Source: http://digital.library.okstate.edu/Kappler/vol7/html_files/v7p1369.html
Timestamp: 2014-08-20 06:50:37
Document Index: 445900891

Matched Legal Cases: ['§ 3121', '§ 2', '§ 3122', '§ 901', '§ 3131', '§ 101', '§ 301', '§ 3132', '§ 102', '§ 3133', '§ 103', '§ 3134', '§ 104', '§ 3135', '§ 105', '§ 301', '§\n1', '§ 3141', '§ 201', '§ 1', '§ 3142', '§ 202', '§ 3142', '§ 28', '§ 3142', '§ 217', '§ 3143', '§ 203', '§ 3161', '§ 401', '§ 1102', '§ 304', '§ 3162', '§ 402', '§ 3171', '§ 403', '§ 1']

Subchapter I | II | IV
§ 3121. Congressional findings and statement of purpose.
The Congress declares that the maintenance of the national economy at a high level is vital to the best interests of the United
States, but that some of our regions, counties, and communities are suffering substantial and persistent unemployment and
underemployment; that such unemployment and underemployment cause hardship to many individuals and their families, and waste
invaluable human resources; that to overcome this problem the Federal Government, in cooperation with the States, should help
areas and regions of substantial and persistent unemployment and underemployment to take effective steps in planning and financing
their public works and economic development; that Federal financial assistance, including grants for public works and development
facilities to communities, industries, enterprises, and individuals in areas needing development should enable such areas
to help themselves achieve lasting improvement and enhance the domestic prosperity by the establishment of stable and diversified
local economies and improved local conditions, provided that such assistance is preceded by and consistent with sound, long-range
economic planning; and that under the provisions of this chapter new employment opportunities should be created by developing
and expanding new and existing public works and other facilities and resources rather than by merely transferring jobs from
one area of the United States to another. (Pub. L. 89-136, § 2, Aug. 26, 1965, 79 Stat. 552.)
§ 3122. Rural development.
(a) Congressional commitment.
The Congress commits itself to a sound balance between rural and urban America. The Congress considers this balance so essential
to the peace, prosperity, and welfare of all our citizens that the highest priority must be given to the revitalization and
(b) Location of federal facilities; annual report to Congress.
Congress hereby directs the heads of all executive departments and agencies of the Government to establish and maintain, insofar
as practicable, departmental policies and procedures with respect to the location of new offices and other facilities in areas
or communities of lower population density in preference to areas or communities of high population densities. The President
is hereby requested to submit to the Congress not later than September 1 of each fiscal year a report
reflecting the efforts during the immediately preceding fiscal year of all executive departments and agencies in carrying
out the provisions of this section, citing the location of all new facilities, and including a statement covering the basic
reasons for the selection of all new locations.
(c) Planning assistance; annual report to Congress.
The Secretary of the Department of Housing and Urban Development and the Secretary of Agriculture shall submit to the Congress
a joint progress report as to their efforts during the immediately preceding fiscal year to provide assistance to States planning
for the development of rural multicounty areas not included in economically depressed areas under authority of the Housing
and Urban Development Act of 1968. The first such annual report shall be submitted not later than December 1, 1970, and shall
cover the period beginning August 1, 1968, the date of enactment of the Housing and Urban Development Act of 1968, and ending
(d) Information and technical assistance; annual report to Congress.
The Secretary of Agriculture shall submit to the Congress a report not later than September 1 of each fiscal year reflecting
the efforts of the Department of Agriculture to provide information and technical assistance to small communities and less
populated areas in regard to rural revelopment during the immediately preceding fiscal year. The first such annual report
shall be submitted not later than December 1, 1970, covering the period beginning July 1, 1969, and ending June 30, 1970.
The Secretary shall include in such reports to what extent technical assistance has been provided through land-grant colleges
and universities, through the Extension Service, and other programs of the Department of Agriculture.
(e) Government services; annual report to Congress.
The President shall submit to the Congress a report not later than September 1 of each fiscal year stating the availability
of telephone, electrical, water, sewer, medical, educational, and other government or government assisted services to rural
areas and outlining efforts of the executive branch to improve these services during the immediately preceding fiscal year.
The President is requested to submit the first such annual report, covering the fiscal year ending June 30, 1970, on or before
(f) Financial assistance; report to Congress by July 1, 1971.
