42 U.S.C. § 5301. Congressional findings and declaration of purpose
- (a)(a)
Critical social, economic, and environmental problems facing Nation’s urban communities
The Congress finds and declares that the Nation’s cities, towns, and smaller urban communities face critical social, economic, and environmental problems arising in significant measure from—
- (1)(a)(1)the growth of population in metropolitan and other urban areas, and the concentration of persons of lower income in central cities;
- (2)(a)(2)inadequate public and private investment and reinvestment in housing and other physical facilities, and related public and social services, resulting in the growth and persistence of urban slums and blight and the marked deterioration of the quality of the urban environment; and
- (3)(a)(3)increasing energy costs which have seriously undermined the quality and overall effectiveness of local community and housing development activities.
- (b)(b)
Establishment and maintenance of viable urban communities; systematic and sustained action by Federal, State, and local governments; expansion of and continuity in Federal assistance; increased private investment; streamlining programs and improvement of functioning of agencies; action to address consequences of scarce fuel supplies
The Congress further finds and declares that the future welfare of the Nation and the well-being of its citizens depend on the establishment and maintenance of viable urban communities as social, economic, and political entities, and require—
- (1)(b)(1)systematic and sustained action by Federal, State, and local governments to eliminate blight, to conserve and renew older urban areas, to improve the living environment of low- and moderate-income families, and to develop new centers of population growth and economic activity;
- (2)(b)(2)substantial expansion of and greater continuity in the scope and level of Federal assistance, together with increased private investment in support of community development activities;
- (3)(b)(3)continuing effort at all levels of government to streamline programs and improve the functioning of agencies responsible for planning, implementing, and evaluating community development efforts; and
- (4)(b)(4)concerted action by Federal, State, and local governments to address the economic and social hardships borne by communities as a consequence of scarce fuel supplies.
- (c)(c)
Decent housing, suitable living environment, and economic opportunities for persons of low and moderate income; community development activities which may be supported by Federal assistance
The primary objective of this chapter and of the community development program of each grantee under this chapter is the development of viable urban communities, by providing decent housing and a suitable living environment and expanding economic opportunities, principally for persons of low and moderate income. Consistent with this primary objective, not less than 70 percent of the aggregate of the Federal assistance provided to States and units of general local government under section 5306 of this title and, if applicable, the funds received as a result of a guarantee or a grant under section 5308 of this title, shall be used for the support of activities that benefit persons of low and moderate income, and the Federal assistance provided in this chapter is for the support of community development activities which are directed toward the following specific objectives—
- (1)(c)(1)the elimination of slums and blight and the prevention of blighting influences and the deterioration of property and neighborhood and community facilities of importance to the welfare of the community, principally persons of low and moderate income;
- (2)(c)(2)the elimination of conditions which are detrimental to health, safety, and public welfare, through code enforcement, demolition, interim rehabilitation assistance, and related activities;
- (3)(c)(3)the conservation and expansion of the Nation’s housing stock in order to provide a decent home and a suitable living environment for all persons, but principally those of low and moderate income;
- (4)(c)(4)the expansion and improvement of the quantity and quality of community services, principally for persons of low and moderate income, which are essential for sound community development and for the development of viable urban communities;
- (5)(c)(5)a more rational utilization of land and other natural resources and the better arrangement of residential, commercial, industrial, recreational, and other needed activity centers;
- (6)(c)(6)the reduction of the isolation of income groups within communities and geographical areas and the promotion of an increase in the diversity and vitality of neighborhoods through the spatial deconcentration of housing opportunities for persons of lower income and the revitalization of deteriorating or deteriorated neighborhoods;
- (7)(c)(7)the restoration and preservation of properties of special value for historic, architectural, or esthetic reasons;
- (8)(c)(8)the alleviation of physical and economic distress through the stimulation of private investment and community revitalization in areas with population outmigration or a stagnating or declining tax base; and
- (9)(c)(9)the conservation of the Nation’s scarce energy resources, improvement of energy efficiency, and the provision of alternative and renewable energy sources of supply.
