Notes on 42 U.S.C. § 5318 : US Code - Notes

Search Notes on 42 U.S.C. § 5318 : US Code - Notes

(Pub. L. 93-383, title I, Sec. 119, as added Pub. L. 95-128, title
I, Sec. 110(b), Oct. 12, 1977, 91 Stat. 1125; amended Pub. L. 95-
557, title I, Sec. 103(g), (h), Oct. 31, 1978, 92 Stat. 2084; Pub.
L. 96-153, title I, Secs. 104, 105, Dec. 21, 1979, 93 Stat. 1102,
1104; Pub. L. 96-399, title I, Secs. 110(a), (b), 117(a), Oct. 8,
1980, 94 Stat. 1619, 1623; Pub. L. 97-35, title III, Sec. 308(a),
Aug. 13, 1981, 95 Stat. 392; Pub. L. 98-181, title I, Sec. 121,
Nov. 30, 1983, 97 Stat. 1168; Pub. L. 98-454, title VI, Sec.
601(c), Oct. 5, 1984, 98 Stat. 1736; Pub. L. 98-479, title II, Sec.
203(l)(3), Oct. 17, 1984, 98 Stat. 2231; Pub. L. 99-272, title XIV,
Sec. 14001(b)(6), Apr. 7, 1986, 100 Stat. 329; Pub. L. 99-500, Sec.
101(g), Oct. 18, 1986, 100 Stat. 1783-242, and Pub. L. 99-591, Sec.
101(g), Oct. 30, 1986, 100 Stat. 3341-242; Pub. L. 100-202, Secs.
101(f) [title I, Sec. 101], 106, Dec. 22, 1987, 101 Stat. 1329-187,
1329-193, 1329-433; Pub. L. 100-242, title V, Secs. 501(c), 515(a)-
(d), (g)(2)-(i), 516(a), Feb. 5, 1988, 101 Stat. 1923, 1930-1934;
Pub. L. 100-404, title I, Aug. 19, 1988, 102 Stat. 1020; Pub. L.
100-628, title X, Sec. 1084, Nov. 7, 1988, 102 Stat. 3277; Pub. L.
103-233, title II, Sec. 232(b), (c)(1), Apr. 11, 1994, 108 Stat.
367.)
REFERENCES IN TEXT
For effective date of this paragraph, referred to in subsec.
(h)(5)(C)(i), see section 516(b) of Pub. L. 100-242, set out as an
Effective Date of 1988 Amendment note below.
Chapter 67 of title 31, referred to in subsec. (n)(2)(B), was
repealed by Pub. L. 99-272, title XIV, Sec. 14001(a)(1), Apr. 7,
1986, 100 Stat. 327.
CODIFICATION
Pub. L. 99-591 is a corrected version of Pub. L. 99-500.
Amendment of subsec. (n)(1) by Pub. L. 99-500 and 99-591 is based
on provisions under the headings "Management and Administration"
and "Administrative Provision" in title I of H.R. 5313 [Department
of Housing and Urban Development - Independent Agencies
Appropriations Act, 1987], as incorporated by reference by section
101(g) of Pub. L. 99-500 and 99-591, and enacted into law by
section 106 of Pub. L. 100-202.
AMENDMENTS
1994 - Subsec. (o). Pub. L. 103-233, Sec. 232(b), inserted before
period at end ", except that amounts available to the Secretary for
use under this subsection as of October 1, 1993, and amounts
released to the Secretary pursuant to subsection (t) of this
section may be used to provide grants under section 5308(q) of this
title."
Subsec. (t). Pub. L. 103-233, Sec. 232(c)(1), added subsec. (t).
1988 - Subsec. (a). Pub. L. 100-242, Sec. 501(c), substituted
"There are authorized to be appropriated to carry out this section
$225,000,000 for fiscal year 1988, and $225,000,000 for fiscal year
1989. Any amount appropriated under this subsection shall remain
available until expended." for "Of the total amount approved in
appropriation Acts under section 5303 of this title for each of the
fiscal years 1982 and 1983, not more than $500,000,000 shall be
available for each of the fiscal years 1982 and 1983 for grants
under this section. There are authorized to be appropriated to
carry out the provisions of this section not to exceed $440,000,000
for each of the fiscal years 1984, 1985, and 1986, and any amount
appropriated under this sentence shall remain available until
expended."
Subsec. (d)(1). Pub. L. 100-242, Sec. 515(a), inserted dash
before "(A)", indented subpars. (A) and (B), struck out "as the
primary criterion," in subpar. (A) and "and" at end of subpar. (B),
added subpars. (C) and (D), and struck out former subpar. (C) which
read as follows: "at least the following other criteria:
demonstrated performance of the city or urban county in housing and
community development programs; the extent to which the grant will
stimulate economic recovery by leveraging private investment; the
number of permanent jobs to be created and their relation to the
amount of grant funds requested; the proportion of permanent jobs
accessible to lower income persons and minorities, including
persons who are unemployed; the impact of the proposed activities
on the fiscal base of the city or urban county and its relation to
the amount of grant funds requested; the extent to which State or
local government funding or special economic incentives have been
committed; and the feasibility of accomplishing the proposed
activities in a timely fashion within the grant amount available."