The President shall report to Congress on the possible utilization of the Farm Credit Administration and agencies in the Department
of Agriculture to fulfill rural financial assistance requirements not filled by other agencies. The President is requested
to submit the report requested by this section on or before July 1, 1971, together with such recommendations for legislation
as he deems appropriate. (Pub. L. 91-524, title IX, § 901, Nov. 30, 1970, 84 Stat. 1383.)
Subchapter I.—Grants for Public Works and Development Facilities
§ 3131. Direct and supplementary grants.
(a) Acquisition or development of public works and development facilities; required findings precedent to making of direct grants;
supplementary grants to provide matching share funds.
Upon the application of any State, or political subdivision thereof, Indian tribe, or private or public nonprofit organization
or association representing any redevelopment area or part thereof, the Secretary of Commerce (hereinafter referred to as
the Secretary) is authorized—
(1) to make direct grants for the acquisition or development of land and improvements for public works, public service, or
development facility usage, and the acquisition, construction, rehabilitation, alteration, expansion, or improvement of such
facilities, including related machinery and equipment, within a redevelopment area, if he finds that—
(A) the project for which financial assistance is sought will directly or indirectly (i) tend to improve the opportunities,
in the area where such project is or will be located, for the successful establishment or expansion of industrial or commercial
plants or facilities, (ii) otherwise assist in the creation of additional long-term employment opportunities for such area,
or (iii) primarily benefit the long-term unemployed and members of low-income families or otherwise substantially further
the objectives of the Economic Opportunity Act of 1964;
(B) the project for which a grant is requested will fulfill a pressing need of the area, or part thereof, in which it is,
or will be, located; and (C) the area for which a project is to be undertaken has an approved overall economic development program as provided in section
3142 (b)(10) of this title and such project is consistent with such program;
(2) to make supplementary grants in order to enable the States and other entities within redevelopment areas to take maximum
advantage of designated Federal grant-in-aid programs (as hereinafter defined), direct grants-in-aid authorized under this
section, and Federal grant-in-aid programs authorized by the Watershed Protection and Flood Prevention Act (68 Stat. 666,
as amended), and the eleven watersheds authorized by the Flood Control Act of December 22, 1944, as amended and supplemented
(58 Stat. 887), for which they are eligible but for which, because of their economic situation, they cannot supply the required
(b) Maximum proportion of direct grant funds to total project cost.
Subject to subsection (c) hereof, the amount of any direct grant under this section for any project shall not exceed 50 per
centum of the cost of such project.
(c) Proportion of supplementary grant funds to total project cost; rules and regulations; maximum grants; required non-Federal
The amount of any supplementary grant under this section for any project shall not exceed the applicable percentage established
by regulations promulgated by the Secretary, but in no event shall the non-Federal share of the aggregate cost of any such
project (including assumptions of debt) be less than 20 per centum of such cost, except that in the case of a grant to an
Indian tribe, the Secretary may reduce the non-Federal share below such per centum or may waive the non-Federal share. Supplementary
grants shall be made by the Secretary, in accordance with
such regulations as he shall prescribe, by increasing the amounts of direct grants authorized under this section or by the
payment of funds appropriated under this chapter to the heads of the departments, agencies, and instrumentalities of the Federal
Government responsible for the administration of the applicable Federal programs. Notwithstanding any requirement as to the
amount or sources of non-Federal funds that may otherwise be applicable to the Federal program involved, funds provided under
this subsection shall be used for the sole purpose of increasing the Federal contribution to specific projects in redevelopment
areas under such programs above the fixed maximum portion of the cost of such project otherwise authorized by the applicable
law. The term "designed Federal grant-in-aid programs," as used in this subsection, means such existing or future Federal
grant-in-aid programs assisting in the construction or equipping of facilities as the Secretary may, in furtherance of the
purposes of this chapter, designate as eligible for allocation of funds under this section. In determining the amount of any
supplementary grant available to any project under this section, the Secretary shall take into consideration the relative
needs of the area, the nature of the project to be assisted, and the amount of such fair user charges or other revenues as
the project may reasonably be expected to generate in excess of those which would amortize the local share of initial costs
and provide for its successful operation and maintenance (including depreciation).
(d) Rules and regulations; consideration of unemployment and underemployment in determining rules.
