SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Rural Recovery Act of 1998''.

SEC. 2. RURAL RECOVERY COMMUNITY DEVELOPMENT BLOCK GRANTS.

    Title I of the Housing and Community Development Act of 1974 (42 
U.S.C. 5301 et seq.) is amended by adding at the end the following:

``SEC. 123. RURAL RECOVERY COMMUNITY DEVELOPMENT BLOCK GRANTS.

    ``(a) Findings; Purpose.--
            ``(1) Findings.--Congress finds that--
                    ``(A) a modern infrastructure, including affordable 
                housing, wastewater and water service, and advanced 
                technology capabilities is a necessary ingredient of a 
                modern society and development of a prosperous economy 
                with minimal environmental impacts;
                    ``(B) the Nation's rural areas face critical 
                social, economic, and environmental problems, arising 
                in significant measure from the growing cost of 
                infrastructure development in rural areas that suffer 
                from low per capita income and high rates of 
                outmigration and are not adequately addressed by 
                existing Federal assistance programs; and
                    ``(C) the future welfare of the Nation and the 
                well-being of its citizens depend on the establishment 
                and maintenance of viable rural areas as social, 
                economic, and political entities.
            ``(2) Purpose.--The purpose of this section is to provide 
        for the development and maintenance of viable rural areas 
        through the provision of affordable housing and community 
        development assistance to eligible units of general local 
        government and eligible Indian tribes in rural areas with 
        excessively high rates of outmigration and low per capita 
        income levels.
    ``(b) Definitions.--In this section:
            ``(1) Eligible unit of general local government.--The term 
        `eligible unit of general local government' means a unit of 
        general local government that is the governing body of a rural 
        recovery area.
            ``(2) Eligible indian tribe.--The term `eligible Indian 
        tribe' means the governing body of an Indian tribe that is 
        located in a rural recovery area.
            ``(3) Grantee.--The term `grantee' means an eligible unit 
        of general local government or eligible Indian tribe that 
        receives a grant under this section.
            ``(4) Indian tribe.--The term `Indian tribe' means any 
        Indian tribe, band, group, and nation, including Alaska 
        Indians, Aleuts, and Eskimos, and any Alaskan Native Village, 
        of the United States, which is considered an eligible recipient 
        under the Indian Self-Determination and Education Assistance 
        Act (Public Law 93-638) or was considered an eligible recipient 
        under chapter 67 of title 31, United States Code, prior to the 
        repeal of such chapter.
            ``(5) Rural recovery area.--The term `rural recovery area' 
        means any geographic area represented by a unit of general 
        local government or an Indian tribe--
                    ``(A) the borders of which are not adjacent to a 
                metropolitan area;
                    ``(B) in which--
                            ``(i) the annual population outmigration 
                        level equals or exceeds 15 percent, as 
                        determined by Secretary of Agriculture; and
                            ``(ii) the per capita income is less than 
                        that of the national nonmetropolitan average; 
                        and
                    ``(C) that does not include a city with a 
                population of more than 2,500.
            ``(6) Unit of general local government.--
                    ``(A) In general.--The term `unit of general local 
                government' means any city, county, town, township, 
                parish, village, borough (organized or unorganized), or 
                other general purpose political subdivision of a State; 
                Guam, the Northern Mariana Islands, the Virgin Islands, 
                Puerto Rico, and American Samoa, or a general purpose 
                political subdivision thereof; a combination of such 
                political subdivisions that, except as provided in 
                section 106(d)(4), is recognized by the Secretary; the 
                District of Columbia; and the Trust Territory of the 
                Pacific Islands.
                    ``(B) Other entities included.--The term also 
                includes a State or a local public body or agency (as 
                defined in section 711 of the Housing and Urban 
                Development Act of 1970), community association, or 
                other entity, that is approved by the Secretary for the 
                purpose of providing public facilities or services to a 
                new community as part of a program meeting the 
                eligibility standards of section 712 of the Housing and 
                Urban Development Act of 1970 or title IV of the 
                Housing and Urban Development Act of 1968.
    ``(c) Grant Authority.--The Secretary may make grants in accordance 
with this section to eligible units of general local government and 
eligible Indian tribes that meet the requirements of subsection (d) to 
carry out eligible activities described in subsection (f).
    ``(d) Eligibility Requirements.--
            ``(1) Statement of rural development objectives.--In order 
        to receive a grant under this section for a fiscal year, an 
        eligible unit of general local government or eligible Indian 
        tribe--
                    ``(A) shall--
                            ``(i) publish a proposed statement of rural 
                        development objectives and a description of the 
                        proposed eligible activities described in 
                        subsection (f) for which the grant will be 
                        used; and
                            ``(ii) afford residents of the rural 
                        recovery area served by the eligible unit of 
                        general local government or eligible Indian 
                        tribe with an opportunity to examine the 
                        contents of the proposed statement and the 
                        proposed eligible activities published under 
                        clause (i), and to submit comments to the 
                        eligible unit of general local government or 
                        eligible Indian tribe, as applicable, on--
                                    ``(I) the proposed statement and 
                                the proposed eligible activities; and
                                    ``(II) the overall community 
                                development performance of the eligible 
                                unit of general local government or 