It is the intent of Congress that the Federal assistance made available under this chapter not be utilized to reduce substantially the amount of local financial support for community development activities below the level of such support prior to the availability of such assistance. - (d)(d)
Consolidation of complex and overlapping Federal assistance programs into consistent system of Federal aid
It is also the purpose of this chapter to further the development of a national urban growth policy by consolidating a number of complex and overlapping programs of financial assistance to communities of varying sizes and needs into a consistent system of Federal aid which—
- (1)(d)(1)provides assistance on an annual basis, with maximum certainty and minimum delay, upon which communities can rely in their planning;
- (2)(d)(2)encourages community development activities which are consistent with comprehensive local and areawide development planning;
- (3)(d)(3)furthers achievement of the national housing goal of a decent home and a suitable living environment for every American family; and
- (4)(d)(4)fosters the undertaking of housing and community development activities in a coordinated and mutually supportive manner by Federal agencies and programs, as well as by communities.
- “(a)
Authorization of Appropriations.—
There is authorized to be appropriated under this section such sums as may be necessary for each of fiscal years 2019 through 2023 for assistance to States to provide individuals in recovery from a substance use disorder stable, temporary housing for a period of not more than 2 years or until the individual secures permanent housing, whichever is earlier. - “(b)
Allocation of Appropriated Amounts.—
- “(1)
In general.—
The amounts appropriated or otherwise made available to States under this section shall be allocated based on a funding formula established by the Secretary of Housing and Urban Development (referred to in this section as the ‘Secretary’) not later than 60 days after the date of enactment of this Act [Oct. 24, 2018]. - “(2)
Criteria.—
- “(A)
In general.—
The funding formula required under paragraph (1) shall ensure that any amounts appropriated or otherwise made available under this section are allocated to States with an age-adjusted rate of drug overdose deaths that is above the national overdose mortality rate, according to the Centers for Disease Control and Prevention. - “(B)
Priority.—
- “(i)
In general.—
Among such States, priority shall be given to States with the greatest need, as such need is determined by the Secretary based on the following factors, and weighting such factors as described in clause (ii):
- “(I)The highest average rates of unemployment based on data provided by the Bureau of Labor Statistics for calendar years 2013 through 2017.
- “(II)The lowest average labor force participation rates based on data provided by the Bureau of Labor Statistics for calendar years 2013 through 2017.
- “(III)The highest age-adjusted rates of drug overdose deaths based on data from the Centers for Disease Control and Prevention.
- “(ii)
Weighting.—
The factors described in clause (i) shall be weighted as follows:
- “(I)The rate described in clause (i)(I) shall be weighted at 15 percent.
- “(II)The rate described in clause (i)(II) shall be weighted at 15 percent.
- “(III)The rate described in clause (i)(III) shall be weighted at 70 percent.
- “(3)
Distribution.—
Amounts appropriated or otherwise made available under this section shall be distributed according to the funding formula established by the Secretary under paragraph (1) not later than 30 days after the establishment of such formula.
- “(c)
Use of Funds.—
- “(1)
In general.—
Any State that receives amounts pursuant to this section shall expend at least 30 percent of such funds within one year of the date funds become available to the grantee for obligation. - “(2)
Priority.—
Any State that receives amounts pursuant to this section shall distribute such amounts giving priority to entities with the greatest need and ability to deliver effective assistance in a timely manner. - “(3)
Administrative costs.—
Any State that receives amounts pursuant to this section may use up to 5 percent of any grant for administrative costs.
- “(d)
Rules of Construction.—
- “(1)
In general.—
Except as otherwise provided by this section, amounts appropriated, or amounts otherwise made available to States under this section shall be treated as though such funds were community development block grant funds under title I of the Housing and Community Development Act of 1974 (42 U.S.C. 5301 et seq.). - “(2)
No match.—
No matching funds shall be required in order for a State to receive any amounts under this section.