The Secretary shall prescribe rules, regulations, and procedures to carry out this section which will assure that adequate
consideration is given to the relative needs of eligible areas. In prescribing such rules, regulations, and procedures the
Secretary shall consider among other relevant factors (1) the severity of the rates of unemployment in the eligible areas
and the duration of such unemployment and (2) the income levels of families and the extent of underemployment in eligible
(e) Competition with regulated public utilities.
Except for projects specifically authorized by Congress, no financial assistance shall be extended under this section with
respect to any public service or development facility which would compete with an existing privately owned public utility
rendering a service to the public at rates or charges subject to regulation by a State or Federal regulatory body, unless
the State or Federal regulatory body determines that in the area to be served by the facility for which the financial assistance
is to be extended there is a need for an increase in such service (taking into consideration reasonably foreseeable future
needs) which the existing public utility is not able to meet through its existing facilities or through an expansion which
it agrees to undertake.
(f) Review and comment upon projects by local governmental authorities.
The Secretary shall prescribe regulations which will assure that appropriate local governmental authorities have been given
a reasonable opportunity to review and comment upon proposed projects under this section. (Pub. L. 89-136, title I, § 101,
Aug. 26, 1965, 79 Stat. 522; Pub. L. 91-123, title III, § 301(1), Nov. 25, 1969, 83 Stat. 219.)
§ 3132. Additional grants to areas of substantial unemployment during preceding calendar year; annual review of eligibility.
(a) In addition to the assistance otherwise authorized, the Secretary is authorized to make grants in accordance with the
provisions of this subchapter to those areas which the Secretary of Labor determines, on the basis of average annual available
unemployment statistics, were areas of substantial unemployment during the preceding calendar year.
(b) Areas designated under the authority of this section shall be subject to an annual review of eligibility in accordance
with section 3162 of this title, and to all of the rules, regulations, and procedures applicable to redevelopment areas except
as the Secretary may otherwise prescribe by regulation. (Pub. L. 89-136, title I, § 102, Aug. 26, 1965, 79 Stat. 554.)
§ 3133. Limitation of funds expended in any one State.
Not more than 15 per centum of the appropriations made pursuant to this subchapter may be expended in any one State. (Pub.
L. 89-136, title I, § 103, Aug. 26, 1965, 79 Stat. 554.)
§ 3134. Ineligibility of Appalachian Region for projects.
No part of any appropriations made pursuant to this subchapter may be expended for any project in any area which is within
the "Appalachian region" (as that term is defined in section 403 of the Appalachian Regional Development Act of 1965) which
is approved for assistance under the Appalachian Regional Development Act of 1965. (Pub. L. 89-136, title I, § 104, Aug. 26,
1965, 79 Stat. 554.)
§ 3135. Authorization of appropriations.
There is hereby authorized to be appropriated to carry out this subchapter not to exceed $500,000,000 for the fiscal year
ending June 30, 1966, and for each fiscal year thereafter through the fiscal year ending June 30, 1971. (Pub. L. 89-136, title
I, § 105, Aug. 26, 1965, 79 Stat. 544; Pub. L. 91-123, title III, § 301(2), Nov. 25, 1969, 83 Stat. 219; Pub. L. 91-304, §
1(a), July 6, 1970, 84 Stat. 375.)
Subchapter II.—Loans, Loan Guarantees, and Economic Development Revolving Fund
§ 3141. Public works and development facility loans.
(a) Required findings precedent.
or association representing any redevelopment area or part thereof, the Secretary is authorized to purchase evidence of indebtedness
and to make loans to assist in financing the purchase or development of land and improvements for public works, public service,
or development facility usage, including public works, public service, and development facility usage, to be provided by agencies
of the Federal Government pursuant to legislation requiring that non-Federal entities bear some part of the cost thereof,
and the acquisition, construction, rehabilitation, alteration, expansion, or improvement of such facilities, including related
machinery and equipment, within a redevelopment area, if he finds that—
(1) the project for which financial assistance is sought will directly or indirectly—
(A) tend to improve the opportunities, in the area where such project is or will be located, for the successful establishment
or expansion of industrial or commercial plants or facilities,
(B) otherwise assist in the creation of additional long-term employment opportunities for such area, or
(C) primarily benefit the long-term unemployed and members of low-income families or otherwise substantially further the objectives
of the Economic Opportunity Act of 1964;
(2) the funds requested for such project are not otherwise available from private lenders or from other Federal agencies on
terms which in the opinion of the Secretary will permit the accomplishment of the project;
(3) the amount of the loan plus the amount of other available funds for such project are adequate to insure the completion
(4) there is a reasonable expectation of repayment; and
(5) such area has an approved overall economic development program as provided in section 3142(b)(10) of this title and the
project for which financial assistance is sought is consistent with such program.
