To amend title I of the Housing and Community Development Act of 1974 to ensure that communities receiving community development block grants use such funds to benefit low- and moderate-income families.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Community Development Block Grant 
Renewal Act''.

SEC. 2. LOW- AND MODERATE-INCOME TARGETING REQUIREMENT.

    (a) Targeting Assistance to Low-Income Families.--
            (1) In general.--Section 101(c) of the Housing 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 ``section 
                108,''; and
                    (C) by striking ``and the Federal assistance'' and 
                inserting the following: ``and not less than 40 percent 
                of such aggregate assistance and funds shall be used 
                for the support of activities that directly benefit 
                persons of low income. 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 inserting 
                        ``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 
                                activities that benefit such persons 
                                during such period'' and inserting ``80 
                                percent of such funds are used for 
                                support of activities that benefit 
                                persons of low and moderate income 
                                during such period, and 40 percent of 
                                such funds are used for support of 
                                activities that benefit persons of low 
                                income 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 subsection 
                        (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 Development 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 subparagraph, an 
activity that is designed to serve an area generally shall not be 
considered to principally benefit persons 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 benefits persons 
of low and moderate income or persons of low income, for purposes of 
compliance with the requirements of section 101(c) and certification of 
such compliance 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 Community 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 Development 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 provided 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 designed 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 
activity 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 comprised 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 principally benefiting persons of 
low or moderate income or persons of low income, by reason of 
compliance with paragraph (1)(C) of this subsection, shall be 
considered to benefit such persons, 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 employees involved in the 
activity that are persons of low and moderate income or persons of low 
income, as applicable.''.

SEC. 4. PUBLIC PARTICIPATION.

    Section 104(a) of the Housing and Community Development 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 requirements for public hearings of the 
jurisdiction that is the grantee.''.

SEC. 5. PUBLIC MONITORING.

    Section 105(a) of the Housing and Community Development 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 following new 
        paragraph:
            ``(24) provision of assistance to nonprofit organizations 
        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 paragraph (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 community development block grants under 
title I of the Housing and Community Development Act of 1974 (42 U.S.C. 
5301 et seq.) .

Summary: Community Development Block Grant Renewal Act - Amends the Housing and Community Development Act of 1972 to increase the amount of community development assistance targeted to low- and moderate-income families, including job creation and area and economic development activities.