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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2070 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 2070

To amend the Housing and Community Development Act of 1974 to establish 
 a program to demonstrate the benefits and feasibility of redeveloping 
      or reusing abandoned or substantially underutilized land in 
    economically and socially distressed communities, and for other 
                               purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              May 11, 1993

 Mr. Mfume (for himself, Ms. Velazquez, and Mr. Towns) introduced the 
following bill; which was referred to the Committee on Banking, Finance 
                           and Urban Affairs

_______________________________________________________________________

                                 A BILL

 
To amend the Housing and Community Development Act of 1974 to establish 
 a program to demonstrate the benefits and feasibility of redeveloping 
      or reusing abandoned or substantially underutilized land in 
    economically and socially distressed communities, and for other 
                               purposes.

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

SECTION. 1. ABANDONED LAND REUSE ACT OF 1993.

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

          ``TITLE IX--REDEVELOPMENT OR REUSE OF ABANDONED LAND

``SEC. 901. SHORT TITLE.

    ``This title may be cited as the `Abandoned Land Reuse Act of 
1993'.

``SEC. 902. FINDINGS.

    ``The Congress finds that--
            ``(1) past uses of land in the United States for industrial 
        and commercial purposes or the conduct of other economic 
        activities have created many sites throughout the United States 
        that are now abandoned or substantially underutilized;
            ``(2) the abandonment or substantial underutilization of 
        the sites referred to in paragraph (1) contribute substantially 
        to the economic and social distress of communities in large 
        portions of the population, including poor and unemployed 
        individuals and disadvantaged population groups, have 
        concentrated;
            ``(3) the abandonment or substantial underutilization of 
        the abandoned sites impairs the ability of the Federal 
        Government and the governments of States and political 
        subdivisions of States to provide employment opportunities for, 
        and improve the economic welfare of, the people of the United 
        States and the poor, unemployed, and disadvantaged, in 
        particular;
            ``(4) the abandonment or substantial underutilization of 
        the abandoned sites results in the inefficient use of community 
        development facilities and related public services, and extends 
        conditions of blight in local communities;
            ``(5) the manner in which--
                    ``(A) the population of the United States is 
                distributed; and
                    ``(B) communities accommodate the growth of the 
                national economy;
        affects the employment opportunities, availability of capital 
        to provide economic opportunities, social conditions, and other 
        important conditions of each such community;
            ``(6) the private market demand for abandoned sites has 
        been reduced or eliminated;
            ``(7) the capital available for the redevelopment or reuse 
        of abandoned sites may be limited;
            ``(8) cooperation among Federal agencies and the 
        departments and agencies of States and political subdivisions 
        of States is necessary to accomplish timely redevelopment or 
        reuse of abandoned sites;
            ``(9) in addition, cooperation between the departments and 
        agencies referred to in paragraph (8) and private parties is 
        necessary to accomplish the objective referred to in paragraph 
        (8); and
            ``(10) there is a need for a program to demonstrate the 
        public purposes and benefits of the redevelopment or reuse of 
        abandoned sites.

``SEC. 903. DEFINITIONS.