(b) Loan terms; interest rates.
Subject to section 3211(5) of this title, no loan, including renewals or extensions thereof, shall be made under this section
for a period exceeding forty years, and no evidence of indebtedness maturing more than forty years from the date of purchase
shall be purchased under this section. Such loans shall bear interest at a rate not less than a rate determined by the Secretary
of the Treasury taking into consideration the current average market yield on outstanding marketable obligations of the United
States with remaining periods to maturity comparable to the average maturities of such loans, adjusted to the nearest one-eighth
of 1 per centum, less not to exceed one-half of 1 per centum per annum.
(c) Authorization of appropriations.
There are hereby authorized to be appropriated such sums as may be necessary to carry out the provisions of this section and
section 3142 of this title: Provided, That annual appropriations for the purpose of purchasing evidences of indebtedness, making and participating in loans, and
guaranteeing loans shall not exceed $170,000,000, for the fiscal year ending June 30, 1966, and for each fiscal year thereafter
through the fiscal year ending June 30, 1971.
(d) Competition with regulated public utilities.
(e) Rules and regulations.
a reasonable opportunity to review and comment upon proposed projects under this section. (Pub. L. 89-136, title II, § 201,
Aug. 26, 1965, 79 Stat. 554; Pub. L. 91-304, § 1(b), July 6, 1970, 84 Stat. 375.)
§ 3142. Business loans and loan guarantees.
(a) Permissible guarantees; guarantee maximums.
The Secretary is authorized (1) to purchase evidences of indebtedness and to make loans (which for purposes of this section
shall include participations in loans) to aid in financing any project within a redevelopment area for the purchase or development
of land and facilities (including machinery and equipment) for industrial or commercial usage, including the construction
of new buildings, the rehabilitation of abandoned or unoccupied buildings, and the alteration, conversion, or enlargement
of existing buildings; and (2) to guarantee loans for working capital made to private borrowers by private lending institutions
in connection with projects in redevelopment areas assisted under subsection (a)(1) hereof, upon application of such institution
and upon such terms and conditions as the Secretary may prescribe: Provided, however, That no such guarantee shall at any time exceed 90 per centum of the amount of the outstanding unpaid balance of such loan.
(b) Terms and conditions.
Financial assistance under this section shall be on such terms and conditions as the Secretary determines, subject, however,
to the following restrictions and limitations.
(1) Such financial assistance shall not be extended to assist establishments relocating from one area to another or to assist
subcontractors whose purpose is to divest, or whose economic success is dependent upon divesting, other contractors or subcontractors
of contracts theretofore customarily performed by them: Provided, however, That such limitation shall not be construed to prohibit assistance for the expansion of an existing business entity through
the establishment of a new branch, affiliate, or subsidiary of such entity if the Secretary finds that the establishment of
such branch, affiliate, or subsidiary will not result in an increase in unemployment of the area of original location or in
any other area where such entity conducts business operations, unless the Secretary has reason to believe that such branch,
affiliate, or subsidiary is being established with the intention of closing down the operations of the existing business entity
in the area of its original location or in any other area where it conducts such operations.
(2) Such assistance shall be extended only to applicants, both private and public (including Indian tribes), which have been
approved for such assistance by an agency or instrumentality of the State or political subdivision thereof in which the project
to be financed is located, and which agency or instrumentality is directly concerned with problems of economic development
in such State or subdivision.
(3) The project for which financial assistance is sought must be reasonably calculated to provide more than a temporary alleviation
of unemployment or underemployment within the redevelopment area wherein it is or will be located.
(4) No loan or guarantee shall be extended hereunder unless the financial assistance applied for is not otherwise available
from private lenders or from other Federal agencies on terms which in the opinion of the Secretary will permit the accomplishment
(5) The Secretary shall not make any loan without a participation unless he determines that the loan cannot be made on a participation
(6) No evidences of indebtedness shall be purchased and no loans shall be made or guaranteed unless it is determined that
there is reasonable assurance of repayment.