- “(e)
Authority to Waive or Specify Alternative Requirements.—
- “(1)
In general.—
In administering any amounts appropriated or otherwise made available under this section, the Secretary may waive or specify alternative requirements to any provision under title I of the Housing and Community Development Act of 1974 (42 U.S.C. 5301 et seq.) except for requirements related to fair housing, nondiscrimination, labor standards, the environment, and requirements that activities benefit persons of low- and moderate-income, upon a finding that such a waiver is necessary to expedite or facilitate the use of such funds. - “(2)
Notice of intent.—
The Secretary shall provide written notice of its intent to exercise the authority to specify alternative requirements under paragraph (1) to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives not later than 15 business days before such exercise of authority occurs. - “(3)
Notice to the public.—
The Secretary shall provide written notice of its intent to exercise the authority to specify alternative requirements under paragraph (1) to the public via notice, on the internet website of the Department of Housing and Urban Development, and by other appropriate means, not later than 15 business days before such exercise of authority occurs.
- “(f)
Technical Assistance.—
For the 2-year period following the date of enactment of this Act [Oct. 24, 2018], the Secretary may use not more than 2 percent of the funds made available under this section for technical assistance to grantees. - “(g)
State.—
For purposes of this section the term ‘State’ includes any State as defined in section 102 of the Housing and Community Development Act of 1974 (42 U.S.C. 5302) and the District of Columbia.”
- “(a)
In General.—
Effective October 1, 2010, out of funds in the Treasury not otherwise appropriated, there is hereby made available to the Secretary of Housing and Urban Development $1,000,000,000, and the Secretary of Housing and Urban Development shall use such amounts for assistance to States and units of general local government for the redevelopment of abandoned and foreclosed homes, in accordance with the same provisions applicable under the second undesignated paragraph under the heading ‘Community Planning and Development—Community Development Fund’ in title XII of division A of the American Recovery and Reinvestment Act of 2009 (Public Law 111–5; 123 Stat. 217) to amounts made available under such second undesignated paragraph, except as follows:
- “(1)Notwithstanding the matter of such second undesignated paragraph that precedes the first proviso, amounts made available by this section shall remain available until expended.
- “(2)The 3rd, 4th, 5th, 6th, 7th, and 15th provisos of such second undesignated paragraph shall not apply to amounts made available by this section.
- “(3)
Amounts made available by this section shall be allocated based on a funding formula for such amounts established by the Secretary in accordance with section 2301(b) of the Housing and Economic Recovery Act of 2008 [Pub. L. 110–289] (42 U.S.C. 5301 note), except that—
- “(A)notwithstanding paragraph (2) of such section 2301(b), the formula shall be established not later than 30 days after the date of the enactment of this Act [July 21, 2010];
- “(B)notwithstanding such section 2301(b), each State shall receive, at a minimum, not less than 0.5 percent of funds made available under this section;
- “(C)the Secretary may establish a minimum grant amount for direct allocations to units of general local government located within a State, which shall not exceed $1,000,000;
- “(D)each State and local government receiving grant amounts shall establish procedures to create preferences for the development of affordable rental housing for properties assisted with amounts made available by this section; and
- “(E)the Secretary may use not more than 2 percent of the funds made available under this section for technical assistance to grantees.
- “(4)Paragraph (1) of section 2301(c) of the Housing and Economic Recovery Act of 2008 shall not apply to amounts made available by this section.
- “(5)The fourth proviso from the end of such second undesignated paragraph shall be applied to amounts made available by this section by substituting ‘2013’ for ‘2012’.
- “(6)Notwithstanding section 2301(a) of the Housing and Economic Recovery Act of 2008, the term ‘State’ means any State, as defined in section 102 of the Housing and Community Development Act of 1974 (42 U.S.C. 5302), and the District of Columbia, for purposes of this section and this title [title XIV of Pub. L. 111–203, see Short Title of 2010 Amendment note set out under section 1601 of Title 15, Commerce and Trade], as applied to amounts made available by this section.
- “(7)
- (A)
None of the amounts made available by this section shall be distributed to—
- “(i)any organization which has been convicted for a violation under Federal law relating to an election for Federal office; or
- “(ii)any organization which employs applicable individuals.
