42 U.S.C. § 5304 : US Code - Section 5304: Statement of activities and review

Search 42 U.S.C. § 5304 : US Code - Section 5304: Statement of activities and review

(a) Statement of objectives and projected use of funds by grantee
prerequisite to receipt of grant; publication of proposals by
grantees; notice and comment; citizen participation plan
(1) Prior to the receipt in any fiscal year of a grant under
section 5306(b) of this title by any metropolitan city or urban
county, under section 5306(d) of this title by any State, under
section 5306(d)(2)(B) of this title by any unit of general local
government, or under section 5306(a)(3) of this title by any
insular area, the grantee shall have prepared a final statement of
community development objectives and projected use of funds and
shall have provided the Secretary with the certifications required
in subsection (b) of this section and, where appropriate,
subsection (c) of this section. In the case of metropolitan cities
and urban counties receiving grants pursuant to section 5306(b) of
this title, units of general local government receiving grants
pursuant to section 5306(d)(2)(B) of this title, and insular areas
receiving grants pursuant to section 5306(a)(3) of this title, the
statement of projected use of funds shall consist of proposed
community development activities. In the case of States receiving
grants pursuant to section 5306(d) of this title, the statement of
projected use of funds shall consist of the method by which the
States will distribute funds to units of general local government.
(2) In order to permit public examination and appraisal of such
statements, to enhance the public accountability of grantees, and
to facilitate coordination of activities with different levels of
government, the grantee shall in a timely manner -
(A) furnish citizens or, as appropriate, units of general local
government information concerning the amount of funds available
for proposed community development and housing activities and the
range of activities that may be undertaken, including the
estimated amount proposed to be used for activities that will
benefit persons of low and moderate income and the plans of the
grantee for minimizing displacement of persons as a result of
activities assisted with such funds and to assist persons
actually displaced as a result of such activities;
(B) publish a proposed statement in such manner to afford
affected citizens or, as appropriate, units of general local
government an opportunity to examine its content and to submit
comments on the proposed statement and on the community
development performance of the grantee;
(C) hold one or more public hearings to obtain the views of
citizens on community development and housing needs;
(D) provide citizens or, as appropriate, units of general local
government with reasonable access to records regarding the past
use of funds received under section 5306 of this title by the
grantee; and
(E) provide citizens or, as appropriate, units of general local
government with reasonable notice of, and opportunity to comment
on, any substantial change proposed to be made in the use of
funds received under section 5306 of this title from one eligible
activity to another or in the method of distribution of such
funds.
In preparing the final statement, the grantee shall consider any
such comments and views and may, if deemed appropriate by the
grantee, modify the proposed statement. The final statement shall
be made available to the public, and a copy shall be furnished to
the Secretary together with the certifications required under
subsection (b) of this section and, where appropriate, subsection
(c) of this section. Any final statement of activities may be
modified or amended from time to time by the grantee in accordance
with the same procedures required in this paragraph for the
preparation and submission of such statement.
(3) A grant under section 5306 of this title may be made only if
the grantee certifies that it is following a detailed citizen
participation plan which -
(A) provides for and encourages citizen participation, with
particular emphasis on participation by persons of low and
moderate income who are residents of slum and blight areas and of
areas in which section 106 [42 U.S.C. 5306] funds are proposed to
be used, and in the case of a grantee described in section
5306(a) of this title, provides for participation of residents in
low and moderate income neighborhoods as defined by the local
jurisdiction;
(B) provides citizens with reasonable and timely access to
local meetings, information, and records relating to the
grantee's proposed use of funds, as required by regulations of
the Secretary, and relating to the actual use of funds under this
chapter;
(C) provides for technical assistance to groups representative
of persons of low and moderate income that request such
assistance in developing proposals with the level and type of
assistance to be determined by the grantee;
(D) provides for public hearings to obtain citizen views and to
respond to proposals and questions at all stages of the community
development program, including at least the development of needs,
the review of proposed activities, and review of program
performance, which hearings shall be held after adequate notice,
at times and locations convenient to potential or actual
beneficiaries, and with accommodation for the handicapped;
(E) provides for a timely written answer to written complaints
and grievances, within 15 working days where practicable; and
(F) identifies how the needs of non-English speaking residents
will be met in the case of public hearings where a significant
number of non-English speaking residents can be reasonably
expected to participate.