(7) Subject to section 3211(5) of this title, no loan, including renewals or extension thereof, may be made hereunder for
a period exceeding twenty-five years and no evidences of indebtedness maturing more than twenty-five years from date of purchase
may be purchased hereunder: Provided, That the foregoing restrictions on maturities shall not apply to securities or obligations received by the Secretary as
a claimant in bankruptcy or equitable reorganization or as a creditor in other proceedings attendant upon insolvency of the
(8) Loans made and evidences of indebtedness purchased under this section shall bear interest at a rate not less than a rate
determined by the Secretary of the Treasury taking into consideration the current average market yield on outstanding marketable
obligations of the United States with remaining periods to maturity comparable to the average maturities of such loans, adjusted
to the nearest one-eighth of 1 per centum, plus additional charge, if any, toward covering other costs of the program as the
Secretary may determine to be consistent with its purpose.
(9) Loan assistance shall not exceed 65 per centum of the aggregate cost to the applicant (excluding all other Federal aid
in connection with the undertaking) of acquiring or developing land and facilities (including machinery and equipment), and
of constructing, altering, converting, rehabilitating, or enlarging the building or buildings of the particular project, and
shall, among others, be on the condition that—
(A) other funds are available in an amount which, together with the assistance provided hereunder, shall be sufficient to
pay such aggregate cost;
(B) not less than 15 per centum of such aggregate cost be supplied as equity capital or as a loan repayable in no shorter
period of time and at no faster an amortization rate than the Federal financial assistance extended under this section is
being repaid, and if such a loan is secured, its security shall be subordinate and inferior to the lien or liens securing
such Federal financial assistance: Provided, however, That, except in projects involving financial participation by Indian tribes, not less than 5 per centum of such aggregate
cost shall be supplied by the State or any agency, instrumentality, or political subdivision thereof, or by a community or
area organization which is nongovernmental in character, unless the Secretary shall determine in accordance with objective
standards promulgated by regulation that all or part of such funds are not reasonably available to the project because of
the economic distress of the area or for other good cause, in which case he may waive the requirement of this provision to
the extent of such unavailability, and allow the funds required by this subsection to be supplied by the applicant or by such
other non-Federal source as may reasonably be available to the project;
(C) to the extent the Secretary finds such action necessary to encourage financial participation in a particular project by
other lenders and investors, and except as otherwise provided in subparagraph (B), any Federal financial assistance extended
under this section may be repayable only after other loans made in connection with such project have been repaid in full,
and the security, if any, for such Federal financial assistance may be subordinate and inferior to the lien or liens securing
other loans made in connection with the same project.
(10) No such assistance shall be extended unless there shall be submitted to and approved by the Secretary an overall program
for the economic development of the area and a finding by the State, or any agency, instrumentality, or local political subdivision
thereof, that the project for which financial assistance is sought is consistent with such program: Provided, That nothing in this chapter shall authorize financial assistance for any project prohibited by laws of the State or local
political subdivision in which the project would be located, nor prevent the Secretary from requiring such periodic revisions
of previously approved overall economic development programs as he may deem appropriate.
(Pub. L. 89-136, title II, § 202, Aug. 26, 1965, 79 Stat. 556.)
§ 3142-1. Loans for additions or alterations to equipment, facilities, or operating methods for compliance of small business
concern with applicable occupational safety and health standards.
Loans may also be made or guaranteed for the purposes set forth in section 636(b)(6) of Title 15, pursuant to the provisions
of section 3142 of this title. (Pub. L. 91-596, § 28(d), Dec. 29, 1970, 84 Stat. 1618.)
§ 3142a. Rivers and harbors and other waterways projects for benefit of navigation, flood control, hurricane protection, beach
erosion control, and other purposes.
(a) Congressional declaration of policy; purchase of indebtedness and loans to local interests to meet contribution requirements.
In the prosecution of projects for rivers and harbors and other waterways for the benefit of navigation, the control of destructive
flood waters, hurricane protection, beach erosion control, and for other purposes, authorized to be prosecuted under the direction
of the Secretary of the Army under the supervision of the Chief of Engineers in accordance with plans adopted and authorized
by the Congress, it is hereby declared to be the policy of the Congress, that whenever such projects are located wholly or
partially within an area which is eligible for financial assistance under the Public Works and Economic Development Act of
1965, the Secretary of Commerce is authorized to purchase evidences of indebtedness and to make loans for a period not exceeding
fifty years to enable responsible local interests to meet the requirements of local cooperation pertaining to contributions
toward the cost of construction of such projects within such areas.
