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EFFECTIVE DATE OF TITLE II

SEC. 208. The provisions of title II of the Housing Consolidation and Simplification Act of 1971 shall be effective at such date or dates as the Secretary of Housing and Urban Development shall prescribe, but not later than six months after enactment thereof.

TITLE III- MISCELLANEOUS ELIMINATION OF "BASE" REQUIREMENT IN MODEL CITIES PROGRAM Sec. 301. (a) Section 105(c) of the Demonstration Cities and Metropolitan Development Act of 1966 is amended

(1) by inserting a period in the first sentence after the words "city demonstration agency” and striking out the remainder of that sentence; and

(2) by striking out the last sentence. (b) Section 111(b) of such Act is amended by inserting a period in the second sentence after the words "less than 100,000” and striking out the remainder of that sentence.

LABOR STANDARDS EXCEPTION SEC. 302. Section 1 of the Davis-Bacon Act, as amended (49 Stat. 1011), is amended by inserting before the period at the end thereof the following: “: Provided, That the provisions of this section shall not apply to a contract for the repair of a one-to four-family residence acquired by the Secretary of Housing and Urban Development under a contract of mortgage insurance if the aggregate amount of such repair contract is not in excess of $5,000.”

REMOVAL OF SUBLIMITATION ON LOANS TO HOSPITALS UNDER THE COLLEGE

HOUSING PROGRAM

Sec. 303. Section 401(d) of the Housing Act of 1950 is amended by striking out the second proviso before the period in paragraph (1).

NEW COMMUNITY DEVELOPMENT CORPORATION

Sec. 304. The Housing and Urban Development Act of 1970 is amended by striking out the name “Community Development Corporation” wherever it occurs in that Act and inserting in lieu thereof "New Community Development Corporation".

AUTHORIZATION FOR COLLEGE HOUSING DEBT SERVICE GRANTS

SEC. 305. Section 401(f)(2) of the Housing Act of 1950 is amended by striking out “and by $12,000,000 on July 1, 1971” and inserting in lieu thereof "by $12,000,000 on July 1, 1971, and by such sums as may be necessary thereafter'.

INTERSTATE LAND SALES FULL DISCLOSURE ACT

Sec. 306. Section 1403 of the Housing and Urban Development Act of 1968 is amended by adding at the end thereof the following new subsection:

"(c) The Secretary may from time to time, pursuant to rules and regulations issued by him, exempt from any provision of this title any person who holds in his name as a fiduciary the legal title to land with respect to which a statement of record is required to be filed by this title where the Secretary finds that the enforcement of this title with respect to such person is not necessary in the public interest or for the protection of purchasers.

FLOOD INSURANCE PREMIUM EQUALIZATION PAYMENTS

Sec. 307. Section 1334 of the National Flood Insurance Act of 1968 is amended by deleting subsection (b) and by redesignating subsection "(c)” as subsection "(b)".

SURPLUS PROPERTY

SEC. 308. Section 414 of the Housing and Urban Development Act of 1969 is amended to read as follows:

"(a) Notwithstanding the provisions of the Federal Property and Administrative Services Act of 1949, any surplus real property within the meaning of such Act may, in the discretion of the Administrator of General Services, be made available at the request of the Secretary of Housing and Urban Development for disposition in accordance with a plan approved by him (1) for land development which is in furtherance of a new community development or a major development or redevelopment program having communitywide impact, or (2) for the provision of housing and related public, commercial, and industrial facilities. Property which is to be used for the provision of housing is authorized to be assigned to the Secretary for sale or lease by him at its market value or, in the case of property to be used in the provision of housing to be occupied by families or individuals of low or moderate income, at its fair value for use in the provision of such housing. Property which is to be used for other purposes approved in the plan may be disposed of by the Administrator in accordance with applicable law governing the disposition of surplus real property.

(H.R. 8853, 92d Cong., first sess.) A BILL To provide Federal revenues to State and local governments and afford them broad discretion in

carrying out community development activities and to help States and localities to improve their decisionmaking and management capabilities

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the “Community Development Act of 1971”.

TITLE I-URBAN COMMUNITY DEVELOPMENT

SHORT TITLE

Sec. 101. This title may be cited as the “Urban Community Development Revenue Sharing Act of 1971”.

STATEMENT OF FINDINGS AND PURPOSE

Sec. 102. (a) The Congress finds and declares that

(1) The Nation's welfare requires an improved system of Federal assistance for community development which will preserve and enhance the physical and social environment and improve the quality of life in the Nation.

(2) The delivery of effective community development programs and activities is essentially a local responsibility and there is a need to strengthen the capacity of units of general local government and States to deal with community problems relating to development, revitalization, and growth.

(3) The effectiveness of community development would be improved by making resources for such purposes available to units of general local government and States to use with broad discretion in evaluating their community development needs and allocating resources to meet those needs.

(4) The Federal Government should make available to units of general local government and States a wide range of assistance and support to improve the effectiveness of community development activities.