- “(B)
In this paragraph, the term ‘applicable individual’ means an individual who—
- “(i)
is—
- “(I)employed by the organization in a permanent or temporary capacity;
- “(II)contracted or retained by the organization; or
- “(III)acting on behalf of, or with the express or apparent authority of, the organization; and
- “(ii)has been convicted for a violation under Federal law relating to an election for Federal office.
- “(8)An eligible entity receiving a grant under this section shall, to the maximum extent feasible, provide for the hiring of employees who reside in the vicinity, as such term is defined by the Secretary, of projects funded under this section or contract with small businesses that are owned and operated by persons residing in the vicinity of such projects.
- “(b)
Additional Amendments.—
- “(1)
Section 2301.—
Section 2301(f)(3)(A)(ii) of the Housing and Economic Recovery Act of 2008 [Pub. L. 110–289] (42 U.S.C. 5301(f)(3)(A)(ii)) [set out below]—
- “(A)[Amended section 2301(f)(3)(A)(ii) of Pub. L. 110–289, set out below]
- “(B)shall apply with respect to any unexpended or unobligated balances, including recaptured and reallocated funds made available under this Act [see Tables for classification], section 2301 of the Housing and Economic Recovery Act of 2008 (42 U.S.C. 5301 [note]), and the heading ‘Community Planning and Development—Community Development Fund’ in title XII of division A of the American Recovery and Reinvestment Act of 2009 (Public Law 111–5; 123 Stat. 217).
- “(2)
Notice of foreclosure.—
For any amounts made available under this section, under division B, title III of the Housing and Economic Recovery Act of 2008 (42 U.S.C. 5301 [note]), or under the heading ‘Community Planning and Development—Community Development Fund’ in title XII of division A of the American Recovery and Reinvestment Act of 2009 (Public Law 111–5; 123 Stat. 217), the date of a notice of foreclosure shall be deemed to be the date on which complete title to a property is transferred to a successor entity or person as a result of an order of a court or pursuant to provisions in a mortgage, deed of trust, or security deed.”
- “(a)
Direct Appropriations.—
There are appropriated out of any money in the Treasury not otherwise appropriated for the fiscal year 2008, $4,000,000,000, to remain available until expended, for assistance to States and units of general local government (as such terms are defined in section 102 of the Housing and Community Development Act of 1974 (42 U.S.C. 5302)) for the redevelopment of abandoned and foreclosed upon homes and residential properties. - “(b)
Allocation of Appropriated Amounts.—
- “(1)
In general.—
The amounts appropriated or otherwise made available to States and units of general local government under this section shall be allocated based on a funding formula established by the Secretary of Housing and Urban Development (in this title referred to as the ‘Secretary’). - “(2)
Formula to be devised swiftly.—
The funding formula required under paragraph (1) shall be established not later than 60 days after the date of enactment of this section [July 30, 2008]. - “(3)
Criteria.—
The funding formula required under paragraph (1) shall ensure that any amounts appropriated or otherwise made available under this section are allocated to States and units of general local government with the greatest need, as such need is determined in the discretion of the Secretary based on—
- “(A)the number and percentage of home foreclosures in each State or unit of general local government;
- “(B)the number and percentage of homes financed by a subprime mortgage related loan in each State or unit of general local government; and
- “(C)the number and percentage of homes in default or delinquency in each State or unit of general local government.
- “(4)
Distribution.—
Amounts appropriated or otherwise made available under this section shall be distributed according to the funding formula established by the Secretary under paragraph (1) not later than 30 days after the establishment of such formula.
- “(c)
Use of Funds.—
- “(1)
In general.—
Any State or unit of general local government that receives amounts pursuant to this section shall, not later than 18 months after the receipt of such amounts, use such amounts to purchase and redevelop abandoned and foreclosed homes and residential properties. - “(2)
Priority.—
Any State or unit of general local government that receives amounts pursuant to this section shall in distributing such amounts give priority emphasis and consideration to those metropolitan areas, metropolitan cities, urban areas, rural areas, low- and moderate-income areas, and other areas with the greatest need, including those—
- “(A)with the greatest percentage of home foreclosures;
- “(B)with the highest percentage of homes financed by a subprime mortgage related loan; and
- “(C)identified by the State or unit of general local government as likely to face a significant rise in the rate of home foreclosures.
