(b) Maximum amount of grants.

(c) Project requirements; need for facilities; comprehensive planning; accessibility to low- or moderate-income residents.

(d) Conversion of facility to other uses. (e) Priority of projects designed primarily to benefit low-income families or further objectives of community action programs. 3104. Advance acquisition of land for public purposes. (a) Authority to make grants.

(b) Maximum amount of grants.

(c) Utilization of land for public purpose within
reasonable period of time.

(d) Diversion of land; repayment; interim use.
(e) Eligibility for other Federal loans or grant
programs.

Powers and duties of Secretary.
Definitions.

3105.

3106.

§3101. Congressional declaration of purpose.

The purpose of this chapter is to assist and encourage the communities of the Nation fully to meet the needs of their citizens by making it possible, with Federal grant assistance, for their governmental bodies (1) to construct adequate basic water and sewer facilities needed to promote the efficient and orderly growth and development of our communities, (2) to construct neighborhood facilities needed to enable them to carry on programs of necessary social services, and (3) to acquire, in a planned and orderly fashion, land to be utilized in the future for public purposes. (Pub. L. 89-117, title VII, § 701, Aug. 10, 1965, 79 Stat. 489; Pub. L. 90-448, title VI, § 603 (a), Aug. 1, 1968, 82 Stat. 533.)

AMENDMENTS

1968-Pub. L. 90-448, substituted "in the future for public purposes" for "in connection with the future construction of public works and facilities in cl. (3). § 3102. Grants for basic water and sewer facilities. (a) Authority to make grants for specific projects.

The Secretary of Housing and Urban Development (hereinafter in this chapter referred to as the "Secretary") is authorized to make grants to local public bodies and agencies to finance specific projects for basic public water facilities (including works for the storage, treatment, purification, and distribution of water), and for basic public sewer facilities (other than "treatment works" as defined in the Federal Water Pollution Control Act): Provided, That no grant shall be made under this

section for any sewer facilities unless the Administrator of the Environmental Protection Agency certifies to the Secretary that any waste material carried by such facilities will be adequately treated before it is discharged into any public waterway so as to meet applicable Federal, State, interstate, or local water quality standards.

(b) Maximum amount of grants.

The amount of any grant made under the authority of this section shall not exceed 50 per centum of the development cost of the project: Provided, That in the case of a community having a population of less than ten thousand, according to the most recent decennial census, which is situated within a metropolitan area, the Secretary may increase the amount of a grant for a basic public water or sewer facility assisted under this section to not more than 90 per centum of the development cost of such facility, if the community is unable to finance the construction of such facility without the increased grant authorized under this subsection, and if in such community (1) there does not exist a public or other adequate water or sewer facility which serves a substantial portion of the inhabitants of the community, and (2) the rate of unemployment is, and has been continuously for the preceding calendar year, 100 per centum above the national average: And provided further, That the limitations and restrictions contained in subsection (c) of this section shall not be applicable to any community applying for an increased grant under this subsection. (c) Project requirements; need for facilities; growth needs of area; coordination of areawide development.

No grant shall be made under this section in connection with any project unless the Secretary determines that the project is necessary to provide adequate water or sewer facilities for, and will contribute to the improvement of the health or living standards of, the people in the community to be served, and that the project is (1) designed so that an adequate capacity will be available to serve the reasonably foreseeable growth needs of the area; (2) consistent with a program meeting criteria, established by the Secretary, for a unified or officially coordinated areawide water or sewer facilities system as part of the comprehensively planned development of the area, except that prior to October 1, 1971, grants may, in the discretion of the Secretary, be made under this section when such a program for an area wide water and sewer facilities system is under active preparation, although not yet completed, if the facility or facilities for which assistance is sought can reasonably be expected to be required as a part of such program. and there is urgent need for the facility or facilities: and (3) necessary to orderly community development.

(d) Job opportunities for unemployed or underemployed persons.

In the administration of this section the Secretary shall require that, to the greatest extent practicable, new job opportunities be provided for unemployed or underemployed persons in connection with projects the financing of which is assisted under this section. (Pub. L. 89-117, title VII, § 702, Aug. 10, 1965, 79 Stat. 490; 1966 Reorg. Plan No. 2, eff. May 10, 1966, 31 F.R. 6857, 80 Stat. 1608; Pub L 90-19, § 22(b), (g), May 25, 1967, 81 Stat. 26, 27; Pub. L. 90-448, title VI, § 604, Aug. 1, 1968, 82 Stat. 534; Pub. L. 91-152, title III, § 305(a), Dec. 24, 1969, 83 Stat. 391; Pub. L. 91-431, § 3(c), Oct. 6, 1970, 84 Stat. 886; 1970 Reorg. Plan No. 3, § 2(a)(1), eff. Dec. 2, 1970, 35 F.R. 15623, 84 Stat. -.)

