be utilized for the selection of grant recipients 
under paragraph (1). 
‘‘(B) COMPETITION
REQUIRED.—The Sec-
retary shall award grants under paragraph (1) 
pursuant to a full and open competition. 
‘‘(C) GEOGRAPHIC DIVERSITY.—In award-
ing grants under paragraph (1), the Secretary 
shall ensure, to the extent practicable, that grant 
recipients represent diverse geographic areas of 
the United States, including rural and urban 
areas. 
‘‘(4) PROGRAM LIMIT.—The Secretary may not 
award, in the aggregate, more than $7,500,000 in 
grants under paragraph (1). 
‘‘(d) LOAN GUARANTEES FOR BUSINESS INCUBATORS 
AND SCIENCE AND RESEARCH PARKS.— 
‘‘(1) GUARANTEE
AUTHORITY.—In accordance 
with this subsection, the Secretary may guarantee a 
loan of an eligible recipient to assist the carrying out 
of a business incubator development project or a 
science and research park development project. 
‘‘(2) GUARANTEE
PERCENTAGE.—In guaran-
teeing a loan under paragraph (1), the Secretary may 
guarantee up to 80 percent of the principal amount 
of the loan. 
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‘‘(3) SELECTION OF GUARANTEE RECIPIENTS.— 
‘‘(A) CREDITWORTHINESS.—The Secretary 
may not guarantee a loan under paragraph (1) 
unless the Secretary has determined that there is 
a reasonable assurance of repayment with respect 
to the loan. 
‘‘(B) GRANT RECIPIENTS.—A recipient of a 
grant under subsection (c) for the development of 
a feasability study or development plan, or both, 
is not eligible for a loan guarantee under para-
graph (1) until the recipient has completed the 
study or plan, or both, for which the grant was 
provided (as determined by the Secretary). 
‘‘(4) TERM OF LOAN.—The term of a loan guar-
anteed under paragraph (1) may not exceed the lesser 
of— 
‘‘(A) 30 years; or 
‘‘(B) 90 percent of the useful life of any 
physical asset to be financed by such loan. 
‘‘(5) SUBORDINATION.—An obligation relating to 
a loan guarantee under paragraph (1) may not be 
subordinated to another debt contracted by the bor-
rower or to any other claims against the borrower in 
the case of default. 
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‘‘(6) OTHER TERMS AND CONDITIONS.—Except 
as otherwise specified in this subsection, a loan guar-
antee under paragraph (1) shall be subject to such 
terms and conditions as the Secretary may prescribe. 
‘‘(7) REVIEW.— 
‘‘(A) IN GENERAL.—The Secretary shall pe-
riodically assess the risks associated with loans 
guaranteed under paragraph (1). 
‘‘(B) COMPTROLLER
GENERAL
REPORT.— 
Not later than 2 years after the date of enact-
ment of the Economic Revitalization and Inno-
vation Act of 2010, the Comptroller General 
shall— 
‘‘(i) conduct a comprehensive review of 
the program under this subsection; and 
‘‘(ii) submit to Congress a report on 
the results of the review. 
‘‘(8) PROGRAM LEVELS.—In carrying out para-
graph (1) during fiscal years 2011 through 2015, the 
Secretary may not guarantee loans in an amount 
that exceeds— 
‘‘(A) $50,000,000 for a single project; 
‘‘(B) $235,000,000 in a single fiscal year; 
and 
‘‘(C) $500,000,000 in the aggregate.’’. 
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(b) CLERICAL AMENDMENT.—The table of contents in 
section 1(b), as amended by this Act, is further amended 
by inserting after the item relating to section 207 the fol-
lowing: 
‘‘Sec. 208. Financial assistance for business incubators and science and research 
parks.’’. 
SEC. 206. GRANTS FOR ECONOMIC ADJUSTMENT. 
