
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: 42USC5306]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                    CHAPTER 69--COMMUNITY DEVELOPMENT
 
Sec. 5306. Allocation and distribution of funds


(a) Amounts allocated to Indian tribes, discretionary fund, and 
        metropolitan cities and urban counties; limitations on amount of 
        annual grants

    (1) For each fiscal year, of the amount approved in an appropriation 
Act under section 5303 of this title for grants in any year (excluding 
the amounts provided for use in accordance with section 5307 of this 
title), the Secretary shall reserve for grants to Indian tribes 1 
percent of the amount appropriated under such section. The Secretary 
shall provide for distribution of amounts under this paragraph to Indian 
tribes on the basis of a competition conducted pursuant to specific 
criteria for the selection of Indian tribes to receive such amounts. The 
criteria shall be contained in a regulation promulgated by the Secretary 
after notice and public comment. Notwithstanding any other provision of 
this Act, such grants to Indian tribes shall not be subject to the 
requirements of section 5304 of this title, except subsections (f), (g), 
and (k) of such section.
    (2) After reserving such amounts for Indian tribes, the Secretary 
shall allocate amounts provided for use under section 5307 of this 
title.
    (3) Of the amount remaining after allocations pursuant to paragraphs 
(1) and (2), 70 percent shall be allocated by the Secretary to 
metropolitan cities and urban counties. Except as otherwise specifically 
authorized, each metropolitan city and urban county shall be entitled to 
an annual grant from such allocation in an amount not exceeding its 
basic amount computed pursuant to paragraph (1) or (2) of subsection (b) 
of this section.

(b) Computation of amount allocated to metropolitan cities and urban 
        counties

    (1) The Secretary shall determine the amount to be allocated to each 
metropolitan city which shall be the greater of an amount that bears the 
same ratio to the allocation for all metropolitan areas as either--
        (A) the average of the ratios between--
            (i) the population of that city and the population of all 
        metropolitan areas;
            (ii) the extent of poverty in that city and the extent of 
        poverty in all metropolitan areas; and
            (iii) the extent of housing overcrowding in that city and 
        the extent of housing overcrowding in all metropolitan areas; or

        (B) the average of the ratios between--
            (i) the extent of growth lag in that city and the extent of 
        growth lag in all metropolitan cities;
            (ii) the extent of poverty in that city and the extent of 
        poverty in all metropolitan areas; and
            (iii) the age of housing in that city and the age of housing 
        in all metropolitan areas.

    (2) The Secretary shall determine the amount to be allocated to each 
urban county, which shall be the greater of an amount that bears the 
same ratio to the allocation for all metropolitan areas as either--
        (A) the average of the ratios between--
            (i) the population of that urban county and the population 
        of all metropolitan areas;
            (ii) the extent of poverty in that urban county and the 
        extent of poverty in all metropolitan areas; and
            (iii) the extent of housing overcrowding in that urban 
        county and the extent of housing overcrowding in all 
        metropolitan areas; or

        (B) the average of the ratios between--
            (i) the extent of growth lag in that urban county and the 
        extent of growth lag in all metropolitan cities and urban 
        counties;
            (ii) the extent of poverty in that urban county and the 
        extent of poverty in all metropolitan areas; and
            (iii) the age of housing in that urban county and the age of 
        housing in all metropolitan areas.

    (3) In determining the average of ratios under paragraphs (1)(A) and 
(2)(A), the ratio involving the extent of poverty shall be counted 
twice, and each of the other ratios shall be counted once; and in 
determining the average of ratios under paragraphs (1)(B) and (2)(B), 
the ratio involving the extent of growth lag shall be counted once, the 
ratio involving the extent of poverty shall be counted one and one-half 
times, and the ratio involving the age of housing shall be counted two 
and one-half times.
    (4) In computing amounts or exclusions under this section with 
respect to any urban county, there shall be excluded units of general 
local government located in the county the populations of which are not 
counted in determining the eligibility of the urban county to receive a 
grant under this subsection, except that there shall be included any 
independent city (as defined by the Bureau of the Census) which--
        (A) is not part of any county;
        (B) is not eligible for a grant pursuant to subsection (b)(1) of 
    this section;
        (C) is contiguous to the urban county;
        (D) has entered into cooperation agreements with the urban 
    county which provide that the urban county is to undertake or to 
    assist in the undertaking of essential community development and 
    housing assistance activities with respect to such independent city; 
    and
        (E) is not included as a part of any other unit of general local 
    government for purposes of this section.

Any independent city which is included in any fiscal year for purposes 
of computing amounts pursuant to the preceding sentence shall not be 
eligible to receive assistance under subsection (d) of this section with 
respect to such fiscal year.
    (5) In computing amounts under this section with respect to any 
urban county, there shall be included all of the area of any unit of 
local government which is part of, but is not located entirely within 
the boundaries of, such urban county if the part of such unit of local 
government which is within the boundaries of such urban county would 
otherwise be included in computing the amount for such urban county 
under this section, and if the part of such unit of local government 
which is not within the boundaries of such urban county is not included 
as a part of any other unit of local government for the purpose of this 
section. Any amount received by such urban county under this section may 
be used with respect to the part of such unit of local government which 
is outside the boundaries of such urban county.
    (6)(A) Where data are available, the amount determined under 
paragraph (1) for a metropolitan city that has been formed by the 
consolidation of one or more metropolitan cities with an urban county 
shall be equal to the sum of the amounts that would have been determined 
under paragraph (1) for the metropolitan city or cities and the balance 
of the consolidated government, if such consolidation had not occurred. 
This paragraph shall apply only to any consolidation that--
        (i) included all metropolitan cities that received grants under 
    this section for the fiscal year preceding such consolidation and 
    that were located within the urban county;
        (ii) included the entire urban county that received a grant 
    under this section for the fiscal year preceding such consolidation; 
    and
        (iii) took place on or after January 1, 1983.

    (B) The population growth rate of all metropolitan cities referred 
to in section 5302(a)(12) of this title shall be based on the population 
of (i) metropolitan cities other than consolidated governments the grant 
for which is determined under this paragraph; and (ii) cities that were 
metropolitan cities before their incorporation into consolidated 
governments. For purposes of calculating the entitlement share for the 
balance of the consolidated government under this paragraph, the entire 
balance shall be considered to have been an urban county.

(c) Reallocation of undistributed funds within same metropolitan area as 
        original allocation; amount and calculation of reallocation 
        grant; disaster relief

    (1) Except as provided in paragraphs (2) and (4), any amounts 
allocated to a metropolitan city or an urban county pursuant to the 
preceding provisions of this section which are not received by the city 
or county for a fiscal year because of failure to meet the requirements 
of subsection (a), (b), (c), or (d) of section 5304 of this title, or 
which become available as a result of actions under section 5304(e) or 
5311 of this title, shall be reallocated in the succeeding fiscal year 
to the other metropolitan cities and urban counties in the same 
metropolitan area which certify to the satisfaction of the Secretary 
that they would be adversely affected by the loss of such amounts from 
the metropolitan area. The amount of the share of funds reallocated 
under this paragraph for any metropolitan city or urban county shall 
bear the same ratio to the total of such reallocated funds in the 
metropolitan area as the amount of funds awarded to the city or county 
for the fiscal year in which the reallocated funds become available 
bears to the total amount of funds awarded to all metropolitan cities 
and urban counties in the same metropolitan area for that fiscal year, 
except that--
        (A) in determining the amounts awarded to cities or counties for 
    purposes of calculating shares pursuant to this sentence, there 
    shall be excluded from the award of any city or county any amounts 
    which become available as a result of actions against such city or 
    county under section 5311 of this title;
        (B) in reallocating amounts resulting from an action under 
    section 5304(e) of this title or section 5311 of this title, a city 
    or county against whom any such action was taken in a fiscal year 
    shall be excluded from a calculation of share for purposes of 
    reallocating, in the succeeding year, the amounts becoming available 
    as a result of such action; and
        (C) in no event may the share of reallocated funds for any 
    metropolitan city or urban county exceed 25 per centum of the amount 
    awarded to the city or county under subsection (b) of this section 
    for the fiscal year in which the reallocated funds under this 
    paragraph become available.

