Title: CDBG Modernization Act of 2022
Policy area: Housing and Community Development

Summary:
CDBG Modernization Act of 2022
This bill sets out a process to revise the formulas used to allocate certain funding through the Community Development Block Grant, which supports states and local governments with neighborhood revitalization, housing rehabilitation, and community economic development efforts.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7868 Introduced in House (IH)]

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117th CONGRESS
  2d Session
                                H. R. 7868

To modernize the formulas for allocation of Community Development Block 
 Grant Program grants for entitlement communities to more effectively 
  target such amounts for community development needs, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 24, 2022

 Mr. Kustoff (for himself and Mr. Hill) introduced the following bill; 
       which was referred to the Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
To modernize the formulas for allocation of Community Development Block 
 Grant Program grants for entitlement communities to more effectively 
  target such amounts for community development needs, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``CDBG Modernization Act of 2022''.

SEC. 2. INITIAL STUDY AND REPORT.

    (a) Study.--Not later than the expiration of the 12-month period 
beginning on the date of the enactment of this Act, the Secretary of 
Housing and Urban Development (in this Act referred to as the 
``Secretary'') shall conduct a study to--
            (1) analyze and assess the effectiveness of the formulas 
        under paragraphs (1) through (3) of section 106(b) of the 
        Housing and Community Development Act of 1974 (42 U.S.C. 
        5306(b)) Act, and the factors used in such formulas, including 
        the use of the age of housing factor (as such term is defined 
        in section 102(a) of such Act (42 U.S.C. 5302(a))), in 
        effectively targeting funding under the Community Development 
        Block Grant Program (in this Act referred to as the 
        ``Program'') for community development needs and in carrying 
        out the purposes of such program under section 101 of such Act 
        (42 U.S.C. 5301); and
            (2) develop revised and updated formulas for use under 
        paragraphs (1) through (3) of such section 106(b), or updated 
        factors for use in such formulas, that--
                    (A) more effectively target funding under the 
                Community Development Block Grant Program for community 
                development needs;
                    (B) eliminate any funding inequities that use of 
                such age of housing factor has contributed to under the 
                Program;
                    (C) include an element that provides for re-
                evaluation to maintain effective targeting for 
                community development needs of grantees over time and 
                adjusts funding in accordance with such changing needs; 
                and
                    (D) more effectively carry out the purposes of the 
                Program under section 101 of such Act.
    (b) Report.--Not later than the expiration of the period referred 
to in subsection (a) of this section, the Secretary shall submit a 
report to the Congress that--
            (1) describes the study conducted pursuant to subsection 
        (a) and sets forth any findings and conclusions of such study;
            (2) sets forth the revised and updated formulas or factors 
        developed pursuant to subsection (a)(2) and to be used under 
        section 106(b) of such Act, as amended by section 3 of this 
        Act;
            (3) specifies how such revised and updated formulas or 
        factors shall be counted for purposes of section 106(b)(3) of 
        the Housing and Community Development Act of 1974;
            (4) identifies how the use of the age of housing factor has 
        contributed to inequities in effectively targeting funding 
        under the Program to community development needs of grantees; 
        and
            (5) compares the effects of using such revised and updated 
        formulas or factors to the effects of applying paragraphs 
        (1)(B) and (2)(B) of section 106(b) of the Housing and 
        Community Development Act of 1974, as in effect on the date of 
        the enactment of this Act, to determine which grantees are 
        over-subsidized or under-subsidized with respect to community 
        development needs.

SEC. 3. SUBSEQUENT STUDIES AND REPORTS.

    (a) Subsequent Studies.--Not later than the expiration of each 
successive 10-year period after the expiration of the period referred 
to in section 2(a), the Secretary shall conduct a study to--
            (1) analyze and assess the effectiveness of the revised and 
        updated formulas or factors set forth pursuant to section 
        2(b)(2) of this Act in effectively targeting funding under the 
        Community Development Block Grant Program (in this Act referred 
        to as the ``Program'') for community development needs and in 
        carrying out the purposes of such program under section 101 of 
        such Act (42 U.S.C. 5301); and
            (2) develop recommendations regarding revisions and updates 
        to such formulas and factors that--
                    (A) more effectively target funding under the 
                Community Development Block Grant Program for community 
                development needs;
                    (B) include an element that provides for re-
                evaluation to maintain effective targeting for 
                community development needs of grantees over time and 
                adjusts funding in accordance with such changing needs; 
                and
                    (C) more effectively carry out the purposes of the 
                Program under section 101 of such Act.
    (b) Reports.--Not later than the expiration of each applicable 10-
year period referred to in subsection (a) of this section, the 
Secretary shall submit a report to the Congress that--
            (1) describes the study conducted pursuant to subsection 
        (a) for such period and sets forth any findings and conclusions 
        of such study;
            (2) sets forth the recommended revisions and updates 
        developed pursuant to subsection (a)(2);
            (3) specifies how such recommended revisions and updates 
        should be counted for purposes of section 106(b)(3) of the 
        Housing and Community Development Act of 1974; and
            (4) compares the effects of using such recommended 
        revisions and updates to the effects of applying paragraphs 
        (1)(B) and (2)(B) of section 106(b) of the Housing and 
        Community Development Act of 1974, as then in effect, to 
        determine which grantees are over-subsidized or under-
        subsidized with respect to community development needs.

SEC. 4. APPLICABILITY OF NEW FORMULAS OR FACTORS.

    (a) Amendment to 1974 Act.--Subsection (b) of section 106 of the 
Housing and Community Development Act of 1974 (42 U.S.C. 5306(b)) is 
amended by striking the subsection designation and all that follows 
through the end of paragraph (3) and inserting the following:
    ``(b)(1) The Secretary shall determine the amount to be allocated 
to each metropolitan city in accordance with the revised and updated 
formulas or factors set forth pursuant to section 2(b)(2) of the CDBG 
Modernization Act of 2022 in the report pursuant to such section 2(b).
    ``(2) The Secretary shall determine the amount to be allocated to 
each urban county in accordance with the revised and updated formulas 
or factors set forth pursuant to section 2(b)(2) of the CDBG 
Modernization Act of 2022 in the report pursuant to such section 2(b).
    ``(3) In determining the amount to be allocated each metropolitan 
city and urban county, the Secretary shall count each revised and 
updated formula or factor as provided in the report pursuant to section 
2(b) of the CDBG Modernization Act of 2022.''.
    (b) Phase-In.--Notwithstanding any other provision of law, the 
Secretary shall adjust any allocations for metropolitan cities and 
urban counties made pursuant to section 106 of the Housing and 
Community Development Act of 1974 (42 U.S.C. 5306) for any of the first 
5 fiscal years commencing after the date of the enactment of this Act 
to provide for phase-in of the effects from the amendments made by this 
Act and to allow such entitlement entities to adjust their budgets 
accordingly.
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