - Subsec. (c). Pub. L. 101-625, Sec. 913(a), inserted "to

States and units of general local government" after first reference

to "Federal assistance provided" in second sentence.

Pub. L. 101-625, Sec. 902(a), substituted "70 percent" for "60

percent" in second sentence.

1988 - Subsec. (c). Pub. L. 100-242, Sec. 502(a), substituted

"60" for "51".

Subsec. (c)(6). Pub. L. 100-242, Sec. 502(b), struck out "to

attract persons of higher income" before semicolon at end.

1983 - Subsec. (c). Pub. L. 98-181, Sec. 101(a)(1), inserted "and

of the community development program of each grantee under this

chapter" in provisions preceding par. (1).

Pub. L. 98-181, Sec. 101(a)(2), inserted "not less than 51

percent of the aggregate of the Federal assistance provided under

section 5306 of this title and, if applicable, the funds received

as a result of a guarantee under section 5308 of this title, shall

be used for the support of activities that benefit persons of low

and moderate income, and" in provisions preceding par. (1).

1980 - Subsec. (a)(3). Pub. L. 96-399, Sec. 104(a)(1)-(3), added

par. (3).

Subsec. (b)(4). Pub. L. 96-399, Sec. 104(a)(4)-(6), added par.

(4).

Subsec. (c)(9). Pub. L. 96-399, Sec. 104(a)(7)-(9), added par.

(9).

1977 - Subsec. (c)(8). Pub. L. 95-128, Sec. 101(a), added par.

(8).

Subsec. (d)(4). Pub. L. 95-128, Sec. 101(b), provided that the

development activities be undertaken by Federal agencies and

programs as well as by communities.

EFFECTIVE DATE OF 1994 AMENDMENT

Section 209 of title II of Pub. L. 103-233 provided that: "The

amendments made by this title [enacting sections 5321 and 12840 of

this title and amending this section and sections 5304, 5305, 5308,

5318, 12704, 12744, 12745, 12750, 12833, 12838, and 12893 of this

title] shall apply with respect to any amounts made available to

carry out title II of the Cranston-Gonzalez National Affordable

Housing Act [42 U.S.C. 12721 et seq.] after the date of the

enactment of this Act [Apr. 11, 1994] and any amounts made

available to carry out such title before such date of enactment

that remain uncommitted on such date. The Secretary shall issue any

regulations necessary to carry out the amendments made by this

title not later than the expiration of the 45-day period beginning

on the date of the enactment of this Act."

EFFECTIVE DATE OF 1992 AMENDMENT

Pub. L. 102-550, Sec. 2, Oct. 28, 1992, 106 Stat. 3681, provided

that: "The provisions of this Act [see Tables for classification]

and the amendments made by this Act shall take effect and shall

apply upon the date of the enactment of this Act [Oct. 28, 1992],

unless such provisions or amendments specifically provide for

effectiveness or applicability upon another date certain."

EFFECTIVE DATE OF 1990 AMENDMENT

Amendment by section 913(a) of Pub. L. 101-625 applicable to

amounts approved in any appropriation Act under section 5303 of

this title for fiscal year 1990 and each fiscal year thereafter,

see section 913(f) of Pub. L. 101-625, set out as a note under

section 5306 of this title.

EFFECTIVE DATE OF 1983 AMENDMENT

Amendment by Pub. L. 98-181 applicable only to funds available

for fiscal year 1984 and thereafter, see section 110(b) of Pub. L.

98-181, as amended, set out as a note under section 5316 of this

title.

EFFECTIVE DATE OF 1977 AMENDMENT

Section 114 of title I of Pub. L. 95-128 provided that: "The

amendments made by this title [enacting section 5318 of this title,

amending this section, sections 1452b, 5302 to 5308, and 5313 of

this title, and section 461 of former Title 40, Public Buildings,

Property, and Works, and enacting provisions set out as a note

under section 5313 of this title] shall become effective October 1,

1977."

SHORT TITLE OF 1992 AMENDMENT

Pub. L. 102-550, Sec. 1(a), Oct. 28, 1992, 106 Stat. 3672,

provided that: "This Act [see Tables for classification] may be

cited as the 'Housing and Community Development Act of 1992'."

SHORT TITLE OF 1988 AMENDMENT

Section 1(a) of Pub. L. 100-242 provided that: "This Act [see

Tables for classification] may be cited as the 'Housing and

Community Development Act of 1987'."

SHORT TITLE OF 1986 AMENDMENT

Pub. L. 99-272, title III, Sec. 3001(a), Apr. 7, 1986, 100 Stat.

101, provided that: "This title [amending sections 1437b, 1437g,

1452b, 1483, 1485, 1487, 1490, 1490c, 4026, 4056, 4101, 5302, and

5308 of this title, and sections 1703, 1715h, 1715l, 1715z,

1715z-9, 1715z-10, 1715z-14, 1748h-1, 1748h-2, 1749bb, 1749aaa,

1749bbb, and 2811 of Title 12, Banks and Banking, enacting

provisions set out as notes under section 5308 of this title, and

amending provisions set out as a note under section 1701q of Title

12] may be cited as the 'Housing and Community Development

Reconciliation Amendments of 1985'."

SHORT TITLE OF 1984 AMENDMENT

Pub. L. 98-479, Sec. 1, Oct. 17, 1984, 98 Stat. 2218, provided:

"That this Act [amending sections 1437a, 1437b, 1437d, 1437f,

1437h, 1437l, 1437o, 1438 to 1440, 1452, 1455, 1456, 1471, 1472,

1480, 1481, 1483, 1485, 1487, 1490, 1490a to 1490c, 1493, 2414,

3337, 3535, 3541, 3936, 3938, 4016, 4017, 4101, 4105, 4124, 4502,

5302, 5304 to 5306, 5308, 5312, 5317, 5318, 5403, 6863, 8004, 8010,

and 8107 of this title, sections 1425a, 1457, 1701c, 1701h, 1701q,

1701s, 1701x, 1701z-2, 1701z-13, 1702, 1705, 1706e, 1709, 1713,

1715d, 1715h, 1715l, 1715n, 1715y, 1715z, 1715z-1, 1715z-1a,

1715z-5 to 1715z-9, 1717, 1719, 1721, 1723a, 1723g, 1723h, 1732,

1735f-5, 1735f-9, 1749, 1749a, 1749c, 1749aaa, 1749aaa-3,

1749bbb-8, 1749bbb-13, 1749bbb-17, 1750c, 1757, 2706, 2709, 3612,

and 3618 of Title 12, Banks and Banking, and sections 1635 and 1715

of Title 15, Commerce and Trade, enacting provisions set out as

notes under sections 1472 and 5305 of this title and sections

1715b, 1732 and 3618 of Title 12, and amending provisions set out

as notes under sections 602, 5316, and 5318 of this title and

section 1701z-6 of Title 12] may be cited as the 'Housing and

Community Development Technical Amendments Act of 1984'."

SHORT TITLE OF 1981 AMENDMENT

Pub. L. 97-35, title III, Sec. 300, Aug. 13, 1981, 95 Stat. 384,

provided that: "This subtitle [subtitle A (Secs. 300-371) of title

III of Pub. L. 97-35, enacting sections 1437j-1, 1437n, and 4028 of

this title and sections 1701z-14, 1735f-9, 1735f-10, 2294a, and

3701 to 3717 of Title 12, Banks and Banking, amending sections

1436a, 1437 to 1437d, 1437f, 1437g, 1437i, 1437j, 1437l, 1439,

1452b, 1483, 1485, 1487, 1490a, 1490c, 4017, 4026, 4056, 4081,

4127, 4518, 5302 to 5313, 5316, 5318, 5320, and 8107 of this title

and sections 1701s, 1701j-2, 1701q, 1701x, 1701z-1, 1701z-14, 1703,

1706e, 1709-1, 1713, 1715e, 1715h, 1715k, 1715l, 1715n, 1715v,

1715y, 1715z, 1715z-1, 1715z-1a, 1715z-1b, 1715z-7, 1715z-9,

1715z-10, 1720, 1721, 1735c, 1748h-1, 1748h-2, 1749bb, 1749aaa,

1749bbb, and 1749bbb-3 of Title 12, repealing sections 8121 to 8124

of this title and section 461 of former Title 40, Public Buildings,

Property, and Works, enacting provisions set out as notes under

1436a, 1437a, 1437f, 4028, 5304, 5305, 5306, 5318 of this title and

sections 1703, 1720, and 3701 of Title 12, and repealing provisions

set out as notes under section 8121 of this title and section 1701s

of Title 12] may be cited as the 'Housing and Community Development

Amendments of 1981'."

SHORT TITLE OF 1980 AMENDMENT

Section 1 of Pub. L. 96-399 provided: "That this Act [enacting

sections 1436a, 1436b, 1437l, 1437m, 1490j and 5320 of this title,

sections 1735f-8 and 2809 to 2811 of Title 12, Banks and Banking,

and sections 3601 to 3616 of Title 15, Commerce and Trade, amending

this section, sections 1437c, 1437d, 1437f, 1437g, 1437k, 1439,

1441c, 1452b, 1471, 1472, 1480, 1483 to 1487, 1490a, 1490c to

1490e, 3535, 4127, 5302 to 5308, 5316 to 5318, 5401 to 5404, 5406

to 5416, 5419, 5421 to 5423, 5425, 6833, 6835, 8004, 8102, 8105,

8107, and 8124 of this title, sections 86a, 1425a, 1454, 1701q,

1701s, 1701u, 1701z-1, 1701z-11, 1703, 1706e, 1707, 1709, 1709-1,

1713, 1715d, 1715e, 1715h, 1715k, 1715l to 1715n, 1715u to 1715w,

1715y to 1715z-1, 1715z-1a, 1715z-5 to 1715z-7, 1715z-9, 1715z-10,

1717, 1720, 1721, 1723e, 1735c, 1735f-7a, 1748h-1, 1748h-2, 1749bb,

1749aaa and 2803 of Title 12 and sections 461 and 484b of former

Title 40, Public Buildings, Property and Works, repealing section

2809 of Title 12, enacting provisions set out as notes under

sections 1472, 3535, 5302, 5313, 5401, 5424 and 8106 of this title,

sections 86a, 1701z-6, 1703, 1715d, 1715z, 1717, 1723a, 1723e and

3305 of Title 12, section 3601 of Title 15, and section 461 of

former Title 40, and amending provisions set out as notes under

section 5401 of this title and sections 86a, 1701z-6, 1723e, and

1735f-4 of Title 12] may be cited as the 'Housing and Community

Development Act of 1980'."

SHORT TITLE OF 1979 AMENDMENT

Pub. L. 96-153, Sec. 1, Dec. 21, 1979, 93 Stat. 1101, provided:

"That this Act [enacting section 1735f-7 of Title 12, Banks and

Banking, section 1719a of Title 15, Commerce and Trade, and section

1437k of this title, amending section 5315 of Title 5, Government

Organization and Employees, sections 90, 1426, 1431, 1451, 1452,

1455, 1464, 1701q, 1701s, 1701z-1, 1701z-11, 1703, 1706e, 1709,

1709-1, 1713, 1715e, 1715h, 1715k, 1715l, 1715m, 1715v, 1715y,

1715z, 1715z-1, 1715z-1a, 1715z-6, 1715z-7, 1715z-9, 1715z-10,

1717, 1728, 1735c, 1748h-1, 1748h-2, 1749bb, 1749aaa, 1749bbb,

1757, 1787, and 1821 of Title 12, sections 1701, 1702, 1703, 1708,

1709, 1711, 1715, and 1717 of Title 15, section 461 of former Title

40, Public Buildings, Property, and Works, and sections 1437a,

1437c, 1437d, 1437f, 1437g, 1439, 1452b, 1471, 1472, 1474, 1479,

1480, 1483, 1484, 1485, 1486, 1487, 1490a, 1490c, 3533a, 3541,

4026, 4056, 4127, 5302, 5303, 5304, 5306, 5318, 5419, 8107, 8123,

8124, and 8146 of this title, and enacting provisions set out as

notes under sections 1701, 1701q, 1701s, 1703, 1709, 1723e, and

1728 of Title 12, section 1701 of Title 15, and sections 1437a,

1437f, and 5304 of this title] may be cited as the 'Housing and

Community Development Amendments of 1979'."

SHORT TITLE OF 1978 AMENDMENT

Pub. L. 95-557, Sec. 1, Oct. 31, 1978, 92 Stat. 2080, provided

that: "This Act [enacting sections 3541, 5319, 8001 to 8010, 8101

to 8107, 8121 to 8124, and 8141 to 8146 of this title and sections

1701z-9 to 1701z-13, 1715z-1a, 1715z-1b, 1735f-6, of Title 12,

Banks and Banking, amending sections 1437a, 1437c, 1437e, 1437f,

1437g, 1441c, 1452b, 1476, 1480, 1483 to 1487, 1490a, 1490c, 1490e,

3371, 3535, 4026, 4056, 4127, 4521, 5304, 5305, 5307, 5318 and

5425, of this title, sections 1454, 1701j-2, 1701q, 1701z-1, 1703,

1706e, 1709, 1709-1, 1713, 1715h, 1715l, 1715n, 1715y, 1715z,

1715z-1, 1715z-5, 1715z-6, 1715z-9, 1715z-10, 1715z-11, 1715w,

1717, 1720, 1735c, 1748h-1, 1748h-2, 1749bb, 1749aaa, 1749bbb, and

1749bbb-3 of Title 12, section 1702 of Title 15, Commerce and

Trade, and sections 461 and 484b of former Title 40, Public

Buildings, Property, and Works, and enacting provisions set out as

notes under sections 1437c, 1437f, 1441, 1476, 1480, 5313, 8001,

8101, 8121, and 8141 of this title and sections 1454,

1701z-6, 1701z-9, 1709, 1715z-1, and 1723e of Title 12] may be

cited as the 'Housing and Community Development Amendments of

1978'."

SHORT TITLE OF 1977 AMENDMENT

Section 1 of Pub. L. 95-128 provided that: "This Act [enacting

sections 3540 and 5318 of this title and sections 2901 to 2905 of

Title 12, Banks and Banking, amending this section, sections 1437c,

1437f, 1437g, 1439, 1452b, 1471, 1472, 1476, 1479, 1483 to 1485,

1487, 1490a, 1490c, 1490h, 3533, 4003, 4013, 4026, 4056, 4103 to

4106, 4127, 4501 to 4503, 4521, 5302 to 5308, 5313, 5403, and 5409

of this title, sections 355, 1430, 1454, 1464, 1701q, 1701x,

1701z-1, 1703, 1706e, 1709, 1709-1, 1715h, 1715k to 1715m, 1715w,

1715y, 1715z, 1715z-1, 1715z-3, 1715z-7, 1715z-9, 1715z-10, 1717,

1723a, 1723e, 1748h-1, 1748h-2, 1749bb, and 1749aaa of Title 12,

and section 461 of former Title 40, Public Buildings, Property, and

Works, and enacting provisions set out as notes under this section,

sections 1421b, 1437d, 1490h, 4501, and 5313 of this title, and

sections 1715z-1, 1723e of Title 12] may be cited as the 'Housing

and Community Development Act of 1977'."

SHORT TITLE

Section 1 of Pub. L. 93-383 provided: "That this Act [enacting

this chapter, sections 1701j-2, 1701l-1, 1701z-5, 1701z-6, 1706e,

1715z-9 to 1715z-11, and 1735f-3 to 1735f-5 of Title 12, Banks and

Banking, section 803a of Title 20, Education, and sections 1437 to

1437j, 1438 to 1440, 1490e to 1490g, 4104a, and 5401 to 5426 of

this title, amending sections 5315 and 5316 of Title 5, Government

Organization and Employees, sections 24, 371, 1431, 1436, 1454,

1464, 1701q, 1701u, 1701x, 1701z-3, 1703, 1709, 1709-1, 1713,

1715e, 1715h, 1715k to 1715n, 1715v, 1715w, 1715y, 1715z, 1715z-1,

1715z-3, 1715z-6, 1715z-7, 1717, 1718, 1719, 1723a, 1735b, 1748h-1,

1748h-2, 1749bb, 1749aaa, 1749aaa-4, 1749aaa-5, 1757, 1759, 1761b,

1761d, 1763, 1772, 1782, 1786, and 1788 of Title 12, sections 1701

to 1703 of Title 15, Commerce and Trade, sections 801, 802, and 806

of Title 20, section 711 of former Title 31, Money and Finance,

sections 460 and 461 of former Title 40, Public Buildings,

Property, and Works, sections 1441a, 1441c, 1452b, 1453, 1471,

1472, 1474, 1476 to 1478, 1483, 1485, 1487, 1490, 1490a, 1490c,

1490d, 1586, 3311, 3533, 3604 to 3606, 3631, 4014, 4512, 4514 to

4516, 4519, and 4532 of this title, and sections 1602 and 1602a of

former Title 49, Transportation, repealing sections 1411d and 1455a

of this title, and enacting provisions set out as notes under this

section, sections 1464, 1701q, 1715l, 1715z-1, 1716b, and 1723a of

Title 12, section 1703 of Title 15, sections 1410, 1421b, 1437,

1437a, 1437f, 3532, and 5401 of this title, and section 1602a of

former Title 49] may be cited as the 'Housing and Community

Development Act of 1974'."

INCOME ELIGIBILITY FOR HOME AND CDBG PROGRAMS

Pub. L. 105-276, title V, Sec. 590, Oct. 21, 1998, 112 Stat.

2651, provided that:

"(a) In General. - The Secretary of Housing and Urban Development

shall, for not less than 10 jurisdictions that are metropolitan

cities or urban counties for purposes of title I of the Housing and

Community Development Act of 1974 [42 U.S.C. 5301 et seq.], grant

exceptions not later than 90 days after the date of the enactment

of this Act [Oct. 21, 1998] for such jurisdictions that provide

that -

"(1) for purposes of the HOME investment partnerships program

under title II of the Cranston-Gonzalez National Affordable

Housing Act [42 U.S.C. 12721 et seq.], the limitation based on

percentage of median income that is applicable under section

104(10), 214(1)(A), or 215(a)(1)(A) [42 U.S.C. 12704(10),

12744(1)(A), 12745(a)(1)(A)] for any area of the jurisdiction

shall be the numerical percentage that is specified in such

section; and

"(2) for purposes of the community development block grant

program under title I of the Housing and Community Development

Act of 1974 [42 U.S.C. 5301 et seq.], the limitation based on

percentage of median income that is applicable pursuant to

section 102(a)(20) [42 U.S.C. 5302(a)(20)] for any area within

the State or unit of general local government shall be the

numerical percentage that is specified in subparagraph (A) of

such section.

"(b) Effective Date. - This section shall take effect on the date

of the enactment of this Act [Oct. 21, 1998]."

FINDINGS AND PURPOSE

Section 2 of Pub. L. 100-242 provided that:

"(a) Findings. - The Congress finds that -

"(1) for the past 50 years, the Federal Government has taken

the leading role in enabling the people of the Nation to be the

best housed in the world, and recent reductions in Federal

assistance have contributed to a deepening housing crisis for

low- and moderate-income families;

"(2) the efforts of the Federal Government have included a

system of specialized lending institutions, favorable tax

policies, construction assistance, mortgage insurance, loan

guarantees, secondary markets, and interest and rental subsidies,

that have enabled people to rent or buy affordable, decent, safe,

and sanitary housing; and

"(3) the tragedy of homelessness in urban and suburban

communities across the Nation, involving a record number of

people, dramatically demonstrates the lack of affordable

residential shelter, and people living on the economic margins of

our society (lower income families, the elderly, the working

poor, and the deinstitutionalized) have few available

alternatives for shelter.

"(b) Purpose. - The purpose of this Act [see Short Title of 1988

Amendment note above], therefore, is -

"(1) to reaffirm the principle that decent and affordable

shelter is a basic necessity, and the general welfare of the

Nation and the health and living standards of its people require

the addition of new housing units to remedy a serious shortage of

housing units for all Americans, particularly for persons of low

and moderate income;

"(2) to make the distribution of direct and indirect housing

assistance more equitable by providing Federal assistance for the

less affluent people of the Nation;

"(3) to provide needed housing assistance for homeless people

and for persons of low and moderate income who lack affordable,

decent, safe, and sanitary housing; and

"(4) to reform existing programs to ensure that such assistance

is delivered in the most efficient manner possible."

BUDGET COMPLIANCE

Section 3 of Pub. L. 100-242 provided that:

"(a) In General. - This Act and the amendments made by this Act

[see Short Title of 1988 Amendment note above] may not be construed

to provide for new budget authority, budget outlays, or new

entitlement authority, for fiscal year 1988 in excess of the

appropriate aggregate levels established by the concurrent

resolution on the budget for such fiscal year for the programs

authorized by this Act and the amendments made by this Act.

"(b) Definitions. - For purposes of this section, the terms

'budget authority', 'budget outlays', 'concurrent resolution on the

budget', and 'entitlement authority' have the meanings given such

terms in section 3 of the Congressional Budget Act of 1974 (2

U.S.C. 622)."

CREDIT LIMITATION

Section 4 of Pub. L. 100-242 provided that: "Any new credit

authority (as defined in section 3 of the Congressional Budget Act

of 1974 [2 U.S.C. 622]) which is provided by this Act [see Short

Title of 1988 Amendment note above], or by an amendment made by

this Act, shall be effective only to such extent or in such amounts

as are provided in appropriation Acts."

LIMITATION ON SPENDING AUTHORITY

Section 5 of Pub. L. 100-242 provided that: "Any new spending

authority (as defined in section 401(c) of the Congressional Budget

Act of 1974 [2 U.S.C. 651(c)]) which is provided by this Act, or by

an amendment made by this Act [see Short Title of 1988 Amendment

note above], shall be effective only to such extent or in such

amounts as are provided in appropriation Acts."

LIMITATION ON WITHHOLDING OR CONDITIONING OF ASSISTANCE

Section 817 of Pub. L. 93-383, as amended by Pub. L. 98-181,

title III, Sec. 302(c), Nov. 30, 1983, 97 Stat. 1206, provided

that: "Assistance provided for in this Act [see Short Title note

above] the National Housing Act, [12 U.S.C. 1701 et seq.], the

United States Housing Act of 1937 [42 U.S.C. 1437 et seq.], the

Housing Act of 1949 [42 U.S.C. 1441 et seq.], the Demonstration

Cities and Metropolitan Development Act of 1966 [see Short Title

note set out under section 3331 of this title], the Housing and

Urban Development Acts of 1965, 1968, 1969, and 1970 [see Short

Title notes set out under section 1701 of Title 12, Banks and

Banking], and section 17 of the United States Housing Act of 1937

[42 U.S.C. 1437o] shall not be withheld or made subject to

conditions or preference by reason of the tax-exempt status of

bonds or other obligations issued or to be issued to provide

financing for use in connection with such assistance, except where

otherwise expressly provided or authorized by law."

-SECREF-

ACT REFERRED TO IN OTHER SECTIONS

The Housing and Community Development Act of 1974 is referred to

in sections 12705, 12706 of this title; title 12 sections 4707,

4712; title 25 section 1632; title 40 section 3162.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 5305 of this title.

-End-

-CITE-

42 USC Sec. 5302 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 69 - COMMUNITY DEVELOPMENT

-HEAD-

Sec. 5302. General provisions

-STATUTE-

(a) Definitions

As used in this chapter -

(1) The term "unit of general local government" means any city,

county, town, township, parish, village, or other general purpose

political subdivision of a State; Guam, the Northern Mariana

Islands, the Virgin Islands, and American Samoa, or a general

purpose political subdivision thereof; a combination of such

political subdivisions that, except as provided in section

5306(d)(4) of this title, is recognized by the Secretary; the

District of Columbia; and the Trust Territory of the Pacific

Islands. Such term also includes a State or a local public body

or agency (as defined in section 4512 (!1) of this title),

community association, or other entity, which is approved by the

Secretary for the purpose of providing public facilities or

services to a new community as part of a program meeting the

eligibility standards of section 4513 (!1) of this title or title

IV of the Housing and Urban Development Act of 1968 [42 U.S.C.

3901 et seq.].

(2) The term "State" means any State of the United States, or

any instrumentality thereof approved by the Governor; and the

Commonwealth of Puerto Rico.

(3) The term "metropolitan area" means a standard metropolitan

statistical area as established by the Office of Management and

Budget.

(4) The term "metropolitan city" means (A) a city within a

metropolitan area which is the central city of such area, as

defined and used by the Office of Management and Budget, or (B)

any other city, within a metropolitan area, which has a

population of fifty thousand or more. Any city that was

classified as a metropolitan city for at least 2 years pursuant

to the first sentence of this paragraph shall remain classified

as a metropolitan city. Any unit of general local government that

becomes eligible to be classified as a metropolitan city, and was

not classified as a metropolitan city in the immediately

preceding fiscal year, may, upon submission of written

notification to the Secretary, defer its classification as a

metropolitan city for all purposes under this chapter, if it

elects to have its population included in an urban county under

subsection (d) of this section. Notwithstanding the second

sentence of this paragraph, a city may elect not to retain its

classification as a metropolitan city. Any city classified as a

metropolitan city pursuant to this paragraph, and that no longer

qualifies as a metropolitan city in a fiscal year beginning after

fiscal year 1989, shall retain its classification as a

metropolitan city for such fiscal year and the succeeding fiscal

year, except that in such succeeding fiscal year (A) the amount

of the grant to such city shall be 50 percent of the amount

calculated under section 5306(b) of this title; and (B) the

remaining 50 percent shall be added to the amount allocated under

section 5306(d) of this title to the State in which the city is

located and the city shall be eligible in such succeeding fiscal

year to receive a distribution from the State allocation under

section 5306(d) of this title as increased by this sentence. Any

unit of general local government that was classified as a

metropolitan city in any fiscal year, may, upon submission of

written notification to the Secretary, relinquish such

classification for all purposes under this chapter if it elects

to have its population included with the population of a county

for purposes of qualifying for assistance (for such following

fiscal year) under section 5306 of this title as an urban county

under paragraph (6)(D). Any metropolitan city that elects to

relinquish its classification under the preceding sentence and

whose port authority shipped at least 35,000,000 tons of cargo in

1988, of which iron ore made up at least half, shall not receive,

in any fiscal year, a total amount of assistance under section

5306 of this title from the urban county recipient that is less

than the city would have received if it had not relinquished the

classification under the preceding sentence.

(5) The term "city" means (A) any unit of general local

government which is classified as a municipality by the United

States Bureau of the Census or (B) any other unit of general

local government which is a town or township and which, in the

determination of the Secretary, (i) possesses powers and performs

functions comparable to these associated with municipalities,

(ii) is closely settled, and (iii) contains within its boundaries

no incorporated places as defined by the United States Bureau of

the Census which have not entered into cooperation agreements

with such town or township to undertake or to assist in the

undertaking of essential community development and housing

assistance activities.

(6)(A) The term "urban county" means any county within a

metropolitan area which -

(i) is authorized under State law to undertake essential

community development and housing assistance activities in its

unincorporated areas, if any, which are not units of general

local government; and

(ii) either -

(I) has a population of 200,000 or more (excluding the

population of metropolitan cities therein) and has a combined

population of 100,000 or more (excluding the population of

metropolitan cities therein) in such unincorporated areas and

in its included units of general local government (and in the

case of counties having a combined population of less than

200,000, the areas and units of general local government must

include the areas and units of general local government which

in the aggregate have the preponderance of the persons of low

and moderate income who reside in the county) (a) in which it

has authority to undertake essential community development

and housing assistance activities and which do not elect to

have their population excluded, or (b) with which it has

entered into cooperation agreements to undertake or to assist

in the undertaking of essential community development and

housing assistance activities; or

(II) has a population in excess of 100,000, a population

density of at least 5,000 persons per square mile, and

contains within its boundaries no incorporated places as

defined by the United States Bureau of the Census.

(B) Any county that was classified as an urban county for at

least 2 years pursuant to subparagraph (A), (C), or (D) shall

remain classified as an urban county, unless it fails to qualify

as an urban county pursuant to subparagraph (A) by reason of the

election of any unit of general local government included in such

county to have its population excluded under clause (ii)(I)(a) of

subparagraph (A) or not to renew a cooperation agreement under

clause (ii)(I)(b) of such subparagraph.

clause (ii) of subparagraph (A), a county shall also qualify as

an urban county for purposes of assistance under section 5306 of

this title if such county -

(i) complies with all other requirements set forth in the

first sentence;

(ii) has, according to the most recent available decennial

census data, a combined population between 190,000 and 199,999,

inclusive (excluding the population of metropolitan cities

therein) in all its unincorporated areas that are not units of

general local government and in all units of general local

government located within such county;

(iii) had a population growth rate of not less than 15

percent during the most recent 10-year period measured by

applicable censuses; and

(iv) has submitted data satisfactory to the Secretary that it

has a combined population of not less than 200,000 (excluding

the population of metropolitan cities therein) in all its

unincorporated areas that are not units of general local

government and in all units of general local government located

within such county.

(D) Such term also includes a county that -

(i) has a combined population in excess of 175,000, has more

than 50 percent of the housing units of the area unsewered, and

has an aquifer that was designated before March 1, 1987, a sole

source aquifer by the Environmental Protection Agency;

(ii) has taken steps, which include at least one public

referendum, to consolidate substantial public services with an

adjoining metropolitan city, and in the opinion of the

Secretary, has consolidated these services with the city in an

effort that is expected to result in the unification of the two

governments within 6 years of February 5, 1988;

(iii) had a population between 180,000 and 200,000 on October

1, 1987, was eligible for assistance under section 5318 of this

title in fiscal year 1986, and does not contain any

metropolitan cities;

(iv) has entered into a local cooperation agreement with a

metropolitan city that received assistance under section 5306

of this title because of such classification, and has elected

under paragraph (4) to have its population included with the

population of the county for purposes of qualifying as an urban

county; except that to qualify as an urban county under this

clause (I) the county must have a combined population of not

less than 195,000, (II) more than 15 percent of the residents

of the county shall be 60 years of age or older (according to

the most recent decennial census data), (III) not less than 20

percent of the total personal income in the county shall be

from pensions, social security, disability, and other transfer

programs, and (IV) not less than 40 percent of the land within

the county shall be publicly owned and not subject to property

tax levies;

(v)(I) has a population of 175,000 or more (including the

population of metropolitan cities therein), (II) before January

1, 1975, was designated by the Secretary of Defense pursuant to

section 608 of the Military Construction Authorization Act,

1975 (Public Law 93-552; 88 Stat. 1763), as a Trident Defense

Impact Area, and (III) has located therein not less than 1 unit

of general local government that was classified as a

metropolitan city and (a) for which county each such unit of

general local government therein has relinquished its

classification as a metropolitan city under the 6th sentence of

paragraph (4), or (b) that has entered into cooperative

agreements with each metropolitan city therein to undertake or

to assist in the undertaking of essential community development

and housing assistance activities;

(vi) has entered into a local cooperation agreement with a

metropolitan city that received assistance under section 5306

of this title because of such classification, and has elected

under paragraph (4) to have its population included with the

population of the county for the purposes of qualifying as an

urban county, except that to qualify as an urban county under

this clause, the county must -

(I) have a combined population of not less than 210,000,

excluding any metropolitan city located in the county that is

not relinquishing its metropolitan city classification,

according to the 1990 decennial census of the Bureau of the

Census of the Department of Commerce;

(II) including any metropolitan cities located in the

county, have had a decrease in population of 10,061 from 1992

to 1994, according to the estimates of the Bureau of the

Census of the Department of Commerce; and

(III) have had a Federal naval installation that was more

than 100 years old closed by action of the Base Closure and

Realignment Commission appointed for 1993 under the Base

Closure and Realignment Act of 1990, directly resulting in a

loss of employment by more than 7,000 Federal Government

civilian employees and more than 15,000 active duty military

personnel, which naval installation was located within one

mile of an enterprise community designated by the Secretary

pursuant to section 1391 of title 26, which enterprise

community has a population of not less than 20,000, according

to the 1990 decennial census of the Bureau of the Census of

the Department of Commerce (!2)

(vii)(I) has consolidated its government with one or more

municipal governments, such that within the county boundaries

there are no unincorporated areas; (II) has a population of not

less than 650,000; (III) for more than 10 years, has been

classified as a metropolitan city for purposes of allocating

and distributing funds under section 5306 of this title; and

(IV) as of October 27, 2000, has over 90 percent of the

county's population within the jurisdiction of the consolidated

government; or

(viii) notwithstanding any other provision of this section,

any county that was classified as an urban county pursuant to

subparagraph (A) for fiscal year 1999, at the option of the

county, may hereafter remain classified as an urban county for

purposes of this Act.

(E) Any county classified as an urban county pursuant to

subparagraph (A), (B), or (C) of this paragraph, and that no

longer qualifies as an urban county under such subparagraph in a

fiscal year beginning after fiscal year 1989, shall retain its

classification as an urban county for such fiscal year and the

succeeding fiscal year, except that in such succeeding fiscal

year (i) the amount of the grant to such an urban county shall be

50 percent of the amount calculated under section 5306(b) of this

title; and (ii) the remaining 50 percent shall be added to the

amount allocated under section 5306(d) of this title to the State

in which the urban county is located and the urban county shall

be eligible in such succeeding fiscal year to receive a

distribution from the State allocation under section 5306(d) of

this title as increased by this sentence.

(7) The term "nonentitlement area" means an area which is not a

metropolitan city or part of an urban county and does not include

Indian tribes.

(8) The term "population" means total resident population based

on data compiled by the United States Bureau of the Census and

referable to the same point or period in time.

(9) The term "extent of poverty" means the number of persons

whose incomes are below the poverty level. Poverty levels shall

be determined by the Secretary pursuant to criteria provided by

the Office of Management and Budget, taking into account and

making adjustments, if feasible and appropriate and in the sole

discretion of the Secretary, for regional or area variations in

income and cost of living, and shall be based on data referable

to the same point or period in time.

(10) The term "extent of housing overcrowding" means the number

of housing units with 1.01 or more persons per room based on data

compiled by the United States Bureau of the Census and referable

to the same point or period in time.

(11) The term "age of housing" means the number of existing

housing units constructed in 1939 or earlier based on data

compiled by the United States Bureau of the Census and referable

to the same point or period in time.

(12) The term "extent of growth lag" means the number of

persons who would have been residents in a metropolitan city or

urban county, in excess of the current population of such

metropolitan city or urban county, if such metropolitan city or

urban county had had a population growth rate between 1960 and

the date of the most recent population count referable to the

same point or period in time equal to the population growth rate

for such period of all metropolitan cities. Where the boundaries

for a metropolitan city or urban county used for the 1980 census

have changed as a result of annexation, the current population

used to compute extent of growth lag shall be adjusted by

multiplying the current population by the ratio of the population

based on the 1980 census within the boundaries used for the 1980

census to the population based on the 1980 census within the

current boundaries.

(13) The term "housing stock" means the number of existing

housing units based on data compiled by the United States Bureau

of the Census and referable to the same point or period in time.

(14) The term "adjustment factor" means the ratio between the

age of housing in the metropolitan city or urban county and the

predicted age of housing in such city or county.

(15) The term "predicted age of housing" means the arithmetic

product of the housing stock in the metropolitan city or urban

county multiplied times the ratio between the age of housing in

all metropolitan areas and the housing stock in all metropolitan

areas.

(16) The term "adjusted age of housing" means the arithmetic

product of the age of housing in the metropolitan city or urban

county multiplied times the adjustment factor.

(17) The term "Indian tribe" means any Indian tribe, band,

group, and nation, including Alaska Indians, Aleuts, and Eskimos,

and any Alaskan Native Village, of the United States, which is

considered an eligible recipient under the Indian

Self-Determination and Education Assistance Act (Public Law

93-638) [25 U.S.C. 450 et seq.] or was considered an eligible

recipient under chapter 67 of title 31 prior to the repeal of

such chapter.

(18) The term "Federal grant-in-aid program" means a program of

Federal financial assistance other than loans and other than the

assistance provided by this chapter.

(19) The term "Secretary" means the Secretary of Housing and

Urban Development.

(20)(A) The terms "persons of low and moderate income" and

"low- and moderate-income persons" mean families and individuals

whose incomes do not exceed 80 percent of the median income of

the area involved, as determined by the Secretary with

adjustments for smaller and larger families. The term "persons of

low income" means families and individuals whose incomes do not

exceed 50 percent of the median income of the area involved, as

determined by the Secretary with adjustments for smaller and

larger families. The term "persons of moderate income" means

families and individuals whose incomes exceed 50 percent, but do

not exceed 80 percent, of the median income of the area involved,

as determined by the Secretary with adjustments for smaller and

larger families. For purposes of such terms, the area involved

shall be determined in the same manner as such area is determined

for purposes of assistance under section 1437f of this title.

(B) The Secretary may establish percentages of median income

for any area that are higher or lower than the percentages set

forth in subparagraph (A), if the Secretary finds such variations

to be necessary because of unusually high or low family incomes

in such area.

(21) The term "buildings for the general conduct of government"

means city halls, county administrative buildings, State capitol

or office buildings, or other facilities in which the legislative

or general administrative affairs of the government are

conducted. Such term does not include such facilities as

neighborhood service centers or special purpose buildings located

in low- and moderate-income areas that house various

nonlegislative functions or services provided by government at

decentralized locations.

(22) The term "microenterprise" means a commercial enterprise

that has 5 or fewer employees, 1 or more of whom owns the

enterprise.

(23) The term "small business" means a business that meets the

criteria set forth in section 632(a) of title 15.

(b) Basis and modification of definitions

Where appropriate, the definitions in subsection (a) of this

section shall be based, with respect to any fiscal year, on the

most recent data compiled by the United States Bureau of the Census

and the latest published reports of the Office of Management and

Budget available ninety days prior to the beginning of such fiscal

year. The Secretary may by regulation change or otherwise modify

the meaning of the terms defined in subsection (a) of this section

in order to reflect any technical change or modification thereof

made subsequent to such date by the United States Bureau of the

Census or the Office of Management and Budget.

One or more public agencies, including existing local public

agencies, may be designated by the chief executive officer of a

State or a unit of general local government to undertake activities

assisted under this chapter.

(d) Local governments, inclusion in urban county population

With respect to program years beginning with the program year for

which grants are made available from amounts appropriated for

fiscal year 1982 under section 5303 of this title, the population

of any unit of general local government which is included in that

of an urban county as provided in subparagraph (A)(ii) or (D) of

subsection (a)(6) of this section shall be included in the

population of such urban county for three program years beginning

with the program year in which its population was first so included

and shall not otherwise be eligible for a grant under section 5306

of this title as a separate entity, unless the urban county does

not receive a grant for any year during such three-year period.

(e) Exclusion of local governments from urban county population;

notification of election

Any county seeking qualification as an urban county, including

any urban county seeking to continue such qualification, shall

notify, as provided in this subsection, each unit of general local

government, which is included therein and is eligible to elect to

have its population excluded from that of an urban county under

subsection (a)(6)(A)(ii)(I)(a) of this section, of its opportunity

to make such an election. Such notification shall, at a time and in

a manner prescribed by the Secretary, be provided so as to provide

a reasonable period for response prior to the period for which such

qualification is sought. The population of any unit of general

local government which is provided such notification and which does

not inform, at a time and in a manner prescribed by the Secretary,

the county of its election to exclude its population from that of

the county shall, if the county qualifies as an urban county, be

included in the population of such urban county as provided in

subsection (d) of this section.

-SOURCE-

(Pub. L. 93-383, title I, Sec. 102, Aug. 22, 1974, 88 Stat. 635;

Pub. L. 95-128, title I, Sec. 102, Oct. 12, 1977, 91 Stat. 1111;

Pub. L. 96-153, title I, Sec. 103(f), Dec. 21, 1979, 93 Stat. 1102;

Pub. L. 96-399, title I, Secs. 101(a), (b)(1), (c), 111(a), Oct. 8,

1980, 94 Stat. 1614, 1620; Pub. L. 97-35, title III, Secs.

309(a)-(c), 310, Aug. 13, 1981, 95 Stat. 396, 397; Pub. L. 97-289,

Sec. 5, Oct. 6, 1982, 96 Stat. 1231; Pub. L. 98-181, title I, Sec.

102, Nov. 30, 1983, 97 Stat. 1159; Pub. L. 98-479, title I, Sec.

101(a)(1)-(4), title II, Sec. 203(l)(1), Oct. 17, 1984, 98 Stat.

2218, 2219, 2231; Pub. L. 99-120, Sec. 5(a), Oct. 8, 1985, 99 Stat.

504; Pub. L. 99-156, Sec. 5(a), Nov. 15, 1985, 99 Stat. 816; Pub.

L. 99-219, Sec. 5(a), Dec. 26, 1985, 99 Stat. 1731; Pub. L. 99-267,

Sec. 5(a), Mar. 27, 1986, 100 Stat. 74; Pub. L. 99-272, title III,

Sec. 3011(a), title XIV, Sec. 14001(b)(3), Apr. 7, 1986, 100 Stat.

106, 328; Pub. L. 99-289, Sec. 1(b), May 2, 1986, 100 Stat. 412;

Pub. L. 99-345, Sec. 1, June 24, 1986, 100 Stat. 673; Pub. L.

99-430, Sept. 30, 1986, 100 Stat. 986; Pub. L. 100-77, title IV,

Sec. 442, July 22, 1987, 101 Stat. 509; Pub. L. 100-122, Sec. 1,

Sept. 30, 1987, 101 Stat. 793; Pub. L. 100-154, Nov. 5, 1987, 101

Stat. 890; Pub. L. 100-170, Nov. 17, 1987, 101 Stat. 914; Pub. L.

100-179, Dec. 3, 1987, 101 Stat. 1018; Pub. L. 100-200, Dec. 21,

1987, 101 Stat. 1327; Pub. L. 100-202, Sec. 101(f) [title I, Sec.

101], Dec. 22, 1987, 101 Stat. 1329-187, 1329-193; Pub. L. 100-242,

title V, Sec. 503, Feb. 5, 1988, 101 Stat. 1923; Pub. L. 100-628,

title X, Secs. 1081, 1082(a), Nov. 7, 1988, 102 Stat. 3276, 3277;

Pub. L. 101-235, title VII, Sec. 702(a), Dec. 15, 1989, 103 Stat.

2056; Pub. L. 101-507, title II, Nov. 5, 1990, 104 Stat. 1370; Pub.

L. 101-625, title IX, Secs. 903(a)-(c)(2), 904(a), Nov. 28, 1990,

104 Stat. 4385-4387; Pub. L. 102-550, title VIII, Secs. 802(a),

803, 807(c)(2), Oct. 28, 1992, 106 Stat. 3845, 3849; Pub. L.

104-204, title II, Sec. 216, Sept. 26, 1996, 110 Stat. 2904; Pub.

L. 106-377, Sec. 1(a)(1) [title II, Sec. 217], Oct. 27, 2000, 114

Stat. 1441, 1441A-28.)

-REFTEXT-

REFERENCES IN TEXT

Sections 4512 and 4513 of this title, referred to in subsec.

(a)(1), were repealed by Pub. L. 98-181, title IV, Sec. 474(e),

Nov. 30, 1983, 97 Stat. 1239.

The Housing and Urban Development Act of 1968, referred to in

subsec. (a)(1), is Pub. L. 90-448, Aug. 1, 1968, 82 Stat. 476, as

amended. Title IV of the Housing and Urban Development Act of 1968,

which was classified principally to chapter 48 (Sec. 3901 et seq.)

of this title, was repealed, with certain exceptions which were

omitted from the Code, by Pub. L. 98-181, title IV, Sec. 474(e),

Nov. 30, 1983, 97 Stat. 1239. For complete classification of this

Act to the Code, see Short Title of 1968 Amendment note set out

under section 1701 of Title 12, Banks and Banking, and Tables.

Section 608 of the Military Construction Authorization Act, 1975,

referred to in subsec. (a)(6)(D)(v)(II), is not classified to the

Code.

The Base Closure and Realignment Act of 1990, referred to in

subsec. (a)(6)(D)(vi)(III), probably means the Defense Base Closure

and Realignment Act of 1990, which is part A of title XXIX of div.

B of Pub. L. 101-510, Nov. 5, 1990, 104 Stat. 1808, as amended, and

which is set out as a note under section 2687 of Title 10, Armed

Forces. For complete classification of this Act to the Code, see

Tables.

This Act, referred to in subsec. (a)(6)(D)(viii), is Pub. L.

93-383, Aug. 22, 1974, 88 Stat. 633, as amended, known as the

Housing and Community Development Act of 1974. For complete

classification of this Act to the Code, see Short Title note set

out under section 5301 of this title and Tables.

The Indian Self-Determination and Education Assistance Act,

referred to in subsec. (a)(17), is Pub. L. 93-638, Jan. 4, 1975, 88

Stat. 2203, as amended, which is classified principally to

subchapter II (Sec. 450 et seq.) of chapter 14 of Title 25,

Indians. For complete classification of this Act to the Code, see

Short Title note set out under section 450 of Title 25 and Tables.

Chapter 67 of title 31, referred to in subsec. (a)(17), was

repealed by Pub. L. 99-272, title XIV, Sec. 14001(a)(1), Apr. 7,

1986, 100 Stat. 327.

-MISC1-

AMENDMENTS

2000 - Subsec. (a)(6)(D)(vii), (viii). Pub. L. 106-377 added cls.

(vii) and (viii).

1996 - Subsec. (a)(6)(D)(vi). Pub. L. 104-204 added cl. (vi).

1992 - Subsec. (a)(1). Pub. L. 102-550, Sec. 802(a), substituted

"that, except as provided in section 5306(d)(4) of this title, is

recognized by the Secretary" for "recognized by the Secretary".

Subsec. (a)(6)(D)(v). Pub. L. 102-550, Sec. 803, added cl. (v).

Subsec. (a)(22), (23). Pub. L. 102-550, Sec. 807(c)(2), added

pars. (22) and (23).

1990 - Subsec. (a)(4). Pub. L. 101-625, Sec. 903(c)(1), inserted

at end "Any unit of general local government that was classified as

a metropolitan city in any fiscal year, may, upon submission of

written notification to the Secretary, relinquish such

classification for all purposes under this chapter if it elects to

have its population included with the population of a county for

purposes of qualifying for assistance (for such following fiscal

year) under section 5306 of this title as an urban county under

paragraph (6)(D). Any metropolitan city that elects to relinquish

its classification under the preceding sentence and whose port

authority shipped at least 35,000,000 tons of cargo in 1988, of

which iron ore made up at least half, shall not receive, in any

fiscal year, a total amount of assistance under section 5306 of

this title from the urban county recipient that is less than the

city would have received if it had not relinquished the

classification under the preceding sentence."

Pub. L. 101-625, Sec. 903(a), substituted "Any city that was

classified as a metropolitan city for at least 2 years pursuant to

the first sentence of this paragraph shall remain classified as a

metropolitan city." for "In order to permit an orderly transition

of each city losing its classification as a metropolitan city by

reason of a decrease in population or revisions in the designation

of metropolitan areas or central cities, any city classified as or

deemed by law to be a metropolitan city for purposes of assistance

under any section of this chapter for fiscal year 1983 or any

subsequent fiscal year shall retain such qualification for purposes

of receiving such assistance through September 30, 1989.", struck

out "for fiscal year 1988 or 1989" before period at end of fourth

sentence, and in last sentence struck out "the first or second

sentence of" before "this paragraph" and "under such first or

second sentence" after "qualifies as a metropolitan city".

Subsec. (a)(6)(B). Pub. L. 101-625, Sec. 903(b), amended subpar.

(B) generally. Prior to amendment, subpar. (B) read as follows: "In

order to permit an orderly transition of each county losing its

classification as an urban county by reason of a decrease in

population, any county classified as or deemed to be an urban

county under this paragraph for purposes of receiving assistance

under any section of this chapter for fiscal year 1983 or

subsequent years shall retain such qualification for purposes of

receiving such assistance through September 30, 1989, or for such

longer period covered by a cooperation agreement entered into

during fiscal year 1984, except that the provisions of this

subparagraph shall not apply with respect to any county losing its

classification as an urban county by reason of the election of any

unit of general local government included in such county to have

its population excluded under clause (ii)(I)(a) of subparagraph (A)

or to not renew a cooperation agreement under clause (ii)(I)(b) of

such subparagraph."

Subsec. (a)(6)(D)(iv). Pub. L. 101-625, Sec. 903(c)(2), added cl.

(iv).

Subsec. (a)(12). Pub. L. 101-507 and Pub. L. 101-625, Sec.