Any amounts allocated under subsection (b) of this section which become 
available for reallocation and for which no metropolitan city or urban 
county qualifies under this paragraph shall be added to amounts 
available for allocation under such subsection (b) of this section in 
the succeeding fiscal year.
    (2) Notwithstanding any other provision of this chapter, the 
Secretary shall make grants from amounts authorized for use under 
subsection (b) of this section by the Department of Housing and Urban 
Development--Independent Agencies Appropriation Act, 1981, in accordance 
with the provisions of this chapter which governed grants with respect 
to such amounts, as such provisions existed prior to October 1, 1981, 
except that any such amounts which are not obligated before January 1, 
1982, shall be reallocated in accordance with paragraph (1).
    (3) Notwithstanding the provisions of paragraph (1), the Secretary 
may upon request transfer responsibility to any metropolitan city for 
the administration of any amounts received, but not obligated, by the 
urban county in which such city is located if (A) such city was an 
included unit of general local government in such county prior to the 
qualification of such city as a metropolitan city; (B) such amounts were 
designated and received by such county for use in such city prior to the 
qualification of such city as a metropolitan city; and (C) such city and 
county agree to such transfer of responsibility for the administration 
of such amounts.
    (4)(A) Notwithstanding paragraph (1), in the event of a major 
disaster declared by the President under the Robert T. Stafford Disaster 
Relief and Emergency Assistance Act [42 U.S.C. 5121 et seq.], the 
Secretary shall make available, to metropolitan cities and urban 
counties located or partially located in the areas affected by the 
disaster, any amounts that become available as a result of actions under 
section 5304(e) or 5311 of this title.
    (B) In using any amounts that become available as a result of 
actions under section 5304(e) or 5311 of this title, the Secretary shall 
give priority to providing emergency assistance under this paragraph.
    (C) The Secretary may provide assistance to any metropolitan city or 
urban county under this paragraph only to the extent necessary to meet 
emergency community development needs, as the Secretary shall determine 
(subject to subparagraph (D)), of the city or county resulting from the 
disaster that are not met with amounts otherwise provided under this 
chapter, the Robert T. Stafford Disaster Relief and Emergency Assistance 
Act [42 U.S.C. 5121 et seq.], and other sources of assistance.
    (D) Amounts provided to metropolitan cities and urban counties under 
this paragraph may be used only for eligible activities under section 
5305 of this title, and in implementing this section, the Secretary 
shall evaluate the natural hazards to which any permanent replacement 
housing is exposed and shall take appropriate action to mitigate such 
hazards.
    (E) The Secretary shall provide for applications (or amended 
applications and statements under section 5304 of this title) for 
assistance under this paragraph.
    (F) A metropolitan city or urban county eligible for assistance 
under this paragraph may receive such assistance only in each of the 
fiscal years ending during the 3-year period beginning on the date of 
the declaration of the disaster by the President.
    (G) This paragraph may not be construed to require the Secretary to 
reserve any amounts that become available as a result of actions under 
section 5304(e) or 5311 of this title for assistance under this 
paragraph if, when such amounts are to be reallocated under paragraph 
(1), no metropolitan city or urban county qualifies for assistance under 
this paragraph.

(d) Allocation among States for nonentitlement areas; amount and 
        calculation of grants; distributions by State or Secretary; 
        certain distributions made pursuant to prior provisions; 
        certifications required by Governor enumerated; responsibility 
        for administration and administrative expenses; reallocation; 
        certifications required of units of general local government in 
        nonentitlement areas; applicability of this chapter and other 
        law

    (1) Of the amount approved in an appropriation Act under section 
5303 of this title that remains after allocations pursuant to paragraphs 
(1) and (2) of subsection (a) of this section, 30 per centum shall be 
allocated among the States for use in nonentitlement areas. The 
allocation for each State shall be the greater of an amount that bears 
the same ratio to the allocation for such areas of all States available 
under this subparagraph as either--
        (A) the average of the ratios between--
            (i) the population of the nonentitlement areas in that State 
        and the population of the nonentitlement areas of all States;
            (ii) the extent of poverty in the nonentitlement areas in 
        that State and the extent of poverty in the nonentitlement areas 
        of all States; and
            (iii) the extent of housing overcrowding in the 
        nonentitlement areas in that State and the extent of housing 
        overcrowding in the nonentitlement areas of all States; or

        (B) the average of the ratios between--
            (i) the age of housing in the nonentitlement areas in that 
        State and the age of housing in the nonentitlement areas of all 
        States;
            (ii) the extent of poverty in the nonentitlement areas in 
        that States and the extent of poverty in the nonentitlement 
        areas of all States; and
            (iii) the population of the nonentitlement areas in that 
        State and the population of the nonentitlement areas of all 
        States.

In determining the average of the ratios under subparagraph (A) the 
ratio involving the extent of poverty shall be counted twice and each of 
the other ratios shall be counted once; and in determining the average 
of the ratios under subparagraph (B), the ratio involving the age of 
housing shall be counted two and one-half times, the ratio involving the 
extent of poverty shall be counted one and one-half times, and the ratio 
involving population shall be counted once. The Secretary shall, in 
order to compensate for the discrepancy between the total of the amounts 
to be allocated under this paragraph and the total of the amounts 
available under such paragraph, make a pro rata reduction of each amount 
allocated to the nonentitlement areas in each State under such paragraph 
so that the nonentitlement areas in each State will receive an amount 
which represents the same percentage of the total amount available under 
such paragraph as the percentage which the nonentitlement areas of the 
same State would have received under such paragraph if the total amount 
available under such paragraph had equaled the total amount which was 
allocated under such paragraph.
    (2)(A) Amounts allocated under paragraph (1) shall be distributed to 
units of general local government located in nonentitlement areas of the 
State to carry out activities in accordance with the provisions of this 
chapter--
        (i) by a State that has elected, in such manner and at such time 
    as the Secretary shall prescribe, to distribute such amounts, 
    consistent with the statement submitted under section 5304(a) of 
    this title; or
        (ii) by the Secretary, in any case described in subparagraph 
    (B), for use by units of general local government in accordance with 
    paragraph (3)(B).

Any election to distribute funds made after the close of fiscal year 
1984 is permanent and final. Notwithstanding any provision of this 
chapter, the Secretary shall make grants from amounts authorized for use 
in nonentitlement areas by the Department of Housing and Urban 
Development--Independent Agencies Appropriation Act, 1981, in accordance 
with the provisions of this chapter which governed grants with respect 
to such amounts, as such provisions existed prior to October 1, 1981. 
Any amounts under the preceding sentence (except amounts for which 
preapplications have been approved by the Secretary prior to October 1, 
1981, and which have been obligated by January 1, 1982) which are or 
become available for obligation after fiscal year 1981 shall be 
available for distribution in the State in which the grants from such 
amounts were made, by the State or by the Secretary, whichever is 
distributing the State allocation in the fiscal year in which such 
amounts are or become available.
    (B) The Secretary shall distribute amounts allocated under paragraph 
(1) if the State has not elected to distribute such amounts.
    (C) To receive and distribute amounts allocated under paragraph (1), 
the State must certify that it, with respect to units of general local 
government in nonentitlement areas--
        (i) engages or will engage in planning for community development 
    activities;
        (ii) provides or will provide technical assistance to units of 
    general local government in connection with community development 
    programs;
        (iii) will not refuse to distribute such amounts to any unit of 
    general local government on the basis of the particular eligible 
    activity selected by such unit of general local government to meet 
    its community development needs, except that this clause may not be 
    considered to prevent a State from establishing priorities in 
    distributing such amounts on the basis of the activities selected; 
    and
        (iv) has consulted with local elected officials from among units 
    of general local government located in nonentitlement areas of that 
    State in determining the method of distribution of funds required by 
    subparagraph (A).

