‘‘(9) in addition, cooperation between the de-
partments and agencies referred to in paragraph (8)
and private parties is necessary to accomplish the
objective referred to in paragraph (8); and
‘‘(10) there is a need for a program to dem-
onstrate the public purposes and benefits of the re-
development or reuse of abandoned sites.
‘‘SEC. 903. DEFINITIONS.
‘‘As used in this title:
‘‘(1) ABANDONED SITE.—The term ‘abandoned
site’ means a facility or a combination of geographi-
cally or economically related facilities within the
same unit or immediately contiguous units of gen-
eral local government—
‘‘(A) that is no longer operating or is so
substantially underutilized as to provide only
marginal employment opportunities;
‘‘(B) that is located within a community
that suffers from economic and social distress
measured by factors referred to in section
907(a)(4);
‘‘(C) that has one or more conditions, con-
straints, or characteristics (other than only
being a type of facility with respect to which
market supply exceeds demand) that are det-
rimental to the public health, safety, or welfare
and, in the absence of the assistance under this
title, prevent or materially discourage the timely
redevelopment or reuse of a facility or real
property immediately adjacent to the facility for
a use or uses that include the provision of em-
ployment opportunities in accordance with ap-
plicable community development strategies; and
‘‘(D) with respect to which a person re-
ferred to in section 910(a) is unable to fund or
finance the full amount of the cost of a reuse
action.
‘‘(2) FACILITY.—The term ‘facility’ means an
improved or previously improved site or area, or a
surface or subsurface improvement to a site or area,
including a building, structure, installation, fixture,
or equipment on or within the site, that has been
used primarily for an industrial or commercial use.
‘‘(3) GOVERNOR.—The term ‘Governor’ means
the Governor of a State, or the Governor’s designee.
‘‘(4) LOCAL COMMUNITY DEVELOPMENT ORGA-
NIZATION.—The term ‘local community development
organization’ means a nonprofit organization (as de-
fined in paragraph (7)) that—
‘‘(A) has a history of serving the needs of
residents of the local community affected by an
abandoned site;
‘‘(B) maintains accountability to persons
of low-income in a local community through sig-
nificant representation on the governing board
of the organization, and such other means as
are appropriate; and
‘‘(C) has the institutional and administra-
tive capacity for carrying out activities assisted
under this title (as determined by the Sec-
retary).
‘‘(5) LOCAL GRANTEE.—The term ‘local grant-
ee’ means a local community development organiza-
tion or unit of general local government.
‘‘(6) PERSONS
OF
LOW
INCOME.—The term
‘persons of low income’ has the meaning provided
the term under section 102(20).
‘‘(7) NONPROFIT
ORGANIZATION.—The term
‘nonprofit organization’ means any private, nonprofit
organization (including a State or locally chartered,
nonprofit organization)—
‘‘(A) that is organized under State or local
laws;
‘‘(B) with respect to which no portion of
the net earnings inure to the benefit of a mem-
ber, founder, contributor, or individual associ-
ated with the organization;
‘‘(C) that complies with standards of fi-
nancial accountability that the Secretary deter-
mines to be acceptable; and
‘‘(D) that carries out activities related to
the retention or expansion of employment op-
portunities for, and improvement of economic
and social conditions of, persons of low income.
‘‘(8) REUSE ACTION.—The term ‘reuse action’
means an action that makes such physical changes
in, or improvements or additions to, an abandoned
site so as to enable the timely redevelopment or
reuse of the site or real property immediately adja-
cent to the site. Such term shall include the clear-
ance, demolition, or rehabilitation of the site. Such
term shall not include the construction of new build-
ings on the site.
‘‘(9) SECRETARY.—The term ‘Secretary’ means
the Secretary of Housing and Urban Development.
‘‘(10) STATE.—The term ‘State’ has the mean-
ing provided the term under section 102(a)(2).
‘‘(11) UNIT
OF
GENERAL
LOCAL
GOVERN-
MENT.—The term ‘unit of general local government’
has the meaning provided the term in the first sen-
tence of section 102(a)(1).
‘‘SEC. 904. DEMONSTRATION PROGRAM.
‘‘(a) IN GENERAL.—The Secretary shall select appro-
priate States in which to establish and carry out either—
‘‘(1) a program to provide grants to States to
establish a State program to provide grants to local
grantees; or
‘‘(2) a direct grant program to provide grants
to local grantees,
for the purpose of carrying out the demonstrations de-
scribed in subsection (b).
