42 U.S.C. § 5318a : US Code - Section 5318A: John Heinz Neighborhood Development Program

Search 42 U.S.C. § 5318a : US Code - Section 5318A: John Heinz Neighborhood Development Program

(a) Definitions
For the purposes of this section:
(1) The term "eligible neighborhood development activity" means
-
(A) creating permanent jobs in the neighborhood;
(B) establishing or expanding businesses within the
neighborhood;
(C) developing, rehabilitating, or managing neighborhood
housing stock;
(D) developing delivery mechanisms for essential services
that have lasting benefit to the neighborhood; or
(E) planning, promoting, or financing voluntary neighborhood
improvement efforts.
(2) The term "eligible neighborhood development organization"
means -
(A)(i) an entity organized as a private, voluntary, nonprofit
corporation under the laws of the State in which it operates;
(ii) an organization that is responsible to residents of its
neighborhood through a governing body, not less than 51 per
centum of the members of which are residents of the area
served;
(iii) an organization that has conducted business for at
least one year prior to the date of application for
participation;
(iv) an organization that operates within an area that -
(I) meets the requirements for Federal assistance under
section 5318 of this title;
(II) is designated as an enterprise zone under Federal law;
(III) is designated as an enterprise zone under State law
and recognized by the Secretary for purposes of this section
as a State enterprise zone; or
(IV) is a qualified distressed community within the meaning
of section 1834a(b)(1) of title 12; and
(v) an organization that conducts one or more eligible
neighborhood development activities that have as their primary
beneficiaries low- and moderate-income persons, as defined in
section 5302(a)(20) of this title; or
(B) any facility that provides small entrepreneurial business
with affordable shared support services and business
development services and meets the requirements of subparagraph
(A).
(3) The term "neighborhood development funding organization"
means -
(A) a depository institution the accounts of which are
insured pursuant to the Federal Deposit Insurance Act [12
U.S.C. 1811 et seq.] or the Federal Credit Union Act [12 U.S.C.
1751 et seq.], and any subsidiary (as such term is defined in
section 3(w) of the Federal Deposit Insurance Act [12 U.S.C.
1813(w)]) thereof;
(B) a depository institution holding company and any
subsidiary thereof (as such term is defined in section 3(w) of
the Federal Deposit Insurance Act [12 U.S.C. 1813(w)]); or
(C) a company at least 75 percent of the common stock of
which is owned by one or more insured depository institutions
or depository institution holding companies.
(4) The term "Secretary" means the Secretary of Housing and
Urban Development.
(b) Duties of Secretary
(1) The Secretary shall carry out, in accordance with this
section, a program to support eligible neighborhood development
activities by providing Federal matching funds to eligible
neighborhood development organizations on the basis of the monetary
support such organizations have received from individuals,
businesses, and nonprofit or other organizations in their
neighborhoods, and from neighborhood development funding
organizations, prior to receiving assistance under this section.
(2) The Secretary shall accept applications from eligible
neighborhood development organizations for participation in the
program. Eligible organizations may participate in more than one
year of the program, but shall be required to submit a new
application and to compete in the selection process for each
program year. For fiscal year 1993 and thereafter, not more than 50
percent of the grants may be for multiyear awards.
(3) From the pool of eligible neighborhood development
organizations submitting applications for participation in a given
program year, the Secretary shall select participating
organizations in an appropriate number through a competitive
selection process. To be selected, an applicant shall -
(A) have demonstrated measurable achievements in one or more of
the activities specified in subsection (a)(1) of this section;
(B) specify a business plan for accomplishing one or more of
the activities specified in subsection (a)(1) of this section;
(C) specify a strategy for achieving greater long term private
sector support, especially in cooperation with a neighborhood
development funding organization, except that an eligible
neighborhood development organization shall be deemed to have the
full benefit of the cooperation of a neighborhood development
funding organization if the eligible neighborhood development
organization -
(i) is located in an area described in subsection
(a)(2)(A)(iv) of this section that does not contain a
neighborhood development funding organization; or
(ii) demonstrates to the satisfaction of the Secretary that
it has been unable to obtain the cooperation of any
neighborhood development funding organization in such area
despite having made a good faith effort to obtain such
cooperation; and
(D) specify a strategy for increasing the capacity of the
organization.