There is hereby authorized to be appropriated to carry out this section, not to exceed $10,000,000 per fiscal year for the
fiscal year ending June 30, 1966, and for each fiscal year thereafter through and including the fiscal year ending June 30,
1970. (Pub. L. 89-298, title II, § 217, Oct. 27, 1965, 79 Stat. 1088.)
§ 3143. Economic Development Revolving Fund.
Funds obtained by the Secretary under section 3141 of this title, loan funds obtained under section 3171 of this title, and
collections and repayments received under this chapter, shall be deposited in an economic development revolving fund (hereinafter
referred to as the "fund"), which is hereby established in the Treasury of the United States, and which shall be available
to the Secretary for the purpose of extending financial assistance under sections 3141, 3142, and 3171 of this title, and
for the payment of all obligations and expenditures arising in connection therewith. There shall also be credited to the fund
such funds as have been paid into the area redevelopment fund or may be received from obligations outstanding under the Area
Redevelopment Act. The fund shall pay into miscellaneous receipts of the Treasury, following the close of each fiscal year,
interest on the amount of loans outstanding under this chapter computed in such manner and at such rate as may be determined
of the United States with remaining periods to maturity comparable to the average maturities of such loans, adjusted to the
nearest one-eighth of 1 per centum, during the month of June preceding the fiscal year in which the loans were made. (Pub.
L. 89-136, title II, § 203, Aug. 26, 1965, 79 Stat. 558.)
Subchapter IV.—Area and District Eligibility
PART A.—REDEVELOPMENT AREAS
§ 3161. Area eligibility.
(a) Criteria for determining eligible areas; unemployment; median family income; Indian lands; loss of major source of employment.
The Secretary shall designate as "redevelopment areas"—
(1) those areas in which he determines, upon the basis of standards generally comparable with those set forth in paragraphs
(A) and (B), that there has existed substantial and persistent unemployment for an extended period of time and those areas
in which he determines there has been a substantial loss of population due to lack of employment opportunity. There shall
be included among the areas so designated any area—
(A) where the Secretary of Labor finds that the current rate of unemployment, as determined by appropriate annual statistics
for the most recent available calendar year, is 6 per centum or more and has averaged at least 6 per centum for the qualifying
time periods specified in paragraph (B); and
(B) where the Secretary of Labor finds that the annual average rate of unemployment has been at least—
(i) 50 per centum above the national average for three of the preceding four calendar years, or
(ii) 75 per centum above the national average for two of the preceding three calendar years, or
(iii) 100 per centum above the national average for one of the preceding two calendar years.
The Secretary of Labor shall find the facts and provide the data to be used by the Secretary in making the determinations
required by this subsection;
(2) those additional areas which have a median family income not in excess of 40 per centum of the national median, as determined
by the most recent available statistics for such areas;
(3) those additional Federal or State Indian reservations or trust or restricted Indian-owned land areas which the Secretary,
after consultation with the Secretary of the Interior or an appropriate State agency, determines manifest the greatest degree
of economic distress on the basis of unemployment and income statistics and other appropriate evidence of economic underdevelopment;
(4) upon request of such areas, those additional areas in which the Secretary determines that the loss, removal, curtailment,
or closing of a major source of employment has caused within three years prior to, or threatens to cause within three years
after, the date of the request an unusual and abrupt rise in unemployment of such magnitude that the unemployment rate for
the area at the time of the request exceeds the national average, or can reasonably be expected to exceed the national average,
by 50 per centum or more unless assistance is provided. Notwithstanding any provision of subsection (b) of this section to
the contrary, an area designated under the authority of this paragraph may be given a reasonable time after designation in
which to submit the overall economic development program required by section 3142(b)(10) of this title;
(5) notwithstanding any provision of this section to the contrary, those additional areas which were designated redevelopment
areas under the Area Redevelopment Act on or after March 1, 1965: Provided, however, That the continued eligibility of such areas after the first annual review of eligibility conducted in accordance with section
3162 of this title shall be dependent on their qualification for designation under the standards of economic need set forth
in subsections (a)(1) through (a)(4) of this section;
(6) those areas selected for assistance under part D of title I of the Economic Opportunity Act of 1964, and those areas which
the Secretary determines meet the purposes of section 150 of part D of title I of the Economic Opportunity Act of 1964, and
which otherwise meet the requirements of this chapter, except that no redevelopment area established under this paragraph
shall be eligible to meet the requirement of section 3171(a)(1)(B) of this title.