‘‘(b) PURPOSE.—The purpose of the programs au-
thorized by subsection (a) is to demonstrate—
‘‘(1) the economic feasibility of redevelopment
or reuse of abandoned sites;
‘‘(2) the employment benefits, economic bene-
fits, social benefits, and such other benefits to dis-
tressed communities that may occur as a result of
focusing financial resources and cooperative action
on the redevelopment or reuse of abandoned sites;
‘‘(3) the beneficial impacts on patterns of com-
munity development and use of public resources of
redevelopment or reuse of abandoned sites; and
‘‘(4) the feasibility of timely, cooperative ac-
tion—
‘‘(A) among Federal agencies and depart-
ments and agencies of States and political sub-
divisions of States that have jurisdiction over
the redevelopment or reuse of abandoned sites;
and
‘‘(B) between the agencies and depart-
ments referred to in subparagraph (A) and pri-
vate parties.
‘‘(c) ALLOCATION OF FUNDS.—The Secretary shall
allocate funds made available pursuant to this title among
the States or to local grantees. In allocating the funds,
the Secretary shall take into account—
‘‘(1) the relative commitment of a State and
local grantees to achieving successfully the dem-
onstrations described in subsection (b) measured by
factors that include that referred to in section
907(a)(7);
‘‘(2) the relative number of abandoned sites in
the State;
‘‘(3) the need to allocate funds in amounts that
will contribute to achieving successfully the dem-
onstrations described in subsection (b); and
‘‘(4) the desirability of carrying out a variety of
demonstration projects with respect to the location,
characteristics, and issues addressed by the projects,
and the types of participants associated with the
projects.
‘‘(d) SCOPE OF PROGRAM.—
‘‘(1) IN GENERAL.—In carrying out the dem-
onstration program established under subsection (a),
the Secretary may award a grant to a State pursu-
ant to section 905 or to a local grantee that submits
an approved application to the Secretary pursuant to
paragraph (2).
‘‘(2) GRANT APPLICATION.—An application for
a grant under this section shall include a proposal
for a reuse action for the redevelopment or reuse of
an abandoned site, and shall be in such form as the
Secretary determines to be appropriate.
‘‘(3) COMPETITIVE SELECTION PROCEDURE.—
Each grant made under this title by the Secretary
or a Governor to a State or local grantee shall be
made on the basis of an open and competitive selec-
tion procedure approved by the Secretary. In making
a grant to a local grantee, the Secretary shall con-
duct a selection procedure on a State-by-State basis.
‘‘(4) SELECTION OF SITES BY GOVERNOR.—If a
State establishes a State demonstration program
that is approved in accordance with section 905, the
Governor shall select the abandoned sites to receive
assistance under the grant program. In carrying out
the demonstration program, the Governor may act
through appropriate officials of the State.
‘‘(5) GRANT AWARDS.—Except as provided in
paragraph (6), the aggregate amount of grants
awarded for reuse actions at an abandoned site shall
not exceed an amount equal to 75 percent of the
total eligible costs of carrying out a reuse action at
the abandoned site. Each local grantee that receives
a grant award under this title shall be required to
pay a non-Federal share in an amount equal to 25
percent of the total eligible costs of carrying out the
reuse action at the abandoned site that is the sub-
ject of the grant award.
‘‘(6) EXCEPTION.—Subject to sections 906 and
909, the Secretary (or in the case of a State dem-
onstration program under section 905, the Gov-
ernor) may fund up to 100 percent of the total eligi-
ble costs of carrying out a reuse action at an aban-
doned site if the Secretary (or the Governor) obtains
satisfactory assurances from the grant recipient
that—
‘‘(A) a transfer of the abandoned site will
occur as part of the redevelopment or reuse of
the site;
‘‘(B) the net proceeds realized from the
transfer of the site will reasonably approximate
at least 25 percent of the eligible costs of carry-
ing out a reuse action at the site; and
‘‘(C) an amount reasonably approximating
25 percent of the eligible costs referred to in
subparagraph (B) from the net proceeds re-
ferred to in subparagraph (B), will be paid
promptly upon receipt of the proceeds by or on
behalf of the grant recipient to the Secretary
(or the Governor).
