I 
109TH CONGRESS 
1ST SESSION H. R. 2683 
To increase the expertise and capacity of community-based organizations 
involved in economic development activities and key community develop-
ment programs. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 26, 2005 
Mrs. JONES
of Ohio (for herself, Mr. TIBERI, Mr. GRIJALVA, Mr. 
BLUMENAUER, Mr. MCINTYRE, Ms. EDDIE BERNICE JOHNSON of Texas, 
Mr. OWENS, Mr. KILDEE, Ms. CARSON, Ms. SCHAKOWSKY, and Mr. 
BROWN of Ohio) introduced the following bill; which was referred to the 
Committee on Financial Services, and in addition to the Committee on 
Ways and Means, for a period to be subsequently determined by the 
Speaker, in each case for consideration of such provisions as fall within 
the jurisdiction of the committee concerned 
A BILL 
To increase the expertise and capacity of community-based 
organizations involved in economic development activities 
and key community development programs. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Community Economic 
Development Expertise Enhancement Act of 2005’’.
TITLE I—EXPERTISE 
ENHANCEMENT 
SEC. 101. FINDINGS AND PURPOSES. 
(a) CONGRESSIONAL FINDINGS.—The Congress finds 
that— 
(1) there are a multitude of community eco-
nomic development programs that the Federal Gov-
ernment successfully administers that help many of 
the Nation’s most economically distressed areas revi-
talize their physical and economic structures and 
provide support to small and medium-sized busi-
nesses to help them grow and generate long-term 
jobs and economic opportunity; 
(2) there are many nonprofit, nongovernmental, 
community-based economic development organiza-
tions, including faith-based organizations, that have 
successfully operated community economic develop-
ment programs that create jobs, build homes, and 
revitalize local markets; 
(3) existing Federal community economic devel-
opment programs are intended to leverage private 
sector investment as part of an overall community 
development effort; 
(4) existing Federal community economic devel-
opment programs connect residents of distressed
neighborhoods to jobs and opportunities of the re-
gional marketplace, thereby replacing economic dis-
tress with opportunity; 
(5) existing Federal community economic devel-
opment programs provide financial assistance, in-
cluding tax credits and loan guarantees, involve pri-
vate investment institutions and universities, and 
provide technical expertise for small businesses; 
(6) existing Federal community economic devel-
opment programs build upon ongoing efforts to en-
courage economic growth in distressed communities, 
helping to create new affordable housing opportuni-
ties, allowing communities to address important pub-
lic safety, access to capital, infrastructure, and envi-
ronmental concerns, and providing social services in-
cluding affordable health care, transportation, child 
care, and youth development; 
(7) the continuing success of Federal commu-
nity economic development programs will depend in 
great measure upon the ability of community-based 
organizations and private sector institutions to form 
partnerships that connect residents of distressed 
neighborhoods to jobs and other opportunities; 
(8) the Federal Government administers various 
programs that employ the services and capabilities
of community-based organizations to deliver a wide 
range of services to residents of distressed commu-
nities; 
(9) Federal community economic development 
programs help achieve lasting improvement and en-
hance domestic prosperity by the establishment of 
stable and diversified local economies, sustainable 
development, and improved local conditions; 
(10) there is a need for greater cooperation be-
tween the Federal Government, States, and other 
entities to ensure that, consistent with national com-
munity economic development objectives, Federal 
programs are compatible with, and further the objec-
tives of, State, regional, and local economic develop-
ment plans and comprehensive economic develop-
ment strategies; 
(11) while economic development is an inher-
ently local process, the Federal Government should 
work in closer partnership with community-based 
economic development organizations to ensure that 
existing resources are fully utilized and all Ameri-
cans have an opportunity to participate in the eco-
nomic growth of the United States; and
(12) extending technical assistance to commu-
nity-based economic development organizations may 
be necessary or desirable to— 
(A) alleviate economic distress; 
(B) encourage and support public-private 
partnerships for the formation and improve-
ment of economic development strategies that 
promote the growth of the national economy; 
(C) stimulate modernization and techno-
logical advances in the generation and commer-
cialization of goods and services; and 
(D) enhance the effectiveness of United 
States companies in the global economy. 
