133
SEC. 260. PROGRAM PRIORITY FOR SPECIAL EMPHASIS
PROGRAMS.
(a) IN GENERAL.—The Secretary shall give priority
in providing lines of credit under this part to community
development corporations that propose to undertake eco-
nomic development activities in distressed communities
that target women, Native Americans, at risk youth, farm-
workers, population-losing communities, very low-income
communities, single mothers, veterans, and refugees; or
that expand employee ownership of private enterprises and
small businesses, and to programs providing loans of not
more than $35,000 to very small business enterprises.
(b) RESERVATION OF FUNDS.—Not less than 5 per-
cent of the amounts made available under section
278(a)(2)(A) may be reserved to carry out the activities
described in subsection (a).
PART II—EMERGING COMMUNITY
DEVELOPMENT CORPORATIONS
SEC. 265. COMMUNITY DEVELOPMENT CORPORATION IM-
PROVEMENT GRANTS.
(a) PURPOSE.—It is the purpose of this section to
provide assistance to community development corporations
to upgrade the management and operating capacity of
such corporations and to enhance the resources available
to enable such corporations to increase their community
economic development activities.
134
(b) SKILL ENHANCEMENT GRANTS.—
(1) IN GENERAL.—The Secretary shall award
grants to community development corporations to
enable such corporations to attain or enhance the
business management and development skills of the
individuals that manage such corporations to enable
such corporations to seek the public and private re-
sources necessary to develop community economic
development projects.
(2) USE OF FUNDS.—A recipient of a grant
under paragraph (1) may use amounts received
under such grant—
(A) to acquire training and technical as-
sistance from agencies or institutions that have
extensive experience in the development and
management of low-income community eco-
nomic development projects; or
(B) to acquire such assistance from other
highly successful community development cor-
porations.
(c) OPERATING GRANTS.—
(1) IN GENERAL.—The Secretary shall award
grants to community development corporations to
enable such corporations to support an administra-
tive capacity for the planning, development, and
135
management of low-income community economic de-
velopment projects.
(2) USE OF FUNDS.—A recipient of a grant
under paragraph (1) may use amounts received
under such grant—
(A) to conduct evaluations of the feasibility
of potential low-income community economic de-
velopment projects that address identified needs
in the low-income community and that conform
to those projects and activities permitted under
part I;
(B) to develop a business plan related to
such a potential project; or
(C) to mobilize resources to be contributed
to a planned low-income community economic
development project or strategy.
(d) APPLICATIONS.—A community development cor-
poration that desires to receive a grant under this section
shall prepare and submit to the Secretary an application
at such time, in such manner, and containing such infor-
mation as the Secretary may require.
(e) AMOUNT AVAILABLE FOR A COMMUNITY DEVEL-
OPMENT CORPORATION.—Amounts provided under this
section to a community development corporation shall not
exceed $75,000 per year. Such corporations may apply for
136
grants under this section for up to 3 consecutive years,
except that such corporations shall be required to submit
a new application for each grant for which such corpora-
tion desires to receive and compete on the basis of such
applications in the selection process.
SEC. 266. EMERGING COMMUNITY DEVELOPMENT COR-
PORATION REVOLVING LOAN FUNDS.
(a) AUTHORITY.—The Secretary is authorized to
award grants to emerging community development cor-
porations to enable such corporations to establish, main-
tain or expand revolving loan funds, to make or guarantee
loans, or to make capital investments in new or expanding
local businesses.
(b) ELIGIBILITY.—To be eligible to receive a grant
under subsection (a), an entity shall—
(1) be a community development corporation;
(2) have completed not less than 1 nor more
than 2 community economic development projects or
related projects that improve or provide job and em-
ployment opportunities to low-income individuals;
(3) prepare and submit to the Secretary an ap-
plication at such time, in such manner, and contain-
ing such information as the Secretary may require,
including a strategic investment plan that identifies
and describes the economic characteristics of the
137
target area to be served, the types of business to be
assisted using amounts received under the grant and
the impact of such assistance on low-income individ-
uals; and
(4) have secured one or more commitments
from local sources for contributions (either in cash
or in kind, letters of credit, or letters of commit-
ment) in an amount that is equal to at least 10 per-
cent of the amounts requested in the application
submitted under paragraph (2).