(a) IN GENERAL.—Section 209(a) (42 U.S.C. 3149(a)) 
is amended— 
(1) by inserting after ‘‘public facilities,’’ the fol-
lowing: ‘‘science and research park development 
projects (as defined in section 208(a)),’’; and 
(2) by inserting after ‘‘revolving loan fund’’ the 
following: ‘‘, a challenge grant, and operating support 
for business incubators (as defined in section 
208(a))’’. 
(b) PARTICULAR COMMUNITY ASSISTANCE.—Section 
209(c) (42 U.S.C. 3149(c)) is amended— 
(1) in the matter preceding paragraph (1) by 
striking ‘‘injured’’ and inserting ‘‘affected’’; 
(2) in paragraph (1)— 
(A) by striking ‘‘or realignments,’’ and in-
serting ‘‘, realignments, or mission growth,’’; and 
(B) by inserting after ‘‘their economies’’ the 
following: ‘‘or supporting the economic adjust-
ment activities of the Secretary of Defense’’; 
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(3) in paragraph (4) by striking ‘‘or’’ at the end; 
(4) in paragraph (5)— 
(A) by striking ‘‘manufacturing jobs’’ and 
inserting ‘‘manufacturing, information tech-
nology, natural resource, agricultural, or service 
sector jobs’’; and 
(B) by striking the period at the end and 
inserting ‘‘;’’; and 
(5) by adding at the end the following: 
‘‘(6) a lack of technology infrastructure, includ-
ing inadequate access to broadband capacity suffi-
cient to support economic development objectives; 
‘‘(7) an inability to utilize alternative means of 
energy production and distribution; or 
‘‘(8) insufficient access to capital and credit nec-
essary for business retention and expansion, entrepre-
neurship, and innovation.’’. 
(c) SPECIAL PROVISIONS RELATING TO REVOLVING 
LOAN FUND GRANTS.—Section 209(d) (42 U.S.C. 3149(d)) 
is amended— 
(1) in paragraph (2)— 
(A) by redesignating subparagraphs (B) 
and (C) as subparagraphs (C) and (D), respec-
tively; and 
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(B) by inserting after subparagraph (A) the 
following: 
‘‘(B) at the request of a grantee, approve the 
transfer of all or a portion of the assets of a re-
volving loan fund of the grantee to another eligi-
ble recipient to assist in establishing or main-
taining a multiregion or national revolving loan 
fund;’’; and 
(2) by adding at the end the following: 
‘‘(5) CONVERSION OF REVOLVING LOAN FUND AS-
SETS.— 
‘‘(A) AUTHORITY.—At the request of a grant 
recipient, the Secretary may approve the use of 
the assets of a revolving loan fund established by 
the grant recipient with assistance under this 
section for another project, if— 
‘‘(i) the project is eligible for assistance 
under this Act; and 
‘‘(ii) the Secretary determines that the 
revolving loan fund is no longer necessary 
and the grant recipient, as a result of 
changed economic development needs, will 
make better use of the assets by carrying out 
the project. 
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‘‘(B) METHODS OF CONVERSION.—If conver-
sion of a revolving loan fund is approved under 
subparagraph (A), the applicable grant recipient 
may convert the assets of the revolving loan fund 
by— 
‘‘(i) selling to a third party any assets 
of the revolving loan fund; or 
‘‘(ii) retaining repayments of principal 
and interest amounts made on loans pro-
vided through the revolving loan fund. 
‘‘(C) TERMS AND CONDITIONS.—Except as 
otherwise provided under this paragraph, the 
Secretary may establish such terms and condi-
tions with respect to the conversion of a revolv-
ing loan fund under this paragraph as the Sec-
retary determines appropriate. 
‘‘(D) 
EXPEDIENCY
REQUIREMENT.—The 
Secretary shall ensure that any assets of a re-
volving loan fund converted under this para-
graph are used in an expeditious manner. 