(c) Criteria for awarding grants
The Secretary shall award grants under this section among the
eligible neighborhood development organizations submitting
applications for such grants on the basis of -
(1) the degree of economic distress of the neighborhood
involved;
(2) the extent to which the proposed activities will benefit
persons of low and moderate income;
(3) the extent of neighborhood participation in the proposed
activities, as indicated by the proportion of the households and
businesses in the neighborhood involved that are members of the
eligible neighborhood development organization involved and by
the extent of participation in the proposed activities by a
neighborhood development funding organization that has a branch
or office in the neighborhood, except that an eligible
neighborhood development organization shall be deemed to have the
full benefit of the participation of a neighborhood development
funding organization if the eligible neighborhood development
organization -
(A) is located in an (!1) neighborhood that does not contain
a branch or office of a neighborhood development funding
organization; or
(B) demonstrates to the satisfaction of the Secretary that it
has been unable to obtain the participation of any neighborhood
development funding organization that has a branch or office in
the neighborhood despite having made a good faith effort to
obtain such participation; and
(4) the extent of voluntary contributions available for the
purpose of subsection (e)(4) of this section, except that the
Secretary shall waive the requirement of this subparagraph in the
case of an application submitted by a small eligible neighborhood
development organization, an application involving activities in
a very low-income neighborhood, or an application that is
especially meritorious.
(d) Consultation with informal working group
The Secretary shall consult with an informal working group
representative of eligible neighborhood organizations with respect
to the implementation and evaluation of the program established in
this section.
(e) Matching funds for participating organizations
(1) The Secretary shall assign each participating organization a
defined program year, during which time voluntary contributions
from individuals, businesses, and nonprofit or other organizations
in the neighborhood, and from neighborhood development funding
organizations, shall be eligible for matching.
(2) Subject to paragraph (3), at the end of each three-month
period occurring during the program year, the Secretary shall pay
to each participating neighborhood development organization the
product of -
(A) the aggregate amount of voluntary contributions that such
organization certifies to the satisfaction of the Secretary it
received during such three-month period; and
(B) the matching ratio established for such test neighborhoods
under paragraph (4).
(3) The Secretary shall pay not more than $50,000 under this
section to any participating neighborhood development organization
during a single program year, except that, if appropriations for
this section exceed $3,000,000, the Secretary may pay not more than
$75,000 to any participating neighborhood development organization.
(4) For purposes of paragraph (2), the Secretary shall, for each
participating organization, determine an appropriate ratio by which
monetary contributions made to participating neighborhood
development organizations will be matched by Federal funds. The
highest such ratios shall be established for neighborhoods having
the smallest number of households or the greatest degree of
economic distress.
(5) The Secretary shall insure that -
(A) grants and other forms of assistance may be made available
under this section only if the application contains a
certification by the unit of general local government within
which the neighborhood to be assisted is located that such
assistance is not inconsistent with the comprehensive housing
affordability strategy of such unit approved under section 12705
of this title or the statement of community development
activities and community development plans of the unit submitted
under section 5304(m) of this title, except that the failure of a
unit of general local government to respond to a request for a
certification within thirty days after the request is made shall
be deemed to be a certification; and
(B) eligible neighborhood development activities comply with
all applicable provisions of the Civil Rights Act of 1964 [42
U.S.C. 2000a et seq.].
(6) To carry out this section, the Secretary -
(A) may issue regulations as necessary;
(B) shall utilize, to the fullest extent practicable, relevant
research previously conducted by Federal agencies, State and
local governments, and private organizations and persons;
(C) shall disseminate information about the kinds of
activities, forms of organizations, and fund-raising mechanisms
associated with successful programs; and
(D) may use not more than 5 per centum of the funds
appropriated for administrative or other expenses in connection
with the program.
(f) Authorization
Of the amounts made available for assistance under section 5303
of this title, $1,000,000 for fiscal year 1993 (in addition to
other amounts provided for such fiscal year) and $3,000,000 for
fiscal year 1994 shall be available to carry out this section.
(g) Short title
This section may be cited as the "John Heinz Neighborhood
Development Act".