    (D) To receive and distribute amounts allocated under paragraph (1), 
the State shall certify that each unit of general local government to be 
distributed funds will be required to identify its community development 
and housing needs, including the needs of low and moderate income 
persons, and the activities to be undertaken to meet such needs.
    (3)(A) If the State receives and distributes such amounts, it shall 
be responsible for the administration of funds so distributed. The State 
shall pay from its own resources all administrative expenses incurred by 
the State in carrying out its responsibilities under this chapter or 
section 1437o(e)(1) \1\ of this title, except that from the amounts 
received for distribution in nonentitlement areas, the State may deduct 
an amount to cover such expenses and its administrative expenses under 
section 1706e \1\ of title 12 not to exceed the sum of $100,000 plus 50 
percent of any such expenses under this chapter in excess of $100,000. 
Amounts deducted in excess of $100,000 shall not exceed 2 percent of the 
amount so received.
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    \1\ See References in Text note below.
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    (B) If the Secretary distributes such amounts, the distribution 
shall be made in accordance with determinations of the Secretary 
pursuant to statements submitted and the other requirements of section 
5304 of this title (other than subsection (c)) and in accordance with 
regulations and procedures prescribed by the Secretary.
    (C) Any amounts allocated for use in a State under paragraph (1) 
that are not received by the State for any fiscal year because of 
failure to meet the requirements of subsection (a), (b), or (d) of 
section 5304 of this title or to make the certifications required in 
subparagraphs (C) and (D) of paragraph (2), or that become available as 
a result of actions against the State under section 5304(e) or 5311 of 
this title, shall be added to amounts allocated to all States under 
paragraph (1) for the succeeding fiscal year.
    (D) Any amounts allocated for use in a State under paragraph (1) 
that become available as a result of actions under section 5304(e) or 
5311 of this title against units of general local government in 
nonentitlement areas of the State or as a result of the closeout of a 
grant made by the Secretary under this section in nonentitlement areas 
of the State shall be added to amounts allocated to the State under 
paragraph (1) for the fiscal year in which the amounts become so 
available.
    (4) Any combination of units of general local governments may not be 
required to obtain recognition by the Secretary pursuant to section 
5302(a)(1) of this title to be treated as a single unit of general local 
government for purposes of this subsection.
    (5) \2\ From the amounts received under paragraph (1) for 
distribution in nonentitlement areas, the State may deduct an amount, 
not to exceed 1 percent of the amount so received, to provide technical 
assistance to local governments and nonprofit program recipients.
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    \2\ So in original. Two pars. (5) have been enacted.
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    (5) \2\ No amount may be distributed by any State or the Secretary 
under this subsection to any unit of general local government located in 
a nonentitlement area unless such unit of general local government 
certifies that--
        (A) it will minimize displacement of persons as a result of 
    activities assisted with such amounts;
        (B) its program will be conducted and administered in conformity 
    with the Civil Rights Act of 1964 [42 U.S.C. 2000a et seq.] and the 
    Fair Housing Act [42 U.S.C. 3601 et seq.], and that it will 
    affirmatively further fair housing;
        (C) it will provide for opportunities for citizen participation, 
    hearings, and access to information with respect to its community 
    development program that are comparable to those required of 
    grantees under section 5304(a)(2) of this title; and
        (D) it will not attempt to recover any capital costs of public 
    improvements assisted in whole or part under this section or with 
    amounts resulting from a guarantee under section 5308 of this title 
    by assessing any amount against properties owned and occupied by 
    persons of low and moderate income, including any fee charged or 
    assessment made as a condition of obtaining access to such public 
    improvements, unless (i) funds received under this section are used 
    to pay the proportion of such fee or assessment that relates to the 
    capital costs of such public improvements that are financed from 
    revenue sources other than under this chapter; or (ii) for purposes 
    of assessing any amount against properties owned and occupied by 
    persons of moderate income, the grantee certifies to the Secretary 
    or such State, as the case may be, that it lacks sufficient funds 
    received under this section to comply with the requirements of 
    clause (i).

    (6) Any activities conducted with amounts received by a unit of 
general local government under this subsection shall be subject to the 
applicable provisions of this chapter and other Federal law in the same 
manner and to the same extent as activities conducted with amounts 
received by a unit of general local government under subsection (a) of 
this section.

(e) Qualification or submission dates, and finality and conclusiveness 
        of computations and determinations

    The Secretary may fix such qualification or submission dates as he 
determines are necessary to permit the computations and determinations 
required by this section to be made in a timely manner, and all such 
computations and determinations shall be final and conclusive.

(f) Pro rata adjustment of entitlement amounts

    If the total amount available for distribution in any fiscal year to 
metropolitan cities and urban counties under this section is 
insufficient to provide the amounts to which metropolitan cities and 
urban counties would be entitled under subsection (b) of this section, 
and funds are not otherwise appropriated to meet the deficiency, the 
Secretary shall meet the deficiency through a pro rata reduction of all 
amounts determined under subsection (b) of this section. If the total 
amount available for distribution in any fiscal year to metropolitan 
cities and urban counties under this section exceeds the amounts to 
which metropolitan cities and urban counties would be entitled under 
subsection (b) of this section, the Secretary shall distribute the 
excess through a pro rata increase of all amounts determined under 
subsection (b) of this section.

(Pub. L. 93-383, title I, Sec. 106, Aug. 22, 1974, 88 Stat. 642; Pub. L. 
95-128, title I, Sec. 106, Oct. 12, 1977, 91 Stat. 1117; Pub. L. 96-153, 
title I, Sec. 103(d), (e), Dec. 21, 1979, 93 Stat. 1102; Pub. L. 96-399, 
title I, Secs. 102, 103, 111(d)-(g), 112, Oct. 8, 1980, 94 Stat. 1615, 
1621, 1622; Pub. L. 97-35, title III, Secs. 304, 309(h), Aug. 13, 1981, 
95 Stat. 388, 396; Pub. L. 98-181, title I, Sec. 106, Nov. 30, 1983, 97 
Stat. 1164; Pub. L. 98-479, title I, Sec. 101(a)(10)-(12), Oct. 17, 
1984, 98 Stat. 2219, 2220; Pub. L. 100-242, title V, Secs. 512, 513, 
517(b)(1), Feb. 5, 1988, 101 Stat. 1930, 1936; Pub. L. 100-628, title X, 
Sec. 1082(b), (c), Nov. 7, 1988, 102 Stat. 3277; Pub. L. 101-235, title 
VII, Sec. 702(b), Dec. 15, 1989, 103 Stat. 2056; Pub. L. 101-625, title 
IX, Secs. 913(b), 933, Nov. 28, 1990, 104 Stat. 4392, 4403; Pub. L. 102-
550, title VIII, Secs. 802(b), 808, 811, title XII, Sec. 1204(i), Oct. 
28, 1992, 106 Stat. 3845, 3850, 3940.)