- “(3)
Exception for certain states.—
Each State that has received the minimum allocation of amounts pursuant to the requirement under section 2302 may, to the extent such State has fulfilled the requirements of paragraph (2), distribute any remaining amounts to areas with homeowners at risk of foreclosure or in foreclosure without regard to the percentage of home foreclosures in such areas. - “(4)
Eligible uses.—
Amounts made available under this section may be used to—
- “(A)establish financing mechanisms for purchase and redevelopment of foreclosed upon homes and residential properties, including such mechanisms as soft-seconds, loan loss reserves, and shared-equity loans for low- and moderate-income homebuyers;
- “(B)purchase and rehabilitate homes and residential properties that have been abandoned or foreclosed upon, in order to sell, rent, or redevelop such homes and properties;
- “(C)establish and operate land banks for homes and residential properties that have been foreclosed upon[;]
- “(D)demolish blighted structures; and
- “(E)redevelop demolished or vacant properties.
- “(d)
Limitations.—
- “(1)
On purchases.—
Any purchase of a foreclosed upon home or residential property under this section shall be at a discount from the current market appraised value of the home or property, taking into account its current condition, and such discount shall ensure that purchasers are paying below-market value for the home or property. - “(2)
Rehabilitation.—
Any rehabilitation of a foreclosed-upon home or residential property under this section shall be to the extent necessary to comply with applicable laws, codes, and other requirements relating to housing safety, quality, and habitability, in order to sell, rent, or redevelop such homes and properties. Rehabilitation may include improvements to increase the energy efficiency or conservation of such homes and properties or provide a renewable energy source or sources for such homes and properties. - “(3)
Sale of homes.—
If an abandoned or foreclosed upon home or residential property is purchased, redeveloped, or otherwise sold to an individual as a primary residence, then such sale shall be in an amount equal to or less than the cost to acquire and redevelop or rehabilitate such home or property up to a decent, safe, and habitable condition.
- “(e)
Rules of Construction.—
- “(1)
In general.—
Except as otherwise provided by this section, amounts appropriated, revenues generated, or amounts otherwise made available to States and units of general local government under this section shall be treated as though such funds were community development block grant funds under title I of the Housing and Community Development Act of 1974 (42 U.S.C. 5301 et seq.). - “(2)
No match.—
No matching funds shall be required in order for a State or unit of general local government to receive any amounts under this section.
- “(f)
Authority to Specify Alternative Requirements.—
- “(1)
In general.—
In administering any amounts appropriated or otherwise made available under this section, the Secretary may specify alternative requirements to any provision under title I of the Housing and Community Development Act of 1974 [42 U.S.C. 5301 et seq.] (except for those related to fair housing, nondiscrimination, labor standards, and the environment) in accordance with the terms of this section and for the sole purpose of expediting the use of such funds. - “(2)
Notice.—
The Secretary shall provide written notice of its intent to exercise the authority to specify alternative requirements under paragraph (1) to the Committee on Banking, Housing and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives not later than 10 business days before such exercise of authority is to occur. - “(3)
Low and moderate income requirement.—
- “(A)
In general.—
Notwithstanding the authority of the Secretary under paragraph (1)—
- “(i)all of the funds appropriated or otherwise made available under this section shall be used with respect to individuals and families whose income does not exceed 120 percent of area median income; and
- “(ii)not less than 25 percent of the funds appropriated or otherwise made available under this section shall be used to house individuals or families whose incomes do not exceed 50 percent of area median income.
- “(B)
Recurrent requirement.—
The Secretary shall, by rule or order, ensure, to the maximum extent practicable and for the longest feasible term, that the sale, rental, or redevelopment of abandoned and foreclosed upon homes and residential properties under this section remain affordable to individuals or families described in subparagraph (A).
- “(g)
Periodic Audits.—
In consultation with the Secretary of Housing and Urban Development, the Comptroller General of the United States shall conduct periodic audits to ensure that funds appropriated, made available, or otherwise distributed under this section are being used in a manner consistent with the criteria provided in this section.
