I 

117TH CONGRESS 

1ST SESSION H. R. 2158 

To provide emergency relief assistance under a modified Community Development Block Grant program for communities facing economic damage 

from civil and social crises, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 23, 2021 

Ms. OMAR (for herself, Ms. NORTON, Mrs. HAYES, Mr. JONES, Mr. BOWMAN, 

Ms. JACOBS of California, Ms. MCCOLLUM, Mr. GARCI ́A of Illinois, Ms. 

SCHAKOWSKY, Mr. MFUME, Ms. LEE of California, Mrs. WATSON COLEMAN, Mr. PANETTA, Ms. PRESSLEY, Ms. TLAIB, Mr. HASTINGS, Mr. 

JOHNSON of Georgia, Mr. CARSON, Ms. JAYAPAL, and Mr. RUPPERSBERGER) introduced the following bill; which was referred to the Committee on Financial Services 

A BILL 

To provide emergency relief assistance under a modified 

Community Development Block Grant program for communities facing economic damage from civil and social 

crises, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Holistic Economic Aid 

5 for Low-Income Neighborhood Growth Act of 2021’’ or 

6 the ‘‘HEALING Act of 2021’’. 


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1 SEC. 2. SENSE OF CONGRESS. 

2 It is the sense of the Congress that— 

3 (1) funds made available under the Community 

4 Development Block Grant Program (‘‘CDBG’’) 

5 should be used principally for low- and moderate-in6 come neighborhoods and can be used for community 

7 revitalization in areas affected by social and civil un8 rest during 2020; 

9 (2) CDBG funding must target historically 

10 disinvested communities of color that have suffered 

11 from long-standing systemic issues of racial injustice 

12 and economic inequality; 

13 (3) minority-serving institutions should be 

14 prioritized in receiving and administering economic 

15 development grants for their communities; 

16 (4) economic activities carried out using CDBG 

17 funds should be refocused on the implementation of 

18 direct anti-poverty programming with evidence of ef19 fectiveness, such as food security initiatives and 

20 basic income pilots, acquisition and rehabilitation of 

21 affordable housing, improvement to public facilities, 

22 including health centers, provision of public services, 

23 restoration of natural areas and other conservation 

24 efforts, and construction of clean energy infrastruc25 ture; 


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1 (5) minority-owned businesses should be 

2 prioritized in receiving business development grants 

3 to renovate their properties and create financial op4 portunities for their communities; and 

5 (6) CDBG business activities should be re6 focused on assisting private, for-profit businesses 

7 that pursue job creation and retention efforts 

8 through the employment of low- and moderate-in9 come persons, adopt environmentally sustainable 

10 practices to offer affordable goods and services to 

11 low- and moderate-income neighborhoods, and pro12 vide economic and technical assistance to other busi13 nesses based in low- and moderate-income areas. 

14 SEC. 3. FUNDING. 

15 (a) AUTHORIZATION OF APPROPRIATIONS.—There is 

16 authorized to be appropriated to the Secretary of Housing 

17 and Urban Development $11,000,000,000 for fiscal year 

18 2022 for providing assistance under this Act. 

19 (b) NON-BUSINESS COMMUNITY DEVELOPMENT

20 FUNDING.—Of any amounts made available pursuant to 

21 subsection (a), 77 percent shall be available for assistance 

22 under section 4 for community revitalization and economic 

23 development activities. 

24 (c) CIVIL UNREST BUSINESS DEVELOPMENT FUND25 ING.—Of any amounts made available pursuant to subVerDate Sep 11 2014 22:11 May 26, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H2158.IH H2158

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1 section (a), 23 percent shall be available for assistance 

2 under section 5 for business recovery and renovation ac3 tivities. 

4 (d) ADMINISTRATIVE FUNDING.—Of any amounts 

5 available pursuant to subsection (a), the Secretary of 

6 Housing and Urban Development may use not more than 

7 1 percent for costs of administering the program under 

8 this Act. 

9 (e) TERMINATION OF FUNDS.—Upon the expiration 

10 of the 2-year period beginning upon the date of the enact11 ment of this Act, any programming and rulemaking asso12 ciated with the program shall expire. 

13 SEC. 4. NON-BUSINESS GRANTS FOR COMMUNITY REVITAL14 IZATION AND ECONOMIC DEVELOPMENT. 

15 (a) GRANT AUTHORITY.—The Secretary shall use 

16 amounts made available to carry out this section to make 

17 grants to States, units of general local government, Indian 

18 Tribes, insular areas, and eligible institutions serving or 

19 owned by minorities for use to carry out eligible non-busi20 ness activities under subsection (e) in low- and moderate21 income areas. 

22 (b) RESERVATION OF FUNDING.—Of any amounts 

23 made available to carry out this section, the Secretary 

24 shall reserve for grants under this section— 


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1 (1) 76 percent for allocation in accordance with 

2 subsection (c)(1); 

3 (2) 18 percent for allocation for minority-owned 

4 and minority-serving entities in accordance with sub5 section (c)(2); and 

6 (3) 6 percent for allocation for Indian Tribes 

7 and insular areas in accordance with subsection 

8 (c)(3). 