‘‘SEC. 905. DELEGATION OF IMPLEMENTATION TO STATE
DEMONSTRATION PROGRAM.
‘‘On a State-by-State basis, the Secretary may, in lieu
of awarding grants to individual local grantees, award a
grant to a State that submits an approved application to
the Secretary to conduct a State demonstration program
to carry out the demonstrations described in section
904(b). Subject to the limitations referred to in section
904(d), under a State demonstration program, the Gov-
ernor of a State shall have the authority to select aban-
doned sites and allocate assistance from amounts awarded
to the State pursuant to this section.
‘‘SEC. 906. FUNDING.
‘‘(a) IN GENERAL.—Payment of the non-Federal
share under section 904(d)(5) may be made from funds
from any non-Federal source, and may include services or
equipment necessary to carry out the reuse action.
‘‘(b) AVOIDANCE
OF
WINDFALL
FROM
GRANT
AWARD.—
‘‘(1) IN GENERAL.—A local grantee, shall, as a
condition to receiving a grant award, enter into an
agreement with the Secretary (or in the case of a
State demonstration program under section 905, the
Governor) that requires the payment of an amount
specified in paragraph (2) to the Secretary (or the
Governor) by the local grantee of any amount of
compensation that the local grantee may recover
from another person as compensation for the cost of
carrying out a reuse action at the abandoned site
that is the subject of the grant award.
‘‘(2) AMOUNT OF PAYMENT.—The amount of
payment described in this paragraph shall be—
‘‘(A) in addition to the amount required to
be paid pursuant to section 904(d)(6); and
‘‘(B) an amount equal to 85 percent of any
amount by which the amount recovered (net of
recovery costs) exceeds the non-Federal share of
the local grantee.
‘‘(c) AVOIDANCE
OF WINDFALL WHERE LOCAL
GRANTEE IS NOT SITE OWNER.—In the event that—
‘‘(1) an abandoned site that is the subject of a
grant award under this title is not owned by the
local grantee that receives the award, or
‘‘(2) an action is taken with respect to an aban-
doned site to enable the reuse or redevelopment of
real property immediately adjacent to the abandoned
site, and the local grantee does not own the adjacent
site,
the local grantee shall be required, as a condition of receiv-
ing the grant award, to enter into an agreement that is
satisfactory to the Secretary with the owner of the site
or adjacent site. The agreement shall ensure that the
owner of the site or adjacent site will not realize a windfall
from the assistance provided under the grant, and the
local grantee will be able to meet the requirements of this
title.
‘‘(d) OTHER RECOVERY OF FEDERAL ASSISTANCE.—
‘‘(1) IN GENERAL.—
‘‘(A) AMOUNT.—An agreement referred to
in subsection (b)(1) shall specify that as a con-
dition of receiving a grant award under this
title, the grant recipient shall be required to
pay to the Secretary (or the Governor) the sum
of—
‘‘(i) the amount of the grant award;
and
‘‘(ii) the amount of interest accrued
on the amount referred to in clause (i)
from the date of the awarding of the grant
(at a rate determined by the Secretary)
if a condition described in clause (i) or (ii) of
subparagraph (B) is met.
‘‘(B) FAILURE TO INITIATE.—If, with re-
spect to the abandoned site that is the subject
of the grant—
‘‘(i) a reuse action has not been initi-
ated by 1 year after the date that the
grant is awarded; or
‘‘(ii) the redevelopment or reuse has not
been completed in a timely manner (as de-
termined by the Secretary, or, in the case
of a State demonstration program under
section 905, the Governor),
the grant recipient shall be required to make a
payment pursuant to subparagraph (A).
‘‘(2) TIMING OF REPAYMENT.—A repayment re-
ferred to in paragraph (1) shall be due upon notice
to the grant recipient by the Secretary (or the Gov-
ernor) that a condition described in clause (i) or (ii)
of paragraph (1)(B) has been met.
‘‘(3) WAIVER.—The Secretary (or the Gov-
ernor) may waive the requirement for repayment
under paragraph (1) or may require only partial
payment of the amount specified in paragraph (1) if
the Secretary, (or the Governor) determines that—
‘‘(A) the grant recipient acted in a manner
consistent with the requirements of section
904(b); and
‘‘(B) exigent circumstances contributed to
the delay.
