
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 42USC9807]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                CHAPTER 105--COMMUNITY SERVICES PROGRAMS
 
              SUBCHAPTER I--COMMUNITY ECONOMIC DEVELOPMENT
 
             Part A--Urban and Rural Special Impact Programs
 
Sec. 9807. Financial assistance requirements


(a) Conditions

    The Secretary, under such regulations as the Secretary may 
establish, shall not provide financial assistance for any community 
economic development program under this part unless the Secretary 
determines that--
        (1) such community development corporation is responsible to 
    residents of the area served (A) through a governing body not less 
    than 50 percent of the members of which are area residents; and (B) 
    in accordance with such other guidelines as may be established by 
    the Secretary, except that the composition of the governing bodies 
    of organizations owned or controlled by the community development 
    corporation need not be subject to such residency requirement;
        (2) the program will be appropriately coordinated with local 
    planning under this subchapter with housing and community 
    development programs, with employment and training programs, and 
    with other relevant planning for physical and human resources in the 
    areas served;
        (3) adequate technical assistance is made available and 
    committed to the programs being supported;
        (4) such financial assistance will materially further the 
    purposes of this part;
        (5) the applicant is fulfilling or will fulfill a need for 
    services, supplies, or facilities which is otherwise not being met;
        (6) all projects and related facilities will, to the maximum 
    feasible extent, be located in the areas served;
        (7) projects will, where feasible, promote the development of 
    entrepreneurial and management skills and the ownership or 
    participation in ownership of assisted businesses and housing, 
    cooperatively or otherwise, by residents of the area served;
        (8) projects will be planned and carried out with the fullest 
    possible participation of resident or local businessmen and 
    representatives of financial institutions, including participation 
    through contract, joint venture, partnership, stock ownership or 
    membership on the governing boards or advisory councils of such 
    projects consistent with the self-help purposes of this subchapter;
        (9) no participant will be employed on projects involving 
    political parties, or the construction, operation, or maintenance of 
    so much of any facility as is used or to be used for sectarian 
    instruction or as a place for religious worship;
        (10) the program will not result in the displacement of employed 
    workers or impair existing contracts for services, or result in the 
    substitution of Federal or other funds in connection with work that 
    would otherwise be performed;
        (11) the rates of pay for time spent in work training and 
    education, and other conditions of employment, will be appropriate 
    and reasonable in the light of such factors as the type of work, 
    geographical region, and proficiency of the participant;
        (12) the program will, to the maximum extent feasible, 
    contribute to the occupational development or upward mobility of 
    individual participants;
        (13) preference will be given to low-income or economically 
    disadvantaged residents of the areas served in filling jobs and 
    training opportunities; and
        (14) training programs carried out in connection with projects 
    financed under this part shall be designed wherever feasible to 
    provide those persons who successfully complete such training with 
    skills which are also in demand in communities, neighborhoods, or 
    rural areas other than those for which programs are established 
    under this part.

(b) Relocations substantially increasing unemployment

    Financial assistance under this section shall not be extended to 
assist in the relocation of establishments from one location to another 
if such relocation would result in a substantial increase in 
unemployment in the area of original location.

(c) Community economic development program; application; specification 
        of goals

    Financial assistance for commercial development under this part 
shall not be extended until the community economic development program 
that has applied for assistance under this subchapter has specified in 
some detail its development goals and its development timetable. The 
Secretary, in providing continued financial assistance to a community 
economic development program, shall give serious consideration to the 
experience such program has had in meeting development goals or in 
adhering to development timetables.

(Pub. L. 97-35, title VI, Sec. 618, Aug. 13, 1981, 95 Stat. 491.)

                  Section Referred to in Other Sections

    This section is referred to in section 9808 of this title.