Subsec. (d)(3) to (5). Pub. L. 100-242, Sec. 515(b), added pars.
(3) to (5).
Subsec. (d)(5)(C), (D). Pub. L. 100-404 added subpars. (C) and
(D).
Subsec. (d)(6). Pub. L. 100-242, Sec. 515(b), (g)(2), temporarily
added par. (6), see Effective Date of 1988 Amendment note below.
Subsec. (f). Pub. L. 100-628, Sec. 1084(a), substituted "5305"
for "5304" after "activities under this section or section".
Pub. L. 100-242, Sec. 515(c), inserted at end "In any case in
which the project proposes the repayment to the applicant of the
grant funds, such funds shall be made available by the applicant
for economic development activities that are eligible activities
under this section or section 5304 of this title. The applicant
shall annually provide the Secretary with a statement of the
projected receipt and use of repaid grant funds during the next
year together with a report acceptable to the Secretary on the use
of such funds during the most recent preceding full fiscal year of
the applicant."
Subsec. (h)(1). Pub. L. 100-242, Sec. 516(a)(1), (2), designated
existing provision as par. "(1) Speculative projects" and inserted
at end "The provisions of this paragraph shall apply only to
projects that do not have identified intended occupants."
Subsec. (h)(2) to (7). Pub. L. 100-242, Sec. 516(a)(3), added
pars. (2) to (7).
Subsec. (n)(1). Pub. L. 100-628, Sec. 1084(b), directed that
subsec. (n)(1) of this section as similarly amended first by
provisions made effective by section 101(g) of Pub. L. 99-500 and
Pub. L. 99-591 [see 1986 Amendment note below and Codification note
above] and later by section 515(i) of Pub. L. 100-242 [see below]
is amended to read as if the amendment by Pub. L. 100-242 had not
been enacted.
Pub. L. 100-242, Sec. 515(i), made amendment identical to Pub. L.
99-500 and 99-591. See 1986 Amendment note below.
Subsec. (r). Pub. L. 100-242, Sec. 515(d), amended subsec. (r)
generally. Prior to amendment, subsec. (r) read as follows: "In
providing assistance under this section, the Secretary may not
discriminate among programs on the basis of the particular type of
activity involved, whether such activity is primarily a
neighborhood, industrial, or commercial activity."
Subsec. (s). Pub. L. 100-242, Sec. 515(h), added subsec. (s).
1987 - Subsec. (n)(1). For amendment by Sec. 106 of Pub. L. 100-
202, see 1986 Amendment note below.
Subsec. (n)(2)(A). Pub. L. 100-202, Sec. 101(f) [title I, Sec.
101], inserted ", or on former Indian reservations in Oklahoma as
determined by the Secretary of the Interior," after "reservation".
1986 - Subsec. (n)(1). Pub. L. 99-500 and 99-591, Sec. 101(g), as
enacted by Pub. L. 100-202, inserted at end "Such term also
includes the counties of Kauai, Maui and Hawaii in the State of
Hawaii." See Codification note above.
Subsec. (n)(2)(B). Pub. L. 99-272 substituted "was an eligible
recipient under chapter 67 of title 31 prior to the repeal of such
chapter" for "is an eligible recipient under chapter 67 of title
31".
1984 - Subsec. (n)(1). Pub. L. 98-454 inserted reference to
American Samoa and the Northern Mariana Islands.
Subsec. (n)(2). Pub. L. 98-479 substituted "chapter 67 of title
31" for "the State and Local Fiscal Assistance Act of 1972".
1983 - Subsec. (a). Pub. L. 98-181, Sec. 121(a), inserted
authorizations for appropriations not to exceed $440,000,000 for
each of the fiscal years 1984, 1985, and 1986.
Subsec. (b)(1). Pub. L. 98-181, Sec. 121(b), substituted "the
extent of unemployment, job lag, or surplus labor" for "where data
are available, the extent of unemployment and job lag", and
inserted provisions for continued eligibility for assistance of any
city with a population of less than 50,000 persons, other than a
central city of a metropolitan area, which until the Secretary
revises the standards for eligibility for such cities and includes
the extent of unemployment, job lag, or labor surplus as a standard
of distress for such cities, and provisions requiring the Secretary
to make such revision as soon as possible following Nov. 30, 1983.
Subsec. (b)(2)(A)(i), (B)(i). Pub. L. 98-181, Sec. 121(c),
inserted "neighborhood statistics areas," after "enumeration
districts,".