‘‘(6) RELEASE.—The Secretary may release, sub-
ject to terms and conditions the Secretary determines 
appropriate, the Federal Government’s interest in a 
revolving loan fund established by a grant recipient 
with assistance under this section on or after the date 
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that is 7 years after the date on which the applicable 
grant was fully disbursed, if the Secretary determines 
that— 
‘‘(A) the grant recipient has carried out the 
terms of the grant in a satisfactory manner; 
‘‘(B) any proceeds realized after the release 
of the Federal Government’s interest will be used 
for one or more activities that carry out the eco-
nomic development purposes of this Act; and 
‘‘(C) the grant recipient will continue to 
satisfy the requirements of section 602. 
‘‘(7) EQUITY INVESTMENT DEMONSTRATION PRO-
GRAM.— 
‘‘(A) AUTHORITY.— 
‘‘(i) IN GENERAL.—To determine the 
feasibility and utility of providing equity 
investments through revolving loan funds es-
tablished by grant recipients with assistance 
under this section, the Secretary may au-
thorize, at the request of a grant recipient, 
the use of the capital base of a revolving 
loan fund for equity investments in busi-
nesses in need of capital to start up oper-
ations or expand operations beyond the 
startup phase. 
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‘‘(ii) DEMONSTRATED CAPACITY.—Be-
fore authorizing a grant recipient to make 
equity investments under clause (i), the Sec-
retary shall determine that the grant recipi-
ent has the demonstrated capacity for en-
gaging in equity investments or will con-
tract with another company or organization 
with a proven track record with respect to 
equity investments. 
‘‘(iii) 
PREFERENTIAL
CONSIDER-
ATION.—In authorizing grant recipients to 
make equity investments under clause (i), 
the Secretary shall give preferential consid-
eration to requests from grant recipients 
that intend to focus their investment activi-
ties in support of business incubators (as 
defined in section 208(a)), companies com-
mercializing technologies in conjunction 
with 
institutions 
of 
higher 
education, 
science and research parks (as defined in 
section 208(a)), or technology or manufac-
turing companies relocating to the United 
States from outside the United States. 
‘‘(iv) GEOGRAPHIC DIVERSITY.—In au-
thorizing grant recipients to make equity 
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investments under clause (i), the Secretary 
shall ensure, to the extent practicable, that 
grant recipients authorized represent diverse 
geographic areas of the United States, in-
cluding rural and urban areas. 
‘‘(B) REQUIREMENTS.—In authorizing a 
grant recipient to make equity investments 
under subparagraph (A)(i), the Secretary shall 
ensure that— 
‘‘(i) not more than 25 percent of the 
capital base of the revolving loan fund of 
the grant recipient will be used for equity 
investments; 
‘‘(ii) the Federal share of the amount 
used for an equity investment made by the 
grant recipient will not exceed 50 percent; 
and 
‘‘(iii) the total amount of the equity 
investments made by the grant recipient in 
any one business will not exceed $250,000. 
‘‘(C) OTHER TERMS AND CONDITIONS.—Ex-
cept as otherwise provided in this paragraph, the 
Secretary may authorize grant recipients to 
make equity investments under subparagraph 
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(A)(i) subject to terms and conditions the Sec-
retary determines are appropriate. 
‘‘(D) DISPOSITION
OF
EQUITY
SECURI-
TIES.—In the event that the Secretary acquires 
equity securities as a result of a default by any 
party under any agreement relating to the terms 
of the Secretary’s extension of assistance under 
this paragraph, the Secretary shall liquidate the 
Federal interest in such securities as soon as pos-
sible and for such consideration as the Secretary 
determines appropriate. The Secretary may as-
sign or transfer the securities to a third party 
for purposes of liquidation and the third party 
may retain proceeds from the disposition of the 
securities to defray costs related to the liquida-
tion. 
‘‘(E) DEFINITIONS.—In this paragraph the 
following definitions apply: 
‘‘(i) CAPITAL BASE.—The term ‘capital 
base’ means the amount of the funding, 
from a grant under this section and from 
non-Federal sources, initially provided to 
establish a revolving loan fund under this 
section. 
