I
103D CONGRESS
1ST SESSION
H. R. 1003
To amend title I of the Housing and Community Development Act of 1974
to establish an economic development block grant program.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 18, 1993
Mr. SHAYS (for himself and Mr. MFUME) introduced the following bill; which
was referred to the Committee on Banking, Finance and Urban Affairs
A BILL
To amend title I of the Housing and Community Develop-
ment Act of 1974 to establish an economic development
block grant program.
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 ‘‘Targeted Economic
Development Block Grant Program Act of 1993’’.
SEC. 2. ESTABLISHMENT OF TARGETED ECONOMIC DEVEL-
OPMENT BLOCK GRANT PROGRAM.
Title I of the Housing and Community Development
Act of 1974 (42 U.S.C. 5301 et seq.) is amended by add-
ing at the end the following new section:
‘‘SEC. 122. TARGETED ECONOMIC DEVELOPMENT BLOCK
GRANT PROGRAM.
‘‘(a) ALLOCATION.—
‘‘(1) IN
GENERAL.—From amounts appro-
priated under subsection (g), the Secretary of Hous-
ing and Urban Development shall allocate to each
qualified city for a fiscal year the amount deter-
mined in accordance with the following formula:
A +
X
,
U
‘‘(2) DETERMINATION OF ELIGIBILITY.—A city
is a qualified city if such city—
‘‘(A) is a metropolitan city;
‘‘(B) is, for any fiscal year, eligible to re-
ceive an allocation of funds under section
106(a)(3); and
‘‘(C) has a need adjusted per capita in-
come factor (as determined under paragraph
(7)) is equal to or less than 0.55.
‘‘(3) DETERMINATION OF TERM ‘A’.—For pur-
poses of paragraph (1), the term ‘A’ means the
amount appropriated under subsection (g) for the
fiscal year involved.
‘‘(4) DETERMINATION OF TERM ‘U’.—For pur-
poses of paragraph (1), the term ‘U’ means the sum
of the respective terms ‘X’ determined for the cities
under paragraph (5).
‘‘(5) DETERMINATION OF TERM ‘X’.—For pur-
poses of paragraph (1), the term ‘X’ means the
product of—
‘‘(A) the total population of the city in-
volved, as determined by the Secretary using
the most recent data that is available from the
Secretary of Commerce pursuant to the decen-
nial census and pursuant to reasonable esti-
mates by such Secretary of changes occurring
in the data in the ensuing period;
‘‘(B) the need index of such city, as deter-
mined under paragraph (6); and
‘‘(C) the need adjusted per capita income
factor of such city, as determined under para-
graph (7).
‘‘(6) DETERMINATION OF NEED INDEX.—
‘‘(A) For purposes of paragraph (5)(B),
the term ‘need index’ means the number equal
to the quotient of—
‘‘(i) the term ‘N’, as determined
under subparagraph (B); divided by
‘‘(ii) the term ‘P’, as determined
under subparagraph (C).
‘‘(B) For purposes of subparagraph (A)(i),
the term ‘N’ means the percentage constituted
by the ratio of—
‘‘(i) the amount of funds allocated to
the city in the current fiscal year under
section 106(a)(3); to
‘‘(ii) the sum of the amount of funds
received by all eligible cities in the current
fiscal year under section 106(a)(3).
‘‘(C) For purposes of subparagraph (A)(ii),
the term ‘P’ means the percentage constituted
by the ratio of—
‘‘(i) the amount equal to the total
population of the city, as determined by
the Secretary using the most recent data
that is available from the Secretary of
Commerce pursuant to the decennial cen-
sus and pursuant to reasonable estimates
by such Secretary of changes occurring in
the data in the ensuing period; to
‘‘(ii) the amount equal to the total
population of all eligible cities in the cur-
rent fiscal year.
‘‘(D) For purposes of this paragraph, the
term ‘eligible cities’ means those cities which
meet the requirements of subparagraphs (A)
and (B) of paragraph (2).
‘‘(7) DETERMINATION OF NEED ADJUSTED PER
CAPITA INCOME FACTOR.—
‘‘(A) For purposes of paragraphs (2)(C)
and (5)(C) (and subject to subparagraph (D)),
the term ‘need adjusted per capita income fac-
tor’ means the amount equal to the percentage
determined for the city in accordance with the
following formula:
1¥.15
+
I
,
Q
‘‘(B) For purposes of subparagraph (A),
the term ‘I’ means the per capita income of the
city for the most recent year for which data is
available, as determined by the Secretary of
Commerce.