904(a), amended par. (12) identically, inserting at end "Where the

boundaries for a metropolitan city or urban county used for the

1980 census have changed as a result of annexation, the current

population used to compute extent of growth lag shall be adjusted

by multiplying the current population by the ratio of the

population based on the 1980 census within the boundaries used for

the 1980 census to the population based on the 1980 census within

the current boundaries."

1989 - Subsec. (a)(7). Pub. L. 101-235 inserted before period at

end "and does not include Indian tribes".

1988 - Subsec. (a)(4). Pub. L. 100-628, Sec. 1081(a)(1),

substituted "a decrease in population" for "the population data of

the 1980 decennial census" and inserted "or any subsequent fiscal

year" after "1983" in second sentence.

Pub. L. 100-628, Sec. 1081(a)(2), directed that subsec. (a)(4) of

this section as similarly amended first by Pub. L. 100-202 [see

1987 Amendment note below] and later by section 503(a)(2) of Pub.

L. 100-242 [see below] is amended to read as if the amendment by

Pub. L. 100-242 had not been enacted.

Pub. L. 100-242, Sec. 503(a)(1), substituted "September 30, 1989"

for "March 15, 1988".

Pub. L. 100-242, Sec. 503(a)(2), made amendment identical to

amendment by Pub. L. 100-202. See 1987 Amendment note below.

Pub. L. 100-242, Sec. 503(a)(3), inserted at end "Any city

classified as a metropolitan city pursuant to the first or second

sentence of this paragraph, and that no longer qualifies as a

metropolitan city under such first or second sentence in a fiscal

year beginning after fiscal year 1989, shall retain its

classification as a metropolitan city for such fiscal year and the

succeeding fiscal year, except that in such succeeding fiscal year

(A) the amount of the grant to such city shall be 50 percent of the

amount calculated under section 5306(b) of this title; and (B) the

remaining 50 percent shall be added to the amount allocated under

section 5306(d) of this title to the State in which the city is

located and the city shall be eligible in such succeeding fiscal

year to receive a distribution from the State allocation under

section 5306(d) of this title as increased by this sentence."

Subsec. (a)(6). Pub. L. 100-628, Sec. 1081(b), substituted a

semicolon for last comma in cls. (i) and (ii)(I) of subpar. (A).

Pub. L. 100-242, Sec. 503(b), amended par. (6) generally. Prior

to amendment, par. (6) read as follows: "The term 'urban county'

means any county within a metropolitan area which (A) is authorized

under State law to undertake essential community development and

housing assistance activities in its unincorporated areas, if any,

which are not units of general local government, and either (B) has

a combined population of two hundred thousand or more (excluding

the population of metropolitan cities therein) in such

unincorporated areas and in its included units of general local

government (i) in which it has authority to undertake essential

community development and housing assistance activities and which

do not elect to have their population excluded or (ii) with which

it has entered into cooperation agreements to undertake or to

assist in the undertaking of essential community development and

housing assistance activities or (C) has a population in excess of

one hundred thousand, a population density of at least five

thousand persons per square mile, and contains within its

boundaries no incorporated places as defined by the United States

Bureau of Census. In order to permit an orderly transition of each

county losing its classification as an urban county by reason of a

decrease in population, any county classified as or deemed to be an

urban county under this paragraph for purposes of receiving

assistance under any section of this chapter for fiscal year 1983

or 1984 shall retain such qualification for purposes of receiving

such assistance through March 15, 1988, or for such longer period

covered by a cooperation agreement entered into during fiscal year

1984, except that the provisions of this sentence shall not apply

with respect to any county losing its classification as an urban

county by reason of the election of any unit of general local

government included in such county to have its population excluded

under clause (B)(i) of the first sentence or to not renew a

cooperation agreement under clause (B)(ii) of such sentence.

Notwithstanding the combined population amount set forth in clause

(B) of the first sentence, a county shall also qualify as an urban

county for purposes of assistance under section 5306 of this title

if such county (A) complies with all other requirements set forth

in the first sentence; (B) has, according to the most recent

available decennial census data, a combined population between

190,000 and 199,999, inclusive, (excluding the population of

metropolitan cities therein) in all its unincorporated areas that

are not units of general local government and in all units of

general local government located within such county; (C) had a

population growth rate of not less than 15 percent during the most

recent 10-year period measured by applicable censuses; and (D) has

submitted data satisfactory to the Secretary that it has a combined

population of not less than 200,000 (excluding the population of

metropolitan cities therein) in all its unincorporated areas that

are not units of general local government and in all units of

general local government located within such county."

Subsec. (d). Pub. L. 100-628, Sec. 1082(a)(1), substituted

"subparagraph (A)(ii) or (D) of subsection (a)(6)" for "subsection

(a)(6)(B)".

Pub. L. 100-242, Sec. 503(c), struck out at end "During any such

three-year period, the population of any unit of general local

government which is not included in that of the urban county for

the first year shall not be eligible for such inclusion in the

second or third year, except where the unit of general local

government loses the designation of metropolitan city."

Subsec. (e). Pub. L. 100-628, Sec. 1082(a)(2), substituted

"subsection (a)(6)(A)(ii)(I)(a)" for "subsection (a)(6)(B)(i)".

1987 - Subsec. (a)(4). Pub. L. 100-202 inserted third sentence

and struck out former third sentence which read as follows: "Any

unit of general local government that becomes eligible to be

classified as a metropolitan city for fiscal year 1984 or 1985 may,

upon submission of written notification to the Secretary, defer its

classification as a metropolitan city for all purposes under this

chapter for fiscal years 1984, 1985, and 1986 if such unit of

general local government elects to have its population included in

an urban county under subsection (d) of this section."

Pub. L. 100-200 substituted "March 15, 1988" for "December 16,

1987".

Pub. L. 100-179 substituted "December 16, 1987" for "December 2,

1987".

Pub. L. 100-170 substituted "December 2, 1987" for "November 15,

1987".

Pub. L. 100-154 substituted "November 15, 1987" for "October 31,

1987".

Pub. L. 100-122 substituted "October 31, 1987" for "September 30,

1987".

Subsec. (a)(6). Pub. L. 100-200 substituted "March 15, 1988" for

"December 16, 1987".

Pub. L. 100-179 substituted "December 16, 1987" for "December 2,

1987".

Pub. L. 100-170 substituted "December 2, 1987" for "November 15,

1987".

Pub. L. 100-154 substituted "November 15, 1987" for "October 31,

1987".

Pub. L. 100-122 substituted "October 31, 1987" for "September 30,

1987".

Pub. L. 100-77 inserted "or 1984".

1986 - Subsec. (a)(4), (6). Pub. L. 99-430 substituted "September

30, 1987" for "September 30, 1986".

Pub. L. 99-345 substituted "September 30, 1986" for "June 6,

1986".

Pub. L. 99-289 substituted "June 6, 1986" for "April 30, 1986".

Pub. L. 99-272, Sec. 3011(a), directed amendment of pars. (4) and

(6) identical to Pub. L. 99-216 substituting "March 17, 1986" for

"December 15, 1985".

Pub. L. 99-267 substituted "April 30, 1986" for "March 17, 1986".

Subsec. (a)(17). Pub. L. 99-272, Sec. 14001(b)(3), substituted

"or was considered an eligible recipient under chapter 67 of title

31 prior to the repeal of such chapter" for "or under chapter 67 of

title 31".

1985 - Subsec. (a)(4). Pub. L. 99-219, Sec. 5(a)(1), substituted

"March 17, 1986" for "December 15, 1985".

Pub. L. 99-156, Sec. 5(a)(1), substituted "December 15, 1985" for

"November 14, 1985".

Pub. L. 99-120, Sec. 5(a)(1), substituted "through November 14,

1985" for "for fiscal years 1984 and 1985".

Subsec. (a)(6). Pub. L. 99-219, Sec. 5(a)(2), substituted "March

17, 1986" for "December 15, 1985".

Pub. L. 99-156, Sec. 5(a)(2), substituted "December 15, 1985" for

"November 14, 1985".

Pub. L. 99-120, Sec. 5(a)(2), substituted "through November 14,

1985" for "for fiscal years 1984 and 1985".

1984 - Subsec. (a)(4). Pub. L. 98-479, Sec. 101(a)(1), in last

sentence, struck out "while its population is included in an urban

county for such fiscal year" after "fiscal year 1984 or 1985", and

substituted "elects" for "continues" and "an" for "such" before

"urban county".

Subsec. (a)(6). Pub. L. 98-479, Sec. 101(a)(2), inserted ",

except that the provisions of this sentence shall not apply with

respect to any county losing its classification as an urban county

by reason of the election of any unit of general local government

included in such county to have its population excluded under

clause (B)(i) of the first sentence or to not renew a cooperation

agreement under clause (B)(ii) of such sentence" at end of second

sentence, ", (excluding the population of metropolitan cities

therein) in all its unincorporated areas that are not units of

general local government and in all units of general local

government located within such county" at end of cl. (B) in last

sentence, and "(excluding the population of metropolitan cities

therein) in all its unincorporated areas that are not units of

general local government and in all units of general local

government located within such county" at end of cl. (D) in last

sentence.

Subsec. (a)(17). Pub. L. 98-479, Sec. 203(l)(1), substituted

"chapter 67 of title 31" for "the State and Local Fiscal Assistance

Act of 1972 (Public Law 92-512)".

Subsec. (a)(20). Pub. L. 98-479, Sec. 101(a)(3), in amending par.

(20) generally, designated existing provisions as subpar. (A) and

substituted "mean families and individuals whose incomes do not

exceed 80 percent of the median income of the area involved, as

determined by the Secretary with adjustments for smaller and larger

families" for "have the meaning given the term 'lower income

families' in section 1437a(b)(2) of this title", substituted "whose

incomes do not exceed 50 percent of the median income of the area

involved, as determined by the Secretary with adjustments for

smaller and larger families" for "has the meaning given the term

'very low-income families' in such section", inserted "The term

'persons of moderate income' means families and individuals whose

incomes exceed 50 percent, but do not exceed 80 percent, of the

median income of the area involved, as determined by the Secretary

with adjustments for smaller and larger families", and added

subpar. (B).

Subsec. (a)(21). Pub. L. 98-479, Sec. 101(a)(4), substituted

"capitol" for "capital", and added a comma after "or office

buildings".

1983 - Subsec. (a)(3). Pub. L. 98-181, Sec. 102(d), substituted

"Office of Management and Budget" for "Department of Commerce".

Subsec. (a)(4). Pub. L. 98-181, Sec. 102(d), substituted "Office

of Management and Budget" for "Department of Commerce".

Pub. L. 98-181, Sec. 102(a), substituted provision authorizing

retention of classification as metropolitan cities through fiscal

year 1985 of any cities classified as deemed to be such for

purposes of assistance for fiscal year 1983 for provision that any

city which had been classified as a metropolitan city under this

paragraph because the population of such city exceeded fifty

thousand would be so classified until the decennial census

indicated that the population of such city was less than fifty

thousand or until September 30, 1983, whichever was later, and

inserted provision permitting any units of general local government

which become eligible to be classified as metropolitan cities for

fiscal years 1984 and 1985 while their population is included in an

urban county for such fiscal year to defer such classification

through fiscal year 1986 if such unit of general local government

continues to have its population included in such urban county

under subsec. (d) of this section.

Subsec. (a)(6). Pub. L. 98-181, Sec. 102(b), substituted

provision permitting retention of classification as urban counties

through fiscal year 1985 of any counties classified or deemed to be

such for purposes of assistance under this chapter for fiscal year

1983, and allowing a county to qualify as an urban county upon

meeting certain conditions despite failing to meet the requirements

of cl. (B) of the first sentence for provision that any urban

county qualifying as such in fiscal year 1981 which did not meet

the population requirements of cl. (B) of the first sentence would

be considered to meet such requirements through Sept. 30, 1983, and

would not be subject to subsec. (d) of this section through such

date.

Subsec. (a)(9). Pub. L. 98-181, Sec. 102(d), substituted "Office

of Management and Budget" for "Department of Commerce".

Subsec. (a)(20), (21). Pub. L. 98-181, Sec. 102(c), added pars.

(20) and (21).

Subsec. (b). Pub. L. 98-181, Sec. 102(d), substituted "Office of

Management and Budget" for "Department of Commerce" in two places.

Pub. L. 98-181, Sec. 102(e), struck out provisions that no data

from the 1980 Decennial Census, except those relating to population

and poverty, would be taken into account for purposes of sections

5306 and 5318 of this title and that no revision to the criteria

for establishing a metropolitan area or defining a central city of

such an area published after January 1, 1983, would be taken into

account for purposes of this chapter, except that any area or city

which would newly qualify as a metropolitan area or central city of

such an area by reason of such revision would be so qualified.

Subsec. (d). Pub. L. 98-181, Sec. 102(f), inserted exception

where the unit of general local government loses the designation of

metropolitan city.

1982 - Subsec. (a)(4). Pub. L. 97-289, Sec. 5(1), (2),

substituted "under this paragraph because the population of such

city exceeded fifty thousand shall" for "under clause (B) of this

paragraph shall continue to", and substituted "1983" for "1982".

Subsec. (a)(6). Pub. L. 97-289, Sec. 5(3)(A)-(C), substituted

"before October 1, 1983," for "for fiscal year 1982" after

"population of which", "through September 30, 1983," for "for

fiscal year 1982" after "requirements of such clause", and "through

such date" for "that fiscal year".

1981 - Subsec. (a). Pub. L. 97-35, Secs. 309(a), 310, in par. (4)

inserted applicability of Sept. 30, 1982, date to provisions, in

par. (6) inserted provisions relating to urban county qualifying in

fiscal year 1981, added par. (7), struck out pars. (18) and (19),

which defined "program period" and "Community Development Program",

respectively, and redesignated former pars. (7) to (17) and (20) as

(8) to (18) and (19), respectively.

Subsec. (c). Pub. L. 97-35, Sec. 309(b), substituted "activities

assisted under this chapter" for "a Community Development Program

in whole or in part".

Subsec. (d). Pub. L. 97-35, Sec. 309(c), substituted provisions

relating to nonreceipt of a grant, for provisions relating to

disapproval or withdrawal of an application, and struck out

"(a)(1)" after "5303".

1980 - Subsec. (a)(3), (4), (8). Pub. L. 96-399, Sec. 111(a),

substituted "Department of Commerce" for "Office of Management and

Budget" wherever appearing.

Subsec. (b). Pub. L. 96-399, Secs. 101(a), 111(a), inserted

provisions relating to prohibition of use, in fiscal years 1981 to

1983, of data from the 1980 Decennial Census, except those relating

to population and poverty, for purposes of section 5318 and 5306,

and prohibition on revision to criteria for establishment of a

metropolitan area or definition of a central city, except for those

newly qualifying, and substituted "Department of Commerce" for

"Office of Management and Budget", wherever appearing.

Subsec. (d). Pub. L. 96-399, Sec. 101(b)(1), substituted

provisions relating to inclusion of the population of any unit of

general local government in the population of such urban county for

three program years, such unit to be ineligible for a grant under

section 5306 as a separate entity, and prohibiting eligibility for

second and third years if not included for the first year, for

provisions relating to notification of units of general local

government of their opportunity to exclude their populations from

such urban county, and inclusion in such urban county unless

exclusion is elected by notification.

Subsec. (e). Pub. L. 96-399, Sec. 101(c), added subsec. (e).

1979 - Subsec. (a)(1). Pub. L. 96-153, inserted reference to

Northern Mariana Islands in definition of unit of general local

government.

1977 - Subsec. (a)(1). Pub. L. 95-128, Sec. 102(a)(1), excluded

from term "unit of general local government" Indian tribes, bands,

groups, and nations, including Alaska Indians, Aleuts, and Eskimos

of the United States.

Subsec. (a)(4). Pub. L. 95-128, Sec. 102(a)(2), clarified term

"metropolitan city" to continue the classification of any city

classified as a metropolitan city under cl. (B) as such city until

the decennial census indicates the population of such city is less

than fifty thousand.

Subsec. (a)(5). Pub. L. 95-128, Sec. 102(a)(3), limited the

meaning of "city" to a town or township without any incorporated

places within its boundaries which have entered into cooperation

agreements with such town or township to undertake or to assist in

the undertaking of essential community development and housing

assistance activities.

Subsec. (a)(6). Pub. L. 95-128, Sec. 102(a)(4), inserted "either"

before "(B)" and added cl. (C).

Subsec. (a)(10) to (20). Pub. L. 95-128, Sec. 102(a)(5), (6),

added pars. (10) to (16) and redesignated former pars. (10) to (13)

as (17) to (20).

Subsec. (d). Pub. L. 95-128, Sec. 102(b), added subsec. (d).

EFFECTIVE DATE OF 1990 AMENDMENTS

Section 903(c)(3) of Pub. L. 101-625 provided that: "The

amendments made by this subsection [amending this section] shall

apply with respect to assistance under title I of the Housing and

Community Development Act of 1974 [this chapter] for fiscal year

1991 and any fiscal year thereafter."

Section 904(b) of Pub. L. 101-625 provided that: "The amendment

made by subsection (a) [amending this section] shall apply to the

first allocation of assistance under section 106 [section 5306 of

this title] that is made after the date of the enactment of this

Act [Nov. 28, 1990] and to each allocation thereafter."

Title II of Pub. L. 101-507, 104 Stat. 1370, provided in part

that: "The amendment made by this paragraph [amending this section]

shall apply to the first allocation of assistance under section 106

[section 5306 of this title] that is made after the date of the

enactment of this Act [Nov. 5, 1990] and to each allocation

thereafter."

EFFECTIVE DATE OF 1989 AMENDMENT

Amendment by Pub. L. 101-235 applicable to amounts approved in

any appropriation Act under section 5303 of this title for fiscal

year 1990 and each fiscal year thereafter, see section 702(e) of

Pub. L. 101-235, as amended, set out as a note under section 5306

of this title.

EFFECTIVE DATE OF 1986 AMENDMENT

Amendment by section 14001(b)(3) of Pub. L. 99-272 effective Oct.

18, 1986, see section 14001(e) of Pub. L. 99-272.

EFFECTIVE DATE OF 1983 AMENDMENT

Amendment by Pub. L. 98-181 applicable only to funds available

for fiscal year 1984 and thereafter, see section 110(b) of Pub. L.

98-181, as amended, set out as a note under section 5316 of this

title.

EFFECTIVE DATE OF 1981 AMENDMENT

Amendment by Pub. L. 97-35 effective Oct. 1, 1981, see section

371 of Pub. L. 97-35, set out as an Effective Date note under

section 3701 of Title 12, Banks and Banking.

EFFECTIVE DATE OF 1980 AMENDMENT

Section 101(b)(2) of Pub. L. 96-399 provided that: "The amendment

made by paragraph (1) [amending this section] shall take effect on

October 1, 1981."

EFFECTIVE DATE OF 1977 AMENDMENT

Amendment by Pub. L. 95-128 effective Oct. 1, 1977, see section

114 of Pub. L. 95-128, set out as a note under section 5301 of this

title.

-TRANS-

TERMINATION OF TRUST TERRITORY OF THE PACIFIC ISLANDS

For termination of Trust Territory of the Pacific Islands, see

note set out preceding section 1681 of Title 48, Territories and

Insular Possessions.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1479, 5306, 5318, 5318a,

11332, 11371, 11382, 11392, 11403g, 12704, 12899f, 12902 of this

title; title 12 sections 1715z-11a, 1715z-22, 1834b.

-FOOTNOTE-

(!1) See References in Text note below.

(!2) So in original. Probably should be followed by a semicolon.

-End-

-CITE-

42 USC Sec. 5303 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 69 - COMMUNITY DEVELOPMENT

-HEAD-

Sec. 5303. Grants to States, units of general local government and

Indian tribes; authorizations

-STATUTE-

The Secretary is authorized to make grants to States, units of

general local government, and Indian tribes to carry out activities

in accordance with the provisions of this chapter. For purposes of

assistance under section 5306 of this title, there are authorized

to be appropriated $4,000,000,000 for fiscal year 1993 and

$4,168,000,000 for fiscal year 1994. Sums authorized pursuant to

this section shall remain available until expended.

-SOURCE-

(Pub. L. 93-383, title I, Sec. 103, Aug. 22, 1974, 88 Stat. 637;

Pub. L. 94-375, Sec. 15(a), Aug. 3, 1976, 90 Stat. 1076; Pub. L.

95-128, title I, Sec. 103, Oct. 12, 1977, 91 Stat. 1113; Pub. L.

96-153, title I, Sec. 103(a), (b), Dec. 21, 1979, 93 Stat. 1101,

1102; Pub. L. 96-399, title I, Secs. 106, 111(b), Oct. 8, 1980, 94

Stat. 1618, 1621; Pub. L. 97-35, title III, Sec. 301, Aug. 13,

1981, 95 Stat. 384; Pub. L. 98-181, title I, Sec. 103, Nov. 30,

1983, 97 Stat. 1161; Pub. L. 100-242, title V, Sec. 501(a), Feb. 5,

1988, 101 Stat. 1922; Pub. L. 101-625, title IX, Sec. 901(a), Nov.

28, 1990, 104 Stat. 4384; Pub. L. 102-550, title VIII, Sec. 801(a),

Oct. 28, 1992, 106 Stat. 3843.)

-MISC1-

AMENDMENTS

1992 - Pub. L. 102-550 substituted provisions authorizing

appropriations of $4,000,000,000 for fiscal year 1993 and

$4,168,000,000 for fiscal year 1994 for provisions authorizing

appropriations of $3,137,000,000 for fiscal year 1991 and

$3,272,000,000 for fiscal year 1992, and struck out provisions

requiring Secretary to make available, to extent approved in

appropriation Acts (1) not less than $3,000,000 in each of fiscal

years 1991 and 1992 for assistance to economically disadvantaged

and minority students participating in community development work

study programs and enrolled in full-time programs in community and

economic development, community planning, or community management,

(2) not less than $6,500,000 for each of fiscal years 1991 and 1992

for historically black colleges, (3) not less than $7,000,000 for

each of fiscal years 1991 and 1992 for Guam, the Virgin Islands,

American Samoa, the Northern Mariana Islands, and the Trust

Territory of the Pacific Islands, and (4) not less than $500,000 in

fiscal year 1991 to demonstrate feasibility of database system and

computer mapping tool for compliance, programming, and evaluation

of community development block grants.

1990 - Pub. L. 101-625 substituted provisions authorizing

appropriations for purposes of assistance under section 5306 of

this title of $3,137,000,000 for fiscal year 1991 and

$3,272,000,000 for fiscal year 1992, along with provisions

mandating certain minimum allotments of such appropriations as

specified in pars. (1) to (4) for provisions authorizing

appropriations for the purposes of assistance under sections 5306

and 5307 of this title of $3,000,000,000 for fiscal year 1988, and

$3,000,000,000 for fiscal year 1989.

1988 - Pub. L. 100-242 amended second sentence generally,

substituting "$3,000,000,000 for fiscal year 1988, and

$3,000,000,000 for fiscal year 1989" for "not to exceed

$3,468,000,000 for each of the fiscal years 1984, 1985, and 1986".

1983 - Pub. L. 98-181 substituted provisions authorizing

appropriations for purposes of assistance under sections 5306 and

5307 of this title of not to exceed $3,468,000,000 for each of

fiscal years 1984, 1985, and 1986 for provision which had

authorized appropriations of not to exceed $4,166,000,000 for each

of fiscal years 1982 and 1983.

1981 - Pub. L. 97-35 completely restructured and revised

provisions and substituted provisions relating to authorization of

appropriations for fiscal years 1982 and 1983 to carry out

activities under this chapter, for provisions relating to

authorization of appropriations for fiscal years 1981 and 1982 to

finance Community Development Programs, additional authorizations,

supplemental assistance, and availability of funds.

1980 - Subsec. (a)(1). Pub. L. 96-399, Sec. 106(a), substituted

provisions authorizing appropriations not to exceed $3,810,000,000,

$3,960,000,000, and $4,110,000,000 for fiscal years 1981, 1982 and

1983, respectively, for provisions authorizing appropriations not

to exceed $3,500,000,000, $3,650,000,000, and $3,800,000,000 for

fiscal years 1978, 1979, and 1980, respectively.

Subsec. (a)(2). Pub. L. 96-399, Sec. 106(b), substituted

"$275,000,000 for the fiscal year 1981 shall be added to the amount

available for allocation under section 5306(c) of this title" for

"$50,000,000 for each of the fiscal years 1975 and 1976,

$200,000,000 for the fiscal year 1977 (not more than 50 per centum

of which amount may be used under section 5306(d)(1) of this

title), $350,000,000 for the fiscal year 1978 (of which not more

than $175,000,000 may be used under such section), $265,000,000 for

the fiscal year 1979 (of which not more than $25,000,000 may be

used under such section), and $275,000,000 for the fiscal year 1980

(none of which may be used under such section) shall be added to

the amount available for allocation under section 5306(d) of this

title".

Subsec. (c). Pub. L. 96-399, Sec. 106(c), substituted "amounts

aggregating not to exceed $1,475,000,000 for fiscal years prior to

the fiscal year 1981, and an additional amount not to exceed

$675,000,000 for each of the fiscal years 1981, 1982, and 1983."

for "a sum not to exceed $400,000,000 for each of the fiscal years

1978 and 1979, and not to exceed $675,000,000 for the fiscal year

1980, except that no funds shall be made available for such purpose

(1) for fiscal year 1978 unless the amount appropriated under

subsections (a) and (b) of this section for fiscal year 1978 is at

least $3,600,000,000; (2) for fiscal year 1979 unless the amount

appropriated under subsections (a) and (b) of this section for

fiscal year 1979 is at least $3,750,000,000; or (3) for fiscal year

1980 unless the amount appropriated under subsections (a) and (b)

of this section for fiscal year 1980 is at least $3,900,000,000".

Subsec. (e). Pub. L. 96-399, Sec. 111(b), struck out subsec. (e)

which related to submission to Congress of timely requests for

additional appropriations for fiscal years 1978 through 1980.

1979 - Subsec. (a)(2). Pub. L. 96-153, Sec. 103(b), increased

authorization of appropriation from $250,000,000 to $275,000,000

for fiscal year 1980.

Subsec. (c). Pub. L. 96-153, Sec. 103(a), increased authorization

of appropriation for fiscal year 1980 from $400,000,000 to

$675,000,000.

1977 - Subsec. (a)(1). Pub. L. 95-128, Sec. 103(a), (b),

authorized: grants to Indian tribes, appropriation authorizations

for fiscal years 1978 through 1980, and unappropriated funds to be

appropriated for any succeeding fiscal year; and deleted provisions

which: prescribed $8,400,000,000 as the limitation on amount of

obligations incurred, authorized appropriation of $2,500,000,000

for fiscal year 1975, increased to $5,450,000,000 and

$8,400,000,000 for fiscal years 1976 and 1977 for liquidation of

obligations, and made available for liquidation of contracts

entered into hereunder appropriations for grants under title VII of

the Housing Act of 1961 and sections 3102 and 3103 of this title,

and supplemental grants under title I of the Demonstration Cities

and Metropolitan Development Act of 1966, not otherwise obligated

prior to Jan. 1, 1975.

Subsec. (a)(2). Pub. L. 95-128, Sec. 103(c), inserted use of

additional money authorization provisions for fiscal years 1978

through 1980.

Subsec. (b). Pub. L. 95-128, Sec. 103(d), authorized

appropriations for fiscal years 1978 through 1980, substituted "for

the financial settlement and, to the extent feasible, the

completion of projects and programs assisted under the categorical

programs terminated in section 5316(a) of this title, primarily

urban renewal projects assisted under the Housing Act of 1949, to

units of general local government which require supplemental

assistance which cannot be provided" for "to units of general local

government having urgent community development needs which cannot

be met" and inserted provision respecting requirement of prior

appropriation of a minimum amount.

Subsecs. (c) to (e). Pub. L. 95-128, Sec. 103(e), added subsec.

respectively.

1976 - Subsec. (a)(2). Pub. L. 94-375 inserted ", and

$200,000,000 for the fiscal year 1977, not more than 50 per centum

of which amount may be used under section 5306(d)(1) of this

title," after "1976".

EFFECTIVE DATE OF 1983 AMENDMENT

Amendment by Pub. L. 98-181 applicable only to funds available

for fiscal year 1984 and thereafter, see section 110(b) of Pub. L.

98-181, as amended, set out as a note under section 5316 of this

title.

EFFECTIVE DATE OF 1981 AMENDMENT

Amendment by Pub. L. 97-35 effective Oct. 1, 1981, see section

371 of Pub. L. 97-35, set out as an Effective Date note under

section 3701 of Title 12, Banks and Banking.

EFFECTIVE DATE OF 1977 AMENDMENT

Amendment by Pub. L. 95-128 effective Oct. 1, 1977, see section

114 of Pub. L. 95-128, set out as a note under section 5301 of this

title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 5302, 5304, 5306, 5307,

5312, 5318, 5318a of this title.

-End-

-CITE-

42 USC Sec. 5304 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 69 - COMMUNITY DEVELOPMENT

-HEAD-

Sec. 5304. Statement of activities and review

-STATUTE-

(a) Statement of objectives and projected use of funds by grantee

prerequisite to receipt of grant; publication of proposals by

grantees; notice and comment; citizen participation plan

(1) Prior to the receipt in any fiscal year of a grant under

section 5306(b) of this title by any metropolitan city or urban

county, under section 5306(d) of this title by any State, or under

section 5306(d)(2)(B) of this title by any unit of general local

government, the grantee shall have prepared a final statement of

community development objectives and projected use of funds and

shall have provided the Secretary with the certifications required

in subsection (b) of this section and, where appropriate,

subsection (c) of this section. In the case of metropolitan cities

and urban counties receiving grants pursuant to section 5306(b) of

this title and in the case of units of general local government

receiving grants pursuant to section 5306(d)(2)(B) of this title,

the statement of projected use of funds shall consist of proposed

community development activities. In the case of States receiving

grants pursuant to section 5306(d) of this title, the statement of

projected use of funds shall consist of the method by which the

States will distribute funds to units of general local government.

(2) In order to permit public examination and appraisal of such

statements, to enhance the public accountability of grantees, and

to facilitate coordination of activities with different levels of

government, the grantee shall in a timely manner -

(A) furnish citizens or, as appropriate, units of general local

government information concerning the amount of funds available

for proposed community development and housing activities and the

range of activities that may be undertaken, including the

estimated amount proposed to be used for activities that will

benefit persons of low and moderate income and the plans of the

grantee for minimizing displacement of persons as a result of

activities assisted with such funds and to assist persons

actually displaced as a result of such activities;

(B) publish a proposed statement in such manner to afford

affected citizens or, as appropriate, units of general local

government an opportunity to examine its content and to submit

comments on the proposed statement and on the community

development performance of the grantee;

citizens on community development and housing needs;

(D) provide citizens or, as appropriate, units of general local

government with reasonable access to records regarding the past

use of funds received under section 5306 of this title by the

grantee; and

(E) provide citizens or, as appropriate, units of general local

government with reasonable notice of, and opportunity to comment

on, any substantial change proposed to be made in the use of

funds received under section 5306 of this title from one eligible

activity to another or in the method of distribution of such

funds.

In preparing the final statement, the grantee shall consider any

such comments and views and may, if deemed appropriate by the

grantee, modify the proposed statement. The final statement shall

be made available to the public, and a copy shall be furnished to

the Secretary together with the certifications required under

subsection (b) of this section and, where appropriate, subsection

modified or amended from time to time by the grantee in accordance

with the same procedures required in this paragraph for the

preparation and submission of such statement.

(3) A grant under section 5306 of this title may be made only if

the grantee certifies that it is following a detailed citizen

participation plan which -

(A) provides for and encourages citizen participation, with

particular emphasis on participation by persons of low and

moderate income who are residents of slum and blight areas and of

areas in which section 106 [42 U.S.C. 5306] funds are proposed to

be used, and in the case of a grantee described in section

5306(a) of this title, provides for participation of residents in

low and moderate income neighborhoods as defined by the local

jurisdiction;

(B) provides citizens with reasonable and timely access to

local meetings, information, and records relating to the

grantee's proposed use of funds, as required by regulations of

the Secretary, and relating to the actual use of funds under this

chapter;

of persons of low and moderate income that request such

assistance in developing proposals with the level and type of

assistance to be determined by the grantee;

(D) provides for public hearings to obtain citizen views and to

respond to proposals and questions at all stages of the community

development program, including at least the development of needs,

the review of proposed activities, and review of program

performance, which hearings shall be held after adequate notice,

at times and locations convenient to potential or actual

beneficiaries, and with accommodation for the handicapped;

(E) provides for a timely written answer to written complaints

and grievances, within 15 working days where practicable; and

(F) identifies how the needs of non-English speaking residents

will be met in the case of public hearings where a significant

number of non-English speaking residents can be reasonably

expected to participate.

This paragraph may not be construed to restrict the responsibility

or authority of the grantee for the development and execution of

its community development program.

(b) Certification of enumerated criteria by grantee to Secretary

Any grant under section 5306 of this title shall be made only if

the grantee certifies to the satisfaction of the Secretary that -

(1) the grantee is in full compliance with the requirements of

subsection (a)(2)(A), (B), and (C) of this section and has made

the final statement available to the public;

(2) the grant will be conducted and administered in conformity

with the Civil Rights Act of 1964 [42 U.S.C. 2000a et seq.] and

the Fair Housing Act [42 U.S.C. 3601 et seq.], and the grantee

will affirmatively further fair housing;

(3) the projected use of funds has been developed so as to give

maximum feasible priority to activities which will benefit low-

and moderate-income families or aid in the prevention or

elimination of slums or blight, and the projected use of funds

may also include activities which the grantee certifies are

designed to meet other community development needs having a

particular urgency because existing conditions pose a serious and

immediate threat to the health or welfare of the community where

other financial resources are not available to meet such needs,

except that (A) the aggregate use of funds received under section

5306 of this title and, if applicable, as a result of a guarantee

or a grant under section 5308 of this title, during a period

specified by the grantee of not more than 3 years, shall

principally benefit persons of low and moderate income in a

manner that ensures that not less than 70 percent of such funds

are used for activities that benefit such persons during such

period; and (B) a grantee that borders on the Great Lakes and

that experiences significant adverse financial and physical

effects due to lakefront erosion or flooding may include in the

projected use of funds activities that are clearly designed to

alleviate the threat posed, and rectify the damage caused, by

such erosion or flooding if such activities will principally

benefit persons of low and moderate income and the grantee

certifies that such activities are necessary to meet other needs

having a particular urgency;

(4) it has developed a community development plan pursuant to

subsection (m) of this section, for the period specified by the

grantee under paragraph (3), that identifies community

development needs and specifies both short- and long-term

community development objectives that have been developed in

accordance with the primary objective and requirements of this

chapter;

(5) the grantee will not attempt to recover any capital costs

of public improvements assisted in whole or part under section

5306 of this title or with amounts resulting from a guarantee

under section 5308 of this title by assessing any amount against

properties owned and occupied by persons of low and moderate

income, including any fee charged or assessment made as a

condition of obtaining access to such public improvements, unless

(A) funds received under section 5306 of this title are used to

pay the proportion of such fee or assessment that relates to the

capital costs of such public improvements that are financed from

revenue sources other than under this chapter; or (B) for

purposes of assessing any amount against properties owned and

occupied by persons of moderate income, the grantee certifies to

the Secretary that it lacks sufficient funds received under

section 5306 of this title to comply with the requirements of

subparagraph (A); and

(6) the grantee will comply with the other provisions of this

chapter and with other applicable laws.

A grant may be made under section 5306(b) of this title only if

the unit of general local government certifies that it is following

(1) a current housing affordability strategy which has been

approved by the Secretary in accordance with section 12705 of

this title, or

(2) a housing assistance plan which was approved by the

Secretary during the 180-day period beginning on November 28,

1990, or during such longer period as may be prescribed by the

Secretary in any case for good cause.

(d) Residential antidisplacement and relocation assistance plan;

certification of adherence; contents

(1) A grant under section 5306 or 5318 of this title may be made

only if the grantee certifies that it is following a residential

antidisplacement and relocation assistance plan. A grantee

receiving a grant under section 5306(a) of this title or section

5318 of this title shall so certify to the Secretary. A unit of

general local government receiving amounts from a State under

section 5306(d) of this title shall so certify to the State, and a

unit of general local government receiving amounts from the

Secretary under section 5306(d) of this title shall so certify to

the Secretary.

(2) The residential antidisplacement and relocation assistance

plan shall in connection with a development project assisted under

section 5306 or 5318 of this title -

(A) in the event of such displacement, provide that -

(i) governmental agencies or private developers shall provide

within the same community comparable replacement dwellings for

the same number of occupants as could have been housed in the

occupied and vacant occupiable low and moderate income dwelling

units demolished or converted to a use other than for housing

for low and moderate income persons, and provide that such

replacement housing may include existing housing assisted with

project based assistance provided under section 1437f of this

title;

(ii) such comparable replacement dwellings shall be designed

to remain affordable to persons of low and moderate income for

10 years from the time of initial occupancy;

(iii) relocation benefits shall be provided for all low or

moderate income persons who occupied housing demolished or

converted to a use other than for low or moderate income

housing, including reimbursement for actual and reasonable

moving expenses, security deposits, credit checks, and other

moving-related expenses, including any interim living costs;

and in the case of displaced persons of low and moderate

income, provide either -

(I) compensation sufficient to ensure that, for a 5-year

period, the displaced families shall not bear, after

relocation, a ratio of shelter costs to income that exceeds

30 percent; or

(II) if elected by a family, a lump-sum payment equal to

the capitalized value of the benefits available under

subclause (I) to permit the household to secure participation

in a housing cooperative or mutual housing association; and

(iv) persons displaced shall be relocated into comparable

replacement housing that is -

(I) decent, safe, and sanitary;

(II) adequate in size to accommodate the occupants;

(III) functionally equivalent; and

(IV) in an area not subject to unreasonably adverse

environmental conditions;

(B) provide that persons displaced shall have the right to

elect, as an alternative to the benefits under this subsection,

to receive benefits under the Uniform Relocation Assistance and

Real Property Acquisition Policies Act of 1970 (42 U.S.C. 4601 et

seq.) if such persons determine that it is in their best interest

to do so; and

subparagraph (A)(iv) is denied by a grantee, the claimant may

appeal to the Secretary in the case of a grant under section 5306

or 5318 of this title or to the appropriate State official in the

case of a grant under section 5306(d) of this title, and that the

decision of the Secretary or the State official shall be final

unless a court determines the decision was arbitrary and

capricious.

(3) Paragraphs (2)(A)(i) and (2)(A)(ii) shall not apply in any

case in which the Secretary finds, on the basis of objective data,

that there is available in the area an adequate supply of habitable

affordable housing for low and moderate income persons. A

determination under this paragraph is final and nonreviewable.

(e) Submission of performance and evaluation report by grantee to

Secretary; contents; availability for citizen comment; annual

review and audit by Secretary of program implementation;

adjustments in amount of annual grants

Each grantee shall submit to the Secretary, at a time determined

by the Secretary, a performance and evaluation report concerning

the use of funds made available under section 5306 of this title,

together with an assessment by the grantee of the relationship of

such use to the objectives identified in the grantee's statement

under subsection (a) of this section and to the requirements of

subsection (b)(3) of this section. Such report shall also be made

available to the citizens in each grantee's jurisdiction in

sufficient time to permit such citizens to comment on such report

prior to its submission, and in such manner and at such times as

the grantee may determine. The grantee's report shall indicate its

programmatic accomplishments, the nature of and reasons for changes

in the grantee's program objectives, indications of how the grantee

would change its programs as a result of its experiences, and an

evaluation of the extent to which its funds were used for

activities that benefited low- and moderate-income persons. The

report shall include a summary of any comments received by the

grantee from citizens in its jurisdiction respecting its program.

The Secretary shall encourage and assist national associations of

grantees eligible under section 5306(d)(2)(B) of this title,

national associations of States, and national associations of units

of general local government in nonentitlement areas to develop and

recommend to the Secretary, within one year after November 30,

1983, uniform recordkeeping, performance reporting, and evaluation

reporting, and auditing requirements for such grantees, States, and

units of general local government, respectively. Based on the

Secretary's approval of these recommendations, the Secretary shall

establish such requirements for use by such grantees, States, and

units of general local government. The Secretary shall, at least on

an annual basis, make such reviews and audits as may be necessary

or appropriate to determine -

(1) in the case of grants made under section 5306(b) or section

5306(d)(2)(B) of this title, whether the grantee has carried out

its activities and, where applicable, its housing assistance plan

in a timely manner, whether the grantee has carried out those

activities and its certifications in accordance with the

requirements and the primary objectives of this chapter and with

other applicable laws, and whether the grantee has a continuing

capacity to carry out those activities in a timely manner; and

(2) in the case of grants to States made under section 5306(d)

of this title, whether the State has distributed funds to units

of general local government in a timely manner and in conformance

to the method of distribution described in its statement, whether

the State has carried out its certifications in compliance with

the requirements of this chapter and other applicable laws, and

whether the State has made such reviews and audits of the units

of general local government as may be necessary or appropriate to

determine whether they have satisfied the applicable performance

criteria described in paragraph (1) of this subsection.

The Secretary may make appropriate adjustments in the amount of the

annual grants in accordance with the Secretary's findings under

this subsection. With respect to assistance made available to units

of general local government under section 5306(d) of this title,

the Secretary may adjust, reduce, or withdraw such assistance, or

take other action as appropriate in accordance with the Secretary's

reviews and audits under this subsection, except that funds already

expended on eligible activities under this chapter shall not be

recaptured or deducted from future assistance to such units of

general local government.

(f) Audit of grantees by General Accounting Office; access to

books, accounts, records, etc., by representatives of General

Accounting Office

Insofar as they relate to funds provided under this chapter, the

financial transactions of recipients of such funds may be audited

by the General Accounting Office under such rules and regulations

as may be prescribed by the Comptroller General of the United

States. The representatives of the General Accounting Office shall

have access to all books, accounts, records, reports, files, and

other papers, things, or property belonging to or in use by such

recipients pertaining to such financial transactions and necessary

to facilitate the audit.

(g) Environmental protection measures applicable for release of

funds to applicants for projects; issuance of regulations by

Secretary subsequent to consultation with Council on

Environmental Quality; request and certification to Secretary for

approval of release of funds; form, contents and effect of

certification

(1) In order to assure that the policies of the National

Environmental Policy Act of 1969 [42 U.S.C. 4321 et seq.] and other

provisions of law which further the purposes of such Act (as

specified in regulations issued by the Secretary) are most

effectively implemented in connection with the expenditure of funds

under this chapter, and to assure to the public undiminished

protection of the environment, the Secretary, in lieu of the

environmental protection procedures otherwise applicable, may under

regulations provide for the release of funds for particular

projects to recipients of assistance under this chapter who assume

all of the responsibilities for environmental review,

decisionmaking, and action pursuant to such Act, and such other

provisions of law as the regulations of the Secretary specify, that

would apply to the Secretary were he to undertake such projects as

Federal projects. The Secretary shall issue regulations to carry

out this subsection only after consultation with the Council on

Environmental Quality.

(2) The Secretary shall approve the release of funds for projects

subject to the procedures authorized by this subsection only if, at

least fifteen days prior to such approval and prior to any

commitment of funds to such projects other than for purposes

authorized by section 5305(a)(12) of this title or for

environmental studies, the recipient of assistance under this

chapter has submitted to the Secretary a request for such release

accompanied by a certification which meets the requirements of

paragraph (3). The Secretary's approval of any such certification

shall be deemed to satisfy his responsibilities under the National

Environmental Policy Act of 1969 [42 U.S.C. 4321 et seq.] and such

other provisions of law as the regulations of the Secretary specify

insofar as those responsibilities relate to the releases of funds

for projects to be carried out pursuant thereto which are covered

by such certification.

(3) A certification under the procedures authorized by this

subsection shall -

(A) be in a form acceptable to the Secretary,

(B) be executed by the chief executive officer or other officer

of the recipient of assistance under this chapter qualified under

regulations of the Secretary,

has fully carried out its responsibilities as described under

paragraph (1) of this subsection, and

(D) specify that the certifying officer (i) consents to assume

the status of a responsible Federal official under the National

Environmental Policy Act of 1969 [42 U.S.C. 4321 et seq.] and

each provision of law specified in regulations issued by the

Secretary insofar as the provisions of such Act or other such

provision of law apply pursuant to paragraph (1) of this

subsection, and (ii) is authorized and consents on behalf of the

recipient of assistance under this chapter and himself to accept

the jurisdiction of the Federal courts for the purpose of

enforcement of his responsibilities as such an official.

(4) In the case of grants made to States pursuant to section

5306(d) of this title, the State shall perform those actions of the

Secretary described in paragraph (2) and the performance of such

actions shall be deemed to satisfy the Secretary's responsibilities

referred to in the second sentence of such paragraph.

(h) Payments; revolving loan fund: establishment in private

financial institution for rehabilitation activities; standards

for payments: criteria

(1) Units of general local government receiving assistance under

this chapter may receive funds, in one payment, in an amount not to

exceed the total amount designated in the grant (or, in the case of

a unit of general local government receiving a distribution from a

State pursuant to section 5306(d) of this title, not to exceed the

total amount of such distribution) for use in establishing a

revolving loan fund which is to be established in a private

financial institution and which is to be used to finance

rehabilitation activities assisted under this chapter.

Rehabilitation activities authorized under this section shall begin

within 45 days after receipt of such payment and substantial

disbursements from such fund must begin within 180 days after

receipt of such payment.

(2) The Secretary shall establish standards for such cash

payments which will insure that the deposits result in appropriate

benefits in support of the recipient's rehabilitation program.

These standards shall be designed to assure that the benefits to be

derived from the local program include, at a minimum, one or more

of the following elements, or such other criteria as determined by

the Secretary -

(A) leverage of community development block grant funds so that

participating financial institutions commit private funds for

loans in the rehabilitation program in amounts substantially in

excess of deposit of community development funds;

(B) commitment of private funds for rehabilitation loans at

below-market interest rates or with repayment periods lengthened

or at higher risk than would normally be taken;

rehabilitation program by the participating lending institutions;

and

(D) interest earned on such cash deposits shall be used in a

manner which supports the community rehabilitation program.

(i) Metropolitan city as part of urban county

In any case in which a metropolitan city is located, in whole or

in part, within an urban county, the Secretary may, upon the joint

request of such city and county, approve the inclusion of the

metropolitan city as part of the urban county for purposes of

submitting a statement under subsection (a) of this section and

carrying out activities under this chapter.

(j) Retention of program income; condition of distribution

Notwithstanding any other provision of law, any unit of general

local government may retain any program income that is realized

from any grant made by the Secretary, or any amount distributed by

a State, under section 5306 of this title if (1) such income was

realized after the initial disbursement of the funds received by

such unit of general local government under such section; and (2)

such unit of general local government has agreed that it will

utilize the program income for eligible community development

activities in accordance with the provisions of this chapter;

except that the Secretary may, by regulation, exclude from

consideration as program income any amounts determined to be so

small that compliance with this subsection creates an unreasonable

administrative burden on the unit of general local government. A

State may require as a condition of any amount distributed by such

State under section 5306(d) of this title that a unit of general

local government shall pay to such State any such income to be used

by such State to fund additional eligible community development

activities, except that such State shall waive such condition to

the extent such income is applied to continue the activity from

which such income was derived.

(k) Provision of benefits to displaced persons

Each grantee shall provide for reasonable benefits to any person

involuntarily and permanently displaced as a result of the use of

assistance received under this chapter to acquire or substantially

rehabilitate property.

(l) Protection of individuals engaging in nonviolent civil rights

demonstrations

No funds authorized to be appropriated under section 5303 of this

title may be obligated or expended to any unit of general local

government that -

(1) fails to adopt and enforce a policy prohibiting the use of

excessive force by law enforcement agencies within its

jurisdiction against any individuals engaged in nonviolent civil

rights demonstrations; or

(2) fails to adopt and enforce a policy of enforcing applicable

State and local laws against physically barring entrance to or

exit from a facility or location which is the subject of such

nonviolent civil rights demonstration within its jurisdiction.

(m) Community development plans

(1) In general

Prior to the receipt in any fiscal year of a grant from the

Secretary under subsection (b), (d)(1), or (d)(2)(B) of section

5306 of this title, each recipient shall have prepared and

submitted in accordance with this subsection and in such

standardized form as the Secretary shall, by regulation,

prescribe a description of its priority nonhousing community

development needs eligible for assistance under this chapter.