Subsec. (c)(3)(C). Pub. L. 98-181, Sec. 121(d), added cl. (C).
Subsec. (d)(1). Pub. L. 98-181, Sec. 121(e), substituted
"criteria for a national competition" for "criteria" in provisions
preceding cl. (A).
Subsec. (i). Pub. L. 98-181, Sec. 121(f), inserted provisions
relating to applications by consortia of cities less than 50,000
population.
Subsecs. (p) to (r). Pub. L. 98-181, Sec. 121(g), added subsecs.
(p) to (r).
1981 - Pub. L. 97-35 substantially restructured and reorganized
provisions, made changes in nomenclature and phraseology, and
revised purposes, selection criteria and standards, application
procedures, approval powers of Secretary, covered activities,
limitations, allocation computations, funding prerequisites,
amounts for grants, waivers, notice requirements, applicable
definitions, and special provisions for years after 1983.
1980 - Subsec. (c)(7). Pub. L. 96-399, Sec. 110(a)(1)-(3), added
par. (7).
Subsec. (n). Pub. L. 96-399, Sec. 110(b), added subsec. (n).
Subsec. (o). Pub. L. 96-399, Sec. 117(a), added subsec. (o).
1979 - Subsec. (b). Pub. L. 96-153, Sec. 104, designated existing
provisions as par. (1) and added par. (2).
Subsec. (e). Pub. L. 96-153, Sec. 104(b), designated existing
provisions as par. (1) and substituted "(1) Except in the case of a
city or urban county eligible under subsection (b)(2) of this
section, in establishing criteria" for "In establishing criteria"
in opening sentence, redesignated existing cls. (1) to (3) as (A)
to (C), and added pars. (2) and (3).
Subsecs. (l), (m). Pub. L. 96-153, Sec. 105, added subsecs. (l)
and (m).
1978 - Subsec. (c)(6). Pub. L. 95-557, Sec. 103(g), added par.
(6).
Subsec. (e). Pub. L. 95-557, Sec. 103(h), inserted "impact of the
proposed urban development action program on the residents,
particularly those of low and moderate income, of the residential
neighborhood, and on the neighborhood, in which the program is to
be located" after "objectives of this chapter".
EFFECTIVE DATE OF 1994 AMENDMENT
Amendment by Pub. L. 103-233 applicable with respect to any
amounts made available to carry out subchapter II (Sec. 12721 et
seq.) of chapter 130 of this title after Apr. 11, 1994, and any
amounts made available to carry out that subchapter before that
date that remain uncommitted on that date, with Secretary to issue
any regulations necessary to carry out such amendment not later
than end of 45-day period beginning on that date, see section 209
of Pub. L. 103-233, set out as a note under section 5301 of this
title.
EFFECTIVE DATE OF 1988 AMENDMENT
Section 515(f), (g) of Pub. L. 100-242 provided that:
"(f) Regulations. - The Secretary of Housing and Urban
Development shall issue such regulations as may be necessary to
carry out the amendments made by this section [amending this
section]. Such regulations shall be published for comment in the
Federal Register not later than 60 days after the date of enactment
of this Act [Feb. 5, 1988]. The provisions of section 119(d)(1)(D),
section 119(d)(3), and section 119(d)(4) of the Housing and
Community Development Act of 1974 [subsec. (d)(1)(D), (3), (4) of
this section], shall take effect on the date of enactment of this
Act.
"(g) Applicability. -
"(1) In general. - The amendments made by this section
[amending this section] shall be applicable to the making of
urban development action grants that have not received the
preliminary approval of the Secretary of Housing and Urban
Development before the date on which final regulations issued by
the Secretary under subsection (f) become effective. For the
fiscal year in which the amendments made by this section become
applicable, such amendments shall only apply with respect to the
aggregate amount awarded for such grants on or after such
effective date.
"(2) Sunset of urban county competition rule. - Effective
October 1, 1989, section 119(d)(6) of the Housing and Community
Development Act of 1974 [subsec. (d)(6) of this section] is
repealed."
Section 516(b) of Pub. L. 100-242 provided that: "Except as
otherwise provided in section 119(h)(5) of the Housing and
Community Development Act of 1974 [subsec. (h)(5) of this section]
(as added by subsection (a)), the amendments made by this section
[amending this section] shall be applicable to urban development
action grants that have not received the preliminary approval of
the Secretary of Housing and Urban Development before the date of
the enactment of this Act [Feb. 5, 1988]."
EFFECTIVE DATE OF 1986 AMENDMENTS
Section 106 of Pub. L. 100-202 provided that the amendment made
by Pub. L. 99-500 and 99-591 is effective on date of enactment
[Oct. 18, 1986] of the "pertinent joint resolution" making
continuing appropriations for fiscal year 1987 [Pub. L. 99-500 and
99-591].