                       References in Text

    This Act, referred to in subsec. (a)(1), is Pub. L. 93-383, Aug. 22, 
1974, 88 Stat. 633, as amended, known as the Housing and Community 
Development Act of 1974. For complete classification of this Act to the 
Code, see Short Title note set out under section 5301 of this title and 
Tables.
    The Department of Housing and Urban Development--Related Agencies 
Appropriation Act, 1981, referred to in subsecs. (c)(2) and (d)(2)(A), 
is Pub. L. 96-526, Dec. 15, 1980, 94 Stat. 3044. For complete 
classification of this Act to the Code, see Tables.
    The Robert T. Stafford Disaster Relief and Emergency Assistance Act, 
referred to in subsec. (c)(4)(A), (C), is Pub. L. 93-288, May 22, 1974, 
88 Stat. 143, as amended, which is classified principally to chapter 68 
(Sec. 5121 et seq.) of this title. For complete classification of this 
Act to the Code, see Short Title note set out under section 5121 of this 
title and Tables.
    This subparagraph, referred to in subsec. (d)(1), probably should be 
a reference to this paragraph, meaning par. (1) of subsec. (d) of this 
section.
    Section 1437o of this title and section 1706e of title 12, referred 
to in subsec. (d)(3)(A), was repealed by Pub. L. 101-625, title II, 
Sec. 289(b), Nov. 28, 1990, 104 Stat. 4128.
    The Civil Rights Act of 1964, referred to in subsec. (d)(5)(B), is 
Pub. L. 88-352, July 2, 1964, 78 Stat. 241, as amended, which is 
classified principally to subchapters II to IX (Sec. 2000a et seq.) of 
chapter 21 of this title. For complete classification of this Act to the 
Code, see Short Title note set out under section 2000a of this title and 
Tables.
    The Fair Housing Act, referred to in subsec. (d)(5)(B), is title 
VIII of Pub. L. 90-284, Apr. 11, 1968, 82 Stat. 81, as amended, which is 
classified principally to subchapter I (Sec. 3601 et seq.) of chapter 45 
of this title. For complete classification of this Act to the Code, see 
Short Title note set out under section 3601 of this title and Tables.

                          Codification

    In subsecs. (c)(2) and (d)(2)(A), ``October 1, 1981'' substituted 
for ``the effective date of the Housing and Community Development 
Amendments of 1981'' meaning the effective date of subtitle A of title 
III of Pub. L. 97-35, Aug. 13, 1981, 95 Stat. 384, which was generally 
effective Oct. 1, 1981. See Effective Date of 1981 Amendment note below.


