application requirements

application requirements Sec. 104. (a) Section 104(a) of the Housing and Community Development Act of 1974 is amended— (1) by inserting “and housing’” in paragraph (1) after “which identifies community development”; (2) by inserting after “needs” in paragraph (2)(B) the following: “, including activities designed to revitalize neighborhoods for the benefit of low- and moderate-income persons,”; (3) by striking out “and” at the end of paragraph (3)(A.); by striking out the semicolon at the end of paragraph (3)(B) and inserting in lieu thereof “and in a manner to insure fully opportunity for participation by, and benefits to, the handicapped; and”: and by inserting the following new subparagraph after paragraph (3)(B): “(C) improve conditions for low- and moderate-income persons residing in or expected to reside in the community and foster neighborhood development in order to induce higher-income persons to remain in, or return to, the community;”; (4) by striking out paragraph (4) and inserting in lieu thereof the following: “(4) submits a housing assistance plan which— “(A) accurately surveys the condition of the housing stock in the community and assesses the housing assistance needs of lower-income persons (including elderly and handicapped persons, large families, and persons displaced or to be displaced) residing in or expected to reside in the community and identifies housing stock which is in a deteriorated condition, “(B) specifies a realistic annual goal for the number of dwelling units or lower-income persons to be assisted, including (i) the relative proportion of new, rehabilitated, and existing dwelling units, (ii) the sizes and types of housing projects and assistance best suited to the needs of lower-income persons in the community, and (iii) in the case of subsidized rehabilitation, adequate provisions to assure that a preponderance of persons assisted should be of low- and moderate-income, and “(C) indicates the general locations of proposed housing for lower-income persons, with the objective of (i) furthering the revitalization of the community, including the restoration and rehabilitation of stable neighborhoods to the maximum extent possible, and the reclamation of the housing stock where feasible through the use of a broad range of techniques for housing restoration by local government, the private sector, or community organizations, including provision of a reasonable opportunity for tenants displaced as a result of such activities to relocate in their immediate neighborhood, (ii) promoting greater choice of housing opportunities and avoiding undue concentrations of assisted persons in areas containing a high proportion of low-income persons, and (iii) assuring the availability of public facilities and services adequate, to serve proposed housing projects;”; and (5) by striking out paragraph (6) and inserting in lieu thereof the following: 91 STAT. 1115 “(6) provides satisfactory assurances that, prior to submission of its application, it has (A) prepared and followed a written citizen participation plan which provides citizens an opportunity to participate in the development of the application, encourages the submission of views and proposals, particularly by residents of blighted neighborhoods and citizens of low- and moderate-income, provides for timely responses to the proposals submitted, and schedules hearings at times and locations which permit broad participation; (B) provided citizens with adequate information concerning the amount of funds available for proposed community development activities and housing activities, the range of activities that may be undertaken, and other important requirements; (C) held public hearings to obtain the views of citizens on community development and housing needs; and (D) provided citizens with an opportunity to submit comments concerning the community development performance of the applicant; but nothing in this paragraph shall be construed to restrict the responsibility and authority of the applicant for the development of the application and the execution of its community development program.”. (b) Section 104(b)(2) of such Act is amended— (1) by striking out “low- or moderate-income” in the first sentence and inserting in lieu thereof “low- and moderate-income”; and (2) by striking out all after “urgency” in the second sentence and inserting in lieu thereof “because existing conditions pose a serious and immediate threat to the health or welfare of the community, and other financial resources are not available.” (c) Section 104(b)(3) of such Act is amended— (1) by striking out clauses (B) and (C) and inserting in lieu thereof “(B) the application does not involve a comprehensive community development program, as determined by the Secretary, and”; and (2) by redesignating clause (D) as clause (C). (d) Section 104(c)(3) of such Act is amended by inserting after “the requirements of this title” the following: with specific regard to the primary purposes of principally benefiting persons of low- and moderate-income or aiding in the prevention or elimination of slums or blight or meeting other community development needs having a particular urgency,”. (e) Section 104(d) of such Act is amended— (1) by inserting after the first sentence the following; “The performance report shall include any citizen comments submitted pursuant to subsection (a)(6)(D) and the Secretary shall consider such comments, together with the views of other citizens and such other information as may be available, in carrying out the provisions of this subsection.”; and (2) by adding at the end thereof the following: “With respect to grants made pursuant to sections 106(d)(2) and 106(f)(1)(B), the Secretary may adjust, reduce, or withdraw grant funds, or take other action as appropriate in accordance with such reviews and audits, except that funds already expended on eligible activities under this title shall not be recaptured or deducted from future grants made to the recipient.”. (f) Section 104(e) of such Act is amended by adding the following new sentence at the end thereof: “In addition, the Secretary may provide an opportunity for the State, in which a grant is to be made to 91 STAT. 1116 a unit of general local government under section 106(d)(2) or 106 (f)(1)(B), to participate in the selection process for funding such grants. Such participation may include, as determined practicable by the Secretary, the incorporation of State growth and resource coordination policies in funding decisions on such grants, or such other arrangements, excluding administration of the grants referred to in the preceding sentence, as the Secretary deems appropriate.”. (g) Section 104 of such Act is amended by adding the following new subsection at the end thereof: “(i)(1) The Secretary shall, in making funds available to the recipients of grants under this title, permit any such recipient to receive funds, in one payment, in an amount not to exceed the total amount designated in the recipient’s application, and approved by the Secretary pursuant to this section, for use by the recipient for establishing a revolving loan fund which is to be established in a private financial institution and which is to be used to finance rehabilitation activities that are part of the recipient’s community development program. The Secretary may, as a condition of making such payment, require that the revolving loan fund be utilized for the making of loans to finance rehabilitation activities in a manner consistent with this title. Rehabilitation activities authorized under this section shall begin within forty-five days after the Secretary has made such payment. “(2) The Secretary shall establish standards for such cash payments which will insure that the deposits result in appropriate benefits in support of the recipient’s rehabilitation program. These standards shall be designed to assure that the benefits to be derived from the local program include, at a minimum, one or more of the following elements, or such other criteria as determined by the Secretary— “(A) leverage of community development block grant funds so that participating financial institutions commit private funds for loans in the rehabilitation program in amounts substantially in excess of deposit of community development funds; “(B) commitment of private funds for rehabilitation loans at below-market interest rates or with repayment periods lengthened or at higher risk than would normally be taken; “(C) provision of administrative services in support of the rehabilitation program by the participating lending institutions; and “(D) interest earned on such cash deposits shall be used in a manner which supports the community rehabilitation program. At the time of application, the Secretary shall review and approve all agreements with lending institutions which receive funds for community rehabilitation programs. Such approval shall be made on a case-by-case basis, and upon a determination by the Secretary that the agreement with the lending institution meets minimum benefit standards as listed in this paragraph.”.