9 (c) ALLOCATIONS.— 

10 (1) ENTITLEMENT COMMUNITIES AND NON11 ENTITLEMENT AREAS.—Of the amount allocated 

12 under subsection (b)(1)— 

13 (A) 70 percent shall be allocated for enti14 tlement communities in accordance with the 

15 formula under section 106(b) of the Housing 

16 and Community Development Act of 1974 (42 

17 U.S.C. 5306(b)); and 

18 (B) 30 percent shall be allocated to States, 

19 for use in nonentitlement areas, in accordance 

20 with the formula under section 106(d)(1) of the 

21 Housing and Community Development Act of 

22 1974 (42 U.S.C. 5306(d)(1)). 

23 (2) COMPETITIVE AWARDS TO MINORITY24 OWNED ENTITIES.— 


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1 (A) IN GENERAL.—The Secretary of Hous2 ing and Urban Development shall allocate the 

3 amount allocated under subsection (b)(3) di4 rectly and on a competitive basis for grants to 

5 eligible minority-owned entities and minority6 serving entities. 

7 (B) COMPETITION.—Allocation for non8 business grants under this paragraph shall be 

9 made pursuant to a competition for such 

10 grants, as the Secretary shall provide, that— 

11 (i) takes into account the need for 

12 grant assistance for the area in which, and 

13 for the activities for which the grant 

14 amounts will be used; and 

15 (ii) provides grant amount only to ap16 plicants who will carry out activities as17 sisted with such grant amounts only in 

18 low- and moderate-income areas. 

19 (C) CDBG SPECIAL PURPOSE GRANTS.— 

20 Of the amount allocated under subsection 

21 (b)(2), not less than 33 percent shall be allo22 cated for grants under this section for minority23 serving entities. 

24 (D) VOUCHER PROGRAM.—The Secretary 

25 shall take such actions as may be necessary to 


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1 ensure that grants under this paragraph are ac2 cessible to newer and smaller minority-owned 

3 entities and ensure that technical assistance is 

4 prioritized and provided to organizations with 

5 little or no grant-writing capacity. 

6 (3) COMPETITIVE AWARDS TO INDIAN TRIBES

7 AND INSULAR AREAS.— 

8 (A) IN GENERAL.—The Secretary of Hous9 ing and Urban Development shall allocate for 

10 grants to Indian Tribes and insular areas on a 

11 competitive basis the amount allocated under 

12 subsection (b)(4). 

13 (B) REQUIREMENTS.—In making alloca14 tions under this paragraph, the Secretary shall, 

15 to the greatest extent practicable, ensure that 

16 each Indian Tribe and each insular area that 

17 satisfies low- to moderate-income requirements 

18 and unmet need criteria, as determined by the 

19 Secretary, receives such an allocation. 

20 (d) COORDINATION.—The Secretary shall monitor 

21 the reporting requirements and disclosures of allocated ex22 penditures as set forth in section 6(e), to coordinate with 

23 grantees and subgrantees to ensure there are no overpay24 ments or duplication of benefits. 

25 (e) ELIGIBLE NON-BUSINESS ACTIVITIES.— 


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1 (1) PRIMARY OBJECTIVES.—Amounts from a 

2 grant under this section may be used by a grantee 

3 or subgrantee only for activities specified under 

4 paragraph (2) that— 

5 (A) principally benefit households having 

6 incomes that do not exceed 50 percent of the 

7 median income of the area in which such house8 holds reside; 

9 (B) aid in the prevention or elimination of 

10 slums or blight primarily for severely economi11 cally distressed communities (as such term is 

12 defined in section 610 of the National and 

13 Community Service Act of 199 (42 U.S.C. 

14 12645d)), and historically disinvested commu15 nities, including high-poverty areas (as such 

16 term is defined in section 681.260 of title 20, 

17 Code of Federal Regulations) and persistent 

18 poverty counties (as such term is defined in the 

19 Department of Agriculture notice entitled ‘‘Im20 plementation of Certain Provisions of Consoli21 dated Appropriations Act, 2020 Specific to Per22 sistent Poverty Counties’’ [Docket No. RBS– 

23 20–BUSINESS–0033], published in the Fed24 eral Register on August 21, 2020 (85 Fed. Reg. 

25 51676)); 


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1 (C) reduce the isolation and inequality of 

2 income groups within communities and geo3 graphical areas and the promotion of an in4 crease in the diversity and vitality of neighbor5 hoods through the spatial deconcentration of 

6 housing opportunities for persons of lower in7 come and the revitalization of deteriorating or 

8 deteriorated neighborhoods; 

9 (D) conserve and expand the housing stock 

10 in order to provide a decent home and a suit11 able living environment for all persons, but 

12 principally those of low and moderate income, 

13 and expand the number of community land 

14 trust, cooperative, municipal, and public hous15 ing units as a ratio of total housing stock; 

16 (E) expand and enhance the quantity and 

17 quality of community services, principally for 

18 persons of low and moderate income, that are 

19 evidenced-based and essential for sound commu20 nity development and for the development of 

21 viable urban communities; 

22 (F) improve the rational utilization of land 

23 and other natural resources and the better ar24 rangement of residential, commercial, indus25 trial, recreational, and other needed activity 