(b) PURPOSES.—The purposes of this title are— 
(1) to provide a new source of Federal funding 
to enhance the capabilities of nonprofit, nongovern-
mental, community-based economic development or-
ganizations, or collaborations of such organizations, 
to leverage private sector investment in low income, 
renewal communities, enterprise communities, and 
empowerment zones as part of an overall community 
development strategy; 
(2) to establish educational programs for non-
profit, nongovernmental, community-based organiza-
tions to expand their project development capabili-
ties; 
(3) to increase the use of tax incentives to le-
verage private sector investment in community eco-
nomic development projects; 
(4) to promote and facilitate investments in 
community-based economic development projects 
from traditional and nontraditional capital sources; 
(5) to encourage partnerships between commu-
nity-based organizations that will expand and en-
hance the expertise of emerging such nonprofit, non-
governmental organizations in utilizing private sec-
tor investment as part of their comprehensive com-
munity development strategies; and 
(6) to ensure that viable community economic 
development 
projects 
are 
successfully 
pursued 
throughout the United States in communities having 
a wide range of economic, geographic, and social 
characteristics.
SEC. 102. GRANTS TO INCREASE CAPACITY AND EXPERTISE 
OF NONPROFIT, NONGOVERNMENTAL COM-
MUNITY-BASED ORGANIZATIONS INVOLVED 
IN COMMUNITY ECONOMIC DEVELOPMENT 
ACTIVITIES. 
(a) GRANT AUTHORITY.—The Secretary of Housing 
and Urban Development may make grants under this sec-
tion only to eligible community-based economic develop-
ment organizations only for the purposes under subsection 
(c). 
(b) ELIGIBLE COMMUNITY-BASED ECONOMIC DE-
VELOPMENT ORGANIZATIONS.—For purposes of this sec-
tion, the term ‘‘eligible community-based economic devel-
opment organization’’ means a community-based economic 
development organization (as such term is defined under 
section 7), or a collaboration of such organizations (such 
as city or state community economic development associa-
tions), that demonstrates management capacity by meet-
ing, as determined by the Secretary, two or more of the 
following requirements: 
(1) AFFORDABLE HOUSING.—Having completed 
construction of 10 or more dwelling units of afford-
able housing. 
(2) FACILITIES.—Having completed construc-
tion of a commercial, industrial, retail, or commu-
nity facility project.
(3) PARTNERING.—Partnering, or having a his-
tory of partnering, with community-based economic 
development organizations to provide training, edu-
cation, capacity, technical assistance, or other men-
toring services. 
(4) SUPPORT OF EMERGING ORGANIZATIONS.— 
Exhibiting willingness to form operational partner-
ships and execute contractual agreements with 
emerging community-based economic development 
organizations. 
(5) OWNERSHIP
OF
ASSETS.—Having owner-
ship of tangible assets the value of which are equal 
to or exceed the value of the grant requested under 
this section. 
(c) USE OF FUNDS.— 
(1) PURPOSES.—Amounts from grants under 
this section may be used only for the following pur-
poses: 
(A) SALARIES AND ADMINISTRATIVE EX-
PENSES.—For salaries or administrative ex-
penses of the grantee or an emerging commu-
nity-based economic development organization 
that is undertaking a community economic de-
velopment project.
(B) TECHNICAL ASSISTANCE.—To provide 
technical assistance to an emerging community- 
based economic development organization that 
is undertaking a community economic develop-
ment project. 
(C) TRAINING AND RESEARCH.—Through 
subgrants pursuant to paragraph (2), for train-
ing, research, and technical assistance relating 
to community economic development, including 
subgrants for program evaluation and economic 
impact analyses. 
(2) 
EXPENDITURE.—Amounts 
from 
grants 
under this section may be used directly by the eligi-
ble community-based economic development organi-
zation receiving the grant or redistributed by such 
recipient to other nonprofit, nongovernmental enti-
ties in grants, loans, loan guarantees, payments to 
reduce interest on loan guarantees, or other appro-
priate assistance, except that a recipient may not 
provide any such assistance from grant amounts to 
a private, for-profit entity. 