(2) Local governments

In the case of a recipient that is a unit of general local

government -

(A) prior to the submission required by paragraph (1), the

recipient shall, to the extent practicable, notify adjacent

units of general local government and solicit the views of

citizens on priority nonhousing community development needs;

and

(B) the description required under paragraph (1) shall be

submitted to the Secretary, the State, and any other unit of

general local government within which the recipient is located,

in such standardized form as the Secretary shall, by

regulation, prescribe.

(3) States

In the case of a recipient that is a State, the description

required by paragraph (1) -

(A) shall include only the needs within the State that affect

more than one unit of general local government and involve

activities typically funded by such States under this chapter;

and

(B) shall be submitted to the Secretary in such standard form

as the Secretary, by regulation, shall prescribe.

(4) Effect of submission

A submission under this subsection shall not be binding with

respect to the use or distribution of amounts received under

section 5306 of this title.

-SOURCE-

(Pub. L. 93-383, title I, Sec. 104, Aug. 22, 1974, 88 Stat. 638;

Pub. L. 95-128, title I, Secs. 104, 110(a), Oct. 12, 1977, 91 Stat.

1114, 1125; Pub. L. 95-557, title I, Sec. 103(a)-(d), Oct. 31,

1978, 92 Stat. 2083; Pub. L. 96-153, title I, Secs. 103(c), (g),

109(a), Dec. 21, 1979, 93 Stat. 1102, 1105; Pub. L. 96-399, title

I, Secs. 101(d), 104(b), 105(a), 109, 111(c), Oct. 8, 1980, 94

Stat. 1615, 1616, 1618, 1619, 1621; Pub. L. 97-35, title III, Secs.

302(b), (c)(1), (d)-(f), 309(d), Aug. 13, 1981, 95 Stat. 384, 386,

387, 396; Pub. L. 98-181, title I, Secs. 101(b), 104, Nov. 30,

1983, 97 Stat. 1159, 1161; Pub. L. 98-479, title I, Sec.

101(a)(5)-(7), Oct. 17, 1984, 98 Stat. 2219; Pub. L. 100-242, title

V, Secs. 502(c), 505-509(a), Feb. 5, 1988, 101 Stat. 1923, 1926,

1927; Pub. L. 100-628, title X, Sec. 1083, Nov. 7, 1988, 102 Stat.

3277; Pub. L. 101-625, title IX, Secs. 902(b), 905, 906, 922, Nov.

28, 1990, 104 Stat. 4385, 4387, 4402; Pub. L. 102-550, title VIII,

Secs. 804, 808, 812, Oct. 28, 1992, 106 Stat. 3845, 3850; Pub. L.

103-233, title II, Sec. 232(a)(2)(B), Apr. 11, 1994, 108 Stat.

367.)

-REFTEXT-

REFERENCES IN TEXT

The Civil Rights Act of 1964, referred to in subsec. (b)(2), is

Pub. L. 88-352, July 2, 1964, 78 Stat. 241, as amended, which is

classified principally to subchapters II to IX (Sec. 2000a et seq.)

of chapter 21 of this title. For complete classification of this

Act to the Code, see Short Title note set out under section 2000a

of this title and Tables.

The Fair Housing Act, referred to in subsec. (b)(2), is title

VIII of Pub. L. 90-284, Apr. 11, 1968, 82 Stat. 81, as amended,

which is classified principally to subchapter I (Sec. 3601 et seq.)

of chapter 45 of this title. For complete classification of this

Act to the Code, see Short Title note set out under section 3601 of

this title and Tables.

The Uniform Relocation Assistance and Real Property Acquisition

Policies Act of 1970, referred to in subsec. (d)(2)(B), is Pub. L.

91-646, Jan. 2, 1971, 84 Stat. 1894, as amended, which is

classified principally to chapter 61 (Sec. 4601 et seq.) of this

title. For complete classification of this Act to the Code, see

Short Title note set out under section 4601 of this title and

Tables.

The National Environmental Policy Act of 1969, referred to in

subsec. (g)(1), (2), (3)(D), is Pub. L. 91-190, Jan. 1, 1970, 83

Stat. 852, as amended, which is classified generally to chapter 55

(Sec. 4321 et seq.) of this title. For complete classification of

this Act to the Code, see Short Title note set out under section

4321 of this title and Tables.

-MISC1-

AMENDMENTS

1994 - Subsec. (b)(3)(A). Pub. L. 103-233 inserted "or a grant"

after "guarantee".

1992 - Subsec. (b)(2). Pub. L. 102-550, Sec. 808, substituted

"the Civil Rights Act of 1964 and the Fair Housing Act" for "Public

Law 88-352 and Public Law 90-284".

Subsec. (b)(4). Pub. L. 102-550, Sec. 812(b), inserted "pursuant

to subsection (m) of this section" after "plan" and struck out "and

housing" before "needs and".

Subsec. (j). Pub. L. 102-550, Sec. 804, in first sentence, struck

out "while the unit of general local government is participating in

a community development program under this chapter" after "has

agreed that" and inserted before period at end "; except that the

Secretary may, by regulation, exclude from consideration as program

income any amounts determined to be so small that compliance with

this subsection creates an unreasonable administrative burden on

the unit of general local government".

Subsecs. (l), (m). Pub. L. 102-550, Sec. 812(a), redesignated

subsec. (l), relating to community development plans, as (m) and

amended it generally, substituting present provisions for

provisions requiring recipients to have submitted a description of

its nonhousing community development needs and strategies for

meeting those needs, providing for special requirements for such

plans where the recipient was a State or a unit of general local

government, and providing that a submission of a plan would not be

binding with respect to the use or distribution of amounts received

under section 5306 of this title.

1990 - Subsec. (b)(3). Pub. L. 101-625, Sec. 902(b), substituted

"70 percent" for "60 percent".

Subsec. (c). Pub. L. 101-625, Sec. 905, amended subsec. (c)

generally, substituting present provisions for provisions

authorizing grants under section 5306(b) of this title only if the

unit of local government certified that it followed a current

housing assistance plan approved by the Secretary which (1)

accurately surveyed the condition of the housing stock in the

community, (2) specified a realistic annual goal for the number of

dwelling units or persons of low and moderate income to be

assisted, (3) indicated the general locations of proposed low and

moderate income housing, and (4) specified activities that would be

undertaken annually to minimize displacement and preserve or expand

the availability of low and moderate income housing, and which

required the establishment of dates and manner for the submission

of housing assistance plans.

Subsec. (l). Pub. L. 101-625, Sec. 922, added subsec. (l)

relating to community development plans.

Pub. L. 101-625, Sec. 906, added subsec. (l) relating to

protection of individuals engaging in nonviolent civil rights

demonstrations.

1988 - Subsec. (a)(1). Pub. L. 100-242, Sec. 505, struck out at

end "In all cases, beginning in fiscal year 1984, the statement

required in this subsection shall include a description of the use

of funds made available under section 5306 of this title in fiscal

year 1982 and thereafter (or, beginning in fiscal year 1985, such

use since preparation of the last statement prepared pursuant to

this subsection) together with an assessment of the relationship of

such use to the community development objectives identified in the

statement prepared pursuant to this subsection for such previous

fiscal years and to the requirements of subsection (b)(3) of this

section."

Subsec. (a)(3). Pub. L. 100-242, Sec. 508, added par. (3).

Subsec. (b)(3). Pub. L. 100-242, Sec. 506, designated provision

after "except that" as cl. (A) and added cl. (B).

Pub. L. 100-242, Sec. 502(c), substituted "60" for "51".

Subsec. (c)(1)(A), (B). Pub. L. 100-242, Sec. 507(b)(1),

substituted "persons of low and moderate income" for "lower income

persons" wherever appearing.

Subsec. (c)(1)(C). Pub. L. 100-242, Sec. 507(b), substituted

"persons of low and moderate income" for "lower income persons" and

"low-income persons".

Subsec. (c)(1)(D). Pub. L. 100-242, Sec. 507(a), added subpar.

(D).

Subsec. (d). Pub. L. 100-242, Sec. 509(a)(2), added subsec. (d).

Former subsec. (d) redesignated (e).

Subsec. (d)(1). Pub. L. 100-628, Sec. 1083(a), amended third

sentence generally. Prior to amendment, third sentence read as

follows: "A grantee receiving a grant under section 5306(d) of this

title shall so certify to the State".

Subsec. (d)(2)(A)(iii)(II). Pub. L. 100-628, Sec. 1083(b),

inserted "and" after "mutual housing association;".

Subsecs. (e) to (k). Pub. L. 100-242, Sec. 509(a)(1),

redesignated subsecs. (d) to (j) as (e) to (k), respectively.

1984 - Subsec. (a)(2)(E). Pub. L. 98-479, Sec. 101(a)(5),

inserted "or in the method of distribution of such funds".

Subsec. (b)(5)(B). Pub. L. 98-479, Sec. 101(a)(6), substituted

"moderate" for "low and moderate income who are not persons of very

low" before "income, the grantee certifies".

Subsec. (d). Pub. L. 98-479, Sec. 101(a)(7), struck out the comma

between "which" and "its funds" in third sentence, and inserted

"general" before "local" after "and units of" in fifth sentence,

and before "local" in sixth sentence.

1983 - Subsec. (a)(1). Pub. L. 98-181, Sec. 104(a), inserted

sentence at end that the statement must include a description of

the use of funds made available under section 5306 of this title in

fiscal year 1982 and thereafter (or, beginning with fiscal year

1985, such use since preparation of the last statement under this

subsection) together with an assessment of the relationship of such

use to the community development objectives identified in the

statement prepared pursuant to this subsection for previous fiscal

years and to the requirements of subsec. (b)(3) of this section.

Subsec. (a)(2). Pub. L. 98-181, Sec. 104(b)(1), in provisions

preceding subpar. (A) substituted "shall in a timely manner" for

"shall".

Pub. L. 98-181, Sec. 104(b)(6), inserted at end "Any final

statement of activities may be modified or amended from time to

time by the grantee in accordance with the same procedures required

in this paragraph for the preparation and submission of such

statement."

Subsec. (a)(2)(A). Pub. L. 98-181, Sec. 104(b)(2), substituted

"citizens or, as appropriate, units of general local government"

for "citizens", and inserted ", including the estimated amount

proposed to be used for activities that will benefit persons of low

and moderate income and the plans of the grantee for minimizing

displacement of persons as a result of activities assisted with

such funds and to assist persons actually displaced as a result of

such activities".

Subsec. (a)(2)(D), (E). Pub. L. 98-181, Sec. 104(b)(3)-(5), added

subpars. (D) and (E).

Subsec. (b)(2). Pub. L. 98-181, Sec. 104(c)(1), inserted

requirement that the grantee affirmatively further fair housing.

Subsec. (b)(3). Pub. L. 98-181, Sec. 101(b), inserted provision

that the aggregate use of funds received under section 5306 of this

title and, if applicable, as a result of a guarantee under section

5308 of this title, during a period specified by the grantee of not

more than 3 years, shall principally benefit persons of low and

moderate income in a manner that ensures that not less than 51

percent of such funds are used for activities that benefit such

persons during such period.

Subsec. (b)(4) to (6). Pub. L. 98-181, Sec. 104(c)(2)-(4), added

pars. (4) and (5) and redesignated former par. (4) as (6).

Subsec. (c)(1)(A). Pub. L. 98-181, Sec. 104(d), inserted

"(including the number of vacant and abandoned dwelling units)".

Subsec. (d). Pub. L. 98-181, Sec. 104(e), in provisions preceding

par. (1), substituted "performance and evaluation report" for

"performance report"; substituted "subsection (a) of this section

and to the requirements of subsection (b)(3) of this section" for

"subsection (a) of this section"; and inserted provision requiring

that the report be made available for citizen comment prior to

submission, that the report summarize such comments and indicate

programmatic accomplishments, changes in programs and objectives,

and an evaluation of the extent to which funds were used to benefit

low- and moderate-income persons, and requiring the Secretary to

establish uniform recordkeeping, performance and evaluation

reporting, and requirements for grantees, States, and local

governments, based on the Secretary's approval of recommendations

made by such grantees and State and local governments.

Subsec. (g)(1). Pub. L. 98-181, Sec. 104(f), inserted "and

substantial disbursements from such fund must begin within 180 days

after receipt of such payment".

Subsecs. (i), (j). Pub. L. 98-181, Sec. 104(g), added subsecs.

(i) and (j).

1981 - Subsec. (a). Pub. L. 97-35, Sec. 302(b), substituted

provisions relating to statement of objectives and projected use of

funds by grantee, publication of proposals by grantees, and

procedures applicable for provisions relating to contents and

statements required in application.

Subsec. (b). Pub. L. 97-35, Sec. 302(b), substituted provisions

relating to certifications of enumerated criteria by grantee to

Secretary for provisions relating to additional requirements for

application, certifications to Secretary, and waiver of required

program contents.

Subsec. (c). Pub. L. 97-35, Sec. 302(b), substituted provisions

relating to certifications by the unit of general local government

respecting enumerated grants for provisions relating to approval of

applications.

Subsec. (d). Pub. L. 97-35, Sec. 302(c)(1), substituted

provisions relating to performance and assessment reports by

grantee to the Secretary concerning use of funds under section 5306

of this title, and reviews, audits and adjustments by the

Secretary, for provisions relating to performance and assessment

reports by grantee to the Secretary concerning activities carried

out under this chapter, and reviews, audits, and adjustments by

Secretary.

Subsec. (e). Pub. L. 97-35, Sec. 302(d), redesignated subsec. (g)

as (e). Former subsec. (e), which related to review and comment on

application by areawide agency under procedures established by

President, was struck out.

Subsec. (f). Pub. L. 97-35, Sec. 302(d), (e), redesignated

subsec. (h) as (f), in par. (1) substituted "recipients of

assistance under this chapter" for "applicants", in par. (2)

"recipient of assistance under this chapter" for "applicant" and

"the releases of funds" for "the applications and releases of

funds" and in par. (3)(B) to (D) "recipient of assistance under

this chapter" for "applicant", and added par. (4). Former subsec.

(f), which related to approval date of application and adjustment

of grant subsequent to approval of application, was struck out.

Subsec. (g). Pub. L. 97-35, Sec. 302(d), (f), redesignated

subsec. (i) as (g), in par. (1) substituted provision relating to

units of general local government as recipients for provision

relating to recipients of funds and in par. (2) struck out

provision relating to review and approval of agreements. Former

subsec. (g) redesignated (e).

Subsec. (h). Pub. L. 97-35, Secs. 302(d), 309(d), redesignated

subsec. (j) as (h) and substituted provisions relating to

submission of a statement and carrying out activities for

provisions relating to program planning, meeting application

requirements, and program implementation. Former subsec. (h)

redesignated (f).

Subsecs. (i), (j). Pub. L. 97-35, Sec. 302(d), redesignated

subsecs. (i) and (j) as (g) and (h), respectively.

1980 - Subsec. (a). Pub. L. 96-399, Sec. 104(b), inserted

provision following par. (6) relating to discretionary inclusion in

program summary comparable information with respect to applicant's

energy conservation and renewable energy resource needs and

objectives.

Subsec. (a)(2). Pub. L. 96-399, Sec. 105(a), in cl. (B)

substituted "activities, and objectives, including activities" for

"including activities", struck out "and objectives" after

"moderate-income persons", and in cl. (C) inserted provisions

respecting activities on the involuntary displacement of low- and

moderate-income persons.

Subsec. (c). Pub. L. 96-399, Sec. 111(c)(1), substituted

"5306(b)" for "5306(a)".

Subsec. (d). Pub. L. 96-399, Secs. 109, 111(c)(2), substituted

"Each" for "Prior to the beginning of fiscal year 1977 and each

fiscal year thereafter, each", inserted provision relating to the

annual submission of the performance report, prior to the beginning

of each fiscal year, and less frequently for a grantee receiving a

grant not funding a comprehensive development program, inserted

provisions respecting determinations by the Secretary in the case

of a grant for which a report is submitted less frequently than

annually in accordance with the second sentence of this paragraph,

and substituted "5306(c)" for "5306(d)(2)" and "5306(e)" for

"5306(f)(1)(B)".

Subsec. (e). Pub. L. 96-399, Sec. 111(c)(2), substituted

"5306(c)" for "5306(d)(2)" and "5306(e)" for "5306(f)(1)(B)".

Subsec. (j). Pub. L. 96-399, Sec. 101(d), added subsec. (j).

1979 - Subsec. (a)(4)(A). Pub. L. 96-153, Sec. 109(a), inserted

reference to impact of conversion of rental housing to condominium

or cooperative ownership on housing needs.

Subsec. (b)(3). Pub. L. 96-153, Sec. 103(c), struck out cl. (A)

and redesignated cls. (B) and (C) as (A) and (B), respectively.

Subsec. (h)(1). Pub. L. 96-153, Sec. 103(g)(1), substituted "Act

of 1969 and other provisions of law which further the purposes of

such Act (as specified in regulations issued by the Secretary) are

most" for "Act of 1969 are most", and "such Act, and such other

provisions of law as the regulations of the Secretary specify that

would apply" for "such Act that would apply".

Subsec. (h)(2). Pub. L. 96-153, Sec. 103(g)(2), substituted

"National Environmental Policy Act of 1969 and such other

provisions of law as the regulations of the Secretary specify" for

"National Environmental Policy Act".

Subsec. (h)(3)(D). Pub. L. 96-153, Sec. 103(g)(3), substituted

"Act of 1969 and each provision of law specified in regulations

issued by the Secretary insofar as the provisions of such Act or

other provision of law" for "Act of 1969 insofar as the provisions

of such Act" in cl. (i).

1978 - Subsec. (a)(3)(C). Pub. L. 95-557, Sec. 103(c), inserted

"as a result of existing or projected employment opportunities in

the community (and those elderly persons residing in or expected to

reside in the community), or as estimated in a community accepted

State or regional housing opportunity plan approved by the

Secretary" after "expected to reside in the community".

Subsec. (a)(4)(A). Pub. L. 95-557, Sec. 103(a), (c), inserted

"owners of homes requiring rehabilitation assistance" after "large

families" and inserted "as a result of existing or projected

employment opportunities in the community (and those elderly

persons residing in or expected to reside in the community), or as

estimated in a community accepted State or regional housing

opportunity plan approved by the Secretary" after "expected to

reside in the community".

Subsec. (a)(4)(B)(i). Pub. L. 95-557, Sec. 103(b), inserted

"including existing rental and owner occupied dwelling units to be

upgraded and thereby preserved" after "existing dwelling units".

Subsec. (c). Pub. L. 95-557, Sec. 103(d), inserted provisions

relating to approval or disapproval of any application on the basis

that such application addresses any one of the primary purposes

described in par. (3) to a greater or lesser extent than any other,

unless such purpose is plainly inappropriate, in which case the

application may be disapproved.

1977 - Subsec. (a). Pub. L. 95-128, Sec. 110(a), inserted

reference to section 5318 of this title.

Subsec. (a)(1). Pub. L. 95-128, Sec. 104(a)(1), inserted "and

housing" before "needs".

Subsec. (a)(2)(B). Pub. L. 95-128, Sec. 104(a)(2), included

provision activities designed to revitalize neighborhoods for

benefit of low- and moderate-income persons.

Subsec. (a)(3). Pub. L. 95-128, Sec. 104(a)(3), inserted subpar.

(B) requirement for a program designed to insure fully opportunity

for participation by, and benefits to, the handicapped and added

subpar. (C).

Subsec. (a)(4). Pub. L. 95-128, Sec. 104(a)(4), inserted subpar.

(A) provision for identification of housing stock in a deteriorated

condition; inserted in subpar. (B) "lower-income" before "persons"

and added cl. (iii); and inserted subpar. (C)(i) provision

respecting reclamation of housing stock where feasible through use

of a broad range of techniques for housing restoration by local

government, the private sector, or community organizations,

including provision of a reasonable opportunity for tenants

displaced as a result of such activities to relocate in their

immediate neighborhood.

Subsec. (a)(6). Pub. L. 95-128, Sec. 104(a)(5), added cl. (A),

redesignated former cls. (A) and (B) as (B) and (C), and

redesignated former cl. (C) as (D) and substituted "with an

opportunity to submit comments concerning the community development

performance of the applicant; but nothing in this paragraph" for

"an adequate opportunity to participate in the development of the

application; but no part of this paragraph".

Subsec. (b)(2). Pub. L. 95-128, Sec. 104(b), substituted in first

sentence "low- and moderate-income" for "low- or moderate-income"

and in second sentence after "urgency" the clause "because existing

conditions pose a serious and immediate threat to the health or

welfare of the community, and other financial resources are not

available" for "as specifically described in the application".

Subsec. (b)(3). Pub. L. 95-128, Sec. 104(c), added cl. (B),

struck out former cl. "(B) the application relates to the first

community development activity to be carried out by such locality

with assistance under this chapter", redesignated cl. (D) as (C)

and struck out former cl. "(C) the assistance requested is for a

single development activity under this chapter of a type eligible

for assistance under title VII of the Housing Act of 1961 or title

VII of the Housing and Urban Development Act of 1965".

Subsec. (c)(3). Pub. L. 95-128, Sec. 104(d), inserted ", with

specific regard to the primary purposes of principally benefiting

persons of low- and moderate-income or aiding in the prevention or

elimination of slums or blight or meeting other community

development needs having a particular urgency," before "or other

applicable law".

Subsec. (d). Pub. L. 95-128, Sec. 104(e), inserted requirement

for inclusion of citizen comments in the performance reports and

Secretary's consideration of the comments and inserted provision

for adjustment of grants under section 5306(d)(2) and (f)(1)(B) of

this title without recapture of expended funds or deduction from

future grants.

Subsec. (e). Pub. L. 95-128, Sec. 104(f), inserted provisions

respecting State participation in selection process for funding the

grants.

Subsec. (i). Pub. L. 95-128, Sec. 104(g), added subsec. (i).

EFFECTIVE DATE OF 1994 AMENDMENT

Amendment by Pub. L. 103-233 applicable with respect to any

amounts made available to carry out subchapter II (Sec. 12721 et

seq.) of chapter 130 of this title after Apr. 11, 1994, and any

amounts made available to carry out that subchapter before that

date that remain uncommitted on that date, with Secretary to issue

any regulations necessary to carry out such amendment not later

than end of 45-day period beginning on that date, see section 209

of Pub. L. 103-233, set out as a note under section 5301 of this

title.

EFFECTIVE DATE OF 1988 AMENDMENT

Section 509(b) of Pub. L. 100-242 provided that: "The amendment

made by subsection (a) [amending this section] shall take effect on

October 1, 1988."

EFFECTIVE DATE OF 1983 AMENDMENT

Amendment by Pub. L. 98-181 applicable only to funds available

for fiscal year 1984 and thereafter, see section 110(b) of Pub. L.

98-181, as amended, set out as a note under section 5316 of this

title.

EFFECTIVE DATE OF 1981 AMENDMENT

Amendment by sections 302(b), (d)-(f) and 309(d) of Pub. L. 97-35

effective Oct. 1, 1981, see section 371 of Pub. L. 97-35, set out

as an Effective Date note under section 3701 of Title 12, Banks and

Banking.

Section 302(c)(2) of Pub. L. 97-35 provided that: "The amendment

made by paragraph (1) [amending this section] shall take effect on

October 1, 1982."

EFFECTIVE DATE OF 1978 AMENDMENT

Amendment by Pub. L. 95-557 effective Oct. 1, 1978, see section

104 of Pub. L. 95-557, set out as a note under section 1709 of

Title 12, Banks and Banking.

EFFECTIVE DATE OF 1977 AMENDMENT

Amendment by Pub. L. 95-128 effective Oct. 1, 1977, see section

114 of Pub. L. 95-128, set out as a note under section 5301 of this

title.

COMPUTERIZED DATABASE OF COMMUNITY DEVELOPMENT NEEDS

Section 852 of Pub. L. 102-550 provided that:

"(a) Establishment of Demonstration Program. - Not later than the

expiration of the 1-year period beginning on the date

appropriations for the purposes of this section are made available,

the Secretary of Housing and Urban Development (hereafter in this

section referred to as the 'Secretary') shall establish and

implement a demonstration program to determine the feasibility of

assisting States and units of general local government to develop

methods, utilizing contemporary computer technology, to -

"(1) monitor, inventory, and maintain current listings of the

community development needs of the States and units of general

local government; and

"(2) coordinate strategies within States (especially among

various units of general local government) for meeting such

needs.

"(b) Integrated Database System and Computer Mapping Tool. -

"(1) Development and purposes. - In carrying out the program

under this section, the Secretary shall provide for the

development of an integrated database system and computer mapping

tool designed to efficiently (A) collect, store, process, and

retrieve information relating to priority nonhousing community

development needs within States, and (B) coordinate strategies

for meeting such needs. The integrated database system and

computer mapping tool shall be designed in a manner to coordinate

and facilitate the preparation of community development plans

under section 104(m)(1) of the Housing and Community Development

Act of 1974 [42 U.S.C. 5304(m)(1)] and to process any information

necessary for such plans.

"(2) Availability to states. - The Secretary shall make the

integrated database system and computer mapping tool developed

pursuant to this subsection available to States without charge.

"(3) Coordination with existing technology. - The Secretary

shall, to the extent practicable, utilize existing technologies

and coordinate such activities with existing data systems to

prevent duplication.

"(c) Technical Assistance. - Under the program under this

section, the Secretary shall provide consultation and advice to

States and units of general local government regarding the

capabilities and advantages of the integrated database system and

computer mapping tool developed pursuant to subsection (b) and

assistance in installing and using the database system and mapping

tool.

"(d) Grants. -

"(1) Authority and purpose. - The Secretary shall, to the

extent amounts are made available under appropriation Acts

pursuant to subsection (g), make grants to States for capital

costs relating to installation and use of the integrated database

system and computer mapping tool developed pursuant to subsection

(b).

"(2) Limitations. - The Secretary may not make more than one

grant under this subsection to any single State. The Secretary

may not make a grant under this subsection to any single State in

an amount exceeding $1,000,000.

"(3) Application and selection. - The Secretary shall provide

for the form and manner of applications for grants under this

subsection. The Secretary shall establish criteria for the

selection of States which have submitted applications to receive

grants under this section and shall select recipients according

to such criteria, which shall give priority to States having, on

a long-term basis (as determined by the Secretary), levels of

unemployment above the national average level.

"(e) State Coordination of Local Needs. - Each State that

receives a grant under subsection (d) shall annually submit to the

Secretary a report containing a summary of the priority nonhousing

community development needs within the State.

"(f) Reports by Secretary. - The Secretary shall annually submit

to the Committees on Banking, Finance and Urban Affairs [now

Committee on Financial Services] of the House of Representatives

and Banking, Housing, and Urban Affairs of the Senate, a report

containing a summary of the information submitted for the year by

States pursuant to subsection (e), which shall describe the

priority nonhousing community development needs within such States.

"(g) Authorization of Appropriations. - There are authorized to

be appropriated for each of the fiscal years 1993 and 1994,

$10,000,000 to carry out the program established under this

section."

AUTHORITY TO PROVIDE LUMP-SUM PAYMENTS TO REVOLVING LOAN FUNDS

Section 909 of Pub. L. 101-625 provided that:

"(a) In General. - Notwithstanding any other provision of law,

units of general local government receiving assistance under title

I of the Housing and Community Development Act of 1974 [42 U.S.C.

5301 et seq.] may receive funds in one payment for use in

establishing or supplementing revolving loan funds in the manner

provided under section 104(h) of such Act (42 U.S.C. 5304(h)).

"(b) Applicability. - This section shall apply to funds approved

in appropriations Acts for use under title I of the Housing and

Community Development Act of 1974 for fiscal year 1992 and any

fiscal year thereafter."

REVOLVING LOAN FUNDS

Pub. L. 102-139, title II, Oct. 28, 1991, 105 Stat. 752,

provided: "That after September 30, 1991, notwithstanding section

909 of the Cranston-Gonzalez National Affordable Housing Act

(Public Law 101-625) [set out above], no funds provided or

heretofore provided in this or any other appropriations Act shall

be used to establish or supplement a revolving fund under section

104(h) of the Housing and Community Development Act of 1974 [42

U.S.C. 5304(h)], as amended."

Similar provisions were contained in the following prior

appropriation acts:

Pub. L. 101-507, title II, Nov. 5, 1990, 104 Stat. 1365.

Pub. L. 101-144, title II, Nov. 9, 1989, 103 Stat. 850.

REPORT TO CONGRESS CONCERNING CONVERSION OF RENTAL HOUSING TO

CONDOMINIUM OR COOPERATIVE OWNERSHIP

Section 109(b) of Pub. L. 96-153 directed Secretary of Housing

and Urban Development, not later than six months after Dec. 12,

1979, to submit a report to Congress concerning conversion of

rental housing to condominium or cooperative ownership, which

report was to include an estimate of number of such conversions

which have occurred since 1970, a projection of number of such

conversions estimated to occur during period 1980 through 1985, an

assessment of impact that such conversions have had or are likely

to have on availability of housing to lower income persons, an

assessment of extent to which such conversions are concentrated in

certain areas or types of areas of country, and an assessment of

factors contributing to increase in such conversions, and which

report was also to include recommendations concerning alternative

means to minimize the adverse impact that such conversions may have

on lower income persons.

FLOODPLAIN MANAGEMENT

For provisions relating to reduction of risk of flood loss,

minimization of impact of floods on human safety, health and

welfare, and management of floodplains, see Ex. Ord. No. 11988, May

24, 1977, 42 F.R. 26951, set out as a note under section 4321 of

this title.

PROTECTION OF WETLANDS

For provisions relating to protection of wetlands, see Ex. Ord.

No. 11990, May 24, 1977, 42 F.R. 26961, set out as a note under

section 4321 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1439, 5306, 5309, 5316,

5318a, 12705 of this title.

-End-

-CITE-

42 USC Sec. 5305 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 69 - COMMUNITY DEVELOPMENT

-HEAD-

Sec. 5305. Activities eligible for assistance

-STATUTE-

(a) Enumeration of eligible activities

Activities assisted under this chapter may include only -

(1) the acquisition of real property (including air rights,

water rights, and other interests therein) which is (A) blighted,

deteriorated, deteriorating, undeveloped, or inappropriately

developed from the standpoint of sound community development and

growth; (B) appropriate for rehabilitation or conservation

activities; (C) appropriate for the preservation or restoration

of historic sites, the beautification of urban land, the

conservation of open spaces, natural resources, and scenic areas,

the provision of recreational opportunities, or the guidance of

urban development; (D) to be used for the provision of public

works, facilities, and improvements eligible for assistance under

this chapter; or (E) to be used for other public purposes;

(2) the acquisition, construction, reconstruction, or

installation (including design features and improvements with

respect to such construction, reconstruction, or installation

that promote energy efficiency) of public works, facilities

(except for buildings for the general conduct of government), and

site or other improvements;

(3) code enforcement in deteriorated or deteriorating areas in

which such enforcement, together with public or private

improvements or services to be provided, may be expected to

arrest the decline of the area;

(4) clearance, demolition, removal, reconstruction, and

rehabilitation (including rehabilitation which promotes energy

efficiency) of buildings and improvements (including interim

assistance, and financing public or private acquisition for

reconstruction or rehabilitation, and reconstruction or

rehabilitation, of privately owned properties, and including the

renovation of closed school buildings);

(5) special projects directed to the removal of material and

architectural barriers which restrict the mobility and

accessibility of elderly and handicapped persons;

(6) payments to housing owners for losses of rental income

incurred in holding for temporary periods housing units to be

utilized for the relocation of individuals and families displaced

by activities under this chapter;

(7) disposition (through sale, lease, donation, or otherwise)

of any real property acquired pursuant to this chapter or its

retention for public purposes;

(8) provision of public services, including but not limited to

those concerned with employment, crime prevention, child care,

health, drug abuse, education, energy conservation, welfare or

recreation needs, if such services have not been provided by the

unit of general local government (through funds raised by such

unit, or received by such unit from the State in which it is

located) during any part of the twelve-month period immediately

preceding the date of submission of the statement with respect to

which funds are to be made available under this chapter, and

which are to be used for such services, unless the Secretary

finds that the discontinuation of such services was the result of

events not within the control of the unit of general local

government, except that not more than 15 per centum of the amount

of any assistance to a unit of general local government (or in

the case of nonentitled communities not more than 15 per centum

statewide) under this chapter including program income may be

used for activities under this paragraph unless such unit of

general local government used more than 15 percent of the

assistance received under this chapter for fiscal year 1982 or

fiscal year 1983 for such activities (excluding any assistance

received pursuant to Public Law 98-8), in which case such unit of

general local government may use not more than the percentage or

amount of such assistance used for such activities for such

fiscal year, whichever method of calculation yields the higher

amount, except that of any amount of assistance under this

chapter (including program income) in each of fiscal years 1993

through 2003 to the City of Los Angeles and County of Los

Angeles, each such unit of general government may use not more

than 25 percent in each such fiscal year for activities under

this paragraph, and except that of any amount of assistance under

this chapter (including program income) in each of fiscal years

1999, 2000, and 2001, to the City of Miami, such city may use not

more than 25 percent in each fiscal year for activities under

this paragraph;

(9) payment of the non-Federal share required in connection

with a Federal grant-in-aid program undertaken as part of

activities assisted under this chapter;

(10) payment of the cost of completing a project funded under

title I of the Housing Act of 1949 [42 U.S.C. 1450 et seq.];

(11) relocation payments and assistance for displaced

individuals, families, businesses, organizations, and farm

operations, when determined by the grantee to be appropriate;

(12) activities necessary (A) to develop a comprehensive

community development plan, and (B) to develop a

policy-planning-management capacity so that the recipient of

assistance under this chapter may more rationally and effectively

(i) determine its needs, (ii) set long-term goals and short-term

objectives, (iii) devise programs and activities to meet these

goals and objectives, (iv) evaluate the progress of such programs

in accomplishing these goals and objectives, and (v) carry out

management, coordination, and monitoring of activities necessary

for effective planning implementation;

(13) payment of reasonable administrative costs related to

establishing and administering federally approved enterprise

zones and payment of reasonable administrative costs and carrying

charges related to (A) administering the HOME program under title

II of the Cranston-Gonzalez National Affordable Housing Act [42

U.S.C. 12721 et seq.]; and (B) the planning and execution of

community development and housing activities, including the

provision of information and resources to residents of areas in

which community development and housing activities are to be

concentrated with respect to the planning and execution of such

activities, and including the carrying out of activities as

described in section 701(e) of the Housing Act of 1954 (!1) on

August 12, 1981;

(14) provision of assistance including loans (both interim and

long-term) and grants for activities which are carried out by

public or private nonprofit entities, including (A) acquisition

of real property; (B) acquisition, construction, reconstruction,

rehabilitation, or installation of (i) public facilities (except

for buildings for the general conduct of government), site

improvements, and utilities, and (ii) commercial or industrial

buildings or structures and other commercial or industrial real

property improvements; and (C) planning;

(15) assistance to neighborhood-based nonprofit organizations,

local development corporations, nonprofit organizations serving

the development needs of the communities in nonentitlement areas,

or entities organized under section 681(d) (!1) of title 15 to

carry out a neighborhood revitalization or community economic

development or energy conservation project in furtherance of the

objectives of section 5301(c) of this title, and assistance to

neighborhood-based nonprofit organizations, or other private or

public nonprofit organizations, for the purpose of assisting, as

part of neighborhood revitalization or other community

development, the development of shared housing opportunities

(other than by construction of new facilities) in which elderly

families (as defined in section 1437a(b)(3) of this title)

benefit as a result of living in a dwelling in which the

facilities are shared with others in a manner that effectively

and efficiently meets the housing needs of the residents and

thereby reduces their cost of housing;

(16) activities necessary to the development of energy use

strategies related to a recipient's development goals, to assure

that those goals are achieved with maximum energy efficiency,

including items such as -

(A) an analysis of the manner in, and the extent to, which

energy conservation objectives will be integrated into local

government operations, purchasing and service delivery, capital

improvements budgeting, waste management, district heating and

cooling, land use planning and zoning, and traffic control,

parking, and public transportation functions; and

(B) a statement of the actions the recipient will take to

foster energy conservation and the use of renewable energy

resources in the private sector, including the enactment and

enforcement of local codes and ordinances to encourage or

mandate energy conservation or use of renewable energy

resources, financial and other assistance to be provided

(principally for the benefit of low- and moderate-income

persons) to make energy conserving improvements to residential

structures, and any other proposed energy conservation

activities;

(17) provision of assistance to private, for-profit entities,

when the assistance is appropriate to carry out an economic

development project (that shall minimize, to the extent

practicable, displacement of existing businesses and jobs in

neighborhoods) that -

(A) creates or retains jobs for low- and moderate-income

persons;

(B) prevents or eliminates slums and blight;

(D) creates or retains businesses owned by community

residents;

(E) assists businesses that provide goods or services needed

by, and affordable to, low- and moderate-income residents; or

(F) provides technical assistance to promote any of the

activities under subparagraphs (A) through (E);

(18) the rehabilitation or development of housing assisted

under section 1437o (!2) of this title;

(19) provision of technical assistance to public or nonprofit

entities to increase the capacity of such entities to carry out

eligible neighborhood revitalization or economic development

activities, which assistance shall not be considered a planning

cost as defined in paragraph (12) or administrative cost as

defined in paragraph (13);

(20) housing services, such as housing counseling in connection

with tenant-based rental assistance and affordable housing

projects assisted under title II of the Cranston-Gonzalez

National Affordable Housing Act [42 U.S.C. 12721 et seq.], energy

auditing, preparation of work specifications, loan processing,

inspections, tenant selection, management of tenant-based rental

assistance, and other services related to assisting owners,

tenants, contractors, and other entities, participating or

seeking to participate in housing activities assisted under title

II of the Cranston-Gonzalez National Affordable Housing Act;

(21) provision of assistance by recipients under this chapter

to institutions of higher education having a demonstrated

capacity to carry out eligible activities under this subsection

for carrying out such activities;

(22) provision of assistance to public and private

organizations, agencies, and other entities (including nonprofit

and for-profit entities) to enable such entities to facilitate

economic development by -

(A) providing credit (including providing direct loans and

loan guarantees, establishing revolving loan funds, and

facilitating peer lending programs) for the establishment,

stabilization, and expansion of microenterprises;

(B) providing technical assistance, advice, and business

support services (including assistance, advice, and support

relating to developing business plans, securing funding,

conducting marketing, and otherwise engaging in microenterprise

activities) to owners of microenterprises and persons

developing microenterprises; and

and counseling) to owners of microenterprises and persons

developing microenterprises;

(23) activities necessary to make essential repairs and to pay

operating expenses necessary to maintain the habitability of

housing units acquired through tax foreclosure proceedings in

order to prevent abandonment and deterioration of such housing in

primarily low- and moderate-income neighborhoods;

(24) provision of direct assistance to facilitate and expand

homeownership among persons of low and moderate income (except

that such assistance shall not be considered a public service for

purposes of paragraph (8)) by using such assistance to -

(A) subsidize interest rates and mortgage principal amounts

for low- and moderate-income homebuyers;

(B) finance the acquisition by low- and moderate-income

homebuyers of housing that is occupied by the homebuyers;

low- and moderate-income homebuyers from private lenders

(except that amounts received under this chapter may not be

used under this subparagraph to directly guarantee such

mortgage financing and grantees under this chapter may not

directly provide such guarantees);

(D) provide up to 50 percent of any downpayment required from

low- or moderate-income homebuyer; or

(E) pay reasonable closing costs (normally associated with

the purchase of a home) incurred by a low- or moderate-income

homebuyer; and

(25) lead-based paint hazard evaluation and reduction, as

defined in section 4851b of this title.

(b) Reimbursement of Secretary for administrative services

connected with rehabilitation of properties

Upon the request of the recipient of assistance under this

chapter, the Secretary may agree to perform administrative services

on a reimbursable basis on behalf of such recipient in connection

with loans or grants for the rehabilitation of properties as

authorized under subsection (a)(4) of this section.

(1) In any case in which an assisted activity described in

paragraph (14) or (17) of subsection (a) of this section is

identified as principally benefiting persons of low and moderate

income, such activity shall -

(A) be carried out in a neighborhood consisting predominately

of persons of low and moderate income and provide services for

such persons; or

(B) involve facilities designed for use predominately by

persons of low and moderate income; or

persons of low and moderate income.

(2)(A) In any case in which an assisted activity described in

subsection (a) of this section is designed to serve an area

generally and is clearly designed to meet identified needs of

persons of low and moderate income in such area, such activity

shall be considered to principally benefit persons of low and

moderate income if (i) not less than 51 percent of the residents of

such area are persons of low and moderate income; (ii) in any

metropolitan city or urban county, the area served by such activity

is within the highest quartile of all areas within the jurisdiction

of such city or county in terms of the degree of concentration of

persons of low and moderate income; or (iii) the assistance for

such activity is limited to paying assessments (including any

charge made as a condition of obtaining access) levied against

properties owned and occupied by persons of low and moderate income

to recover the capital cost for a public improvement.

(B) The requirements of subparagraph (A) do not prevent the use

of assistance under this chapter for the development,

establishment, and operation for not to exceed 2 years after its

establishment of a uniform emergency telephone number system if the

Secretary determines that -

(i) such system will contribute substantially to the safety of

the residents of the area served by such system;

(ii) not less than 51 percent of the use of the system will be

by persons of low and moderate income; and

(iii) other Federal funds received by the grantee are not

available for the development, establishment, and operation of

such system due to the insufficiency of the amount of such funds,

the restrictions on the use of such funds, or the prior

commitment of such funds for other purposes by the grantee.

The percentage of the cost of the development, establishment, and

operation of such a system that may be paid from assistance under

this chapter and that is considered to benefit low and moderate

income persons is the percentage of the population to be served

that is made up of persons of low and moderate income.

(3) Any assisted activity under this chapter that involves the

acquisition or rehabilitation of property to provide housing shall

be considered to benefit persons of low and moderate income only to

the extent such housing will, upon completion, be occupied by such

persons.

(4) For the purposes of subsection (c)(1)(C) of this section -

(A) if an employee resides in, or the assisted activity through

which he or she is employed, is located in a census tract that

meets the Federal enterprise zone eligibility criteria, the

employee shall be presumed to be a person of low- or

moderate-income; or

(B) if an employee resides in a census tract where not less

than 70 percent of the residents have incomes at or below 80

percent of the area median, the employee shall be presumed to be

a person of low or moderate income.

(d) Training program

The Secretary shall implement, using funds recaptured pursuant to

section 5318(o) of this title, an on-going education and training

program for officers and employees of the Department, especially

officers and employees of area and other field offices of the

Department, who are responsible for monitoring and administering

activities pursuant to paragraphs (14), (15), and (17) of

subsection (a) of this section for the purpose of ensuring that (A)

such personnel possess a thorough understanding of such activities;

and (B) regulations and guidelines are implemented in a consistent

fashion.

(e) Guidelines for evaluating and selecting economic development

projects

(1) Establishment

The Secretary shall establish, by regulation, guidelines to

assist grant recipients under this chapter to evaluate and select

activities described in subsection (a)(14), (15), and (17) of

this section for assistance with grant amounts. The Secretary

shall not base a determination of eligibility of the use of funds

under this chapter for such assistance solely on the basis that

the recipient fails to achieve one or more of the guidelines'

objectives as stated in paragraph (2).

(2) Project costs and financial requirements

The guidelines established under this subsection shall include

the following objectives:

(A) The project costs of such activities are reasonable.

(B) To the extent practicable, reasonable financial support

has been committed for such activities from non-Federal sources

prior to disbursement of Federal funds.

provided for such activities do not substantially reduce the

amount of non-Federal financial support for the activity.

(D) Such activities are financially feasible.

(E) To the extent practicable, such activities provide not

more than a reasonable return on investment to the owner.

(F) To the extent practicable, grant amounts used for the

costs of such activities are disbursed on a pro rata basis with

amounts from other sources.

(3) Public benefit

The guidelines established under this subsection shall provide

that the public benefit provided by the activity is appropriate

relative to the amount of assistance provided with grant amounts

under this chapter.

(f) Assistance to for-profit entities

In any case in which an activity described in paragraph (17) of

subsection (a) of this section is provided assistance such

assistance shall not be limited to activities for which no other

forms of assistance are available or could not be accomplished but

for that assistance.

(g) Microenterprise and small business program requirements

In developing program requirements and providing assistance

pursuant to paragraph (17) of subsection (a) of this section to a

microenterprise or small business, the Secretary shall -

(1) take into account the special needs and limitations arising

from the size of the entity; and

(2) not consider training, technical assistance, or other

support services costs provided to small businesses or

microenterprises or to grantees and subgrantees to develop the

capacity to provide such assistance, as a planning cost pursuant

to subsection (a)(12) of this section or an administrative cost

pursuant to subsection (a)(13) of this section.

(h) Prohibition on use of assistance for employment relocation

activities

Notwithstanding any other provision of law, no amount from a

grant under section 5306 of this title made in fiscal year 1999 or

any succeeding fiscal year may be used to assist directly in the

relocation of any industrial or commercial plant, facility, or

operation, from 1 area to another area, if the relocation is likely

to result in a significant loss of employment in the labor market

area from which the relocation occurs.

-SOURCE-

(Pub. L. 93-383, title I, Sec. 105, Aug. 22, 1974, 88 Stat. 641;

Pub. L. 94-375, Sec. 15(b), Aug. 3, 1976, 90 Stat. 1076; Pub. L.

95-128, title I, Sec. 105, Oct. 12, 1977, 91 Stat. 1116; Pub. L.

95-557, title I, Sec. 103(e), Oct. 31, 1978, 92 Stat. 2084; Pub. L.

96-399, title I, Sec. 104(c)-(e), Oct. 8, 1980, 94 Stat. 1616-1618;

Pub. L. 97-35, title III, Secs. 303(a), 309(e)-(g), Aug. 13, 1981,

95 Stat. 387, 396; Pub. L. 98-181, title I, Sec. 105(a), (b)(1),

(c)-(e), title III, Sec. 302(a), Nov. 30, 1983, 97 Stat. 1163,

1164, 1206; Pub. L. 98-479, title I, Sec. 101(a)(8), (9)(A), Oct.

17, 1984, 98 Stat. 2219; Pub. L. 100-242, title V, Secs. 504, 510,

511, Feb. 5, 1988, 101 Stat. 1925, 1929; Pub. L. 100-404, title I,

Aug. 19, 1988, 102 Stat. 1019; Pub. L. 101-625, title IX, Secs.

907, 908, Nov. 28, 1990, 104 Stat. 4387, 4389; Pub. L. 102-550,

title VIII, Secs. 805, 806(a), (b), (c), 807(a), (b)(3), (c)(1),

(d)-(f), 809, title X, Sec. 1012(f), Oct. 28, 1992, 106 Stat. 3846,

3847, 3849, 3850, 3905; Pub. L. 103-195, Sec. 2(a), Dec. 14, 1993,

107 Stat. 2297; Pub. L. 103-233, title II, Sec. 207, Apr. 11, 1994,

108 Stat. 365; Pub. L. 104-134, title I, Sec. 101(e) [title II,

Sec. 225], Apr. 26, 1996, 110 Stat. 1321-257, 1321-291; renumbered

title I, Pub. L. 104-140, Sec. 1(a), May 2, 1996, 110 Stat. 1327;

Pub. L. 104-204, title II, Sec. 220, Sept. 26, 1996, 110 Stat.

2906; Pub. L. 105-276, title II, Secs. 218, 232, title V, Secs.

588, 596(a), Oct. 21, 1998, 112 Stat. 2487, 2492, 2651, 2659; Pub.

L. 106-377, Sec. 1(a)(1) [title II, Sec. 224], Oct. 27, 2000, 114

Stat. 1441, 1441A-30; Pub. L. 107-116, title VI, Sec. 631, Jan. 10,

2002, 115 Stat. 2227.)

-REFTEXT-

REFERENCES IN TEXT

Public Law 98-8, referred to in subsec. (a)(8), is Pub. L. 98-8,

Mar. 24, 1983, 97 Stat. 13. Provisions of that Act relating to

assistance under this chapter are not classified to the Code. For

complete classification of this Act to the Code, see Tables.

The Housing Act of 1949, referred to in subsec. (a)(10), is act

July 15, 1949, ch. 338, 63 Stat. 413, as amended. Title I of the

Housing Act of 1949 was classified generally to subchapter II (Sec.

