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 Develop-
ment Block Grant Renewal Act’’.
SEC. 2. LOW- AND MODERATE-INCOME TARGETING RE-
QUIREMENT.
(a) TARGETING ASSISTANCE TO LOW-INCOME FAMI-
LIES.—
(1) IN GENERAL.—Section 101(c) of the Hous-
ing and Community Development Act of 1974 (42
U.S.C. 5301(c)) is amended—
(A) by striking ‘‘not less than 70 percent’’;
(B) by inserting ‘‘80 percent’’ after ‘‘sec-
tion 108,’’; and
(C) by striking ‘‘and the Federal assist-
ance’’ and inserting the following: ‘‘and not less
than 40 percent of such aggregate assistance
and funds shall be used for the support of ac-
tivities that directly benefit persons of low in-
come. The Federal assistance’’.
(2) CONFORMING AMENDMENTS.—The Housing
and Community Development Act of 1974 is
amended—
(A) in section 104 (42 U.S.C. 5304)—
(i) in subsection (a)(2)(A), by insert-
ing ‘‘and persons of low income’’ after
‘‘moderate income’’;
(ii) in subsection (b)(3)—
(I) in clause (A), by striking ‘‘70
percent of such funds are used for ac-
tivities that benefit such persons dur-
ing such period’’ and inserting ‘‘80
percent of such funds are used for
support of activities that benefit per-
sons of low and moderate income dur-
ing such period, and 40 percent of
such funds are used for support of ac-
tivities that benefit persons of low in-
come during such period’’; and
(II) in clause (B), by inserting
‘‘or persons of low income’’ after
‘‘moderate income’’; and
(iii) in the third sentence of sub-
section (e), by inserting ‘‘and persons of
low income’’ before the period at the end;
and
(B) in section 106(d)(2)(D) (42 U.S.C.
5306(d)(2)(D)), by inserting ‘‘and the needs of
persons of low income’’ before the last comma.
(b) TREATMENT
OF DOWNTOWN AREAS.—Section
105(c)(2)(A) of the Housing and Community Develop-
ment Act of 1974 (42 U.S.C. 5305(c)(2)(A)), as amended
by the preceding provisions of this Act, is further amended
by adding at the end the following new clause:
‘‘(iv) Notwithstanding any other provision of this sub-
paragraph, an activity that is designed to serve an area
generally shall not be considered to principally benefit per-
sons of low or moderate income, or to principally benefit
persons of low income, if such activity serves an area that
is not primarily residential in character.’’.
(c) ENSURING DIRECT BENEFIT.—Section 105(c) of
the Housing and Community Development Act of 1974
(42 U.S.C. 5305(c)) is amended by adding at the end the
following new paragraph:
‘‘(5) In determining whether an assisted activity ben-
efits persons of low and moderate income or persons of
low income, for purposes of compliance with the require-
ments of section 101(c) and certification of such compli-
ance in accordance with section 104(b)(3), the grantee
shall consider the full range of direct effects of the assisted
activity.’’.
SEC. 3. PROPORTIONAL TREATMENT OF BENEFIT FOR
LOW- AND MODERATE-INCOME FAMILIES.
(a) DEVELOPMENT AND ECONOMIC DEVELOPMENT
ACTIVITIES.—Section 105(c)(1) of the Housing and Com-
munity Development Act of 1974 (42 U.S.C. 5305(c)(1))
is amended—
(1) in the matter preceding subparagraph (A),
by inserting ‘‘or persons of low income’’ before the
comma;
(2) in subparagraph (A), by inserting ‘‘or of low
income, as applicable,’’ after ‘‘moderate income’’;
and
(3) in subparagraphs (B) and (C), by inserting
‘‘or of low income, as applicable’’ after ‘‘moderate
income’’ each place such term appears.