(c) USE OF THE REVOLVING LOAN FUND.—
(1) IN GENERAL.—A revolving loan fund estab-
lished or maintained with amounts received under
this section may be utilized to provide financial and
technical assistance, loans, loan guarantees or in-
vestments to private business enterprises to—
(A) finance projects intended to provide
business and employment opportunities for low-
income individuals and to improve the quality of
life in urban and rural areas; and
(B) build and expand the capacity of
emerging community development corporations
and serve the economic needs of local residents.
(2) TECHNICAL
ASSISTANCE.—The Secretary
shall encourage emerging community development
138
corporations that receive grants under this section to
seek technical assistance from established commu-
nity development corporations, with expertise in the
planning, development and management of economic
development projects and shall facilitate the receipt
of such assistance.
(3) LIMITATION.—Not to exceed 10 percent of
the amounts received under this section by a grantee
shall be used for training, technical assistance and
administrative purposes.
(d) USE OF PROCEEDS FROM INVESTMENTS.—Pro-
ceeds derived from investments made with amounts pro-
vided under this section may be utilized only for the pur-
poses described in this subchapter and shall be reinvested
in the community in which they were generated.
(e) AMOUNTS AVAILABLE.—Amounts provided under
this section to a community development corporation shall
not exceed $500,000 per year.
PART III—RESEARCH AND
DEMONSTRATION
SEC. 271. RESEARCH AND DEMONSTRATION.
(a) GRANTS.—The Secretary shall award grants to
organizations to enable such organizations to undertake
programs involving research, testing, studies or dem-
onstrations related to community economic development.
139
(b) ELIGIBLE ORGANIZATIONS.—To be eligible to re-
ceive a grant under this section, an entity shall—
(1) be a community development corporation,
university, fiscal intermediary or a nonprofit organi-
zation involved in community-based economic devel-
opment activities; and
(2) prepare and submit to the Secretary an ap-
plication at such time, in such manner and contain-
ing such information as the Secretary determines
appropriate.
(c) USE
OF FUNDS.—Amounts received under a
grant awarded under this section shall be made available
for studies, reports, tests or demonstration projects that—
(1) identify current problems facing both urban
and rural low-income communities or specific popu-
lation groups within low-income communities and
population-losing communities;
(2) identify solutions to the problems facing
both urban and rural low-income communities or
specific population groups within low-income com-
munities;
(3) examine or critique current strategies being
implemented to address economic issues facing low-
income communities; and
140
(4) relate to any other matters determined ap-
propriate by the Secretary.
(d) MAXIMUM AMOUNT OF GRANT.—A grant award-
ed under this section shall not exceed $50,000.
PART IV—MISCELLANEOUS PROVISIONS
SEC. 275. JOINT PROGRAMS.
The Secretary shall develop and promulgate, in con-
sultation with the heads of other Federal agencies, regula-
tions designed to permit, where appropriate, the operation
of joint programs under which activities supported with
assistance provided under this chapter are coordinated
with community development activities supported with as-
sistance provided under other programs administered by
the Secretary and those administered by the heads of such
agencies.
SEC. 276. REPORTS.
(a) COMMUNITY DEVELOPMENT CORPORATIONS.—
Not later than 2 years after the date on which assistance
is provided to a community development corporation under
part I or II, every 2 years thereafter, the community devel-
opment corporation shall prepare and submit to the Sec-
retary a report under this section. Such report shall in-
clude—
(1) the amount of funds received by the com-
munity development corporation;
141
(2) a summary of the uses of such funds;
(3) the number of jobs created or retained by
the corporation;
(4) the number and type of new businesses
started, including micro-businesses;
(5) the number of jobs created or retained for
individuals identified in section 257(a)(4);
(6) in the case of funds made available under
part I, the source and amount of matching funds;
(7) in the case of revolving loan funds made
available under part II, the amount of funds lever-
aged; and
(8) related human services and facilities pro-
vided as result of assistance provided under this
chapter.
(b) SECRETARY.—Not later than 3 years after the
date on which assistance is first provided under part I or
II, and annually thereafter, the Secretary shall prepare
and submit to the Committee on Labor and Human Re-
sources of the Senate and the Committee on Education
and Labor of the House of Representatives a report con-
taining a summary of the reports received by the Secretary
under subsection (a) for the period in which the report
of the Secretary is submitted.
142
SEC. 277. DEFINITIONS.
As used in this chapter:
(1) 
COMMUNITY
DEVELOPMENT
CORPORA-
TION.—The term ‘‘community development corpora-
tion’’ means a private, nonprofit corporation whose
board of directors is comprised of business, civic and
community leaders, and whose principal purpose in-
cludes the provision of low-income housing or com-
munity economic development projects that primarily
benefit low-income individuals and communities.