(b) Size and boundaries of redevelopment areas.
The size and boundaries of redevelopment areas shall be as determined by the Secretary: Provided, however, That—
(1) no area shall be designated until it has an approved overall economic development program in accordance with section 3142(b)(10)
(2) any area which does not submit an accept-
able overall economic development program in accordance with section 3142(b)(10) of this title within a reasonable time after
notification of eligibility for designation, shall not thereafter be designated prior to the next annual review of eligibility
in accordance with section 3162 of this title;
(3) no area shall be designated which does not have a population of at least one thousand five hundred persons, except that
this limitation shall not apply to any area designated under subsection (a)(3) or (a)(6) of this section; and (4) except for areas designated under subsections (a)(3), (a)(4) and (a)(6) hereof, no area shall be designated which is smaller
than a "labor area" (as defined by the Secretary of Labor), a county, or a municipality with a population of over two hundred
and fifty thousand, whichever in the opinion of the Secretary is appropriate.
(c) Use of data compiled by other Secretaries in making determination of redevelopment areas.
Upon the request of the Secretary, the Secretary of Labor, the Secretary of Agriculture, the Secretary of the Interior, and
such other heads of agencies as may be appropriate are authorized to conduct such special studies, obtain such information,
and compile and furnish to the Secretary such data as the Secretary may deem necessary or proper to enable him to make the
determinations provided for in this section. The Secretary shall reimburse when appropriate, out of any funds appropriated
to carry out the purposes of this chapter, the foregoing officers for any expenditures incurred by them under this section.
(d) Designation of areas most nearly qualifying as redevelopment areas in event of failure of any area in State to qualify under
preceding subsections.
If a State has no area designated under the preceding subsections of this section as a redevelopment area, the Secretary shall
designate as a redevelopment area that area in such State which in his opinion most nearly qualifies under such preceding
subsections. An area so designated shall have its eligibility terminated in accordance with the provisions of section 3162
of this title if any other area within the same State subsequently has become qualified or been designated under any other
subsection of this section other than subsection (a)(6) as of the time of the annual review prescribed by section 3162 of
this title: Provided, That the Secretary shall not terminate any designation of an area in a State as a redevelopment area if to do so would result
in such State having no redevelopment area.
As used in this chapter, the term "redevelopment area" refers to any area within the United States which has been designated
by the Secretary as a redevelopment area. (Pub. L. 89-136, title IV, § 401, Aug. 26, 1965, 79 Stat. 560; Pub. L. 89-794, title
XI, § 1102, Nov. 8, 1966, 80 Stat. 1477; Pub. L. 91-123, title III, § 304, Nov. 25, 1969, 83 Stat. 219.)
§ 3162. Annual review of area eligibility; termination of eligibility; notification of change of classification.
The Secretary shall conduct an annual review of all areas designated in accordance with section 3161 of this title, and on
the basis thereof shall terminate or modify the designations of such areas in accordance with objective standards which he
shall prescribe by regulation. No area previously designated shall retain its designated status unless it maintains a currently
approved overall economic development program in accordance with section 3142(b)(10) of this title. No termination of eligibility
shall (1) be made without thirty days prior notification to the area concerned, (2) affect the validity of any application
filed, or contract or undertaking entered into, with respect to such area pursuant to this chapter prior to such termination,
(3) prevent any such area from again being designated a redevelopment area under section 3161 of this title if the Secretary
determines it to be eligible under such section, or (4) be made in the case of any designated area where the Secretary determines
that an improvement in the unemployment rate of a designated area is primarily the result of increased employment in occupations
not likely to be permanent. The Secretary shall keep the departments and agencies of the Federal Government, and interested
State or local agencies, advised at all times of any changes made hereunder with respect to the classification of any area.
(Pub. L. 89-136, title IV, § 402, Aug. 26, 1965, 79 Stat. 561.)