REFERENCES IN TEXT

The Federal Water Pollution Control Act, referred to in subsec. (a), is classified to section 1151 et seq. of Title 33, Navigation and Navigable Waters. The definitions section of the Act is classified to section 1173 of Title 33.

AMENDMENTS

1970 Subsec. (c) (2). Pub. L. 91-431 substituted "October 1, 1971" for "October 1, 1970".

1969 Subsec. (c). Pub. L. 91-152 substituted "October 1, 1970" for "October 1, 1969".

1968 Subsec. (b). Pub. L. 90-448, § 604(b), included water facilities.

Subsec. (c). Pub. L. 90-448, § 604 (a), substituted "October 1, 1969" for "July 1, 1968."

Subsec. (d). Pub. L. 90-448, § 604 (c), added subsec. (d). 1967-Pub. L. 90-19, § 22(b), substituted "Secretary" "Administrator" wherever appearing in subsecs. (a)-(c) of this section.

for

Subsec. (a). Pub. L. 90–19, § 22(g), substituted "Secretary of Housing and Urban Development (hereinafter in this chapter referred to as the 'Secretary')" for "Housing and Home Finance Administrator (hereinafter in this chapter referred to as the 'Administrator')".

SHORT TITLE

Section 1 of Pub. L. 91-431 provided: "That this Act [amending this section and section 3108 of this title and enacting provisions set out as a note under section 3108 of this title] may be cited as the 'Emergency Community Facilities Act of 1970'."

TRANSFER OF FUNCTIONS

"Administrator of the Environmental Protection Agency" was substituted for "Secretary of the Interior" in subsec. (a) pursuant to 1970 Reorg. Plan No. 3, set out in the Appendix to Title 5, Government Organization and Employees, which abolished the Federal Water Quality Administration in the Department of the Interior and transferred to the Administrator of the Environmental Protection Agency all functions which had been transferred to the Secretary of the Interior from the Secretary of Health, Education, and Welfare by Reorg. Plan No. 2 of 1966.

Secretary of the Interior was substituted for Secretary of Health, Education, and Welfare in subsec. (a) of this section pursuant to section 1(h)(1) of 1966 Reorg. Plan No. 2, eff. May 10, 1966, 31 F.R. 6857, 80 Stat. 1608, set out in the Appendix to Title 5, Government Organization and Employees, which transferred the functions of the Secretary of Health, Education, and Welfare under subsec. (a) of this section to the Secretary of the Interior.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1855dd, 3107, 3108, 3914, 4483 of this title.

§ 3103. Grants for neighborhood facilities. (a) Authority to make grants for specific projects; qualifications of approved nonprofit organizations. In accordance with the provisions of this section,

the Secretary is authorized to make grants to any local public body or agency to assist in financing specific projects for neighborhood facilities. Any such project may be undertaken by such body or agency directly or through a nonprofit organization approved by it: Provided, That no grant shall be provided under this section for any project to be undertaken through a nonprofit organization unless the Secretary determines (1) that such organization has or will have the legal, financial, and technical capacity to carry out the project, and (2) that the public body or agency to which the grant is made will have satisfactory continuing control over the use of the proposed facilities.

(b) Maximum amount of grants.

The amount of any grant made under the authority of this section shall not exceed 66% per centum of the development cost of the project for which the grant is made (or 75 per centum of such cost in the case of a project located in an area which at the time the grant is made is designated as a redevelopment area under the Area Redevelopment Act or any Act supplementary thereto).

(c) Project requirements; need for facilities; comprehensive planning; accessibility to low- or moderate-income residents.

No grant shall be made under this section for any project unless the Secretary determines that the project will provide a neighborhood facility which is (1) necessary for carrying out a program of health, recreational, social, or similar community service (including a community action program approved under subchapter II of chapter 34 of this title) in the area, (2) consistent with comprehensive planning for the development of the community, and (3) so located as to be available for use by a significant portion (or number in the case of large urban places) of the area's low- or moderate-income residents.

(d) Conversion of facility to other uses.

