(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; 
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(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 Act 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 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; 
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(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. 3. 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). 
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(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 
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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 
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