Amendment by Pub. L. 99-272 effective Oct. 18, 1986, see section
14001(e) of Pub. L. 99-272.
EFFECTIVE DATE OF 1981 AMENDMENT
Section 308(c) of Pub. L. 97-35 provided that: "The amendments
made by subsections (a) and (b) [amending this section and section
5320 of this title] shall become effective on the effective date of
regulations implementing such subsections. As soon as practicable,
but not later than January 1, 1982, the Secretary shall issue such
final rules and regulations as the Secretary determines are
necessary to carry out such subsections."
EFFECTIVE DATE OF 1978 AMENDMENT
Amendment by Pub. L. 95-557 effective Oct. 1, 1978, see section
104 of Pub. L. 95-557, set out as a note under section 1709 of
Title 12, Banks and Banking.
EFFECTIVE DATE
Section effective Oct. 1, 1977, see section 114 of Pub. L. 95-
128, set out as an Effective Date of 1977 Amendment note under
section 5301 of this title.
IMPLEMENTATION OF URBAN DEVELOPMENT ACTION GRANT RETENTION PROGRAM
Section 232(c)(2) of Pub. L. 103-233 provided that: "Not later
than 10 days after the date of enactment of this Act [Apr. 11,
1994], the Secretary shall, by notice published in the Federal
Register, which shall take effect upon publication, establish such
requirements as may be necessary to implement the amendments made
by this subsection [amending this section]."
NEW TOWNS DEMONSTRATION PROGRAM FOR EMERGENCY RELIEF OF LOS ANGELES
Pub. L. 102-550, title XI, Oct. 28, 1992, 106 Stat. 3927, as
amended by Pub. L. 105-362, title VII, Sec. 701(g), Nov. 10, 1998,
112 Stat. 3287, provided that:
"SEC. 1101. AUTHORITY.
"To provide for the revitalization and renewal of inner city
neighborhoods in the areas of Los Angeles, California, that were
damaged by the civil disturbances during April and May of 1992, and
to demonstrate the effectiveness of new town developments in
revitalizing and restoring depressed and underprivileged inner city
neighborhoods, the Secretary of Housing and Urban Development
shall, to the extent or in such amounts as are provided in
appropriation Acts, make any assistance authorized under this title
available under this title to units of general local government,
governing boards, and eligible mortgagors in accordance with the
provisions of this title.
"SEC. 1102. NEW TOWN PLAN.
"(a) Requirement. - The Secretary may make assistance available
under this title only in connection with, and according to the
provisions of a new town plan developed and established by a
governing board under section 1107 and approved under subsection
(d) of this section. In developing such plans, the governing board
shall consult with representatives of the units of general local
government within whose boundaries are located any portion of the
new town demonstration area for the demonstration program to be
carried out under such plan.
"(b) Eligible New Town Demonstration Areas. - A new town plan
under this section shall provide for carrying out a new town
development demonstration providing assistance available under this
title within a new town demonstration area, which shall be a
geographic area defined in the new town plan -
"(1) that is one of pervasive poverty, unemployment, and
general distress;
"(2) that has an unemployment rate of not less than 1.5 times
the national unemployment rate for the 2 years preceding approval
of the new town plan;
"(3) that has a poverty rate of not less than 20 percent during
such 2-year period;
"(4) for which not less than 70 percent of the households
living in the area have incomes below 80 percent of the median
income of households of the unit of general local government in
which they are located;
"(5) that has a shortage of adequate jobs for residents; and
"(6) that is located -
"(A) in or near the City or County of Los Angeles, in the
State of California; and
"(B) within an area for which the President, pursuant to
title IV or V of the Robert T. Stafford Disaster Relief and
Emergency Assistance Act [42 U.S.C. 5170 et seq., 5191 et
seq.], declared that a major disaster or emergency existed for
purposes of such Act [42 U.S.C. 5121 et seq.], as a result of
the civil disturbances involving acts of violence occurring on
or after April 29, 1992, and before May 6, 1992.
"(c) Contents. - Each new town plan shall include the following
information:
"(1) Governing board. - A description of the members and
purposes of the governing board that developed the plan, the
manner in which members of the governing board were selected, and
the businesses, agencies, interests, and community ties of each
member of the governing board.
"(2) New town demonstration area. - A definition and
description of the new town demonstration area for the new town
development demonstration to be assisted under this title.
"(3) Target community. - A description of the economic, social,
racial, and ethnic characteristics of the population of the
neighborhood or area in which the new town demonstration area is
located.
"(4) Agreements. - Agreements that the governing board will
carry out the new town demonstration program in accordance with
the requirements of this title.
"(5) Housing units. - A description of the number, size,
location, cost, style, and characteristics of rental and
homeownership housing units to be developed under the new town
demonstration program, any financing for developing such housing,
and the amount of assistance necessary under section 1105 for
developing the housing under the program.
