allocation and distribution of funds

allocation and distribution of funds Sec. 106. (a) Section 106(a) of the Housing and Community Development Act of 1974 is amended by striking out “(2) or (3)” in the second sentence and inserting in lieu thereof “(1) or (2)”. (b) Section 106(b) of such Act is amended by striking out paragraphs (1) through (4) and inserting in lieu thereof the following: “(b)(1) The Secretary shall determine the amount to be allocated to each metropolitan city which shall be the greater of an amount that bears the same ratio to the allocation for all metropolitan areas as either— “(A) the average of the ratios between— “(i) the population of that city and the population of all metropolitan areas; “(ii) the extent of poverty in that city and the extent of poverty in all metropolitan areas; and “(iii) the extent of housing overcrowding in that city and the extent of housing overcrowding in all metropolitan areas; or “(B) the average of the ratios between— 91 STAT. 1118 “(i) the extent of growth lag in that city and the extent of growth lag in all metropolitan cities; “(ii) the extent of poverty in that city and the extent of poverty in all metropolitan areas; and “(iii) the age of housing in that city and the age of housing in all metropolitan areas. “(2) The Secretary shall determine the amount to be allocated to each urban county, which shall be the greater of an amount that bears the same ratio to the allocation for all metropolitan areas as either— “(A) the average of the ratios between— “(i) the population of that urban county and the population of all metropolitan areas; “(ii) the extent of poverty in that urban county and the extent of poverty in all metropolitan areas; and “(iii) the extent of housing overcrowding in that urban county and the extent of housing overcrowding in all metropolitan areas; or “(B) the average of the ratios between— “(i) the extent of growth lag in that urban county and the extent of growth lag in all metropolitan cities and urban counties; “(ii) the extent of poverty in that urban county and the extent of poverty in all metropolitan areas; and “(iii) the age of housing in that urban county and the age of housing in all metropolitan areas. “(3) In determining the average of ratios under paragraphs (1)(A) and (2)(A), the ratio involving the extent of poverty shall be counted twice, and each of the other ratios shall be counted once; and in determining the average of ratios under paragraphs (1)(B) and (2)(B), the ratio involving the extent of growth lag shall be counted once, the ratio involving the extent of poverty shall be counted one and one-half times, and the ratio involving the age of housing shall be counted two and one-half times.”. (c) Section 100(b)(5) of such Act is amended— (1) by striking out “(5)” and inserting in lieu thereof “(4)”; and (2) by striking out “receive” and inserting in lieu thereof “are entitled to”. (d) Section 100(c) of such Act is amended— (1) by striking out “During the first three years for which funds are approved for distribution to a metropolitan city or urban county under this section” in the first sentence and inserting in lieu thereof “With respect to funds approved for distribution to a metropolitan city or urban county under this section during fiscal years 1975, 1970, and 1977”: and (2) by inserting “only for such funds approved for distribution in fiscal years 1975, 1976, and 1977” after “adjusted” in the first sentence. (e) Section 100(d) of such Act is amended to read as follows: “(d)(1) Any portion of the amount allocated to metropolitan areas under the first sentence of subsection, (a) which remains after the allocation of grants to metropolitan cities and urban counties in accordance with subsection (b) and any amounts added in accordance with the provisions of section 103(a)(2) shall be allocated by the Secretary, first, for grants to metropolitan cities, urban counties, and other units of general local government within metropolitan areas to meet their hold-harmless needs as determined under subsections (g) and (h),and, second, in accordance with the provisions of paragraph (2). 91 STAT. 1119 “(2) Any portion of such amounts which remains after applying the provisions of paragraph (1) shall be utilized by the Secretary for grants to units of general local government within metropolitan areas (other than metropolitan cities and urban counties), and States for use within metropolitan areas, allocating for the metropolitan areas of each State the greater of an amount that bears the same ratio to the allocation for such areas of all States available under this paragraph as either— “(A) the average of the ratios between— “(i) the population of the metropolitan areas in that State and the population of the metropolitan areas of all States; “(ii) the extent of poverty in the metropolitan areas in that State and the extent of poverty in the metropolitan areas of all States; and “(iii) the extent of housing overcrowding in the metropolitan areas in that State and the extent of housing overcrowding in the metropolitan areas of all States; or “(B) the average of the ratios between— “(i) the age of housing in the metropolitan areas in that State and the age of housing in the metropolitan areas of all States; “(ii) the extent of poverty in the metropolitan areas ill that State and the extent of poverty in the metropolitan areas of all States; and “(iii) the population of the metropolitan areas in that State and the population of the metropolitan areas of all States. In determining the average of the ratios under subparagraph (A), the ratio involving the extent of poverty shall be counted twice and each of the other ratios shall be counted once; and in determining the average of the ratios under subparagraph (B), the ratio involving the age of housing shall be counted two and one-half times, the ratio involving the extent