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‘‘(ii) EQUITY INVESTMENT.—The term 
‘equity investment’ means an investment of 
funds in a business that results in the ac-
quisition of an equity security. 
‘‘(iii) EQUITY
SECURITY.—The term 
‘equity security’ means an instrument that 
signifies an ownership interest in a busi-
ness.’’. 
SEC. 207. SUSTAINABLE ECONOMIC DEVELOPMENT DEM-
ONSTRATION PROGRAM. 
(a) IN GENERAL.—Section 218 (42 U.S.C. 3154d) is 
amended to read as follows: 
‘‘SEC. 218. SUSTAINABLE ECONOMIC DEVELOPMENT DEM-
ONSTRATION PROGRAM. 
‘‘(a) IN GENERAL.—On the application of an eligible 
recipient, the Secretary may provide technical assistance, 
make grants, enter into contracts, or otherwise provide 
funding for a project— 
‘‘(1) to promote energy efficiency to enhance the 
economic competitiveness of an area; 
‘‘(2) to increase the use of renewable energy tech-
nologies, including solar, wind, or geothermal tech-
nologies, to support sustainable economic development 
and job growth, with a priority given to projects that 
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incorporate photovoltaics or relate to agribusiness, in-
cluding in both urban and rural areas; 
‘‘(3) to support energy efficiency or alternative 
energy development plans, studies, or analysis (in-
cluding with respect to job training, attraction, or re-
tention) to enhance a comprehensive economic devel-
opment strategy with respect to which funding has 
been provided under this Act; 
‘‘(4) to support the efforts of a community to 
have a technology or manufacturing business located 
outside the United States relocate to the United 
States; and 
‘‘(5) to supplement another project funded by a 
Federal grant, loan, or loan guarantee provided for a 
purpose described in paragraphs (1) through (4). 
‘‘(b) FEDERAL SHARE.—Notwithstanding section 204, 
the Federal share of the cost of a project funded under this 
section— 
‘‘(1) if described in paragraph (1), (2), (3), or 
(4) of subsection (a), shall not exceed 80 percent; and 
‘‘(2) if described in subsection (a)(5), shall not 
exceed 100 percent. 
‘‘(c) SOLICITATION OF APPLICATIONS.—Not later than 
60 days after a date on which funds are made available 
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to carry out this section, the Secretary shall solicit applica-
tions for assistance under this section.’’. 
(b) CLERICAL AMENDMENT.—The table of contents in 
section 1(b), as amended by this Act, is further amended 
by striking the item relating to section 218 and inserting 
the following: 
‘‘Sec. 218. Sustainable economic development demonstration program.’’. 
SEC. 208. JOB CREATION GOALS. 
(a) IN GENERAL.—Title II (42 U.S.C. 3141 et seq.), 
as amended by this Act, is further amended by adding at 
the end the following: 
‘‘SEC. 219. JOB CREATION GOALS. 
‘‘(a) IN GENERAL.—As a condition of the receipt of 
a grant under section 201, 205, or 209 or a loan guarantee 
under section 208, the recipient of the grant or loan guar-
antee shall enter into an agreement with the Secretary that 
establishes goals for the number of jobs to be created as a 
result of the projects and activities funded by the grant or 
loan guarantee. 
‘‘(b) COMPLIANCE WITH GOALS.—The Secretary may 
take appropriate action to penalize a grant recipient who 
fails to satisfy job creation goals specified in an agreement 
under subsection (a).’’. 
(b) CLERICAL AMENDMENT.—The table of contents in 
section 1(b), as amended by this Act, is further amended 
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by inserting after the item relating to section 218 the fol-
lowing: 
‘‘Sec. 219. Job creation goals.’’. 
SEC. 209. PROHIBITION WITH RESPECT TO USE OF ASSIST-
ANCE. 