This paragraph may not be construed to restrict the responsibility
or authority of the grantee for the development and execution of
its community development program.
(b) Certification of enumerated criteria by grantee to Secretary
Any grant under section 5306 of this title shall be made only if
the grantee certifies to the satisfaction of the Secretary that -
(1) the grantee is in full compliance with the requirements of
subsection (a)(2)(A), (B), and (C) of this section and has made
the final statement available to the public;
(2) the grant 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 the grantee
will affirmatively further fair housing;
(3) the projected use of funds has been developed so as to give
maximum feasible priority to activities which will benefit low-
and moderate-income families or aid in the prevention or
elimination of slums or blight, and the projected use of funds
may also include activities which the grantee certifies are
designed to meet other community development needs having a
particular urgency because existing conditions pose a serious and
immediate threat to the health or welfare of the community where
other financial resources are not available to meet such needs,
except that (A) the aggregate use of funds received under section
5306 of this title and, if applicable, as a result of a guarantee
or a grant under section 5308 of this title, during a period
specified by the grantee of not more than 3 years, shall
principally benefit persons of low and moderate income in a
manner that ensures that not less than 70 percent of such funds
are used for activities that benefit such persons during such
period; and (B) a grantee that borders on the Great Lakes and
that experiences significant adverse financial and physical
effects due to lakefront erosion or flooding may include in the
projected use of funds activities that are clearly designed to
alleviate the threat posed, and rectify the damage caused, by
such erosion or flooding if such activities will principally
benefit persons of low and moderate income and the grantee
certifies that such activities are necessary to meet other needs
having a particular urgency;
(4) it has developed a community development plan pursuant to
subsection (m) of this section, for the period specified by the
grantee under paragraph (3), that identifies community
development needs and specifies both short- and long-term
community development objectives that have been developed in
accordance with the primary objective and requirements of this
chapter;
(5) the grantee will not attempt to recover any capital costs
of public improvements assisted in whole or part under section
5306 of this title 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
(A) funds received under section 5306 of this title 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 (B) for
purposes of assessing any amount against properties owned and
occupied by persons of moderate income, the grantee certifies to
the Secretary that it lacks sufficient funds received under
section 5306 of this title to comply with the requirements of
subparagraph (A); and
(6) the grantee will comply with the other provisions of this
chapter and with other applicable laws.
(c) Special certifications required for certain grants
A grant may be made under section 5306(b) of this title only if
the unit of general local government certifies that it is following
-
(1) a current housing affordability strategy which has been
approved by the Secretary in accordance with section 12705 of
this title, or
(2) a housing assistance plan which was approved by the
Secretary during the 180-day period beginning on November 28,
1990, or during such longer period as may be prescribed by the
Secretary in any case for good cause.
(d) Residential antidisplacement and relocation assistance plan;
certification of adherence; contents
(1) A grant under section 5306 or 5318 of this title may be made
only if the grantee certifies that it is following a residential
antidisplacement and relocation assistance plan. A grantee
receiving a grant under section 5306(a) of this title or section
5318 of this title shall so certify to the Secretary. A unit of
general local government receiving amounts from a State under
section 5306(d) of this title shall so certify to the State, and a
unit of general local government receiving amounts from the
Secretary under section 5306(d) of this title shall so certify to
the Secretary.