(b) 
AREA
BENEFIT
ACTIVITIES.—Section
105(c)(2)(A) of the Housing and Community Develop-
ment Act of 1974 (42 U.S.C. 5305(c)(2)(A)) is
amended—
(1) by redesignating clauses (i), (ii), and (iii) as
subclauses (I), (II), and (III), respectively;
(2) by inserting ‘‘(i)’’ after ‘‘(2)(A)’’;
(3) by inserting ‘‘(but only to the extent pro-
vided in clause (ii)) only’’ after ‘‘principally benefit
persons of low and moderate income’’; and
(4) by adding at the end the following new
clause:
‘‘(ii) In the case of any assisted activity that is de-
signed to serve an area generally and that, pursuant to
clause (i), is considered to principally benefit persons of
low and moderate income or persons of low income,
amounts provided under this title and used for such activ-
ity shall be considered, for purposes of compliance with
the requirements of section 101(c), to support an activity
that benefits low and moderate income persons or persons
of low income, as applicable, in the same proportion as
the proportion of the population of such area that is com-
prised of persons of low and moderate income or persons
of low income, as applicable.’’.
(c) HOUSING ACTIVITIES.—Section 105(c)(3) of the
Housing and Community Development Act of 1974 (42
U.S.C. 5305(c)(3)) is amended—
(1) by striking ‘‘or rehabilitation’’ and inserting
‘‘, rehabilitation, or new construction’’; and
(2) by striking ‘‘only to the extent’’ and all that
follows and inserting the following: ‘‘or persons of
low income, as applicable, for purposes of compliance
with the requirements of section 101(c), in the
amount determined by multiplying (A) the amount
of funds provided under this title that are used for
such activity, by (B) the percentage of the units in
such housing that, upon completion, will be occupied
by such persons.’’.
(d) JOB CREATION ACTIVITIES.—Section 105(c) of
the Housing and Community Development Act of 1974
(42 U.S.C. 5305(c)) is amended by striking paragraph (4)
and inserting the following new paragraph:
‘‘(4) Any assisted activity described in paragraph
(14) or (17) of subsection (a) that is identified as prin-
cipally benefiting persons of low or moderate income or
persons of low income, by reason of compliance with para-
graph (1)(C) of this subsection, shall be considered to ben-
efit such persons, for purposes of compliance with the re-
quirements of section 101(c), in the amount determined
by multiplying (A) the amount of funds provided under
this title that are used for such activity, by (B) the per-
centage of employees involved in the activity that are per-
sons of low and moderate income or persons of low income,
as applicable.’’.
SEC. 4. PUBLIC PARTICIPATION.
Section 104(a) of the Housing and Community De-
velopment Act of 1974 (42 U.S.C. 5304(a)) is amended
by adding at the end the following new paragraph:
‘‘(4) For purposes of this subsection, the term ‘public
hearing’ means a hearing that is subject to, and held in
accordance with, any State and local laws regarding re-
quirements for public hearings of the jurisdiction that is
the grantee.’’.
SEC. 5. PUBLIC MONITORING.
Section 105(a) of the Housing and Community De-
velopment Act of 1974 (42 U.S.C. 5305(a)) is amended—
(1) in paragraph (22), by striking ‘‘and’’ at the
end;
(2) in paragraph (23), by striking the period at
the end and inserting a semicolon; and
(3) by inserting after paragraph (23) the fol-
lowing new paragraph:
‘‘(24) provision of assistance to nonprofit orga-
nizations representing low- and moderate-income
persons for—
‘‘(A) monitoring the use, by recipients, of
funds provided under this title; or
‘‘(B) promoting or providing for public
participation required under paragraphs (1)
through (3) of section 104(a);
except that assistance under this paragraph shall
not be considered a planning activity under para-
graph (12) of this subsection, an administrative cost
under paragraph (13), or a public service under
paragraph (8); and’’.
SEC. 6. APPLICABILITY.
The amendments made by this Act shall apply with
respect to fiscal year 2002 and all fiscal years thereafter
and to amounts appropriated for such fiscal years for com-
munity development block grants under title I of the
Housing and Community Development Act of 1974 (42
U.S.C. 5301 et seq.) .
Æ