    ``As used in this title:
            ``(1) Abandoned site.--The term `abandoned site' means a 
        facility or a combination of geographically or economically 
        related facilities within the same unit or immediately 
        contiguous units of general local government--
                    ``(A) that is no longer operating or is so 
                substantially underutilized as to provide only marginal 
                employment opportunities;
                    ``(B) that is located within a community that 
                suffers from economic and social distress measured by 
                factors referred to in section 907(a)(4);
                    ``(C) that has one or more conditions, constraints, 
                or characteristics (other than only being a type of 
                facility with respect to which market supply exceeds 
                demand) that are detrimental to the public health, 
                safety, or welfare and, in the absence of the 
                assistance under this title, prevent or materially 
                discourage the timely redevelopment or reuse of a 
                facility or real property immediately adjacent to the 
                facility for a use or uses that include the provision 
                of employment opportunities in accordance with 
                applicable community development strategies; and
                    ``(D) with respect to which a person referred to in 
                section 910(a) is unable to fund or finance the full 
                amount of the cost of a reuse action.
            ``(2) Facility.--The term `facility' means an improved or 
        previously improved site or area, or a surface or subsurface 
        improvement to a site or area, including a building, structure, 
        installation, fixture, or equipment on or within the site, that 
        has been used primarily for an industrial or commercial use.
            ``(3) Governor.--The term `Governor' means the Governor of 
        a State, or the Governor's designee.
            ``(4) Local community development organization.--The term 
        `local community development organization' means a nonprofit 
        organization (as defined in paragraph (7)) that--
                    ``(A) has a history of serving the needs of 
                residents of the local community affected by an 
                abandoned site;
                    ``(B) maintains accountability to persons of low-
                income in a local community through significant 
                representation on the governing board of the 
                organization, and such other means as are appropriate; 
                and
                    ``(C) has the institutional and administrative 
                capacity for carrying out activities assisted under 
                this title (as determined by the Secretary).
            ``(5) Local grantee.--The term `local grantee' means a 
        local community development organization or unit of general 
        local government.
            ``(6) Persons of low income.--The term `persons of low 
        income' has the meaning provided the term under section 
        102(20).
            ``(7) Nonprofit organization.--The term `nonprofit 
        organization' means any private, nonprofit organization 
        (including a State or locally chartered, nonprofit 
        organization)--
                    ``(A) that is organized under State or local laws;
                    ``(B) with respect to which no portion of the net 
                earnings inure to the benefit of a member, founder, 
                contributor, or individual associated with the 
                organization;
                    ``(C) that complies with standards of financial 
                accountability that the Secretary determines to be 
                acceptable; and
                    ``(D) that carries out activities related to the 
                retention or expansion of employment opportunities for, 
                and improvement of economic and social conditions of, 
                persons of low income.
            ``(8) Reuse action.--The term `reuse action' means an 
        action that makes such physical changes in, or improvements or 
        additions to, an abandoned site so as to enable the timely 
        redevelopment or reuse of the site or real property immediately 
        adjacent to the site. Such term shall include the clearance, 
        demolition, or rehabilitation of the site. Such term shall not 
        include the construction of new buildings on the site.
            ``(9) Secretary.--The term `Secretary' means the Secretary 
        of Housing and Urban Development.
            ``(10) State.--The term `State' has the meaning provided 
        the term under section 102(a)(2).
            ``(11) Unit of general local government.--The term `unit of 
        general local government' has the meaning provided the term in 
        the first sentence of section 102(a)(1).

``SEC. 904. DEMONSTRATION PROGRAM.