(a) IN GENERAL.—Title II (42 U.S.C. 3141 et seq.), 
as amended by this Act, is further amended by adding at 
the end the following: 
‘‘SEC. 220. PROHIBITION WITH RESPECT TO USE OF ASSIST-
ANCE. 
‘‘The Secretary shall ensure that a recipient of assist-
ance under this Act does not utilize the assistance for activi-
ties to intentionally attract, to the location of the recipient, 
a business or other source of employment already estab-
lished elsewhere in the United States, if the relocation would 
adversely affect the location where the business or other 
source of employment was previously located.’’. 
(b) CLERICAL AMENDMENT.—The table of contents in 
section 1(b), as amended by this Act, is further amended 
by inserting after the item relating to section 219 the fol-
lowing: 
‘‘Sec. 220. Prohibition with respect to use of assistance.’’. 
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TITLE 
III—ELIGIBILITY; 
COM-
PREHENSIVE ECONOMIC DE-
VELOPMENT STRATEGIES 
SEC. 301. ELIGIBILITY OF AREAS. 
Section 301 (42 U.S.C. 3161) is amended by adding 
at the end the following: 
‘‘(e) SPECIAL NEED.—In determining whether an area 
has experienced or is about to experience a special need for 
purposes of subsection (a)(3), the Secretary may consider 
whether the area has been affected by— 
‘‘(1) the loss of a substantial employer; 
‘‘(2) substantial outmigration or population loss; 
‘‘(3) substantial foreclosure rates; 
‘‘(4) substantial underemployment; 
‘‘(5) military base or defense installation closure, 
realignment, or mission growth; 
‘‘(6) a natural or other disaster or emergency; 
‘‘(7) substantial natural resource depletion; 
‘‘(8) substantial negative effects resulting from 
changing trade patterns; or 
‘‘(9) other circumstances that the Secretary de-
termines are indicative of special or extraordinary 
unemployment or economic adjustment problems.’’. 
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SEC. 
302. 
COMPREHENSIVE 
ECONOMIC 
DEVELOPMENT 
STRATEGIES. 
(a) IN GENERAL.—Section 302(a) (42 U.S.C. 3162(a)) 
is amended— 
(1) in paragraph (1) by inserting after ‘‘prob-
lems’’ the following: ‘‘and opportunities’’; 
(2) in paragraph (2) by inserting after ‘‘private’’ 
the following: ‘‘(including nonprofit organization)’’; 
and 
(3) in paragraph (3)— 
(A) in subparagraph (A)— 
(i) by striking ‘‘economic problems’’ 
and inserting ‘‘economic development prob-
lems and opportunities’’; 
(ii) by inserting after ‘‘strategy, pro-
motes the’’ the following: ‘‘effective’’; and 
(iii) by striking ‘‘balances’’ and insert-
ing ‘‘optimizes’’; and 
(B) in subparagraph (B) by inserting after 
‘‘the problems’’ the following: ‘‘and take advan-
tage of the opportunities’’. 
(b) APPROVAL OF OTHER PLAN.—Section 302(c) (42 
U.S.C. 3162(c)) is amended— 
(1) in paragraph (1) by inserting after ‘‘feder-
ally supported program’’ the following: ‘‘or under a 
State, regionally, or locally supported program’’; and 
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(2) in paragraph (2) by striking ‘‘paragraph’’ 
and inserting ‘‘subsection’’. 
(c) NOTIFICATION OF APPROVAL OR DISAPPROVAL OF 
COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGY OR 
OTHER PLAN.—Section 302 (42 U.S.C. 3162) is amended 
by adding at the end the following: 
‘‘(d) NOTIFICATION OF APPROVAL OR DISAPPROVAL OF 
COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGY OR 
OTHER PLAN.— 
‘‘(1) DEADLINE.—The Secretary shall notify an 
eligible recipient of the approval or disapproval of a 
comprehensive economic development strategy or other 
plan submitted under this section not later than 60 
days after the date of receiving the strategy or plan. 