(b) It is therefore the purpose of this title to establish a flexible and improved system of Federal assistance by sharing Federal revenues designed to promote sound and equitable community development, revitalization, and growth. The Federal assistance is intended to be provided in support of community development activities which contribute to

(1) improving the quality, organization, and accessibility of public services for all citizens;

(2) the elimination and prevention of urban slums, blight, and deterioration;

(3) economic and desirable land uses;

(4) the provision of housing, particulary for low- and moderate-income individuals and families, sufficient to meet community needs and appropriately located in relation to community and commercial facilities and job opportunities;

(5) the development of properly planned community facilities and public improvements;

(6) the preservatioon or restoration of properties and areas of special value for historic reasons;

(7) the conservation and enhancement of both the natural and urban environment;

(8) the provision of adequate recreational opportunities; and

(9) increased order and efficiency in community development and revitalization through the application of well-considered priorities to the investment of Federal, State, and local resources.

DEFINITIONS

or more.

SEC. 103. (a) As used in this title

(1) The term "unit of general local government” means any city, municipality, county, town, township, parish, village, or other general purpose political subdivision of a State; a consortium of such units of general local government recognized by the Secretary; and the District of Columbia.

(2) The term "State” means any State of the United States; the Commonwealth of Puerto Rico; Guam; and the Virgin Islands.

(3) The term "metropolitan areas” means the standard metropolitan statistical areas, as established by the Office of Management and Budget.

(4) The term “metropolitan cities” means cities within metropolitan areas which are central cities of metropolitan areas, as defined and used by the Office of Management and Budget, or which are cities having a population of fifty thousand

(5) The term "population” means the total resident population based on data compiled by the United States Bureau of the Census and referable to the same point or period in time.

(6) The term "amount of poverty” means the number of persons (or alternatively, the number of families and unrelated individuals) whose incomes are below the poverty level, as determined pursuant to criteria provided by the Office of Management and Budget, and based on data referable to the same point or period in time.

(7) The term "amount of overcrowding” means the number of housing units with 1.01 or more persons per room based on data compiled by the United States Bureau of the Census and

referable to the same point or period in time. (8) The term "extent of housing deficiencies” means the number of housing units lacking some or all plumbing facilities based on data compiled by the United States Bureau of the Census and referable to the same point or period in time.

(9) The term "Secretary” means the Secretary of Housing and Urban Development.

(b) Where appropriate, the definitions in subsection (a) shall be based on the most recent data compiled by the United States Bureau of the Census and the latest published reports of the Office of Management and Budget on the date of enactment of this Act and ninety days prior to the beginning of each subsequent fiscal year. The Secretary may by regulation change or otherwise modify the definitions in subsection (a) in order to reflect any change or modification thereof made subsequent to such date by the United States Bureau of the Census or the Office of Management ond Budget.

COMMUNITY DEVELOPMENT ACTIVITIES ELIGIBLE FOR ASSISTANCE

Sec. 104. (a) Community development activities assisted under this title may include

(1) acquisition of real property (including air rights, water rights, and other interests therein) which is (i) blighted, deteriorated, deteriorating, undeveloped, or inappropriately developed from the standpoint of sound community development and growth, (ii) necessary 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, (iii) to be used for the provision of public works, facilities, and improvements eligible for assistance under this title, or (iv) for other public purposes;

(2) relocation payments and assistance for individuals, families, businesses, and farm operations displaced by community development activities;

(3) clearance, demolition, removal, and rehabilitation of buildings and improvements (including financing rehabilitation of privately owned properties when incidental to other activities);

(4) acquisition, construction, reconstruction, or installation of public works, facilities, and site or other improvements—including water and sewer facilities, neighborhood facilities, historic properties, utilities, streets, street lights, foundations and platforms for air right sites, pedestrian malls and walkways, parks, and playgrounds;

(5) elimination, by code enforcement and other means, of harmful physical conditions constituting a danger to public health and safety; and

(6) disposition (through sale, lease, donation, or otherwise) of any real property acquired pursuant to this title or its retention for public purposes. (b) In addition to any other authority provided under subsection (a) or otherwise, community development activities may include the types of activities for which supplemental grants are authorized under title I of the Demonstration Cities and Metropolitan Development Act of 1966.

AUTHORIZATION OF APPROPRIATIONS

Sec. 105. For the purpose of carrying out this title, there are authorized to be appropriated without fiscal year limitation such sums as may be necessary for each fiscal year.

ALLOCATION AND DISTRIBUTION OF FUNDS

Sec. 106. (a) Of the amounts provided from appropriations authorized by section 105 for any fiscal year, at least 80 per centum shall be allocated by the Secretary for special revenue sharing payments for all metropolitan areas, as provided by subsection (b).

