subgrants for program evaluation and economic 
impact analyses. 
(2) 
EXPENDITURE.—Amounts 
from 
grants 
under this section may be used directly by the eligi-
ble community-based economic development organi-
zation receiving the grant or redistributed by such 
recipient to other nonprofit, nongovernmental enti-
ties in grants, loans, loan guarantees, payments to 
reduce interest on loan guarantees, or other appro-
priate assistance, except that a recipient may not 
provide any such assistance from grant amounts to 
a private, for-profit entity. 
(d) SELECTION CRITERIA.—The Secretary shall issue 
rules, guidelines, and procedures to provide for the selec-
tion of eligible community-based economic development or-
ganizations for grants under this section, based upon a 
determination of the relative effectiveness of such organi-
zations in carrying out the purposes of this Act. Such 
rules, guidelines, and procedures shall provide for consid-
eration of the following factors: 
(1) The number of such organizations eligible 
to receive assistance under existing programs other 
than this section. 
(2) The extent to which grant amounts pro-
vided under this section will enhance the capabilities 
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of community-based economic development organiza-
tions in underserved States and localities. 
(3) The extent to which an eligible community- 
based economic development organization applying 
for a grant does not have access to other traditional 
local financial sources. 
(4) The extent to which such an organization 
represents nonprofit, nongovernmental organizations 
that serve low-income communities and persons. 
(5) The extent to which such an organization 
will implement a plan to become financially sustain-
able. 
(e) AMOUNT.—A grant under this section to a single 
grantee shall be in an amount that is not less than 
$250,000 and does not exceed $1,000,000. 
(f) PROHIBITION OF MATCHING FUNDS REQUIRE-
MENT.—The Secretary may not require a grantee under 
this section to provide amounts from sources other than 
this section to fund the specific activities to be carried out 
with grant amounts under this section. 
(g) ELIGIBILITY FOR COMMUNITY REINVESTMENT 
ACT CREDITS.—In assessing and taking into account, 
under section 804(a) of the Community Reinvestment Act 
of 1977, the record of any regulated financial institution, 
the appropriate Federal financial supervisory agency (as 
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defined in section 803(1) of such Act) may consider as 
a factor investments in community economic development 
projects of eligible community-based economic develop-
ment organizations in determining whether the institution 
is meeting the credit needs of its community for purposes 
of such section 804(a). 
(h) AUTHORIZATION OF APPROPRIATIONS.— 
(1) IN GENERAL.—There are authorized to be 
appropriated 
for 
grants 
under 
this 
section 
$75,000,000 for each of fiscal years 2004, 2005, 
and 2006. 
(2) SET-ASIDE
FOR
TECHNICAL
ASSISTANCE 
AND
TRAINING.—Of the amount made available 
under this Act for each fiscal year, $10,000,000 
shall be available only for technical assistance and 
training activities, to be conducted by national com-
munity development organizations, state community 
development associations, or city community develop-
ment associations, which have extensive nationwide 
partnerships and experience in working with commu-
nity-based economic development organizations, as 
authorized by section 4 of the HUD Demonstration 
Act of 1993 (42 U.S.C. 9816 note), as in effect im-
mediately before May 1, 2000. Of the amount re-
served for use under this paragraph, not less than 
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$4,000,000 shall be used for the support of develop-
ment organizations in rural areas. 
SEC. 4. ASSESSMENT OF COMMUNITY-BASED ECONOMIC 
DEVELOPMENT EXPERTISE. 
(a) CAPABILITY STUDY.—The Secretary shall con-
duct a study to assess the capability needs of community- 
based economic development organizations, which shall— 
(1) analyze, evaluate, and recommend processes 
to improve the administrative and operational capa-
bilities of such organizations to acceptable levels of 
success in support of the role of the Federal Govern-
ment in community economic development; and 
(2) assess the extent to which federal agencies 
can incorporate such organizations into the formula-
tion of the strategic plans of funding agencies and, 
if the extent or quality of this type of involvement 
is satisfactory, can support the role of the federal 
government in community economic development. 
The Secretary shall submit a report regarding the results 
of the study under this subsection not later than the expi-
ration of the 6-month period beginning on the date of the 
enactment of this Act. 
(b) ANNUAL REPORTS
TO CONGRESS.—Not later 
than the first March 1 occurring after the end of each 
fiscal year for which amounts are made available for 
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grants under section 3, the Secretary shall submit a report 
to the Congress, which shall include— 
(1) an evaluation of the progress made during 
such fiscal year to enhance the administrative and 
operational capabilities of community-based eco-
nomic development organizations in support of the 
role of the Federal Government in community eco-
nomic development; 
(2) an assessment of the extent to which Fed-
eral agencies have, during such fiscal year, involved 
community-based economic development organiza-
tions in responsibilities for carrying out community 
economic development programs administered by the 
agencies and delivering services under such pro-
grams that enhance the operational capabilities of 
the organizations; and 
(3) a plan for making recommendations for ac-
tions or measures to further involve community- 
based economic development organizations in the 
strategic operations of Federal agencies in support 
of community economic development. 
(c) FINAL EVALUATION.—The Secretary shall select 
an independent entity that has experience with national 
community economic development activities, nonprofit 
community-based developers, and impact evaluation and 
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