(2) LOCAL AND PRIVATE SECTOR CONTRIBU-
TION.—The term ‘‘local and private sector contribu-
tion’’ means the funds available at the local level (by
private financial institutions, State and local govern-
ments) or by any private philanthropic organization
and private, nonprofit organizations that will be
committed and used solely for the purpose of financ-
ing private business enterprises in conjunction with
amounts provided under this chapter.
(3) 
POPULATION-LOSING
COMMUNITY.—The
term ‘‘population-losing community’’ means any
county in which the net population loss is at least
7 percent from April 1, 1980 to April 1, 1990, as
reported by the Bureau of the Census.
(4) PRIVATE
BUSINESS
ENTERPRISE.—The
term ‘‘private business enterprise’’ means any busi-
143
ness enterprise that is engaged in the manufacture
of a product, provision of a service, construction or
development of a facility, or that is involved in some
other commercial, manufacturing or industrial activ-
ity, and that agrees to target job opportunities stem-
ming from investments authorized under this chap-
ter to certain individuals.
(5) TARGET
AREA.—The term ‘‘target area’’
means any area defined in an application for assist-
ance under this chapter that has a population whose
income does not exceed the median for the area
within which the target area is located.
(6) VERY LOW-INCOME COMMUNITY.—The term
‘‘very low-income community’’ means a community
in which the median income of the residents of such
community does not exceed 50 percent of the median
income of the area.
SEC. 278. AUTHORIZATION OF APPROPRIATIONS.
(a) COMMUNITY ECONOMIC PARTNERSHIP INVEST-
MENT FUNDS
AND EMERGING COMMUNITY DEVELOP-
MENT CORPORATIONS.—
(1) IN GENERAL.—There are authorized to be
appropriated 
to 
carry 
out 
parts 
I 
and 
II,
$40,000,000 for fiscal year 1993, $100,000,000 for
144
fiscal year 1994, and $125,000,000 for fiscal year
1995.
(2) EARMARKS.—Of the aggregate amount ap-
propriated under paragraph (1) for each fiscal
year—
(A) 60 percent shall be available to carry
out part I; and
(B) 40 percent shall be available to carry
out part II.
(3) AMOUNTS.—Amounts appropriated under
paragraph (1) shall remain available for expenditure
without fiscal year limitation.
(b) RESEARCH AND DEMONSTRATION.—There are
authorized to be appropriated to carry out part III such
sums as may be necessary for each of the fiscal years 1993
through 1995.
SEC. 279. PROHIBITION.
None of the funds authorized under this chapter shall
be used to finance the construction of housing.
SEC. 280. EFFECTIVE DATE.
This chapter shall take effect as if included in the
Omnibus Budget Reconciliation Act of 1990.
145
CHAPTER 4—MISCELLANEOUS PROGRAMS
SEC. 285. ESTABLISHMENT OF ENTERPRISE CAPITAL AC-
CESS FUND.
(a) SHORT TITLE.—This section may be cited as the
‘‘Enterprise Capital Access Fund Demonstration Pro-
gram’’.
(b) FINDINGS AND PURPOSE.—
(1) FINDINGS.—The Congress finds that—
(A) the Nation’s urban and rural commu-
nities face critical social and economic problems
stemming from lack of economic opportunity
among low-income persons and persons living in
poverty;
(B) the numbers of low-income persons
and persons living in poverty has grown signifi-
cantly over the last decade;
(C) lack of access to credit and other
forms of capital is a significant factor in the
disinvestment and decline of low-income and
minority neighborhoods;
(D) changes in the banking system and fi-
nancial markets have made access to credit in
low-income and distressed communities increas-
ingly more difficult to obtain as decisionmaking
146
on credit has been removed from local commu-
nities;
(E) the restoration and maintenance of
viable local economies will require improved ac-
cess to credit, as well as public and private in-
vestment in economic and community develop-
ment activities, business development, and low-
income housing;
(F) indigenous community-based financial
institutions can play a significant role in identi-
fying and responding to community needs;
(G) the Federal Government needs to de-
velop new models and institutions for facilitat-
ing local revitalization efforts and improving ac-
cess to credit; and
(H) nonprofit financial intermediaries have
proven effective in meeting the credit and other
capital needs in low-income and distressed com-
munities.
(2) PURPOSE.—The purpose of this section is
to establish a demonstration program to promote re-
investment in low-income and chronically distressed
neighborhoods through community-based nonprofit
financial institutions that work cooperatively with
residents and State and local government.