    ``(a) In General.--The Secretary shall select appropriate States in 
which to establish and carry out either--
            ``(1) a program to provide grants to States to establish a 
        State program to provide grants to local grantees; or
            ``(2) a direct grant program to provide grants to local 
        grantees,
for the purpose of carrying out the demonstrations described in 
subsection (b).
    ``(b) Purpose.--The purpose of the programs authorized by 
subsection (a) is to demonstrate--
            ``(1) the economic feasibility of redevelopment or reuse of 
        abandoned sites;
            ``(2) the employment benefits, economic benefits, social 
        benefits, and such other benefits to distressed communities 
        that may occur as a result of focusing financial resources and 
        cooperative action on the redevelopment or reuse of abandoned 
        sites;
            ``(3) the beneficial impacts on patterns of community 
        development and use of public resources of redevelopment or 
        reuse of abandoned sites; and
            ``(4) the feasibility of timely, cooperative action--
                    ``(A) among Federal agencies and departments and 
                agencies of States and political subdivisions of States 
                that have jurisdiction over the redevelopment or reuse 
                of abandoned sites; and
                    ``(B) between the agencies and departments referred 
                to in subparagraph (A) and private parties.
    ``(c) Allocation of Funds.--The Secretary shall allocate funds made 
available pursuant to this title among the States or to local grantees. 
In allocating the funds, the Secretary shall take into account--
            ``(1) the relative commitment of a State and local grantees 
        to achieving successfully the demonstrations described in 
        subsection (b) measured by factors that include that referred 
        to in section 907(a)(7);
            ``(2) the relative number of abandoned sites in the State;
            ``(3) the need to allocate funds in amounts that will 
        contribute to achieving successfully the demonstrations 
        described in subsection (b); and
            ``(4) the desirability of carrying out a variety of 
        demonstration projects with respect to the location, 
        characteristics, and issues addressed by the projects, and the 
        types of participants associated with the projects.
    ``(d) Scope of Program.--
            ``(1) In general.--In carrying out the demonstration 
        program established under subsection (a), the Secretary may 
        award a grant to a State pursuant to section 905 or to a local 
        grantee that submits an approved application to the Secretary 
        pursuant to paragraph (2).
            ``(2) Grant application.--An application for a grant under 
        this section shall include a proposal for a reuse action for 
        the redevelopment or reuse of an abandoned site, and shall be 
        in such form as the Secretary determines to be appropriate.
            ``(3) Competitive selection procedure.--Each grant made 
        under this title by the Secretary or a Governor to a State or 
        local grantee shall be made on the basis of an open and 
        competitive selection procedure approved by the Secretary. In 
        making a grant to a local grantee, the Secretary shall conduct 
        a selection procedure on a State-by-State basis.
            ``(4) Selection of sites by governor.--If a State 
        establishes a State demonstration program that is approved in 
        accordance with section 905, the Governor shall select the 
        abandoned sites to receive assistance under the grant program. 
        In carrying out the demonstration program, the Governor may act 
        through appropriate officials of the State.
            ``(5) Grant awards.--Except as provided in paragraph (6), 
        the aggregate amount of grants awarded for reuse actions at an 
        abandoned site shall not exceed an amount equal to 75 percent 
        of the total eligible costs of carrying out a reuse action at 
        the abandoned site. Each local grantee that receives a grant 
        award under this title shall be required to pay a non-Federal 
        share in an amount equal to 25 percent of the total eligible 
        costs of carrying out the reuse action at the abandoned site 
        that is the subject of the grant award.
            ``(6) Exception.--Subject to sections 906 and 909, the 
        Secretary (or in the case of a State demonstration program 
        under section 905, the Governor) may fund up to 100 percent of 
        the total eligible costs of carrying out a reuse action at an 
        abandoned site if the Secretary (or the Governor) obtains 
        satisfactory assurances from the grant recipient that--
                    ``(A) a transfer of the abandoned site will occur 
                as part of the redevelopment or reuse of the site;
                    ``(B) the net proceeds realized from the transfer 
                of the site will reasonably approximate at least 25 
                percent of the eligible costs of carrying out a reuse 
                action at the site; and
                    ``(C) an amount reasonably approximating 25 percent 
                of the eligible costs referred to in subparagraph (B) 
                from the net proceeds referred to in subparagraph (B), 
                will be paid promptly upon receipt of the proceeds by 
                or on behalf of the grant recipient to the Secretary 
                (or the Governor).

``SEC. 905. DELEGATION OF IMPLEMENTATION TO STATE DEMONSTRATION 
              PROGRAM.

    ``On a State-by-State basis, the Secretary may, in lieu of awarding 
grants to individual local grantees, award a grant to a State that 
submits an approved application to the Secretary to conduct a State 
demonstration program to carry out the demonstrations described in 
section 904(b). Subject to the limitations referred to in section 
904(d), under a State demonstration program, the Governor of a State 
shall have the authority to select abandoned sites and allocate 
assistance from amounts awarded to the State pursuant to this section.

``SEC. 906. FUNDING.

