|
From
the U.S. Code
[Laws in effect as of January 20, 1999]
[CITE: 42USC5318]
(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
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.
(c)
Applications; documentation of eligibility; proposed plan; 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;
(C)
the following other criteria:
(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
\1\ So in original. Probably should not be capitalized.
(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);
(C)
not more than 33 points on the basis of the criteria 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.
(C) Notwithstanding any other provision of this section,
in each 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 5302(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\
\2\ So in original.
(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.
(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.)
|
![[Logo: Homes and Communities: U.S. Department of Housing and Urban Development]](/images/common/hgv-bnr-logo2.gif){kind=logo}
![[Vea la versión en español de esta página]](/images/common/hgv-bnr-espanol2.gif)
![[Contact Us]](/images/common/hgv-bnr-contactus.gif)
![[Display the text version of this page]](/images/common/hgv-bnr-text.gif)
![[Search/Index]](/images/common/hgv-bnr-search.gif)
![[The U.S. government's official web portal]](/images/common/hgv-tpc-usagov.gif){kind=small}
![[logo: Fair Housing and Equal Opportunity]](/images/common/hgv-icn-fheo.gif){kind=small}
![[Logo: HUD seal]](/images/common/hgv-icn-seal.gif)