(b)(1) The Secretary shall allocate for each metropolitan area an amount which bears the same ratio to the allocation for all metropolitan areas as the average of the ratios between

(A) the population of the metropolitan area and that of all metropolitan areas;

(B) the amount of poverty in the metropolitan area and that in all metropolitan areas;

(C) the amount of overcrowding in the metropolitan area and that in all metropolitan areas; and

(D) the extent of housing deficiencies in the metropolitan area and that in all metropolitan areas. (2) From the amount allocated to each metropolitan area, the Secretary shall distribute to each metropolitan city within that area special revenue sharing payments, in an amount which bears the same ratio to the allocation for all metropolitan areas as the average of the ratios between

(A) the population for the metropolitan city and that of all metropolitan areas;

(B) the amount of poverty in the metropolitan city and that in all metropolitan areas;

(C) the amount of overcrowding in the metropolitan city and that in all metropolitan areas; and

(D) the extent of housing deficiencies in the metropolitan city and that in all metropolitan areas. (3) The remainder of the allocation for each metropolitan area shall be distributed by the Secretary as special revenue sharing payments to units of general local government within that metropolitan area, taking into consideration such factors as population, amount of poverty, amount of overcrowding, extent of housing deficiencies, and other social and fiscal conditions prevailing in the metropolitan area. Any portion of the remainder of the allocation for each metropolitan area undistributed at the end of the fiscal year in which it was allocated shall remain available for use within that metropolitan area.

(c) Any other funds available for any fiscal year to carry out this title may be distributed by the Secretary as special revenue sharing payments to units of general local government and States for community development activities, subject to such terms and conditions as he may prescribe. Until such time as a metropolitan city is eligible to receive funds and carry out activities as provided by this title or in the event that such a city refuses to accept such funds, the special revenue sharing payments which it would have received under subsection (b)(2) shall be added to the funds available for distribution by the Secretary under this subsection.

(d) In addition to appropriations authorized by section 105, there are authorized to be appropriated without fiscal year limitation such sums as may be necessary for distribution by the Secretary under subsection (c) to cities having a population of less than 50,000.

(e) All computations and determinations by the Secretary under this section shall be final and conclusive.

PAYMENTS TO RECIPIENTS

Sec. 107. The amounts appropriated and allocated pursuant to this title shall be paid to the recipients at such intervals and in such installments as the Secretary may determine, taking account of the objective that the time elapsing between the transfer of funds from the United States Treasury and the disbursement thereof by a recipient shall be minimized: Provided, That the Secretary shall, with the concurrence of the Director of the Office of Management and Budget, prescribe regulations for the purpose of avoiding an inordinate rise in Federal outlays in the fiscal years 1972, 1973, and 1974 resulting from concurrent disbursements pursuant to (a) obligations incurred under the statutory provisions replaced by this title, and (b) revenue shared under this title.

STATEMENTS OF COMMUNITY DEVELOPMENT ACTIVITIES

SEC. 108. Prior to the receipt of any funds under this title for any fiscal year commencing with the fiscal year 1973 (and at least two months prior to the beginning of the appropriate fiscal year), each recipient of funds under this title shall publish and make available to the Secretary (and, in the case of recipient units of general local government, to the Governor of the State in which they are located, as well) a statement of community development objectives and projected uses of funds. The purpose of such statement shall be to permit examination and appraisal of community development activities carried out under this title, to enhance the public accountability of recipients of shared Federal revenues, and to facilitate coordination of activities at different levels of government. The statement shall reflect the degree to which activities assisted under this title relate to State and areawide programs and activities for community development.

RECORDS, AUDIT, AND REPORTS Sec. 109. (a) All revenue shared with recipients under this title shall be prop erly accounted for as Federal funds in the accounts of such recipients.

(b) In order to assure that revenue shared under this title is used in accordance with the provisions of this title each recipient shall

(1) use such fiscal and accounting procedures as may be necessary to assure (i) proper accounting for payments received by it and (ii) proper disbursement of such amounts;

(2) provide to the Secretary, on reasonable notice, such access to, and such right to examine, any books, documents, papers, or records, as he may reasonable require; and

(3) make such reports to the Secretary as he may reasonably require.

RECOVERY OF FUNDS

Sec. 110. (a) If the Secretary determines after giving reasonable notice and opportunity for hearing that a recipient has failed to comply substantially with the provisions of this title, he shall

(1) refer the matter to the Attorney General of the United States with a recommendation that an appropriate civil action be instituted; or

(2) notify the recipient that if corrective action is not taken within sixty days from the date of such notification, revenues shared with it will be reduced in the same or succeeding fiscal year by an amount equal to the amount of funds which were not expended in accordance with the provisions of this title; or

(3) take such other action as may be provided by law. (b) When a matter is referrd to the Attorney General pursuant to subsection (a)(1), the Attorney General may bring a civil action in any appropriate United States district court for such relief as may be appropriate, including injunctive relief.

(c)(1) Any recipient which receives notice of reduction of revenues shared, under subsection (a) (2), may, within sixty days after receiving notice of such reduction, file with the United States court of appeals for the circuit in which such receipient is located or in the United States Court of Appeals for the District of Columbia, a petition for review of the Secretary's action. The petitioner shall forthwith transmit copies of the petition to the Secretary and the Attorney General of the United States, who shall represent the Secretary in litigation.

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