42 U.S.C. § 5312 : US Code - Section 5312: Use of grants for settlement of outstanding urban renewal loans of units of general local government

Search 42 U.S.C. § 5312 : US Code - Section 5312: Use of grants for settlement of outstanding urban renewal loans of units of general local government

(a) Limitation on amounts; prerequisites
The Secretary is authorized, notwithstanding any other provision
of this chapter, to apply a portion of the grants, not to exceed 20
per centum thereof without the request of the recipient, made or to
be made under section 5303 of this title in any fiscal year
pursuant to an allocation under section 5306 of this title to any
unit of general local government toward payment of the principal
of, and accrued interest on, any temporary loan made in connection
with urban renewal projects under title I of the Housing Act of
1949 [42 U.S.C. 1450 et seq.] being carried out within the
jurisdiction of such unit of general local government if -
(1) the Secretary determines, after consultation with the local
public agency carrying out the project and the chief executive of
such unit of general local government, that the project cannot be
completed without additional capital grants, or
(2) the local public agency carrying out the project submits to
the Secretary an appropriate request which is concurred in by the
governing body of such unit of general local government.
In determining the amounts to be applied to the payment of
temporary loans, the Secretary shall make an accounting for each
project taking into consideration the costs incurred or to be
incurred, the estimated proceeds upon any sale or disposition of
property, and the capital grants approved for the project.
(b) Approval by Secretary of financial settlement of urban renewal
project
Upon application by any local public agency carrying out an urban
renewal project under title I of the Housing Act of 1949 [42 U.S.C.
1450 et seq.], which application is approved by the governing body
of the unit of general local government in which the project is
located, the Secretary may approve a financial settlement of such
project if he finds that a surplus of capital grant funds after
full repayment of temporary loan indebtedness will result and may
authorize the unit of general local government to use such surplus
funds, without deduction or offset, in accordance with the
provisions of this chapter.