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1 centers, including parks, green spaces, and 

2 walking trails; 

3 (G) conserve scarce energy resources, im4 prove energy efficiency, or provide alternative 

5 and renewable energy sources, especially for en6 vironmental justice communities that have 

7 harmful environmental quality issues; 

8 (H) restore and preserve properties of spe9 cial value for historic, architectural, or esthetic 

10 reasons; 

11 (I) alleviate the physical and economic dis12 tress through the stimulation of private invest13 ment and community revitalization in areas 

14 with population outmigration or a stagnating or 

15 declining tax base; 

16 (J) meet an urgent need by addressing 

17 economic conditions that pose a serious and im18 mediate threat to the health and safety of resi19 dents; or 

20 (K) prevent, prepare for, or respond to 

21 coronavirus, based on public health needs, risk 

22 of transmission of coronavirus, number of 

23 coronavirus cases compared to the national av24 erage, and economic and housing market dis25 ruptions, and other factors. 


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1 (2) ACTIVITIES.—Activities specified under this 

2 subsection are as follows: 

3 (A) CDBG ACTIVITIES.—Except as pro4 vided in paragraph (3)(C) of this subsection, 

5 any activity that is eligible for assistance under 

6 section 105(a) of the Housing and Community 

7 Development Act of 1974 (42 U.S.C. 5305(a)). 

8 (B) CDBG SPECIAL PURPOSE GRANTS AC9 TIVITIES.—Any activity that is eligible for as10 sistance under section 107 of such Act (42 

11 U.S.C. 5307). 

12 (C) CASH RELIEF FOR AFFECTED HOUSE13 HOLDS.—Direct income payments by States or 

14 units of general local government to households 

15 having incomes that do not exceed 200 percent 

16 of the Federal poverty level, provided that such 

17 payments otherwise comply with subsection (a) 

18 of this section. 

19 (D) HISTORICAL ARCHIVING.—Activities to 

20 conserve art, construct monuments, and pre21 serve memorials of contemporary civil rights 

22 struggles, such as the George Floyd Memorial 

23 in Minneapolis, Minnesota. 

24 (E) TECHNICAL ASSISTANCE.—Technical 

25 assistance and outreach activities by grantees to 


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1 expand and diversify subgrantees funded with 

2 amounts provided under this section. 

3 (F) INNOVATIVE ACTIVITIES BY MINORITY4 OWNED ACTIVITIES.—Any activity that— 

5 (i) is proposed by a grantee and ap6 proved by the Secretary; and 

7 (ii) complies with subsection (a) of 

8 this section. 

9 (3) PROHIBITIONS.—Amounts from a grant 

10 under this section may not be used to provide assist11 ance for— 

12 (A) any law enforcement agency or to sup13 port or assist any law enforcement activities; 

14 (B) any discriminatory conduct or pro15 gramming, as prohibited by section 109(a) of 

16 the Housing and Community Development Act 

17 of 1974 (42 U.S.C. 5309(a)); 

18 (C) any business support activity described 

19 in section 105(a)(17) of such Act (42 U.S.C. 

20 5305(a)(17)) or any other activity for business 

21 development or business support; or 

22 (D) any ineligible activity described in sec23 tion 570.207 of the Secretary’s regulations (24 

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1 ments authorized by paragraph (2)(C) of this 

2 subsection. 

3 SEC. 5. CIVIL UNREST BUSINESS RECOVERY GRANTS FOR 

4 FINANCIAL RECOVERY AND BUSINESS DE5 VELOPMENT. 

6 (a) GRANT AUTHORITY.—The Secretary, in consulta7 tion with the Secretary of the Treasury and the Adminis8 trator of the Small Business Administration, shall carry 

9 out a Civil Unrest Business Recovery Program under this 

10 section to make grants to States, units of general local 

11 government, Indian Tribes and insular areas to provide 

12 assistance to eligible for-profit entities through local civil 

13 unrest business recovery funds established for the delivery 

14 of business recovery grants that primarily serve to com15 pensate damages from social and civil unrest during 2020 

16 and also support business-led economic development. 

17 (b) RESERVATION OF FUNDING.—Of any amounts 

18 made available to carry out this section, the Secretary 

19 shall reserve— 

20 (1) 80 percent for allocation in accordance with 

21 subsection (c)(1); 

22 (2) 12 percent for allocation for States in ac23 cordance with subsection (b)(2); and 


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1 (3) 8 percent for allocation for Indian Tribes 

2 and insular areas in accordance with subsection 

3 (c)(3). 

4 (c) ALLOCATIONS.— 

5 (1) FORMULA FOR STATES AND UNITS OF GEN6 ERAL LOCAL GOVERNMENT.—Of amount allocated 

7 under subsection (b)(1)— 

8 (A) 70 percent shall be allocated for enti9 tlement communities in accordance with the 

10 formula under section 106(b) of the Housing 

11 and Community Development Act of 1974 (42 

12 U.S.C. 5306(b)); and 

13 (B) 30 percent shall be allocated for 

14 States, for use in nonentitlement areas, in ac15 cordance with the formula under section 

16 106(d)(1) of the Housing and Community De17 velopment Act of 1974 (42 U.S.C. 5306(d)(1)). 