                               Amendments

    1992--Subsec. (d)(1). Pub. L. 102-550, Sec. 1204(i), in first 
sentence, substituted ``that remains after allocations pursuant to 
paragraphs (1) and (2) of subsection (a) of this section'' for ``for 
grants in any year (excluding the amounts provided for use in accordance 
with subsection (a)(1) and (2) of this section)''.
    Subsec. (d)(4). Pub. L. 102-550, Sec. 802(b), added par. (4).
    Subsec. (d)(5). Pub. L. 102-550, Sec. 811, added par. (5) relating 
to State deductions for technical assistance.
    Subsec. (d)(5)(B). Pub. L. 102-550, Sec. 808, substituted ``the 
Civil Rights Act of 1964 and the Fair Housing Act'' for ``Public Law 88-
352 and Public Law 90-284''.
    1990--Subsec. (a). Pub. L. 101-625, Sec. 913(b)(1)(B), added subsec. 
(a) and struck out former subsec. (a) which read as follows: ``Of the 
amount approved in an appropriation Act under section 5303 of this title 
for grants in any year (excluding the amounts provided for use in 
accordance with section 5307 of this title and section 5318 of this 
title), 70 per centum shall be allocated by the Secretary to 
metropolitan cities and urban counties and Indian tribes. Except as 
otherwise specifically authorized, each metropolitan city and urban 
county shall be entitled to an annual grant from such allocation in an 
amount not exceeding its basic amount computed pursuant to paragraph (1) 
or (2) of subsection (b) of this section Indian tribes shall receive 
grants from such allocation pursuant to subsection (b)(7) of this 
section.''
    Subsec. (b)(1), (2). Pub. L. 101-625, Sec. 913(b)(2), substituted 
``The'' for ``After taking into account the set-aside for Indian tribes 
under paragraph (7), the'' in introductory provisions of pars. (1) and 
(2).
    Subsec. (b)(7). Pub. L. 101-625, Sec. 913(b)(1)(A), struck out par. 
(7), which read as follows:
    ``(A) For each fiscal year, the Secretary shall reserve for grants 
to Indian tribes, from amounts approved in appropriation Acts under 
section 5303 of this title for grants for the year under subsection (a) 
of this section, not more than 1 percent of the amounts appropriated 
under such section.
    ``(B) The Secretary shall provide for distribution of amounts under 
this paragraph to Indian tribes on the basis of a competition conducted 
pursuant to specific criteria for the selection of Indian tribes to 
receive such amounts. The criteria shall be contained in a regulation 
promulgated by the Secretary after notice and public comment.''
    Subsec. (c)(1). Pub. L. 101-625, Sec. 933(1), substituted 
``paragraphs (2) and (4)'' for ``paragraph (2)'' in introductory 
provisions.
    Subsec. (c)(4). Pub. L. 101-625, Sec. 933(2), added par. (4).
    Subsec. (d)(1). Pub. L. 101-625, Sec. 913(b)(3), substituted 
``subsection (a)(1) and (2) of this section'' for ``section 5307 of this 
title and section 5318 of this title'' in introductory provisions.
    1989--Subsec. (a). Pub. L. 101-235, Sec. 702(b)(1), inserted ``and 
Indian tribes'' after ``urban counties'' in first sentence and inserted 
``Indian tribes shall receive grants from such allocation pursuant to 
subsection (b)(7) of this section'' before period at end of second 
sentence.
    Subsec. (b)(1). Pub. L. 101-235, Sec. 702(b)(2), substituted ``After 
taking into account the set-aside for Indian tribes under paragraph (7), 
the'' for ``The''.
    Subsec. (b)(2). Pub. L. 101-235, Sec. 702(b)(3), substituted ``After 
taking into account the set-aside for Indian tribes under paragraph (7), 
the'' for ``The''.
    Subsec. (b)(7). Pub. L. 101-235, Sec. 702(b)(4), added par. (7).
    Subsec. (d)(4). Pub. L. 101-235, Sec. 702(b)(5), struck out par. (4) 
which excluded Indian tribes in computing amounts under par. (1).
    1988--Subsec. (c)(1). Pub. L. 100-628, Sec. 1082(b), substituted 
``subsection (a), (b), (c), or (d) of section 5304'' for ``section 
5304(a), (b), or (c)'' in introductory provisions and substituted 
``section 5304(e)'' for ``section 5304(d)'' in introductory provisions 
and in subpar. (B).
    Subsec. (d)(2)(C). Pub. L. 100-242, Sec. 512(1), substituted ``the 
State must certify that it'' for ``the Governor must certify that the 
State''.
    Subsec. (d)(2)(D). Pub. L. 100-242, Sec. 512(2), substituted ``the 
State'' for ``the Governor of each State''.
    Subsec. (d)(3)(A). Pub. L. 100-242, Sec. 517(b)(1), inserted ``its 
administrative expenses under section 1706e of title 12'' after first 
reference to ``such expenses'', and ``under this chapter'' after second 
reference to ``such expenses''.
    Pub. L. 100-242, Sec. 513, substituted ``$100,000'' for ``$102,000'' 
after ``the sum of''.
    Subsec. (d)(3)(C). Pub. L. 100-628, Sec. 1082(c), substituted 
``subsection (a), (b), or (d) of section 5304'' for ``subsection (a) or 
(b) of section 5304'' and ``section 5304(e)'' for ``section 5304(d)''.
    Subsec. (d)(3)(D). Pub. L. 100-628, Sec. 1082(c)(2), substituted 
``section 5304(e)'' for ``section 5304(d)''.
    1984--Subsec. (d)(2)(A). Pub. L. 98-479, Sec. 101(a)(10)(A), 
substituted ``the State'' for ``a State that has elected, in such manner 
and at such time as the Secretary shall prescribe'' in provisions 
preceding cl. (i).
    Subsec. (d)(2)(A)(i). Pub. L. 98-479, Sec. 101(a)(10)(B), 
substituted ``a State that has elected, in such manner and at such time 
as the Secretary shall prescribe, to distribute such amounts'' for ``the 
State''.
    Subsec. (d)(3)(A). Pub. L. 98-479, Sec. 101(a)(11)(A), inserted ``or 
section 1437o(e)(1) of this title''.
    Subsec. (d)(3)(C). Pub. L. 98-479, Sec. 101(a)(11)(B), inserted ``or 
to make the certifications required in subparagraphs (C) and (D) of 
paragraph (2)''.
    Subsec. (d)(5)(D)(ii). Pub. L. 98-479, Sec. 101(a)(12), substituted 
``moderate'' for ``low and moderate income who are not persons of very 
low'' before ``income, the grantee certifies''.
    1983--Subsec. (b)(6). Pub. L. 98-181, Sec. 106(a), added par. (6).
    Subsec. (c)(1)(B). Pub. L. 98-181, Sec. 106(b), substituted ``a city 
or county against whom any such action was taken in a fiscal year shall 
be excluded from a calculation of share for purposes of reallocating in 
the succeeding year,'' for ``the city or county against whom any such 
action was taken shall be excluded from the calculation of shares for 
purposes of reallocating''.
    Subsec. (c)(3). Pub. L. 98-181, Sec. 106(c), added par. (3).
    Subsec. (d)(2)(A). Pub. L. 98-181, Sec. 106(d)(1), substituted ``a 
State that has elected, in such manner and at such time as the Secretary 
shall prescribe'' for ``the State'' in provisions preceding cl. (i), and 
inserted, following cl. (ii), ``Any election to distribute funds made 
after the close of fiscal year 1984 is permanent and final.''
    Subsec. (d)(2)(B). Pub. L. 98-181, Sec. 106(d)(2), substituted 
provisions requiring the Secretary to distribute amounts allocated under 
par. (1) if the State has not elected to distribute such amounts, for 
provisions which required the Secretary to distribute such amounts where 
the State had elected, in such manner and before such time as prescribed 
by the Secretary, not to distribute such amounts, or the State had 
failed to submit the certifications described in subpar. (C).
    Subsec. (d)(2)(C)(iii). Pub. L. 98-181, Sec. 106(e), amended cl. 
(iii) generally, substituting provisions requiring certification by the 
Governor that the State will not refuse to distribute funds to any local 
government unit on the basis of the particular activity selected to meet 
its community development needs, except that a State may establish 
priorities in distributing such amounts, for provisions requiring the 
Governor to certify that the State would provide funds for community 
development activities in an amount of at least 10 per centum of the 
amounts allocated for use in the State pursuant to par. (1).
    Subsec. (d)(2)(D). Pub. L. 98-181, Sec. 106(f), added subpar. (D).
    Subsec. (d)(3)(A). Pub. L. 98-181, Sec. 106(g), substituted 
provisions that the State may deduct an amount to cover such expenses 
not to exceed the sum of $102,000 plus 50 percent of any such expenses 
in excess of $100,000, and that the amounts deducted in excess of 
$100,000 shall not exceed 2 percent of the amount so received, for 
provisions that the State could deduct an amount not to exceed 50 per 
centum of the costs incurred by the State in carrying out such 
responsibilities, and that amounts so deducted could not exceed 2 per 
centum of the amount so received.
    Subsec. (d)(3)(C), (D). Pub. L. 98-181, Sec. 106(h), amended subpar. 
(C) generally, substituting provisions requiring that amounts which are 
to be reallocated because of failure to meet requirements of section 
5304(a), (b) of this title or because of action under section 5304(d) or 
5311 of this title be added to amounts allocated to all States for the 
succeeding fiscal year for provisions that amounts reallocated because 
of action under section 5304(d) or section 5311 of this title were to be 
added to amounts available for distribution in the State in the same 
fiscal year, in the case of actions against units of general local 
government, or to amounts available for distribution in the succeeding 
fiscal year, in the case of action against the State, and struck out 
provision for distribution of such funds by either the State or the 
Secretary and adding subpar. (D).
    Subsec. (d)(5), (6). Pub. L. 98-181, Sec. 106(i), added pars. (5) 
and (6).
    Subsec. (f). Pub. L. 98-181, Sec. 106(j), amended subsec. (f) 
generally, substituting provisions for pro rata reduction of all amounts 
determined under subsec. (b) in the event of a deficiency for provisions 
for reduction of all basic grant entitlement funds provided pursuant to 
this section in the event of a deficiency, and inserted provision for 
distribution of excess amounts.
    1981--Subsec. (a). Pub. L. 97-35, Sec. 304(a), substituted 
provisions relating to amounts allocated to metropolitan areas and urban 
counties and limitations on amount of annual grants for provisions 
relating to amounts allocated to metropolitan areas, annual grants for 
metropolitan cities and urban counties, and limitations.
    Subsec. (b)(4). Pub. L. 97-35, Sec. 309(h), substituted provision 
respecting assistance under subsec. (d) of this section for provision 
respecting grants under subsec. (c) or (e) of this section.
    Subsec. (c). Pub. L. 97-35, Sec. 304(b), (c), redesignated subsec. 
(d) as (c) and substituted provisions relating to reallocation of 
undistributed funds within same metropolitan area as original 
allocation, for provisions relating to reallocation of amounts allocated 
to metropolitan cities, urban counties, and metropolitan areas for use 
by States, metropolitan cities, etc. Former subsec. (c), which related 
to additional allocations of amount allocated to metropolitan areas and 
added amounts for grants for metropolitan cities, urban counties, 
specified units of general local government, and States, was struck out.
    Subsec. (d). Pub. L. 97-35, Sec. 304(b), (d), (e), redesignated 
subsec. (e) as (d) and substituted provisions relating to allocation 
among nonentitlement areas, amount and calculation of grants, 
distributions, certifications, etc., for provisions relating to amounts 
allocated to units of general local government of metropolitan areas and 
States, calculations, multiyear commitments, annual grants, reallocation 
of amounts to nonmetropolitan areas of other States, and review by 
Secretary. Former subsec. (d) redesignated (c).
    Subsec. (e). Pub. L. 97-35, Sec. 304(b), redesignated subsec. (f) as 
(e). Former subsec. (e) redesignated (d).
    Subsecs. (f), (g). Pub. L. 97-35, Sec. 304(b), (f), redesignated 
subsec. (g) as (f) and substituted ``all basic grant entitlement 
amounts'' for ``(1) all basic grant entitlement amounts, and (2) funds 
available under subsection (c) of this section (including amounts 
provided for use under section 5303(a)(2) of this title) and subsection 
(e) of this section''. Former subsec. (f) redesignated (e).
    1980--Subsec. (a). Pub. L. 96-399, Sec. 111(e), substituted 
``subsection (d) of this section'' for ``subsections (c) and (e) of this 
section'', struck out ``aggregate'' after ``allocation in an'', ``the 
greater of'' after ``not exceeding'', and ``or its hold-harmless amount 
computed pursuant to subsection (g) of this section'' after ``subsection 
(b) of this section''.
    Subsec. (b)(4). Pub. L. 96-399, Sec. 103, substituted ``the 
populations of which are not counted in determining the eligibility of 
the urban county to receive a grant under this subsection, except that 
there shall be included any independent city (as defined by the Bureau 
of the Census) which--'' for ``(A) which are entitled to hold-harmless 
grants pursuant to subsection (h) of this section, or (B) the 
populations of which are not counted in determining the eligibility of 
the urban county to receive a grant under this subsection'', and added 
subpars. (A) to (E) and provision following subpar. (E).
    Subsec. (c). Pub. L. 96-399, Sec. 111(d), (f), redesignated former 
subsec. (d) as (c) and struck out in par. (1) ``allocated by the 
Secretary, first, for grants to metropolitan cities, urban counties, and 
other units of general local government within metropolitan areas to 
meet their hold-harmless needs as determined under subsections (g) and 
(h), and second, in accordance with the provisions of paragraph (2)'' 
