
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: 42USC5301]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                    CHAPTER 69--COMMUNITY DEVELOPMENT
 
Sec. 5301. Congressional findings and declaration of purpose


(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.

(c) Decent housing, suitable living environment, and economic 
        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.

(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.)

                       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.


                               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 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 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 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 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 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 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 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 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 3301 
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.''

                    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.

                  Section Referred to in Other Sections

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