(2) The residential antidisplacement and relocation assistance
plan shall in connection with a development project assisted under
section 5306 or 5318 of this title -
(A) in the event of such displacement, provide that -
(i) governmental agencies or private developers shall provide
within the same community comparable replacement dwellings for
the same number of occupants as could have been housed in the
occupied and vacant occupiable low and moderate income dwelling
units demolished or converted to a use other than for housing
for low and moderate income persons, and provide that such
replacement housing may include existing housing assisted with
project based assistance provided under section 1437f of this
title;
(ii) such comparable replacement dwellings shall be designed
to remain affordable to persons of low and moderate income for
10 years from the time of initial occupancy;
(iii) relocation benefits shall be provided for all low or
moderate income persons who occupied housing demolished or
converted to a use other than for low or moderate income
housing, including reimbursement for actual and reasonable
moving expenses, security deposits, credit checks, and other
moving-related expenses, including any interim living costs;
and in the case of displaced persons of low and moderate
income, provide either -
(I) compensation sufficient to ensure that, for a 5-year
period, the displaced families shall not bear, after
relocation, a ratio of shelter costs to income that exceeds
30 percent; or
(II) if elected by a family, a lump-sum payment equal to
the capitalized value of the benefits available under
subclause (I) to permit the household to secure participation
in a housing cooperative or mutual housing association; and
(iv) persons displaced shall be relocated into comparable
replacement housing that is -
(I) decent, safe, and sanitary;
(II) adequate in size to accommodate the occupants;
(III) functionally equivalent; and
(IV) in an area not subject to unreasonably adverse
environmental conditions;
(B) provide that persons displaced shall have the right to
elect, as an alternative to the benefits under this subsection,
to receive benefits under the Uniform Relocation Assistance and
Real Property Acquisition Policies Act of 1970 (42 U.S.C. 4601 et
seq.) if such persons determine that it is in their best interest
to do so; and
(C) provide that where a claim for assistance under
subparagraph (A)(iv) is denied by a grantee, the claimant may
appeal to the Secretary in the case of a grant under section 5306
or 5318 of this title or to the appropriate State official in the
case of a grant under section 5306(d) of this title, and that the
decision of the Secretary or the State official shall be final
unless a court determines the decision was arbitrary and
capricious.
(3) Paragraphs (2)(A)(i) and (2)(A)(ii) shall not apply in any
case in which the Secretary finds, on the basis of objective data,
that there is available in the area an adequate supply of habitable
affordable housing for low and moderate income persons. A
determination under this paragraph is final and nonreviewable.
(e) Submission of performance and evaluation report by grantee to
Secretary; contents; availability for citizen comment; annual
review and audit by Secretary of program implementation;
adjustments in amount of annual grants
Each grantee shall submit to the Secretary, at a time determined
by the Secretary, a performance and evaluation report concerning
the use of funds made available under section 5306 of this title,
together with an assessment by the grantee of the relationship of
such use to the objectives identified in the grantee's statement
under subsection (a) of this section and to the requirements of
subsection (b)(3) of this section. Such report shall also be made
available to the citizens in each grantee's jurisdiction in
sufficient time to permit such citizens to comment on such report
prior to its submission, and in such manner and at such times as
the grantee may determine. The grantee's report shall indicate its
programmatic accomplishments, the nature of and reasons for changes
in the grantee's program objectives, indications of how the grantee
would change its programs as a result of its experiences, and an
evaluation of the extent to which its funds were used for
activities that benefited low- and moderate-income persons. The
report shall include a summary of any comments received by the
grantee from citizens in its jurisdiction respecting its program.
The Secretary shall encourage and assist national associations of
grantees eligible under section 5306(d)(2)(B) of this title,
national associations of States, and national associations of units
of general local government in nonentitlement areas to develop and
recommend to the Secretary, within one year after November 30,
1983, uniform recordkeeping, performance reporting, and evaluation
reporting, and auditing requirements for such grantees, States, and
units of general local government, respectively. Based on the
Secretary's approval of these recommendations, the Secretary shall
establish such requirements for use by such grantees, States, and
units of general local government. The Secretary shall, at least on
an annual basis, make such reviews and audits as may be necessary
or appropriate to determine -
(1) in the case of grants made under subsection (a)(3), (b), or
(d)(2)(B) of section 5306 of this title, whether the grantee has
carried out its activities and, where applicable, its housing
assistance plan in a timely manner, whether the grantee has
carried out those activities and its certifications in accordance
with the requirements and the primary objectives of this chapter
and with other applicable laws, and whether the grantee has a
continuing capacity to carry out those activities in a timely
manner; and
(2) in the case of grants to States made under section 5306(d)
of this title, whether the State has distributed funds to units
of general local government in a timely manner and in conformance
to the method of distribution described in its statement, whether
the State has carried out its certifications in compliance with
the requirements of this chapter and other applicable laws, and
whether the State has made such reviews and audits of the units
of general local government as may be necessary or appropriate to
determine whether they have satisfied the applicable performance
criteria described in paragraph (1) of this subsection.
