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‘‘(7) Training.
‘‘(8) Relocation of individuals and businesses.
‘‘(9) Other assistance which demonstrably fur-
thers the economic adjustment objectives of this
title.
‘‘(d) DIRECT EXPENDITURE OR REDISTRIBUTION BY
RECIPIENT.—Amounts from grants under subsection (a)
may be used in direct expenditures by the eligible recipient
or through redistribution by the eligible recipient to public
and private entities in grants, loans, loan guarantees, pay-
ments to reduce interest on loan guarantees, or other ap-
propriate assistance, but no grant shall be made by an
eligible recipient to a private profit-making entity.
‘‘(e) COORDINATION.—The Administrator to the ex-
tent practicable shall coordinate the activities relating to
the requirements for investment strategies and making
grants and loans under this title with other Federal pro-
grams, States, economic development districts, and other
appropriate planning and development organizations.
‘‘(f) BASE CLOSINGS AND REALIGNMENTS.—
‘‘(1) LOCATION OF PROJECTS.—In any case in
which the Administrator determines a need for as-
sistance under subsection (a) due to the closure or
realignment of a military installation, the Adminis-
trator may make such assistance available for
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projects to be carried out on the military installation
and for projects to be carried out in communities ad-
versely affected by the closure or realignment.
‘‘(2) INTEREST IN PROPERTY.—Notwithstand-
ing any other provision of law, the Administrator
may provide to an eligible recipient any assistance
available under this Act for a project to be carried
out on a military installation that is closed or sched-
uled for closure or realignment without requiring
that the eligible recipient have title to the property
or a leasehold interest in the property for any speci-
fied term.
‘‘SEC. 303. ANNUAL REPORTS BY RECIPIENT.
‘‘Each eligible recipient which receives assistance
under this title from the Administrator shall annually dur-
ing the period such assistance continue to make a full and
complete report to the Administrator, in such manner as
the Administrator shall prescribe, and such report shall
contain an evaluation of the effectiveness of the economic
assistance provided under this title in meeting the need
it was designed to alleviate and the purposes of this title.
‘‘SEC. 304. SALE OF FINANCIAL INSTRUMENTS IN REVOLV-
ING LOAN FUNDS.
‘‘Any loan, loan guarantee, equity, or other financial
instrument in the portfolio of a revolving loan fund, in-
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cluding any financial instrument made available using
amounts from a grant made before the effective date speci-
fied in section 802, may be sold, encumbered, or pledged
at the discretion of the grantee of the Fund, to a third
party provided that the net proceeds of the transaction—
‘‘(1) shall be deposited into the Fund and may
only be used for activities which are consistent with
the purposes of this title; and
‘‘(2) shall be subject to the financial manage-
ment, accounting, reporting, and auditing standards
which were originally applicable to the grant.
‘‘SEC. 305. TREATMENT OF REVOLVING LOAN FUNDS.
‘‘(a) IN GENERAL.—Amounts from grants made
under this title which are used by an eligible recipient to
establish a revolving loan fund shall not be treated, except
as provided by subsection (b), as amounts derived from
Federal funds for the purposes of any Federal law after
such amounts are loaned from the fund to a borrower and
repaid to the fund.
‘‘(b) EXCEPTIONS.—Amounts described in subsection
(a) which are loaned from a revolving loan fund to a bor-
rower and repaid to the fund—
‘‘(1) may only be used for activities which are
consistent with the purposes of this title; and
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‘‘(2) shall be subject to the financial manage-
ment, accounting, reporting, and auditing standards
which were originally applicable to the grant.
‘‘(c) REGULATIONS.—Not later than 30 days after
the effective date specified in section 802, the Adminis-
trator shall issue regulations to carry out subsection (a).
‘‘(d) PUBLIC REVIEW AND COMMENT.—Before issu-
ing any final guidelines or administrative manuals govern-
ing the operation of revolving loan funds established using
amounts from grants under this title, the Administrator
shall provide reasonable opportunity for public review of
and comment on such guidelines and administrative
manuals.
‘‘(e) APPLICABILITY
TO PAST GRANTS.—The re-
quirements of this section applicable to amounts from
grants made under this title shall also apply to amounts
from grants made, before the effective date specified in
section 802, under title I of this Act, as in effect on the
day before such effective date.
