discretionary fund

discretionary fund Sec. 107. (a) Of the total amount of authority to enter into contracts approved in appropriation Acts under section 103(a)(1) for each of the fiscal years 1975, 1976, and 1977, an amount equal to 2 per centum thereof shall be reserved and set aside in a special discretionary fund for use by the Secretary in making grants (in addition to any other grants which may be made under this title to the same entities or for the same purposes)— (1) in behalf of new communities assisted under title VII of the Housing and Urban Development Act of 1970 or title IV of the Housing and Urban Development Act of 1968; (2) to States and units of general local government which join in carrying out housing and community development programs that are areawide in scope; (3) in Guam, the Virgin Islands, American Samoa, and the Trust Territory of the Pacific Islands; (4) to States and units of general local government for the purpose of demonstrating innovative community development projects; (5) to States and units of general local government for the purpose of meeting emergency community development needs caused by federally recognized disasters; and (6) to States and units of general local government where the Secretary deems it necessary to correct inequities resulting from the allocation provisions of section 106. (b) Not more than one-fourth of the total amount reserved and set aside in the special discretionary fund under subsection (a) for each year may be used for grants to meet emergency disaster needs under subsection (a)(5). (c) Amounts reserved and set aside in the special discretionary fund under subsection (a) in any fiscal year but not used in such year shall remain available for use in accordance with subsections (a) and (b) in subsequent fiscal years.