PROHIBITION ON USE OF URBAN DEVELOPMENT ACTION GRANTS FOR BUSINESS RELOCATIONS.

SEC. 516. PROHIBITION ON USE OF URBAN DEVELOPMENT ACTION GRANTS FOR BUSINESS RELOCATIONS. (a) In General.— Section 119(h) of the Housing and Community Development Act of 1974 is amended— (1) by inserting after the subsection designation the following: “(1) Speculative projects.— (2) by adding at the end of paragraph (1) (as so redesignated by paragraph (1) of this subsection) the following new sentence: “The provisions of this paragraph shall apply only to projects that do not have identified intended occupants.”; and (3) by adding at the end the following new paragraphs: “(2) Projects with identified intended occupants.— No assistance may be provided or utilized under this section for any project with identified intended occupants that is likely to facilitate— “(A) a relocation of any operation of an industrial or commercial plant or facility or other business establishment— 101 STAT. 1935 “(i) from any city, urban county, or identifiable community described in subsection (p), that is eligible for assistance under this section; and “(ii) to the city, urban county, or identifiable community described in subsection (p), in which the project is located; or “(B) an expansion of any such operation that results in a reduction of any such operation in any city, county, or community described in subparagraph (A)(i). “(3) Significant and adverse effect.— The restrictions established in paragraph (2) shall not apply if the Secretary determines that the relocation or expansion does not significantly and adversely affect the employment or economic base of the city, county, or community from which the relocation or expansion occurs. “(4) Appeal of adverse determination.— Following notice of intent to withhold, deny, or cancel assistance under paragraph (1) or (2), the Secretary shall provide a period of not less than 90 days in which the applicant can appeal to the Secretary the withholding, denial, or cancellation of assistance. Notwithstanding any other provision of this section, nothing in this section or in any legislative history related to the enactment of this section may be construed to permit an inference or conclusion that the policy of the Congress in the urban development action grant program is to facilitate the relocation of businesses from one area to another. “(5) Assistance for individuals adversely affected by prohibited relocations.— “(A) Any amount withdrawn by, recaptured by, or paid to the Secretary due to a violation (or a settlement of an alleged violation) of this subsection (or of any regulation issued or contractual provision entered into to carry out this subsection) by a project with identified intended occupants shall be made available by the Secretary as a grant to the city, county, or community described in subsection (p), from which the operation of an industrial or commercial plant or facility or other business establishment relocated or in which the operation was reduced. “(B) (i) Any amount made available under this paragraph shall be used by the grantee to assist individuals who were employed by the operation involved prior to the relocation or reduction and whose employment or terms of employment were adversely affected by the relocation or reduction. The assistance shall include job training, job retraining, and job placement. “(ii) If any amount made available to a grantee under this paragraph is more than is required to provide assistance under clause (i), the grantee shall use the excess amount to carry out community development activities eligible under section 105(a). “(C) (i) The provisions of this paragraph shall be applicable to any amount withdrawn by, recaptured by, or paid to the Secretary under this section, including any amount withdrawn, recaptured, or paid before the effective date of this paragraph. “(ii) Grants may be made under this paragraph only to the extent of amounts provided in appropriation Acts. “(6) Definition.— For purposes of this subsection, the term ‘operation’ includes any plant, equipment, facility, position, employment opportunity, production capacity, or product line. “(7) Regulations.— Not later than 60 days after the date of the enactment of the Housing and Community Development Act of 1987, 101 STAT. 1936the Secretary shall issue such regulations as may be necessary to carry out the provisions of this subsection. Such regulations shall include specific criteria to be used by the Secretary in determining whether there is a significant and adverse effect under paragraph (3).”. (b) Applicability.— Except as otherwise provided in section 119(h)(5) of the Housing and Community Development Act of 1974 (as added by subsection (a)), the amendments made by this section shall be applicable to urban development action grants that have not received the preliminary approval of the Secretary of Housing and Urban Development before the date of the enactment of this Act.