‘‘TITLE IV—TECHNICAL ASSIST-
ANCE, RESEARCH, AND IN-
FORMATION
‘‘SEC. 401. TECHNICAL ASSISTANCE.
‘‘(a) IN GENERAL.—In carrying out its duties under
this Act, the Administrator may provide technical assist-
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ance which would be useful in alleviating or preventing
conditions 
of 
excessive 
unemployment 
or
underemployment to areas which the Administrator finds
have substantial need for such assistance. Such assistance
shall include project planning and feasibility studies, man-
agement and operational assistance, establishment of busi-
ness outreach centers, and studies evaluating the needs
of, and development potentialities for, economic growth of
such areas.
‘‘(b) PROCEDURES AND TERMS.—
‘‘(1) MANNER OF PROVIDING ASSISTANCE.—As-
sistance may be provided by the Administrator
through—
‘‘(A) members of the Administrator’s staff;
‘‘(B) the payment of funds authorized for
this section to departments or agencies of the
Federal Government;
‘‘(C) the employment of private individ-
uals, partnerships, firms, corporations, or suit-
able institutions under contracts entered into
for such purposes; or
‘‘(D) grants-in-aid to appropriate public or
private nonprofit State, area, district, or local
organizations.
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‘‘(2) REPAYMENT TERMS.—The Administrator,
in the Administrator’s discretion, may require the
repayment of assistance provided under this sub-
section and prescribe the terms and conditions of
such repayment.
‘‘(c) GRANTS
COVERING
ADMINISTRATIVE
EX-
PENSES.—
‘‘(1) IN
GENERAL.—The Administrator may
make grants to defray not to exceed 50 percent of
the administrative expenses of organizations which
the Administrator determines to be qualified to re-
ceive grants-in-aid under subsections (a) and (b); ex-
cept that in the case of a grant under this sub-
section to an Indian tribe, the Administrator is au-
thorized to defray up to 100 percent of such ex-
penses.
‘‘(2) 
DETERMINATION
OF
NON-FEDERAL
SHARE.—In determining the amount of the non-Fed-
eral share of such costs or expenses, the Adminis-
trator shall give due consideration to all contribu-
tions both in cash and in kind, fairly evaluated, in-
cluding contributions of space, equipment, and serv-
ices.
‘‘(3) 
USE
OF
GRANTS
WITH
PLANNING
GRANTS.—Where practicable, grants-in-aid author-
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ized under this subsection shall be used in conjunc-
tion with other available planning grants to assure
adequate and effective planning and economical use
of funds.
‘‘(d) AVAILABILITY OF TECHNICAL INFORMATION;
FEDERAL PROCUREMENT.—The Administrator shall aid
areas described in section 502(a) and other areas by fur-
nishing to interested individuals, communities, industries,
and enterprises within such areas any assistance, technical
information, market research, or other forms of assist-
ance, information, or advice which would be useful in alle-
viating or preventing conditions of excessive unemploy-
ment or underemployment within such areas. The Admin-
istrator may furnish the procurement divisions of the var-
ious departments, agencies, and other instrumentalities of
the Federal Government with a list containing the names
and addresses of business firms which are located in areas
described in section 502(a) and which are desirous of ob-
taining Government contracts for the furnishing of sup-
plies or services, and designating the supplies and services
such firms are engaged in providing.
‘‘SEC. 402. ECONOMIC DEVELOPMENT PLANNING.
‘‘(a) DIRECT GRANTS.—
‘‘(1) IN
GENERAL.—The Administrator may
make, upon application of any State, or city, or
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other political subdivision of a State, or sub-State
planning and development organization (including an
area described in section 502(a) or an economic de-
velopment district), direct grants to such State, city,
or other political subdivision, or organization to pay
up to 50 percent of the cost for economic develop-
ment planning.
‘‘(2) PLANNING
PROJECTS
SPECIFICALLY
IN-
CLUDED.—The planning for cities, other political
subdivisions, and sub-State planning and develop-
ment organizations (including areas described in sec-
tion 502(a) and economic development districts) as-
sisted under this section shall include systematic ef-
forts to reduce unemployment and increase incomes.
‘‘(3) PLANNING PROCESS.—The planning shall
be a continuous process involving public officials and
private citizens in analyzing local economies, defin-
ing development goals, determining project opportu-
nities, and formulating and implementing a develop-
ment program.