(d) SELECTION CRITERIA.—The Secretary shall issue 
rules, guidelines, and procedures to provide for the selec-
tion of eligible community-based economic development or-
ganizations for grants under this section, based upon a
determination of the relative effectiveness of such organi-
zations in carrying out the purposes of this title. Such 
rules, guidelines, and procedures shall provide for consid-
eration of the following factors: 
(1) The number of such organizations eligible 
to receive assistance under existing programs other 
than this section. 
(2) The extent to which grant amounts pro-
vided under this section will enhance the capabilities 
of community-based economic development organiza-
tions in underserved States and localities. 
(3) The extent to which an eligible community- 
based economic development organization applying 
for a grant does not have access to other traditional 
local financial sources. 
(4) The extent to which such an organization 
represents nonprofit, nongovernmental organizations 
that serve low-income communities and persons. 
(5) The extent to which such an organization 
will implement a plan to become financially sustain-
able. 
(e) AMOUNT.—A grant under this section to a single 
grantee shall be in an amount that is not less than 
$250,000 and does not exceed $1,000,000.
(f) PROHIBITION OF MATCHING FUNDS REQUIRE-
MENT.—The Secretary may not require a grantee under 
this section to provide amounts from sources other than 
this section to fund the specific activities to be carried out 
with grant amounts under this section. 
(g) ELIGIBILITY FOR COMMUNITY REINVESTMENT 
ACT CREDITS.—In assessing and taking into account, 
under section 804(a) of the Community Reinvestment Act 
of 1977, the record of any regulated financial institution, 
the appropriate Federal financial supervisory agency (as 
defined in section 803(1) of such Act) may consider as 
a factor investments in community economic development 
projects of eligible community-based economic develop-
ment organizations in determining whether the institution 
is meeting the credit needs of its community for purposes 
of such section 804(a). 
(h) AUTHORIZATION OF APPROPRIATIONS.— 
(1) IN GENERAL.—There are authorized to be 
appropriated 
for 
grants 
under 
this 
section 
$75,000,000 for each of fiscal years 2006, 2007, 
and 2008. 
(2) SET-ASIDE
FOR
TECHNICAL
ASSISTANCE 
AND
TRAINING.—Of the amount made available 
under this title for each fiscal year, $10,000,000 
shall be available only for technical assistance and
training activities, to be conducted by national com-
munity development organizations, state community 
development associations, or city community develop-
ment associations, which have extensive nationwide 
partnerships and experience in working with commu-
nity-based economic development organizations, as 
authorized by section 4 of the HUD Demonstration 
Act of 1993 (42 U.S.C. 9816 note), as in effect im-
mediately before May 1, 2000. Of the amount re-
served for use under this paragraph, not less than 
$4,000,000 shall be used for the support of develop-
ment organizations in rural areas. 
SEC. 103. ASSESSMENT OF COMMUNITY-BASED ECONOMIC 
DEVELOPMENT EXPERTISE. 
(a) CAPABILITY STUDY.—The Secretary shall con-
duct a study to assess the capability needs of community- 
based economic development organizations, which shall— 
(1) analyze, evaluate, and recommend processes 
to improve the administrative and operational capa-
bilities of such organizations to acceptable levels of 
success in support of the role of the Federal Govern-
ment in community economic development; and 
(2) assess the extent to which federal agencies 
can incorporate such organizations into the formula-
tion of the strategic plans of funding agencies and,
if the extent or quality of this type of involvement 
is satisfactory, can support the role of the Federal 
Government in community economic development. 
The Secretary shall submit a report regarding the results 
of the study under this subsection not later than the expi-
ration of the 6-month period beginning on the date of the 
enactment of this Act. 
(b) ANNUAL REPORTS
TO CONGRESS.—Not later 
than the first March 1 occurring after the end of each 
fiscal year for which amounts are made available for 
grants under section 3, the Secretary shall submit a report 
to the Congress, which shall include— 
(1) an evaluation of the progress made during 
such fiscal year to enhance the administrative and 
operational capabilities of community-based eco-
nomic development organizations in support of the 
role of the Federal Government in community eco-
nomic development; 
(2) an assessment of the extent to which Fed-
eral agencies have, during such fiscal year, involved 
community-based economic development organiza-
tions in responsibilities for carrying out community 
economic development programs administered by the 
agencies and delivering services under such pro-