147
(c) DEFINITIONS.—For purposes of this section:
(1) ELIGIBLE INTERMEDIARY.—The term ‘‘eli-
gible intermediary’’ means a nonprofit organization
that—
(A) is organized under Federal, State or
local laws;
(B) has no part of its net earnings inuring
to the benefit of any member, founder, contrib-
utor, or other person;
(C) complies with standards of financial
accountability acceptable to the Secretary;
(D) controls, operates or is affiliated with
an entity that provides credit or investment
capital in a targeted geographic area;
(E) has as its primary mission the revital-
ization of low-income and chronically distressed
neighborhoods or communities; and
(F) maintains, through significant rep-
resentation on its governing board and other-
wise, accountability to community residents.
(2) LOW-INCOME PERSONS.—The term ‘‘low-in-
come persons’’ means persons whose incomes do not
exceed 80 percent of the median for the area.
(3) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Housing and Urban Development.
148
(4) TARGETED GEOGRAPHIC AREA.—The term
‘‘targeted geographic area’’ means a geographically
contiguous area of chronic economic distress as
measured by unemployment, growth lag, the extent
of poverty, per capita income, extent of blight and
disinvestment, fiscal distress, or other indicators
deemed appropriate by the Secretary, that has been
identified by an eligible intermediary as an area to
be served by it.
(d) AUTHORITY.—The Secretary shall carry out, in
accordance with this section, a demonstration program to
provide assistance in the form of capital and technical as-
sistance grants to nonprofit financial intermediaries for
the establishment, maintenance, and expansion of such in-
stitutions, to be utilized to finance business and employ-
ment opportunities, housing opportunities affordable to
low-income persons, and neighborhood revitalization
projects.
(e) APPLICATIONS.—The Secretary shall establish
and implement a competitive process for the solicitation
and 
consideration 
of 
applications 
from 
eligible
intermediaries.
(f) SELECTION CRITERIA.—
(1) IN GENERAL.—Not later than 12 months
after the date of enactment of this section, the Sec-
149
retary shall select eligible intermediaries to partici-
pate in the demonstration program, based on—
(A) 
the 
capacity 
of 
the 
eligible
intermediary to carry out the purposes of this
title;
(B) the financial capacity of the eligible
intermediary based on evaluations provided by a
certified public accountant and criteria to be
determined by the Secretary;
(C) the extent of need in the targeted geo-
graphic 
area 
identified 
by 
the 
eligible
intermediary as the area it serves;
(D) the extent to which the lending serv-
ices of the eligible intermediary are coordinated
with other revitalization activities in the tar-
geted geographic area;
(E) the previous experience and achieve-
ments of the eligible intermediary in the financ-
ing or development of low-income housing, in
development of businesses and other employ-
ment opportunities, or in neighborhood revital-
ization activities;
(F) the extent to which the eligible
intermediary has firm commitments from local
sources to provide matching funds in an
150
amount that is at least equal to the amount re-
quested in the application;
(G) an appropriate geographic distribution
of intermediaries among regions in the United
States;
(H) the extent to which the eligible
intermediary demonstrates a commitment to
serve minority individuals and communities;
and
(K) other criteria deemed appropriate by
the Secretary.
(g) CAPITAL GRANTS.—
(1) IN GENERAL.—The Secretary shall make
capital grants to eligible intermediaries.
(2) USE OF GRANTS.—Capital grants may be
used by eligible intermediaries to increase the capital
available for loans, loan guarantees, interest rate re-
duction activities, and other activities deemed appro-
priate by the Secretary that promote housing afford-
able to low-income persons and economic and com-
munity development activities that benefit low-in-
come persons.
(3) AMOUNT.—The maximum amount of Fed-
eral assistance an eligible intermediary can receive
per fiscal year under this section is $1,000,000.
151
(h) TECHNICAL ASSISTANCE.—The Secretary is au-
thorized to make grants to eligible intermediaries to pro-
vide technical assistance to borrowers.
(i) TRAINING PROGRAM.—The Secretary shall estab-
lish, or contract to establish, an ongoing training program
to assist eligible intermediaries and their staffs in develop-
ing the capacity to carry out the purposes of this section.
(j) REPORT.—The Secretary shall annually prepare
and submit to Congress a report containing a summary
of the activities carried out under this section and the
findings and conclusions drawn from such activities.