of poverty shall be counted one and one-half times, and the ratio involving population shall be counted once. The Secretary shall, in order to compensate for the discrepancy between the total of the amounts to be allocated under this paragraph and the total of the amounts available under such paragraph, make a pro rata reduction of each amount allocated to the metropolitan areas in each State under such paragraph so that the metropolitan areas in each State will receive an amount which represents the same percentage of the total amount available under such paragraph as the percentage which the metropolitan areas of the same State would have received under such paragraph if the total amount available under that paragraph had equaled the total amount which was allocated under that paragraph. “(3) If the Secretary approves a grant under paragraph (2) to a unit of general local government which has a comprehensive community development program with provision for lower-income housing, the Secretary may make a multiyear commitment, up to three years, to any such unit of general local government for specified grant amounts, subject to the availability of appropriations. In determining whether to make such a commitment to a unit of general local government, the Secretary shall give special consideration to those communities presently carrying out comprehensive community development programs, which are subject to the provisions of subsection (h)(2), before making new commitments. In making grants under paragraph (2), the Secretary shall establish for each participating unit of general local government an annual grant at an amount meaningful to the size of 91 STAT. 1120the unit and the program identified, and shall consider such factors as the unit’s engaging in economic redevelopment activities, past performance of the unit in community development activities, prior and present funding levels under this title, the function of the unit as a regional center of economic development and activity, impact on the unit’s growth of national policy or direct Federal program decisions, the potential for having increased employment within such unit as a result of community development activity, the physical and economic deterioration within the unit, the age of housing stock and the extent of poverty within the unit, the extent to which the unit’s activity or program of activities is necessary to alleviate a serious threat to health or safety, the capacity of the unit to carry out such programs, and any other factors deemed, by the Secretary, to be relevant to carrying out the purposes of this title. The Secretary shall make grants under paragraph (2) in such a manner as to insure that a reasonable proportion of grants is available to applicants which are not seeking funding for comprehensive community development programs. The Secretary may accept and approve commitments for annual grants based on comprehensive community development programs commencing in future fiscal years subject only to the availability of appropriations. In computing amounts under paragraph (2), there shall be excluded metropolitan cities, urban counties, Indian tribes, and units of general local government which are entitled to hold-harmless grants pursuant to subsection (h).”. (f) Section 106(e) of such Act is amended— (1) by striking out “during such program period” in the first sentence and inserting in lieu thereof “within a reasonable time”; and (2) by striking out “during the same period” in the first sentence. (g) Section 106(f) of such Act is amended— (1) by striking out paragraph (1) and inserting in lieu thereof the following: “(f)(1) Of the amount approved in an appropriation Act under section 103(a) for grants in any year (excluding the amount provided for use in accordance with sections 103(a)(2) and 107), 20 per centum shall be allocated by the Secretary— “(A) first, for grants to units of general local government outside of metropolitan areas to meet their hold-harmless needs as determined under subsection (h); and “(B) second, any portion of such amount which remains after applying the provisions of subparagraph (A) shall be utilized by the Secretary for grants to units of general local government outside of metropolitan areas and States for use outside the metropolitan areas, allocating for the nonmetropolitan areas of each State the greater of an amount that bears the same ratio to the allocation for such areas of all States available under this subparagraph as either— “(i) the average of the ratios between— “(I) the population of the nonmetropolitan areas in that State and the population of the nonmetropolitan areas of all States; “(II) the extent of poverty in the nonmetropolitan areas in that State and the extent of poverty in the nonmetropolitan areas of all States; and “(III) the extent of housing overcrowding in the nonmetropolitan areas in that State and the extent of 91 STAT. 1121housing overcrowding in the nonmetropolitan areas of all States; or “(ii) the average of the ratios between— “(I) the age of housing in the nonmetropolitan areas in that State and the age of housing in the nonmetropolitan areas of all States; “(II) the extent of poverty in the nonmetropolitan areas in that State and the extent of poverty in the nonmetropolitan areas of all States; and “(III) the population of the nonmetropolitan areas in that State and the population of the nonmetropolitan areas of all States. In determining the average of the ratios under clause (i) of subparagraph (B) the ratio involving the extent of poverty shall be counted twice and each of the other ratios shall be counted once; and in determining the average of the ratios under clause (ii) of subparagraph (B), the ratio involving the age of housing shall be counted two and one-half times, the ratio involving the extent of poverty shall be counted one and one-half times, and the