"(6) Jobs. - A description of the number, types, and duration
of any new jobs that will be created in the new town
demonstration area and surrounding areas as a result of the
demonstration program, and of any job training activities and
apprenticeship programs to be made available in connection with
the program.
"(7) Social services. - A description of the social and
supportive services to be made available under the demonstration
program to residents of housing assisted under the demonstration
program pursuant to section 1103(d) and to residents of the new
town demonstration area.
"(8) Supplemental resources. - A description of any funds,
assistance, in-kind contributions, and other resources to be made
available in connection with the demonstration program, including
the sources and amounts of any private capital resources and non-
Federal funds required under section 1103(h).
"(9) Contractors and developers. - A listing of the contractors
and developers who potentially will carry out any construction
and rehabilitation work for development of housing under the
demonstration program and the expected costs involved in hiring
such contractors and developers.
"(10) Financing for homebuyers. - A description of any mortgage
lenders who have indicated that they will make financing
available to families purchasing housing developed under the
demonstration program through mortgages eligible for insurance
under section 1104 and proposed terms of such mortgages.
"(11) Commitments. - Evidence of any commitments entered into
for making any of the resources described in paragraphs (6)
through (8) available in connection with the demonstration
program.
"(12) Presale requirements. - A description of commitments made
to purchase not less than 50 percent of the housing to be
developed under the demonstration program for purchase by the
occupant and to rent not less than 50 percent of the rental
dwelling units to be developed under the demonstration program.
"(13) Community development activities. - A description of the
community development activities to be carried out with
assistance under section 1106, the amount of assistance necessary
under such section for such activities, and of the projected uses
of such assistance.
"(d) Review and Approval. -
"(1) Submission. - Not later than the expiration of the 6-month
period beginning on the date of the enactment of this Act [Oct.
28, 1992], a governing board shall submit a new town plan under
this section to the chief executive officers of each unit of
general local government within whose boundaries is located any
portion of the new town demonstration area described under the
plan of the board.
"(2) Approval. - For a plan to be eligible for assistance
available under this title, the chief executive officer of all
units of general local government to whom the new town plan is
submitted shall approve the plan at a public meeting after the
plan has been made publicly available for a period of not less
than 30 days. A governing board may resubmit for approval any
plan returned by any such chief executive officer to the
governing board, and such chief executive officer may, upon
returning the plan indicate any modifications necessary for
approval. A new town plan may not be approved unless such chief
executive officers determine that the membership of the governing
board submitting the plan is constituted in accordance with
section 1107 and the governing board is capable of carrying out
the plan.
"(3) Amendment. - An approved new town plan for the
demonstration program developed by the governing board may be
amended by the board by obtaining approval of the amendment in
the manner provided under this subsection for approval of plans.
If the chief executive officer of the unit of general local
government does not approve or return the amended plan within 30
days of submission, the amended plan shall be considered to be
approved for purposes of this subsection.
"SEC. 1103. NEW TOWN DEVELOPMENT DEMONSTRATION PROGRAM
REQUIREMENTS.
"(a) In General. - Each of the 2 new town development
demonstration programs selected for assistance under this title
under section 1102 shall be carried out, by the governing board
submitting the new town plan for the demonstration program, in
accordance with such plan (and any approved amendments of such
plans) and shall be subject to the requirements under this section.
"(b) Local Participation. - With respect to any activities
carried out under the demonstration program, the program shall give
preference in awarding contracts, purchasing materials, acquiring
services, and obtaining assistance or training, to contractors,
businesses, developers, professionals, and other establishments
located or having offices within the new town demonstration area.
"(c) Housing. -
"(1) Number of units. - The demonstration program shall
construct or renovate not less than 1,500 dwelling units in the
new town demonstration area, of which not less than 60 percent
shall be units available for purchase by the occupant.
"(2) Affordability. - Units of varying sizes and costs shall be
designed and developed under the demonstration program so that
the program provides housing affordable to families of varying
incomes not exceeding 115 percent of the median income for the
area in which the new town demonstration area is located,
including very low- and low-income families (as such terms are
defined in section 3(b) of the United States Housing Act of 1937
[42 U.S.C. 1437a(b)]).
"(3) Homeownership units. - Dwelling units developed under the
demonstration program for purchase by the occupant shall
initially be sold at prices affordable to families eligible to
purchase such units. Such units shall be available for purchase
only by families having incomes not exceeding the amount
specified in paragraph (2). The demonstration shall develop 2-, 3-
, and 4-bedroom units for purchase.
"(4) Rental units. - Dwelling units developed under the
demonstration program that are to be available for rental shall
include family-type units and single bedroom and efficiency units
designed for elderly occupants. Such units shall be available for
occupancy only by families who (upon initial occupancy) have
incomes of (A) less than 60 percent of the median income for the
area, or (B) less than $20,000. Occupant families shall pay not
more than 30 percent of the family income for rent.