18 (2) RURAL BONUS FORMULA FOR STATES.— 

19 The Secretary shall allocate the amount allocated 

20 under subsection (b)(2) to States, for use in non21 entitlement areas having low-income or minority 

22 populations, in accordance with the formula under 

23 section 106(d)(1) of the Housing and Community 

24 Development Act of 1974 (42 U.S.C. 5306(d)(1)). 


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1 (3) COMPETITIVE AWARDS TO INDIAN TRIBES

2 AND INSULAR AREAS.— 

3 (A) IN GENERAL.—The Secretary of Hous4 ing and Urban Development shall allocate to 

5 Indian Tribes and insular areas on a competi6 tive basis the amount allocated under sub7 section (b)(3). 

8 (B) REQUIREMENTS.—In making alloca9 tions under subsection (b)(3), the Secretary of 

10 Housing and Urban Development shall, to the 

11 greatest extent practicable, ensure that each In12 dian Tribe and each insular area that satisfies 

13 low- to moderate-income requirements and 

14 unmet need criteria, as determined by the Sec15 retary, receives such an allocation. 

16 (d) STATE ALLOCATIONS FOR NONENTITLEMENT

17 AREAS.— 

18 (1) EQUITABLE ALLOCATION.—To the greatest 

19 extent practicable, a State shall allocate amounts al20 located under subsection (c)(1)(B) for use in non21 entitlement areas of the State on an equitable basis. 

22 (2) DISTRIBUTION OF AMOUNTS.— 

23 (A) DISCRETION.—Not later than 14 days 

24 after the date on which a State receives 


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1 amounts for use in an nonentitlement area pur2 suant to subsection (c)(1)(B), the State shall— 

3 (i) distribute the amounts, or a por4 tion thereof, to units of general local gov5 ernment or entities designated thereby, 

6 that have established or will establish civil 

7 unrest business recovery funds, for use 

8 under subsection (e)(1); and 

9 (ii) elect to reserve the amounts, or a 

10 portion thereof, for use by the State under 

11 subsection (e) for the benefit of eligible en12 tities located in the nonentitlement area. 

13 (B) SENSE OF CONGRESS.—It is the sense 

14 of Congress that, in distributing the amounts 

15 pursuant to subparagraph (A) for nonentitle16 ment areas in which a civil unrest business re17 covery fund has been established, a State 

18 should, as quickly as practicable, distribute 

19 amounts for use by such fund. 

20 (e) USE OF ALLOCATED AMOUNTS.—A State, unit 

21 of general local government, entity designated by a unit 

22 of general local government, Indian Tribe, or insular area 

23 that receives an allocation under subsection (c), whether 

24 directly or indirectly, may use amounts from the allocation 

25 only— 


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1 (1) to provide funding to a civil unrest business 

2 recovery fund established in accordance with sub3 section (f); 

4 (2) to provide funding to support organizations 

5 that provide technical assistance to eligible entities; 

6 (3) to cover administrative costs incurred by the 

7 State, unit of general local government, Indian 

8 Tribe, or insular area (or entity designated by the 

9 State, unit, tribe, or area), in establishing and ad10 ministering a civil unrest business recovery fund, ex11 cept that not more than 2 percent of the allocation 

12 under subsection (c) for the State, unit, tribe, or 

13 area may be used for the purpose under this para14 graph; or 

15 (4) to carry out technical assistance and out16 reach activities to expand and diversify subgrantees 

17 funded with amounts provided under this section. 

18 (f) CIVIL UNREST BUSINESS RECOVERY FUND.— 

19 For purposes of this section, a civil unrest business recov20 ery fund shall be a fund— 

21 (1) that is established by a State, a unit of gen22 eral local government, an Indian Tribe, an insular 

23 area, or an entity designated by a State, unit of gen24 eral local government, Indian Tribe, or an insular 

25 area; 


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1 (2) the proceeds of which are used only to make 

2 business recovery grants under subsection (g) to eli3 gible entities operating within the area served by the 

4 fund in accordance with the needs of eligible entities 

5 and capacity of the program; and 

6 (3) provides resources and services relating to 

7 such business recovery grants for eligible entities in 

8 the 10 most commonly spoken languages in the area 

9 in which the fund operates. 

10 (g) BUSINESS RECOVERY GRANTS.— 

11 (1) IN GENERAL.—Amounts from business re12 covery grant under this section may be used only— 

13 (A) for business economic development ac14 tivities that are eligible for assistance under 

15 section 105(a)(17) of the Housing and Commu16 nity Development Act of 1974 (42 U.S.C. 

17 5305(a)(17)) or to repair, rehabilitate, or re18 place property, real or personal, of the eligible 

19 entity receiving the grant that was damaged, 

20 destroyed, or stolen during the covered period 

21 as a result of social and civil unrest during 

22 2020; or 

23 (B) only if the need for assistance for ac24 tivities described in subparagraph (A) in the 

25 area served by the civil unrest business recovery 


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1 fund has been met, for activities described in 

2 paragraph (4). 

