42 U.S.C. § 5306 : US Code - Section 5306: Allocation and distribution of funds

Search 42 U.S.C. § 5306 : US Code - Section 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 appropriation
Acts under section 5303 of this title for grants for such fiscal
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) For each fiscal year, of the amount approved in appropriation
Acts under section 5303 of this title for grants for such fiscal
year (excluding the amounts provided for use in accordance with
section 5307 of this title), the Secretary shall reserve for grants
to insular areas $7,000,000. The Secretary shall provide for
distribution of amounts under this paragraph to insular areas on
the basis of the ratio of the population of each insular area to
the population of all insular areas. In determining the
distribution of amounts to insular areas, the Secretary may also
include other statistical criteria as data become available from
the Bureau of the Census, but only if such criteria are contained
in a regulation promulgated by the Secretary after notice and
public comment.
(3) After reserving such amounts for Indian tribes under
paragraph (1) and after reserving such amounts for insular areas
under paragraph (2), the Secretary shall allocate amounts provided
for use under section 5307 of this title.
(4) Of the amount remaining after allocations pursuant to
paragraphs (1), (2), and (3), 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), (2), and (3) 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, subject to
paragraph (6), exceed 3 percent of the amount so received.
(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) From the amounts received under paragraph (1) for
distribution in nonentitlement areas, the State may deduct an
amount, subject to paragraph (6), not to exceed 3 percent of the
amount so received, to provide technical assistance to local
governments and nonprofit program recipients.
(6) Of the amounts received under paragraph (1), the State may
deduct not more than an aggregate total of 3 percent of such
amounts for -
(A) administrative expenses under paragraph (3)(A); and
(B) technical assistance under paragraph (5).
(7) 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).
(8) 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.