after ``section 5303(a)(2) of this title'', struck out ``(2) Any portion 
of such amounts which remains after applying the provision of paragraph 
(1) shall be'' before ``utilized by the Secretary'', redesignated former 
par. (3) as (2) and in par. (2) as so redesignated, substituted 
``paragraph (1)'' for ``paragraph (2)'' wherever appearing, struck out 
``In determining whether to make such a commitment to a unit of general 
local government, the Secretary shall give special consideration to 
those communities presently carrying out comprehensive community 
development programs which are subject to the provisions of subsection 
(h)(2), before making new commitments.'' after ``availability of 
appropriations.'', and substituted ``and Indian tribes'' for ``Indian 
tribes, and units of general local government which are entitled to 
hold-harmless grants pursuant to subsection (h) of this section''. 
Former subsec. (c), relating to adjustment of amounts for metropolitan 
cities and urban counties, was struck out.
    Subsec. (d). Pub. L. 96-399, Secs. 111(d), 112, redesignated former 
subsec. (e) as (d) and inserted provisions relating to preferences for 
units of general local government in the same metropolitan area. Former 
subsec. (d) redesignated (c).
    Subsec. (e). Pub. L. 96-399, Sec. 111(d), (g), redesignated former 
subsec. (f) as (e) and in par. (1) struck out ``allocated by the 
Secretary--(A) first, for grants to units of general local government 
outside of metropolitan areas to meet their hold-harmless needs as 
determined under subsection (h) of this section; and (B) second, any 
portion of such amount which remains after applying the provisions of 
subparagraph (A) shall be'' after ``20 per centum shall be'', 
redesignated former cls. (1)(B)(i) and (ii) as (1)(A) and (B), 
respectively, redesignated former subcls. (1)(B)(i)(I) to (III) and 
(1)(B)(ii)(I) to (III) as (1)(A)(i) to (iii) and (1)(B)(i) to (iii), 
respectively, substituted ``subparagraph (A)'' for ``clause (i) of 
subparagraph (B)'' and ``subparagraph (B)'' for ``clause (ii) of 
subparagraph (B)'', substituted ``allocated under this paragraph'' for 
``allocated under subparagraph (B)'', substituted ``such paragraph'' for 
``such subparagraph'' wherever appearing, in par. (2) struck out ``In 
determining whether to make such a commitment to a unit of general local 
government, the Secretary shall give special consideration to those 
communities presently carrying out comprehensive community development 
programs, which are subject to the provisions of subsection (h)(2) of 
this section, before making new commitments.'' after ``availability of 
appropriations.'', substituted ``paragraph (1)'' for ``paragraph 
(1)(B)'' wherever appearing, struck out ``units of general local 
government which are entitled to hold-harmless grants pursuant to 
subsection (h) of this section and'' after ``shall be excluded'', and in 
par. (3) substituted ``paragraph (1)'' for ``paragraph (1)(B)''. Former 
subsec. (e) was redesignated as (d).
    Subsec. (f). Pub. L. 96-399, Sec. 111(d), redesignated subsec. (k) 
as (f). Former subsec. (f) redesignated (e).
    Subsec. (g). Pub. L. 96-399, Secs. 102, 111(d), redesignated subsec. 
(m) as (g) and substituted ``any fiscal year'' for ``fiscal year 1978, 
fiscal year 1979, or fiscal year 1980'', struck out ``and hold-
harmless'' after ``all basic grant'' in two places, and substituted 
``subsection (c)'' for ``subsection (d)(2)'' and ``subsection (e)'' for 
``subsection (f)(1)(B)''. Former subsec. (g), relating to hold-harmless 
amounts for metropolitan cities and urban counties, was struck out.
    Subsec. (h). Pub. L. 96-399, Sec. 111(d), struck out subsec. (h) 
which related to hold-harmless grants to units of general local 
government not metropolitan cities or urban counties.
    Subsec. (i). Pub. L. 96-399, Sec. 111(d), struck out subsec. (i) 
which related to percentages excluded from data in computation of hold-
harmless grants for units of general local government.
    Subsec. (j). Pub. L. 96-399, Sec. 111(d), struck out subsec. (j) 
which related to waiver of eligibility by units of general local 
government for hold-harmless grants.
    Subsec. (k). Pub. L. 96-399, Sec. 111(d), redesignated subsec. (k) 
as (f).
    Subsec. (l). Pub. L. 96-399, Sec. 111(d), struck out subsec. (l) 
which related to reports to Congress with respect to adequacy and 
effectiveness of formula for allocation of funds.
    Subsec. (m). Pub. L. 96-399, Sec. 111(d), redesignated subsec. (m) 
as (g).
    1979--Subsec. (b)(5). Pub. L. 96-153, Sec. 103(e), added par. (5).
    Subsec. (m). Pub. L. 96-153, Sec. 103(d), inserted reference to 
fiscal year 1980.
    1977--Subsec. (a). Pub. L. 95-128, Sec. 106(a), substituted in 
second sentence reference to pars. ``(1) or (2)'' for pars. ``(2) or 
(3)'' of subsec. (b) of this section.
    Subsec. (b)(1). Pub. L. 95-128, Sec. 106(b), added par. (1), and 
struck out former par. (1) provisions stating that ``The Secretary shall 
determine the amount to be allocated to all metropolitan cities which 
shall be an amount that bears the same ratio to the allocation for all 
metropolitan areas as the average of the ratios between--
        ``(A) the population of all metropolitan cities and the 
    population of all metropolitan areas;
        ``(B) the extent of poverty in all metropolitan cities and the 
    extent of poverty in all metropolitan areas; and
        ``(C) the extent of housing overcrowding in all metropolitan 
    cities and the extent of housing overcrowding in all metropolitan 
    areas.'', now incorporated in this paragraph.
    Subsec. (b)(2). Pub. L. 95-128, Sec. 106(b), added par. (2) and 
struck out former par. (2) provisions declaring that ``From the amount 
allocated to all metropolitan cities the Secretary shall determine for 
each metropolitan city a basic grant amount which shall equal an amount 
that bears the same ratio to the allocation for all metropolitan cities 
as the average of the ratios between--
        ``(A) the population of that city and the population of all 
    metropolitan cities;
        ``(B) the extent of poverty in that city and the extent of 
    poverty in all metropolitan cities; and
        ``(C) the extent of housing overcrowding in that city and the 
    extent of housing overcrowding in all metropolitan cities.'', now 
    incorporated in subsec. (b)(1) of this section.
    Subsec. (b)(3). Pub. L. 95-128, Sec. 106(b), added par. (3) and 
struck out former par. (3) provisions for determination of basic grant 
amount of each urban county, now covered in subsec. (b)(2) of this 
section and formerly providing that ``The Secretary shall determine the 
basic grant amount of each urban county by--
        ``(A) calculating the total amount that would have been 
    allocated to metropolitan cities and urban counties together under 
    paragraph (1) of this subsection if data pertaining to the 
    population, extent of poverty, and extent of housing overcrowding in 
    all urban counties were included in the numerator of each of the 
    fractions described in such paragraph; and
        ``(B) determining for each county the amount which bears the 
    same ratio to the total amount calculated under subparagraph (A) of 
    this paragraph as the average of the ratios between--
            ``(i) the population of that urban county and the population 
        of all metropolitan cities and urban counties;
            ``(ii) the extent of poverty in that urban county and the 
        extent of poverty in all metropolitan cities and urban counties; 
        and
            ``(iii) the extent of housing overcrowding in that urban 
        county and the extent of housing overcrowding in all 
        metropolitan cities and urban counties.''
    Subsec. (b)(4), (5). Pub. L. 95-128, Sec. 106(b), (c), struck out 
par. ``(4) In determining the average of ratios under paragraphs (1), 
(2), and (3), the ratio involving the extent of poverty shall be counted 
twice.'', now incorporated in par. (3), redesignated par. (5) as (4), 
and substituted ``are entitled to'' for ``receive''.
    Subsec. (c). Pub. L. 95-128, Sec. 106(d), in first sentence, 
substituted ``With respect to funds approved for distribution to a 
metropolitan city or urban county under this section during fiscal years 
1975, 1976, and 1977'' for ``During the first three years for which 
funds are approved for distribution to a metropolitan city or urban 
county under this section'' and inserted ``only for such funds approved 
for distribution in fiscal years 1975, 1976, and 1977'' after 
``adjusted''.
    Subsec. (d). Pub. L. 95-128, Sec. 106(e), incorporated existing 
introductory text and provisions of former par. (1) in provisions now 
designated par. (1); added par. (2), incorporating provisions of former 
par. (2) respecting additional allocations by the Secretary ``for grants 
to units of general local government (other than metropolitan cities and 
urban counties) and States for use in metropolitan areas, allocating for 
each such metropolitan area an amount which bears the same ratio to the 
allocation for all metropolitan areas available under this paragraph as 
the average of the ratios between--
        ``(A) the population of that metropolitan area and the 
    population of all metropolitan areas,
        ``(B) the extent of poverty in that metropolitan area and the 
    extent of poverty in all metropolitan areas, and
        ``(C) the extent of housing overcrowding in that metropolitan 
    area and the extent of housing overcrowding in all metropolitan 
    areas.'' and declaring that ``In determining the average of ratios 
    under paragraph (2), the ratio involving the extent of poverty shall 
    be counted twice''; struck out end clause providing that ``in 
    computing amounts under such paragraph there shall be excluded any 
    metropolitan cities, urban counties, and units of general local 
    government which receive hold-harmless grants pursuant to subsection 
    (h) of this section'', now constituting last sentence of par. (3); 
    and added par. (3) provisions.
    Subsec. (e). Pub. L. 95-128, Sec. 106(f), in first sentence, 
substituted ``within a reasonable time'' for ``during such program 
period'' and struck out ``during the same period'' after ``shall be 
reallocated''.
    Subsec. (f)(1). Pub. L. 95-128, Sec. 106(g)(1), inserted in subpar. 
(B) ``any portion of such amount which remains after applying the 
provisions of subparagraph (A) shall be utilized by the Secretary'' 
after ``second,'' and ``the greater of'' before ``an amount''; reenacted 
existing provisions in cl. (i); added cl. (ii); inserted provision 
respecting determination of average of ratios under cl. (ii) of subpar. 
(B) and provision for pro rata reduction, to compensate for the 
discrepancy between the total of the amounts to be allocated under 
subpar. (B) and the total of the amounts available under such 
subparagraph, of each amount allocated to the nonmetropolitan areas in 
each State under such subparagraph; and struck out end clause providing 
that in computing amounts under such subpar. (B) there shall be excluded 
units of general local government which receive hold-harmless grants 
pursuant to subsec. (h) of this section, now constituting end sentence 
of subsec. (f)(2) of this section.
    Subsec. (f)(2). Pub. L. 95-128, Sec. 106(g)(1), (2), added par. (2) 
and redesignated former par. (2) as (3).
    Subsec. (f)(3). Pub. L. 95-128, Sec. 106(g)(2)-(4), redesignated 
former par. (2) as (3), substituted ``within a reasonable time'' for 
``during such period'', and struck out ``during the same period'' after 
``as soon as practicable''.
    Subsec. (g)(2). Pub. L. 95-128, Sec. 106(h), substituted reference 
to ``subsection (b)(1)(A) or (B), or (2)(A) or (B) of this section'' for 
``subsection (b)(2) or (3) of this section'' and inserted in cls. (i) 
and (ii) ``, as computed under subsection (b)(1)(A) or (B), or (2)(A) or 
(B) of this section,'' before ``shall''.
    Subsec. (i). Pub. L. 95-128, Sec. 106(i), struck out ``population, 
poverty, and housing overcrowding'' before ``data'' and substituted 
``are entitled to'' for ``receive'' and reference to subsec. (b)(4) for 
(b)(5) of this section.
    Subsec. (j). Pub. L. 95-128, Sec. 106(j), substituted ``by such date 
as the Secretary shall determine'' for ``not later than thirty days 
prior to the beginning of any program period'' and reference to subsec. 
(b)(4) for (b)(5) of this section and inserted ``for a hold-harmless 
grant for a single year'' after ``eligibility''.
    Subsec. (l). Pub. L. 95-128, Sec. 106(k), substituted provisions for 
submission of a report to Congress not later than Sept. 30, 1978, 
respecting adequacy of funds allocation formula and defining 
``impaction'' for prior requirement of a report to Congress not later 
than Mar. 31, 1977, setting forth recommendations to further purposes 
and policies of this chapter, for modifying or expanding the provisions 
of this section relating to the method of funding and the allocation of 
funds and the determination of basic grant entitlement, and for 
application of the provisions in the further distribution of funds under 
this chapter and the conduct of a study by the Secretary respecting 
manner of distributing funds under this chapter in accordance with 
community development needs, objectives, and capacities, measured to the 
maximum extent feasible by objective standards.
    Subsec. (m). Pub. L. 95-128, Sec. 106(l), added subsec. (m).


