
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 23, 2000]
[Document affected by Public Law 106-377 Section 1(a)(1)[224]]
[Document affected by Public Law 107-116 Section 631]
[CITE: 42USC5305]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                    CHAPTER 69--COMMUNITY DEVELOPMENT
 
Sec. 5305. Activities eligible for assistance


(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 2000 
    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 
    461(e) \1\ of title 40 on August 12, 1981;
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    \1\ See References in Text note below.
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        (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;
            (C) meets urgent needs;
            (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;
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    \2\ See References in Text note below.
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        (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
            (C) providing general support (such as peer support programs 
        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;
            (C) acquire guarantees for mortgage financing obtained by 
        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.

(c) Activities benefiting persons of low and moderate income

    (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
        (C) involve employment of persons, a majority of whom are 
    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.
            (C) To the extent practicable, any grant amounts to be 
        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.

(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.)

                       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 461(e) of title 40, referred to in subsec. (a)(13)(B), 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.

                          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''.


                               Amendments

    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 461(e) of 
title 40 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 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.

                  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.