1450 et seq.) of chapter 8A of this title, and was omitted from the

Code pursuant to section 5316 of this title which terminated

authority to make grants and loans under such title I after Jan. 1,

1975. For complete classification of this Act to the Code, see

Short Title note set out under section 1441 of this title and

Tables.

The Cranston-Gonzalez National Affordable Housing Act, referred

to in subsec. (a)(13)(A), (20), is Pub. L. 101-625, Nov. 28, 1990,

104 Stat. 4079. Title II of the Act, known as the HOME Investment

Partnerships Act, is classified principally to subchapter II (Sec.

12721 et seq.) of chapter 130 of this title. For complete

classification of this Act to the Code, see Short Title note set

out under section 12701 of this title and Tables.

Section 701(e) of the Housing Act of 1954, referred to in subsec.

(a)(13)(B), is section 701(e) of act Aug. 2, 1954, ch. 649, 68

Stat. 640, as amended, which was classified to section 461(e) of

former Title 40, Public Buildings, Property, and Works, and was

repealed by Pub. L. 97-35, title III, Sec. 313(b), Aug. 13, 1981,

95 Stat. 398.

Section 681(d) of title 15, referred to in subsec. (a)(15), was

repealed by Pub. L. 104-208, div. D, title II, Sec. 208(b)(3)(A),

Sept. 30, 1996, 110 Stat. 3009-742.

Section 1437o of this title, referred to in subsec. (a)(18), was

repealed by Pub. L. 101-625, title II, Sec. 289(b), Nov. 28, 1990,

104 Stat. 4128.

-COD-

CODIFICATION

In subsec. (a)(13), "August 12, 1981" substituted for "the date

prior to the date of enactment of the Housing and Community

Development Amendments of 1981".

-MISC1-

AMENDMENTS

2002 - Subsec. (a)(8). Pub. L. 107-116 substituted "through 2003"

for "through 2001".

2000 - Subsec. (a)(8). Pub. L. 106-377 substituted "1993 through

2001 to the City of Los Angeles" for "1993 through 2000 to the City

of Los Angeles".

1998 - Subsec. (a)(8). Pub. L. 105-276, Sec. 596(a), which

directed the substitution of "2000" for "1998", was executed by

substituting "2000" for "1999", to reflect the probable intent of

Congress and the amendment by Pub. L. 105-276, Sec. 218, see below.

Pub. L. 105-276, Sec. 232, substituted "each of fiscal years

1999, 2000, and 2001, to the City of Miami, such city may use not

more than 25 percent in each fiscal year for activities under this

paragraph;" for "fiscal year 1994 to the City of Pittsburgh,

Pennsylvania, such city may use not more than 20 percent in each

such fiscal year for activities under this paragraph;".

Pub. L. 105-276, Sec. 218, substituted "1999" for "1998".

Subsec. (h). Pub. L. 105-276, Sec. 588, added subsec. (h).

1996 - Subsec. (a)(4). Pub. L. 104-134, Sec. 101[(e)] [title II,

Sec. 225(1)], inserted "reconstruction," after "removal," and

substituted "acquisition for reconstruction or rehabilitation, and

reconstruction or rehabilitation" for "acquisition for

rehabilitation, and rehabilitation".

Subsec. (a)(8). Pub. L. 104-204 substituted "through 1998" for

"through 1997".

Subsec. (a)(13). Pub. L. 104-134, Sec. 101(e) [title II, Sec.

225(2)], struck out "and" at end.

Subsec. (a)(19). Pub. L. 104-134, Sec. 101(e) [title II, Sec.

225(3), (6)], redesignated par. (20) as (19) and struck out former

par. (19) which read as follows: "provision of assistance to

facilitate substantial reconstruction of housing owned and occupied

by low and moderate income persons (A) where the need for the

reconstruction was not determinable until after rehabilitation

under this section had already commenced, or (B) where the

reconstruction is part of a neighborhood rehabilitation effort and

the grantee (i) determines the housing is not suitable for

rehabilitation, and (ii) demonstrates to the satisfaction of the

Secretary that the cost of substantial reconstruction is

significantly less than the cost of new construction and less than

the fair market value of the property after substantial

reconstruction;".

Subsec. (a)(20). Pub. L. 104-134, Sec. 101(e) [title II, Sec.

225(6)], redesignated par. (21) relating to housing services as

(20). Former par. (20) redesignated (19).

Subsec. (a)(21). Pub. L. 104-134, Sec. 101(e) [title II, Sec.

225(6)], redesignated par. (22) as (21). Former par. (21), relating

to housing services, redesignated (20). Another former par. (21),

relating to lead-based paint hazard evaluation and reduction,

redesignated (25).

Subsec. (a)(22). Pub. L. 104-134, Sec. 101(e) [title II, Sec.

225(6)], redesignated par. (23) as (22). Former par. (22)

redesignated (21).

Subsec. (a)(23). Pub. L. 104-134, Sec. 101(e) [title II, Sec.

225(4), (6)], redesignated par. (24) as (23) and struck out "and"

at end. Former par. (23) redesignated (22).

Subsec. (a)(24). Pub. L. 104-134, Sec. 101(e) [title II, Sec.

225(5), (6)], redesignated par. (25) as (24) and substituted ";

and" for period at end. Former par. (24) redesignated (23).

Subsec. (a)(25). Pub. L. 104-134, Sec. 101(e) [title II, Sec.

225(7)], redesignated par. (21) relating to lead-based paint hazard

evaluation and reduction as (25). Former par. (25) redesignated

(24).

1994 - Subsec. (a)(13). Pub. L. 103-233, Sec. 207(a), inserted

cl. (A) and designated provisions after cl. (A) as cl. (B).

Subsec. (a)(21). Pub. L. 103-233, Sec. 207(b), inserted "in

connection with tenant-based rental assistance and affordable

housing projects assisted under title II of the Cranston-Gonzalez

National Affordable Housing Act" after "housing counseling" and

substituted "assisted under title II of the Cranston-Gonzalez

National Affordable Housing Act" for "authorized under this

section, or under title II of the Cranston-Gonzalez National

Affordable Housing Act, except that activities under this paragraph

shall be subject to any limitation on administrative expenses

imposed by any law".

1993 - Subsec. (a)(8). Pub. L. 103-195 struck out "and" after

"higher amount," and inserted before semicolon at end ", and except

that of any amount of assistance under this chapter (including

program income) in fiscal year 1994 to the City of Pittsburgh,

Pennsylvania, such city may use not more than 20 percent in each

such fiscal year for activities under this paragraph".

1992 - Subsec. (a)(3). Pub. L. 102-550, Sec. 807(e), substituted

"public or private improvements or" for "public improvements and".

Subsec. (a)(8). Pub. L. 102-550, Sec. 807(a)(1), inserted before

semicolon at end ", and except that of any amount of assistance

under this chapter (including program income) in each of fiscal

years 1993 through 1997 to the City of Los Angeles and County of

Los Angeles, each such unit of general government may use not more

than 25 percent in each such fiscal year for activities under this

paragraph".

Subsec. (a)(13). Pub. L. 102-550, Sec. 809, inserted "payment of

reasonable administrative costs related to establishing and

administering federally approved enterprise zones and" after

"(13)".

Subsec. (a)(14). Pub. L. 102-550, Sec. 807(d), inserted

"provision of assistance including loans (both interim and

long-term) and grants for" before "activities".

Subsec. (a)(15). Pub. L. 102-550, Sec. 807(f), inserted

"nonprofit organizations serving the development needs of the

communities in nonentitlement areas," after "corporations,".

Subsec. (a)(20). Pub. L. 102-550, Sec. 807(a)(2)-(4), added par.

(20) and redesignated former par. (20) as (25).

Subsec. (a)(21). Pub. L. 102-550, Sec. 1012(f), added par. (21)

relating to lead-based paint hazard evaluation and reduction.

Pub. L. 102-550, Sec. 807(a)(2)-(4), added par. (21) relating to

housing services.

Subsec. (a)(22). Pub. L. 102-550, Sec. 807(a)(2)-(4), added par.

(22).

Subsec. (a)(23) to (25). Pub. L. 102-550, Sec. 807(b)(3), amended

directory language of Pub. L. 101-625, Sec. 907(b)(2). See 1990

Amendment note below.

Pub. L. 102-550, Sec. 807(a)(2)-(4), added pars. (23) and (24)

and redesignated former par. (20) as (25).

Subsec. (c)(4). Pub. L. 102-550, Sec. 806(e), added par. (4).

Subsec. (d). Pub. L. 102-550, Sec. 805, added subsec. (d).

Subsec. (e). Pub. L. 102-550, Sec. 806(a), added subsec. (e).

Subsec. (f). Pub. L. 102-550, Sec. 806(b), added subsec. (f).

Subsec. (g). Pub. L. 102-550, Sec. 807(c)(1), added subsec. (g).

1990 - Subsec. (a)(8). Pub. L. 101-625, Sec. 908, inserted "(or

in the case of nonentitled communities not more than 15 per centum

statewide)" after "assistance to a unit of general local

government" and "including program income" before "may be used for

activities".

Subsec. (a)(17). Pub. L. 101-625, Sec. 907(a), amended par. (17)

generally. Prior to amendment, par. (17) read as follows:

"provision of assistance to private, for-profit entities, when the

assistance is necessary or appropriate to carry out an economic

development project;".

Subsec. (a)(20). Pub. L. 101-625, Sec. 907(b)(1), added par.

(20).

Subsec. (a)(23) to (25). Pub. L. 101-625, Sec. 907(b)(2), as

amended by Pub. L. 102-550, Sec. 807(b)(3), directed the amendment

of subsec. (a) by inserting "and" at end of par. (23), substituting

a period for "; and" at end of par. (24), and striking out par.

(25). This amendment was not executed pursuant to Pub. L. 104-204

which provided that subsec. (a)(25) shall continue to be effective

and the termination and conforming provisions of section 907(b)(2)

of Pub. L. 101-625 shall not be effective. See Effective Date of

1990 Amendments note below.

1988 - Subsec. (a)(15). Pub. L. 100-242, Sec. 504(a), substituted

"assistance" for "grants" in two places.

Subsec. (a)(16). Pub. L. 100-242, Sec. 504(b), amended par. (16)

generally, revising and restating as subpars. (A) and (B)

provisions of former subpars. (A) to (I).

Subsec. (a)(19). Pub. L. 100-242, Sec. 510, added par. (19).

Subsec. (c)(2). Pub. L. 100-242, Sec. 511, designated existing

provision as subpar. (A), redesignated subpars. (A) and (B) as cls.

(i) and (ii), respectively, and added subpar. (B).

Subsec. (c)(2)(A)(iii). Pub. L. 100-404 added cl. (iii).

1984 - Subsec. (a)(8). Pub. L. 98-479, Sec. 101(a)(8)(A),

inserted "fiscal year 1982 or".

Subsec. (a)(15). Pub. L. 98-479, Sec. 101(a)(8)(B), substituted

"and" for "including" before "grants to neighborhood-based

nonprofit organizations".

Subsec. (c)(2)(B). Pub. L. 98-479, Sec. 101(a)(9)(A), substituted

"in any metropolitan city or urban county, the area served by such

activity is within the highest quartile of all areas within the

jurisdiction of such city or county in terms of the degree of

concentration of persons of low and moderate income" for "in any

jurisdiction having no areas meeting the requirements of

subparagraph (A), the area served by such activity has a larger

proportion of persons of low and moderate income than not less than

75 percent of the other areas in the jurisdiction of the

recipient".

1983 - Subsec. (a)(2). Pub. L. 98-181, Sec. 105(a), amended par.

(2) generally, inserting exception for buildings for the general

conduct of government, and striking out provisions which enumerated

types of public works, facilities, and site or other improvements,

including neighborhood facilities, centers for the handicapped,

senior centers, historic properties, etc.

Subsec. (a)(8). Pub. L. 98-181, Sec. 105(b)(1), substituted "not

more than 15 per centum" for "not more than 10 per centum" and

inserted at the end thereof "unless such unit of general local

government used more than 15 percent of the assistance received

under this chapter for fiscal year 1983 for such activities

(excluding any assistance received pursuant to Public Law 98-8), in

which case such unit of general local government may use not more

than the percentage or amount of such assistance used for such

activities for such fiscal year, whichever method of calculation

yields the higher amount".

Subsec. (a)(14). Pub. L. 98-181, Sec. 105(c), substituted "public

facilities (except for buildings for the general conduct of

government)" for "public facilities".

Subsec. (a)(15). Pub. L. 98-181, Sec. 105(d), inserted provision

for assistance for shared housing facilities for elderly families,

as defined in section 1437a(b)(3) of this title.

Subsec. (a)(18). Pub. L. 98-181, Sec. 302(a), added par. (18).

Subsec. (c). Pub. L. 98-181, Sec. 105(e), added subsec. (c).

1981 - Subsec. (a). Pub. L. 97-35, Sec. 309(f)(1), in provisions

preceding par. (1) substituted provisions relating to activities

eligible for assistance for provisions relating to activities of a

Community Development Program eligible for assistance.

Subsec. (a)(6). Pub. L. 97-35, Sec. 309(f)(2), struck out

"program" after "displaced by".

Subsec. (a)(8). Pub. L. 97-35, Sec. 303(a)(1), added new par. (8)

which generally revised and restructured provisions relating to

provision of public services if such services have not been

provided by the relevant unit of local government or State in which

such unit is located, and limited amount of assistance under this

paragraph to not more than 10 per centum of the amount of any

assistance to a unit of general local government under this

chapter.

Subsec. (a)(9). Pub. L. 97-35, Sec. 309(f)(3), substituted

"activities assisted under this chapter" for "Community Development

Program".

Subsec. (a)(11). Pub. L. 97-35, Sec. 309(f)(4), struck out "to

the community development program" after "appropriate".

Subsec. (a)(13). Pub. L. 97-35, Sec. 303(a)(2), inserted

reference to the carrying out of activities as described in section

701(e) of the Housing Act of 1954 on Aug. 12, 1981.

Subsec. (a)(14). Pub. L. 97-35, Sec. 309(f)(5), substituted

"which are carried out by public or private non-profit entities"

for "(as specifically described in the application submitted

pursuant to section 5304 of this title) which are carried out by

public or private non-profit entities when such activities are

necessary or appropriate to meeting the needs and objectives of the

community development plan described in section 5304(a)(1) of this

title".

Subsec. (a)(15). Pub. L. 97-35, Sec. 309(f)(6), struck out "(as

specifically described in the application submitted pursuant to

section 5304 of this title)" after "conservation project".

Subsec. (a)(17). Pub. L. 97-35, Sec. 303(a)(5), added par. (17).

Subsec. (b). Pub. L. 97-35, Sec. 309(g), substituted "assistance"

for "a grant".

1980 - Subsec. (a)(2). Pub. L. 96-399, Sec. 104(c)(1), inserted

provisions respecting design features and improvements, power

generation and distribution facilities, park, etc., facilities, and

recycling and conversion facilities.

Subsec. (a)(4). Pub. L. 96-399, Sec. 104(c)(2), (d), inserted

provisions respecting rehabilitation which promotes energy

efficiency and the renovation of closed school buildings.

Subsec. (a)(8). Pub. L. 96-399, Sec. 104(c)(3), inserted

reference to energy conservation.

Subsec. (a)(14). Pub. L. 96-399, Sec. 104(c)(5), (e)(1), inserted

provision respecting the application pursuant to section 5304 of

this title.

Subsec. (a)(15). Pub. L. 96-399, Sec. 104(c)(4), (5), (e)(2),

inserted provisions respecting energy conservation, and the

application submitted pursuant to section 5304 of this title.

Subsec. (a)(16). Pub. L. 96-399, Sec. 104(c)(5), added par. (16).

1978 - Subsec. (a)(11). Pub. L. 95-557 inserted "displaced" after

"payments and assistance for" and substituted "when determined by

the grantee to be appropriate to the community development program"

for "displaced by activities assisted under this chapter".

1977 - Subsec. (a). Pub. L. 95-128, Sec. 105(a), inserted in

introductory text description of activities covered including the

words "These activities".

Subsec. (a)(4). Pub. L. 95-128, Sec. 105(b), substituted

"(including interim assistance, and financing public or private

acquisition for rehabilitation, and rehabilitation, of privately

owned properties)" for "(including interim assistance and financing

rehabilitation of privately owned properties when incidental to

other activities)".

Subsec. (a)(8). Pub. L. 95-128, Sec. 105(c), struck out from cl.

(A) "economic development," before "crime prevention" and

authorized the program to provide public services only if such

services have not been provided by the unit of general local

government during any part of the twelve-month period preceding the

date of application submission for funds to be made available under

this chapter, and to be utilized for such services, unless the

Secretary finds that the discontinuation of such services was the

result of events not within the control of the applicant.

Subsec. (a)(14), (15). Pub. L. 95-128, Sec. 105(d), added pars.

(14) and (15).

1976 - Subsec. (a)(2). Pub. L. 94-375 inserted "centers for the

handicapped," after "neighborhood facilities,".

EFFECTIVE DATE OF 2002 AMENDMENT

Amendment by Pub. L. 107-116 effective Sept. 30, 2001, see

section 603 of Pub. L. 107-116, set out as a note under section

1715n of Title 12, Banks and Banking.

EFFECTIVE DATE OF 1998 AMENDMENT

Amendment by title V of Pub. L. 105-276 effective and applicable

beginning upon Oct. 1, 1999, except as otherwise provided, with

provision that Secretary may implement amendment before such date,

except to extent that such amendment provides otherwise, and with

savings provision, see section 503 of Pub. L. 105-276, set out as a

note under section 1437 of this title.

Pub. L. 105-276, title V, Sec. 596(b), Oct. 21, 1998, 112 Stat.

2659, provided that: "The amendment made by this section [amending

this section] is made on, and shall apply beginning upon, the date

of the enactment of this Act [Oct. 21, 1998]."

EFFECTIVE DATE OF 1994 AMENDMENT

Amendment by Pub. L. 103-233 applicable with respect to any

amounts made available to carry out subchapter II (Sec. 12721 et

seq.) of chapter 130 of this title after Apr. 11, 1994, and any

amounts made available to carry out that subchapter before that

date that remain uncommitted on that date, with Secretary to issue

any regulations necessary to carry out such amendment not later

than end of 45-day period beginning on that date, see section 209

of Pub. L. 103-233, set out as a note under section 5301 of this

title.

EFFECTIVE DATE OF 1990 AMENDMENTS

Title II of Pub. L. 104-204, Sept. 26, 1996, 110 Stat. 2882,

2887, provided in part: "That for fiscal year 1997 and thereafter,

section 105(a)(25) of such Act [section 105(a)(25) [now (24)] of

Pub. L. 93-383, classified to subsec. (a)(24) of this section],

shall continue to be effective and the termination and conforming

provisions of section 907(b)(2) of the Cranston-Gonzalez National

Affordable Housing Act [Pub. L. 101-625, set out below] shall not

be effective".

Section 101(e) [title II] of Pub. L. 104-134, Apr. 26, 1996, 110

Stat. 1321-257, 1321-265, 1321-272, provided in part: "That section

105(a)(25) of such Act [section 105(a)(25) [now (24)] of Pub. L.

93-383, classified to subsec. (a)(24) of this section], as added by

section 907(b)(1) of the Cranston-Gonzalez National Affordable

Housing Act [Pub. L. 101-625], shall continue to be effective after

September 30, 1995, notwithstanding section 907(b)(2) of such Act

[set out below]".

Pub. L. 104-120, Sec. 3(a), Mar. 28, 1996, 110 Stat. 835,

provided that: "Notwithstanding the amendments made by section

907(b)(2) of the Cranston-Gonzalez National Affordable Housing Act

[Pub. L. 101-625, set out below], section 105(a)(25) of the Housing

and Community Development Act of 1974 [subsec. (a)(25) [now (24)]

of this section], as in existence on September 30, 1995, shall

apply to the use of assistance made available under title I of the

Housing and Community Development Act of 1974 [42 U.S.C. 5301 et

seq.] during fiscal year 1996."

Amendment by section 907(b)(2) of Pub. L. 101-625, as amended by

Pub. L. 102-550, title VIII, Sec. 807(b)(1), (2), Oct. 28, 1992,

106 Stat. 3849, effective "October 1, 1994 (or October 1, 1995, if

the Secretary determines that such later date is necessary to

continue to provide homeownership assistance until homeownership

assistance is available under title II of the Cranston-Gonzalez

National Affordable Housing Act [42 U.S.C. 12721 et seq.])". [Date

extended by Secretary to Oct. 1, 1995, see 59 F.R. 49954, Sept. 30,

1994.]

EFFECTIVE DATE OF 1984 AMENDMENT

Section 101(a)(9)(B) of Pub. L. 98-479 provided that: "The

amendment made by subparagraph (A) [amending this section] shall

take effect upon the enactment of this Act [Oct. 17, 1984] and

shall be implemented through an interim instruction issued by the

Secretary of Housing and Urban Development. Not later than June 1,

1985, the Secretary of Housing and Urban Development shall issue a

final regulation regarding the provisions of such amendment."

EFFECTIVE DATE OF 1983 AMENDMENT

Amendment by Pub. L. 98-181 applicable only to funds available

for fiscal year 1984 and thereafter, see section 110(b) of Pub. L.

98-181, as amended, set out as a note under section 5316 of this

title.

EFFECTIVE DATE OF 1981 AMENDMENT

Amendment by Pub. L. 97-35 effective Oct. 1, 1981, see section

371 of Pub. L. 97-35, set out as an Effective Date note under

section 3701 of Title 12, Banks and Banking.

EFFECTIVE DATE OF 1978 AMENDMENT

Amendment by Pub. L. 95-557 effective Oct. 1, 1978, see section

104 of Pub. L. 95-557, set out as a note under section 1709 of

Title 12, Banks and Banking.

EFFECTIVE DATE OF 1977 AMENDMENT

Amendment by Pub. L. 95-128 effective Oct. 1, 1977, see section

114 of Pub. L. 95-128, set out as a note under section 5301 of this

title.

NON-FEDERAL COST SHARING OF ARMY CORPS OF ENGINEERS PROJECTS

Pub. L. 105-276, title II, Oct. 21, 1998, 112 Stat. 2478,

provided in part that: "For any fiscal year, of the amounts made

available as emergency funds under the heading 'Community

Development Block Grants Fund' and notwithstanding any other

provision of law, not more than $250,000 may be used for the

non-Federal cost-share of any project funded by the Secretary of

the Army through the Corps of Engineers."

BROWNFIELDS PROJECTS AS ELIGIBLE CDBG ACTIVITY

Pub. L. 105-276, title II, Sec. 205, Oct. 21, 1998, 112 Stat.

2484, provided that: "For fiscal years 1998, 1999, and all fiscal

years thereafter, States and entitlement communities may use funds

allocated under the community development block grants program

under title I of the Housing and Community Development Act of 1974

[42 U.S.C. 5301 et seq.] for environmental cleanup and economic

development activities related to Brownfields projects in

conjunction with the appropriate environmental regulatory agencies,

as if such activities were eligible under section 105(a) of such

Act [42 U.S.C. 5305(a)]."

Similar provisions were contained in the following prior

appropriation act:

Pub. L. 105-65, title II, Sec. 209, Oct. 27, 1997, 111 Stat.

1366.

GAO STUDY OF USE OF GRANTS FOR ECONOMIC DEVELOPMENT PROJECTS

Section 806(c) of Pub. L. 102-550 directed Comptroller General to

conduct a study of use of grant amounts under this chapter for

activities described in paragraphs (14), (15), and (17) of subsec.

(a) of this section, including an evaluation of whether the

activities for which such amounts are being used under such

paragraphs further the goals and objectives of such program, as

established in section 5301 of this title, and directed Comptroller

General to submit a report to Congress regarding the findings of

the study and recommendations not later than the expiration of the

18-month period beginning on Oct. 28, 1992.

ENHANCING JOB QUALITY; REPORT TO CONGRESS

Section 806(d) of Pub. L. 102-550 directed Comptroller General,

not later than 1 year after Oct. 28, 1992, to submit to Congress a

report on types and quality of jobs created or retained through

assistance provided pursuant to this chapter and the extent to

which projects and activities assisted under this chapter enhance

the upward mobility and future earning capacity of low- and

moderate-income persons who are benefited by such projects and

activities.

REPORT TO CONGRESS ON EFFECTIVENESS OF ASSISTANCE IN PROMOTING

DEVELOPMENT OF MICROENTERPRISES

Section 807(c)(4) of Pub. L. 102-550 directed Secretary, not

later than 18 months after Oct. 28, 1992, to submit to Congress a

report on effectiveness of assistance provided through this chapter

in promoting development of microenterprises, including a review of

any statutory or regulatory provision that impedes development of

microenterprises.

COMMUNITY INVESTMENT CORPORATION DEMONSTRATION

Section 853 of Pub. L. 102-550 provided for establishment of a

demonstration program to develop ways to improve access to capital

for initiatives which would benefit specific targeted geographic

areas and to test new models for bringing credit and investment

capital to low-income persons in targeted geographic areas, using

depository institution holding companies and eligible local

nonprofit organizations selected by Secretary of Housing and Urban

Development to provide capital assistance, grants, and training

under direction of an advisory board. Funds for the program were

authorized for fiscal years 1993 and 1994 to remain available until

expended.

WAIVER OF LIMITATION ON AMOUNT OF FUNDS WHICH MAY BE USED IN FISCAL

YEARS 1982, 1983, AND 1984 FOR PUBLIC SERVICE ACTIVITIES

Section 303(b) of Pub. L. 97-35, as amended Pub. L. 98-181, title

I, Sec. 105(b)(2), Nov. 30, 1983, 97 Stat. 1164, authorized

Secretary, in fiscal years 1982 and 1983, to waive the limitation

on amount of funds which could be used for public services

activities under subsec. (a)(8) of this section, in the case of a

unit of general local government which, during fiscal year 1981,

allocated more than 10 per centum of funds received under this

chapter for such activities.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 5304, 5306, 5307, 5308,

5318 of this title; title 12 sections 4707, 4712.

-FOOTNOTE-

(!1) See References in Text note below.

(!2) See References in Text note below.

-End-

-CITE-

42 USC Sec. 5306 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 69 - COMMUNITY DEVELOPMENT

-HEAD-

Sec. 5306. Allocation and distribution of funds

-STATUTE-

(a) Amounts allocated to Indian tribes, discretionary fund, and

metropolitan cities and urban counties; limitations on amount of

annual grants

(1) For each fiscal year, of the amount approved in an

appropriation Act under section 5303 of this title for grants in

any year (excluding the amounts provided for use in accordance with

section 5307 of this title), the Secretary shall reserve for grants

to Indian tribes 1 percent of the amount appropriated under such

section. The Secretary shall provide for distribution of amounts

under this paragraph to Indian tribes on the basis of a competition

conducted pursuant to specific criteria for the selection of Indian

tribes to receive such amounts. The criteria shall be contained in

a regulation promulgated by the Secretary after notice and public

comment. Notwithstanding any other provision of this Act, such

grants to Indian tribes shall not be subject to the requirements of

section 5304 of this title, except subsections (f), (g), and (k) of

such section.

(2) After reserving such amounts for Indian tribes, the Secretary

shall allocate amounts provided for use under section 5307 of this

title.

(3) Of the amount remaining after allocations pursuant to

paragraphs (1) and (2), 70 percent shall be allocated by the

Secretary to metropolitan cities and urban counties. Except as

otherwise specifically authorized, each metropolitan city and urban

county shall be entitled to an annual grant from such allocation in

an amount not exceeding its basic amount computed pursuant to

paragraph (1) or (2) of subsection (b) of this section.

(b) Computation of amount allocated to metropolitan cities and

urban counties

(1) The Secretary shall determine the amount to be allocated to

each metropolitan city which shall be the greater of an amount that

bears the same ratio to the allocation for all metropolitan areas

as either -

(A) the average of the ratios between -

(i) the population of that city and the population of all

metropolitan areas;

(ii) the extent of poverty in that city and the extent of

poverty in all metropolitan areas; and

(iii) the extent of housing overcrowding in that city and the

extent of housing overcrowding in all metropolitan areas; or

(B) the average of the ratios between -

(i) the extent of growth lag in that city and the extent of

growth lag in all metropolitan cities;

(ii) the extent of poverty in that city and the extent of

poverty in all metropolitan areas; and

(iii) the age of housing in that city and the age of housing

in all metropolitan areas.

(2) The Secretary shall determine the amount to be allocated to

each urban county, which shall be the greater of an amount that

bears the same ratio to the allocation for all metropolitan areas

as either -

(A) the average of the ratios between -

(i) the population of that urban county and the population of

all metropolitan areas;

(ii) the extent of poverty in that urban county and the

extent of poverty in all metropolitan areas; and

(iii) the extent of housing overcrowding in that urban county

and the extent of housing overcrowding in all metropolitan

areas; or

(B) the average of the ratios between -

(i) the extent of growth lag in that urban county and the

extent of growth lag in all metropolitan cities and urban

counties;

(ii) the extent of poverty in that urban county and the

extent of poverty in all metropolitan areas; and

(iii) the age of housing in that urban county and the age of

housing in all metropolitan areas.

(3) In determining the average of ratios under paragraphs (1)(A)

and (2)(A), the ratio involving the extent of poverty shall be

counted twice, and each of the other ratios shall be counted once;

and in determining the average of ratios under paragraphs (1)(B)

and (2)(B), the ratio involving the extent of growth lag shall be

counted once, the ratio involving the extent of poverty shall be

counted one and one-half times, and the ratio involving the age of

housing shall be counted two and one-half times.

(4) In computing amounts or exclusions under this section with

respect to any urban county, there shall be excluded units of

general local government located in the county the populations of

which are not counted in determining the eligibility of the urban

county to receive a grant under this subsection, except that there

shall be included any independent city (as defined by the Bureau of

the Census) which -

(A) is not part of any county;

(B) is not eligible for a grant pursuant to subsection (b)(1)

of this section;

(D) has entered into cooperation agreements with the urban

county which provide that the urban county is to undertake or to

assist in the undertaking of essential community development and

housing assistance activities with respect to such independent

city; and

(E) is not included as a part of any other unit of general

local government for purposes of this section.

Any independent city which is included in any fiscal year for

purposes of computing amounts pursuant to the preceding sentence

shall not be eligible to receive assistance under subsection (d) of

this section with respect to such fiscal year.

(5) In computing amounts under this section with respect to any

urban county, there shall be included all of the area of any unit

of local government which is part of, but is not located entirely

within the boundaries of, such urban county if the part of such

unit of local government which is within the boundaries of such

urban county would otherwise be included in computing the amount

for such urban county under this section, and if the part of such

unit of local government which is not within the boundaries of such

urban county is not included as a part of any other unit of local

government for the purpose of this section. Any amount received by

such urban county under this section may be used with respect to

the part of such unit of local government which is outside the

boundaries of such urban county.

(6)(A) Where data are available, the amount determined under

paragraph (1) for a metropolitan city that has been formed by the

consolidation of one or more metropolitan cities with an urban

county shall be equal to the sum of the amounts that would have

been determined under paragraph (1) for the metropolitan city or

cities and the balance of the consolidated government, if such

consolidation had not occurred. This paragraph shall apply only to

any consolidation that -

(i) included all metropolitan cities that received grants under

this section for the fiscal year preceding such consolidation and

that were located within the urban county;

(ii) included the entire urban county that received a grant

under this section for the fiscal year preceding such

consolidation; and

(iii) took place on or after January 1, 1983.

(B) The population growth rate of all metropolitan cities

referred to in section 5302(a)(12) of this title shall be based on

the population of (i) metropolitan cities other than consolidated

governments the grant for which is determined under this paragraph;

and (ii) cities that were metropolitan cities before their

incorporation into consolidated governments. For purposes of

calculating the entitlement share for the balance of the

consolidated government under this paragraph, the entire balance

shall be considered to have been an urban county.

area as original allocation; amount and calculation of

reallocation grant; disaster relief

(1) Except as provided in paragraphs (2) and (4), any amounts

allocated to a metropolitan city or an urban county pursuant to the

preceding provisions of this section which are not received by the

city or county for a fiscal year because of failure to meet the

requirements of subsection (a), (b), (c), or (d) of section 5304 of

this title, or which become available as a result of actions under

section 5304(e) or 5311 of this title, shall be reallocated in the

succeeding fiscal year to the other metropolitan cities and urban

counties in the same metropolitan area which certify to the

satisfaction of the Secretary that they would be adversely affected

by the loss of such amounts from the metropolitan area. The amount

of the share of funds reallocated under this paragraph for any

metropolitan city or urban county shall bear the same ratio to the

total of such reallocated funds in the metropolitan area as the

amount of funds awarded to the city or county for the fiscal year

in which the reallocated funds become available bears to the total

amount of funds awarded to all metropolitan cities and urban

counties in the same metropolitan area for that fiscal year, except

that -

(A) in determining the amounts awarded to cities or counties

for purposes of calculating shares pursuant to this sentence,

there shall be excluded from the award of any city or county any

amounts which become available as a result of actions against

such city or county under section 5311 of this title;

(B) in reallocating amounts resulting from an action under

section 5304(e) of this title or section 5311 of this title, a

city or county against whom any such action was taken in a fiscal

year shall be excluded from a calculation of share for purposes

of reallocating, in the succeeding year, the amounts becoming

available as a result of such action; and

metropolitan city or urban county exceed 25 per centum of the

amount awarded to the city or county under subsection (b) of this

section for the fiscal year in which the reallocated funds under

this paragraph become available.

Any amounts allocated under subsection (b) of this section which

become available for reallocation and for which no metropolitan

city or urban county qualifies under this paragraph shall be added

to amounts available for allocation under such subsection (b) of

this section in the succeeding fiscal year.

(2) Notwithstanding any other provision of this chapter, the

Secretary shall make grants from amounts authorized for use under

subsection (b) of this section by the Department of Housing and

Urban Development - Independent Agencies Appropriation Act, 1981,

in accordance with the provisions of this chapter which governed

grants with respect to such amounts, as such provisions existed

prior to October 1, 1981, except that any such amounts which are

not obligated before January 1, 1982, shall be reallocated in

accordance with paragraph (1).

(3) Notwithstanding the provisions of paragraph (1), the

Secretary may upon request transfer responsibility to any

metropolitan city for the administration of any amounts received,

but not obligated, by the urban county in which such city is

located if (A) such city was an included unit of general local

government in such county prior to the qualification of such city

as a metropolitan city; (B) such amounts were designated and

received by such county for use in such city prior to the

qualification of such city as a metropolitan city; and (C) such

city and county agree to such transfer of responsibility for the

administration of such amounts.

(4)(A) Notwithstanding paragraph (1), in the event of a major

disaster declared by the President under the Robert T. Stafford

Disaster Relief and Emergency Assistance Act [42 U.S.C. 5121 et

seq.], the Secretary shall make available, to metropolitan cities

and urban counties located or partially located in the areas

affected by the disaster, any amounts that become available as a

result of actions under section 5304(e) or 5311 of this title.

(B) In using any amounts that become available as a result of

actions under section 5304(e) or 5311 of this title, the Secretary

shall give priority to providing emergency assistance under this

paragraph.

or urban county under this paragraph only to the extent necessary

to meet emergency community development needs, as the Secretary

shall determine (subject to subparagraph (D)), of the city or

county resulting from the disaster that are not met with amounts

otherwise provided under this chapter, the Robert T. Stafford

Disaster Relief and Emergency Assistance Act [42 U.S.C. 5121 et

seq.], and other sources of assistance.

(D) Amounts provided to metropolitan cities and urban counties

under this paragraph may be used only for eligible activities under

section 5305 of this title, and in implementing this section, the

Secretary shall evaluate the natural hazards to which any permanent

replacement housing is exposed and shall take appropriate action to

mitigate such hazards.

(E) The Secretary shall provide for applications (or amended

applications and statements under section 5304 of this title) for

assistance under this paragraph.

(F) A metropolitan city or urban county eligible for assistance

under this paragraph may receive such assistance only in each of

the fiscal years ending during the 3-year period beginning on the

date of the declaration of the disaster by the President.

(G) This paragraph may not be construed to require the Secretary

to reserve any amounts that become available as a result of actions

under section 5304(e) or 5311 of this title for assistance under

this paragraph if, when such amounts are to be reallocated under

paragraph (1), no metropolitan city or urban county qualifies for

assistance under this paragraph.

(d) Allocation among States for nonentitlement areas; amount and

calculation of grants; distributions by State or Secretary;

certain distributions made pursuant to prior provisions;

certifications required by Governor enumerated; responsibility

for administration and administrative expenses; reallocation;

certifications required of units of general local government in

nonentitlement areas; applicability of this chapter and other law

(1) Of the amount approved in an appropriation Act under section

5303 of this title that remains after allocations pursuant to

paragraphs (1) and (2) of subsection (a) of this section, 30 per

centum shall be allocated among the States for use in

nonentitlement areas. The allocation for each State shall be the

greater of an amount that bears the same ratio to the allocation

for such areas of all States available under this subparagraph as

either -

(A) the average of the ratios between -

(i) the population of the nonentitlement areas in that State

and the population of the nonentitlement areas of all States;

(ii) the extent of poverty in the nonentitlement areas in

that State and the extent of poverty in the nonentitlement

areas of all States; and

(iii) the extent of housing overcrowding in the

nonentitlement areas in that State and the extent of housing

overcrowding in the nonentitlement areas of all States; or

(B) the average of the ratios between -

(i) the age of housing in the nonentitlement areas in that

State and the age of housing in the nonentitlement areas of all

States;

(ii) the extent of poverty in the nonentitlement areas in

that States and the extent of poverty in the nonentitlement

areas of all States; and

(iii) the population of the nonentitlement areas in that

State and the population of the nonentitlement areas of all

States.

In determining the average of the ratios under subparagraph (A) the

ratio involving the extent of poverty shall be counted twice and

each of the other ratios shall be counted once; and in determining

the average of the ratios under subparagraph (B), the ratio

involving the age of housing shall be counted two and one-half

times, the ratio involving the extent of poverty shall be counted

one and one-half times, and the ratio involving population shall be

counted once. The Secretary shall, in order to compensate for the

discrepancy between the total of the amounts to be allocated under

this paragraph and the total of the amounts available under such

paragraph, make a pro rata reduction of each amount allocated to

the nonentitlement areas in each State under such paragraph so that

the nonentitlement areas in each State will receive an amount which

represents the same percentage of the total amount available under

such paragraph as the percentage which the nonentitlement areas of

the same State would have received under such paragraph if the

total amount available under such paragraph had equaled the total

amount which was allocated under such paragraph.

(2)(A) Amounts allocated under paragraph (1) shall be distributed

to units of general local government located in nonentitlement

areas of the State to carry out activities in accordance with the

provisions of this chapter -

(i) by a State that has elected, in such manner and at such

time as the Secretary shall prescribe, to distribute such

amounts, consistent with the statement submitted under section

5304(a) of this title; or

(ii) by the Secretary, in any case described in subparagraph

(B), for use by units of general local government in accordance

with paragraph (3)(B).

Any election to distribute funds made after the close of fiscal

year 1984 is permanent and final. Notwithstanding any provision of

this chapter, the Secretary shall make grants from amounts

authorized for use in nonentitlement areas by the Department of

Housing and Urban Development - Independent Agencies Appropriation

Act, 1981, in accordance with the provisions of this chapter which

governed grants with respect to such amounts, as such provisions

existed prior to October 1, 1981. Any amounts under the preceding

sentence (except amounts for which preapplications have been

approved by the Secretary prior to October 1, 1981, and which have

been obligated by January 1, 1982) which are or become available

for obligation after fiscal year 1981 shall be available for

distribution in the State in which the grants from such amounts

were made, by the State or by the Secretary, whichever is

distributing the State allocation in the fiscal year in which such

amounts are or become available.

(B) The Secretary shall distribute amounts allocated under

paragraph (1) if the State has not elected to distribute such

amounts.

(1), the State must certify that it, with respect to units of

general local government in nonentitlement areas -

(i) engages or will engage in planning for community

development activities;

(ii) provides or will provide technical assistance to units of

general local government in connection with community development

programs;

(iii) will not refuse to distribute such amounts to any unit of

general local government on the basis of the particular eligible

activity selected by such unit of general local government to

meet its community development needs, except that this clause may

not be considered to prevent a State from establishing priorities

in distributing such amounts on the basis of the activities

selected; and

(iv) has consulted with local elected officials from among

units of general local government located in nonentitlement areas

of that State in determining the method of distribution of funds

required by subparagraph (A).

(D) To receive and distribute amounts allocated under paragraph

(1), the State shall certify that each unit of general local

government to be distributed funds will be required to identify its

community development and housing needs, including the needs of low

and moderate income persons, and the activities to be undertaken to

meet such needs.

(3)(A) If the State receives and distributes such amounts, it

shall be responsible for the administration of funds so

distributed. The State shall pay from its own resources all

administrative expenses incurred by the State in carrying out its

responsibilities under this chapter or section 1437o(e)(1) (!1) of

this title, except that from the amounts received for distribution

in nonentitlement areas, the State may deduct an amount to cover

such expenses and its administrative expenses under section 1706e

(!1) of title 12 not to exceed the sum of $100,000 plus 50 percent

of any such expenses under this chapter in excess of $100,000.

Amounts deducted in excess of $100,000 shall not exceed 2 percent

of the amount so received.

(B) If the Secretary distributes such amounts, the distribution

shall be made in accordance with determinations of the Secretary

pursuant to statements submitted and the other requirements of

section 5304 of this title (other than subsection (c)) and in

accordance with regulations and procedures prescribed by the

Secretary.

that are not received by the State for any fiscal year because of

failure to meet the requirements of subsection (a), (b), or (d) of

section 5304 of this title or to make the certifications required

in subparagraphs (C) and (D) of paragraph (2), or that become

available as a result of actions against the State under section

5304(e) or 5311 of this title, shall be added to amounts allocated

to all States under paragraph (1) for the succeeding fiscal year.

(D) Any amounts allocated for use in a State under paragraph (1)

that become available as a result of actions under section 5304(e)

or 5311 of this title against units of general local government in

nonentitlement areas of the State or as a result of the closeout of

a grant made by the Secretary under this section in nonentitlement

areas of the State shall be added to amounts allocated to the State

under paragraph (1) for the fiscal year in which the amounts become

so available.

(4) Any combination of units of general local governments may not

be required to obtain recognition by the Secretary pursuant to

section 5302(a)(1) of this title to be treated as a single unit of

general local government for purposes of this subsection.

(5) (!2) From the amounts received under paragraph (1) for

distribution in nonentitlement areas, the State may deduct an

amount, not to exceed 1 percent of the amount so received, to

provide technical assistance to local governments and nonprofit

program recipients.

(5) (!2) No amount may be distributed by any State or the

Secretary under this subsection to any unit of general local

government located in a nonentitlement area unless such unit of

general local government certifies that -

(A) it will minimize displacement of persons as a result of

activities assisted with such amounts;

(B) its program will be conducted and administered in

conformity with the Civil Rights Act of 1964 [42 U.S.C. 2000a et

seq.] and the Fair Housing Act [42 U.S.C. 3601 et seq.], and that

it will affirmatively further fair housing;

participation, hearings, and access to information with respect

to its community development program that are comparable to those

required of grantees under section 5304(a)(2) of this title; and

(D) it will not attempt to recover any capital costs of public

improvements assisted in whole or part under this section or with

amounts resulting from a guarantee under section 5308 of this

title by assessing any amount against properties owned and

occupied by persons of low and moderate income, including any fee

charged or assessment made as a condition of obtaining access to

such public improvements, unless (i) funds received under this

section are used to pay the proportion of such fee or assessment

that relates to the capital costs of such public improvements

that are financed from revenue sources other than under this

chapter; or (ii) for purposes of assessing any amount against

properties owned and occupied by persons of moderate income, the

grantee certifies to the Secretary or such State, as the case may

be, that it lacks sufficient funds received under this section to

comply with the requirements of clause (i).

(6) Any activities conducted with amounts received by a unit of

general local government under this subsection shall be subject to

the applicable provisions of this chapter and other Federal law in

the same manner and to the same extent as activities conducted with

amounts received by a unit of general local government under

subsection (a) of this section.

(e) Qualification or submission dates, and finality and

conclusiveness of computations and determinations

The Secretary may fix such qualification or submission dates as

he determines are necessary to permit the computations and

determinations required by this section to be made in a timely

manner, and all such computations and determinations shall be final

and conclusive.

(f) Pro rata adjustment of entitlement amounts

If the total amount available for distribution in any fiscal year

to metropolitan cities and urban counties under this section is

insufficient to provide the amounts to which metropolitan cities

and urban counties would be entitled under subsection (b) of this

section, and funds are not otherwise appropriated to meet the

deficiency, the Secretary shall meet the deficiency through a pro

rata reduction of all amounts determined under subsection (b) of

this section. If the total amount available for distribution in any

fiscal year to metropolitan cities and urban counties under this

section exceeds the amounts to which metropolitan cities and urban

counties would be entitled under subsection (b) of this section,

the Secretary shall distribute the excess through a pro rata

increase of all amounts determined under subsection (b) of this

section.

-SOURCE-

(Pub. L. 93-383, title I, Sec. 106, Aug. 22, 1974, 88 Stat. 642;

Pub. L. 95-128, title I, Sec. 106, Oct. 12, 1977, 91 Stat. 1117;

Pub. L. 96-153, title I, Sec. 103(d), (e), Dec. 21, 1979, 93 Stat.

1102; Pub. L. 96-399, title I, Secs. 102, 103, 111(d)-(g), 112,

Oct. 8, 1980, 94 Stat. 1615, 1621, 1622; Pub. L. 97-35, title III,

Secs. 304, 309(h), Aug. 13, 1981, 95 Stat. 388, 396; Pub. L.

98-181, title I, Sec. 106, Nov. 30, 1983, 97 Stat. 1164; Pub. L.

98-479, title I, Sec. 101(a)(10)-(12), Oct. 17, 1984, 98 Stat.

2219, 2220; Pub. L. 100-242, title V, Secs. 512, 513, 517(b)(1),

Feb. 5, 1988, 101 Stat. 1930, 1936; Pub. L. 100-628, title X, Sec.

1082(b), (c), Nov. 7, 1988, 102 Stat. 3277; Pub. L. 101-235, title

VII, Sec. 702(b), Dec. 15, 1989, 103 Stat. 2056; Pub. L. 101-625,

title IX, Secs. 913(b), 933, Nov. 28, 1990, 104 Stat. 4392, 4403;

Pub. L. 102-550, title VIII, Secs. 802(b), 808, 811, title XII,

Sec. 1204(i), Oct. 28, 1992, 106 Stat. 3845, 3850, 3940.)

-REFTEXT-

REFERENCES IN TEXT

This Act, referred to in subsec. (a)(1), is Pub. L. 93-383, Aug.

22, 1974, 88 Stat. 633, as amended, known as the Housing and

Community Development Act of 1974. For complete classification of

this Act to the Code, see Short Title note set out under section

5301 of this title and Tables.

The Department of Housing and Urban Development - Related

Agencies Appropriation Act, 1981, referred to in subsecs. (c)(2)

and (d)(2)(A), is Pub. L. 96-526, Dec. 15, 1980, 94 Stat. 3044. For

complete classification of this Act to the Code, see Tables.

The Robert T. Stafford Disaster Relief and Emergency Assistance

Act, referred to in subsec. (c)(4)(A), (C), is Pub. L. 93-288, May

22, 1974, 88 Stat. 143, as amended, which is classified principally

to chapter 68 (Sec. 5121 et seq.) of this title. For complete

classification of this Act to the Code, see Short Title note set

out under section 5121 of this title and Tables.

This subparagraph, referred to in subsec. (d)(1), probably should

be a reference to this paragraph, meaning par. (1) of subsec. (d)

of this section.

Section 1437o of this title and section 1706e of title 12,

referred to in subsec. (d)(3)(A), was repealed by Pub. L. 101-625,

title II, Sec. 289(b), Nov. 28, 1990, 104 Stat. 4128.

The Civil Rights Act of 1964, referred to in subsec. (d)(5)(B),

is Pub. L. 88-352, July 2, 1964, 78 Stat. 241, as amended, which is

classified principally to subchapters II to IX (Sec. 2000a et seq.)

of chapter 21 of this title. For complete classification of this

Act to the Code, see Short Title note set out under section 2000a

of this title and Tables.

The Fair Housing Act, referred to in subsec. (d)(5)(B), is title

VIII of Pub. L. 90-284, Apr. 11, 1968, 82 Stat. 81, as amended,

which is classified principally to subchapter I (Sec. 3601 et seq.)

of chapter 45 of this title. For complete classification of this

Act to the Code, see Short Title note set out under section 3601 of

this title and Tables.