                                eligible Indian tribe, as applicable; 
                                and
                    ``(B) based on any comments received under 
                subparagraph (A)(ii), prepare and submit to the 
                Secretary--
                            ``(i) a final statement of rural 
                        development objectives;
                            ``(ii) a description of the eligible 
                        activities described in subsection (f) for 
                        which a grant received under this section will 
                        be used; and
                            ``(iii) a certification that the eligible 
                        unit of general local government or eligible 
                        Indian tribe, as applicable, will comply with 
                        the requirements of paragraph (2).
            ``(2) Public notice and comment.--In order to enhance 
        public accountability and facilitate the coordination of 
        activities among different levels of government, an eligible 
        unit of general local government or eligible Indian tribe that 
        receives a grant under this section shall, as soon as 
        practicable after such receipt, provide the residents of the 
        rural recovery area served by the eligible unit of general 
        local government or eligible Indian tribe, as applicable, 
        with--
                    ``(A) a copy of the final statement submitted under 
                paragraph (1)(B);
                    ``(B) information concerning the amount made 
                available under this section and the eligible 
                activities to be undertaken with that amount;
                    ``(C) reasonable access to records regarding the 
                use of any amounts received by the eligible unit of 
                general local government or eligible Indian tribe under 
                this section in any preceding fiscal year; and
                    ``(D) reasonable notice of, and opportunity to 
                comment on, any substantial change proposed to be made 
                in the use of amounts received under this section from 
                1 eligible activity to another.
    ``(e) Distribution of Grants.--
            ``(1) In general.--In each fiscal year, the Secretary shall 
        distribute to each eligible unit of general local government 
        and eligible Indian tribe that meets the requirements of 
subsection (d)(1) a grant in an amount described in paragraph (2).
            ``(2) Amount.--Of the total amount made available to carry 
        out this section in each fiscal year, the Secretary shall 
        distribute to each grantee the amount equal to the greater of--
                    ``(A) the pro rata share of the grantee, as 
                determined by the Secretary, based on the combined 
                annual population outmigration level (as determined by 
                Secretary of Agriculture) and the per capita income for 
                the rural recovery area served by the grantee; and
                    ``(B) $250,000.
    ``(f) Eligible Activities.--Each grantee shall use amounts received 
under this section for 1 or more of the following eligible activities, 
which may be undertaken either directly by the grantee, or by any local 
economic development corporation, regional planning district, nonprofit 
community development corporation, or statewide development 
organization authorized by the grantee:
            ``(1) The acquisition, construction, repair, 
        reconstruction, operation, maintenance, or installation of 
        facilities for water and wastewater service or any other 
        infrastructure needs determined to be critical to the further 
        development or improvement of a designated industrial park.
            ``(2) The acquisition or disposition of real property 
        (including air rights, water rights, and other interests 
        therein) for rural community development activities.
            ``(3) The development of telecommunications infrastructure 
        within a designated industrial park that encourages high 
        technology business development in rural areas.
            ``(4) Activities necessary to develop and implement a 
        comprehensive rural development plan, including payment of 
        reasonable administrative costs related to planning and 
        execution of rural development activities.
            ``(5) Affordable housing initiatives.
    ``(g) Performance and Evaluation Report.--
            ``(1) In general.--Each grantee shall annually submit to 
        the Secretary a performance and evaluation report, concerning 
        the use of amounts received under this section.
            ``(2) Contents.--Each report submitted under paragraph (1) 
        shall include a description of--
                            ``(i) publish a proposed statement of rural 
                        development objectives and a description of the 
                        proposed eligible activities described in 
                        subsection (f) for which the grant will be 
                        used; and
                    ``(A) the eligible activities carried out by the 
                grantee with amounts received under this section, and 
                the degree to which the grantee has achieved the rural 
                development objectives included in the final statement 
                submitted under subsection (d)(1);
                    ``(B) the nature of and reasons for any change in 
                the rural development objectives or the eligible 
                activities of the grantee after submission of the final 
                statement under subsection (d)(1); and
                    ``(C) any manner in which the grantee would change 
                the rural development objectives of the grantee as a 
                result of the experience of the grantee in 
                administering amounts received under this section.
    ``(h) Retention of Income.--A grantee may retain any income that is 
realized from the grant, if--
            ``(1) the income was realized after the initial 
        disbursement of amounts to the grantee under this section; and
            ``(2) the--
                    ``(A) grantee agrees to utilize the income for 1 or 
                more eligible activities; or
                    ``(B) amount of the income is determined by the 
                Secretary to be so small that compliance with 
                subparagraph (A) would create an unreasonable 
                administrative burden on the grantee.
    ``(i) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $50,000,000 for each of fiscal 
years 1999 through 2005.''.
Rural Recovery Act of 1998 - Amends the Housing and Community Development Act of 1974 to provide rural housing and community development assistance through rural recovery community development block grants to eligible local governments and Indian tribes in areas with high rates of outmigration and low per capita income.  Authorizes appropriations.
Rural Recovery Act of 1998