‘‘(4) COORDINATION
OF
ASSISTANCE
UNDER
SECTION 401(c).—The assistance available under
this section may be provided in addition to assist-
ance available under section 401(c) but shall not
supplant such assistance.
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‘‘(b) COMPLIANCE WITH REVIEW PROCEDURE.—The
planning assistance authorized under this title shall be
used in conjunction with any other available Federal plan-
ning assistance to assure adequate and effective planning
and economical use of funds.
‘‘TITLE V—ELIGIBILITY AND
INVESTMENT STRATEGIES
‘‘PART A—ELIGIBILITY
‘‘SEC. 501. ELIGIBLE RECIPIENT DEFINED.
‘‘In this Act, the term ‘eligible recipient’ means an
area described in section 502(a), an economic development
district designated under section 510, an Indian tribe, a
State, a city or other political subdivision of a State, or
a consortium of such political subdivisions, or a public or
private nonprofit organization or association acting in co-
operation with officials of such political subdivisions.
‘‘SEC. 502. AREA ELIGIBILITY.
‘‘(a) CERTIFICATION.—In order to be eligible for as-
sistance under title II, an applicant seeking assistance to
undertake a project in an area shall certify, as part of
an application for such assistance, that the area on the
date of submission of such application meets 1 or more
of the following criteria:
‘‘(1) The area has a per capita income of 80
percent or less of the national average.
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‘‘(2) The area has an unemployment rate 1 per-
cent above the national average percentage for the
most recent 24-month period for which statistics are
available.
‘‘(3) The area has experienced or is about to
experience a sudden economic dislocation resulting
in job loss that is significant both in terms of the
number of jobs eliminated and the effect upon the
employment rate of the area.
‘‘(4) The area is a community or neighborhood
(defined without regard to political or other subdivi-
sions or boundaries) which the Administrator deter-
mines has one or more of the following conditions:
‘‘(A) A large concentration of low-income
persons.
‘‘(B) Rural areas having substantial out-
migration.
‘‘(C) Substantial unemployment.
‘‘(b) DOCUMENTATION.—A certification made under
subsection (a) shall be supported by Federal data, when
available, and in other cases by data available through the
State government. Such documentation shall be accepted
by the Administrator unless it is determined to be inac-
curate. The most recent statistics available shall be used.
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‘‘(c) PRIOR DESIGNATIONS.—Any designation of a
redevelopment area made before the effective date speci-
fied in section 802 shall not be effective after such effec-
tive date.
‘‘SEC. 503. INVESTMENT STRATEGY.
‘‘The Administrator may provide assistance under ti-
tles II and III to an applicant for a project only if the
applicant submits to the Administrator, as part of an ap-
plication for such assistance, and the Administrator ap-
proves an investment strategy which—
‘‘(1) identifies the economic development prob-
lems to be addressed using such assistance;
‘‘(2) identifies past, present, and projected fu-
ture economic development investments in the area
receiving such assistance and public and private par-
ticipants and sources of funding for such invest-
ments;
‘‘(3) sets forth a strategy for addressing the
economic problems identified pursuant to paragraph
(1) and describes how the strategy will solve such
problems;
‘‘(4) provides a description of the project nec-
essary to implement the strategy, estimates of costs,
and timetables; and
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‘‘(5) provides a summary of public and private
resources expected to be available for the project.
‘‘SEC. 504. APPROVAL OF PROJECTS.
‘‘Only applications for grants or other assistance
under this Act for specific projects shall be approved which
are certified by the State representing such applicant and
determined by the Administrator—
‘‘(1) to be included in a State investment strat-
egy;
‘‘(2) to have adequate assurance that the
project will be properly administered, operated, and
maintained; and
‘‘(3) to otherwise meet the requirements for as-
sistance under this Act.
‘‘PART B—ECONOMIC DEVELOPMENT DISTRICTS
‘‘SEC. 510. DESIGNATION OF ECONOMIC DEVELOPMENT
DISTRICTS AND ECONOMIC DEVELOPMENT
CENTERS.
‘‘(a) IN GENERAL.—In order that economic develop-
ment projects of broader geographic significance may be
planned and carried out, the Administrator may—
‘‘(1) designate appropriate ‘economic develop-
ment districts’ within the United States with the
concurrence of the States in which such districts will
be wholly or partially located, if—