The Secretary may make appropriate adjustments in the amount of the
annual grants in accordance with the Secretary's findings under
this subsection. With respect to assistance made available to units
of general local government under section 5306(d) of this title,
the Secretary may adjust, reduce, or withdraw such assistance, or
take other action as appropriate in accordance with the Secretary's
reviews and audits under this subsection, except that funds already
expended on eligible activities under this chapter shall not be
recaptured or deducted from future assistance to such units of
general local government.
(f) Audit of grantees by Government Accountability Office; access
to books, accounts, records, etc., by representatives of
Government Accountability Office
Insofar as they relate to funds provided under this chapter, the
financial transactions of recipients of such funds may be audited
by the Government Accountability Office under such rules and
regulations as may be prescribed by the Comptroller General of the
United States. The representatives of the Government Accountability
Office shall have access to all books, accounts, records, reports,
files, and other papers, things, or property belonging to or in use
by such recipients pertaining to such financial transactions and
necessary to facilitate the audit.
(g) Environmental protection measures applicable for release of
funds to applicants for projects; issuance of regulations by
Secretary subsequent to consultation with Council on
Environmental Quality; request and certification to Secretary for
approval of release of funds; form, contents and effect of
certification
(1) In order to assure that the policies of the National
Environmental Policy Act of 1969 [42 U.S.C. 4321 et seq.] and other
provisions of law which further the purposes of such Act (as
specified in regulations issued by the Secretary) are most
effectively implemented in connection with the expenditure of funds
under this chapter, and to assure to the public undiminished
protection of the environment, the Secretary, in lieu of the
environmental protection procedures otherwise applicable, may under
regulations provide for the release of funds for particular
projects to recipients of assistance under this chapter who assume
all of the responsibilities for environmental review,
decisionmaking, and action pursuant to such Act, and such other
provisions of law as the regulations of the Secretary specify, that
would apply to the Secretary were he to undertake such projects as
Federal projects. The Secretary shall issue regulations to carry
out this subsection only after consultation with the Council on
Environmental Quality.
(2) The Secretary shall approve the release of funds for projects
subject to the procedures authorized by this subsection only if, at
least fifteen days prior to such approval and prior to any
commitment of funds to such projects other than for purposes
authorized by section 5305(a)(12) of this title or for
environmental studies, the recipient of assistance under this
chapter has submitted to the Secretary a request for such release
accompanied by a certification which meets the requirements of
paragraph (3). The Secretary's approval of any such certification
shall be deemed to satisfy his responsibilities under the National
Environmental Policy Act of 1969 [42 U.S.C. 4321 et seq.] and such
other provisions of law as the regulations of the Secretary specify
insofar as those responsibilities relate to the releases of funds
for projects to be carried out pursuant thereto which are covered
by such certification.
(3) A certification under the procedures authorized by this
subsection shall -
(A) be in a form acceptable to the Secretary,
(B) be executed by the chief executive officer or other officer
of the recipient of assistance under this chapter qualified under
regulations of the Secretary,
(C) specify that the recipient of assistance under this chapter
has fully carried out its responsibilities as described under
paragraph (1) of this subsection, and
(D) specify that the certifying officer (i) consents to assume
the status of a responsible Federal official under the National
Environmental Policy Act of 1969 [42 U.S.C. 4321 et seq.] and
each provision of law specified in regulations issued by the
Secretary insofar as the provisions of such Act or other such
provision of law apply pursuant to paragraph (1) of this
subsection, and (ii) is authorized and consents on behalf of the
recipient of assistance under this chapter and himself to accept
the jurisdiction of the Federal courts for the purpose of
enforcement of his responsibilities as such an official.
(4) In the case of grants made to States pursuant to section
5306(d) of this title, the State shall perform those actions of the
Secretary described in paragraph (2) and the performance of such
actions shall be deemed to satisfy the Secretary's responsibilities
referred to in the second sentence of such paragraph.
(h) Payments; revolving loan fund: establishment in private
financial institution for rehabilitation activities; standards
for payments: criteria
(1) Units of general local government receiving assistance under
this chapter may receive funds, in one payment, in an amount not to
exceed the total amount designated in the grant (or, in the case of
a unit of general local government receiving a distribution from a
State pursuant to section 5306(d) of this title, not to exceed the
total amount of such distribution) for use in establishing a
revolving loan fund which is to be established in a private
financial institution and which is to be used to finance
rehabilitation activities assisted under this chapter.
