
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 42USC3104]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
      CHAPTER 37--COMMUNITY FACILITIES AND ADVANCE LAND ACQUISITION
 
Sec. 3104. Advance acquisition of land for public purposes


(a) Authority to make grants

    In order to encourage and assist the timely acquisition of land 
planned to be utilized in the future for public purposes, the Secretary 
is authorized to make grants to States and local public bodies and 
agencies to assist in financing the acquisition of a fee simple estate 
or other interest in such land.

(b) Maximum amount of grants

    The amount of any grant made under this section shall not exceed the 
aggregate amount of reasonable interest charges on the loans or other 
financial obligations incurred to finance the acquisition of such land 
for a period not in excess of the lesser of (1) five years from the date 
of acquisition of such land or (2) the period of time between the date 
on which the land was acquired and the date its use began for the 
purpose for which it was acquired: Provided, That where all or any 
portion of the cost of such land is not financed through borrowings, the 
amount of the grant shall be computed on the basis of the aggregate 
amount of reasonable interest charges that the Secretary determines 
would have been required.

(c) Utilization of land for public purpose within reasonable period of 
        time

    No grant shall be made under this section unless the Secretary 
determines that the land will be utilized for a public purpose within a 
reasonable period of time and that such utilization will contribute to 
economy, efficiency, and the comprehensively planned development of the 
area. The Secretary shall in all cases require that land acquired with 
the assistance of a grant under this section be utilized for a public 
purpose within five years after the date on which a contract to make 
such grant is entered into, unless the Secretary determines that due to 
unusual circumstances a longer period of time is necessary and in the 
public interest.

(d) Diversion of land; repayment; interim use

    No land acquired with assistance under this section shall, without 
approval of the Secretary, be diverted from the purpose originally 
approved. The Secretary shall approve no such diversion unless he finds 
that the diversion is in accord with the then applicable comprehensive 
plan for the area. In cases of a diversion of land to other than a 
public purpose, the Secretary may require repayment of the grant, or 
substitution of land of approximately equal fair market value, whichever 
he deems appropriate. An interim use of the land for a public or private 
purpose in accordance with standards prescribed by the Secretary, or 
approved by him, shall not constitute a diversion within the meaning of 
this subsection.

(e) Eligibility for other Federal loans or grant programs

    Notwithstanding any other provision of law, no project for which 
land is acquired with assistance under this section shall, solely as a 
result of such advance acquisition, be considered ineligible for the 
purpose of any other Federal loan or grant program, and the amount of 
the purchase price paid for the land by the recipient of a grant under 
this section may be considered an eligible cost for the purpose of such 
other Federal loan or grant program.

(Pub. L. 89-117, title VII, Sec. 704, Aug. 10, 1965, 79 Stat. 491; Pub. 
L. 90-19, Sec. 22(b), May 25, 1967, 81 Stat. 26; Pub. L. 90-448, title 
VI, Sec. 603(b), Aug. 1, 1968, 82 Stat. 533; Pub. L. 96-470, title I, 
Sec. 107(c), Oct. 19, 1980, 94 Stat. 2238.)


                               Amendments

    1980--Subsec. (c). Pub. L. 96-470 substituted ``unless the Secretary 
determines that due to unusual circumstances a longer period of time is 
necessary and in the public interest'' for ``unless the Secretary (1) 
determines that due to unusual circumstances a longer period of time is 
necessary and in the public interest, and (2) reports such determination 
promptly to the Committees on Banking and Currency of the Senate and 
House of Representatives''.
    1968--Subsec. (a). Pub. L. 90-448 substituted ``to be utilized in 
the future for public purposes'' for ``to be utilized in connection with 
the future construction of public works or facilities''.
    Subsec. (b). Pub. L. 90-448 changed the period from not more than 
the lesser of (1) five years from the date such loan was made or such 
financial obligation was incurred, or (2) the period of time between the 
date such loan was made or such financial obligation was incurred and 
the date construction is begun on the public work or facility, to not 
more than the lesser of (1) five years from the date of acquisition of 
such land, or (2) the period of time between the date on which the land 
was acquired and the date its use began for the purpose for which it was 
acquired, and inserted proviso requiring the amount of the grant, where 
all or any portion of the cost of land is not financed through 
borrowings, to be computed on the basis of the aggregate amount of 
reasonable interest charges that the Secretary determines would have 
been required.
    Subsec. (c). Pub. L. 90-448 substituted provisions requiring the 
Secretary to determine that the land will be utilized for a public 
purpose within a reasonable period of time, for provisions which 
required a determination that the public work or facility for which the 
land is to be utilized is planned to be constructed or initiated within 
a reasonable period of time, empowered the Secretary to extend the time 
if he determines that due to unusual circumstances a longer period of 
time is necessary and in the public interest, and required a prompt 
report of such determination to Congressional Committees.
    Subsec. (d). Pub. L. 90-448 inserted provisions prohibiting 
diversion of land without approval of the Secretary, directing the 
Secretary to disapprove any diversion unless he finds that the diversion 
is in accord with the then applicable comprehensive plan for the area, 
authorizing the Secretary to accept, in cases of repayment, substitution 
of land of approximately equal fair market value, and stating that an 
interim use of land for a public or private purpose in accordance with 
prescribed standards shall not constitute a diversion, and eliminated 
provisions which required repayment if the land purchased with 
assistance is not utilized within five years after the agreement is 
entered into in connection with the construction of the public work or 
facility for which the land was acquired.
    Subsec. (e). Pub. L. 90-448 added subsec. (e).
    1967--Subsecs. (a), (c), (d). Pub. L. 90-19 substituted 
``Secretary'' for ``Administrator'' wherever appearing.

                  Section Referred to in Other Sections

    This section is referred to in section 3108 of this title.