ratio involving population shall be counted once. The Secretary shall, in order to compensate for the discrepancy between the total of the amounts to be allocated under subparagraph (B) and the total of the amounts available under such subparagraph, make a pro rata reduction of each amount allocated to the nonmetropolitan areas in each State under such subparagraph so that the nonmetropolitan areas in each State will receive an amount which represents the same percentage of the total amount available under such subparagraph as the percentage which the nonmetropolitan areas of the same State would have received under such subparagraph if the total amount available under such subparagraph had equaled the total amount which was allocated under such subparagraph. “(2) If the Secretary approves a grant under paragraph (1)(B) to a unit of general local government which has a comprehensive community development program with provision for lower-income housing, the Secretary may make a multiyear commitment, up to three years, to any such unit of general local government for specified grant amounts, subject to the availability of appropriations. In determining whether to make such a commitment to a unit of general local government, the Secretary shall give special consideration to those communities presently carrying out comprehensive community development programs, which are subject to the provisions of subsection (h)(2), before making new commitments. In making grants under paragraph (1)(B), the Secretary shall establish for each participating unit of general local government an annual grant at an amount meaningful to the size of the unit and the program identified, and shall consider such factors as the unit’s engaging in economic redevelopment activities, past performance of the unit in community development activities, prior and present funding levels under this title, the function of the unit as a regional center of economic development and activity, impact on the unit’s growth of national policy or direct Federal program decisions, the potential for having increased employment within such unit as a result of community development activity, the physical and economic deterioration within the unit, the age of housing stock and the extent of poverty within the unit, the extent to which the unit’s activity or program activities is necessary to alleviate a serious threat to health or safety, the capacity of the unit to carry out such programs, and any other factors deemed, by the Secretary, 91 STAT. 1122to be relevant to carrying out the purposes of this title. The Secretary shall make grants under paragraph (1)(B) in such a manner as to insure that a reasonable proportion of grants is available to applicants which are not seeking funding for comprehensive community development programs. The Secretary may accept and approve commitments for annual grants based on comprehensive community development programs commencing in future fiscal years subject only to the availability of appropriations. In computing amounts under paragraph (1)(B), three shall be excluded units of general local government which are entitled to hold-harmless grants pursuant to subsection (h) and Indian tribes.”; (2) by redesignating paragraph (2) as paragraph (3); (3) by striking out “during such period” in paragraph (3), as redesignated, and inserting in lieu thereof “within a reasonable time”; and (4) by striking “during the same period” in such paragraph. (h) Section 106(g)(2) of such Act is amended— (1) by striking out “(b)(2) or (3)” and inserting in lieu thereof “(b)(1)(A) or (B), or (2)(A) or (B)”; and (2) by inserting “, as computed under subsection (b)(1)(A) or (B), or (2)(A) or (B),” immediately before “shall” in clauses (i) and (ii). (i) Section 106(i) of such Act is amended— (1) by striking out “population, poverty, and housing overcrowding”; (2) by striking out “receive” and inserting in lieu thereof “are entitled to”; and (3) by striking out “(b)(5)” and inserting in lieu thereof “(b)(4)”. (j) Section 106 (j) of such Act is amended— (1) by striking out “not later than thirty days prior to the beginning of any program period” in the first sentence and inserting in lieu thereof “by such date as the Secretary shall determine”; (2) by inserting “for a hold-harmless grant for a single year” after “eligibility” in the first sentence; and (3) by striking out “(b)(5)” in the second sentence and inserting in lieu thereof “(b)(4)”. (k) Section 106(1) of such Act is amended to read as follows: “(l) Not later than September 30, 1978, the Secretary shall report to the Congress with respect to the adequacy, effectiveness, and equity of the formula used for allocation of funds under this title, with specific analysis and recommendation as to the feasibility of utilizing factors of impaction (such as adjusted age of housing and extent of poverty) as a measurement consideration, and the feasibility of utilizing a single formula based on the current factors or others, including regional or area differences in income and cost of living. As used in this subsection, the term ‘impaction’ means the intensity, measured in terms of absolute numbers and proportions of each needs factor.”. (l) Section 106 of such Act is amended by adding the following new subsection at the end thereof: “(m) In the event that the total amount available for distribution under this section in fiscal year 1978 or fiscal year 1979 is insufficient to meet all basic grant and hold-harmless entitlement needs as provided pursuant to this section, and funds are not otherwise appropriated to meet such deficiency, the Secretary shall meet the deficiency through a pro rata reduction of (1) all basic grant and hold-harmless entitlement amounts, and (2) funds available under section 106(d)(2) 91 STAT. 1123(including amounts provided for use under section 103(a)(2)) and section 106(f)(1)(B).”.