3 The Secretary may issue guidance to ensure that the 

4 need for assistance for activities described in sub5 paragraph (A) is met before amounts may be used 

6 as provided in paragraph (4). 

7 (2) LOW-INCOME AREAS AND HUBZONES.—Not8 withstanding any other provision in this Act, the 

9 Secretary, in consultation with the Administrator of 

10 the Small Business Administration, shall treat as 

11 qualifying for purposes of paragraph (1) as areas of 

12 affected social and civil unrest during 2020 and 

13 shall give priority in allocations under subsection (b) 

14 to— 

15 (A) low-income communities; 

16 (B) HUBZones; and 

17 (C) any other area designated by the Small 

18 Business Administration for a disaster loan re19 lating to social and civil unrest during 2020. 

20 (3) GRANT AMOUNT.—The amount of a busi21 ness recovery grant may not exceed the lesser of 

22 $1,000,000 or 100 percent of the amount required 

23 to repair, rehabilitate, or replace property, real or 

24 personal, including related labor cost offsets and re25 lated debt obligations incurred as a result of social 


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1 or civil unrest during 2020, of the eligible entity 

2 that— 

3 (A) was damaged, destroyed, or stolen dur4 ing the covered period as a result of the social 

5 and civil unrest during 2020; and 

6 (B) is not fully compensated for by— 

7 (i) insurance; 

8 (ii) private donation or loan; 

9 (iii) a loan or grant from a State, 

10 general local government, Indian Tribe, or 

11 an insular area; 

12 (iv) a disaster loan from the Small 

13 Business Administration; or 

14 (v) any other means. 

15 (4) SECONDARY BUSINESS DEVELOPMENT

16 USES.—Only to the extent provided in paragraph 

17 (1)(B), a business recovery grant may be used by a 

18 grantee or subgrantee, at the discretion of the grant19 ee or subgrantee, for business development and eco20 nomic support activities allowed under section 

21 105(a)(17) of the Housing and Community Develop22 ment Act of 1974 (42 U.S.C. 5305(a)(17)), if such 

23 assistance is appropriate to carry out an economic 

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1 tent practicable, displacement of existing businesses 

2 and jobs in neighborhoods) that— 

3 (A) creates or retains jobs for low- and 

4 moderate-income persons; 

5 (B) prevents or eliminates slums and 

6 blight; 

7 (C) meet urgent needs; 

8 (D) creates or retains businesses owned by 

9 community residents; 

10 (E) assists businesses that provide goods 

11 or services needed by, and affordable to, low12 and moderate-income residents; or 

13 (F) provides technical assistance to pro14 mote any of the activities under subparagraphs 

15 (A) through (E). 

16 (5) TREATMENT OF DUPLICATION OF BENE17 FITS.—The Secretary shall require that in any case 

18 in which amounts from a business recovery grant 

19 will be used for real property renovation, the eligible 

20 entity involved shall provide documentation to dem21 onstrate unmet need and damages as a result of so22 cial and civil unrest during 2020 to the satisfaction 

23 of the Secretary, using data available from the Fed24 eral Government or other publicly available sources, 

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1 mates, private insurance policy claims and estimates, 

2 and other cost estimates from local agencies in resi3 dential and commercial areas. 

4 SEC. 6. DEADLINES AND REPORTING. 

5 (a) COMPETITIVE APPLICATION DEADLINE.—Not 

6 later than 60 days after the date of the enactment of this 

7 Act, the Secretary shall establish and make publicly avail8 able an application form for the competitive grant process 

9 under section 4(c)(2). 

10 (b) HUD OBLIGATION DEADLINE.—Not later than 

11 180 days after the date of the enactment of this Act, the 

12 Secretary shall begin disbursing amounts made available 

13 to carry out this Act to States, units of general local gov14 ernments, Indian Tribes, and insular areas in accordance 

15 with the allocation formulas under sections 4(c) and 5(c). 

16 (c) LOCAL BUSINESS FUNDS OBLIGATION DEAD17 LINES.— 

18 (1) STATES.—Of the amounts that a State 

19 elects under section 5(d)(2)(A)(ii) to reserve for use 

20 by the State under this paragraph— 

21 (A) any amounts that the State provides to 

22 a civil unrest business recovery fund under sec23 tion 5(e)(1) shall be obligated by the civil un24 rest business recovery fund for expenditure not 

25 later than 75 days after the date on which the 


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1 State received the amounts from the Secretary; 

2 and 

3 (B) any amounts that the State chooses to 

4 provide to a support organization under section 

5 5(e)(2), or to use to pay for administrative 

6 costs under section 5(e)(3), shall be obligated 

7 by the State for expenditure not later than 75 

8 days after the date on which the State received 

9 the amounts from the Secretary. 

10 (2) ENTITLEMENT COMMUNITIES.—Of the 

11 amounts that an entitlement community receives 

12 from the Secretary under section 5(c)(1)(A)— 

13 (A) any amounts that the entitlement com14 munity provides to a civil unrest business recov15 ery fund under section 5(e)(1) shall be obli16 gated by the civil unrest business recovery fund 

17 for expenditure not later than 75 days after the 

18 date on which the entitlement community re19 ceived the amounts; and 

20 (B) any amounts that the entitlement com21 munity chooses to provide to a support organi22 zation under section 5(e)(2), or to use to pay 

23 for administrative costs under section 5(e)(3), 

24 shall be obligated by the entitlement community 

25 for expenditure not later than 75 days after the 


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1 date on which the entitlement community re2 ceived the amounts. 