For a period of twenty years after a grant has been made under this section for a neighborhood facility, such facility shall not, without the approval of the Secretary, be converted to uses other than those proposed by the applicant in its application for a grant. The Secretary shall not approve any conversion in the use of such a neighborhood facility during such twenty-year period unless he finds that such conversion is in accordance with the then applicable program of health, recreational, social, or similar community services in the area and consistent with comprehensive planning for the development of the community in which the facility is located. In approving any such conversion, the Secretary may impose such additional conditions and requirements as he deems necessary.

(e) Priority of projects designed primarily to benefit low-income families or further objectives of community action programs.

The Secretary shall give priority to applications for projects designed primarily to benefit members of low-income families or otherwise substantially further the objectives of a community action program approved under subchapter II of chapter 34 of this title. (Pub. L. 89-117, title VII, § 703, Aug.

10, 1965, 79 Stat. 491; Pub. L. 90-19, § 22(b), May 25, 1967, 81 Stat. 26.)

REFERENCES IN TEXT

The Area Redevelopment Act, referred to in subsec. (b), was Pub. L. 87-27, May 1, 1961, 75 Stat. 47, formerly classified to chapter 28 of this title, and was omitted from the Code as executed the provisions are now covered by this chapter.

AMENDMENTS

1967-Pub. L. 90-19 substituted "Secretary" for "Administrator" wherever appearing in subsecs. (a) and (c)-(e) of this section.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 3107, 3108 of this title.

§ 3104. Advance acquisition of land for public purposes. (a) Authority to make grants.

In order to encourage and assist the timely acquisition of land planned to be utilized in the future for public purposes, the Secretary is authorized to make grants to States and local public bodies and agencies to assist in financing the acquisition of a fee simple estate or other interest in such land. (b) Maximum amount of grants.

The amount of any grant made under this section shall not exceed the aggregate amount of reasonable interest charges on the loans or other financial obligations incurred to finance the acquisition of such land for a period not in excess of the lesser of (1) five years from the date of acquisition of such land or (2) the period of time between the date on which the land was acquired and the date its use began for the purpose for which it was acquired: Provided, That where all or any portion of the cost of such land is not financed through borrowings, the amount of the grant shall be computed on the basis of the aggregate amount of reasonable interest charges that the Secretary determines would have been required.

(c) Utilization of land for public purpose within reasonable period of time.

No grant shall be made under this section unless the Secretary determines that the land will be utilized for a public purpose within a reasonable period of time and that such utilization will contribute to economy, efficiency, and the comprehensively planned development of the area. The Secretary shall in all cases require that land acquired with the assistance of a grant under this section be utilized for a public purpose within five years after the date on which a contract to make such grant is entered into, unless the Secretary (1) determines that due to unusual circumstances a longer period of time is necessary and in the public interest, and (2) reports such determination promptly to the Committees on Banking and Currency of the Senate and House of Representatives.

(d) Diversion of land; repayment; interim use.

No land acquired with assistance under this section shall, without approval of the Secretary, be diverted from the purpose originally approved. The Secretary shall approve no such diversion unless he finds that the diversion is in accord with the then applicable comprehensive plan for the area. In cases of a diversion of land to other than a public purpose,

the Secretary may require repayment of the grant, or substitution of land of approximately equal fair market value, whichever he deems appropriate. An interim use of the land for a public or private purpose in accordance with standards prescribed by the Secretary, or approved by him, shall not constitute a diversion within the meaning of this subsection.

(e) Eligibility for other Federal loans or grant programs.

Notwithstanding any other provision of law, no project for which land is acquired with assistance under this section shall, solely as a result of such advance acquisition, be considered ineligible for the purpose of any other Federal loan or grant program, and the amount of the purchase price paid for the land by the recipient of a grant under this section may be considered an eligible cost for the purpose of such other Federal loan or grant program. (Pub. L. 89-117, title VII, § 704, Aug. 10, 1965, 79 Stat. 491; Pub. L. 90-19, § 22(b), May 25, 1967, 81 Stat. 26; Pub. L. 90-448, title VI, § 603(b), Aug. 1, 1968, 82 Stat. 533.)

AMENDMENTS

1968 Subsec. (a). Pub. L. 90-448 substituted "to be utilized in the future for public purposes" for "to be utilized in connection with the future construction of public works or facilities."

