HUD has written regulations that would put the new feature of the law into effect. The rules for States and Small Cities are basically the same. Here I will only cite the entitlement regs. In addition to bread and butter CDBG, HUD stresses that the other faces of CDBG are also subject to the new rules. The relocation is likely to result in a significant loss of jobs in the labor market area from which the relocation takes place.
Operation is defined as any equipment, employment opportunity, production capacity, or product line.
I m no expert, but if there is some potential of future job relocation, HUD ought to consider it. Provisions Are Aimed At For-Profit Businesses HUD realizes that it is possible that a nonprofit might cause relocation and job loss, but thinks that it is not likely. They also mention property acquisition and demolition. The preamble also mentions the development of incubator buildings. In other words, CDBG uses like these would trigger the anti-pirating prohibition.