3 (3) NONENTITLEMENT COMMUNITIES.—Of the 

4 amounts that a unit of general local government, or 

5 an entity designated thereby, located in a nonentitle6 ment area receives from a State under section 

7 5(d)(2)(A)(i)— 

8 (A) any amounts that the unit of general 

9 local government entity provides to a civil un10 rest business recovery fund under section 

11 5(e)(1) shall be obligated by the civil unrest 

12 business recovery fund for expenditure not later 

13 than 60 days after the date on which the unit 

14 of general local government or entity received 

15 the amounts; and 

16 (B) any amounts that the unit of general 

17 local government or entity community chooses 

18 to provide to a support organization under sec19 tion 5(e)(2), or to use to pay for administrative 

20 costs under section 5(e)(3), shall be obligated 

21 by the unit of general local government or enti22 ty for expenditure not later than 60 days after 

23 the date on which the unit of general local gov24 ernment or entity received the amounts. 


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1 (4) RECOVERY OF UNOBLIGATED FUNDS.—If a 

2 State, entitlement community, other unit of general 

3 local government, entity designated by a unit of gen4 eral local government, or civil unrest business recov5 ery fund fails to obligate amounts by the applicable 

6 deadline under paragraph (1), (2), or (3), the Sec7 retary shall recover the portion of such amounts that 

8 remain unobligated as of such deadline. 

9 (5) COLLABORATION.—It is the sense of the 

10 Congress that— 

11 (A) an entitlement community that re12 ceives amount allocated under section 5(c)(1) 

13 should collaborate with the applicable local enti14 ty responsible for economic development and 

15 small business development in establishing and 

16 administering a civil unrest business recovery 

17 fund; and 

18 (B) States, units of general local govern19 ment (including units of general local govern20 ment located within and outside of nonentitle21 ment areas), Indian Tribes, and insular areas 

22 that receive amounts under section 5(c)(2) and 

23 are located in the same region should collabo24 rate in establishing and administering civil un25 rest business recovery funds. 


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1 (d) INFORMATION GATHERING.—When providing as2 sistance to an eligible entity with amounts received from 

3 an allocation made under section 4 or 5, the entity pro4 viding the assistance shall— 

5 (1) inquire— 

6 (A) in the case of an eligible entity that is 

7 a business entity or a nonprofit organization, 

8 whether the entity is a minority-owned entity or 

9 a women-owned entity; and 

10 (B) in the case of an eligible entity who is 

11 an individual, whether the individual is a minor12 ity or a woman; 

13 (2) collect, in the case of an eligible entity that 

14 is a business entity or a nonprofit organization, de15 mographic information, including race and ethnicity, 

16 gender, disability status, housing status, family com17 position, and income level, regarding the households 

18 being served by economic development activities and 

19 other activities funded with amounts made available 

20 pursuant to this Act; and 

21 (3) maintain a record of the responses to each 

22 inquiry conducted under paragraph (1), which the 

23 entity shall promptly submit to the applicable State, 

24 unit of general local government, Indian Tribe, or 

25 insular area. 


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1 (e) REPORTING.— 

2 (1) IN GENERAL.—Not later than 30 days after 

3 the date on which a State, unit of general local gov4 ernment, Indian Tribe, or insular area initially re5 ceives an allocation made under section 4 or 5, and 

6 not later than 14 days after the date on which that 

7 State, unit of general local government, Indian 

8 Tribe, or insular area completes the full expenditure 

9 of amounts from such allocation, such State, unit of 

10 general local government, Indian Tribe, or insular 

11 area shall submit to the Secretary a report that in12 cludes information setting forth— 

13 (A) the number of recipients of assistance 

14 made available from the allocation, 

15 disaggregated by race and ethnicity, gender, 

16 and income and assets; 

17 (B) the total amount, and type, of assist18 ance made available from the allocation; 

19 (C) to the extent applicable, with respect 

20 to each recipient described in subparagraph 

21 (A), information regarding the industry of the 

22 recipient, the amount of assistance received by 

23 the recipient, the annual sales of the recipient, 

24 and the number of employees of the recipient; 


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1 (D) to the extent available from the infor2 mation collected under subsection (d), demo3 graphic information of the households receiving 

4 direct anti-poverty programming, such as cash 

5 assistance, disaggregated by race and ethnicity, 

6 gender, disability status, housing status, family 

7 composition, and income level as a percentage 

8 of the Federal poverty level; 

9 (E) the zip code of each recipient described 

10 in subparagraph (A); and 

11 (F) any other information that the Sec12 retary, in the sole discretion of the Secretary, 

13 determines to be necessary to carry out this 

14 Act. 

15 (2) PUBLIC AVAILABILITY.—As soon as is prac16 ticable after receiving each report submitted under 

17 paragraph (1), the Secretary shall make the infor18 mation contained in the report, including all of the 

19 information described in subparagraph (A) through 

20 (F) of such paragraph, publicly available. 