‘‘(2) BASIS FOR DISAPPROVAL.—A notification of 
disapproval under this subsection shall include a de-
scription of the basis for the disapproval.’’. 
TITLE IV—ECONOMIC 
DEVELOPMENT DISTRICTS 
SEC. 401. DESIGNATION OF ECONOMIC DEVELOPMENT DIS-
TRICTS. 
(a) IN GENERAL.—Section 401(a) (42 U.S.C. 3171(a)) 
is amended in the matter preceding paragraph (1) by strik-
ing ‘‘broad geographic’’ and inserting ‘‘national and re-
gional’’. 
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SEC. 402. TERMINATION OR MODIFICATION OF ECONOMIC 
DEVELOPMENT DISTRICTS. 
Section 402 (42 U.S.C. 3172) is amended by adding 
at the end the following: ‘‘The standards shall include au-
thority for the Secretary to review, at the request of a dis-
trict, district designations to evaluate whether the designa-
tions meet economic development and labor force needs and, 
when warranted, to approve the combination of districts 
and adjust applicable assistance levels for the resulting com-
bination.’’. 
TITLE V—ADMINISTRATION 
SEC. 501. CONSULTATION WITH OTHER PERSONS AND 
AGENCIES. 
Section 503(a) (42 U.S.C. 3193(a)) is amended by 
striking ‘‘or underemployment’’ and inserting ‘‘, under-
employment, or outmigration’’. 
SEC. 502. PERFORMANCE EVALUATIONS OF GRANT RECIPI-
ENTS. 
(a) PURPOSE OF EVALUATIONS OF UNIVERSITY CEN-
TERS.—Section 506(b) (42 U.S.C. 3196(b)) is amended by 
striking ‘‘are worthy of’’ and all that follows through the 
period at the end and inserting ‘‘maintain the capacity to 
implement the priorities of the Secretary.’’. 
(b) TIMING
OF EVALUATIONS.—Section 506(c) (42 
U.S.C. 3196(c)) is amended to read as follows: 
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‘‘(c) TIMING OF EVALUATIONS.—Evaluations under 
subsection (a) shall be conducted on a continuing basis so 
that— 
‘‘(1) with respect to economic development dis-
tricts, each grantee is evaluated within 3 years after 
the first award of assistance to the grantee and at 
least once every 3 years thereafter, so long as the 
grantee receives the assistance; and 
‘‘(2) with respect to university centers, each 
grantee is evaluated within 5 years after the first 
award of assistance to the grantee and at least once 
every 5 years thereafter, so long as the grantee re-
ceives the assistance.’’. 
(c) EVALUATION CRITERIA
FOR UNIVERSITY CEN-
TERS.—Section 506(d)(2) (42 U.S.C. 3196(d)(2)) is amend-
ed to read as follows: 
‘‘(2) EVALUATION
CRITERIA
FOR
UNIVERSITY 
CENTERS.—The criteria for evaluation of a university 
center shall provide, at a minimum, for an assess-
ment of— 
‘‘(A) the center’s contribution to providing 
technical assistance, conducting applied research, 
and disseminating the results of the activities of 
the center; 
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‘‘(B) the center’s conformance with the ap-
proved program plan of the center and the goals 
of the Secretary; and 
‘‘(C) if appropriate, the center’s activities to 
leverage and maximize the economic development 
potential of Federal investments in high-speed 
rail projects, including activities— 
‘‘(i) to encourage collaboration across 
regions; and 
‘‘(ii) to evaluate manufacturing and 
economic development opportunities relating 
to the projects.’’. 
SEC. 503. ECONOMIC DEVELOPMENT REPRESENTATIVES. 
(a) IN GENERAL.—Title V (42 U.S.C. 3191 et seq.) is 
amended by adding at the end the following: 
‘‘SEC. 508. ECONOMIC DEVELOPMENT REPRESENTATIVES. 