Subsec. (b). Pub. L. 90-448 changed the period from not more than the lesser of (1) five years from the date such loan was made or such financial obligation was incurred, or (2) the period of time between the date such loan was made or such financial obligation was incurred and the date construction is begun on the public work or facility, to not more than the lesser of (1) five years from the date of acquisition of such land, or (2) the period of time between the date on which the land was acquired and the date its use began for the purpose for which it was acquired, and inserted proviso requiring the amount of the grant, where all or any portion of the cost of land is not financed through borrowings, to be computed on the basis of the aggregate amount of reasonable interest charges that the Secretary determines would have been required.

Subsec. (c). Pub. L. 90-448 substituted provisions requiring the Secretary to determine that the land will be utilized for a public purpose within a reasonable period of time, for provisions which required a determination that the public work or facility for which the land is to be utilized is planned to be constructed or initiated within a reasonable period of time, empowered the Secretary to extend the time if he determines that due to unusual circumstances a longer period of time is necessary and in the public interest, and required a prompt report of such determination to Congressional Committees.

Subsec. (d). Pub. L. 90-448 inserted provisions prohibiting diversion of land without approval of the Secretary, directing the Secretary to disapprove any diversion unless he finds that the diversion is in accord with the then applicable comprehensive plan for the area, authorizing the Secretary to accept, in cases of repayment, substitution of land of approximately equal fair market value, and stating that an interim use of land for a public or private purpose in accordance with prescribed standards shall not constitute a diversion, and eliminated provisions which required repayment if the land purchased with assistance is not utilized within five years after the agreement is entered into in connection with the construction of the public work or facility for which the land was acquired.

Subsec. (e). Pub. L. 90-448 added subsec. (e). 1967-Pub. L. 90-19 substituted "Secretary" for "Administrator" wherever appearing in subsecs. (a). (c). and (d) of this section.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 3108 of this title.

§ 3105. Powers and duties of Secretary.

(a) In the performance of, and with respect to, the functions, powers, and duties vested in him by this chapter, the Secretary shall (in addition to any authority otherwise vested in him) have the functions, powers, and duties set forth in section 1749a of Title 12, except subsections (a), (c) (2), and (f) thereof.

(b) The Secretary is authorized, notwithstanding the provisions of section 529 of Title 31, to make advance or progress payments on account of any grant made pursuant to this chapter. No part of any grant authorized to be made by the provisions of this chapter shall be used for the payment of ordinary governmental operating expenses. (Pub. L. 89-117, title VII, § 705, Aug. 10, 1965, 79 Stat. 492; Pub. L. 90-19, § 22(b), May 25, 1967, 81 Stat. 26.) AMENDMENTS

1967-Pub. L. 90-19 substituted "Secretary" for "Administrator" wherever appearing in subsecs. (a) and (b) of this section.

§ 3106. Definitions.

As used in this chapter

(a) The term "State" means the several States, the District of Columbia, the Commonwealth of Puerto Rico, and the territories and possessions of the United States.

(b) The term "local public bodies and agencies" includes public corporate bodies or political subdivisions; public agencies or instrumentalities of one or more States, municipalities, or political subdivisions of one or more States (including public agencies and instrumentalities of one or more municipalities or other political subdivisions of one or more States); Indian tribes; and boards or commissions established under the laws of any State to finance specific capital improvement projects.

(c) The term "development cost" means the cost of constructing the facility and of acquiring the land on which it is located, including necessary site improvements to permit its use as a site for the facility.

(Pub. L. 89-117, title VII, § 706, Aug. 10, 1965, 79 Stat. 492.)

§ 3107. Labor standards.

All laborers and mechanics employed by contractors or subcontractors on projects assisted under sections 3102 and 3103 of this title shall be paid wages at rates not less than those prevailing on similar construction in the locality as determined by the Secretary of Labor in accordance with the Davis-Bacon Act, as amended. No such project shall be approved without first obtaining adequate assurance that these labor standards will be maintained upon the construction work. The Secretary of Labor shall have, with respect to the labor standards specified in this section, the authority and functions set forth in Reorganization Plan Numbered 14 of 1950, and section 276c of Title 40. (Pub. L. 89-117, title VII, § 707, Aug. 10, 1965, 79 Stat. 492.)

REFERENCES IN TEXT

The Davis Bacon Act, as amended, referred to in text, is classified to sections 276a to 276a-5 of Title 40, Public Buildings, Property, and Works.

Reorganization Plan Numbered 14 of 1950 (15 F.R. 3176; 64 Stat. 1267), referred to in text, is set out in the Appendix to Title 5, Government Organization and Employees.