    ``(a) In General.--Payment of the non-Federal share under section 
904(d)(5) may be made from funds from any non-Federal source, and may 
include services or equipment necessary to carry out the reuse action.
    ``(b) Avoidance of Windfall From Grant Award.--
            ``(1) In general.--A local grantee, shall, as a condition 
        to receiving a grant award, enter into an agreement with the 
        Secretary (or in the case of a State demonstration program 
        under section 905, the Governor) that requires the payment of 
        an amount specified in paragraph (2) to the Secretary (or the 
        Governor) by the local grantee of any amount of compensation 
        that the local grantee may recover from another person as 
        compensation for the cost of carrying out a reuse action at the 
        abandoned site that is the subject of the grant award.
            ``(2) Amount of payment.--The amount of payment described 
        in this paragraph shall be--
                    ``(A) in addition to the amount required to be paid 
                pursuant to section 904(d)(6); and
                    ``(B) an amount equal to 85 percent of any amount 
                by which the amount recovered (net of recovery costs) 
                exceeds the non-Federal share of the local grantee.
    ``(c) Avoidance of Windfall Where Local Grantee Is Not Site 
Owner.--In the event that--
            ``(1) an abandoned site that is the subject of a grant 
        award under this title is not owned by the local grantee that 
        receives the award, or
            ``(2) an action is taken with respect to an abandoned site 
        to enable the reuse or redevelopment of real property 
        immediately adjacent to the abandoned site, and the local 
        grantee does not own the adjacent site,
the local grantee shall be required, as a condition of receiving the 
grant award, to enter into an agreement that is satisfactory to the 
Secretary with the owner of the site or adjacent site. The agreement 
shall ensure that the owner of the site or adjacent site will not 
realize a windfall from the assistance provided under the grant, and 
the local grantee will be able to meet the requirements of this title.
    ``(d) Other Recovery of Federal Assistance.--
            ``(1) In general.--
                    ``(A) Amount.--An agreement referred to in 
                subsection (b)(1) shall specify that as a condition of 
                receiving a grant award under this title, the grant 
                recipient shall be required to pay to the Secretary (or 
                the Governor) the sum of--
                            ``(i) the amount of the grant award; and
                            ``(ii) the amount of interest accrued on 
                        the amount referred to in clause (i) from the 
                        date of the awarding of the grant (at a rate 
                        determined by the Secretary)
                if a condition described in clause (i) or (ii) of 
                subparagraph (B) is met.
                    ``(B) Failure to initiate.--If, with respect to the 
                abandoned site that is the subject of the grant--
                            ``(i) a reuse action has not been initiated 
                        by 1 year after the date that the grant is 
                        awarded; or
                          ``(ii) the redevelopment or reuse has not 
                        been completed in a timely manner (as 
                        determined by the Secretary, or, in the case of 
                        a State demonstration program under section 
                        905, the Governor),
                the grant recipient shall be required to make a payment 
                pursuant to subparagraph (A).
            ``(2) Timing of repayment.--A repayment referred to in 
        paragraph (1) shall be due upon notice to the grant recipient 
        by the Secretary (or the Governor) that a condition described 
        in clause (i) or (ii) of paragraph (1)(B) has been met.
            ``(3) Waiver.--The Secretary (or the Governor) may waive 
        the requirement for repayment under paragraph (1) or may 
        require only partial payment of the amount specified in 
        paragraph (1) if the Secretary, (or the Governor) determines 
        that--
                    ``(A) the grant recipient acted in a manner 
                consistent with the requirements of section 904(b); and
                    ``(B) exigent circumstances contributed to the 
                delay.
    ``(e) Use of Recovered Funds.--The Secretary (or the Governor) may 
use funds recovered pursuant to this section to make additional grant 
awards in accordance with this title. The Governor may issue an 
additional grant award with funds recovered pursuant to this section 
without regard to the requirement for preapproval by the Secretary 
under section 905.

``SEC. 907. CRITERIA FOR SITE SELECTION.