"(d) Social Services. - The demonstration program shall provide
for appropriate social and supportive services to be made available
to residents of housing assisted under the demonstration program
and to other residents of the new town demonstration area, which
may include rental and homeownership counseling, child care, job
placement, educational programs, recreational and health care
facilities and programs, and other appropriate services.
"(e) Job Creation and Training. - The demonstration program shall
provide, to the extent practicable, that activities in connection
with the demonstration program, including development of housing
under subsection (c) and community development activities assisted
under section 1106, shall employ and provide job training
opportunities for residents of the housing assisted under the
demonstration program and other residents of the new town
demonstration area.
"(f) Financing. - The demonstration program shall provide for
coordination with banks, credit unions, and other mortgage lenders
to make financing available to purchasers of units developed under
the demonstration program through mortgages eligible for insurance
under section 1104, and shall give preference to such mortgage
lenders who have offices located within or near the new town
demonstration area.
"(g) Support Facilities. - The demonstration program shall
encourage, facilitate, and provide for development of appropriate
support facilities to serve residents in the housing developed
under the program, including infrastructure and commercial
facilities.
"(h) Non-Federal Funds. - The governing board carrying out the
demonstration program shall ensure that not less than 25 percent of
the total amounts used to carry out the demonstration program is
provided from non-Federal sources, including State or local
government funds, any salary paid to staff to carry out the
demonstration program, the value of any time, services, and
materials donated to carry out the program, the value of any
donated building, and the value of any lease on a building.
"SEC. 1104. FEDERAL MORTGAGE INSURANCE.
"(a) In General. - Pursuant to title II and section 251 of the
National Housing Act [12 U.S.C. 1707 et seq., 1715z-16], the
Secretary shall (to the extent authority is available pursuant to
subsection (d)) insure mortgages under this section involving
properties upon which are located dwelling units described in
section 1103(c)(3) of this Act that are developed under the new
town demonstration programs carried out pursuant to this title.
"(b) Mortgage Terms. - Mortgages insured under this section shall
-
"(1) provide for periodic adjustments in the effective rate of
interest charged, which -
"(A) for the first 5 years of the mortgage, shall be an
annual rate of not more than 7 percent; and
"(B) after the expiration of such 5-year period, may increase
on an annual basis, but -
"(i) shall be limited, with respect to any single interest
rate increase, to not more than a 10-percent increase in the
annual percentage rate; and
"(ii) may not be increased at any time to a rate greater
than the rate necessary at such time to fully amortize the
outstanding loan balance over the term of the mortgage; and
"(2) have a maturity of 35 years from the date of the beginning
of the amortization of the mortgage.
"(c) Board Approval. - The Secretary may provide insurance under
this section for a mortgage only if the governing board for the
demonstration program for the new town demonstration area in which
the property subject to the mortgage is located has indicated to
the Secretary approval of the mortgage in connection with the
demonstration program.
"(d) Insurance Authority. - To the extent provided in
appropriation Acts, the Secretary shall use any authority provided
pursuant to section 531(b) of the National Housing Act [12 U.S.C.
1735f-9(b)] to enter into commitments to insure loans and mortgages
under this section in fiscal years 1993 and 1994 with an aggregate
principal amount not exceeding such sums as may be necessary to
carry out the demonstration under this title. Mortgages insured
under this section shall not be considered for purposes of the
aggregate limitation on the number of mortgages insured under
section 251 of the National Housing Act [12 U.S.C. 1715z-16]
specified in subsection (c) of such section.
"SEC. 1105. SECONDARY SOFT MORTGAGE FINANCING FOR HOUSING.
"(a) In General. - The Secretary shall, to the extent amounts are
provided in appropriation Acts under subsection (e), provide
assistance under this section through the governing boards carrying
out the new town demonstration programs under this section to
assist in the development of housing under the program.
"(b) Use. - Any assistance provided under this section shall be
used only for costs in planning, developing, constructing, and
rehabilitating housing under the demonstration program available
for rental or purchase by the occupant. The governing board shall
determine, according to the new town plan for the demonstration
program, the allocation of amounts of assistance provided under
this section.
"(c) Amount. - The Secretary may not provide assistance under
this section for the development of housing under a demonstration
program in an amount exceeding $50,000 per dwelling unit assisted.
"(d) Second Mortgage. -
"(1) In general. - Assistance under this section shall be
repaid in accordance with this subsection. Repayment of the
amount of any assistance provided with respect to -
"(A) any building containing rental units, or
"(B) any dwelling unit available for purchase by the occupant
that is developed under a demonstration program,
shall be secured by a second mortgage held by the Secretary on
the property involved.