-COD-

CODIFICATION

In subsecs. (c)(2) and (d)(2)(A), "October 1, 1981" substituted

for "the effective date of the Housing and Community Development

Amendments of 1981" meaning the effective date of subtitle A of

title III of Pub. L. 97-35, Aug. 13, 1981, 95 Stat. 384, which was

generally effective Oct. 1, 1981. See Effective Date of 1981

Amendment note below.

-MISC1-

AMENDMENTS

1992 - Subsec. (d)(1). Pub. L. 102-550, Sec. 1204(i), in first

sentence, substituted "that remains after allocations pursuant to

paragraphs (1) and (2) of subsection (a) of this section" for "for

grants in any year (excluding the amounts provided for use in

accordance with subsection (a)(1) and (2) of this section)".

Subsec. (d)(4). Pub. L. 102-550, Sec. 802(b), added par. (4).

Subsec. (d)(5). Pub. L. 102-550, Sec. 811, added par. (5)

relating to State deductions for technical assistance.

Subsec. (d)(5)(B). Pub. L. 102-550, Sec. 808, substituted "the

Civil Rights Act of 1964 and the Fair Housing Act" for "Public Law

88-352 and Public Law 90-284".

1990 - Subsec. (a). Pub. L. 101-625, Sec. 913(b)(1)(B), added

subsec. (a) and struck out former subsec. (a) which read as

follows: "Of the amount approved in an appropriation Act under

section 5303 of this title for grants in any year (excluding the

amounts provided for use in accordance with section 5307 of this

title and section 5318 of this title), 70 per centum shall be

allocated by the Secretary to metropolitan cities and urban

counties and Indian tribes. Except as otherwise specifically

authorized, each metropolitan city and urban county shall be

entitled to an annual grant from such allocation in an amount not

exceeding its basic amount computed pursuant to paragraph (1) or

(2) of subsection (b) of this section Indian tribes shall receive

grants from such allocation pursuant to subsection (b)(7) of this

section."

Subsec. (b)(1), (2). Pub. L. 101-625, Sec. 913(b)(2), substituted

"The" for "After taking into account the set-aside for Indian

tribes under paragraph (7), the" in introductory provisions of

pars. (1) and (2).

Subsec. (b)(7). Pub. L. 101-625, Sec. 913(b)(1)(A), struck out

par. (7), which read as follows:

"(A) For each fiscal year, the Secretary shall reserve for grants

to Indian tribes, from amounts approved in appropriation Acts under

section 5303 of this title for grants for the year under subsection

(a) of this section, not more than 1 percent of the amounts

appropriated under such section.

"(B) The Secretary shall provide for distribution of amounts

under this paragraph to Indian tribes on the basis of a competition

conducted pursuant to specific criteria for the selection of Indian

tribes to receive such amounts. The criteria shall be contained in

a regulation promulgated by the Secretary after notice and public

comment."

Subsec. (c)(1). Pub. L. 101-625, Sec. 933(1), substituted

"paragraphs (2) and (4)" for "paragraph (2)" in introductory

provisions.

Subsec. (c)(4). Pub. L. 101-625, Sec. 933(2), added par. (4).

Subsec. (d)(1). Pub. L. 101-625, Sec. 913(b)(3), substituted

"subsection (a)(1) and (2) of this section" for "section 5307 of

this title and section 5318 of this title" in introductory

provisions.

1989 - Subsec. (a). Pub. L. 101-235, Sec. 702(b)(1), inserted

"and Indian tribes" after "urban counties" in first sentence and

inserted "Indian tribes shall receive grants from such allocation

pursuant to subsection (b)(7) of this section" before period at end

of second sentence.

Subsec. (b)(1). Pub. L. 101-235, Sec. 702(b)(2), substituted

"After taking into account the set-aside for Indian tribes under

paragraph (7), the" for "The".

Subsec. (b)(2). Pub. L. 101-235, Sec. 702(b)(3), substituted

"After taking into account the set-aside for Indian tribes under

paragraph (7), the" for "The".

Subsec. (b)(7). Pub. L. 101-235, Sec. 702(b)(4), added par. (7).

Subsec. (d)(4). Pub. L. 101-235, Sec. 702(b)(5), struck out par.

(4) which excluded Indian tribes in computing amounts under par.

(1).

1988 - Subsec. (c)(1). Pub. L. 100-628, Sec. 1082(b), substituted

"subsection (a), (b), (c), or (d) of section 5304" for "section

5304(a), (b), or (c)" in introductory provisions and substituted

"section 5304(e)" for "section 5304(d)" in introductory provisions

and in subpar. (B).

Subsec. (d)(2)(C). Pub. L. 100-242, Sec. 512(1), substituted "the

State must certify that it" for "the Governor must certify that the

State".

Subsec. (d)(2)(D). Pub. L. 100-242, Sec. 512(2), substituted "the

State" for "the Governor of each State".

Subsec. (d)(3)(A). Pub. L. 100-242, Sec. 517(b)(1), inserted "its

administrative expenses under section 1706e of title 12" after

first reference to "such expenses", and "under this chapter" after

second reference to "such expenses".

Pub. L. 100-242, Sec. 513, substituted "$100,000" for "$102,000"

after "the sum of".

Subsec. (d)(3)(C). Pub. L. 100-628, Sec. 1082(c), substituted

"subsection (a), (b), or (d) of section 5304" for "subsection (a)

or (b) of section 5304" and "section 5304(e)" for "section

5304(d)".

Subsec. (d)(3)(D). Pub. L. 100-628, Sec. 1082(c)(2), substituted

"section 5304(e)" for "section 5304(d)".

1984 - Subsec. (d)(2)(A). Pub. L. 98-479, Sec. 101(a)(10)(A),

substituted "the State" for "a State that has elected, in such

manner and at such time as the Secretary shall prescribe" in

provisions preceding cl. (i).

Subsec. (d)(2)(A)(i). Pub. L. 98-479, Sec. 101(a)(10)(B),

substituted "a State that has elected, in such manner and at such

time as the Secretary shall prescribe, to distribute such amounts"

for "the State".

Subsec. (d)(3)(A). Pub. L. 98-479, Sec. 101(a)(11)(A), inserted

"or section 1437o(e)(1) of this title".

Subsec. (d)(3)(C). Pub. L. 98-479, Sec. 101(a)(11)(B), inserted

"or to make the certifications required in subparagraphs (C) and

(D) of paragraph (2)".

Subsec. (d)(5)(D)(ii). Pub. L. 98-479, Sec. 101(a)(12),

substituted "moderate" for "low and moderate income who are not

persons of very low" before "income, the grantee certifies".

1983 - Subsec. (b)(6). Pub. L. 98-181, Sec. 106(a), added par.

(6).

Subsec. (c)(1)(B). Pub. L. 98-181, Sec. 106(b), substituted "a

city or county against whom any such action was taken in a fiscal

year shall be excluded from a calculation of share for purposes of

reallocating in the succeeding year," for "the city or county

against whom any such action was taken shall be excluded from the

calculation of shares for purposes of reallocating".

Subsec. (c)(3). Pub. L. 98-181, Sec. 106(c), added par. (3).

Subsec. (d)(2)(A). Pub. L. 98-181, Sec. 106(d)(1), substituted "a

State that has elected, in such manner and at such time as the

Secretary shall prescribe" for "the State" in provisions preceding

cl. (i), and inserted, following cl. (ii), "Any election to

distribute funds made after the close of fiscal year 1984 is

permanent and final."

Subsec. (d)(2)(B). Pub. L. 98-181, Sec. 106(d)(2), substituted

provisions requiring the Secretary to distribute amounts allocated

under par. (1) if the State has not elected to distribute such

amounts, for provisions which required the Secretary to distribute

such amounts where the State had elected, in such manner and before

such time as prescribed by the Secretary, not to distribute such

amounts, or the State had failed to submit the certifications

described in subpar. (C).

Subsec. (d)(2)(C)(iii). Pub. L. 98-181, Sec. 106(e), amended cl.

(iii) generally, substituting provisions requiring certification by

the Governor that the State will not refuse to distribute funds to

any local government unit on the basis of the particular activity

selected to meet its community development needs, except that a

State may establish priorities in distributing such amounts, for

provisions requiring the Governor to certify that the State would

provide funds for community development activities in an amount of

at least 10 per centum of the amounts allocated for use in the

State pursuant to par. (1).

Subsec. (d)(2)(D). Pub. L. 98-181, Sec. 106(f), added subpar.

(D).

Subsec. (d)(3)(A). Pub. L. 98-181, Sec. 106(g), substituted

provisions that the State may deduct an amount to cover such

expenses not to exceed the sum of $102,000 plus 50 percent of any

such expenses in excess of $100,000, and that the amounts deducted

in excess of $100,000 shall not exceed 2 percent of the amount so

received, for provisions that the State could deduct an amount not

to exceed 50 per centum of the costs incurred by the State in

carrying out such responsibilities, and that amounts so deducted

could not exceed 2 per centum of the amount so received.

Subsec. (d)(3)(C), (D). Pub. L. 98-181, Sec. 106(h), amended

subpar. (C) generally, substituting provisions requiring that

amounts which are to be reallocated because of failure to meet

requirements of section 5304(a), (b) of this title or because of

action under section 5304(d) or 5311 of this title be added to

amounts allocated to all States for the succeeding fiscal year for

provisions that amounts reallocated because of action under section

5304(d) or section 5311 of this title were to be added to amounts

available for distribution in the State in the same fiscal year, in

the case of actions against units of general local government, or

to amounts available for distribution in the succeeding fiscal

year, in the case of action against the State, and struck out

provision for distribution of such funds by either the State or the

Secretary and adding subpar. (D).

Subsec. (d)(5), (6). Pub. L. 98-181, Sec. 106(i), added pars. (5)

and (6).

Subsec. (f). Pub. L. 98-181, Sec. 106(j), amended subsec. (f)

generally, substituting provisions for pro rata reduction of all

amounts determined under subsec. (b) in the event of a deficiency

for provisions for reduction of all basic grant entitlement funds

provided pursuant to this section in the event of a deficiency, and

inserted provision for distribution of excess amounts.

1981 - Subsec. (a). Pub. L. 97-35, Sec. 304(a), substituted

provisions relating to amounts allocated to metropolitan areas and

urban counties and limitations on amount of annual grants for

provisions relating to amounts allocated to metropolitan areas,

annual grants for metropolitan cities and urban counties, and

limitations.

Subsec. (b)(4). Pub. L. 97-35, Sec. 309(h), substituted provision

respecting assistance under subsec. (d) of this section for

provision respecting grants under subsec. (c) or (e) of this

section.

Subsec. (c). Pub. L. 97-35, Sec. 304(b), (c), redesignated

subsec. (d) as (c) and substituted provisions relating to

reallocation of undistributed funds within same metropolitan area

as original allocation, for provisions relating to reallocation of

amounts allocated to metropolitan cities, urban counties, and

metropolitan areas for use by States, metropolitan cities, etc.

Former subsec. (c), which related to additional allocations of

amount allocated to metropolitan areas and added amounts for grants

for metropolitan cities, urban counties, specified units of general

local government, and States, was struck out.

Subsec. (d). Pub. L. 97-35, Sec. 304(b), (d), (e), redesignated

subsec. (e) as (d) and substituted provisions relating to

allocation among nonentitlement areas, amount and calculation of

grants, distributions, certifications, etc., for provisions

relating to amounts allocated to units of general local government

of metropolitan areas and States, calculations, multiyear

commitments, annual grants, reallocation of amounts to

nonmetropolitan areas of other States, and review by Secretary.

Former subsec. (d) redesignated (c).

Subsec. (e). Pub. L. 97-35, Sec. 304(b), redesignated subsec. (f)

as (e). Former subsec. (e) redesignated (d).

Subsecs. (f), (g). Pub. L. 97-35, Sec. 304(b), (f), redesignated

subsec. (g) as (f) and substituted "all basic grant entitlement

amounts" for "(1) all basic grant entitlement amounts, and (2)

funds available under subsection (c) of this section (including

amounts provided for use under section 5303(a)(2) of this title)

and subsection (e) of this section". Former subsec. (f)

redesignated (e).

1980 - Subsec. (a). Pub. L. 96-399, Sec. 111(e), substituted

"subsection (d) of this section" for "subsections (c) and (e) of

this section", struck out "aggregate" after "allocation in an",

"the greater of" after "not exceeding", and "or its hold-harmless

amount computed pursuant to subsection (g) of this section" after

"subsection (b) of this section".

Subsec. (b)(4). Pub. L. 96-399, Sec. 103, substituted "the

populations of which are not counted in determining the eligibility

of the urban county to receive a grant under this subsection,

except that there shall be included any independent city (as

defined by the Bureau of the Census) which - " for "(A) which are

entitled to hold-harmless grants pursuant to subsection (h) of this

section, or (B) the populations of which are not counted in

determining the eligibility of the urban county to receive a grant

under this subsection", and added subpars. (A) to (E) and provision

following subpar. (E).

Subsec. (c). Pub. L. 96-399, Sec. 111(d), (f), redesignated

former subsec. (d) as (c) and struck out in par. (1) "allocated by

the Secretary, first, for grants to metropolitan cities, urban

counties, and other units of general local government within

metropolitan areas to meet their hold-harmless needs as determined

under subsections (g) and (h), and second, in accordance with the

provisions of paragraph (2)" after "section 5303(a)(2) of this

title", struck out "(2) Any portion of such amounts which remains

after applying the provision of paragraph (1) shall be" before

"utilized by the Secretary", redesignated former par. (3) as (2)

and in par. (2) as so redesignated, substituted "paragraph (1)" for

"paragraph (2)" wherever appearing, struck out "In determining

whether to make such a commitment to a unit of general local

government, the Secretary shall give special consideration to those

communities presently carrying out comprehensive community

development programs which are subject to the provisions of

subsection (h)(2), before making new commitments." after

"availability of appropriations.", and substituted "and Indian

tribes" for "Indian tribes, and units of general local government

which are entitled to hold-harmless grants pursuant to subsection

(h) of this section". Former subsec. (c), relating to adjustment of

amounts for metropolitan cities and urban counties, was struck out.

Subsec. (d). Pub. L. 96-399, Secs. 111(d), 112, redesignated

former subsec. (e) as (d) and inserted provisions relating to

preferences for units of general local government in the same

metropolitan area. Former subsec. (d) redesignated (c).

Subsec. (e). Pub. L. 96-399, Sec. 111(d), (g), redesignated

former subsec. (f) as (e) and in par. (1) struck out "allocated by

the Secretary - (A) first, for grants to units of general local

government outside of metropolitan areas to meet their

hold-harmless needs as determined under subsection (h) of this

section; and (B) second, any portion of such amount which remains

after applying the provisions of subparagraph (A) shall be" after

"20 per centum shall be", redesignated former cls. (1)(B)(i) and

(ii) as (1)(A) and (B), respectively, redesignated former subcls.

(1)(B)(i)(I) to (III) and (1)(B)(ii)(I) to (III) as (1)(A)(i) to

(iii) and (1)(B)(i) to (iii), respectively, substituted

"subparagraph (A)" for "clause (i) of subparagraph (B)" and

"subparagraph (B)" for "clause (ii) of subparagraph (B)",

substituted "allocated under this paragraph" for "allocated under

subparagraph (B)", substituted "such paragraph" for "such

subparagraph" wherever appearing, in par. (2) struck out "In

determining whether to make such a commitment to a unit of general

local government, the Secretary shall give special consideration to

those communities presently carrying out comprehensive community

development programs, which are subject to the provisions of

subsection (h)(2) of this section, before making new commitments."

after "availability of appropriations.", substituted "paragraph

(1)" for "paragraph (1)(B)" wherever appearing, struck out "units

of general local government which are entitled to hold-harmless

grants pursuant to subsection (h) of this section and" after "shall

be excluded", and in par. (3) substituted "paragraph (1)" for

"paragraph (1)(B)". Former subsec. (e) was redesignated as (d).

Subsec. (f). Pub. L. 96-399, Sec. 111(d), redesignated subsec.

(k) as (f). Former subsec. (f) redesignated (e).

Subsec. (g). Pub. L. 96-399, Secs. 102, 111(d), redesignated

subsec. (m) as (g) and substituted "any fiscal year" for "fiscal

year 1978, fiscal year 1979, or fiscal year 1980", struck out "and

hold-harmless" after "all basic grant" in two places, and

substituted "subsection (c)" for "subsection (d)(2)" and

"subsection (e)" for "subsection (f)(1)(B)". Former subsec. (g),

relating to hold-harmless amounts for metropolitan cities and urban

counties, was struck out.

Subsec. (h). Pub. L. 96-399, Sec. 111(d), struck out subsec. (h)

which related to hold-harmless grants to units of general local

government not metropolitan cities or urban counties.

Subsec. (i). Pub. L. 96-399, Sec. 111(d), struck out subsec. (i)

which related to percentages excluded from data in computation of

hold-harmless grants for units of general local government.

Subsec. (j). Pub. L. 96-399, Sec. 111(d), struck out subsec. (j)

which related to waiver of eligibility by units of general local

government for hold-harmless grants.

Subsec. (k). Pub. L. 96-399, Sec. 111(d), redesignated subsec.

(k) as (f).

Subsec. (l). Pub. L. 96-399, Sec. 111(d), struck out subsec. (l)

which related to reports to Congress with respect to adequacy and

effectiveness of formula for allocation of funds.

Subsec. (m). Pub. L. 96-399, Sec. 111(d), redesignated subsec.

(m) as (g).

1979 - Subsec. (b)(5). Pub. L. 96-153, Sec. 103(e), added par.

(5).

Subsec. (m). Pub. L. 96-153, Sec. 103(d), inserted reference to

fiscal year 1980.

1977 - Subsec. (a). Pub. L. 95-128, Sec. 106(a), substituted in

second sentence reference to pars. "(1) or (2)" for pars. "(2) or

(3)" of subsec. (b) of this section.

Subsec. (b)(1). Pub. L. 95-128, Sec. 106(b), added par. (1), and

struck out former par. (1) provisions stating that "The Secretary

shall determine the amount to be allocated to all metropolitan

cities which shall be an amount that bears the same ratio to the

allocation for all metropolitan areas as the average of the ratios

between -

"(A) the population of all metropolitan cities and the

population of all metropolitan areas;

"(B) the extent of poverty in all metropolitan cities and the

extent of poverty in all metropolitan areas; and

"(C) the extent of housing overcrowding in all metropolitan

cities and the extent of housing overcrowding in all metropolitan

areas.", now incorporated in this paragraph.

Subsec. (b)(2). Pub. L. 95-128, Sec. 106(b), added par. (2) and

struck out former par. (2) provisions declaring that "From the

amount allocated to all metropolitan cities the Secretary shall

determine for each metropolitan city a basic grant amount which

shall equal an amount that bears the same ratio to the allocation

for all metropolitan cities as the average of the ratios between -

"(A) the population of that city and the population of all

metropolitan cities;

"(B) the extent of poverty in that city and the extent of

poverty in all metropolitan cities; and

"(C) the extent of housing overcrowding in that city and the

extent of housing overcrowding in all metropolitan cities.", now

incorporated in subsec. (b)(1) of this section.

Subsec. (b)(3). Pub. L. 95-128, Sec. 106(b), added par. (3) and

struck out former par. (3) provisions for determination of basic

grant amount of each urban county, now covered in subsec. (b)(2) of

this section and formerly providing that "The Secretary shall

determine the basic grant amount of each urban county by -

"(A) calculating the total amount that would have been

allocated to metropolitan cities and urban counties together

under paragraph (1) of this subsection if data pertaining to the

population, extent of poverty, and extent of housing overcrowding

in all urban counties were included in the numerator of each of

the fractions described in such paragraph; and

"(B) determining for each county the amount which bears the

same ratio to the total amount calculated under subparagraph (A)

of this paragraph as the average of the ratios between -

"(i) the population of that urban county and the population

of all metropolitan cities and urban counties;

"(ii) the extent of poverty in that urban county and the

extent of poverty in all metropolitan cities and urban

counties; and

"(iii) the extent of housing overcrowding in that urban

county and the extent of housing overcrowding in all

metropolitan cities and urban counties."

Subsec. (b)(4), (5). Pub. L. 95-128, Sec. 106(b), (c), struck out

par. "(4) In determining the average of ratios under paragraphs

(1), (2), and (3), the ratio involving the extent of poverty shall

be counted twice.", now incorporated in par. (3), redesignated par.

(5) as (4), and substituted "are entitled to" for "receive".

Subsec. (c). Pub. L. 95-128, Sec. 106(d), in first sentence,

substituted "With respect to funds approved for distribution to a

metropolitan city or urban county under this section during fiscal

years 1975, 1976, and 1977" for "During the first three years for

which funds are approved for distribution to a metropolitan city or

urban county under this section" and inserted "only for such funds

approved for distribution in fiscal years 1975, 1976, and 1977"

after "adjusted".

Subsec. (d). Pub. L. 95-128, Sec. 106(e), incorporated existing

introductory text and provisions of former par. (1) in provisions

now designated par. (1); added par. (2), incorporating provisions

of former par. (2) respecting additional allocations by the

Secretary "for grants to units of general local government (other

than metropolitan cities and urban counties) and States for use in

metropolitan areas, allocating for each such metropolitan area an

amount which bears the same ratio to the allocation for all

metropolitan areas available under this paragraph as the average of

the ratios between -

"(A) the population of that metropolitan area and the

population of all metropolitan areas,

"(B) the extent of poverty in that metropolitan area and the

extent of poverty in all metropolitan areas, and

"(C) the extent of housing overcrowding in that metropolitan

area and the extent of housing overcrowding in all metropolitan

areas." and declaring that "In determining the average of ratios

under paragraph (2), the ratio involving the extent of poverty

shall be counted twice"; struck out end clause providing that "in

computing amounts under such paragraph there shall be excluded

any metropolitan cities, urban counties, and units of general

local government which receive hold-harmless grants pursuant to

subsection (h) of this section", now constituting last sentence

of par. (3); and added par. (3) provisions.

Subsec. (e). Pub. L. 95-128, Sec. 106(f), in first sentence,

substituted "within a reasonable time" for "during such program

period" and struck out "during the same period" after "shall be

reallocated".

Subsec. (f)(1). Pub. L. 95-128, Sec. 106(g)(1), inserted in

subpar. (B) "any portion of such amount which remains after

applying the provisions of subparagraph (A) shall be utilized by

the Secretary" after "second," and "the greater of" before "an

amount"; reenacted existing provisions in cl. (i); added cl. (ii);

inserted provision respecting determination of average of ratios

under cl. (ii) of subpar. (B) and provision for pro rata reduction,

to compensate for the discrepancy between the total of the amounts

to be allocated under subpar. (B) and the total of the amounts

available under such subparagraph, of each amount allocated to the

nonmetropolitan areas in each State under such subparagraph; and

struck out end clause providing that in computing amounts under

such subpar. (B) there shall be excluded units of general local

government which receive hold-harmless grants pursuant to subsec.

(h) of this section, now constituting end sentence of subsec.

(f)(2) of this section.

Subsec. (f)(2). Pub. L. 95-128, Sec. 106(g)(1), (2), added par.

(2) and redesignated former par. (2) as (3).

Subsec. (f)(3). Pub. L. 95-128, Sec. 106(g)(2)-(4), redesignated

former par. (2) as (3), substituted "within a reasonable time" for

"during such period", and struck out "during the same period" after

"as soon as practicable".

Subsec. (g)(2). Pub. L. 95-128, Sec. 106(h), substituted

reference to "subsection (b)(1)(A) or (B), or (2)(A) or (B) of this

section" for "subsection (b)(2) or (3) of this section" and

inserted in cls. (i) and (ii) ", as computed under subsection

(b)(1)(A) or (B), or (2)(A) or (B) of this section," before

"shall".

Subsec. (i). Pub. L. 95-128, Sec. 106(i), struck out "population,

poverty, and housing overcrowding" before "data" and substituted

"are entitled to" for "receive" and reference to subsec. (b)(4) for

(b)(5) of this section.

Subsec. (j). Pub. L. 95-128, Sec. 106(j), substituted "by such

date as the Secretary shall determine" for "not later than thirty

days prior to the beginning of any program period" and reference to

subsec. (b)(4) for (b)(5) of this section and inserted "for a

hold-harmless grant for a single year" after "eligibility".

Subsec. (l). Pub. L. 95-128, Sec. 106(k), substituted provisions

for submission of a report to Congress not later than Sept. 30,

1978, respecting adequacy of funds allocation formula and defining

"impaction" for prior requirement of a report to Congress not later

than Mar. 31, 1977, setting forth recommendations to further

purposes and policies of this chapter, for modifying or expanding

the provisions of this section relating to the method of funding

and the allocation of funds and the determination of basic grant

entitlement, and for application of the provisions in the further

distribution of funds under this chapter and the conduct of a study

by the Secretary respecting manner of distributing funds under this

chapter in accordance with community development needs, objectives,

and capacities, measured to the maximum extent feasible by

objective standards.

Subsec. (m). Pub. L. 95-128, Sec. 106(l), added subsec. (m).

EFFECTIVE DATE OF 1990 AMENDMENT

Section 913(f) of Pub. L. 101-625 provided that:

"(1) In general. - Except as provided in paragraph (2), the

amendments made by this section [amending this section and sections

5301 and 5307 of this title] shall apply to amounts approved in any

appropriation Act under section 103 of the Housing and Community

Development Act of 1974 [section 5303 of this title] for fiscal

year 1990 and each fiscal year thereafter.

"(2) Grants in fiscal year 1990. - The Secretary of Housing and

Urban Development may make grants to Indian tribes pursuant to the

amendments made by this section with any amounts approved in any

appropriation Act under section 103 for fiscal year 1990 for grants

to Indian tribes, and the first sentence of section 106(a)(1) of

the Housing and Community Development Act of 1974 [subsec. (a)(1)

of this section] (as amended by this Act) shall not apply to such

grants."

EFFECTIVE DATE OF 1989 AMENDMENT

Section 702(e) of Pub. L. 101-235, as amended by Pub. L. 101-625,

title IX, Sec. 913(e), Nov. 28, 1990, 104 Stat. 4393, provided

that: "The amendments made by this section [amending this section

and section 5302 of this title] shall apply to amounts approved in

any appropriation Act under section 103 of the Housing and

Community Development Act of 1974 [section 5303 of this title] for

fiscal year 1990 and each fiscal year thereafter."

EFFECTIVE DATE OF 1983 AMENDMENT

Amendment by Pub. L. 98-181 applicable only to funds available

for fiscal year 1984 and thereafter, see section 110(b) of Pub. L.

98-181, as amended, set out as a note under section 5316 of this

title.

EFFECTIVE DATE OF 1981 AMENDMENT

Amendment by Pub. L. 97-35 effective Oct. 1, 1981, see section

371 of Pub. L. 97-35, set out as an Effective Date note under

section 3701 of Title 12, Banks and Banking.

EFFECTIVE DATE OF 1977 AMENDMENT

Amendment by Pub. L. 95-128 effective Oct. 1, 1977, see section

114 of Pub. L. 95-128, set out as a note under section 5301 of this

title.

REGULATIONS

Section 702(d) of Pub. L. 101-235 provided that: "The Secretary

shall issue any regulations necessary to carry out this section and

the amendments made by this section [amending this section and

section 5302 of this title and enacting provisions set out as notes

above] in a manner and by such time to provide for the

effectiveness of such regulations with respect to amounts

appropriated for fiscal year 1991 under section 103 of the Housing

and Community Development Act of 1974 [section 5303 of this

title]."

TRANSITIONAL PROVISIONS

Section 307 of Pub. L. 97-35 provided that:

"(a) Any amounts appropriated for any fiscal year before fiscal

year 1982 in a Department of Housing and Urban Development -

Independent Agencies Appropriation Act or a Supplemental

Appropriation Act under the head 'community development grants'

which are or become available for obligation on or after October 1,

1981, shall remain available as provided by law, and shall be used

in accordance with the following:

"(1) funds authorized for use under section 106(b) [subsec. (b)

of this section] of the Housing and Community Development Act of

1974 ('such Act') before October 1, 1981, shall be available for

use as provided by section 106(c) of such Act as amended by this

Act [subsec. (c) of this section];

"(2) funds authorized for use under section 107 of such Act

[section 5307 of this title] before October 1, 1981, shall be

available for use as provided by section 107(a) of such Act as

amended by this Act [section 5307(a) of this title]; and

"(3) funds authorized for use under section 106(c) or (e) of

such Act [subsec. (c) or (e) of this section] before October 1,

1981, shall be available for use as provided by section

106(d)(2)(A) of such Act as amended by this Act [subsec.

(d)(2)(A) of this section].

"(b) Any grant or loan which, prior to the effective date of any

provision of this part [see Effective Date note set out under

section 3701 of Title 12, Banks and Banking], was obligated and

governed by any authority amended by any provision of this part

[Pub. L. 97-35, title III, Secs. 301-315, Aug. 13, 1981, 95 Stat.

384-398] shall continue to be governed by the provisions of such

authority as they existed immediately before such effective date."

CDBG ASSISTANCE FOR UNITED STATES-MEXICO BORDER REGION

Pub. L. 104-134, title I, Sec. 101(e) [title II], Apr. 26, 1996,

110 Stat. 1321-257, 1321-272; renumbered title I, Pub. L. 104-140,

Sec. 1(a), May 2, 1996, 110 Stat. 1327, provided in part: "That

section 916 of the Cranston-Gonzalez National Affordable Housing

Act [set out below] shall apply with respect to fiscal year 1996,

notwithstanding section 916(f) of that Act."

Section 916 of Pub. L. 101-625, as amended by Pub. L. 102-550,

title VIII, Sec. 810, Oct. 28, 1992, 106 Stat. 3850; Pub. L.

104-204, title II, Sept. 26, 1996, 110 Stat. 2887, provided that:

"(a) Set-Aside for Colonias. - The States of Arizona, California,

New Mexico, and Texas shall each make available, for activities

designed to meet the needs of the residents of colonias in the

State relating to water, sewage, and housing, the following

percentage of the amount allocated for the State under section

106(d) of the Housing and Community Development Act of 1974 (42

U.S.C. 5306(d)):

"(1) First fiscal year. - For the first fiscal year to which

this section applies, 10 percent.

"(2) Succeeding fiscal years. - For each of the succeeding

fiscal years to which this section applies, a percentage (not to

exceed 10 percent) that is determined by the Secretary of Housing

and Urban Development to be appropriate after consultation with

representatives of the interests of the residents of colonias.

"(b) Eligible Activities. - Assistance distributed pursuant to

this section may be used only to carry out the following

activities:

"(1) Planning. - Payment of the cost of planning community

development (including water and sewage facilities) and housing

activities, including the cost of -

"(A) the provision of information and technical assistance to

residents of the area in which the activities are to be

concentrated and to appropriate nonprofit organizations and

public agencies acting on behalf of the residents; and

"(B) preliminary surveys and analyses of market needs,

preliminary site engineering and architectural services, site

options, applications, mortgage commitments, legal services,

and obtaining construction loans.

"(2) Assessments for public improvements. - The payment of

assessments (including any charge made as a condition of

obtaining access) levied against properties owned and occupied by

persons of low and moderate income to recover the capital cost

for a public improvement.

"(3) Other improvements. - Other activities eligible under

section 105 of the Housing and Community Development Act of 1974

[42 U.S.C. 5305] designed to meet the needs of residents of

colonias.

"(c) Distribution of Assistance. - Assistance shall be made

available pursuant to this section in accordance with a

distribution plan that gives priority to colonias having the

greatest need for such assistance.

"(d) Applicable Law. - Except to the extent inconsistent with

this section, assistance provided pursuant to this section shall be

subject to the provisions of title I of the Housing and Community

Development Act of 1974 (42 U.S.C. 5301 et seq.).

"(e) Definitions. - For purposes of this section:

"(1) Colonia. - The term 'colonia' means any identifiable

community that -

"(A) is in the State of Arizona, California, New Mexico, or

Texas;

"(B) is in the United States-Mexico border region;

"(C) is determined to be a colonia on the basis of objective

criteria, including lack of potable water supply, lack of

adequate sewage systems, and lack of decent, safe, and sanitary

housing; and

"(D) was in existence as a colonia before the date of the

enactment of the Cranston-Gonzalez National Affordable Housing

Act [Nov. 28, 1990].

"(2) Nonprofit organization. - The term 'nonprofit

organization' means an organization described in section 501(c)

of the Internal Revenue Code of 1986 [26 U.S.C. 501(c)] and

exempt from taxation under section 501(a) of such Code.

"(3) Persons of low and moderate income. - The term 'persons of

low and moderate income' has the meaning given the term in

section 102(a) of the Housing and Community Development Act of

1974 (42 U.S.C. 5302(a)).

"(4) United states-mexico border region. - The term 'United

States-Mexico border region' means the area of the United States

within 150 miles of the border between the United States and

Mexico, except that the term does not include any standard

metropolitan statistical area that has a population exceeding

1,000,000."

OFFICE OF INDIAN AND ALASKA NATIVE PROGRAMS

Section 702(c) of Pub. L. 101-235, which required Secretary of

Housing and Urban Development to administer grants to Indian tribes

under this chapter through the Office of Indian and Alaska Native

Programs of the Department of Housing and Urban Development, was

repealed by Pub. L. 101-625, title IX, Sec. 913(d), Nov. 28, 1990,

104 Stat. 4393.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1437aaa-2, 5301, 5302,

5303, 5304, 5305, 5307, 5308, 5312, 5321, 11373, 12705, 12750,

12873, 12893, 12899c of this title; title 26 section 42.

-FOOTNOTE-

(!1) See References in Text note below.

(!2) So in original. Two pars. (5) have been enacted.

-End-

-CITE-

42 USC Sec. 5307 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 69 - COMMUNITY DEVELOPMENT

-HEAD-

Sec. 5307. Special purpose grants

-STATUTE-

(a) Set-aside

(1) In general

For each fiscal year (except as otherwise provided in this

paragraph), of the total amount provided in appropriation Acts

under section 5303 of this title for the fiscal year, $60,000,000

shall be set aside for grants under subsection (b) of this

section for such year for the following purposes:

(A) $7,000,000 shall be available for grants under subsection

(b)(1) of this section;

(B) $6,500,000 shall be available for grants under subsection

(b)(3) of this section;

(b)(5) of this section;

(D) $6,000,000 shall be available in fiscal year 1993 for

grants under subsection (b)(7) of this section;

(E) $3,000,000 shall be available for grants under subsection

(F) such sums as may be necessary shall be available for

grants under paragraphs (2), (4), and (6) of subsection (b) of

this section;

(G) $2,000,000 shall be available in fiscal year 1993 for a

grant to the City of Bridgeport, Connecticut, subject to the

approval of sufficient amounts in an appropriation Act and to

binding commitments made by the City of Bridgeport and the

State of Connecticut that the city and State, respectively,

will supplement such amount with $2,000,000 of additional

funds; and

(H) $7,500,000 shall be available to carry out the Community

Outreach Partnership Act of 1992.

(2) Treatment of grants

Any grants made under this section shall be in addition to any

other grants that may be made under this chapter to the same

entities for the same purposes.

(b) Permissible uses of funds

From amounts set aside under subsection (a) of this section, the

Secretary is authorized to make grants -

(1) in Guam, the Virgin Islands, American Samoa, the Northern

Mariana Islands, and the Trust Territory of the Pacific Islands;

(2) to States and units of general local government for the

purpose of allocating amounts to any such State or unit of

general local government that is determined by the Secretary to

have received insufficient amounts under section 5306 of this

title as a result of a miscalculation of its share of funds under

such section;

(3) to historically Black colleges;

(4) to States, units of general local government, Indian

tribes, or areawide planning organizations for the purpose of

providing technical assistance in planning, developing, and

administering assistance under this chapter and section 1706e

(!1) of title 12; to groups designated by such governmental units

to assist them in carrying out assistance under this chapter; to

qualified groups for the purpose of assisting more than one such

governmental unit to carry out assistance under this chapter; the

Secretary may also provide technical assistance, directly or

through contracts, to such governmental units and groups; for

purposes of this paragraph the term "technical assistance" means

the facilitating of skills and knowledge in planning, developing,

and administering activities under this chapter in entities that

may need but do not possess such skills and knowledge, and

includes assessing programs and activities under this chapter;

except that any recipient of a grant under this paragraph that

provides technical assistance pursuant to this paragraph shall

provide for the notification of the availability of such

assistance and shall have specific criteria for selection of

recipients of such assistance that are published and publicly

available;

(5) to States and units of general local government and

institutions of higher education having a demonstrated capacity

to carry out eligible activities under this chapter, except that

the Secretary may make a grant under this paragraph only to a

State or unit of general local government that jointly, with an

institution of higher education, has prepared and submitted to

the Secretary an application for such grant, as the Secretary

shall by regulation require;

(6) to units of general local government in nonentitlement

areas for planning community adjustments and economic

diversification activities, which may include any eligible

activities under section 5305 of this title, required -

(A) by the proposed or actual establishment, realignment, or

closure of a military installation,

(B) by the cancellation or termination of a Department of

Defense contract or the failure to proceed with an approved

major weapon system program, or

Department of Defense spending that would directly and

adversely affect a unit of general local government and will

result in the loss of 1,000 or more full-time Department of

Defense and contractor employee positions over a 5-year period

in the unit of general local government and the surrounding

area, or

if the Secretary (in consultation with the Secretary of Defense)

determines that an action described in subparagraph (A), (B), or

consequence on the unit of general local government; and

(7) for the purposes of rebuilding and revitalizing distressed

areas of the Los Angeles metropolitan area.

participating in community development work study programs

Of the amount set aside for use under subsection (b) of this

section in any fiscal year, the Secretary shall,(!2) make grants to

institutions of higher education, either directly or through

areawide planning organizations or States, for the purpose of

providing assistance to economically disadvantaged and minority

students who participate in community development work study

programs and are enrolled in full-time graduate or undergraduate

programs in community and economic development, community planning,

or community management.

(d) Continued availability of unused funds

Amounts set aside for use under subsection (b) of this section in

any fiscal year but not used in that year shall remain available

for use in subsequent fiscal years in accordance with the

provisions of that subsection.

(e) Satisfactory assurances required, special assurances required

of Indian tribes

(1) Except as provided in paragraph (2), no grant may be made

under this section or section 5318 of this title and no assistance

may be made available under section 1437o (!3) of this title unless

the grantee provides satisfactory assurances that its program will

be conducted and administered in conformity with the Civil Rights

Act of 1964 [42 U.S.C. 2000a et seq.] and the Fair Housing Act [42

U.S.C. 3601 et seq.].

(2) No grant may be made to an Indian tribe under this section,

section 5306(a)(1) of this title, or section 5318 of this title

unless the applicant provides satisfactory assurances that its

program will be conducted and administered in conformity with title

II of Public Law 90-284 [25 U.S.C. 1301 et seq.]. The Secretary may

waive, in connection with grants to Indian tribes, the provisions

of section 5309 of this title and section 5310 of this title.

(3) The Secretary may accept a certification from the grantee or

applicant that it has complied with the requirements of paragraph

(1) or (2), as appropriate.

(f) Criteria for selection of recipients

Any grant made under this section shall be made pursuant to

criteria for selection of recipients of such grants that the

Secretary shall by regulation establish and which the Secretary

shall publish together with any notification of availability of

amounts under this section.

-SOURCE-

(Pub. L. 93-383, title I, Sec. 107, Aug. 22, 1974, 88 Stat. 647;

Pub. L. 94-375, Sec. 15(c), Aug. 3, 1976, 90 Stat. 1076; Pub. L.

95-128, title I, Sec. 107, Oct. 12, 1977, 91 Stat. 1123; Pub. L.

95-557, title I, Sec. 103(f), Oct. 31, 1978, 92 Stat. 2084; Pub. L.

96-399, title I, Secs. 107, 117(b), Oct. 8, 1980, 94 Stat. 1618,

1624; Pub. L. 97-35, title III, Sec. 305, Aug. 13, 1981, 95 Stat.

391; Pub. L. 98-181, title I, Sec. 107, title III, Sec. 302(b),

Nov. 30, 1983, 97 Stat. 1167, 1206; Pub. L. 100-242, title V, Secs.

501(b), 517(b)(2), 522(b), Feb. 5, 1988, 101 Stat. 1922, 1936,

1939; Pub. L. 101-235, title I, Sec. 105(a)-(c), (e), Dec. 15,

1989, 103 Stat. 1998, 1999; Pub. L. 101-625, title IX, Secs.

901(c), 913(c), Nov. 28, 1990, 104 Stat. 4385, 4393; Pub. L.

102-550, title VIII, Secs. 801(c)(1), (2), (4), 808, Oct. 28, 1992,

106 Stat. 3843-3845, 3850; Pub. L. 106-569, title I, Sec. 102(f),

Dec. 27, 2000, 114 Stat. 2947.)

-REFTEXT-

REFERENCES IN TEXT

The Community Outreach Partnership Act of 1992, referred to in

subsec. (a)(1)(H), is section 851 of Pub. L. 102-550, which is set

out below.

Section 1706e of title 12, referred to in subsec. (b)(4), was

repealed by Pub. L. 101-625, title II, Sec. 289(b), Nov. 28, 1990,

104 Stat. 4128.

Section 1437o of this title, referred to in subsec. (e)(1), was

repealed by Pub. L. 101-625, title II, Sec. 289(b), Nov. 28, 1990,

104 Stat. 4128.

The Civil Rights Act of 1964, referred to in subsec. (e)(1), is

Pub. L. 88-352, July 2, 1964, 78 Stat. 241, as amended, which is

classified principally to subchapters II to IX (Sec. 2000a et seq.)

of chapter 21 of this title. For complete classification of this

Act to the Code, see Short Title note set out under section 2000a

of this title and Tables.

The Fair Housing Act, referred to in subsec. (e)(1), is title

VIII of Pub. L. 90-284, Apr. 11, 1968, 82 Stat. 81, as amended,

which is classified principally to subchapter I (Sec. 3601 et seq.)

of chapter 45 of this title. For complete classification of this

Act to the Code, see Short Title note set out under section 3601 of

this title and Tables.

Public Law 90-284, referred to in subsec. (e)(2), is Pub. L.

90-284, Apr. 11, 1968, 82 Stat. 73, as amended, known as the Civil

Rights Act of 1968. Title II of Pub. L. 90-284 is classified

generally to subchapter I (Sec. 1301 et seq.) of chapter 15 of

Title 25, Indians. For complete classification of this Act to the

Code, see Short Title note set out under section 3601 of this title

and Tables.

-MISC1-

AMENDMENTS

2000 - Subsec. (a)(1)(G). Pub. L. 106-569, Sec. 102(f)(1),

inserted "and" after semicolon at end.

Subsec. (a)(1)(H), (I). Pub. L. 106-569, Sec. 102(f)(2), (3),

redesignated subpar. (I) as (H) and struck out former subpar. (H)

which read as follows: "$15,000,000 shall be available for grants

under the Removal of Regulatory Barriers to Affordable Housing Act

of 1992; and".

1992 - Subsec. (a). Pub. L. 102-550, Sec. 801(c)(1), added

heading and subsec. (a) and struck out former subsec. (a) which

read as follows: "Of the total amount provided in appropriation

Acts under section 5303 of this title for fiscal years 1988 and

1989, $60,000,000 may be set aside in each year for grants under

subsection (b) of this section. Grants under this section are in

addition to any other grants which may be made under this chapter

to the same entities for the same purposes."

Subsec. (b)(5) to (7). Pub. L. 102-550, Sec. 801(c)(2), added

pars. (5) to (7).

Subsec. (c). Pub. L. 102-550, Sec. 801(c)(4), substituted "make"

for "to the extent approved in appropriation Acts, make available

not less than $3,000,000 in the form of".

Subsec. (e)(1). Pub. L. 102-550, Sec. 808, substituted "the Civil

Rights Act of 1964 and the Fair Housing Act" for "Public Law 88-352

and Public Law 90-284".

1990 - Subsec. (a). Pub. L. 101-625, Sec. 901(c), directed the

amendment of subsec. (a), which did not contain designated pars.,

by adding par. (3) and redesignating former pars. (3) and (4) as

(4) and (5), respectively.

Subsec. (e)(2). Pub. L. 101-625, Sec. 913(c), inserted ", section

5306(a)(1) of this title," after "this section".

1989 - Pub. L. 101-235, Sec. 105(e), substituted "Special purpose

grants" for "Discretionary fund" in section catchline.

Subsec. (a). Pub. L. 101-235, Sec. 105(a), struck out "in a

special discretionary fund" after "in each year" and struck out at

end "Of the amount set aside for grants under subsection (b) of

this section for fiscal year 1988, $5,000,000 shall be made

available by the Secretary for purposes of grants under subsection

(b)(1) of this section for the Park Central New Community Project."

Subsec. (b)(1). Pub. L. 101-235, Sec. 105(b)(1), (3),

redesignated former par. (2) as (1) and struck out former par. (1)

which read as follows: "in behalf of new communities assisted under

title VII of the Housing and Urban Development Act of 1970 or title

IV of the Housing and Urban Development Act of 1968 or in behalf of

new community projects assisted under title X of the National

Housing Act which meet the eligibility standards set forth in title

VII of the Housing and Urban Development Act of 1970 and which were

the subject of an application or preapplication under such title

prior to January 14, 1975;".

Subsec. (b)(2). Pub. L. 101-235, Sec. 105(b)(3), redesignated

par. (5) as (2). Former par. (2) redesignated (1).

Subsec. (b)(3). Pub. L. 101-235, Sec. 105(b)(1), (4), added par.

(3) and struck out former par. (3) which related to grants to

Indian tribes.

Subsec. (b)(4). Pub. L. 101-235, Sec. 105(b)(5), struck out "and

to States and units of general local government for implementing

special projects otherwise authorized under this chapter; and"

after "to carry out assistance under this chapter;", and

substituted "for purposes of this paragraph the term 'technical

assistance' means the facilitating of skills and knowledge in

planning, developing, and administering activities under this

chapter in entities that may need but do not possess such skills

and knowledge, and includes assessing programs and activities under

this chapter; except that any recipient of a grant under this

paragraph that provides technical assistance pursuant to this

paragraph shall provide for the notification of the availability of

such assistance and shall have specific criteria for selection of

recipients of such assistance that are published and publicly

available." for "and" after "such governmental units and groups;".

Subsec. (b)(5). Pub. L. 101-235, Sec. 105(b)(3), redesignated

par. (5) as (2).

Subsec. (f). Pub. L. 101-235, Sec. 105(c), added subsec. (f).

1988 - Subsec. (a). Pub. L. 100-242, Sec. 522(b), inserted

sentence at end making $5,000,000 of grant moneys available for the

Park Central New Community Project.

Pub. L. 100-242, Sec. 501(b)(1), amended first sentence

generally. Prior to amendment, first sentence read as follows: "Of

the total amount approved in appropriation Acts under section 5303

of this title for each of the fiscal years 1984, 1985, and 1986,

not more than $68,200,000 for each such fiscal year may be set

aside in a special discretionary fund for grants under subsection

(b) of this section."

Subsec. (b)(4). Pub. L. 100-242, Sec. 517(b)(2), inserted "and

section 1706e of title 12" before first semicolon.

Subsecs. (c) to (e). Pub. L. 100-242, Sec. 501(b)(2), added

subsec. (c) and redesignated former subsecs. (c) and (d) as (d) and

(e), respectively.

1983 - Subsec. (a). Pub. L. 98-181, Sec. 107(a), substituted

provisions permitting not more than $68,200,000 for each of fiscal

years 1984, 1985, and 1986 to be set aside in a special

discretionary fund for grants under subsection (b) of this section,

for provisions permitting not more than $60,000,000 to be set aside

for each of fiscal years 1982 and 1983 in such a fund.

Subsec. (b)(4). Pub. L. 98-181, Sec. 107(b), amended par. (4)

generally, inserting provisions authorizing the Secretary to

provide assistance to groups designated by certain enumerated

governmental units to assist in carrying out this chapter, to

qualified groups for the purpose of assisting more than one such

governmental unit and to provide technical assistance, directly or

through contracts, to such governmental units and groups.

Subsec. (b)(5). Pub. L. 98-181, Sec. 107(c), added par. (5).

Subsec. (d)(1). Pub. L. 98-181, Sec. 302(b)(1), inserted

provisions relating to section 1437o of this title, and substituted

"grantee" for "applicant".