    ``(a) In General.--The Secretary (or in the case of a State 
demonstration program under section 905, the Governor), after receiving 
completed applications for grant awards under this title, shall select 
abandoned sites and allocate awards. In making the grant awards, the 
Secretary (or the Governor) shall take into account the following 
criteria:
            ``(1) The extent to which economic, social, and such other 
        benefits of the redevelopment or reuse of the site as the 
        Secretary (or the Governor) determines to be appropriate, 
        including the employment and job training opportunities, and 
        other related benefits to persons of low income who are 
        residents of the local community in which the site is located, 
        are likely to exceed the costs of the redevelopment or reuse of 
        the site. In determining the benefits, the Secretary (or the 
        Governor) shall consider the amount of job opportunities to be 
        retained or created, expected increases in economic activity 
        within the community, expected increases in local tax revenue, 
        capital resources to be conserved, and such other public 
        resources as the Secretary (or the Governor) determines will be 
        conserved.
            ``(2) The extent of need for assistance under this title to 
        fund a reuse action.
            ``(3) The extent of contribution from non-Federal sources, 
        including capital investment by private parties, expected to 
        occur in connection with the redevelopment or reuse of the 
        site.
            ``(4) The degree of economic and social distress of the 
        local community in which the site is located, determined by 
        considering the amount of loss of community employment in the 
        industrial sector, the rate and period of unemployment, the 
        relative per capita income of local community residents, any 
        decline in economic activity, any population loss or growth 
        that is disproportionate to local economic opportunity, and 
        such other related factors as the Secretary determines to be 
        appropriate.
            ``(5) The degree of cooperation among appropriate Federal 
        agencies and departments and agencies of relevant States and 
        political subdivisions of the States, as well as between the 
        departments and agencies and private parties.
            ``(6) Whether the redevelopment or reuse of the site will 
        be achieved in a timely manner.
            ``(7) Whether and to what extent the State or unit or units 
        of general local government in which the site is located have 
        established an ongoing program or programs to facilitate the 
        redevelopment or reuse of abandoned sites.
            ``(8) Such other factors as the Secretary considers 
        relevant to the purposes of the program authorized by this 
        title.
    ``(b) Priority.--The Secretary (or in the case of a State 
demonstration program under section 905, the Governor) shall give the 
greatest priority to the criteria referred to in paragraphs (1) through 
(7) of subsection (a), and shall give an equal degree of priority to 
each criterion referred to in paragraphs (1) through (7) of subsection 
(a).

``SEC. 908. FEDERAL FACILITIES EXCLUDED.

    ``The Secretary (or in the case of a State demonstration program 
under section 905, the Governor) may not award a grant under this title 
for a reuse action on a site controlled by the Federal Government.

``SEC. 909. ELIGIBLE COSTS.

    ``(a) In General.--Administrative and nonadministrative costs for a 
reuse action carried out pursuant to a grant program under section 904 
or a State demonstration program under section 905 shall constitute 
eligible costs.
    ``(b) Nonadministrative Costs Defined.--For the purposes of this 
section, the term `nonadministrative costs' shall include the cost of--
            ``(1) identifying the probable extent and nature of, and 
        preferred manner of carrying out, a reuse action at an 
        abandoned site;
            ``(2) fees relating to any application for approval by a 
        Federal agency or a department or agency of a State or a 
        political subdivision of a State, that is required and 
        necessary to carry out a reuse action at an abandoned site; and
            ``(3) implementing a reuse action.
    ``(c) Administrative Cost Limitation.--Not more than 10 percent of 
the amount of a grant award under this title may be used for 
administrative costs.

``SEC. 910. LIABILITY UNDER OTHER LAW; AVOIDANCE OF WINDFALL.