‘‘(e) USE OF RECOVERED FUNDS.—The Secretary
(or the Governor) may use funds recovered pursuant to
this section to make additional grant awards in accordance
with this title. The Governor may issue an additional
grant award with funds recovered pursuant to this section
without regard to the requirement for preapproval by the
Secretary under section 905.
‘‘SEC. 907. CRITERIA FOR SITE SELECTION.
‘‘(a) IN GENERAL.—The Secretary (or in the case of
a State demonstration program under section 905, the
Governor), after receiving completed applications for grant
awards under this title, shall select abandoned sites and
allocate awards. In making the grant awards, the Sec-
retary (or the Governor) shall take into account the follow-
ing criteria:
‘‘(1) The extent to which economic, social, and
such other benefits of the redevelopment or reuse of
the site as the Secretary (or the Governor) deter-
mines to be appropriate, including the employment
and job training opportunities, and other related
benefits to persons of low income who are residents
of the local community in which the site is located,
are likely to exceed the costs of the redevelopment
or reuse of the site. In determining the benefits, the
Secretary (or the Governor) shall consider the
amount of job opportunities to be retained or cre-
ated, expected increases in economic activity within
the community, expected increases in local tax reve-
nue, capital resources to be conserved, and such
other public resources as the Secretary (or the Gov-
ernor) determines will be conserved.
‘‘(2) The extent of need for assistance under
this title to fund a reuse action.
‘‘(3) The extent of contribution from non-Fed-
eral sources, including capital investment by private
parties, expected to occur in connection with the re-
development or reuse of the site.
‘‘(4) The degree of economic and social distress
of the local community in which the site is located,
determined by considering the amount of loss of
community employment in the industrial sector, the
rate and period of unemployment, the relative per
capita income of local community residents, any de-
cline in economic activity, any population loss or
growth that is disproportionate to local economic op-
portunity, and such other related factors as the Sec-
retary determines to be appropriate.
‘‘(5) The degree of cooperation among appro-
priate Federal agencies and departments and agen-
cies of relevant States and political subdivisions of
the States, as well as between the departments and
agencies and private parties.
‘‘(6) Whether the redevelopment or reuse of the
site will be achieved in a timely manner.
‘‘(7) Whether and to what extent the State or
unit or units of general local government in which
the site is located have established an ongoing pro-
gram or programs to facilitate the redevelopment or
reuse of abandoned sites.
‘‘(8) Such other factors as the Secretary consid-
ers relevant to the purposes of the program author-
ized by this title.
‘‘(b) PRIORITY.—The Secretary (or in the case of a
State demonstration program under section 905, the Gov-
ernor) shall give the greatest priority to the criteria re-
ferred to in paragraphs (1) through (7) of subsection (a),
and shall give an equal degree of priority to each criterion
referred to in paragraphs (1) through (7) of subsection
(a).
‘‘SEC. 908. FEDERAL FACILITIES EXCLUDED.
‘‘The Secretary (or in the case of a State demonstra-
tion program under section 905, the Governor) may not
award a grant under this title for a reuse action on a site
controlled by the Federal Government.
‘‘SEC. 909. ELIGIBLE COSTS.
‘‘(a) 
IN
GENERAL.—Administrative 
and
nonadministrative costs for a reuse action carried out pur-
suant to a grant program under section 904 or a State
demonstration program under section 905 shall constitute
eligible costs.
‘‘(b) NONADMINISTRATIVE COSTS DEFINED.—For
the purposes of this section, the term ‘nonadministrative
costs’ shall include the cost of—
‘‘(1) identifying the probable extent and nature
of, and preferred manner of carrying out, a reuse
action at an abandoned site;
‘‘(2) fees relating to any application for ap-
proval by a Federal agency or a department or agen-
cy of a State or a political subdivision of a State,
that is required and necessary to carry out a reuse
action at an abandoned site; and
‘‘(3) implementing a reuse action.
‘‘(c) ADMINISTRATIVE COST LIMITATION.—Not more
than 10 percent of the amount of a grant award under
this title may be used for administrative costs.
‘‘SEC. 910. LIABILITY UNDER OTHER LAW; AVOIDANCE OF
WINDFALL.