                    Effective Date of 1990 Amendment

    Section 913(f) of Pub. L. 101-625 provided that:
    ``(1) In general.--Except as provided in paragraph (2), the 
amendments made by this section [amending this section and sections 5301 
and 5307 of this title] shall apply to amounts approved in any 
appropriation Act under section 103 of the Housing and Community 
Development Act of 1974 [section 5303 of this title] for fiscal year 
1990 and each fiscal year thereafter.
    ``(2) Grants in fiscal year 1990.--The Secretary of Housing and 
Urban Development may make grants to Indian tribes pursuant to the 
amendments made by this section with any amounts approved in any 
appropriation Act under section 103 for fiscal year 1990 for grants to 
Indian tribes, and the first sentence of section 106(a)(1) of the 
Housing and Community Development Act of 1974 [subsec. (a)(1) of this 
section] (as amended by this Act) shall not apply to such grants.''


                    Effective Date of 1989 Amendment

    Section 702(e) of Pub. L. 101-235, as amended by Pub. L. 101-625, 
title IX, Sec. 913(e), Nov. 28, 1990, 104 Stat. 4393, provided that: 
``The amendments made by this section [amending this section and section 
5302 of this title] shall apply to amounts approved in any appropriation 
Act under section 103 of the Housing and Community Development Act of 
1974 [section 5303 of this title] for fiscal year 1990 and each fiscal 
year thereafter.''