"(2) Terms. - During the period ending upon repayment of the
assistance as provided in this subsection, any building
containing rental units that is provided assistance under this
section shall be used as rental housing subject to the
requirements of section 1103(c)(4). During the period ending upon
repayment of the assistance as provided in this subsection, any
dwelling unit made available for purchase by the occupant that is
provided assistance under this section may be sold only to a
family having an income not exceeding the amount specified in
section 1103(c)(2).
"(3) Interest. - Any assistance provided under this section for
a building or dwelling unit shall bear interest at a rate
equivalent to the rate for the most recently marketable
obligations issued by the United States Treasury have terms of 10
years. The interest on such assistance shall be required to be
repaid only upon sale of the building.
"(4) Discounted repayment. - The assistance provided under this
section for any building containing rental units or any dwelling
unit available for purchase by the occupant shall be considered
to have been repaid for purposes of this subsection if the
original purchaser of the building or the dwelling unit pays to
the Secretary an amount equal to 50 percent of the amount of the
assistance provided under this section.
"(e) Authorization of Appropriations. - There are authorized to
be appropriated for fiscal years 1993 and 1994 such sums as may be
necessary for providing assistance under this section.
"SEC. 1106. COMMUNITY DEVELOPMENT ASSISTANCE.
"(a) In General. - The Secretary shall provide assistance under
this section, to the extent amounts are provided in appropriation
Acts under subsection (h), to units of general local government to
address vital unmet needs and to promote the creation of jobs and
economic development in connection with the new town demonstration
programs carried out under this title.
"(b) Eligible Units of General Local Government. - Assistance may
be provided under this section only to units of general local
government -
"(1) within whose boundaries are located any portion of the new
town demonstration areas described under the new town
demonstration plans for the demonstration programs carried out
under this title;
"(2) that make the certifications to the Secretary required
under subsection (c); and
"(3) that will comply with a residential antidisplacement and
relocation assistance plan described in subsection (d).
"(c) Required Certifications. - The certifications referred to in
subsection (b)(2) shall be certifications that -
"(1) the assistance will be conducted and administered in
conformity with the Civil Rights Act of 1964 [42 U.S.C. 2000a et
seq.] and the Civil Rights Act of 1968 [see Short Title note set
out under section 3601 of this title], and the unit of general
local government will affirmatively further fair housing;
"(2) the projected use of funds has been developed in a manner
that gives maximum feasible priority to activities which are
designed to meet community development needs that have been
delayed because of the lack of fiscal resources of the unit of
general local government or which are designed to address
conditions that pose a serious and immediate threat to the health
or welfare of the community;
"(3) any projected use of funds for public services will
benefit primarily low- and moderate-income families;
"(4) the unit of general local government will not attempt to
recover any capital costs of public improvements assisted in
whole or part under this section 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 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 section; 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 this section to comply with the requirements of
subparagraph (A); and
"(5) the unit of general local government will comply with the
other provisions of this title and with other applicable laws.
"(d) Antidisplacement and Relocation Plan. -
"(1) Contents. - The residential antidisplacement and
relocation assistance plan referred to in subsection (b)(3)
shall, in connection with activities assisted under this section -

"(A) provide that, in the event of such displacement -
"(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 8 of the United States
Housing Act of 1937 [42 U.S.C. 1437f];
"(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; and
"(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 the unit of general local
government, the claimant may appeal to the Secretary, and that
the decision of the Secretary shall be final unless a court
determines the decision was arbitrary and capricious.
"(2) Exception. - Paragraphs (1)(A)(i) and (1)(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 shall be
final and nonreviewable.
"(e) Eligible Activities. - Activities assisted with amounts
provided under this section may include only the following
activities:
"(1) Acquisition of real property. - The acquisition of real
property (including air rights, water rights, and other interests
therein) that is located within the new town demonstration area
and is -
"(A) blighted, deteriorated, undeveloped, or inappropriately
developed from the standpoint of sound community development
and growth;
"(B) appropriate for rehabilitation activities;
"(C) appropriate for the preservation or restoration of
historic sites, the beautification of urban land, the
conservation of open spaces, natural resources, and scenic
areas, the provision of recreational opportunities, or the
guidance of urban development;
"(D) to be used for the provision of public works,
facilities, and improvements eligible for assistance under this
section;
"(E) to be used as a facility for coordinating and providing
activities and services for high risk youth (as such term is
defined in section 509A [now 517] of the Public Health Service
Act [42 U.S.C. 290bb-23]); or
"(F) to be used for other public purposes.
"(2) Construction of public works and facilities. - The
acquisition, construction, rehabilitation, or installation of
public works or public facilities within the new town
demonstration area, including buildings for the general conduct
of government and facilities for coordinating and providing
activities and services for high risk youth (as such term is
defined in section 509A [now 517] of the Public Health Service
Act).