Subsec. (d)(3). Pub. L. 98-181, Sec. 302(b)(2), inserted "grantee

or" before "applicant".

1981 - Subsec. (a). Pub. L. 97-35 substituted provisions relating

to authorization of appropriations under section 5303 of this title

for fiscal years 1982 and 1983, and supplemental nature of grants,

for provisions relating to authorization of appropriations under

section 5303(a)(1) of this title for fiscal years 1981 to 1983, and

purposes for expenditures from fund.

Subsec. (b). Pub. L. 97-35 substituted provisions relating to

permissible uses of funds for provisions relating to limitations on

amounts reserved for emergency disaster needs.

Subsec. (c). Pub. L. 97-35 substituted provisions relating to

amounts set aside for use under subsec. (b) of this section for

provisions relating to amounts set aside and reserved in the

special fund under subsec. (b) of this section.

Subsec. (d). Pub. L. 97-35 substituted provisions relating to

assurances required for provisions relating to Indian tribal

eligibility for grant as dependent upon conformity of program with

prescribed constitutional rights and habeas corpus.

1980 - Subsec. (a). Pub. L. 96-399, Sec. 107, substituted

"approved in appropriation Acts under section 5303(a)(1) of this

title for each of the fiscal years 1981, 1982, and 1983, not more

than $104,000,000 for fiscal year 1981, not more than $104,000,000

for fiscal year 1982, and not more than $107,000,000 for fiscal

year 1983 may" for "of authority to enter into contracts approved

in appropriation Acts under section 5303(a)(1) of this title for

each of the fiscal years 1975, 1976, 1977, 1978, 1979, and 1980, an

amount equal to 3 per centum thereof shall".

Subsec. (d). Pub. L. 96-399, Sec. 117(b), inserted "under this

chapter" after "Indian tribe".

1978 - Subsec. (a)(8). Pub. L. 95-557 substituted "The Secretary

may also provide, directly or through contracts, technical

assistance under this paragraph to such governmental units, or to a

group designated by such a governmental unit for the purpose of

assisting that governmental unit to carry out its Community

Development Program" for "The Secretary may also provide such

technical assistance under this paragraph directly or through

contracts".

1977 - Subsec. (a). Pub. L. 95-128, Sec. 107(1), (2), extended

provisions to fiscal years 1978 through 1980 and increased rate to

3 from 2 per centum.

Subsec. (a)(5). Pub. L. 95-128, Sec. 107(3), provided for grants

to Indian tribes.

Subsec. (a)(7), (8). Pub. L. 95-128, Sec. 107(4), added pars. (7)

and (8).

Subsec. (b). Pub. L. 95-128, Sec. 107(5), substituted "15 per

centum" for "one-fourth".

Subsec. (d). Pub. L. 95-128, Sec. 107(6), added subsec. (d).

1976 - Subsec. (a)(1). Pub. L. 94-375 included new community

projects assisted under title X of the National Housing Act as

within the authority of the Secretary to make grants from the

special discretionary fund.

EFFECTIVE DATE OF 1990 AMENDMENT

Amendment by section 913(c) of Pub. L. 101-625 applicable to

amounts approved in any appropriation Act under section 5303 of

this title for fiscal year 1990 and each fiscal year thereafter,

see section 913(f) of Pub. L. 101-625, set out as a note under

section 5306 of this title.

EFFECTIVE DATE OF 1989 AMENDMENT

Section 105(d) of Pub. L. 101-235 provided that:

"(1) In general. - Except as provided in this paragraph and

paragraph (2), the amendments made by this section [amending this

section] shall apply with respect to any grants made under section

107 of the Housing and Community Development Act of 1974 [this

section] on or after the date of the enactment of this Act [Dec.

15, 1989], except a grant made under the third sentence of section

107(a) of [the] Housing and Community Development Act of 1974, as

such sentence existed immediately before such date, and grants for

specific activities (referred to in House Report Number 101-297)

pursuant to the amount appropriated for use under section 107 by

the enactment of the bill, H.R. 2916, of the One Hundred First

Congress [Pub. L. 101-144, Nov. 9, 1989, 103 Stat. 850].

"(2) Prior grants. - Any grant made under section 107 of the

Housing and Community Development Act of 1974 [this section] before

the date of the enactment of this Act [Dec. 15, 1989] or pursuant

to a grant award notification made before such date shall be

governed by the provisions of such section as it existed

immediately before the date of the enactment of this Act."

EFFECTIVE DATE OF 1983 AMENDMENT

Amendment by Pub. L. 98-181 applicable only to funds available

for fiscal year 1984 and thereafter, see section 110(b) of Pub. L.

98-181, as amended, set out as a note under section 5316 of this

title.

EFFECTIVE DATE OF 1981 AMENDMENT

Amendment by Pub. L. 97-35 effective Oct. 1, 1981, see section

371 of Pub. L. 97-35, set out as an Effective Date note under

section 3701 of Title 12, Banks and Banking.

EFFECTIVE DATE OF 1978 AMENDMENT

Amendment by Pub. L. 95-557 effective Oct. 1, 1978, see section

104 of Pub. L. 95-557, set out as a note under section 1709 of

Title 12, Banks and Banking.

EFFECTIVE DATE OF 1977 AMENDMENT

Amendment by Pub. L. 95-128 effective Oct. 1, 1977, see section

114 of Pub. L. 95-128, set out as a note under section 5301 of this

title.

REGULATIONS

Section 801(c)(3) of Pub. L. 102-550 provided that: "Not later

than the expiration of the 60-day period beginning on the date of

the enactment of this Act [Oct. 28, 1992], the Secretary of Housing

and Urban Development shall issue proposed regulations to carry out

section 107(b)(6) of the Housing and Community Development Act of

1974 [42 U.S.C. 5307(b)(6)], as added by subsection (c)(2) of this

section. The Secretary shall issue final regulations to carry out

section 107(b)(6) not later than the expiration of the 120-day

period beginning on the date of the enactment of this Act and after

notice and opportunity for public comment pursuant to the

provisions of section 553 of title 5, United States Code

(notwithstanding subsections (a)(2), (b)(B), and (d)(3) of such

section). Such final regulations shall take effect 30 days after

issuance."

-TRANS-

TERMINATION OF TRUST TERRITORY OF THE PACIFIC ISLANDS

For termination of Trust Territory of the Pacific Islands, see

note set out preceding section 1681 of Title 48, Territories and

Insular Possessions.

-MISC2-

COMMUNITY OUTREACH PARTNERSHIP

Section 851 of Pub. L. 102-550 directed Secretary to carry out a

5-year demonstration program to determine feasibility of

facilitating partnerships between institutions of higher education

and communities to solve urban problems through research, outreach,

and exchange of information, established program of grants to

public and private nonprofit institutions of higher education to

assist in establishing or carrying out such activities and to

establish and operate Community Outreach Partnership Centers which

were to focus on problems associated with housing, economic

development, neighborhood revitalization, infrastructure, health

care, job training, education, crime prevention, planning,

community organizing, and other areas deemed appropriate by the

Secretary, further provided for establishment of national advisory

council to assist Secretary in these areas and a national

clearinghouse to disseminate information resulting from these

activities, and further provided for appropriations for the

demonstration program as well as for an annual report to Congress

by the Secretary.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 5306, 5308 of this title;

title 26 section 42.

-FOOTNOTE-

(!1) See References in Text note below.

(!2) So in original. The comma probably should not appear.

(!3) See References in Text note below.

-End-

-CITE-

42 USC Sec. 5308 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 69 - COMMUNITY DEVELOPMENT

-HEAD-

Sec. 5308. Guarantee and commitment to guarantee loans for

acquisition of property

-STATUTE-

(a) Authority of Secretary; issuance of obligations by eligible

public entities or designated public agencies; form,

denomination, maturity, and conditions of notes or other

obligations; percentage allocation requirements

The Secretary is authorized, upon such terms and conditions as

the Secretary may prescribe, to guarantee and make commitments to

guarantee, only to such extent or in such amounts as provided in

appropriation Acts, the notes or other obligations issued by

eligible public entities, or by public agencies designated by such

eligible public entities, for the purposes of financing (1)

acquisition of real property or the rehabilitation of real property

owned by the eligible public entity (including such related

expenses as the Secretary may permit by regulation); (2) housing

rehabilitation; (3) economic development activities permitted under

paragraphs (14), (15), and (17) of section 5305(a) of this title;

(4) construction of housing by nonprofit organizations for

homeownership under section 1437o(d) (!1) of this title or title VI

of the Housing and Community Development Act of 1987; (5) the

acquisition, construction, reconstruction, or installation of

public facilities (except for buildings for the general conduct of

government); or (6) in the case of colonias (as such term is

defined in section 916 of the Cranston-Gonzalez National Affordable

Housing Act), public works and site or other improvements. A

guarantee under this section may be used to assist a grantee in

obtaining financing only if the grantee has made efforts to obtain

such financing without the use of such guarantee and cannot

complete such financing consistent with the timely execution of the

program plans without such guarantee. Notes or other obligations

guaranteed pursuant to this section shall be in such form and

denominations, have such maturities, and be subject to such

conditions as may be prescribed by regulations issued by the

Secretary. The Secretary may not deny a guarantee under this

section on the basis of the proposed repayment period for the note

or other obligation, unless the period is more than 20 years or the

Secretary determines that the period causes the guarantee to

constitute an unacceptable financial risk. Notwithstanding any

other provision of law and subject only to the absence of qualified

applicants or proposed activities and to the authority provided in

this section, to the extent approved or provided in appropriation

Acts, the Secretary shall enter into commitments to guarantee notes

and obligations under this section with an aggregate principal

amount of $2,000,000,000 for fiscal year 1993 and $2,000,000,000

for fiscal year 1994. Of the amount approved in any appropriation

Act for guarantees under this section in any fiscal year, the

Secretary shall allocate 70 percent for guarantees for metropolitan

cities, urban counties, and Indian tribes and 30 percent for

guarantees for units of general local government in nonentitlement

areas. The Secretary may waive the percentage requirements of the

preceding sentence in any fiscal year only to the extent that there

is an absence of qualified applicants or proposed activities from

metropolitan cities, urban counties, and Indian tribes or units of

general local government in nonentitlement areas.

(b) Prerequisites

No guarantee or commitment to guarantee shall be made with

respect to any note or other obligation if the issuer's total

outstanding notes or obligations guaranteed under this section

(excluding any amount defeased under the contract entered into

under subsection (d)(1)(A) of this section) would thereby exceed an

amount equal to 5 times the amount of the grant approval for the

issuer pursuant to section 5306 or 5307 of this title.

Notwithstanding any other provision of this chapter, grants

allocated to an issuer pursuant to this chapter (including program

income derived therefrom) are authorized for use in the payment of

principal and interest due (including such servicing, underwriting,

or other costs as may be specified in regulations of the Secretary)

on the notes or other obligations guaranteed pursuant to this

section.

(d) Repayment contract; security; pledge by State

(1) To assure the repayment of notes or other obligations and

charges incurred under this section and as a condition for

receiving such guarantees, the Secretary shall require the issuer

to -

(A) enter into a contract, in a form acceptable to the

Secretary, for repayment of notes or other obligations guaranteed

hereunder;

(B) pledge any grant for which the issuer may become eligible

under this chapter; and

security as may be deemed appropriate by the Secretary in making

such guarantees, including increments in local tax receipts

generated by the activities assisted under this chapter or

dispositions proceeds from the sale of land or rehabilitated

property.

(2) To assist in assuring the repayment of notes or other

obligations and charges incurred under this section, a State shall

pledge any grant for which the State may become eligible under this

chapter as security for notes or other obligations and charges

issued under this section by any unit of general local government

in a nonentitlement area in the State.

(e) Pledged grants for repayments

The Secretary is authorized, notwithstanding any other provision

of this chapter, to apply grants pledged pursuant to paragraphs

(1)(B) and (2) of subsection (d) of this section to any repayments

due the United States as a result of such guarantees.

(f) Full faith and credit of United States pledged for payment;

conclusiveness and validity of guarantee

The full faith and credit of the United States is pledged to the

payment of all guarantees made under this section. Any such

guarantee made by the Secretary shall be conclusive evidence of the

eligibility of the obligations for such guarantee with respect to

principal and interest, and the validity of any such guarantee so

made shall be incontestable in the hands of a holder of the

guaranteed obligations.

(g) Issuance of obligations by Secretary to Secretary of the

Treasury to satisfy authorized guarantee obligations;

establishment of maturities and rates of interest and purchase of

obligations by Secretary of the Treasury

The Secretary may issue obligations to the Secretary of the

Treasury in an amount outstanding at any one time sufficient to

enable the Secretary to carry out his obligations under guarantees

authorized by this section. The obligations issued under this

subsection shall have such maturities and bear such rate or rates

of interest as shall be determined by the Secretary of the

Treasury. The Secretary of the Treasury is authorized and directed

to purchase any obligations of the Secretary issued under this

section, and for such purposes is authorized to use as a public

debt transaction the proceeds from the sale of any securities

issued under chapter 31 of title 31, and the purposes for which

such securities may be issued under such chapter are extended to

include the purchases of the Secretary's obligations hereunder.

(h) Federal taxation of guaranteed obligations; grants to borrowing

entity or agency of taxable obligations for net interest costs,

etc.; limitation on amount of grant; assistance to issuer in

hardship cases

Obligations guaranteed under this section shall be subject to

Federal taxation as provided in subsection (j) of this section. The

Secretary is authorized to make, and to contract to make, grants,

in such amounts as may be approved in appropriations Acts, to or on

behalf of the issuing eligible public entity or public agency to

cover not to exceed 30 per centum of the net interest cost

(including such servicing, underwriting, or other costs as may be

specified in regulations of the Secretary) to the borrowing entity

or agency of such obligations. The Secretary may also, to the

extent approved in appropriation Acts, assist the issuer of a note

or other obligation guaranteed under this section in the payment of

all or a portion of the principal and interest amount due under the

note or other obligation, if the Secretary determines that the

issuer is unable to pay the amount because of circumstances of

extreme hardship beyond the control of the issuer.

(i) Omitted

(j) Inclusion within gross income for purpose of chapter 1 of title

26 of interest paid on taxable obligations

With respect to any obligation issued by a (!2) eligible public

entity or designated agency which is guaranteed pursuant to this

section, the interest paid on such obligation shall be included in

gross income for the purpose of chapter 1 of title 26.

(k) Outstanding obligations; limitation; monitoring use of

guarantees under this section

(1) The total amount of outstanding obligations guaranteed on a

cumulative basis by the Secretary pursuant to subsection (a) of

this section shall not at any time exceed $4,500,000,000 or such

higher amount as may be authorized to be appropriated for sections

5306 and 5307 of this title for any fiscal year.

(2) The Secretary shall monitor the use of guarantees under this

section by eligible public entities. If the Secretary finds that 50

percent of the aggregate guarantee authority has been committed,

the Secretary may -

(A) impose limitations on the amount of guarantees any one

entity may receive in any fiscal year of $35,000,000 for units of

general local government receiving grants under section 5306(b)

of this title and $7,000,000 for units of general local

government receiving grants under section 5306(d) of this title;

(B) request the enactment of legislation increasing the

aggregate limitation on guarantees under this section.

(l) Purchase of guaranteed obligations by Federal Financing Bank

Notes or other obligations guaranteed under this section may not

be purchased by the Federal Financing Bank.

(m) Limitation on imposition of fee or charge

No fee or charge may be imposed by the Secretary or any other

Federal agency on or with respect to a guarantee made by the

Secretary under this section after February 5, 1988.

(n) State assistance in submission of applications

Any State that has elected under section 5306(d)(2)(A) of this

title to distribute funds to units of general local government in

nonentitlement areas may assist such units in the submission of

applications for guarantees under this section.

(o) "Eligible public entity" defined

For purposes of this section, the term "eligible public entity"

means any unit of general local government, including units of

general local government in nonentitlement areas.

(p) Training and information activities relating to home guarantee

program

(1) The Secretary, in cooperation with eligible public entities,

shall carry out training and information activities with respect to

the guarantee program under this section. Such activities shall

commence not later than 1 year after November 28, 1990.(!3)

(2) The Secretary may use amounts set aside under section 5307 of

this title to carry out this subsection.

(q) Economic development grants

(1) Authorization

The Secretary may make grants in connection with notes or other

obligations guaranteed under this section to eligible public

entities for the purpose of enhancing the security of loans

guaranteed under this section or improving the viability of

projects financed with loans guaranteed under this section.

(2) Eligible activities

Assistance under this subsection may be used only for the

purposes of and in conjunction with projects and activities

assisted under subsection (a) of this section.

(3) Applications

Applications for assistance under this subsection may be

submitted only by eligible public entities, and shall be in the

form and in accordance with the procedures established by the

Secretary. Eligible public entities may apply for grants only in

conjunction with requests for guarantees under subsection (a) of

this section.

(4) Selection criteria

The Secretary shall establish criteria for awarding assistance

under this subsection. Such criteria shall include -

(A) the extent of need for such assistance;

(B) the level of distress in the community to be served and

in the jurisdiction applying for assistance;

potential capacity of the applicant to successfully carry out

the plan; and

(D) such other factors as the Secretary determines to be

appropriate.

(r) Guarantee of obligations backed by loans

(1) Authority

The Secretary may, upon such terms and conditions as the

Secretary considers appropriate, guarantee the timely payment of

the principal of and interest on such trust certificates or other

obligations as may -

(A) be offered by the Secretary or by any other offeror

approved for purposes of this subsection by the Secretary; and

(B) be based on and backed by a trust or pool composed of

notes or other obligations guaranteed or eligible for guarantee

by the Secretary under this section.

(2) Full faith and credit

To the same extent as provided in subsection (f) of this

section, the full faith and credit of the United States is

pledged to the payment of all amounts that may be required to be

paid under any guarantee made by the Secretary under this

subsection.

(3) Subrogation

If the Secretary pays a claim under a guarantee made under this

section, the Secretary shall be subrogated for all the rights of

the holder of the guaranteed certificate or obligation with

respect to such certificate or obligation.

(4) Effect of laws

No State or local law, and no Federal law, shall preclude or

limit the exercise by the Secretary of -

(A) the power to contract with respect to public offerings

and other sales of notes, trust certificates, and other

obligations guaranteed under this section upon such terms and

conditions as the Secretary deems appropriate;

(B) the right to enforce any such contract by any means

deemed appropriate by the Secretary; and

notes, certificates, or other obligations guaranteed under this

section, or constituting the trust or pool against which trust

certificates, or other obligations guaranteed under this

section, are offered.

-SOURCE-

(Pub. L. 93-383, title I, Sec. 108, Aug. 22, 1974, 88 Stat. 647;

Pub. L. 95-128, title I, Sec. 108, Oct. 12, 1977, 91 Stat. 1123;

Pub. L. 96-399, title I, Sec. 108, Oct. 8, 1980, 94 Stat. 1619;

Pub. L. 97-35, title III, Sec. 309(i), Aug. 13, 1981, 95 Stat. 397;

Pub. L. 98-181, title I, Sec. 108, Nov. 30, 1983, 97 Stat. 1168;

Pub. L. 98-479, title II, Secs. 203(l)(2), 204(k)(1), Oct. 17,

1984, 98 Stat. 2231, 2233; Pub. L. 99-272, title III, Sec. 3002(a),

Apr. 7, 1986, 100 Stat. 102; Pub. L. 100-242, title V, Sec. 514,

Feb. 5, 1988, 101 Stat. 1930; Pub. L. 101-625, title IX, Secs.

901(b), 910(b)-(g), Nov. 28, 1990, 104 Stat. 4385, 4389-4391; Pub.

L. 102-550, title VIII, Sec. 801(b), Oct. 28, 1992, 106 Stat. 3843;

Pub. L. 103-233, title II, Secs. 231, 232(a)(1), 233, Apr. 11,

1994, 108 Stat. 366, 368; Pub. L. 104-120, Sec. 3(b), Mar. 28,

1996, 110 Stat. 835.)

-REFTEXT-

REFERENCES IN TEXT

Section 1437o of this title, referred to in subsec. (a)(4), was

repealed by Pub. L. 101-625, title II, Sec. 289(b), Nov. 28, 1990,

104 Stat. 4128.

Title VI of the Housing Community Development Act of 1987,

referred to in subsec. (a)(4), is title VI of Pub. L. 100-242, Feb.

5, 1988, 101 Stat. 1951, which was set out as a note under section

1715l of Title 12, Banks and Banking, and was repealed by Pub. L.

101-625, title II, Sec. 289(b), Nov. 28, 1990, 104 Stat. 4128.

Section 916 of the Cranston-Gonzalez National Affordable Housing

Act, referred to in subsec. (a)(6), is section 916 of Pub. L.

101-625, as amended, which is set out as a note under section 5306

of this title.

-COD-

CODIFICATION

Subsec. (i) of this section amended section 711(22) of former

Title 31, Money and Finance. Subsec. (i) was originally enacted as

subsec. (f) of this section, and was redesignated as subsec. (i) by

Pub. L. 95-128, Sec. 108(2).

November 28, 1990, referred to in subsec. (p)(1), was in the

original "the date of the enactment of the Housing and Community

Development Act of 1990", and was translated as meaning the date of

enactment of the Cranston-Gonzalez National Affordable Housing Act,

Pub. L. 101-625, which enacted subsec. (p) of this section, to

reflect the probable intent of Congress and because no "Housing and

Community Development Act of 1990" has been enacted.

-MISC1-

AMENDMENTS

1996 - Subsec. (k)(1). Pub. L. 104-120 substituted

"$4,500,000,000" for "$3,500,000,000".

1994 - Subsec. (a). Pub. L. 103-233, Sec. 231, added cls. (5) and

(6).

Subsec. (q). Pub. L. 103-233, Sec. 232(a)(1), added subsec. (q).

Subsec. (r). Pub. L. 103-233, Sec. 233, added subsec. (r).

1992 - Subsec. (a). Pub. L. 102-550 amended fifth sentence

generally. Prior to amendment, fifth sentence read as follows:

"Notwithstanding any other provision of law and subject only to the

absence of qualified applicants or proposed activities and to the

authority provided in this section, to the extent approved or

provided in appropriation Acts, the Secretary shall enter into

commitments to guarantee notes and obligations under this section

with an aggregate principal amount of $300,000,000 during fiscal

year 1991 and $300,000,000 during fiscal year 1992."

1990 - Subsec. (a). Pub. L. 101-625, Sec. 910(e)(1), inserted at

end "Of the amount approved in any appropriation Act for guarantees

under this section in any fiscal year, the Secretary shall allocate

70 percent for guarantees for metropolitan cities, urban counties,

and Indian tribes and 30 percent for guarantees for units of

general local government in nonentitlement areas. The Secretary may

waive the percentage requirements of the preceding sentence in any

fiscal year only to the extent that there is an absence of

qualified applicants or proposed activities from metropolitan

cities, urban counties, and Indian tribes or units of general local

government in nonentitlement areas."

Pub. L. 101-625, Sec. 910(c), inserted "The Secretary may not

deny a guarantee under this section on the basis of the proposed

repayment period for the note or other obligation, unless the

period is more than 20 years or the Secretary determines that the

period causes the guarantee to constitute an unacceptable financial

risk."

Pub. L. 101-625, Sec. 910(b)(2), substituted a semicolon for ";

or" before "(3)" and added cl. (4).

Pub. L. 101-625, Sec. 910(b)(1)(A), substituted "eligible public

entity" and "eligible public entities" for "unit of general local

government" and "units of general local government", respectively,

wherever appearing.

Pub. L. 101-625, Sec. 901(b), amended last sentence generally.

Prior to amendment, last sentence read as follows: "Notwithstanding

any other provision of law and subject only to the absence of

qualified applicants or proposed activities, to the authority

provided in this section, and to any funding limitation approved in

appropriation Acts, the Secretary shall enter into commitments to

guarantee notes and obligations under this section with an

aggregate principal amount of $150,000,000 during fiscal year 1988,

and $153,000,000 during fiscal year 1989."

Subsec. (b). Pub. L. 101-625, Sec. 910(d), inserted "(excluding

any amount defeased under the contract entered into under

subsection (d)(1)(A) of this section)" after "this section",

substituted "5" for "three", and inserted reference to section 5307

of this title.

Subsec. (d). Pub. L. 101-625, Sec. 910(b)(4)(A), designated

existing provisions as par. (1), redesignated former pars. (1) to

(3) as subpars. (A) to (C), respectively, and added par. (2).

Subsec. (e). Pub. L. 101-625, Sec. 910(b)(4)(B), substituted

"paragraphs (1)(B) and (2) of subsection (d)" for "subsection

(d)(2)".

Subsec. (h). Pub. L. 101-625, Sec. 910(f), inserted at end "The

Secretary may also, to the extent approved in appropriation Acts,

assist the issuer of a note or other obligation guaranteed under

this section in the payment of all or a portion of the principal

and interest amount due under the note or other obligation, if the

Secretary determines that the issuer is unable to pay the amount

because of circumstances of extreme hardship beyond the control of

the issuer."

Pub. L. 101-625, Sec. 910(b)(1), substituted "entity or agency"

for "unit or agency" and "eligible public entity" for "unit of

general local government".

Subsec. (j). Pub. L. 101-625, Sec. 910(b)(1)(A), substituted

"eligible public entity" for "unit of general local government".

Subsec. (k). Pub. L. 101-625, Sec. 910(e)(2), designated existing

provisions as par. (1) and added par. (2).

Subsec. (n). Pub. L. 101-625, Sec. 910(b)(3), added subsec. (n).

Subsec. (o). Pub. L. 101-625, Sec. 910(b)(5), added subsec. (o).

Subsec. (p). Pub. L. 101-625, Sec. 910(g), added subsec. (p).

1988 - Subsec. (a). Pub. L. 100-242, Sec. 514(c), in first

sentence inserted cl. (1) designation and added cls. (2) and (3).

Pub. L. 100-242, Sec. 514(a), in last sentence struck out "during

fiscal year 1984" after "commitment" and substituted "$150,000,000

during fiscal year 1988, and $153,000,000 during fiscal year 1989"

for "$225,000,000".

Subsec. (m). Pub. L. 100-242, Sec. 514(b), added subsec. (m).

1986 - Subsec. (l). Pub. L. 99-272 added subsec. (l).

1984 - Subsec. (g). Pub. L. 98-479, Sec. 203(l)(2), substituted

"chapter 31 of title 31" for "the Second Liberty Bond Act, as now

or hereafter in force" and "such chapter" for "such Act".

Subsec. (h). Pub. L. 98-479, Sec. 204(k)(1), substituted

"subsection (j)" for "subsection (g)".

1983 - Subsec. (a). Pub. L. 98-181 inserted provision that a

guarantee under this section may be used to assist a grantee in

obtaining financing only if the grantee has made efforts to obtain

such financing without the use of such guarantee and cannot

complete such financing consistent with the timely execution of the

program plans without such guarantee, and substituted provisions

requiring the Secretary to enter into commitments during fiscal

year 1984 to guarantee notes and obligations under this section

with an aggregate principal amount of $225,000,000, notwithstanding

any other provision of law and subject only to the absence of

qualified applicants or proposed activities, for provisions

prohibiting the Secretary from entering into commitments during

fiscal year 1981 to guarantee under this section notes and other

obligations with an aggregate principal amount in excess of

$300,000,000.

1981 - Subsec. (d)(2). Pub. L. 97-35 struck out "approved or"

after "grant".

1980 - Subsec. (a). Pub. L. 96-399, Sec. 108(1), (2), inserted

provision respecting amounts as provided in appropriation Acts, and

provision relating to limitation of $300,000,000 the amount the

Secretary is authorized to guarantee during fiscal year 1981.

Subsec. (j). Pub. L. 96-399, Sec. 108(3), struck out

"Notwithstanding any other provision of this section" before "The

total amount".

1977 - Subsec. (a). Pub. L. 95-128, Sec. 108(1), (3), reenacted

substantially existing provisions and struck out "or assembly"

after "acquisition of", included rehabilitation of real property

owned by the unit of general local government, inserted provision

respecting form, denominations, maturities, and conditions of notes

or other obligations to be guaranteed, and struck out after

parenthetical text "to serve or be used in carrying out activities

which are eligible for assistance under section 5305 of this title

and are identified in the application under section 5304 of this

title, and with respect to which grants have been or are to be made

under section 5303 of this title, but no such guarantee shall be

issued in behalf of any agency designed to benefit, in or by the

flotation of any issue, a private individual or corporation".

Subsec. (b). Pub. L. 95-128, Sec. 108(1), (3), added subsec. (b)

and struck out prior provisions respecting: reservation and

withholding of prescribed amount for purpose of paying guaranteed

obligations, subject to being increased because of any

unanticipated, major reduction in estimated disposition proceeds;

pledge of full faith and credit of unit of general local government

to the Secretary for repayment of any amount required to be paid by

the United States pursuant to any guarantee; and pledge of

repayment of proceeds of grants in event of failure of repayment as

hereinbefore provided.

Subsecs. (c) to (e). Pub. L. 95-128, Sec. 108(3), added subsecs.

Subsecs. (f), (g). Pub. L. 95-128, Sec. 108(2), redesignated

former subsecs. (c) and (d) as (f) and (g).

Subsec. (h). Pub. L. 95-128, Sec. 108(2), (4), (5), redesignated

former subsec. (e) as (h) and substituted in first sentence

"subsection (j)" for "subsection (g)"; substituted in first

sentence "shall" for "may, at the option of the issuing unit of

general local government or designated agency,"; and in second

sentence "The Secretary is authorized to make, and to contract to

make, grants, in such amounts as may be approved in appropriations

Acts," for "In the event that taxable obligations are issued and

guaranteed, the Secretary is authorized to make, and to contract to

make, grants".

Subsec. (j). Pub. L. 95-128, Sec. 108(2), (6), redesignated

former subsec. (g) as (j) and substituted "is guaranteed pursuant

to" for "such unit or agency has elected to issue as a taxable

obligation pursuant to subsection (e) of".

Subsec. (k). Pub. L. 95-128, Sec. 108(7), added subsec. (k).

EFFECTIVE DATE OF 1996 AMENDMENT

Amendment by Pub. L. 104-120 to be construed to have become

effective Oct. 1, 1995, see section 13(a) of Pub. L. 104-120, set

out as an Effective and Termination Dates of 1996 Amendments note

under section 1437d of this title.

EFFECTIVE DATE OF 1994 AMENDMENT

Amendment by Pub. L. 103-233 applicable with respect to any

amounts made available to carry out subchapter II (Sec. 12721 et

seq.) of chapter 130 of this title after Apr. 11, 1994, and any

amounts made available to carry out that subchapter before that

date that remain uncommitted on that date, with Secretary to issue

any regulations necessary to carry out such amendment not later

than end of 45-day period beginning on that date, see section 209

of Pub. L. 103-233, set out as a note under section 5301 of this

title.

EFFECTIVE DATE OF 1986 AMENDMENT

Section 3002(b) of Pub. L. 99-272 provided that: "The amendment

made by subsection (a) [amending this section] shall take effect on

July 1, 1986."

EFFECTIVE DATE OF 1983 AMENDMENT

Amendment by Pub. L. 98-181 applicable only to funds available

for fiscal year 1984 and thereafter, see section 110(b) of Pub. L.

98-181, as amended, set out as a note under section 5316 of this

title.

EFFECTIVE DATE OF 1981 AMENDMENT

Amendment by Pub. L. 97-35 effective Oct. 1, 1981, see section

371 of Pub. L. 97-35, set out as an Effective Date note under

section 3701 of Title 12, Banks and Banking.

EFFECTIVE DATE OF 1977 AMENDMENT

Amendment by Pub. L. 95-128 effective Oct. 1, 1977, see section

114 of Pub. L. 95-128, set out as a note under section 5301 of this

title.

REGULATIONS

Section 910(i) of Pub. L. 101-625 provided that: "To carry out

the amendments made by this section [amending this section and

section 5313 of this title], the Secretary of Housing and Urban

Development shall -

"(1) issue proposed regulations not later than 90 days after

the date of the enactment of this Act [Nov. 28, 1990]; and

"(2) issue final regulations not later than 180 days after the

date of the enactment of this Act."

COMMUNITY DEVELOPMENT LOAN GUARANTEES

Section 910(a) of Pub. L. 101-625 provided that:

"(1) Purposes. - The purposes of the amendments made by this

section [amending this section and section 5313 of this title] are

"(A) to reaffirm the commitment of the Federal Government to

assist local governments in their efforts in stimulating economic

and community development activities needed to combat severe

economic distress and to help in promoting economic development

activities needed to aid in economic recovery; and

"(B) to promote revitalization and development projects

undertaken by local governments that principally benefit persons

of low and moderate income, the elimination of slums and blight,

and to meet urgent community needs, with special priority for

projects located in areas designated as enterprise zones by the

Federal Government or by any State.

"(2) Objectives. - In order to further the purpose described in

paragraph (1), activities undertaken pursuant to the amendments

made by this section shall be directed toward meeting the

objectives set forth in sections 101(c) and 104(b)(3) of the

Housing and Community Development Act of 1974 (42 U.S.C. 5301(c)

and 5304(b)(3)) and the additional objectives of -

"(A) encouraging local governments to establish public-private

partnerships;

"(B) preserving housing affordable for persons of low and

moderate income; and

"(C) creating permanent employment opportunities, primarily for

persons of low and moderate income."

ADMINISTRATIVE ACTIONS FOR PROVISION OF PRIVATE SECTOR FINANCING OF

GUARANTEED LOANS

Section 3002(c) of Pub. L. 99-272 provided that: "The Secretary

of Housing and Urban Development shall take such administrative

actions as are necessary to provide by the effective date of

subsection (a) [July 1, 1986] private sector financing of loans

guaranteed under section 108 of the Housing and Community

Development Act of 1974 [this section]."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 5301, 5304, 5306, 5313,

5318 of this title; title 26 section 42; title 31 section 1305.

-FOOTNOTE-

(!1) See References in Text note below.

(!2) So in original. Probably should be "an".

(!3) See Codification note below.

-End-

-CITE-

42 USC Sec. 5309 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 69 - COMMUNITY DEVELOPMENT

-HEAD-

Sec. 5309. Nondiscrimination in programs and activities

-STATUTE-

(a) Prohibited conduct

No person in the United States shall on the ground of race,

color, national origin, religion, or sex be excluded from

participation in, be denied the benefits of, or be subjected to

discrimination under any program or activity funded in whole or in

part with funds made available under this chapter. Any prohibition

against discrimination on the basis of age under the Age

Discrimination Act of 1975 [42 U.S.C. 6101 et seq.] or with respect

to an otherwise qualified handicapped individual as provided in

section 794 of title 29 shall also apply to any such program or

activity.

(b) Compliance procedures available to Secretary

Whenever the Secretary determines that a State or unit of general

local government which is a recipient of assistance under this

chapter has failed to comply with subsection (a) of this section or

an applicable regulation, he shall notify the Governor of such

State or the chief executive officer of such unit of local

government of the noncompliance and shall request the Governor or

the chief executive officer to secure compliance. If within a

reasonable period of time, not to exceed sixty days, the Governor

or the chief executive officer fails or refuses to secure

compliance, the Secretary is authorized to (1) refer the matter to

the Attorney General with a recommendation that an appropriate

civil action be instituted; (2) exercise the powers and functions

provided by title VI of the Civil Rights Act of 1964 (42 U.S.C.

2000d); (3) exercise the powers and functions provided for in

section 5311(a) of this title; or (4) take such other action as may

be provided by law.

When a matter is referred to the Attorney General pursuant to

subsection (b) of this section, or whenever he has reason to

believe that a State government or unit of general local government

is engaged in a pattern or practice in violation of the provisions

of this section, the Attorney General may bring a civil action in

any appropriate United States district court for such relief as may

be appropriate, including injunctive relief.

(d) Waiver of race discrimination prohibitions regarding assistance

to Hawaiian Home Lands

The provisions of this section and section 5304(b)(2) of this

title which relate to discrimination on the basis of race shall not

apply to the provision of assistance by grantees under this chapter

to the Hawaiian Home Lands.

-SOURCE-

(Pub. L. 93-383, title I, Sec. 109, Aug. 22, 1974, 88 Stat. 649;

Pub. L. 97-35, title III, Sec. 306, Aug. 13, 1981, 95 Stat. 392;

Pub. L. 101-625, title IX, Secs. 911, 912(a), Nov. 28, 1990, 104

Stat. 4392.)

-REFTEXT-

REFERENCES IN TEXT

The Age Discrimination Act of 1975, referred to in subsec. (a),

is title III of Pub. L. 94-135, Nov. 28, 1975, 89 Stat. 728, as

amended, which is classified generally to chapter 76 (Sec. 6101 et

seq.) of this title. For complete classification of this Act to the

Code, see Short Title note set out under section 6101 of this title

and Tables.

The Civil Rights Act of 1964, referred to in subsec. (b), is Pub.

L. 88-352, July 2, 1964, 78 Stat. 241, as amended. Title VI of the

Civil Rights Act of 1964 is classified generally to subchapter V

(Sec. 2000d et seq.) of chapter 21 of this title. For complete

classification of this Act to the Code, see Short Title note set

out under section 2000a of this title and Tables.

-MISC1-

AMENDMENTS

1990 - Subsec. (a). Pub. L. 101-625, Sec. 912(a), inserted

"religion," after "national origin,".

Subsec. (d). Pub. L. 101-625, Sec. 911, added subsec. (d).

1981 - Subsec. (a). Pub. L. 97-35 inserted provisions respecting

age discrimination.

EFFECTIVE DATE OF 1990 AMENDMENT

Section 912(b) of Pub. L. 101-625 provided that: "The amendment

made by subsection (a) [amending this section] shall apply with

respect to conduct relating to discrimination occurring after the

date of the enactment of this Act [Nov. 28, 1990]."

EFFECTIVE DATE OF 1981 AMENDMENT

Amendment by Pub. L. 97-35 effective Oct. 1, 1981, see section

371 of Pub. L. 97-35, set out as an Effective Date note under

section 3701 of Title 12, Banks and Banking.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 3608, 5307 of this title.

-End-

-CITE-

42 USC Sec. 5310 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 69 - COMMUNITY DEVELOPMENT

-HEAD-

Sec. 5310. Labor standards; rate of wages; exceptions; enforcement

powers

-STATUTE-

(a) All laborers and mechanics employed by contractors or

subcontractors in the performance of construction work financed in

whole or in part with assistance received under this chapter shall

be paid wages at rates not less than those prevailing on similar

construction in the locality as determined by the Secretary of

Labor in accordance with sections 3141-3144, 3146, and 3147 of

title 40: Provided, That this section shall apply to the

rehabilitation of residential property only if such property

contains not less than 8 units. The Secretary of Labor shall have,

with respect to such labor standards, the authority and functions

set forth in Reorganization Plan Numbered 14 of 1950 (15 F.R. 3176;

64 Stat. 1267) and section 3145 of title 40.

(b) Subsection (a) of this section shall not apply to any

individual that -

(1) performs services for which the individual volunteered;

(2)(A) does not receive compensation for such services; or

(B) is paid expenses, reasonable benefits, or a nominal fee for

such services; and

(3) is not otherwise employed at any time in the construction

work.

-SOURCE-

(Pub. L. 93-383, title I, Sec. 110, Aug. 22, 1974, 88 Stat. 649;

Pub. L. 97-35, title III, Sec. 309(j), Aug. 13, 1981, 95 Stat. 397;

Pub. L. 100-242, title V, Sec. 523, Feb. 5, 1988, 101 Stat. 1939;

Pub. L. 101-625, title IX, Sec. 955(a), Nov. 28, 1990, 104 Stat.

4420.)

-REFTEXT-

REFERENCES IN TEXT

Reorganization Plan Numbered 14 of 1950, referred to in subsec.

(a), is set out in the Appendix to Title 5, Government Organization

and Employees.

-COD-

CODIFICATION

In subsec. (a), "sections 3141-3144, 3146, and 3147 of title 40"

substituted for "the Davis-Bacon Act, as amended (40 U.S.C. 276a -

276a-5)" and "section 3145 of title 40" substituted for "section 2

of the Act of June 13, 1934, as amended (48 Stat. 948; 40 U.S.C.

276(c))", meaning 276c, on authority of Pub. L. 107-217, Sec. 5(c),

Aug. 21, 2002, 116 Stat. 1303, the first section of which enacted

Title 40, Public Buildings, Property, and Works.

-MISC1-

AMENDMENTS

1990 - Pub. L. 101-625 designated existing provisions as subsec.

(a) and added subsec. (b).

1988 - Pub. L. 100-242, which directed the substitution of

"contains not less than 8 units" for "is designed for residential

use of eight or more families", was executed by making the

substitution for "is designed for residential use for eight or more

families" as the probable intent of Congress.

1981 - Pub. L. 97-35 substituted "assistance" for "grants".

EFFECTIVE DATE OF 1990 AMENDMENT

Amendment by Pub. L. 101-625 applicable to any volunteer services

provided before, on, or after Nov. 28, 1990, except that such

amendment may not be construed to require repayment of any wages

paid before Nov. 28, 1990, for services provided before such date,

see section 955(d) of Pub. L. 101-625, set out as a note under

section 1437j of this title.

EFFECTIVE DATE OF 1981 AMENDMENT

Amendment by Pub. L. 97-35 effective Oct. 1, 1981, see section

371 of Pub. L. 97-35, set out as an Effective Date note under

section 3701 of Title 12, Banks and Banking.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 5307 of this title.

-End-

-CITE-

42 USC Sec. 5311 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 69 - COMMUNITY DEVELOPMENT

-HEAD-

Sec. 5311. Remedies for noncompliance with community development

requirements

-STATUTE-

(a) Notice and hearing; termination, reduction, or limitation of

payments by Secretary

If the Secretary finds after reasonable notice and opportunity

for hearing that a recipient of assistance under this chapter has

failed to comply substantially with any provision of this chapter,

the Secretary, until he is satisfied that there is no longer any

such failure to comply, shall -

(1) terminate payments to the recipient under this chapter, or

(2) reduce payments to the recipient under this chapter by an

amount equal to the amount of such payments which were not

expended in accordance with this chapter, or

(3) limit the availability of payments under this chapter to

programs, projects, or activities not affected by such failure to

comply.

(b) Referral of matters to Attorney General; institution of civil

action by Attorney General

(1) In lieu of, or in addition to, any action authorized by

subsection (a) of this section, the Secretary may, if he has reason

to believe that a recipient has failed to comply substantially with

any provision of this chapter, refer the matter to the Attorney

General of the United States with a recommendation that an

appropriate civil action be instituted.

(2) Upon such a referral the Attorney General may bring a civil

action in any United States district court having venue thereof for

such relief as may be appropriate, including an action to recover

the amount of the assistance furnished under this chapter which was

not expended in accordance with it, or for mandatory or injunctive

relief.

filing of record of proceedings in court by Secretary;

affirmance, etc., of findings of Secretary; exclusiveness of

jurisdiction of court; review by Supreme Court on writ of

certiorari or certification

(1) Any recipient which receives notice under subsection (a) of

this section of the termination, reduction, or limitation of

payments under this chapter may, within sixty days after receiving

such notice, file with the United States Court of Appeals for the

circuit in which such State is located, or in the United States

Court of Appeals for the District of Columbia, a petition for

review of the Secretary's action. The petitioner shall forthwith

transmit copies of the petition to the Secretary and the Attorney

General of the United States, who shall represent the Secretary in

the litigation.

(2) The Secretary shall file in the court record of the

proceeding on which he based his action, as provided in section

2112 of title 28. No objection to the action of the Secretary shall

be considered by the court unless such objection has been urged

before the Secretary.

(3) The court shall have jurisdiction to affirm or modify the

action of the Secretary or to set it aside in whole or in part. The

findings of fact by the Secretary, if supported by substantial

evidence on the record considered as a whole, shall be conclusive.

The court may order additional evidence to be taken by the

Secretary, and to be made part of the record. The Secretary may

modify his findings of fact, or make new findings, by reason of the

new evidence so taken and filed with the court, and he shall also

file such modified or new findings, which findings with respect to

questions of fact shall be conclusive if supported by substantial

evidence on the record considered as a whole, and shall also file

his recommendation, if any, for the modification or setting aside

of his original action.

(4) Upon the filing of the record with the court, the

jurisdiction of the court shall be exclusive and its judgment shall

be final, except that such judgment shall be subject to review by

the Supreme Court of the United States upon writ of certiorari or

certification as provided in section 1254 of title 28.

-SOURCE-

(Pub. L. 93-383, title I, Sec. 111, Aug. 22, 1974, 88 Stat. 650.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 5306, 5309 of this title.

-End-

-CITE-

42 USC Sec. 5312 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 69 - COMMUNITY DEVELOPMENT

-HEAD-

Sec. 5312. Use of grants for settlement of outstanding urban

renewal loans of units of general local government

-STATUTE-

(a) Limitation on amounts; prerequisites

The Secretary is authorized, notwithstanding any other provision

of this chapter, to apply a portion of the grants, not to exceed 20

per centum thereof without the request of the recipient, made or to

be made under section 5303 of this title in any fiscal year

pursuant to an allocation under section 5306 of this title to any

unit of general local government toward payment of the principal

of, and accrued interest on, any temporary loan made in connection

with urban renewal projects under title I of the Housing Act of

1949 [42 U.S.C. 1450 et seq.] being carried out within the

jurisdiction of such unit of general local government if -

(1) the Secretary determines, after consultation with the local

public agency carrying out the project and the chief executive of

such unit of general local government, that the project cannot be

completed without additional capital grants, or

(2) the local public agency carrying out the project submits to

the Secretary an appropriate request which is concurred in by the

governing body of such unit of general local government.

In determining the amounts to be applied to the payment of

temporary loans, the Secretary shall make an accounting for each

project taking into consideration the costs incurred or to be

incurred, the estimated proceeds upon any sale or disposition of

property, and the capital grants approved for the project.

(b) Approval by Secretary of financial settlement of urban renewal

project

Upon application by any local public agency carrying out an urban

renewal project under title I of the Housing Act of 1949 [42 U.S.C.

1450 et seq.], which application is approved by the governing body

of the unit of general local government in which the project is

located, the Secretary may approve a financial settlement of such

project if he finds that a surplus of capital grant funds after

full repayment of temporary loan indebtedness will result and may

authorize the unit of general local government to use such surplus

funds, without deduction or offset, in accordance with the

provisions of this chapter.

-SOURCE-

(Pub. L. 93-383, title I, Sec. 112, Aug. 22, 1974, 88 Stat. 650;

Pub. L. 97-35, title III, Sec. 309(k), Aug. 13, 1981, 95 Stat. 397;

Pub. L. 98-181, title I, Sec. 109, Nov. 30, 1983, 97 Stat. 1168;

Pub. L. 98-479, title I, Sec. 101(a)(13)(A), Oct. 17, 1984, 98

Stat. 2220.)

-REFTEXT-

REFERENCES IN TEXT

The Housing Act of 1949, referred to in subsecs. (a) and (b), is

act July 15, 1949, ch. 338, 63 Stat. 413, as amended. Title I of

the Housing Act of 1949 was classified generally to subchapter II

(Sec. 1450 et seq.) of chapter 8A of this title, and was omitted

from the Code pursuant to section 5316 of this title which

terminated authority to make grants or loans under such title I

after Jan. 1, 1975. For complete classification of this Act to the

Code, see Short Title note set out under section 1441 of this title

and Tables.

-MISC1-

AMENDMENTS

1984 - Subsec. (c). Pub. L. 98-479 struck out subsec. (c) which

related to retention of program income and prerequisites.

1983 - Subsec. (c). Pub. L. 98-181 added subsec. (c).

1981 - Subsec. (a). Pub. L. 97-35 substituted "5303" for

"5303(a)".

EFFECTIVE DATE OF 1983 AMENDMENT

Amendment by Pub. L. 98-181 applicable only to funds available

for fiscal year 1984 and thereafter, see section 110(b) of Pub. L.

98-181, as amended, set out as a note under section 5316 of this

title.

EFFECTIVE DATE OF 1981 AMENDMENT

Amendment by Pub. L. 97-35 effective Oct. 1, 1981, see section

371 of Pub. L. 97-35, set out as an Effective Date note under

section 3701 of Title 12, Banks and Banking.