§ 3108. Authorization of appropriations.

(a) There are authorized to be appropriated for each fiscal year commencing after June 30, 1965, and ending prior to July 1, 1969, not to exceed (1) $200,000,000 (or $350,000,000 in the case of the fiscal year commencing July 1, 1968) for grants under section 3102 of this title, (2) $50,000,000 for grants under section 3103 of this title, and (3) $25,000,000 for grants under section 3104 of this title. In addition, there is authorized to be appropriated for grants under section 3102 of this title not to exceed $115,000,000 for the fiscal year commencing July 1, 1969, and not to exceed $100,000,000 for the fiscal year commencing July 1, 1970. In addition, upon the enactment of the Emergency Community Facilities Act of 1970, there is authorized to be appropriated for grants under section 702 not to exceed $1,000,000,000 for the fiscal year commencing July 1, 1970. In addition, there is authorized to be appropriated for the fiscal year commencing July 1, 1971, not to exceed $50,000,000 for grants under section 3103 of this title.

(b) Any amounts appropriated under this section shall remain available until expended, and any amounts authorized for any fiscal year under this section but not appropriated may be appropriated for any succeeding fiscal year commencing prior to July 1, 1972. (Pub. L. 89-117, title VII, § 708, Aug. 10, 1965, 79 Stat. 493; Pub. L. 90-448, title VI, § 605, Aug. 1, 1968, 82 Stat. 534; Pub. L. 91-152, title III, § 305(b), (c), Dec. 24, 1969, 83 Stat. 391; Pub. L. 91-431, § 3(a), (b), Oct. 6, 1970, 84 Stat. 886; Pub. L. 91-609, title III, § 304, Dec. 31, 1970, 84 Stat. 1780.)

REFERENCES IN TEXT

The Emergency Community Facilities Act of 1970, referred to in subsec. (a), is Pub. L. 91-431, Oct. 6, 1970, 84 Stat. 886. For classification of this act to the Code see section 1 of Pub. L. 91-431, set out as a Short Title note under section 3102 of this title.

AMENDMENTS

1970 Subsec. (a). Pub. L. 91-609, § 304(a), authorized appropriation of $50,000,000 for fiscal year commencing July 1, 1971, for grants under section 3103 of this title.

Pub. L. 91-431, § 3 (a), authorized appropriations for grants under section 3102 of this title of not to exceed $1,000,000,000 for the fiscal year commencing July 1, 1970. Subsec. (b). Pub. L. 91-609, § 304(b), substituted "July 1, 1972" for "July 1, 1971".

Pub. L. 91-431, § 3(b), substituted "July 1, 1972" for "July 1, 1971".

1969 Subsec. (a). Pub. L. 91-152, § 305 (c), authorized appropriations of not more than $100,000,000 for the fiscal year commencing July 1, 1970.

Subsec. (b). Pub. L. 91-152, § 305 (b), substituted "July 1, 1971" for "July 1, 1970".

1968-Subsec. (a). Pub. L. 90-448, § 605(b), authorized appropriations of not more than $350,000,000 for the fiscal

year commencing July 1, 1968, and not more than $115,000,000 for the fiscal year commencing July 1, 1969. Subsec. (b). Pub. L. 90-448, § 605 (a), substituted "July 1, 1970" for "July 1, 1969."

CONGRESSIONAL STATEMENT OF FINDINGS Section 2 of Pub. L. 91-431 provided that:

"(a) The Congress finds that a large number of municipalities and other entities of local government throughout the Nation are unable to finance construction

of vital and urgently needed public facilities because of the shortage of funds for long-term borrowing.

"(b) The Congress further finds that there is an immediate need for such facilities in order to provide basic safeguards for the health and well-being of the people of the United States, to check widespread pollution of irreplaceable water sources, and to provide an effective and practical method of combating rising unemployment."

Sec.

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.

(b) Maximum proportion of direct grant funds to total project cost.

(c) Proportion of supplementary grant funds to total project cost; rules and regulations; maximum grants; required non-Federal share.

(d) Rules and regulations; consideration of unemployment and underemployment in determining rules.

(e) Competition with regulated public utilities. (f) Review and comment upon projects by local governmental authorities.

3132. Additional grants to areas of substantial unemployment during preceding calendar year; annual review of eligibility.

§ 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 refered 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, rehabilltation, 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 (1) 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 longterm 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 matching share.

(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 share.

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 accord