    ``(a) Liability Under Other Law.--Nothing in this title is intended 
to relieve any person who had an interest in an abandoned site prior to 
the initiation of a reuse action that is the subject of grant award 
under this title from liability under, or other requirements of, any 
other provision of law.
    ``(b) Avoidance of Windfall.--The Secretary (or in the case of a 
State demonstration program under section 905, the Governor) shall 
implement a grant program under this title in a manner that does not--
            ``(1) relieve from liability under any other law any person 
        referred to in subsection (a); and
            ``(2) reduce the incentive of any such person to 
        participate in funding the non-Federal share required under 
        section 906.
    ``(c) Statutory Interpretation.--Nothing in subsection (b) is 
intended to prevent a local grantee who acquires an abandoned site 
solely for the purpose of carrying out a proposal to redevelop or reuse 
the site from obtaining assistance under this title.

``SEC. 911. EVALUATION AND REPORT.

    ``(a) Evaluation.--
            ``(1) In general.--Not later than December 31, 1995, the 
        Secretary shall conduct an initial evaluation of the grant 
        program established under section 904 and any State 
        demonstration program established under section 905. The 
        evaluation shall be based on information that is available at 
        the time of the evaluation.
            ``(2) Data collection.--The Secretary (or in the case of a 
        State demonstration program under section 905, the Governor) 
        shall require that as a condition to receiving a grant under 
        this title, each grant recipient shall submit to the Secretary 
        data that indicate the actual costs, benefits, sources and uses 
        of funds, the results of an assisted redevelopment or reuse 
        project, and such other data as the Secretary determines to be 
        necessary for the evaluation referred to in paragraph (1).
    ``(b) Confidentiality of Data Collected.--The Secretary shall 
maintain confidentiality of data collected from grant recipients in 
accordance with any applicable law.
    ``(c) Report.--Upon completion of the evaluation referred to in 
subsection (a), but not later than December 31, 1995, the Secretary 
shall submit a report to the Congress containing the findings and 
recommendations of the Secretary.
    ``(d) Use of Contractors.--The Secretary may, in accordance with 
any applicable law, enter into agreements with such private contractors 
(including institutions of higher education), as the Secretary 
determines necessary for the preparation of the report referred to in 
subsection (c).

``SEC. 912. TECHNICAL ASSISTANCE.

    ``(a) In General.--The Secretary may use up to 5 percent of any 
amount appropriated to implement this title to fund technical 
assistance grants by the Secretary (or in the case of a State 
demonstration program under section 905, the Governor) to local 
grantees to facilitate their participation in the demonstration program 
established by this title and their successful achievement of the 
purposes of this title.
    ``(b) Purposes.--A local grantee may use a grant under this section 
to pay for up to the full amount of its costs--
            ``(1) to identify the probable extent and nature of, and 
        preferred manner of carrying out, a reuse action at an 
        abandoned site;
            ``(2) to identify potential non-Federal sources of capital 
        for the redevelopment or reuse of an abandoned site;
            ``(3) to determine the means of implementing in connection 
        with a reuse action a job training program that benefits 
        persons of low-income who are residents of the local community 
        in which an abandoned site is located;
            ``(4) to identify public agencies cooperation with which 
        would be necessary to carry out a reuse action; or
            ``(5) for such other purposes approved by the Secretary as 
        directly relate to the local grantee's successfully organizing 
        the human and other resources and cooperative action necessary 
        to carrying out a reuse action.
    ``(c) Repayment Obligation.--If a local grantee obtains a technical 
assistance grant pursuant to this section and subsequently obtains a 
grant to carry out a reuse action under this title, the grant 
recipient's payment obligation under section 906(d) shall include the 
amount of the technical assistance grant.

``SEC. 913. REGULATIONS.

    ``Not later than 180 days after the date of enactment of this 
title, the Secretary shall issue such rules and regulations as are 
necessary to carry out this title.

``SEC. 914. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to the Department of 
Housing and Urban Development for the purposes of carrying out this 
title $100,000,000 for each of the fiscal years 1994, 1995, and 1996. 
Such sums shall remain available until expended.''.

                                 <all>

HR 2070 IH----2
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