Rehabilitation activities authorized under this section shall begin
within 45 days after receipt of such payment and substantial
disbursements from such fund must begin within 180 days after
receipt of such payment.
(2) The Secretary shall establish standards for such cash
payments which will insure that the deposits result in appropriate
benefits in support of the recipient's rehabilitation program.
These standards shall be designed to assure that the benefits to be
derived from the local program include, at a minimum, one or more
of the following elements, or such other criteria as determined by
the Secretary -
(A) leverage of community development block grant funds so that
participating financial institutions commit private funds for
loans in the rehabilitation program in amounts substantially in
excess of deposit of community development funds;
(B) commitment of private funds for rehabilitation loans at
below-market interest rates or with repayment periods lengthened
or at higher risk than would normally be taken;
(C) provision of administrative services in support of the
rehabilitation program by the participating lending institutions;
and
(D) interest earned on such cash deposits shall be used in a
manner which supports the community rehabilitation program.
(i) Metropolitan city as part of urban county
In any case in which a metropolitan city is located, in whole or
in part, within an urban county, the Secretary may, upon the joint
request of such city and county, approve the inclusion of the
metropolitan city as part of the urban county for purposes of
submitting a statement under subsection (a) of this section and
carrying out activities under this chapter.
(j) Retention of program income; condition of distribution
Notwithstanding any other provision of law, any unit of general
local government may retain any program income that is realized
from any grant made by the Secretary, or any amount distributed by
a State, under section 5306 of this title if (1) such income was
realized after the initial disbursement of the funds received by
such unit of general local government under such section; and (2)
such unit of general local government has agreed that it will
utilize the program income for eligible community development
activities in accordance with the provisions of this chapter;
except that the Secretary may, by regulation, exclude from
consideration as program income any amounts determined to be so
small that compliance with this subsection creates an unreasonable
administrative burden on the unit of general local government. A
State may require as a condition of any amount distributed by such
State under section 5306(d) of this title that a unit of general
local government shall pay to such State any such income to be used
by such State to fund additional eligible community development
activities, except that such State shall waive such condition to
the extent such income is applied to continue the activity from
which such income was derived.
(k) Provision of benefits to displaced persons
Each grantee shall provide for reasonable benefits to any person
involuntarily and permanently displaced as a result of the use of
assistance received under this chapter to acquire or substantially
rehabilitate property.
(l) Protection of individuals engaging in nonviolent civil rights
demonstrations
No funds authorized to be appropriated under section 5303 of this
title may be obligated or expended to any unit of general local
government that -
(1) fails to adopt and enforce a policy prohibiting the use of
excessive force by law enforcement agencies within its
jurisdiction against any individuals engaged in nonviolent civil
rights demonstrations; or
(2) fails to adopt and enforce a policy of enforcing applicable
State and local laws against physically barring entrance to or
exit from a facility or location which is the subject of such
nonviolent civil rights demonstration within its jurisdiction.
(m) Community development plans
(1) In general
Prior to the receipt in any fiscal year of a grant from the
Secretary under subsection (a)(2),(b), (d)(1), or (d)(2)(B) of
section 5306 of this title, each recipient shall have prepared
and submitted in accordance with this subsection and in such
standardized form as the Secretary shall, by regulation,
prescribe a description of its priority nonhousing community
development needs eligible for assistance under this chapter.
(2) Local governments
In the case of a recipient that is a unit of general local
government other than an insular area -
(A) prior to the submission required by paragraph (1), the
recipient shall, to the extent practicable, notify adjacent
units of general local government and solicit the views of
citizens on priority nonhousing community development needs;
and
(B) the description required under paragraph (1) shall be
submitted to the Secretary, the State, and any other unit of
general local government within which the recipient is located,
in such standardized form as the Secretary shall, by
regulation, prescribe.
(3) States
In the case of a recipient that is a State, the description
required by paragraph (1) -
(A) shall include only the needs within the State that affect
more than one unit of general local government and involve
activities typically funded by such States under this chapter;
and
(B) shall be submitted to the Secretary in such standard form
as the Secretary, by regulation, shall prescribe.
(4) Effect of submission
A submission under this subsection shall not be binding with
respect to the use or distribution of amounts received under
section 5306 of this title.