PART B.—ECONOMIC DEVELOPMENT DISTRICTS
§ 3171. District eligibility.
(a) Authority to designate economic development districts; criteria; economic development centers; increases of grants.
In order that economic development projects of broader geographical significance may be planned and carried out, the Secretary
(1) to designate appropriate "economic development districts" within the United States with the concurrence of the States
in which such districts will be wholly or partially located, if—
(A) the proposed district is of sufficient size or population, and contains sufficient resources, to foster economic development
on a scale involving more than a single redevelopment area;
(B) the proposed district contains two or more redevelopment areas;
(C) the proposed district contains one or more redevelopment areas or economic development centers identified in an approved
district overall economic development program as having sufficient size and potential to foster the economic growth activities
necessary to alleviate the distress of the redevelopment areas within the district; and
(D) the proposed district has a district overall economic development program which includes adequate land use and transportation
planning and contains a specific program for district cooperation, self-help, and public investment and is approved by the
State or States affected and by the Secretary;
(2) to designate as "economic development centers," in accordance with such regulations as he shall prescribe, such areas
as he may deem appropriate, if—
(A) the proposed center has been identified and included in an approved district overall economic development program and
recommended by the State or States affected for such special designation;
(B) the proposed center is geographically and economically so related to the district that its economic growth may reasonably
be expected to contribute significantly to the alleviation of distress in the redevelopment areas of the district; and
(C) the proposed center does not have a population in excess of two hundred and fifty thousand according to the last preceding
(3) to provide financial assistance in accordance with the criteria of sections 3131, 3141, and 3142 of this title, except
as may be herein otherwise provided, for projects in economic development centers designated under subsection (a)(2) above,
(A) the project will further the objectives of the overall economic development program of the district in which it is to
be located;
(B) the project will enhance the economic growth potential of the district or result in additional long-term employment opportunities
commensurate with the amount of Federal financial assistance requested; and
(C) the amount of Federal financial assistance requested is reasonably related to the size, population, and economic needs
(4) subject to the 20 per centum non-Federal share required for any project by section 3131(c) of this title, to increase
the amount of grant assistance authorized by section 3131 of this title for projects within redevelopment areas (designated
under section 3161 of this title), by an amount not to exceed 10 per centum of the aggregate cost of any such project, in
accordance with such regulations as he shall prescribe if—
(A) the redevelopment area is situated within a designated economic development district and is actively participating in
the economic development activities of the district; and
(B) the project is consistent with an approved district overall economic development program.
(b) State proposals; state and local participation.
In designating economic development districts and approving district overall economic development programs under subsection
(a) of this section, the Secretary is authorized, under regulations prescribed by him—
(1) to invite the several States to draw up proposed district boundaries and to identify potential economic development centers;
(2) to cooperate with the several States—
(A) in sponsoring and assisting district economic planning and development groups, and
(B) in assisting such district groups to formulate district overall economic development programs;
(3) to encourage participation by appropriate local governmental authorities in such economic development districts.
(c) Termination and modification of districts and centers.
The Secretary shall by regulation prescribe standards for the termination or modification of economic development districts
and economic development centers designated under the authority of this section.
(d) Definition of economic development district.
As used in this chapter, the term "economic development district" refers to any area within the United States composed of
cooperating redevelopment areas and, where appropriate, designated economic development centers and neighboring counties or
communities, which has been designated by the Secretary as an economic development district.
(e) Definition of economic development center.
As used in this chapter, the term "economic development center" refers to any area within the United States which has been
identified as an economic development center in an approved district overall economic development program and which has been
designated by the Secretary as eligible for financial assistance under sections 3131, 3141, and 3142 of this title in accordance
(f) Definition of local government.
For the purpose of this chapter the term "local government" means any city, county, town, parish, village, or other general-purpose
There is hereby authorized to be appropriated not to exceed $50,000,000 for the fiscal year ending June 30, 1967, and for
each fiscal year thereafter through the fiscal year ending June 30, 1971, for financial assistance extended under the provisions
of subsection (a)(3) and (a)(4) hereof. (Pub. L. 89-136, title IV, § 403 (a)—(g), Aug. 26, 1965, 79 Stat. 562; Pub. L. 91-304,
§ 1(d), July 6, 1970, 84 Stat. 375.)