‘‘(a) LIABILITY UNDER OTHER LAW.—Nothing in
this title is intended to relieve any person who had an in-
terest in an abandoned site prior to the initiation of a
reuse action that is the subject of grant award under this
title from liability under, or other requirements of, any
other provision of law.
‘‘(b) AVOIDANCE OF WINDFALL.—The Secretary (or
in the case of a State demonstration program under sec-
tion 905, the Governor) shall implement a grant program
under this title in a manner that does not—
‘‘(1) relieve from liability under any other law
any person referred to in subsection (a); and
‘‘(2) reduce the incentive of any such person to
participate in funding the non-Federal share re-
quired under section 906.
‘‘(c) STATUTORY
INTERPRETATION.—Nothing in
subsection (b) is intended to prevent a local grantee who
acquires an abandoned site solely for the purpose of carry-
ing out a proposal to redevelop or reuse the site from ob-
taining assistance under this title.
‘‘SEC. 911. EVALUATION AND REPORT.
‘‘(a) EVALUATION.—
‘‘(1) IN GENERAL.—Not later than December
31, 1995, the Secretary shall conduct an initial eval-
uation of the grant program established under sec-
tion 904 and any State demonstration program es-
tablished under section 905. The evaluation shall be
based on information that is available at the time of
the evaluation.
‘‘(2) DATA COLLECTION.—The Secretary (or in
the case of a State demonstration program under
section 905, the Governor) shall require that as a
condition to receiving a grant under this title, each
grant recipient shall submit to the Secretary data
that indicate the actual costs, benefits, sources and
uses of funds, the results of an assisted redevelop-
ment or reuse project, and such other data as the
Secretary determines to be necessary for the evalua-
tion referred to in paragraph (1).
‘‘(b) CONFIDENTIALITY OF DATA COLLECTED.—The
Secretary shall maintain confidentiality of data collected
from grant recipients in accordance with any applicable
law.
‘‘(c) REPORT.—Upon completion of the evaluation re-
ferred to in subsection (a), but not later than December
31, 1995, the Secretary shall submit a report to the Con-
gress containing the findings and recommendations of the
Secretary.
‘‘(d) USE OF CONTRACTORS.—The Secretary may, in
accordance with any applicable law, enter into agreements
with such private contractors (including institutions of
higher education), as the Secretary determines necessary
for the preparation of the report referred to in subsection
(c).
‘‘SEC. 912. TECHNICAL ASSISTANCE.
‘‘(a) IN GENERAL.—The Secretary may use up to 5
percent of any amount appropriated to implement this
title to fund technical assistance grants by the Secretary
(or in the case of a State demonstration program under
section 905, the Governor) to local grantees to facilitate
their participation in the demonstration program estab-
lished by this title and their successful achievement of the
purposes of this title.
‘‘(b) PURPOSES.—A local grantee may use a grant
under this section to pay for up to the full amount of its
costs—
‘‘(1) to identify the probable extent and nature
of, and preferred manner of carrying out, a reuse
action at an abandoned site;
‘‘(2) to identify potential non-Federal sources of
capital for the redevelopment or reuse of an aban-
doned site;
‘‘(3) to determine the means of implementing in
connection with a reuse action a job training pro-
gram that benefits persons of low-income who are
residents of the local community in which an aban-
doned site is located;
‘‘(4) to identify public agencies cooperation with
which would be necessary to carry out a reuse ac-
tion; or
‘‘(5) for such other purposes approved by the
Secretary as directly relate to the local grantee’s
successfully organizing the human and other re-
sources and cooperative action necessary to carrying
out a reuse action.
‘‘(c) REPAYMENT OBLIGATION.—If a local grantee
obtains a technical assistance grant pursuant to this sec-
tion and subsequently obtains a grant to carry out a reuse
action under this title, the grant recipient’s payment obli-
gation under section 906(d) shall include the amount of
the technical assistance grant.
‘‘SEC. 913. REGULATIONS.
‘‘Not later than 180 days after the date of enactment
of this title, the Secretary shall issue such rules and regu-
lations as are necessary to carry out this title.
‘‘SEC. 914. AUTHORIZATION OF APPROPRIATIONS.
‘‘There are authorized to be appropriated to the De-
partment of Housing and Urban Development for the pur-
poses of carrying out this title $100,000,000 for each of
the fiscal years 1994, 1995, and 1996. Such sums shall
remain available until expended.’’.
Æ
HR 2070 IH——2