‘‘(C) For purposes of subparagraph (A),
the term ‘Q’ means the product of—
‘‘(i) the need index of such city, as de-
termined under paragraph (6); and
‘‘(ii) the amount equal to the per cap-
ita income of the United States for the
most recent year for which data is avail-
able, as determined by the Secretary of
Commerce.
‘‘(D) In the case of a city for which the
quotient of the term ‘I’ (as determined under
subparagraph (B)) divided by the term ‘Q’ (as
determined under subparagraph (C)) is less
than 0.2, then such quotient shall be deemed to
be equal to 0.2 for such city for purposes of the
formula under subparagraph (A).
‘‘(b) APPLICATION.—
‘‘(1) IN
GENERAL.—The Secretary may not
make a grant under subsection (a) in a fiscal year
to a city unless the city submits to the Secretary an
application in such form and containing such infor-
mation as the Secretary may require, including the
certifications required under paragraph (2).
‘‘(2) CERTIFICATIONS.—Each application shall
include certifications by the chief executive official of
the city and the Governor of the State in which the
city is located that—
‘‘(A) the city will use amounts from a
grant received under subsection (a) only for the
purpose of carrying out the eligible activities
under subsection (e) and will not use amounts
from such grant for any of the prohibited ac-
tivities under subsection (f);
‘‘(B) the city will provide matching
amounts in accordance with the formula in sub-
section (c) for the purpose of carrying out such
eligible activities;
‘‘(C) the State in which the city is located
will provide matching amounts to the city in ac-
cordance with the formula in subsection (d) for
the purpose of carrying out such eligible activi-
ties;
‘‘(D) the city will maintain all amounts re-
ceived from a grant under subsection (a) and
all matching amounts described in subpara-
graphs (B) and (C) in an account separate
from the account in which the general funds of
the city are maintained;
‘‘(E) both the city and the State will main-
tain their aggregate expenditures from all other
sources for such eligible activities at or above
the average level of such expenditures in the 2
fiscal years preceding the date on which the city
receives amounts from a grant under subsection
(a);
‘‘(F) the city will reserve not less than 5
percent of amounts received from a grant under
subsection (a) to enter into contracts with mi-
nority-owned businesses for the purpose of car-
rying out such eligible activities; and
‘‘(G) not later than 180 days after the
date on which the city receives amounts from a
grant under subsection (a), the city will submit
to the Secretary a report containing a descrip-
tion of the use of amounts received from a
grant under subsection (a) and an evaluation of
the effectiveness of the grant program in the
city, including the extent to which the taxable
value of the local property tax base and related
revenue sources allocated to the city’s general
fund have been increased.
‘‘(3) NOTIFICATION OF DISAPPROVAL.—
‘‘(A) IN
GENERAL.—The Secretary shall
provide notification to a city of a proposed dis-
approval of such city’s application not later
than 20 days after the date on which the Sec-
retary receives such application under para-
graph (1).
‘‘(B) APPEAL.—A city may appeal the pro-
posed disapproval of an application under sub-
paragraph (A). Such appeal, including review
by the Secretary, shall be completed not later
than 45 days after the date on which the city
provides notice to the Secretary of such appeal.
‘‘(c) CITY MATCHING FUNDS.—
‘‘(1) IN GENERAL.—Subject to paragraph (3),
each city receiving amounts from a grant under sub-
section (a) shall provide amounts for each dollar al-
located under such subsection at a rate in accord-
ance with the following formula:
.15 )
I
*
Q
————————
1¥.15 )
I
*
Q
‘‘(2) DETERMINATION OF TERMS ‘I’ AND ‘Q’.—
For purposes of paragraph (1) (and subject to sub-
section (a)(7)(D)), the quotient of the term ‘I’ di-
vided by the term ‘Q’ is equal to the term ‘I’ deter-
mined under subsection (a)(7)(B) divided by the
term ‘Q’ determined under subsection (a)(7)(C).
‘‘(3) SPECIAL RULE.—
‘‘(A) In the case of a city for which the
rate determined under paragraph (1) is less
than 5 cents per dollar of amounts allocated
under subsection (a), then such rate shall be
deemed to be equal to 5 cents per dollar.