‘‘The Secretary shall ensure that the Economic Devel-
opment Administration maintains— 
‘‘(1) not less than 35 individuals in the position 
of economic development representative during fiscal 
year 2012; and 
‘‘(2) not less than 40 individuals in the position 
of economic development representative during fiscal 
year 2013 and each fiscal year thereafter.’’. 
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(b) CLERICAL AMENDMENT.—The table of contents in 
section 1(b), as amended by this Act, is further amended 
by inserting after the item relating to section 507 the fol-
lowing: 
‘‘Sec. 508. Economic development representatives.’’. 
SEC. 504. LIMITATION ON CERTAIN POSITIONS. 
(a) IN GENERAL.—Title V (42 U.S.C. 3191 et seq.), 
as amended by this Act, is further amended by adding at 
the end the following: 
‘‘SEC. 509. LIMITATION ON CERTAIN POSITIONS. 
‘‘Beginning in fiscal year 2012, the number of posi-
tions in the Economic Development Administration that, 
for purposes of title 5, United States Code, are general posi-
tions (as defined by section 3132(a)(9) of such title) which 
may be filled only by a noncareer appointee (as defined 
by section 3132(a)(7) of such title) shall be limited to 5.’’. 
(b) CLERICAL AMENDMENT.—The table of contents in 
section 1(b), as amended by this Act, is further amended 
by inserting after the item relating to section 508 the fol-
lowing: 
‘‘Sec. 509. Limitation on certain positions.’’. 
TITLE VI—MISCELLANEOUS 
SEC. 601. ANNUAL REPORT TO CONGRESS. 
Section 603(b) (42 U.S.C. 3213(b)) is amended— 
(1) in paragraph (2)(B) by striking ‘‘and’’ at 
the end; 
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(2) in paragraph (3) by striking the period at 
the end and inserting a semicolon; and 
(3) by adding at the end the following: 
‘‘(4) with respect to each university center as-
sisted with funding under this Act, include— 
‘‘(A) a specification of the activities of the 
university center; 
‘‘(B) a specification of the recipients of tech-
nical assistance from the university center; and 
‘‘(C) a specification of the outcomes result-
ing from the job creation, research, and technical 
assistance activities of the university center; and 
‘‘(5) specify the projects, and the funding pro-
vided for the projects, that were funded in conjunction 
with one or more of the regional commissions.’’. 
SEC. 602. MAINTENANCE OF EFFORT. 
(a) IN GENERAL.—Title VI (42 U.S.C. 3211 et seq.) 
is amended by adding at the end the following: 
‘‘SEC. 613. MAINTENANCE OF EFFORT. 
‘‘(a) EXPECTED PERIOD OF BEST EFFORTS.— 
‘‘(1) ESTABLISHMENT.—To carry out the pur-
poses of this Act, before providing investment assist-
ance for a construction project under this Act, the 
Secretary shall establish the expected period during 
which the recipient of the assistance shall make best 
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efforts to achieve the economic development objectives 
of the assistance. 
‘‘(2) TREATMENT OF PROPERTY.—To obtain the 
best efforts of a recipient during the period established 
under paragraph (1), during that period— 
‘‘(A) any property that is acquired or im-
proved, in whole or in part, using investment as-
sistance under this Act shall be held in trust by 
the recipient for the benefit of the project; and 
‘‘(B) the Secretary shall retain an undi-
vided equitable reversionary interest in the prop-
erty. 
‘‘(3) TERMINATION OF FEDERAL INTEREST.— 
‘‘(A) IN GENERAL.—Beginning on the date 
on which the Secretary determines that a recipi-
ent has fulfilled the obligations of the recipient 
for the applicable period under paragraph (1), 
taking into consideration the economic condi-
tions existing during that period, the Secretary 
may terminate the reversionary interest of the 
Secretary in any applicable property under 
paragraph (2)(B). 
‘‘(B) ALTERNATIVE
METHOD
OF
TERMI-
NATION.— 
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