- “(a)
In General.—
None of the funds made available under this title or title IV [122 Stat. 2854] shall be distributed to—
- “(1)an organization which has been indicted for a violation under Federal law relating to an election for Federal office; or
- “(2)an organization which employs applicable individuals.
- “(b)
Applicable Individuals Defined.—
In this section, the term ‘applicable individual’ means an individual who—
- “(1)
is—
- “(A)employed by the organization in a permanent or temporary capacity;
- “(B)contracted or retained by the organization; or
- “(C)acting on behalf of, or with the express or apparent authority of, the organization; and
- “(2)has been indicted for a violation under Federal law relating to an election for Federal office.
- “(a)
In General.—
The Secretary of Housing and Urban Development shall, for not less than 10 jurisdictions that are metropolitan cities or urban counties for purposes of title I of the Housing and Community Development Act of 1974 [42 U.S.C. 5301 et seq.], grant exceptions not later than 90 days after the date of the enactment of this Act [Oct. 21, 1998] for such jurisdictions that provide that—
- “(1)for purposes of the HOME investment partnerships program under title II of the Cranston-Gonzalez National Affordable Housing Act [42 U.S.C. 12721 et seq.], the limitation based on percentage of median income that is applicable under section 104(10), 214(1)(A), or 215(a)(1)(A) [42 U.S.C. 12704(10), 12744(1)(A), 12745(a)(1)(A)] for any area of the jurisdiction shall be the numerical percentage that is specified in such section; and
- “(2)for purposes of the community development block grant program under title I of the Housing and Community Development Act of 1974 [42 U.S.C. 5301 et seq.], the limitation based on percentage of median income that is applicable pursuant to section 102(a)(20) [42 U.S.C. 5302(a)(20)] for any area within the State or unit of general local government shall be the numerical percentage that is specified in subparagraph (A) of such section.
- “(b)
Effective Date.—
This section shall take effect on the date of the enactment of this Act [Oct. 21, 1998].”
- “(a)
Findings.—
The Congress finds that—
- “(1)for the past 50 years, the Federal Government has taken the leading role in enabling the people of the Nation to be the best housed in the world, and recent reductions in Federal assistance have contributed to a deepening housing crisis for low- and moderate-income families;
- “(2)the efforts of the Federal Government have included a system of specialized lending institutions, favorable tax policies, construction assistance, mortgage insurance, loan guarantees, secondary markets, and interest and rental subsidies, that have enabled people to rent or buy affordable, decent, safe, and sanitary housing; and
- “(3)the tragedy of homelessness in urban and suburban communities across the Nation, involving a record number of people, dramatically demonstrates the lack of affordable residential shelter, and people living on the economic margins of our society (lower income families, the elderly, the working poor, and the deinstitutionalized) have few available alternatives for shelter.
- “(b)
Purpose.—
The purpose of this Act [see Short Title of 1988 Amendment note above], therefore, is—
- “(1)to reaffirm the principle that decent and affordable shelter is a basic necessity, and the general welfare of the Nation and the health and living standards of its people require the addition of new housing units to remedy a serious shortage of housing units for all Americans, particularly for persons of low and moderate income;
- “(2)to make the distribution of direct and indirect housing assistance more equitable by providing Federal assistance for the less affluent people of the Nation;
- “(3)to provide needed housing assistance for homeless people and for persons of low and moderate income who lack affordable, decent, safe, and sanitary housing; and
- “(4)to reform existing programs to ensure that such assistance is delivered in the most efficient manner possible.”
- “(a)
In General.—
This Act and the amendments made by this Act [see Short Title of 1988 Amendment note above] may not be construed to provide for new budget authority, budget outlays, or new entitlement authority, for fiscal year 1988 in excess of the appropriate aggregate levels established by the concurrent resolution on the budget for such fiscal year for the programs authorized by this Act and the amendments made by this Act. - “(b)
Definitions.—
For purposes of this section, the terms ‘budget authority’, ‘budget outlays’, ‘concurrent resolution on the budget’, and ‘entitlement authority’ have the meanings given such terms in section 3 of the Congressional Budget Act of 1974 (2 U.S.C. 622).”