21 (f) FINAL REPORT.—Not later than September 30, 

22 2023, the Secretary shall submit to the Congress a report 

23 analyzing and assessing the program carried out under 

24 this Act, which shall identify any advantages and dis25 advantages of the program, include comments and assessVerDate Sep 11 2014 22:11 May 26, 2021 Jkt 019200 PO 00000 Frm 00028 Fmt 6652 Sfmt 6201 E:\BILLS\H2158.IH H2158

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1 ments from localities and communities assisted, and in2 clude any recommendations for legislative changes to im3 prove more equitable outcomes under the program, such 

4 as additional technical assistance, planning requirements, 

5 and administrative support. 

6 (g) EVALUATION.—Of amounts available under sec7 tion 3(d), the Secretary may use such amounts as may 

8 be necessary to evaluate the effectiveness of activities 

9 funded through grants under section 4, using a method10 ology that— 

11 (1) includes a random assignment whenever 

12 feasible, or other research methods that allow for the 

13 strongest possible casual inferences when random as14 signment is not feasible; and 

15 (2) generates evidence on impact of specific 

16 projects, or groups with identical (or nearly iden17 tical) service components and protocols. 

18 (h) RULES AND GUIDANCE.—The Secretary, in con19 sultation with the Secretary of the Treasury and the Ad20 ministrator of the Small Business Administration, shall 

21 issue any rules and guidance that are necessary to carry 

22 out this Act, including by establishing appropriate compli23 ance and reporting requirements, in addition to the report24 ing requirements under subsection (e). 


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1 SEC. 7. DEFINITIONS. 

2 In this section: 

3 (1) COVERED PERIOD.—The term ‘‘covered pe4 riod’’ means the period beginning on May 1, 2020, 

5 and ending at the end of December 31, 2020. 

6 (2) ELIGIBLE ENTITY.—The term ‘‘eligible enti7 ty’’ means— 

8 (A) a privately held business entity that— 

9 (i) employs not more than 50 full-time 

10 or full-time equivalent employees; 

11 (ii)(I) is physically based and located 

12 in, or provides services to, a low-income 

13 community or a HUBZone; or 

14 (II) has incurred damage to real or 

15 personal property of the business entity 

16 during a covered period as a result of so17 cial and civil unrest; and 

18 (iii) has average annual receipts (as 

19 determined in accordance with section 

20 121.104 of title 13, Code of Federal Regu21 lations, or any successor regulation) of not 

22 more than $2,000,000; 

23 (B) an individual who operates under a 

24 sole proprietorship, an individual who operates 

25 as an independent contractor, or any eligible 

26 self-employed individual, if such an individual 


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1 has incurred damage to real or personal prop2 erty of their business concern during a covered 

3 period as a result of social and civil unrest; 

4 (C) a community- or worker-owned cooper5 ative that— 

6 (i) meets the requirements of an eligi7 ble cooperative under section 105 of the 

8 National Consumer Cooperative Bank Act 

9 (12 U.S.C. 3015); 

10 (ii) employs not more than 250 full11 time or full-time equivalent employees; and 

12 (iii) is based in, or provides services 

13 to, a low-income community; 

14 (D) an eligible nonprofit organization 

15 that— 

16 (i) employs not more than 250 full17 time or full-time equivalent employees; 

18 (ii) has $10,000,000 or less in assets; 

19 and 

20 (iii) is based in, or provides services 

21 to, a low-income community; or 

22 (E) any non-profit entity that is a minor23 ity-owned or minority-serving entity. 

24 (3) ELIGIBLE SELF-EMPLOYED INDIVIDUAL.— 

25 The term ‘‘eligible self-employed individual’’ has the 


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1 meaning given such term in section 7002(b) of the 

2 Families First Coronavirus Response Act (Public 

3 Law 116–127). 

4 (4) ENTITLEMENT COMMUNITY.—The term 

5 ‘‘entitlement community’’ means a metropolitan city 

6 or urban county, as such terms are defined in sec7 tion 102 of the Housing and Community Develop8 ment Act of 1974 (42 U.S.C. 5302). 

9 (5) ENVIRONMENTAL JUSTICE COMMUNITY.— 

10 The term ‘‘environmental justice community’’ means 

11 a community with significant representation of com12 munities of color, low-income communities, or Tribal 

13 and indigenous communities, that experiences, or is 

14 at risk of experiencing, higher or more adverse 

15 human health or environmental effects, identified 

16 through the Environmental Justice Screen of the 

17 Environmental Protection Agency or an equivalent 

18 mapping and screening tool. 

19 (6) FEDERAL POVERTY LEVEL.—The term 

20 ‘‘Federal poverty level’’ has the meaning given the 

21 term ‘‘poverty line’’ in section 673 of the Omnibus 

22 Budget Reconciliation Act of 1981 (42 U.S.C. 

23 9902). 