(k) DUTIES OF ELIGIBLE INTERMEDIARIES.—An eli-
gible intermediary receiving assistance pursuant to this
section shall—
(1) match any assistance awarded by the Sec-
retary dollar-for-dollar with non-Federal sources of
funds;
(2) ensure that not less than 70 percent of
loans to individual borrowers are to persons whose
incomes are at or below 80 percent of the area me-
dian income and are residents of the targeted geo-
graphic area served; and
(3) ensure that all loans made to nonprofit or
for-profit organizations provide a direct benefit to
152
persons who are residents of the targeted geographic
area served.
(l) OFFICE OF COMMUNITY BANKING.—There is es-
tablished within the Department of Housing and Urban
Development an Office of Community Banking which is
responsible for the implementation of this section.
(m) AUTHORIZATION OF APPROPRIATIONS.—There
are authorized to be appropriated to carry out this section,
$100,000,000 for fiscal year 1993 and $200,000,000 for
fiscal year 1994. Any amounts appropriated pursuant to
this paragraph shall remain available until expended.
SEC. 286. ACCESS TO JOBS/REVERSE COMMUTING DEM-
ONSTRATION PROGRAM.
(a) PURPOSE.—It is the purpose of this section to—
(1) improve employment rates and earnings in
inner-city areas by improving access to job sites for
inner-city residents;
(2) improve the viability of businesses in tax en-
terprise zones as a result of the increased incomes
and purchasing power of zone residents; and
(3) test differing approaches to achieving these
goals and determine their effects.
(b) ESTABLISHMENT OF PROGRAM.—
(1) IN GENERAL.—The Secretary of Labor, in
consultation with the Secretary of Transportation,
153
shall establish a Reverse Commuting Demonstration
Program to test the effects of assisting residents of
poor inner-city areas to commute to job sites in
other areas of the city or surrounding suburbs.
(2) USE OF NON SET-ASIDE FUNDS.—Any ap-
plicant eligible for block grant funding under section
215 of this Act that submits an application that
meets the criteria in subsection (c) shall be approved
by the Secretary of Labor, in consultation with the
Secretary of Transportation, to utilize funds it re-
ceives under this title to carry out a program estab-
lished under this section.
(3) USE OF SET-ASIDE FUNDS.—The funds set-
aside under section 212(d) for the program under
this section shall be used by the Secretary of Labor,
in consultation with the Secretary of Transportation,
to fund not more than six demonstration projects
utilizing the program models described in subsection
(d). Projects shall be selected on a competitive basis
from applications that meet the requirements of sub-
section (c) that are submitted by applicants eligible
for block grant funding under section 215 of this
Act.
(c) APPLICATION AND APPROVAL CRITERIA.—An ap-
plication under this section shall provide information spec-
154
ified by the Secretary of Labor, in consultation with the
Secretary of Transportation, that is sufficient to satisfy
the Secretary that—
(1) the geographic area whose residents would
be served by the program established by the appli-
cant under this section is a low-income area that
consists in whole or substantial part of an urban tax
enterprise zone;
(2) one of the three program models described
in subsection (d) will be used by the applicant;
(3) the data collection procedures that will be
established by the applicant will be sufficient to en-
able the Secretary of Labor, in consultation with the
Secretary of Transportation, to conduct an evalua-
tion in accordance with subsection (e); and
(4) the applicant has the capability to perform
adequately with respect to the program established
and to meet such other criteria as the Secretary of
Labor may prescribe.
(d) 
PROGRAM
MODELS.—Applications 
approved
under this section shall utilize one of the following pro-
gram models:
(1) ADDING TRANSPORTATION SERVICES TO EX-
ISTING
JOB
TRAINING
AND
PLACEMENT
PRO-
GRAMS.—Under this model an applicant shall sup-
155
plement existing training and placement programs
through the establishment of new transportation
services that are designed to—
(A) transport inner-city residents to job lo-
cations (such as van service between the zones
and business parks or major employers, with
the service being provided by a public agency,
a private vendor, or a neighborhood organiza-
tion);
(B) provide transportation counseling and
assistance (such as the creation of car pools
and provision of education on public transit
routes); or
(C) provide a direct subsidy of public tran-
sit fares or private automobile expenses.
(2) IMPROVING PUBLIC TRANSIT SYSTEMS TO
FACILITATE
ACCESS
TO
JOBS/REVERSE
COMMUT-
ING.—Under this model an applicant may—
(A) work with the relevant transit operator
or agency to modify public transit routes and
schedules to increase the accessibility of resi-
dents of inner-city areas to job locations (such
as through the provision of express bus service
to business parks at times coinciding with labor
shifts or the provision of new connecting serv-