                    Effective Date of 1983 Amendment

    Amendment by Pub. L. 98-181 applicable only to funds available for 
fiscal year 1984 and thereafter, see section 110(b) of Pub. L. 98-181, 
as amended, set out as a note under section 5316 of this title.


                    Effective Date of 1981 Amendment

    Amendment by Pub. L. 97-35 effective Oct. 1, 1981, see section 371 
of Pub. L. 97-35, set out as an Effective Date note under section 3701 
of Title 12, Banks and Banking.


                    Effective Date of 1977 Amendment

    Amendment by Pub. L. 95-128 effective Oct. 1, 1977, see section 114 
of Pub. L. 95-128, set out as a note under section 5301 of this title.


                               Regulations

    Section 702(d) of Pub. L. 101-235 provided that: ``The Secretary 
shall issue any regulations necessary to carry out this section and the 
amendments made by this section [amending this section and section 5302 
of this title and enacting provisions set out as notes above] in a 
manner and by such time to provide for the effectiveness of such 
regulations with respect to amounts appropriated for fiscal year 1991 
under section 103 of the Housing and Community Development Act of 1974 
[section 5303 of this title].''


                         Transitional Provisions

    Section 307 of Pub. L. 97-35 provided that:
    ``(a) Any amounts appropriated for any fiscal year before fiscal 
year 1982 in a Department of Housing and Urban Development--Independent 
Agencies Appropriation Act or a Supplemental Appropriation Act under the 
head `community development grants' which are or become available for 
obligation on or after October 1, 1981, shall remain available as 
provided by law, and shall be used in accordance with the following:
        ``(1) funds authorized for use under section 106(b) [subsec. (b) 
    of this section] of the Housing and Community Development Act of 
    1974 (`such Act') before October 1, 1981, shall be available for use 
    as provided by section 106(c) of such Act as amended by this Act 
    [subsec. (c) of this section];
        ``(2) funds authorized for use under section 107 of such Act 
    [section 5307 of this title] before October 1, 1981, shall be 
    available for use as provided by section 107(a) of such Act as 
    amended by this Act [section 5307(a) of this title]; and
        ``(3) funds authorized for use under section 106(c) or (e) of 
    such Act [subsec. (c) or (e) of this section] before October 1, 
    1981, shall be available for use as provided by section 106(d)(2)(A) 
    of such Act as amended by this Act [subsec. (d)(2)(A) of this 
    section].
    ``(b) Any grant or loan which, prior to the effective date of any 
provision of this part [see Effective Date note set out under section 
3701 of Title 12, Banks and Banking], was obligated and governed by any 
authority amended by any provision of this part [Pub. L. 97-35, title 
III, Secs. 301-315, Aug. 13, 1981, 95 Stat. 384-398] shall continue to 
be governed by the provisions of such authority as they existed 
immediately before such effective date.''


         CDBG Assistance for United States-Mexico Border Region

    Pub. L. 104-134, title I, Sec. 101(e) [title II], Apr. 26, 1996, 110 
Stat. 1321-257, 1321-272; renumbered title I, Pub. L. 104-140, 
Sec. 1(a), May 2, 1996, 110 Stat. 1327, provided in part: ``That section 
916 of the Cranston-Gonzalez National Affordable Housing Act [set out 
below] shall apply with respect to fiscal year 1996, notwithstanding 
section 916(f) of that Act.''
    Section 916 of Pub. L. 101-625, as amended by Pub. L. 102-550, title 
VIII, Sec. 810, Oct. 28, 1992, 106 Stat. 3850; Pub. L. 104-204, title 
II, Sept. 26, 1996, 110 Stat. 2887, provided that:
    ``(a) Set-Aside for Colonias.--The States of Arizona, California, 
New Mexico, and Texas shall each make available, for activities designed 
to meet the needs of the residents of colonias in the State relating to 
water, sewage, and housing, the following percentage of the amount 
allocated for the State under section 106(d) of the Housing and 
Community Development Act of 1974 (42 U.S.C. 5306(d)):
        ``(1) First fiscal year.--For the first fiscal year to which 
    this section applies, 10 percent.
        ``(2) Succeeding fiscal years.--For each of the succeeding 
    fiscal years to which this section applies, a percentage (not to 
    exceed 10 percent) that is determined by the Secretary of Housing 
    and Urban Development to be appropriate after consultation with 
    representatives of the interests of the residents of colonias.
    ``(b) Eligible Activities.--Assistance distributed pursuant to this 
section may be used only to carry out the following activities:
        ``(1) Planning.--Payment of the cost of planning community 
    development (including water and sewage facilities) and housing 
    activities, including the cost of--
            ``(A) the provision of information and technical assistance 
        to residents of the area in which the activities are to be 
        concentrated and to appropriate nonprofit organizations and 
        public agencies acting on behalf of the residents; and
            ``(B) preliminary surveys and analyses of market needs, 
        preliminary site engineering and architectural services, site 
        options, applications, mortgage commitments, legal services, and 
        obtaining construction loans.
        ``(2) Assessments for public improvements.--The payment of 
    assessments (including any charge made as a condition of obtaining 
    access) levied against properties owned and occupied by persons of 
    low and moderate income to recover the capital cost for a public 
    improvement.
        ``(3) Other improvements.--Other activities eligible under 
    section 105 of the Housing and Community Development Act of 1974 [42 
    U.S.C. 5305] designed to meet the needs of residents of colonias.
    ``(c) Distribution of Assistance.--Assistance shall be made 
available pursuant to this section in accordance with a distribution 
plan that gives priority to colonias having the greatest need for such 
assistance.
    ``(d) Applicable Law.--Except to the extent inconsistent with this 
section, assistance provided pursuant to this section shall be subject 
to the provisions of title I of the Housing and Community Development 
Act of 1974 (42 U.S.C. 5301 et seq.).
    ``(e) Definitions.--For purposes of this section:
        ``(1) Colonia.--The term `colonia' means any identifiable 
    community that--
            ``(A) is in the State of Arizona, California, New Mexico, or 
        Texas;
            ``(B) is in the United States-Mexico border region;
            ``(C) is determined to be a colonia on the basis of 
        objective criteria, including lack of potable water supply, lack 
        of adequate sewage systems, and lack of decent, safe, and 
        sanitary housing; and
            ``(D) was in existence as a colonia before the date of the 
        enactment of the Cranston-Gonzalez National Affordable Housing 
        Act [Nov. 28, 1990].
        ``(2) Nonprofit organization.--The term `nonprofit organization' 
    means an organization described in section 501(c) of the Internal 
    Revenue Code of 1986 [26 U.S.C. 501(c)] and exempt from taxation 
    under section 501(a) of such Code.
        ``(3) Persons of low and moderate income.--The term `persons of 
    low and moderate income' has the meaning given the term in section 
    102(a) of the Housing and Community Development Act of 1974 (42 
    U.S.C. 5302(a)).
        ``(4) United states-mexico border region.--The term `United 
    States-Mexico border region' means the area of the United States 
    within 150 miles of the border between the United States and Mexico, 
    except that the term does not include any standard metropolitan 
    statistical area that has a population exceeding 1,000,000.''


               Office of Indian and Alaska Native Programs

    Section 702(c) of Pub. L. 101-235, which required Secretary of 
Housing and Urban Development to administer grants to Indian tribes 
under this chapter through the Office of Indian and Alaska Native 
Programs of the Department of Housing and Urban Development, was 
repealed by Pub. L. 101-625, title IX, Sec. 913(d), Nov. 28, 1990, 104 
Stat. 4393.

                  Section Referred to in Other Sections

    This section is referred to in sections 1437aaa-2, 5301, 5302, 5303, 
5304, 5305, 5307, 5308, 5312, 5321, 11373, 12705, 12750, 12873, 12893, 
12899c of this title; title 26 section 42.
