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the Secretary approves as part of the Community De

velopment Program;

(9) relocation payments and assistance for individ

uals, families, businesses, organizations, and farm oper

ations displaced by activities assisted under this chapter; (10) activities necessary (A) to develop a comprehensive plan, and (B) to develop a policy-planning

management capacity so that the recipient of assistance under this chapter may more rationally and effectively (i) determine its needs, (ii) set long-term goals and short-term objectives, (iii) devise programs and activ

ities to meet these goals and objectives, (iv) evaluate the progress of such programs in accomplishing these goals and objectives, and (v) carry out management, coordination, and monitoring activities necessary for effective planning implementation; and

(11) payment of reasonable administrative costs related to the planning and execution of programs assisted

under this chapter.

ALLOCATION AND DISTRIBUTION OF FUNDS

SEC. 114. (a) Of the amount approved in an appropria22 tion Act under section 111 for grants in any year, 80 per 23 centum shall be allocated by the Secretary to metropolitan 24 areas. Except as provided in subsections (d) and (f), cach 25 metropolitan city shall be eligible for annual grants in an

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1 aggregate amount not exceeding the greater of its basic 2 grant entitlement amount computed pursuant to subsection 3 (b) or its hold-harmless amount computed pursuant to 4 subsection (c).

5 (b) (1) The Secretary shall allocate for each metro6 politan area an amount which bears the same ratio to the al7 location for all metropolitan areas as the average of the 8 ratios between

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

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

(C) the extent of housing overcrowding in the metropolitan area and that in all metropolitan areas; and (D) the extent of program experience in the metropolitan area and that in all metropolitan areas.

(2) From the amount allocated to each metropolitan 18 area, the Secretary shall determine for each metropolitan city 19 therein a basic grant entitlement amount which shall equal 20 an amount which bears the same ratio to the allocation for 21 the metropolitan area as the average of the ratios between

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(A) the population of the metropolitan city and

that of the metropolitan area;

(B) the extent of poverty in the metropolitan city

and that in the metropolitan area;

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(C) the extent of housing overcrowding in the

metropolitan city and that in the metropolitan area; and

(D) the extent of program experience in the metropolitan city and that in the metropolitan area.

5 (3) The remainder of the allocation for any metro6 politan area shall be allocated by the Secretary for grants to 7 States and units of general local government for use in that 8 metropolitan area, taking into consideration such factors as 9 population, extent of poverty, extent of housing overcrowd10 ing, and other social and fiscal conditions in that metropolitan

11 area.

12 (4) In determining the average of ratios under para13 graph (1) or paragraph (2), the ratio involving the extent 14 of poverty shall be counted twice.

15 (c) The Secretary shall determine the hold-harm16 less amount for each metropolitan city, which shall be an 17 amount equal to the sum of (1) the sum of the average, 18 during the fiscal years 1968 through 1972, of (A) grants 19 pursuant to part A of title I of the Housing Act of 1949, 20 (B) loans pursuant to section 312 of the Housing Act of 21 1964, (C) grants pursuant to sections 702 and 703 of the 22 Housing and Urban Development Act of 1965, and (D) 23 grants pursuant to title VII of the Housing Act of 1961; 24 and (2) the average annual grant made in accordance with 25 part B of title I of the Housing Act of 1949. For the fiscal

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1 years 1976 through 1978, the hold-harmless amount shall 2 include the average annual grant made pursuant to title I 3 of the Demonstration Cities and Metropolitan Development 4 Act of 1966.

5 (d) Whenever the Secretary determines that a metro6 politan city would have, except for the provisions of this 7 subsection, a basic grant entitlement for the first year in an 8 amount exceeding 135 per centum of the city's hold-harm9. less amount, as determined under subsection (c), he shall 10 adjust the amount of such basic grant entitlement over a 11 period not exceeding three years, so that the city's basic grant 12 entitlement will be increased, by such steps as the Secre13 tary determines to be equitable and feasible, from an amount 14 equal to 135 per centum of its hold-harmless amount up to 15 its full basic grant entitlement. Any amounts not used by 16 virtue of the operation of the preceding sentence shall be 17 available for use by the Secretary, first, for hold-harmless 18 purposes in any metropolitan area, and second, for grants to 19 States and units of general local government for use in any 20 metropolitan area.

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(e) Any unit of general local government which is not

a metropolitan city shall be eligible for grants under this

23 part in any year in an aggregate amount at least equal to its 24 hold-harmless amount as computed under the provisions of 25 subsection (c), if, during the five fiscal years preceding

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1 such year, one or more urban renewal projects, neighbor2 hood development programs, or model cities programs were 3 being carried out by such unit of general local government 4 pursuant to commitments for assistance entered into during 5 such five-ycar period under title I of the IIousing Act of 6 1949 or title I of the Demonstration Cities and Metropoli7 tan Development Act of 1966.

8 (f) (1) Any amounts allocated to a metropolitan city 9 pursuant to subsection (b) or (c), and any portion of the re10 mainder of the allocation for a metropolitan area, which are 11 not approved by the Secretary for distribution to such city or 12 in such metropolitan area shall be available for grants to 13 States, metropolitan cities, and other units of general local 14 government for use in any metropolitan area.

15 (2) The Secretary shall make a determination as to the 16 amounts which are to be reallocated pursuant to paragraph (1) not later than sixty days after the beginning of the fiscal 18 year for which the grants are to be made.

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(g) of the amount approved in an appropriation Act under section 111 for grants in any year, 20 per centum shall 21 be allocated by the Secretary.

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[blocks in formation]

(1) first, for hold-harmless purposes outside of metropolitan areas; and

(2) second, for grants to States and units of general

local government for use outside of metropolitan areas,

24-038 O 74 pt. 13

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