-End-

-CITE-

42 USC Sec. 5313 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 69 - COMMUNITY DEVELOPMENT

-HEAD-

Sec. 5313. Reporting requirements

-STATUTE-

(a) Not later than 180 days after the close of each fiscal year

in which assistance under this chapter is furnished, the Secretary

shall submit to the Congress a report which shall contain -

(1) a description of the progress made in accomplishing the

objectives of this chapter;

(2) a summary of the use of such funds during the preceding

fiscal year;

(3) with respect to the action grants authorized under section

5318 of this title, a listing of each unit of general local

government receiving funds and the amount of such grants, as well

as a brief summary of the projects funded for each such unit, the

extent of financial participation by other public or private

entities, and the impact on employment and economic activity of

such projects during the previous fiscal year; and

(4) a description of the activities carried out under section

5308 of this title.

(b) The Secretary is authorized to require recipients of

assistance under this chapter to submit to him such reports and

other information as may be necessary in order for the Secretary to

make the report required by subsection (a) of this section.

-SOURCE-

(Pub. L. 93-383, title I, Sec. 113, Aug. 22, 1974, 88 Stat. 651;

Pub. L. 95-128, title I, Sec. 109, Oct. 12, 1977, 91 Stat. 1124;

Pub. L. 97-35, title III, Sec. 309(l), Aug. 13, 1981, 95 Stat. 397;

Pub. L. 101-625, title IX, Sec. 910(h), Nov. 28, 1990, 104 Stat.

4392.)

-MISC1-

AMENDMENTS

1990 - Subsec. (a)(4). Pub. L. 101-625 added par. (4).

1981 - Subsec. (a)(2). Pub. L. 97-35 struck out requirement

respecting approval by the Secretary.

1977 - Subsec. (a)(3). Pub. L. 95-128 added par. (3).

EFFECTIVE DATE OF 1981 AMENDMENT

Amendment by Pub. L. 97-35 effective Oct. 1, 1981, see section

371 of Pub. L. 97-35, set out as an Effective Date note under

section 3701 of Title 12, Banks and Banking.

EFFECTIVE DATE OF 1977 AMENDMENT

Amendment by Pub. L. 95-128 effective Oct. 1, 1977, see section

114 of Pub. L. 95-128, set out as a note under section 5301 of this

title.

STUDY REGARDING AVAILABILITY OF HOUSING PROXIMATE TO PLACES OF

EMPLOYMENT

Section 919 of Pub. L. 101-625 directed Secretary of Housing and

Urban Development to conduct a study regarding availability of

housing within reasonable proximity of places of employment and to

submit a report not later than expiration of 1-year period

beginning on Nov. 28, 1990, to appropriate committees of Congress

containing results and conclusions of such study, as well as

proposed strategies to increase availability of housing for low-

and moderate-income families within reasonable proximity of places

of employment for working members of such families to and prevent

geographical divergence of such housing and places of employment.

STUDY ON INVOLUNTARY HOUSING DISPLACEMENT; REPORT TO CONGRESS

Pub. L. 96-399, title I, Sec. 105(b), Oct. 8, 1980, 94 Stat.

1618, directed Secretary of Housing and Urban Development to

continue study on involuntary displacement conducted under Pub. L.

95-557, title IX, Sec. 902, Oct. 31, 1978, 92 Stat. 2125, set out

below, and transmit, not later than Mar. 30, 1981, a report to

Congress containing data collected since initial report submitted

under such section 902, and further recommendations on minimizing

involuntary displacement and alleviating problems caused by such

displacement.

ADEQUACY, EFFECTIVENESS, AND EQUITY OF FORMULA FOR ALLOCATION OF

FUNDS; REPORT TO CONGRESS

Pub. L. 96-399, title I, Sec. 113, Oct. 8, 1980, 94 Stat. 1622,

directed Secretary of Housing and Urban Development, not later than

Jan. 1, 1983, to report to Congress with respect to adequacy,

effectiveness, and equity of formula used for allocation of funds

under title I of the Housing and Community Development Act of 1974

(this chapter), with specific analysis and recommendations

concerning manner in which such formula is or could be affected by

data derived from 1980 decennial census.

STATEMENT OF POLICY AND STUDY ON HOUSING DISPLACEMENT

Pub. L. 95-557, title IX, Sec. 902, Oct. 31, 1978, 92 Stat. 2125,

declared it to be the policy of Congress that in administration of

Federal housing and development programs, involuntary displacement

of persons from homes and neighborhoods should be minimized and in

keeping with such stated policy, authorized Secretary of Housing

and Urban Development to conduct a study on nature and extent of

such displacement and, not later than Jan. 31, 1979, report to

Congress on recommendations for formulation of a national policy to

minimize such displacement.

STUDY ON SMALL CITIES; REPORT TO PRESIDENT AND CONGRESS;

ALTERNATIVE FORMULAE

Pub. L. 95-128, title I, Sec. 113, Oct. 12, 1977, 91 Stat. 1111,

directed Secretary of Housing and Urban Development to conduct a

study and, not later than one year after Oct. 12, 1977, report to

President and Congress recommendations on formation of a national

policy on developmental needs of small cities and, among other

things, include in such report alternative verifiable formulae to

be used in distribution of discretionary balance funds available

for allocation to such small cities under this chapter.

-End-

-CITE-

42 USC Sec. 5314 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 69 - COMMUNITY DEVELOPMENT

-HEAD-

Sec. 5314. Consultation by Secretary with other Federal

departments, etc.

-STATUTE-

In carrying out the provisions of this chapter including the

issuance of regulations, the Secretary shall consult with other

Federal departments and agencies administering Federal grant-in-aid

programs.

-SOURCE-

(Pub. L. 93-383, title I, Sec. 114, Aug. 22, 1974, 88 Stat. 651.)

-End-

-CITE-

42 USC Sec. 5315 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 69 - COMMUNITY DEVELOPMENT

-HEAD-

Sec. 5315. Interstate agreements or compacts; purposes

-STATUTE-

The consent of the Congress is hereby given to any two or more

States to enter into agreements or compacts, not in conflict with

any law of the United States, for cooperative effort and mutual

assistance in support of community development planning and

programs carried out under this chapter as they pertain to

interstate areas and to localities within such States, and to

establish such agencies, joint or otherwise, as they may deem

desirable for making such agreements and compacts effective.

-SOURCE-

(Pub. L. 93-383, title I, Sec. 115, Aug. 22, 1974, 88 Stat. 651.)

-End-

-CITE-

42 USC Sec. 5316 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 69 - COMMUNITY DEVELOPMENT

-HEAD-

Sec. 5316. Transition provisions

-STATUTE-

(a) Prohibition on new grants or loans after January 1, 1975;

exceptions

Except with respect to projects and programs for which funds have

been previously committed, no new grants or loans shall be made

after January 1, 1975, under (1) title I of the Demonstration

Cities and Metropolitan Development Act of 1966 [42 U.S.C. 3301 et

seq.], (2) title I of the Housing Act of 1949 [42 U.S.C. 1450 et

seq.] (3) section 702 or section 703 of the Housing and Urban

Development Act of 1965 [42 U.S.C. 3102 or 3103], (4) title II of

the Housing Amendments of 1955 [42 U.S.C. 1491 et seq.], or (5)

title VII of the Housing Act of 1961 [42 U.S.C. 1500 et seq.].

(b) Final date in fiscal year for submission of application for

grant; establishment by Secretary

In the case of funds available for any fiscal year, the Secretary

shall not consider any statement under section 5304(a) of this

title, unless such statement is submitted on or prior to such date

as the Secretary shall establish as the final date for submission

of statements for that year.

-SOURCE-

(Pub. L. 93-383, title I, Sec. 116, Aug. 22, 1974, 88 Stat. 652;

Pub. L. 94-375, Sec. 15(d), Aug. 3, 1976, 90 Stat. 1076; Pub. L.

96-399, title I, Sec. 111(h), Oct. 8, 1980, 94 Stat. 1622; Pub. L.

97-35, title III, Sec. 309(m), Aug. 13, 1981, 95 Stat. 397; Pub. L.

98-181, title I, Sec. 110(a), Nov. 30, 1983, 97 Stat. 1168.)

-REFTEXT-

REFERENCES IN TEXT

The Demonstration Cities and Metropolitan Development Act of

1966, referred to in subsec. (a), is Pub. L. 89-754, Nov. 3, 1966,

80 Stat. 1255, as amended. Title I of the Act was classified

principally to subchapter I (Sec. 3301 et seq.) of chapter 41 of

this title, and was omitted from the Code pursuant to this section

which terminated authority to make grants or loans under such title

I after Jan. 1, 1975. For complete classification of this Act to

the Code, see Short Title note set out under section 3331 of this

title and Tables.

The Housing Act of 1949, referred to in subsec. (a), is act July

15, 1949, ch. 338, 63 Stat. 413, as amended. Title I of the Housing

Act of 1949 was classified generally to subchapter II (Sec. 1450 et

seq.) of chapter 8A of this title, and was omitted from the Code

pursuant to this section which terminated authority to make grants

or loans under such title I after Jan. 1, 1975. For complete

classification of this Act to the Code, see Short Title note set

out under section 1441 of this title and Tables.

Sections 702 and 703 of the Housing and Urban Development Act of

1965 [42 U.S.C. 3102, 3103], referred to in subsec. (a), were

omitted from the Code pursuant to this section which terminated the

authority to make grants or loans under those sections after Jan.

1, 1975.

The Housing Amendments of 1955, referred to in subsec. (a), is

act Aug. 11, 1955, ch. 783, 69 Stat. 645, as amended. Title II of

the Housing Amendments of 1955 was classified generally to chapter

8B (Sec. 1491 et seq.) of this title, and was omitted from the Code

pursuant to this section which terminated authority to make grants

or loans under such title II after Jan. 1, 1975. For complete

classification of this Act to the Code, see Short Title note set

out under section 1701 of Title 12, Banks and Banking, and Tables.

The Housing Act of 1961, referred to in subsec. (a), is Pub. L.

87-70, June 30, 1961, 87 Stat. 149, as amended. Title VII of the

Housing Act of 1961 was classified generally to chapter 8C (Sec.

1500 et seq.) of this title, and was omitted from the Code pursuant

to this section which terminated authority to make grants or loans

under such title VII after Jan. 1, 1975. For complete

classification of this Act to the Code, see Short Title note set

out under section 1701 of Title 12, Banks and Banking, and Tables.

-COD-

CODIFICATION

Subsecs. (c), (d), and (e) of section 116 of Pub. L. 93-383 were

omitted from this section. Subsec. (c) amended section 1453(b) of

this title, subsec. (d) amended section 3311(b) and (c) of this

title, and subsec. (e) amended section 1452b(a) and (h) of this

title.

-MISC1-

AMENDMENTS

1983 - Subsec. (b). Pub. L. 98-181 substituted "prior to such

date" for "prior to such date (in that fiscal year)", and "for that

year" for "in that year".

1981 - Subsec. (b). Pub. L. 97-35 substituted provisions relating

to submission of required statement for provisions relating to

submission of required application.

1980 - Subsec. (b). Pub. L. 96-399, Sec. 111(h), redesignated

subsec. (g) as (b) and struck out "or from a unit of general local

government for a grant pursuant to section 5306(h) of this title"

after "section 5306(a) of this title". Former subsec. (b), relating

to deductions from grants for fiscal year 1975, was struck out.

Subsec. (f). Pub. L. 96-399, Sec. 111(h)(1), struck out subsec.

(f) relating to advances for program period beginning Jan. 1, 1975.

Subsec. (g). Pub. L. 96-399, Sec. 111(h)(1), redesignated subsec.

(g) as (b).

Subsec. (h). Pub. L. 96-399, Sec. 111(h)(1), struck out subsec.

(h) relating to sources of funds to meet deficiency in fiscal year

1977.

1976 - Subsec. (h). Pub. L. 94-375 added subsec. (h).

EFFECTIVE DATE OF 1983 AMENDMENT

Section 110(b) of Pub. L. 98-181, as amended by Pub. L. 98-479,

title I, Sec. 101(b)(1), Oct. 17, 1984, 98 Stat. 2220, provided

that: "The amendments made by this part [part A (Secs. 101-110) of

title I of Pub. L. 98-181, amending this section, sections 5301 to

5308 and 5312 of this title, and provisions set out as a note under

section 5305 of this title] shall apply only to funds available for

fiscal year 1984 and thereafter."

EFFECTIVE DATE OF 1981 AMENDMENT

Amendment by Pub. L. 97-35 effective Oct. 1, 1981, see section

371 of Pub. L. 97-35, set out as an Effective Date note under

section 3701 of Title 12, Banks and Banking.

-End-

-CITE-

42 USC Sec. 5317 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 69 - COMMUNITY DEVELOPMENT

-HEAD-

Sec. 5317. Liquidation of superseded or inactive programs

-STATUTE-

The Secretary is authorized to transfer the assets and

liabilities of any program which is superseded or inactive by

reason of this chapter to the revolving fund for liquidating

programs established pursuant to title II of the Independent

Offices Appropriation Act, 1955 (Public Law 83-428; 68 Stat. 272,

295) [12 U.S.C. 1701g-5].

-SOURCE-

(Pub. L. 93-383, title I, Sec. 117(b), Aug. 22, 1974, 88 Stat. 653;

Pub. L. 98-479, title II, Sec. 204(k)(2), Oct. 17, 1984, 98 Stat.

2233.)

-MISC1-

AMENDMENTS

1984 - Pub. L. 98-479 substituted "title II of the Independent

Offices Appropriation Act, 1955 (Public Law 83-428; 68 Stat. 272,

295)" for "title II of the Independent Offices Appropriation Act of

1965 (Public Law 81-428; 68 Stat. 272, 295)".

-End-

-CITE-

42 USC Sec. 5318 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 69 - COMMUNITY DEVELOPMENT

-HEAD-

Sec. 5318. Urban development action grants

-STATUTE-

(a) Authorization; purpose; amount

The Secretary is authorized to make urban development action

grants to cities and urban counties which are experiencing severe

economic distress to help stimulate economic development activity

needed to aid in economic recovery. There are authorized to be

appropriated to carry out this section $225,000,000 for fiscal year

1988, and $225,000,000 for fiscal year 1989. Any amount

appropriated under this subsection shall remain available until

expended.

(b) Eligibility of cities and urban counties; criteria and

standards; regulations

(1) Urban development action grants shall be made only to cities

and urban counties which have, in the determination of the

Secretary, demonstrated results in providing housing for low- and

moderate-income persons and in providing equal opportunity in

housing and employment for low- and moderate-income persons and

members of minority groups. The Secretary shall issue regulations

establishing criteria in accordance with the preceding sentence and

setting forth minimum standards for determining the level of

economic distress of cities and urban counties for eligibility for

such grants. These standards shall take into account factors such

as the age of housing; the extent of poverty; the extent of

population lag; growth of per capita income; and the extent of

unemployment, job lag, or surplus labor. Any city that has a

population of less than 50,000 persons and is not the central city

of a metropolitan area, and that was eligible for fiscal year 1983

under this paragraph for assistance under this section, shall

continue to be eligible for such assistance until the Secretary

revises the standards for eligibility for such cities under this

paragraph and includes the extent of unemployment, job lag, or

labor surplus as a standard of distress for such cities. The

Secretary shall make such revision as soon as practicable following

November 30, 1983.

(2) A city or urban county which fails to meet the minimum

standards established pursuant to paragraph (1) shall be eligible

for assistance under this section if it meets the requirements of

the first sentence of such paragraph and -

(A) in the case of a city with a population of fifty thousand

persons or more or an urban county, contains an area (i) composed

of one or more contiguous census tracts, enumeration districts,

neighborhood statistics areas, or block groups, as defined by the

United States Bureau of the Census, having at least a population

of ten thousand persons or 10 per centum of the population of the

city or urban county; (ii) in which at least 70 per centum of the

residents have incomes below 80 per centum of the median income

of the city or urban county; and (iii) in which at least 30 per

centum of the residents have incomes below the national poverty

level; or

(B) in the case of a city with a population of less than fifty

thousand persons, contains an area (i) composed of one or more

contiguous census tracts, enumeration districts, neighborhood

statistics areas, or block groups or other areas defined by the

United States Bureau of the Census or for which data certified by

the United States Bureau of the Census are available having at

least a population of two thousand five hundred persons or 10 per

centum of the population of the city, whichever is greater; (ii)

in which at least 70 per centum of the residents have incomes

below 80 per centum of the median income of the city; and (iii)

in which at least 30 per centum of the residents have incomes

below the national poverty level.

The Secretary shall use up to, but not more than, 20 per centum of

the funds appropriated for use in any fiscal year under this

section for the purpose of making grants to cities and urban

counties eligible under this paragraph.

assurance of notice and comment; assurance of consideration on

historical landmarks

Applications for assistance under this section shall -

(1) in the case of an application for a grant under subsection

(b)(2) of this section, include documentation of grant

eligibility in accordance with the standards described in that

subsection;

(2) set forth the activities for which assistance is sought,

including (A) an estimate of the costs and general location of

the activities; (B) a summary of the public and private resources

which are expected to be made available in connection with the

activities, including how the activities will take advantage of

unique opportunities to attract private investment; and (C) an

analysis of the economic benefits which the activities are

expected to produce;

(3) contain a certification satisfactory to the Secretary that

the applicant, prior to submission of its application, (A) has

held public hearings to obtain the views of citizens,

particularly residents of the area in which the proposed

activities are to be carried out; (B) has analyzed the impact of

these proposed activities on the residents, particularly those of

low and moderate income, of the residential neighborhood, and on

the neighborhood in which they are to be carried out; and (C) has

made available the analysis described in clause (B) to any

interested person or organization residing or located in the

neighborhood in which the proposed activities are to be carried

out; and

(4) contain a certification satisfactory to the Secretary that

the applicant, prior to submission of its application, (A) has

identified all properties, if any, which are included on the

National Register of Historic Places and which, as determined by

the applicant, will be affected by the project for which the

application is made; (B) has identified all other properties, if

any, which will be affected by such project and which, as

determined by the applicant, may meet the criteria established by

the Secretary of the Interior for inclusion on such Register,

together with documentation relating to the inclusion of such

properties on the Register; (C) has determined the effect, as

determined by the applicant, of the project on the properties

identified pursuant to clauses (A) and (B); and (D) will comply

with the requirements of section 5320 of this title.

(d) Mandatory selection criteria; award of points; distribution of

funds; number of competitions per year; use of distress

conditions data by urban counties

(1) Except in the case of a city or urban county eligible under

subsection (b)(2) of this section, the Secretary shall establish

selection criteria for a national competition for grants under this

section which must include -

(A) the comparative degree of economic distress among

applicants, as measured (in the case of a metropolitan city or

urban county) by the differences in the extent of growth lag, the

extent of poverty, and the adjusted age of housing in the

metropolitan city or urban county;

(B) other factors determined to be relevant by the Secretary in

assessing the comparative degree of economic deterioration in

cities and urban counties;

(i) the extent to which the grant will stimulate economic

recovery by leveraging private investment;

(ii) the number of permanent jobs to be created and their

relation to the amount of grant funds requested;

(iii) the proportion of permanent jobs accessible to lower

income persons and minorities, including persons who are

unemployed;

(iv) the extent to which the project will retain jobs that

will be lost without the provision of a grant under this

section;

(v) the extent to which the project will relieve the most

pressing employment or residential needs of the applicant by -

(I) reemploying workers in a skill that has recently

suffered a sharp increase in unemployment locally;

(II) retraining recently unemployed residents in new

skills;

(III) providing training to increase the local pool of

skilled labor; or

(IV) producing decent housing for low- and moderate-income

persons in cases where such housing is in severe shortage in

the area of the applicant, except that an application shall

be considered to produce housing for low- and moderate-income

persons under this clause only if such application proposes

that (a) not less than 51 percent of all funds available for

the project shall be used for dwelling units and related

facilities; and (b) not less than 30 percent of all funds

used for dwelling units and related facilities shall be used

for dwelling units to be occupied by persons of low and

moderate income, or not less than 20 percent of all dwelling

units made available to occupancy using such funds shall be

occupied by persons of low and moderate income, whichever

results in the occupancy of more dwelling units by persons of

low and moderate income;

(vi) the impact of the proposed activities on the fiscal base

of the city or urban county and its relation to the amount of

grant funds requested;

(vii) the extent to which State or local Government (!1)

funding or special economic incentives have been committed; and

(viii) the extent to which the project will have a

substantial impact on physical and economic development of the

city or urban county, the proposed activities are likely to be

accomplished in a timely fashion with the grant amount

available, and the city or urban county has demonstrated

performance in housing and community development programs; and

(D) additional consideration for projects with the following

characteristics:

(i) projects to be located within a city or urban county

which did not receive a preliminary grant approval under this

section during the 12-month period preceding the date on which

applications are required to be submitted for the grant

competition involved; and

(ii) twice the amount of the additional consideration

provided under clause (i) for projects to be located in cities

or urban counties which did not receive a preliminary grant

approval during the 24-month period preceding the date on which

applications under this section are required to be submitted

for the grant competition involved.

If a city or urban county has submitted and has pending more than

one application, the additional consideration provided by

subparagraph (D) of the preceding sentence shall be available

only to the project in such city or urban county which received

the highest number of points under subparagraph (C) of such

sentence.

(2) For the purpose of making grants with respect to areas

described in subsection (b)(2) of this section, the Secretary shall

establish selection criteria, which must include (A) factors

determined to be relevant by the Secretary in assessing the

comparative degree of economic deterioration among eligible areas,

and (B) such other criteria as the Secretary may determine,

including at a minimum the criteria listed in paragraph (1)(C) of

this subsection.

(3) The Secretary shall award points to each application as

follows:

(A) not more than 35 points on the basis of the criteria

referred to in paragraph (1)(A);

(B) not more than 35 points on the basis of the criteria

referred to in paragraph (1)(B);

referred to in paragraph (1)(C); and

(D)(i) 1 additional point on the basis of the criterion

referred to in paragraph (1)(D)(i); or

(ii) 2 additional points on the basis of the criterion referred

to in paragraph (1)(D)(ii).

(4) The Secretary shall distribute grant funds under this section

so that to the extent practicable during each funding cycle -

(A) 65 percent of the funds is first made available utilizing

all of the criteria set forth in paragraph (1); and

(B) 35 percent of the funds is then made available solely on

the basis of the factors referred to in subparagraphs (C) and (D)

of paragraph (1).

(5)(A) Within 30 days of the start of each fiscal year, the

Secretary shall announce the number of competitions for grants to

be held in that fiscal year. The number of competitions shall be

not less than two nor more than three.

(B) Each competition for grants described in any clause of

subparagraph (A) shall be for an amount equal to the sum of -

(i) approximately the amount of the funds available for such

grants for the fiscal year divided by the number of competitions

for those funds;

(ii) any funds available for such grants in any previous

competition that are not awarded; and

(iii) any funds available for such grants in any previous

competition that are recaptured.

competition for grants under this section, no city or urban county

may be awarded a grant or grants in an amount in excess of

$10,000,000 until all cities and urban counties which submitted

fundable applications have been awarded a grant. If funds are

available for additional grants after each city and urban county

submitting a fundable application is awarded one or more grants

under the preceding sentence, then additional grants shall be made

so that each city or urban county that has submitted multiple

applications is awarded one additional grant in order of ranking,

with no single city or urban county receiving more than one grant

approval in any subsequent series of grant determinations within

the same competition.

(D) All grants under this section, including grants to cities and

urban counties described in subsection (b)(2) of this section,

shall be awarded in accordance with subparagraph (C) so that all

grants under this section are made in order of ranking.

(e) Limitations on power of Secretary to approve grants; waiver

The Secretary may not approve any grant to a city or urban county

eligible under subsection (b)(2) of this section unless -

(1) the grant will be used in connection with a project located

in an area described in subsection (b)(2) of this section, except

that the Secretary may waive this requirement where the Secretary

determines (A) that there is no suitable site for the project

within that area, (B) the project will be located directly

adjacent to that area, and (C) the project will contribute

substantially to the economic development of that area;

(2) the city or urban county has demonstrated to the

satisfaction of the Secretary that basic services supplied by the

city or urban county to the area described in subsection (b)(2)

of this section are at least equivalent, as measured by per

capita expenditures, to those supplied to other areas within the

city or urban county which are similar in population size and

physical characteristics and which have median incomes above the

median income for the city or urban county;

(3) the grant will be used in connection with a project which

will directly benefit the low- and moderate-income families and

individuals residing in the area described in subsection (b)(2)

of this section; and

(4) the city or urban county makes available, from its own

funds or from funds received from the State or under any Federal

program which permits the use of financial assistance to meet the

non-Federal share requirements of Federal grant-in-aid programs,

an amount equal to 20 per centum of the grant to be available

under this section to be used in carrying out the activities

described in the application.

(f) Permissibility of consistent but unenumerated activities;

report on use of repaid grant funds for economic development

activities

Activities assisted under this section may include such

activities, in addition to those authorized under section 5305(a)

of this title, as the Secretary determines to be consistent with

the purposes of this section. In any case in which the project

proposes the repayment to the applicant of the grant funds, such

funds shall be made available by the applicant for economic

development activities that are eligible activities under this

section or section 5305 of this title. The applicant shall annually

provide the Secretary with a statement of the projected receipt and

use of repaid grant funds during the next year together with a

report acceptable to the Secretary on the use of such funds during

the most recent preceding full fiscal year of the applicant.

(g) Annual review and audit; adjustments, withdrawals and reduction

permitted

The Secretary shall, at least on an annual basis, make reviews

and audits of recipients of grants under this section as necessary

to determine the progress made in carrying out activities

substantially in accordance with approved plans and timetables. The

Secretary may adjust, reduce, or withdraw grant funds, or take

other action as appropriate in accordance with the findings of

these reviews and audits, except that funds already expended on

eligible activities under this chapter shall not be recaptured or

deducted from future grants made to the recipient.

(h) Limitations on grants for industrial or commercial relocations

or expansions; appeal of denial or cancellation of assistance;

grants to adversely affected individuals

(1) Speculative projects

No assistance may be provided under this section for projects

intended to facilitate the relocation of industrial or commercial

plants or facilities from one area to another, unless the

Secretary finds that the relocation does not significantly and

adversely affect the unemployment or economic base of the area

from which the industrial or commercial plant or facility is to

be relocated. The provisions of this paragraph shall apply only

to projects that do not have identified intended occupants.

(2) Projects with identified intended occupants

No assistance may be provided or utilized under this section

for any project with identified intended occupants that is likely

to facilitate -

(A) a relocation of any operation of an industrial or

commercial plant or facility or other business establishment -

(i) from any city, urban county, or identifiable community

described in subsection (p) of this section, that is eligible

for assistance under this section; and

(ii) to the city, urban county, or identifiable community

described in subsection (p) of this section, in which the

project is located; or

(B) an expansion of any such operation that results in a

reduction of any such operation in any city, county, or

community described in subparagraph (A)(i).

(3) Significant and adverse effect

The restrictions established in paragraph (2) shall not apply

if the Secretary determines that the relocation or expansion does

not significantly and adversely affect the employment or economic

base of the city, county, or community from which the relocation

or expansion occurs.

(4) Appeal of adverse determination

Following notice of intent to withhold, deny, or cancel

assistance under paragraph (1) or (2), the Secretary shall

provide a period of not less than 90 days in which the applicant

can appeal to the Secretary the withholding, denial, or

cancellation of assistance. Notwithstanding any other provision

of this section, nothing in this section or in any legislative

history related to the enactment of this section may be construed

to permit an inference or conclusion that the policy of the

Congress in the urban development action grant program is to

facilitate the relocation of businesses from one area to another.

(5) Assistance for individuals adversely affected by prohibited

relocations

(A) Any amount withdrawn by, recaptured by, or paid to the

Secretary due to a violation (or a settlement of an alleged

violation) of this subsection (or of any regulation issued or

contractual provision entered into to carry out this subsection)

by a project with identified intended occupants shall be made

available by the Secretary as a grant to the city, county, or

community described in subsection (p) of this section, from which

the operation of an industrial or commercial plant or facility or

other business establishment relocated or in which the operation

was reduced.

(B)(i) Any amount made available under this paragraph shall be

used by the grantee to assist individuals who were employed by

the operation involved prior to the relocation or reduction and

whose employment or terms of employment were adversely affected

by the relocation or reduction. The assistance shall include job

training, job retraining, and job placement.

(ii) If any amount made available to a grantee under this

paragraph is more than is required to provide assistance under

clause (i), the grantee shall use the excess amount to carry out

community development activities eligible under section 5305(a)

of this title.

(C)(i) The provisions of this paragraph shall be applicable to

any amount withdrawn by, recaptured by, or paid to the Secretary

under this section, including any amount withdrawn, recaptured,

or paid before the effective date of this paragraph.

(ii) Grants may be made under this paragraph only to the extent

of amounts provided in appropriation Acts.

(6) Definition

For purposes of this subsection, the term "operation" includes

any plant, equipment, facility, position, employment opportunity,

production capacity, or product line.

(7) Regulations

Not later than 60 days after February 5, 1988, the Secretary

shall issue such regulations as may be necessary to carry out the

provisions of this subsection. Such regulations shall include

specific criteria to be used by the Secretary in determining

whether there is a significant and adverse effect under paragraph

(3).

(i) Minimum percentage of funds to be allocated to certain

noncentral cities; application by consortia of cities of less

than 50,000 population

Not less than 25 per centum of the funds made available for

grants under this section shall be used for cities with populations

of less than fifty thousand persons which are not central cities of

a metropolitan statistical area. The Secretary shall encourage

cooperation by geographically proximate cities of less than 50,000

population by permitting consortia of such cities, which may also

include county governments that are not urban counties, to apply

for grants on behalf of a city that is otherwise eligible for

assistance under this section. Any grants awarded to such consortia

shall be administered in compliance with eligibility requirements

applicable to individual cities.

(j) Grant contingent on factors related to non-Federal funds

A grant may be made under this section only where the Secretary

determines that there is a strong probability that (1) the

non-Federal investment in the project would not be made without the

grant, and (2) the grant would not substitute for non-Federal funds

which are otherwise available to the project.

(k) Duty of Secretary to minimize amount

In making grants under this section, the Secretary shall take

such steps as the Secretary deems appropriate to assure that the

amount of the grant provided is the least necessary to make the

project feasible.

(l) Power of Secretary to waive requirement that town or township

be closely settled

For purposes of this section, the Secretary may reduce or waive

the requirement in section 5302(a)(5)(B)(ii) of this title that a

town or township be closely settled.

(m) Notice to State historic preservation officer and Secretary of

the Interior required with regard to affected landmark property;

opportunity for comment

In the case of any application which identifies any property in

accordance with subsection (c)(4)(B) of this section, the Secretary

may not commit funds with respect to an approved application unless

the applicant has certified to the Secretary that the appropriate

State historic preservation officer and the Secretary of the

Interior have been provided an opportunity to take action in

accordance with the provisions of section 5320(b) of this title.

(n) Territories, tribes, and certain Hawaiian counties included in

term "city"

(1) For the purposes of this section, the term "city" includes

Guam, American Samoa, the Northern Mariana Islands, the Virgin

Islands, and Indian tribes. Such term also includes the counties of

Kauai, Maui and Hawaii in the State of Hawaii.

(2) The Secretary may not approve a grant to an Indian tribe

under this section unless the tribe (A) is located on a

reservation, or on former Indian reservations in Oklahoma as

determined by the Secretary of the Interior, or in an Alaskan

Native Village, and (B) was an eligible recipient under chapter 67

of title 31 prior to the repeal of such chapter.

(o) Special provisions for years after 1983

If no amounts are set aside under, or amounts are precluded from

being appropriated for this section for fiscal years after fiscal

year 1983, any amount which is or becomes available for use under

this section after fiscal year 1983 shall be added to amounts

appropriated under section 5303 of this title, except that amounts

available to the Secretary for use under this subsection as of

October 1, 1993, and amounts released to the Secretary pursuant to

subsection (t) of this section may be used to provide grants under

section 5308(q) of this title..(!2)

(p) Unincorporated portions of urban counties

An unincorporated portion of an urban county that is approved by

the Secretary as an identifiable community for purposes of this

section is eligible for a grant under subsection (b)(2) of this

section if such portion meets the eligibility requirements

contained in the first sentence of subsection (b)(1) of this

section and the requirements of subsection (b)(2)(B) of this

section (applied to the population of the portion of the urban

county) and if it otherwise complies with the provisions of this

section.

(q) Technical assistance grants

Of the amounts appropriated for purposes of this section for any

fiscal year, not more than $2,500,000 may be used by the Secretary

to make technical assistance grants to States or their agencies,

municipal technical advisory services operated by universities, or

State associations of counties or municipalities, to enable such

entities to assist units of general local government described in

subsection (i) of this section in developing, applying for

assistance for, and implementing programs eligible for assistance

under this section.

(r) Nondiscrimination by Secretary against type of activity or

applicant

In utilizing the discretion of the Secretary when providing

assistance and applying selection criteria under this section, the

Secretary may not discriminate against applications on the basis of

(1) the type of activity involved, whether such activity is

primarily housing, industrial, or commercial; or (2) the type of

applicant, whether such applicant is a city or urban county.

(s) Maximum grant amount for fiscal years 1988 and 1989

For fiscal years 1988 and 1989, the maximum grant amount for any

project under this section is $10,000,000.

(t) UDAG retention program

If a grant or a portion of a grant under this section remains

unexpended upon the issuance of a notice implementing this

subsection, the grantee may enter into an agreement, as provided

under this subsection, with the Secretary to receive a percentage

of the grant amount and relinquish all claims to the balance of the

grant within 90 days of the issuance of notice implementing this

subsection (or such later date as the Secretary may approve). The

Secretary shall not recapture any funds obligated pursuant to this

section during a period beginning on April 11, 1994, until 90 days

after the issuance of a notice implementing this subsection. A

grantee may receive as a grant under this subsection -

(1) 33 percent of such unexpended amounts if -

(A) the grantee agrees to expend not less than one-half of

the amount received for activities authorized pursuant to

section 5308(q) of this title and to expend such funds in

conjunction with a loan guarantee made under section 5308 of

this title at least equal to twice the amount of the funds

received; and

(B)(i) the remainder of the amount received is used for

economic development activities eligible under this chapter;

and

(ii) except when waived by the Secretary in the case of a

severely distressed jurisdiction, not more than one-half of the

costs of activities under subparagraph (B) are derived from

such unexpended amounts; or

(2) 25 percent of such unexpended amounts if -

(A) the grantee agrees to expend such funds for economic

development activities eligible under this chapter; and

(B) except when waived by the Secretary in the case of a

severely distressed jurisdiction, not more than one-half of the

costs of such activities are derived from such unexpended

amount.

-SOURCE-

(Pub. L. 93-383, title I, Sec. 119, as added Pub. L. 95-128, title

I, Sec. 110(b), Oct. 12, 1977, 91 Stat. 1125; amended Pub. L.

95-557, title I, Sec. 103(g), (h), Oct. 31, 1978, 92 Stat. 2084;

Pub. L. 96-153, title I, Secs. 104, 105, Dec. 21, 1979, 93 Stat.

1102, 1104; Pub. L. 96-399, title I, Secs. 110(a), (b), 117(a),

Oct. 8, 1980, 94 Stat. 1619, 1623; Pub. L. 97-35, title III, Sec.

308(a), Aug. 13, 1981, 95 Stat. 392; Pub. L. 98-181, title I, Sec.

121, Nov. 30, 1983, 97 Stat. 1168; Pub. L. 98-454, title VI, Sec.

601(c), Oct. 5, 1984, 98 Stat. 1736; Pub. L. 98-479, title II, Sec.

203(l)(3), Oct. 17, 1984, 98 Stat. 2231; Pub. L. 99-272, title XIV,

Sec. 14001(b)(6), Apr. 7, 1986, 100 Stat. 329; Pub. L. 99-500, Sec.

101(g), Oct. 18, 1986, 100 Stat. 1783-242, and Pub. L. 99-591, Sec.

101(g), Oct. 30, 1986, 100 Stat. 3341-242; Pub. L. 100-202, Secs.

101(f) [title I, Sec. 101], 106, Dec. 22, 1987, 101 Stat. 1329-187,

1329-193, 1329-433; Pub. L. 100-242, title V, Secs. 501(c),

515(a)-(d), (g)(2)-(i), 516(a), Feb. 5, 1988, 101 Stat. 1923,

1930-1934; Pub. L. 100-404, title I, Aug. 19, 1988, 102 Stat. 1020;

Pub. L. 100-628, title X, Sec. 1084, Nov. 7, 1988, 102 Stat. 3277;

Pub. L. 103-233, title II, Sec. 232(b), (c)(1), Apr. 11, 1994, 108

Stat. 367.)

-REFTEXT-

REFERENCES IN TEXT

For effective date of this paragraph, referred to in subsec.

(h)(5)(C)(i), see section 516(b) of Pub. L. 100-242, set out as an

Effective Date of 1988 Amendment note below.

Chapter 67 of title 31, referred to in subsec. (n)(2)(B), was

repealed by Pub. L. 99-272, title XIV, Sec. 14001(a)(1), Apr. 7,

1986, 100 Stat. 327.

-COD-

CODIFICATION

Pub. L. 99-591 is a corrected version of Pub. L. 99-500.

Amendment of subsec. (n)(1) by Pub. L. 99-500 and 99-591 is based

on provisions under the headings "Management and Administration"

and "Administrative Provision" in title I of H.R. 5313 [Department

of Housing and Urban Development - Independent Agencies

Appropriations Act, 1987], as incorporated by reference by section

101(g) of Pub. L. 99-500 and 99-591, and enacted into law by

section 106 of Pub. L. 100-202.

-MISC1-

AMENDMENTS

1994 - Subsec. (o). Pub. L. 103-233, Sec. 232(b), inserted before

period at end ", except that amounts available to the Secretary for

use under this subsection as of October 1, 1993, and amounts

released to the Secretary pursuant to subsection (t) of this

section may be used to provide grants under section 5308(q) of this

title."

Subsec. (t). Pub. L. 103-233, Sec. 232(c)(1), added subsec. (t).

1988 - Subsec. (a). Pub. L. 100-242, Sec. 501(c), substituted

"There are authorized to be appropriated to carry out this section

$225,000,000 for fiscal year 1988, and $225,000,000 for fiscal year

1989. Any amount appropriated under this subsection shall remain

available until expended." for "Of the total amount approved in

appropriation Acts under section 5303 of this title for each of the

fiscal years 1982 and 1983, not more than $500,000,000 shall be

available for each of the fiscal years 1982 and 1983 for grants

under this section. There are authorized to be appropriated to

carry out the provisions of this section not to exceed $440,000,000

for each of the fiscal years 1984, 1985, and 1986, and any amount

appropriated under this sentence shall remain available until

expended."

Subsec. (d)(1). Pub. L. 100-242, Sec. 515(a), inserted dash

before "(A)", indented subpars. (A) and (B), struck out "as the

primary criterion," in subpar. (A) and "and" at end of subpar. (B),

added subpars. (C) and (D), and struck out former subpar. (C) which

read as follows: "at least the following other criteria:

demonstrated performance of the city or urban county in housing and

community development programs; the extent to which the grant will

stimulate economic recovery by leveraging private investment; the

number of permanent jobs to be created and their relation to the

amount of grant funds requested; the proportion of permanent jobs

accessible to lower income persons and minorities, including

persons who are unemployed; the impact of the proposed activities

on the fiscal base of the city or urban county and its relation to

the amount of grant funds requested; the extent to which State or

local government funding or special economic incentives have been

committed; and the feasibility of accomplishing the proposed

activities in a timely fashion within the grant amount available."

Subsec. (d)(3) to (5). Pub. L. 100-242, Sec. 515(b), added pars.

(3) to (5).

Subsec. (d)(5)(C), (D). Pub. L. 100-404 added subpars. (C) and

(D).

Subsec. (d)(6). Pub. L. 100-242, Sec. 515(b), (g)(2), temporarily

added par. (6), see Effective Date of 1988 Amendment note below.

Subsec. (f). Pub. L. 100-628, Sec. 1084(a), substituted "5305"

for "5304" after "activities under this section or section".

Pub. L. 100-242, Sec. 515(c), inserted at end "In any case in

which the project proposes the repayment to the applicant of the

grant funds, such funds shall be made available by the applicant

for economic development activities that are eligible activities

under this section or section 5304 of this title. The applicant

shall annually provide the Secretary with a statement of the

projected receipt and use of repaid grant funds during the next

year together with a report acceptable to the Secretary on the use

of such funds during the most recent preceding full fiscal year of

the applicant."

Subsec. (h)(1). Pub. L. 100-242, Sec. 516(a)(1), (2), designated

existing provision as par. "(1) Speculative projects" and inserted

at end "The provisions of this paragraph shall apply only to

projects that do not have identified intended occupants."

Subsec. (h)(2) to (7). Pub. L. 100-242, Sec. 516(a)(3), added

pars. (2) to (7).

Subsec. (n)(1). Pub. L. 100-628, Sec. 1084(b), directed that

subsec. (n)(1) of this section as similarly amended first by

provisions made effective by section 101(g) of Pub. L. 99-500 and

Pub. L. 99-591 [see 1986 Amendment note below and Codification note

above] and later by section 515(i) of Pub. L. 100-242 [see below]

is amended to read as if the amendment by Pub. L. 100-242 had not

been enacted.

Pub. L. 100-242, Sec. 515(i), made amendment identical to Pub. L.

99-500 and 99-591. See 1986 Amendment note below.

Subsec. (r). Pub. L. 100-242, Sec. 515(d), amended subsec. (r)

generally. Prior to amendment, subsec. (r) read as follows: "In

providing assistance under this section, the Secretary may not

discriminate among programs on the basis of the particular type of

activity involved, whether such activity is primarily a

neighborhood, industrial, or commercial activity."

Subsec. (s). Pub. L. 100-242, Sec. 515(h), added subsec. (s).

1987 - Subsec. (n)(1). For amendment by Sec. 106 of Pub. L.

100-202, see 1986 Amendment note below.

Subsec. (n)(2)(A). Pub. L. 100-202, Sec. 101(f) [title I, Sec.

101], inserted ", or on former Indian reservations in Oklahoma as

determined by the Secretary of the Interior," after "reservation".

1986 - Subsec. (n)(1). Pub. L. 99-500 and 99-591, Sec. 101(g), as

enacted by Pub. L. 100-202, inserted at end "Such term also

includes the counties of Kauai, Maui and Hawaii in the State of

Hawaii." See Codification note above.

Subsec. (n)(2)(B). Pub. L. 99-272 substituted "was an eligible

recipient under chapter 67 of title 31 prior to the repeal of such

chapter" for "is an eligible recipient under chapter 67 of title

31".

1984 - Subsec. (n)(1). Pub. L. 98-454 inserted reference to

American Samoa and the Northern Mariana Islands.

Subsec. (n)(2). Pub. L. 98-479 substituted "chapter 67 of title

31" for "the State and Local Fiscal Assistance Act of 1972".

1983 - Subsec. (a). Pub. L. 98-181, Sec. 121(a), inserted

authorizations for appropriations not to exceed $440,000,000 for

each of the fiscal years 1984, 1985, and 1986.

Subsec. (b)(1). Pub. L. 98-181, Sec. 121(b), substituted "the

extent of unemployment, job lag, or surplus labor" for "where data

are available, the extent of unemployment and job lag", and

inserted provisions for continued eligibility for assistance of any

city with a population of less than 50,000 persons, other than a

central city of a metropolitan area, which until the Secretary

revises the standards for eligibility for such cities and includes

the extent of unemployment, job lag, or labor surplus as a standard

of distress for such cities, and provisions requiring the Secretary

to make such revision as soon as possible following Nov. 30, 1983.

Subsec. (b)(2)(A)(i), (B)(i). Pub. L. 98-181, Sec. 121(c),

inserted "neighborhood statistics areas," after "enumeration

districts,".

Subsec. (c)(3)(C). Pub. L. 98-181, Sec. 121(d), added cl. (C).

Subsec. (d)(1). Pub. L. 98-181, Sec. 121(e), substituted

"criteria for a national competition" for "criteria" in provisions

preceding cl. (A).

Subsec. (i). Pub. L. 98-181, Sec. 121(f), inserted provisions

relating to applications by consortia of cities less than 50,000

population.

Subsecs. (p) to (r). Pub. L. 98-181, Sec. 121(g), added subsecs.

(p) to (r).

1981 - Pub. L. 97-35 substantially restructured and reorganized

provisions, made changes in nomenclature and phraseology, and

revised purposes, selection criteria and standards, application

procedures, approval powers of Secretary, covered activities,

limitations, allocation computations, funding prerequisites,

amounts for grants, waivers, notice requirements, applicable

definitions, and special provisions for years after 1983.

1980 - Subsec. (c)(7). Pub. L. 96-399, Sec. 110(a)(1)-(3), added

par. (7).

Subsec. (n). Pub. L. 96-399, Sec. 110(b), added subsec. (n).

Subsec. (o). Pub. L. 96-399, Sec. 117(a), added subsec. (o).

1979 - Subsec. (b). Pub. L. 96-153, Sec. 104, designated existing

provisions as par. (1) and added par. (2).

Subsec. (e). Pub. L. 96-153, Sec. 104(b), designated existing

provisions as par. (1) and substituted "(1) Except in the case of a

city or urban county eligible under subsection (b)(2) of this

section, in establishing criteria" for "In establishing criteria"

in opening sentence, redesignated existing cls. (1) to (3) as (A)

to (C), and added pars. (2) and (3).

Subsecs. (l), (m). Pub. L. 96-153, Sec. 105, added subsecs. (l)

and (m).

1978 - Subsec. (c)(6). Pub. L. 95-557, Sec. 103(g), added par.

(6).

Subsec. (e). Pub. L. 95-557, Sec. 103(h), inserted "impact of the

proposed urban development action program on the residents,

particularly those of low and moderate income, of the residential

neighborhood, and on the neighborhood, in which the program is to

be located" after "objectives of this chapter".

EFFECTIVE DATE OF 1994 AMENDMENT

Amendment by Pub. L. 103-233 applicable with respect to any

amounts made available to carry out subchapter II (Sec. 12721 et

seq.) of chapter 130 of this title after Apr. 11, 1994, and any

amounts made available to carry out that subchapter before that

date that remain uncommitted on that date, with Secretary to issue

any regulations necessary to carry out such amendment not later

than end of 45-day period beginning on that date, see section 209

of Pub. L. 103-233, set out as a note under section 5301 of this

title.

EFFECTIVE DATE OF 1988 AMENDMENT

Section 515(f), (g) of Pub. L. 100-242 provided that:

"(f) Regulations. - The Secretary of Housing and Urban

Development shall issue such regulations as may be necessary to

carry out the amendments made by this section [amending this

section]. Such regulations shall be published for comment in the

Federal Register not later than 60 days after the date of enactment

of this Act [Feb. 5, 1988]. The provisions of section 119(d)(1)(D),

section 119(d)(3), and section 119(d)(4) of the Housing and

Community Development Act of 1974 [subsec. (d)(1)(D), (3), (4) of

this section], shall take effect on the date of enactment of this

Act.

"(g) Applicability. -

"(1) In general. - The amendments made by this section

[amending this section] shall be applicable to the making of

urban development action grants that have not received the

preliminary approval of the Secretary of Housing and Urban

Development before the date on which final regulations issued by

the Secretary under subsection (f) become effective. For the

fiscal year in which the amendments made by this section become

applicable, such amendments shall only apply with respect to the

aggregate amount awarded for such grants on or after such

effective date.

"(2) Sunset of urban county competition rule. - Effective

October 1, 1989, section 119(d)(6) of the Housing and Community

Development Act of 1974 [subsec. (d)(6) of this section] is

repealed."

Section 516(b) of Pub. L. 100-242 provided that: "Except as

otherwise provided in section 119(h)(5) of the Housing and

Community Development Act of 1974 [subsec. (h)(5) of this section]

(as added by subsection (a)), the amendments made by this section

[amending this section] shall be applicable to urban development

action grants that have not received the preliminary approval of

the Secretary of Housing and Urban Development before the date of

the enactment of this Act [Feb. 5, 1988]."

EFFECTIVE DATE OF 1986 AMENDMENTS

Section 106 of Pub. L. 100-202 provided that the amendment made

by Pub. L. 99-500 and 99-591 is effective on date of enactment

[Oct. 18, 1986] of the "pertinent joint resolution" making

continuing appropriations for fiscal year 1987 [Pub. L. 99-500 and

99-591].

Amendment by Pub. L. 99-272 effective Oct. 18, 1986, see section

14001(e) of Pub. L. 99-272.