24 (7) FULL-TIME EQUIVALENT EMPLOYEES.— 


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1 (A) IN GENERAL.—The term ‘‘full-time 

2 equivalent employees’’ means a number of em3 ployees equal to the number determined by di4 viding— 

5 (i) the total number of hours of serv6 ice for which wages were paid by the em7 ployer to employees during the taxable 

8 year; by 

9 (ii) 2080. 

10 (B) ROUNDING.—The number determined 

11 under subparagraph (A) shall be rounded to the 

12 next lowest whole number if not otherwise a 

13 whole number. 

14 (C) EXCESS HOURS NOT COUNTED.—If an 

15 employee works in excess of 2,080 hours of 

16 service during any taxable year, such excess 

17 shall not be taken into account under subpara18 graph (A). 

19 (D) HOURS OF SERVICE.—The Secretary 

20 of Housing and Urban Development, in con21 sultation with the Secretary of Labor, shall pre22 scribe such regulations, rules, and guidance as 

23 may be necessary to determine the hours of 

24 service of an employee for purposes of this 

25 paragraph, including rules for the application of 


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1 this paragraph to employees who are not com2 pensated on an hourly basis. 

3 (8) HIGH-POVERTY AREA.—The term ‘‘high4 poverty area’’ means any census tract having a pov5 erty rate of 20 percent or higher, as measured by re6 cent 5-year data series available from the American 

7 Community Survey, as of the date of the enactment 

8 of this Act. 

9 (9) HUBZONE.—The term ‘‘HUBZone’’ has 

10 the meaning given the term ‘‘historically underuti11 lized business zone’’ in section 31 of the Small Busi12 ness Act (15 U.S.C. 657a). 

13 (10) INDIAN TRIBE.—The term ‘‘Indian Tribe’’ 

14 has the meaning given such term in section 102 of 

15 the Housing and Community Development Act of 

16 1974 (42 U.S.C. 5302). 

17 (11) INSULAR AREA.—The term ‘‘insular area’’ 

18 has the meaning given such term in section 5204 of 

19 the Omnibus Insular Areas Act of 1992 (42 U.S.C. 

20 5204). 

21 (12) LOW-INCOME COMMUNITY.—The term 

22 ‘‘low-income community’’ has the meaning given 

23 such term in section 45D(e) of the Internal Revenue 

24 Code of 1986 (26 U.S.C. 45D(e)). 


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1 (13) MINORITY.—The term ‘‘minority’’ has the 

2 meaning given such term in section 1204(c)(3) of 

3 the Financial Institutions Reform, Recovery, and 

4 Enforcement Act of 1989 (12 U.S.C. 1811 note). 

5 (14) MINORITY-OWNED ENTITY.—The term 

6 ‘‘minority-owned entity’’ means an entity— 

7 (A) more than 50 percent of the ownership 

8 or control of which is held by not less than 1 

9 minority; and 

10 (B) more than 50 percent of the net profit 

11 or loss of which accrues to not less than 1 mi12 nority. 

13 (15) MINORITY-SERVING ENTITY.—The term 

14 ‘‘minority-serving entity’’ means an institution of 

15 higher education whose minority student enrollment 

16 is at least 50 percent. Such term includes Asian 

17 American and Native American Pacific Islander18 serving institutions, as such term is defined in sec19 tion 371(c) of the Higher Education Act of 1965 

20 (20 U.S.C. 1067q(c)). 

21 (16) NONENTITLEMENT AREA; STATE; UNIT OF

22 GENERAL LOCAL GOVERNMENT.—The terms ‘‘non23 entitlement area’’, ‘‘State’’, and ‘‘unit of general 

24 local government’’ have the meanings given such 


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1 terms in section 102 of the Housing and Community 

2 Development Act of 1974 (42 U.S.C. 5302). 

3 (17) NONPROFIT ORGANIZATION.—The term 

4 ‘‘nonprofit organization’’ means an organization 

5 that— 

6 (A) is exempt from taxation pursuant to 

7 section 501(c)(3) of the Internal Revenue Code 

8 of 1986 (26 U.S.C. 501(c)(3)): and 

9 (B) is— 

10 (i) a community development organi11 zation or a community development cor12 poration; 

13 (ii) a community development finan14 cial institution; 

15 (iii) a community housing organiza16 tion; 

17 (iv) a church or religious organization; 

18 (v) a public charitable organization; or 

19 (vi) a private foundation. 

20 (18) PERSISTENT POVERTY COUNTY.—The 

21 term ‘‘persistent poverty county’’ means any county 

22 that has had 20 percent or more of its population 

23 living in poverty over the past 30 years, as measured 

24 by the most recent decennial censuses and the most 

25 recent Small Area Income and Poverty Estimates of 


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1 the Bureau of the Census, as of the date of the en2 actment of this Act. 

3 (19) SECRETARY.—The term ‘‘Secretary’’ 

4 means the Secretary of Housing and Urban Develop5 ment. 

6 (20) WOMEN-OWNED ENTITY.—The term 

7 ‘‘women-owned entity’’ means an entity— 

8 (A) more than 50 percent of the ownership 

9 or control of which is held by not less than 1 

10 woman; and 

11 (B) more than 50 percent of the net profit 

12 or loss of which accrues to not less than 1 

13 woman. 

Æ 


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