"(3) Clearance and rehabilitation of buildings. - The
clearance, removal, and rehabilitation of buildings and
improvements located within the new town demonstration area,
including interim assistance, assistance for facilities for
coordinating and providing activities and services for high risk
youth (as such term is defined in section 509A [now 517] of the
Public Health Service Act), and assistance to privately owned
buildings and improvements.
"(4) Provision of public services and housing. -
"(A) Public services. - The provision of public services
within the new town demonstration area that are concerned with
job training and retraining, health care and education, crime
prevention, drug abuse treatment and rehabilitation, child
care, education, and recreation, which may include the
provision of public health and public safety vehicles.
"(B) Housing activities. - The acquisition and rehabilitation
of housing for low- and moderate-income families within the new
town demonstration area, except that any grantee that uses
amounts received under this section for housing activities
under this subparagraph shall make not less than 15 percent of
the amount used for such housing activities available only for
community housing development organizations and nonprofit
organizations (as such terms are defined in section 104 of the
Cranston-Gonzalez National Affordable Housing Act [42 U.S.C.
12704]) for such activities;
"(C) Limitation. - Not more than 25 percent of the amount of
any assistance provided under this section (including program
income) to any unit of general local government may be used for
activities under this paragraph.
"(5) Relocation assistance. - Relocation payments and
assistance for individuals, families, business, and organizations
that are displaced as a result of activities assisted under this
title.
"(6) Payment of administrative expenses. - Payment of
reasonable administrative costs associated with activities
assisted under this section and any expenses of developing the
new town plan under section 1102.
"(f) Allocation of Assistance. - The Secretary may not provide
more than 50 percent of any amounts appropriated under this section
in connection with any one of the 2 new town demonstration programs
carried out under this title.
"(g) Other Requirements. - The provisions of subsections (f),
(g), and (h) of section 104, subsections (c) and (d) of section
105, section 107, 108, 109, and 110 of the bill, H.R. 4073, 102d
Congress (as reported on March 14, 1992 [May 14, 1992, H. Rept. No.
102-524], by the Committee on Banking, Finance and Urban Affairs of
the House of Representatives), shall apply to grantees receiving
assistance under this section.
"(h) Authorization of Appropriations. - There are authorized to
be appropriated for fiscal years 1993 and 1994 such sums as may be
necessary for assistance under this section.
"SEC. 1107. GOVERNING BOARDS.
"(a) Purpose. - For purposes of this title, a governing board
shall be a board organized for the purpose of developing a new town
plan under this title and carrying out a new town development
demonstration under this title.
"(b) Membership. - Each governing board shall consist of not less
than 10 members, who shall include -
"(1) residents of the area in which the new town demonstration
area under the plan developed by the board is located;
"(2) owners of business in such area;
"(3) leaders or participants in community groups in such area;
and
"(4) representatives of financial institutions located or
having offices in such area.
"(c) Organization. - A governing board may organize itself and
conduct business in the manner that the board determines is
appropriate to carry out the new town development demonstration
under this title.
"SEC. 1108. REPORTS.
"Each governing board carrying out a new town development
demonstration under this title shall submit to the Congress a copy
of the new town plan of the governing board, upon the approval of
that plan under section 1102(d).
"SEC. 1109. DEFINITIONS.
"For purposes of this title:
"(1) Demonstration program. - The terms 'demonstration program'
and 'program' mean a new town development demonstration program
receiving assistance under this title, which is carried out
within a new town demonstration area by a governing board.
"(2) Governing board. - The term 'governing board' means a
board established under section 1107.
"(3) New town demonstration area. - The term 'new town
demonstration area' means the area defined in a new town plan in
which the new town development demonstration under the plan is to
be carried out.
"(4) New town plan. - The terms 'new town plan' and 'plan' mean
a plan under section 1102 developed by a governing board.
"(5) Unit of general local government. - The term 'unit of
general local government' means any city, county, town, township,
parish, village, or other general purpose political subdivision
of the State of California."
REPORTS OF COMPTROLLER GENERAL
Pub. L. 100-242, title V, Sec. 515(e), Feb. 5, 1988, 101 Stat.
1933, which required the Comptroller General of the United States
to triennially prepare and submit to Congress a comprehensive
report evaluating the eligibility standards and selection criteria
applicable under this section, terminated, effective May 15, 2000,
pursuant to section 3003 of Pub. L. 104-66, as amended, set out as
a note under section 1113 of Title 31, Money and Finance. See,
also, item 14 on page 9 of House Document No. 103-7.
NEIGHBORHOOD DEVELOPMENT DEMONSTRATION
Section 123 of Pub. L. 98-181, as amended, which provided for a
demonstration program to determine the feasibility of supporting
eligible neighborhood development activities by providing Federal
matching funds to eligible neighborhood development organizations,
was transferred to section 5318a of this title.
(!1) So in original. Probably should not be capitalized.

(!2) So in original.