EFFECTIVE DATE OF 1981 AMENDMENT

Section 308(c) of Pub. L. 97-35 provided that: "The amendments

made by subsections (a) and (b) [amending this section and section

5320 of this title] shall become effective on the effective date of

regulations implementing such subsections. As soon as practicable,

but not later than January 1, 1982, the Secretary shall issue such

final rules and regulations as the Secretary determines are

necessary to carry out such subsections."

EFFECTIVE DATE OF 1978 AMENDMENT

Amendment by Pub. L. 95-557 effective Oct. 1, 1978, see section

104 of Pub. L. 95-557, set out as a note under section 1709 of

Title 12, Banks and Banking.

EFFECTIVE DATE

Section effective Oct. 1, 1977, see section 114 of Pub. L.

95-128, set out as an Effective Date of 1977 Amendment note under

section 5301 of this title.

IMPLEMENTATION OF URBAN DEVELOPMENT ACTION GRANT RETENTION PROGRAM

Section 232(c)(2) of Pub. L. 103-233 provided that: "Not later

than 10 days after the date of enactment of this Act [Apr. 11,

1994], the Secretary shall, by notice published in the Federal

requirements as may be necessary to implement the amendments made

by this subsection [amending this section]."

NEW TOWNS DEMONSTRATION PROGRAM FOR EMERGENCY RELIEF OF LOS ANGELES

Pub. L. 102-550, title XI, Oct. 28, 1992, 106 Stat. 3927, as

amended by Pub. L. 105-362, title VII, Sec. 701(g), Nov. 10, 1998,

112 Stat. 3287, provided that:

"SEC. 1101. AUTHORITY.

"To provide for the revitalization and renewal of inner city

neighborhoods in the areas of Los Angeles, California, that were

damaged by the civil disturbances during April and May of 1992, and

to demonstrate the effectiveness of new town developments in

revitalizing and restoring depressed and underprivileged inner city

neighborhoods, the Secretary of Housing and Urban Development

shall, to the extent or in such amounts as are provided in

appropriation Acts, make any assistance authorized under this title

available under this title to units of general local government,

governing boards, and eligible mortgagors in accordance with the

provisions of this title.

"SEC. 1102. NEW TOWN PLAN.

"(a) Requirement. - The Secretary may make assistance available

under this title only in connection with, and according to the

provisions of a new town plan developed and established by a

governing board under section 1107 and approved under subsection

(d) of this section. In developing such plans, the governing board

shall consult with representatives of the units of general local

government within whose boundaries are located any portion of the

new town demonstration area for the demonstration program to be

carried out under such plan.

"(b) Eligible New Town Demonstration Areas. - A new town plan

under this section shall provide for carrying out a new town

development demonstration providing assistance available under this

title within a new town demonstration area, which shall be a

geographic area defined in the new town plan -

"(1) that is one of pervasive poverty, unemployment, and

general distress;

"(2) that has an unemployment rate of not less than 1.5 times

the national unemployment rate for the 2 years preceding approval

of the new town plan;

"(3) that has a poverty rate of not less than 20 percent during

such 2-year period;

"(4) for which not less than 70 percent of the households

living in the area have incomes below 80 percent of the median

income of households of the unit of general local government in

which they are located;

"(5) that has a shortage of adequate jobs for residents; and

"(6) that is located -

"(A) in or near the City or County of Los Angeles, in the

State of California; and

"(B) within an area for which the President, pursuant to

title IV or V of the Robert T. Stafford Disaster Relief and

Emergency Assistance Act [42 U.S.C. 5170 et seq., 5191 et

seq.], declared that a major disaster or emergency existed for

purposes of such Act [42 U.S.C. 5121 et seq.], as a result of

the civil disturbances involving acts of violence occurring on

or after April 29, 1992, and before May 6, 1992.

"(c) Contents. - Each new town plan shall include the following

information:

"(1) Governing board. - A description of the members and

purposes of the governing board that developed the plan, the

manner in which members of the governing board were selected, and

the businesses, agencies, interests, and community ties of each

member of the governing board.

"(2) New town demonstration area. - A definition and

description of the new town demonstration area for the new town

development demonstration to be assisted under this title.

"(3) Target community. - A description of the economic, social,

racial, and ethnic characteristics of the population of the

neighborhood or area in which the new town demonstration area is

located.

"(4) Agreements. - Agreements that the governing board will

carry out the new town demonstration program in accordance with

the requirements of this title.

"(5) Housing units. - A description of the number, size,

location, cost, style, and characteristics of rental and

homeownership housing units to be developed under the new town

demonstration program, any financing for developing such housing,

and the amount of assistance necessary under section 1105 for

developing the housing under the program.

"(6) Jobs. - A description of the number, types, and duration

of any new jobs that will be created in the new town

demonstration area and surrounding areas as a result of the

demonstration program, and of any job training activities and

apprenticeship programs to be made available in connection with

the program.

"(7) Social services. - A description of the social and

supportive services to be made available under the demonstration

program to residents of housing assisted under the demonstration

program pursuant to section 1103(d) and to residents of the new

town demonstration area.

"(8) Supplemental resources. - A description of any funds,

assistance, in-kind contributions, and other resources to be made

available in connection with the demonstration program, including

the sources and amounts of any private capital resources and

non-Federal funds required under section 1103(h).

"(9) Contractors and developers. - A listing of the contractors

and developers who potentially will carry out any construction

and rehabilitation work for development of housing under the

demonstration program and the expected costs involved in hiring

such contractors and developers.

"(10) Financing for homebuyers. - A description of any mortgage

lenders who have indicated that they will make financing

available to families purchasing housing developed under the

demonstration program through mortgages eligible for insurance

under section 1104 and proposed terms of such mortgages.

"(11) Commitments. - Evidence of any commitments entered into

for making any of the resources described in paragraphs (6)

through (8) available in connection with the demonstration

program.

"(12) Presale requirements. - A description of commitments made

to purchase not less than 50 percent of the housing to be

developed under the demonstration program for purchase by the

occupant and to rent not less than 50 percent of the rental

dwelling units to be developed under the demonstration program.

"(13) Community development activities. - A description of the

community development activities to be carried out with

assistance under section 1106, the amount of assistance necessary

under such section for such activities, and of the projected uses

of such assistance.

"(d) Review and Approval. -

"(1) Submission. - Not later than the expiration of the 6-month

period beginning on the date of the enactment of this Act [Oct.

28, 1992], a governing board shall submit a new town plan under

this section to the chief executive officers of each unit of

general local government within whose boundaries is located any

portion of the new town demonstration area described under the

plan of the board.

"(2) Approval. - For a plan to be eligible for assistance

available under this title, the chief executive officer of all

units of general local government to whom the new town plan is

submitted shall approve the plan at a public meeting after the

plan has been made publicly available for a period of not less

than 30 days. A governing board may resubmit for approval any

plan returned by any such chief executive officer to the

governing board, and such chief executive officer may, upon

returning the plan indicate any modifications necessary for

approval. A new town plan may not be approved unless such chief

executive officers determine that the membership of the governing

board submitting the plan is constituted in accordance with

section 1107 and the governing board is capable of carrying out

the plan.

"(3) Amendment. - An approved new town plan for the

demonstration program developed by the governing board may be

amended by the board by obtaining approval of the amendment in

the manner provided under this subsection for approval of plans.

If the chief executive officer of the unit of general local

government does not approve or return the amended plan within 30

days of submission, the amended plan shall be considered to be

approved for purposes of this subsection.

"SEC. 1103. NEW TOWN DEVELOPMENT DEMONSTRATION PROGRAM

REQUIREMENTS.

"(a) In General. - Each of the 2 new town development

demonstration programs selected for assistance under this title

under section 1102 shall be carried out, by the governing board

submitting the new town plan for the demonstration program, in

accordance with such plan (and any approved amendments of such

plans) and shall be subject to the requirements under this section.

"(b) Local Participation. - With respect to any activities

carried out under the demonstration program, the program shall give

preference in awarding contracts, purchasing materials, acquiring

services, and obtaining assistance or training, to contractors,

businesses, developers, professionals, and other establishments

located or having offices within the new town demonstration area.

"(c) Housing. -

"(1) Number of units. - The demonstration program shall

construct or renovate not less than 1,500 dwelling units in the

new town demonstration area, of which not less than 60 percent

shall be units available for purchase by the occupant.

"(2) Affordability. - Units of varying sizes and costs shall be

designed and developed under the demonstration program so that

the program provides housing affordable to families of varying

incomes not exceeding 115 percent of the median income for the

area in which the new town demonstration area is located,

including very low- and low-income families (as such terms are

defined in section 3(b) of the United States Housing Act of 1937

[42 U.S.C. 1437a(b)]).

"(3) Homeownership units. - Dwelling units developed under the

demonstration program for purchase by the occupant shall

initially be sold at prices affordable to families eligible to

purchase such units. Such units shall be available for purchase

only by families having incomes not exceeding the amount

specified in paragraph (2). The demonstration shall develop 2-,

3-, and 4-bedroom units for purchase.

"(4) Rental units. - Dwelling units developed under the

demonstration program that are to be available for rental shall

include family-type units and single bedroom and efficiency units

designed for elderly occupants. Such units shall be available for

occupancy only by families who (upon initial occupancy) have

incomes of (A) less than 60 percent of the median income for the

area, or (B) less than $20,000. Occupant families shall pay not

more than 30 percent of the family income for rent.

"(d) Social Services. - The demonstration program shall provide

for appropriate social and supportive services to be made available

to residents of housing assisted under the demonstration program

and to other residents of the new town demonstration area, which

may include rental and homeownership counseling, child care, job

placement, educational programs, recreational and health care

facilities and programs, and other appropriate services.

"(e) Job Creation and Training. - The demonstration program shall

provide, to the extent practicable, that activities in connection

with the demonstration program, including development of housing

under subsection (c) and community development activities assisted

under section 1106, shall employ and provide job training

opportunities for residents of the housing assisted under the

demonstration program and other residents of the new town

demonstration area.

"(f) Financing. - The demonstration program shall provide for

coordination with banks, credit unions, and other mortgage lenders

to make financing available to purchasers of units developed under

the demonstration program through mortgages eligible for insurance

under section 1104, and shall give preference to such mortgage

lenders who have offices located within or near the new town

demonstration area.

"(g) Support Facilities. - The demonstration program shall

encourage, facilitate, and provide for development of appropriate

support facilities to serve residents in the housing developed

under the program, including infrastructure and commercial

facilities.

"(h) Non-Federal Funds. - The governing board carrying out the

demonstration program shall ensure that not less than 25 percent of

the total amounts used to carry out the demonstration program is

provided from non-Federal sources, including State or local

government funds, any salary paid to staff to carry out the

demonstration program, the value of any time, services, and

materials donated to carry out the program, the value of any

donated building, and the value of any lease on a building.

"SEC. 1104. FEDERAL MORTGAGE INSURANCE.

"(a) In General. - Pursuant to title II and section 251 of the

National Housing Act [12 U.S.C. 1707 et seq., 1715z-16], the

Secretary shall (to the extent authority is available pursuant to

subsection (d)) insure mortgages under this section involving

properties upon which are located dwelling units described in

section 1103(c)(3) of this Act that are developed under the new

town demonstration programs carried out pursuant to this title.

"(b) Mortgage Terms. - Mortgages insured under this section shall

"(1) provide for periodic adjustments in the effective rate of

interest charged, which -

"(A) for the first 5 years of the mortgage, shall be an

annual rate of not more than 7 percent; and

"(B) after the expiration of such 5-year period, may increase

on an annual basis, but -

"(i) shall be limited, with respect to any single interest

rate increase, to not more than a 10-percent increase in the

annual percentage rate; and

"(ii) may not be increased at any time to a rate greater

than the rate necessary at such time to fully amortize the

outstanding loan balance over the term of the mortgage; and

"(2) have a maturity of 35 years from the date of the beginning

of the amortization of the mortgage.

"(c) Board Approval. - The Secretary may provide insurance under

this section for a mortgage only if the governing board for the

demonstration program for the new town demonstration area in which

the property subject to the mortgage is located has indicated to

the Secretary approval of the mortgage in connection with the

demonstration program.

"(d) Insurance Authority. - To the extent provided in

appropriation Acts, the Secretary shall use any authority provided

pursuant to section 531(b) of the National Housing Act [12 U.S.C.

1735f-9(b)] to enter into commitments to insure loans and mortgages

under this section in fiscal years 1993 and 1994 with an aggregate

principal amount not exceeding such sums as may be necessary to

carry out the demonstration under this title. Mortgages insured

under this section shall not be considered for purposes of the

aggregate limitation on the number of mortgages insured under

section 251 of the National Housing Act [12 U.S.C. 1715z-16]

specified in subsection (c) of such section.

"SEC. 1105. SECONDARY SOFT MORTGAGE FINANCING FOR HOUSING.

"(a) In General. - The Secretary shall, to the extent amounts are

provided in appropriation Acts under subsection (e), provide

assistance under this section through the governing boards carrying

out the new town demonstration programs under this section to

assist in the development of housing under the program.

"(b) Use. - Any assistance provided under this section shall be

used only for costs in planning, developing, constructing, and

rehabilitating housing under the demonstration program available

for rental or purchase by the occupant. The governing board shall

determine, according to the new town plan for the demonstration

program, the allocation of amounts of assistance provided under

this section.

"(c) Amount. - The Secretary may not provide assistance under

this section for the development of housing under a demonstration

program in an amount exceeding $50,000 per dwelling unit assisted.

"(d) Second Mortgage. -

"(1) In general. - Assistance under this section shall be

repaid in accordance with this subsection. Repayment of the

amount of any assistance provided with respect to -

"(A) any building containing rental units, or

"(B) any dwelling unit available for purchase by the occupant

that is developed under a demonstration program,

shall be secured by a second mortgage held by the Secretary on

the property involved.

"(2) Terms. - During the period ending upon repayment of the

assistance as provided in this subsection, any building

containing rental units that is provided assistance under this

section shall be used as rental housing subject to the

requirements of section 1103(c)(4). During the period ending upon

repayment of the assistance as provided in this subsection, any

dwelling unit made available for purchase by the occupant that is

provided assistance under this section may be sold only to a

family having an income not exceeding the amount specified in

section 1103(c)(2).

"(3) Interest. - Any assistance provided under this section for

a building or dwelling unit shall bear interest at a rate

equivalent to the rate for the most recently marketable

obligations issued by the United States Treasury have terms of 10

years. The interest on such assistance shall be required to be

repaid only upon sale of the building.

"(4) Discounted repayment. - The assistance provided under this

section for any building containing rental units or any dwelling

unit available for purchase by the occupant shall be considered

to have been repaid for purposes of this subsection if the

original purchaser of the building or the dwelling unit pays to

the Secretary an amount equal to 50 percent of the amount of the

assistance provided under this section.

"(e) Authorization of Appropriations. - There are authorized to

be appropriated for fiscal years 1993 and 1994 such sums as may be

necessary for providing assistance under this section.

"SEC. 1106. COMMUNITY DEVELOPMENT ASSISTANCE.

"(a) In General. - The Secretary shall provide assistance under

this section, to the extent amounts are provided in appropriation

Acts under subsection (h), to units of general local government to

address vital unmet needs and to promote the creation of jobs and

economic development in connection with the new town demonstration

programs carried out under this title.

"(b) Eligible Units of General Local Government. - Assistance may

be provided under this section only to units of general local

government -

"(1) within whose boundaries are located any portion of the new

town demonstration areas described under the new town

demonstration plans for the demonstration programs carried out

under this title;

"(2) that make the certifications to the Secretary required

under subsection (c); and

"(3) that will comply with a residential antidisplacement and

relocation assistance plan described in subsection (d).

"(c) Required Certifications. - The certifications referred to in

subsection (b)(2) shall be certifications that -

"(1) the assistance will be conducted and administered in

conformity with the Civil Rights Act of 1964 [42 U.S.C. 2000a et

seq.] and the Civil Rights Act of 1968 [see Short Title note set

out under section 3601 of this title], and the unit of general

local government will affirmatively further fair housing;

"(2) the projected use of funds has been developed in a manner

that gives maximum feasible priority to activities which are

designed to meet community development needs that have been

delayed because of the lack of fiscal resources of the unit of

general local government or which are designed to address

conditions that pose a serious and immediate threat to the health

or welfare of the community;

"(3) any projected use of funds for public services will

benefit primarily low- and moderate-income families;

"(4) the unit of general local government will not attempt to

recover any capital costs of public improvements assisted in

whole or part under this section by assessing any amount against

properties owned and occupied by persons of low- and

moderate-income, including any fee charged or assessment made as

a condition of obtaining access to such public improvements,

unless -

"(A) funds received under this section are used to pay the

proportion of such fee or assessment that relates to the

capital costs of such public improvements that are financed

from revenue sources other than under this section; or

"(B) for purposes of assessing any amount against properties

owned and occupied by persons of moderate income, the grantee

certifies to the Secretary that it lacks sufficient funds

received under this section to comply with the requirements of

subparagraph (A); and

"(5) the unit of general local government will comply with the

other provisions of this title and with other applicable laws.

"(d) Antidisplacement and Relocation Plan. -

"(1) Contents. - The residential antidisplacement and

relocation assistance plan referred to in subsection (b)(3)

shall, in connection with activities assisted under this section

"(A) provide that, in the event of such displacement -

"(i) governmental agencies or private developers shall

provide, within the same community, comparable replacement

dwellings for the same number of occupants as could have been

housed in the occupied and vacant occupiable low- and

moderate-income dwelling units demolished or converted to a

use other than for housing for low- and moderate-income

persons, and provide that such replacement housing may

include existing housing assisted with project based

assistance provided under section 8 of the United States

Housing Act of 1937 [42 U.S.C. 1437f];

"(ii) such comparable replacement dwellings shall be

designed to remain affordable to persons of low- and

moderate-income for 10 years from the time of initial

occupancy;

"(iii) relocation benefits shall be provided for all low-

or moderate-income persons who occupied housing demolished or

converted to a use other than for low- or moderate-income

housing, including reimbursement for actual and reasonable

moving expenses, security deposits, credit checks, and other

moving-related expenses, including any interim living costs;

and in the case of displaced persons of low- and

moderate-income, provide either -

"(I) compensation sufficient to ensure that, for a 5-year

period, the displaced families shall not bear, after

relocation, a ratio of shelter costs to income that exceeds

30 percent; or

"(II) if elected by a family, a lump-sum payment equal to the

capitalized value of the benefits available under subclause

(I) to permit the household to secure participation in a

housing cooperative or mutual housing association; and

"(iv) persons displaced shall be relocated into comparable

replacement housing that is -

"(I) decent, safe, and sanitary;

"(II) adequate in size to accommodate the occupants;

"(III) functionally equivalent; and

"(IV) in an area not subject to unreasonably adverse

environmental conditions; and

"(B) provide that persons displaced shall have the right to

elect, as an alternative to the benefits under this subsection,

to receive benefits under the Uniform Relocation Assistance and

Real Property Acquisition Policies Act of 1970 [42 U.S.C. 4601

et seq.] if such persons determine that it is in their best

interest to do so; and

"(C) provide that where a claim for assistance under

subparagraph (A)(iv) is denied by the unit of general local

government, the claimant may appeal to the Secretary, and that

the decision of the Secretary shall be final unless a court

determines the decision was arbitrary and capricious.

"(2) Exception. - Paragraphs (1)(A)(i) and (1)(A)(ii) shall not

apply in any case in which the Secretary finds, on the basis of

objective data, that there is available in the area an adequate

supply of habitable affordable housing for low- and

moderate-income persons. A determination under this paragraph

shall be final and nonreviewable.

"(e) Eligible Activities. - Activities assisted with amounts

provided under this section may include only the following

activities:

"(1) Acquisition of real property. - The acquisition of real

property (including air rights, water rights, and other interests

therein) that is located within the new town demonstration area

and is -

"(A) blighted, deteriorated, undeveloped, or inappropriately

developed from the standpoint of sound community development

and growth;

"(B) appropriate for rehabilitation activities;

"(C) appropriate for the preservation or restoration of

historic sites, the beautification of urban land, the

conservation of open spaces, natural resources, and scenic

areas, the provision of recreational opportunities, or the

guidance of urban development;

"(D) to be used for the provision of public works,

facilities, and improvements eligible for assistance under this

section;

"(E) to be used as a facility for coordinating and providing

activities and services for high risk youth (as such term is

defined in section 509A [now 517] of the Public Health Service

Act [42 U.S.C. 290bb-23]); or

"(F) to be used for other public purposes.

"(2) Construction of public works and facilities. - The

acquisition, construction, rehabilitation, or installation of

public works or public facilities within the new town

demonstration area, including buildings for the general conduct

of government and facilities for coordinating and providing

activities and services for high risk youth (as such term is

defined in section 509A [now 517] of the Public Health Service

Act).

"(3) Clearance and rehabilitation of buildings. - The

clearance, removal, and rehabilitation of buildings and

improvements located within the new town demonstration area,

including interim assistance, assistance for facilities for

coordinating and providing activities and services for high risk

youth (as such term is defined in section 509A [now 517] of the

Public Health Service Act), and assistance to privately owned

buildings and improvements.

"(4) Provision of public services and housing. -

"(A) Public services. - The provision of public services

within the new town demonstration area that are concerned with

job training and retraining, health care and education, crime

prevention, drug abuse treatment and rehabilitation, child

care, education, and recreation, which may include the

provision of public health and public safety vehicles.

"(B) Housing activities. - The acquisition and rehabilitation

of housing for low- and moderate-income families within the new

town demonstration area, except that any grantee that uses

amounts received under this section for housing activities

under this subparagraph shall make not less than 15 percent of

the amount used for such housing activities available only for

community housing development organizations and nonprofit

organizations (as such terms are defined in section 104 of the

Cranston-Gonzalez National Affordable Housing Act [42 U.S.C.

12704]) for such activities;

"(C) Limitation. - Not more than 25 percent of the amount of

any assistance provided under this section (including program

income) to any unit of general local government may be used for

activities under this paragraph.

"(5) Relocation assistance. - Relocation payments and

assistance for individuals, families, business, and organizations

that are displaced as a result of activities assisted under this

title.

"(6) Payment of administrative expenses. - Payment of

reasonable administrative costs associated with activities

assisted under this section and any expenses of developing the

new town plan under section 1102.

"(f) Allocation of Assistance. - The Secretary may not provide

more than 50 percent of any amounts appropriated under this section

in connection with any one of the 2 new town demonstration programs

carried out under this title.

"(g) Other Requirements. - The provisions of subsections (f),

(g), and (h) of section 104, subsections (c) and (d) of section

105, section 107, 108, 109, and 110 of the bill, H.R. 4073, 102d

Congress (as reported on March 14, 1992 [May 14, 1992, H. Rept. No.

102-524], by the Committee on Banking, Finance and Urban Affairs of

the House of Representatives), shall apply to grantees receiving

assistance under this section.

"(h) Authorization of Appropriations. - There are authorized to

be appropriated for fiscal years 1993 and 1994 such sums as may be

necessary for assistance under this section.

"SEC. 1107. GOVERNING BOARDS.

"(a) Purpose. - For purposes of this title, a governing board

shall be a board organized for the purpose of developing a new town

plan under this title and carrying out a new town development

demonstration under this title.

"(b) Membership. - Each governing board shall consist of not less

than 10 members, who shall include -

"(1) residents of the area in which the new town demonstration

area under the plan developed by the board is located;

"(2) owners of business in such area;

"(3) leaders or participants in community groups in such area;

and

"(4) representatives of financial institutions located or

having offices in such area.

"(c) Organization. - A governing board may organize itself and

conduct business in the manner that the board determines is

appropriate to carry out the new town development demonstration

under this title.

"SEC. 1108. REPORTS.

"Each governing board carrying out a new town development

demonstration under this title shall submit to the Congress a copy

of the new town plan of the governing board, upon the approval of

that plan under section 1102(d).

"SEC. 1109. DEFINITIONS.

"For purposes of this title:

"(1) Demonstration program. - The terms 'demonstration program'

and 'program' mean a new town development demonstration program

receiving assistance under this title, which is carried out

within a new town demonstration area by a governing board.

"(2) Governing board. - The term 'governing board' means a

board established under section 1107.

"(3) New town demonstration area. - The term 'new town

demonstration area' means the area defined in a new town plan in

which the new town development demonstration under the plan is to

be carried out.

"(4) New town plan. - The terms 'new town plan' and 'plan' mean

a plan under section 1102 developed by a governing board.

"(5) Unit of general local government. - The term 'unit of

general local government' means any city, county, town, township,

parish, village, or other general purpose political subdivision

of the State of California."

REPORTS OF COMPTROLLER GENERAL

Pub. L. 100-242, title V, Sec. 515(e), Feb. 5, 1988, 101 Stat.

1933, which required the Comptroller General of the United States

to triennially prepare and submit to Congress a comprehensive

report evaluating the eligibility standards and selection criteria

applicable under this section, terminated, effective May 15, 2000,

pursuant to section 3003 of Pub. L. 104-66, as amended, set out as

a note under section 1113 of Title 31, Money and Finance. See,

also, item 14 on page 9 of House Document No. 103-7.

NEIGHBORHOOD DEVELOPMENT DEMONSTRATION

Section 123 of Pub. L. 98-181, as amended, which provided for a

demonstration program to determine the feasibility of supporting

eligible neighborhood development activities by providing Federal

matching funds to eligible neighborhood development organizations,

was transferred to section 5318a of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 5302, 5304, 5305, 5307,

5313, 5318a, 5320, 11501, 12705 of this title; title 12 section

1715z; title 26 sections 144, 1400E.

-FOOTNOTE-

(!1) So in original. Probably should not be capitalized.

(!2) So in original.

-End-

-CITE-

42 USC Sec. 5318a 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 69 - COMMUNITY DEVELOPMENT

-HEAD-

Sec. 5318a. John Heinz Neighborhood Development Program

-STATUTE-

(a) Definitions

For the purposes of this section:

(1) The term "eligible neighborhood development activity" means

(A) creating permanent jobs in the neighborhood;

(B) establishing or expanding businesses within the

neighborhood;

housing stock;

(D) developing delivery mechanisms for essential services

that have lasting benefit to the neighborhood; or

(E) planning, promoting, or financing voluntary neighborhood

improvement efforts.

(2) The term "eligible neighborhood development organization"

means -

(A)(i) an entity organized as a private, voluntary, nonprofit

corporation under the laws of the State in which it operates;

(ii) an organization that is responsible to residents of its

neighborhood through a governing body, not less than 51 per

centum of the members of which are residents of the area

served;

(iii) an organization that has conducted business for at

least one year prior to the date of application for

participation;

(iv) an organization that operates within an area that -

(I) meets the requirements for Federal assistance under

section 5318 of this title;

(II) is designated as an enterprise zone under Federal law;

(III) is designated as an enterprise zone under State law

and recognized by the Secretary for purposes of this section

as a State enterprise zone; or

(IV) is a qualified distressed community within the meaning

of section 1834a(b)(1) of title 12; and

(v) an organization that conducts one or more eligible

neighborhood development activities that have as their primary

beneficiaries low- and moderate-income persons, as defined in

section 5302(a)(20) of this title; or

(B) any facility that provides small entrepreneurial business

with affordable shared support services and business

development services and meets the requirements of subparagraph

(A).

(3) The term "neighborhood development funding organization"

means -

(A) a depository institution the accounts of which are

insured pursuant to the Federal Deposit Insurance Act [12

U.S.C. 1811 et seq.] or the Federal Credit Union Act [12 U.S.C.

1751 et seq.], and any subsidiary (as such term is defined in

section 3(w) of the Federal Deposit Insurance Act [12 U.S.C.

1813(w)]) thereof;

(B) a depository institution holding company and any

subsidiary thereof (as such term is defined in section 3(w) of

the Federal Deposit Insurance Act [12 U.S.C. 1813(w)]); or

which is owned by one or more insured depository institutions

or depository institution holding companies.

(4) The term "Secretary" means the Secretary of Housing and

Urban Development.

(b) Duties of Secretary

(1) The Secretary shall carry out, in accordance with this

section, a program to support eligible neighborhood development

activities by providing Federal matching funds to eligible

neighborhood development organizations on the basis of the monetary

support such organizations have received from individuals,

businesses, and nonprofit or other organizations in their

neighborhoods, and from neighborhood development funding

organizations, prior to receiving assistance under this section.

(2) The Secretary shall accept applications from eligible

neighborhood development organizations for participation in the

program. Eligible organizations may participate in more than one

year of the program, but shall be required to submit a new

application and to compete in the selection process for each

program year. For fiscal year 1993 and thereafter, not more than 50

percent of the grants may be for multiyear awards.

(3) From the pool of eligible neighborhood development

organizations submitting applications for participation in a given

program year, the Secretary shall select participating

organizations in an appropriate number through a competitive

selection process. To be selected, an applicant shall -

(A) have demonstrated measurable achievements in one or more of

the activities specified in subsection (a)(1) of this section;

(B) specify a business plan for accomplishing one or more of

the activities specified in subsection (a)(1) of this section;

sector support, especially in cooperation with a neighborhood

development funding organization, except that an eligible

neighborhood development organization shall be deemed to have the

full benefit of the cooperation of a neighborhood development

funding organization if the eligible neighborhood development

organization -

(i) is located in an area described in subsection

(a)(2)(A)(iv) of this section that does not contain a

neighborhood development funding organization; or

(ii) demonstrates to the satisfaction of the Secretary that

it has been unable to obtain the cooperation of any

neighborhood development funding organization in such area

despite having made a good faith effort to obtain such

cooperation; and

(D) specify a strategy for increasing the capacity of the

organization.

The Secretary shall award grants under this section among the

eligible neighborhood development organizations submitting

applications for such grants on the basis of -

(1) the degree of economic distress of the neighborhood

involved;

(2) the extent to which the proposed activities will benefit

persons of low and moderate income;

(3) the extent of neighborhood participation in the proposed

activities, as indicated by the proportion of the households and

businesses in the neighborhood involved that are members of the

eligible neighborhood development organization involved and by

the extent of participation in the proposed activities by a

neighborhood development funding organization that has a branch

or office in the neighborhood, except that an eligible

neighborhood development organization shall be deemed to have the

full benefit of the participation of a neighborhood development

funding organization if the eligible neighborhood development

organization -

(A) is located in an (!1) neighborhood that does not contain

a branch or office of a neighborhood development funding

organization; or

(B) demonstrates to the satisfaction of the Secretary that it

has been unable to obtain the participation of any neighborhood

development funding organization that has a branch or office in

the neighborhood despite having made a good faith effort to

obtain such participation; and

(4) the extent of voluntary contributions available for the

purpose of subsection (e)(4) of this section, except that the

Secretary shall waive the requirement of this subparagraph in the

case of an application submitted by a small eligible neighborhood

development organization, an application involving activities in

a very low-income neighborhood, or an application that is

especially meritorious.

(d) Consultation with informal working group

The Secretary shall consult with an informal working group

representative of eligible neighborhood organizations with respect

to the implementation and evaluation of the program established in

this section.

(e) Matching funds for participating organizations

(1) The Secretary shall assign each participating organization a

defined program year, during which time voluntary contributions

from individuals, businesses, and nonprofit or other organizations

in the neighborhood, and from neighborhood development funding

organizations, shall be eligible for matching.

(2) Subject to paragraph (3), at the end of each three-month

period occurring during the program year, the Secretary shall pay

to each participating neighborhood development organization the

product of -

(A) the aggregate amount of voluntary contributions that such

organization certifies to the satisfaction of the Secretary it

received during such three-month period; and

(B) the matching ratio established for such test neighborhoods

under paragraph (4).

(3) The Secretary shall pay not more than $50,000 under this

section to any participating neighborhood development organization

during a single program year, except that, if appropriations for

this section exceed $3,000,000, the Secretary may pay not more than

$75,000 to any participating neighborhood development organization.

(4) For purposes of paragraph (2), the Secretary shall, for each

participating organization, determine an appropriate ratio by which

monetary contributions made to participating neighborhood

development organizations will be matched by Federal funds. The

highest such ratios shall be established for neighborhoods having

the smallest number of households or the greatest degree of

economic distress.

(5) The Secretary shall insure that -

(A) grants and other forms of assistance may be made available

under this section only if the application contains a

certification by the unit of general local government within

which the neighborhood to be assisted is located that such

assistance is not inconsistent with the comprehensive housing

affordability strategy of such unit approved under section 12705

of this title or the statement of community development

activities and community development plans of the unit submitted

under section 5304(m) of this title, except that the failure of a

unit of general local government to respond to a request for a

certification within thirty days after the request is made shall

be deemed to be a certification; and

(B) eligible neighborhood development activities comply with

all applicable provisions of the Civil Rights Act of 1964 [42

U.S.C. 2000a et seq.].

(6) To carry out this section, the Secretary -

(A) may issue regulations as necessary;

(B) shall utilize, to the fullest extent practicable, relevant

research previously conducted by Federal agencies, State and

local governments, and private organizations and persons;

activities, forms of organizations, and fund-raising mechanisms

associated with successful programs; and

(D) may use not more than 5 per centum of the funds

appropriated for administrative or other expenses in connection

with the program.

(f) Authorization

Of the amounts made available for assistance under section 5303

of this title, $1,000,000 for fiscal year 1993 (in addition to

other amounts provided for such fiscal year) and $3,000,000 for

fiscal year 1994 shall be available to carry out this section.

(g) Short title

This section may be cited as the "John Heinz Neighborhood

Development Act".

-SOURCE-

(Pub. L. 98-181, title I, Sec. 123, Nov. 30, 1983, 97 Stat. 1172;

Pub. L. 98-479, title I, Sec. 101(b)(2), (3), Oct. 17, 1984, 98

Stat. 2220; Pub. L. 100-242, title V, Secs. 521, 525, Feb. 5, 1988,

101 Stat. 1938, 1939; Pub. L. 101-625, title IX, Sec. 915, Nov. 28,

1990, 104 Stat. 4395; Pub. L. 102-550, title VIII, Sec. 832, Oct.

28, 1992, 106 Stat. 3852; Pub. L. 105-362, title VII, Sec. 701(d),

Nov. 10, 1998, 112 Stat. 3287.)

-REFTEXT-

REFERENCES IN TEXT

The Federal Deposit Insurance Act, referred to in subsec.

(a)(3)(A), is act Sept. 21, 1950, ch. 967, Sec. 2, 64 Stat. 873, as

amended, which is classified generally to chapter 16 (Sec. 1811 et

seq.) of Title 12, Banks and Banking. For complete classification

of this Act to the Code, see Short Title note set out under section

1811 of Title 12 and Tables.

The Federal Credit Union Act, referred to in subsec. (a)(3)(A),

is act June 26, 1934, ch. 750, 48 Stat. 1216, as amended, which is

classified generally to chapter 14 (Sec. 1751 et seq.) of Title 12.

For complete classification of this Act to the Code, see section

1751 of Title 12 and Tables.

The Civil Rights Act of 1964, referred to in subsec. (e)(5)(B),

is Pub. L. 88-352, July 2, 1964, 78 Stat. 241, as amended, which is

classified principally to subchapters II to IX (Sec. 2000a et seq.)

of chapter 21 of this title. For complete classification of this

Act to the Code, see Short Title note set out under section 2000a

of this title and Tables.

-COD-

CODIFICATION

Section was enacted as the John Heinz Neighborhood Development

Act and also as part of the Housing and Urban-Rural Recovery Act of

1983, the Domestic Housing and International Recovery and Financial

Stability Act, and the Supplemental Appropriations Act, 1984, and

not as part of the Housing and Community Development Act of 1974

which comprises this chapter.

Section was formerly set out as a note under section 5318 of this

title.

-MISC1-

AMENDMENTS

1998 - Subsecs. (f) to (h). Pub. L. 105-362 redesignated subsecs.

(g) and (h) as (f) and (g), respectively, and struck out former

subsec. (f) which read as follows: "The Secretary shall submit a

report to the Congress, not later than 3 months after the end of

each fiscal year in which payments are made under this section,

regarding the program under this section. The report shall contain

a summary of the activities carried out under this section during

such fiscal year and any findings, conclusions, and recommendations

for legislation regarding the program."

1992 - Pub. L. 102-550, Sec. 832(b)(1), substituted "John Heinz

Neighborhood Development Program" for "Neighborhood Development

Demonstration" as section catchline.

Subsec. (a)(2). Pub. L. 102-550, Sec. 832(d)(1)-(3), (4),

redesignated subpars. (A) to (E) of par. (2) as cls. (i) to (v),

respectively, of subpar. (A) of par. (2) and added subpar. (B).

Subsec. (a)(2)(A)(iii). Pub. L. 102-550, Sec. 832(g)(1),

substituted "one year" for "three years".

Subsec. (a)(2)(A)(iv). Pub. L. 102-550, Sec. 832(e)(1), added cl.

(iv) and struck out former cl. (iv) which read as follows: "an

organization that operates within an area that meets the

requirements for Federal assistance under section 5318 of this

title; and".

Subsec. (a)(3), (4). Pub. L. 102-550, Sec. 832(e)(2), (3), added

par. (3) and redesignated former par. (3) as (4).

Subsec. (b)(1). Pub. L. 102-550, Sec. 832(f)(1), inserted ", and

from neighborhood development funding organizations," after

"neighborhoods".

Pub. L. 102-550, Sec. 832(b)(2), (3), struck out "demonstration"

before "program" and substituted "to support eligible" for "to

determine the feasibility of supporting eligible".

Subsec. (b)(2). Pub. L. 102-550, Sec. 832(b)(2), (g)(2), struck

out "demonstration" before "program." and substituted "For fiscal

year 1993 and thereafter, not more than 50 percent" for "Not more

than 30 per centum".

Subsec. (b)(3)(B). Pub. L. 102-550, Sec. 832(f)(2)(A), struck out

"and" at end.

Subsec. (b)(3)(C). Pub. L. 102-550, Sec. 832(f)(2)(B),

substituted ", especially in cooperation with a neighborhood

development funding organization, except that an eligible

neighborhood development organization shall be deemed to have the

full benefit of the cooperation of a neighborhood development

funding organization if the eligible neighborhood development

organization - " and cls. (i) and (ii) for period at end.

Subsec. (b)(3)(D). Pub. L. 102-550, Sec. 832(f)(2)(C), added

subpar. (D).

Subsec. (c)(3). Pub. L. 102-550, Sec. 832(f)(3), inserted before

semicolon "and by the extent of participation in the proposed

activities by a neighborhood development funding organization that

has a branch or office in the neighborhood, except that an eligible

neighborhood development organization shall be deemed to have the

full benefit of the participation of a neighborhood development

funding organization if the eligible neighborhood development

organization - " and subpars. (A) and (B).

Subsec. (e)(1). Pub. L. 102-550, Sec. 832(f)(4), inserted ", and

from neighborhood development funding organizations," after

"neighborhood".

Subsec. (e)(3). Pub. L. 102-550, Sec. 832(b)(4), inserted before

period ", except that, if appropriations for this section exceed

$3,000,000, the Secretary may pay not more than $75,000 to any

participating neighborhood development organization".

Subsec. (e)(5)(A). Pub. L. 102-550, Sec. 832(c), substituted

"comprehensive housing affordability strategy of such unit approved

under section 12705 of this title or the statement of community

development activities and community development plans of the unit

submitted under section 5304(m) of this title" for "housing and

community development plans of such unit".

Subsec. (e)(6)(C). Pub. L. 102-550, Sec. 832(b)(5)(A), inserted

"and" after "programs;".

Subsec. (e)(6)(D), (E). Pub. L. 102-550, Sec. 832(b)(5)(B)-(D),

redesignated subpar. (E) as (D), substituted "program" for

"demonstration", and struck out former subpar. (D) which read as

follows: "shall undertake any other activity the Secretary deems

necessary to carry out this section, which shall include an

evaluation and report to Congress on the demonstration and may

include the performance of research, planning, and administration,

either directly, or when in the Secretary's judgment such activity

will be carried out more effectively, more rapidly, or at less

cost, by contract or grant; and".

Subsec. (f). Pub. L. 102-550, Sec. 832(b)(6), added subsec. (f)

and struck out former subsec. (f) which read as follows: "The

Secretary shall submit to the Congress -

"(1) not later than three months after the end of each fiscal

year in which payments are made under this section, an interim

report containing a summary of the activities carried out under

this section during such fiscal year and any preliminary findings

or conclusions drawn from the demonstration program; and

"(2) not later than March 15 of the year after the end of the

last fiscal year in which such payments are made, a final report

containing a summary of all activities carried out under this

section, the evaluation required in subsection (e)(6)(D) of this

section and any findings, conclusions, or recommendations for

legislation drawn from the demonstration program."

Subsec. (g). Pub. L. 102-550, Sec. 832(a), amended subsec. (g)

generally. Prior to amendment, subsec. (g) read as follows: "To the

extent provided in appropriations Acts, of the amounts made

available for assistance under section 5303 of this title,

$2,000,000 for fiscal year 1991 and $2,000,000 for fiscal year 1992

shall be available to carry out this section."

Subsec. (h). Pub. L. 102-550, Sec. 832(b)(7), added subsec. (h).

1990 - Subsec. (g). Pub. L. 101-625 amended subsec. (g)

generally. Prior to amendment, subsec. (g) read as follows: "There

are authorized to be appropriated to carry out this section

$2,000,000 for fiscal year 1988, and $2,000,000 for fiscal year

1989."

1988 - Subsec. (e)(3). Pub. L. 100-242, Sec. 525, substituted

"under this section" for "under this Act".

Subsec. (g). Pub. L. 100-242, Sec. 521, amended subsec. (g)

generally. Prior to amendment, subsec. (g) read as follows: "For

purposes of carrying out this section, there are authorized to be

appropriated not to exceed $2,000,000 for each of the fiscal years

1984 and 1985."

1984 - Subsec. (b)(3)(A), (B). Pub. L. 98-479, Sec. 101(b)(2),

substituted "subsection (a)(1)" for "subsection (a)(4)" wherever

appearing.

Subsec. (c). Pub. L. 98-479, Sec. 101(b)(3), struck out "(1)"

before "The Secretary shall award" and redesignated subpars. (A) to

(D) as pars. (1) to (4), respectively.

-FOOTNOTE-

(!1) So in original. Probably should be "a".

-End-

-CITE-

42 USC Sec. 5319 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 69 - COMMUNITY DEVELOPMENT

-HEAD-

Sec. 5319. Community participation in programs

-STATUTE-

No community shall be barred from participating in any program

authorized under this chapter solely on the basis of population,

except as expressly authorized by statute.

-SOURCE-

(Pub. L. 93-383, title I, Sec. 120, as added Pub. L. 95-557, title

I, Sec. 103(i), Oct. 31, 1978, 92 Stat. 2084.)

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EFFECTIVE DATE

Section effective Oct. 1, 1978, see section 104 of Pub. L.

95-557, set out as an Effective Date of 1978 Amendment note under

section 1709 of Title 12, Banks and Banking.

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42 USC Sec. 5320 01/06/03

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TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 69 - COMMUNITY DEVELOPMENT

-HEAD-

Sec. 5320. Historic preservation requirements

-STATUTE-

(a) Regulations

With respect to applications for assistance under section 5318 of

this title, the Secretary of the Interior, after consulting with

the Secretary, shall prescribe and implement regulations concerning

projects funded under section 5318 of this title and their

relationship with -

(1) "An Act to establish a program for the preservation of

additional historic properties throughout the Nation, and for

other purposes", approved October 14, 1966, as amended [16 U.S.C.

470 et seq.]; and

(2) "An Act to provide for the preservation of historical and

archaeological data (including relics and specimens) which might

otherwise be lost as a result of the construction of a dam",

approved June 27, 1960, as amended [16 U.S.C. 469 to 469c-1].

(b) Actions by State historic preservation officer and Secretary of

the Interior

In prescribing and implementing such regulations with respect to

applications submitted under section 5318 of this title which

identify any property pursuant to subsection (c)(4)(B) of such

section, the Secretary of the Interior shall provide at least that

(1) the appropriate State historic preservation officer (as

determined in accordance with regulations prescribed by the

Secretary of the Interior) shall, not later than 45 days after

receiving information from the applicant relating to the

identification of properties which will be affected by the

project for which the application is made and which may meet the

criteria established by the Secretary of the Interior for

inclusion on the National Register of Historic Places (together

with documentation relating to such inclusion), submit his or her

comments, together with such other information considered

necessary by the officer, to the applicant concerning such

properties; and

(2) the Secretary of the Interior shall, not later than 45 days

after receiving from the applicant the information described in

paragraph (1) and the comments submitted to the applicant in

accordance with paragraph (1), make a determination as to whether

any of the properties affected by the project for which the

application is made is eligible for inclusion on the National

providing for expeditious action

The Advisory Council on Historic Preservation shall prescribe

regulations providing for expeditious action by the Council in

making its comments under section 106 of the Act [16 U.S.C. 470f]

referred to in subsection (a)(1) in the case of properties which

are included on, or eligible for inclusion on, the National

which an application is made under section 5318 of this title.

-SOURCE-

(Pub. L. 93-383, title I, Sec. 121, as added Pub. L. 96-399, title

I, Sec. 110(c), Oct. 8, 1980, 94 Stat. 1620; amended Pub. L. 97-35,

title III, Sec. 308(b), Aug. 13, 1981, 95 Stat. 396.)

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REFERENCES IN TEXT

"An Act to establish a program for the preservation of additional

historic properties throughout the Nation, and for other purposes",

approved October 14, 1966, as amended, referred to in subsec.

(a)(1), probably means Pub. L. 89-665, Oct. 15, 1966, 80 Stat. 915,

as amended, known as the National Historic Preservation Act, which

is classified generally to subchapter II (Sec. 470 et seq.) of

chapter 1A of Title 16, Conservation. For complete classification

of this Act to the Code see section 470(a) of Title 16 and Tables.

"An Act to provide for the preservation of historical and

archaeological data (including relics and specimens) which might

otherwise be lost as a result of the construction of a dam",

approved June 27, 1960, as amended, referred to in subsec. (a)(2),

is Pub. L. 86-523, June 27, 1960, 74 Stat. 220, as amended, which

enacted sections 469 to 469c-1 of Title 16. For complete

classification of this Act, see Tables.

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AMENDMENTS

1981 - Subsec. (b). Pub. L. 97-35 substituted "subsection

(c)(4)(B)" for "subsection (c)(7)(B)".

EFFECTIVE DATE OF 1981 AMENDMENT

Amendment by Pub. L. 97-35 effective on effective date of

regulations implementing such amendments, see section 308(c) of

Pub. L. 97-35, set out as a note under section 5318 of this title.

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SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 5318 of this title.

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42 USC Sec. 5321 01/06/03

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TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 69 - COMMUNITY DEVELOPMENT

-HEAD-

Sec. 5321. Suspension of requirements for disaster areas

-STATUTE-

For funds designated under this chapter by a recipient to address

the damage in an area for which the President has declared a

disaster under title IV of the Robert T. Stafford Disaster Relief

and Emergency Assistance Act [42 U.S.C. 5170 et seq.], the

Secretary may suspend all requirements for purposes of assistance

under section 5306 of this title for that area, except for those

related to public notice of funding availability,

nondiscrimination, fair housing, labor standards, environmental

standards, and requirements that activities benefit persons of low-

and moderate-income.

-SOURCE-

(Pub. L. 93-383, title I, Sec. 122, as added Pub. L. 103-233, title

II, Sec. 234, Apr. 11, 1994, 108 Stat. 369.)

-REFTEXT-

REFERENCES IN TEXT

The Robert T. Stafford Disaster Relief and Emergency Assistance

Act, referred to in text, is Pub. L. 93-288, May 22, 1974, 88 Stat.

143, as amended. Title IV of the Act is classified generally to

subchapter IV (Sec. 5170 et seq.) of chapter 68 of this title. For

complete classification of this Act to the Code, see Short Title

note set out under section 5121 of this title and Tables.

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EFFECTIVE DATE

Section applicable with respect to any amounts made available to

carry out subchapter II (Sec. 12721 et seq.) of chapter 130 of this

title after Apr. 11, 1994, and any amounts made available to carry

out that subchapter before that date that remain uncommitted on

that date, with Secretary to issue any regulations necessary to

carry out this section not later than end of 45-day period

beginning on that date, see section 209 of Pub. L. 103-233, set out

as an Effective Date of 1994 Amendment note under section 5301 of

this title.

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Enviado por:	El remitente no desea revelar su nombre
Idioma:	inglés
País:	Estados Unidos

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Codificación normativa de EEUU (Estados Unidos)Legislación federal estadounidense # The Public Health and Welfare

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