Housing and Urban Development Legislation--1971

(b) There are authorized to be appropriated such sums as may be necessary to carry out the provisions of this section, including such sums as may be necessary to make grants under contracts entered into under this section. The aggregate amount of contracts to make such grants shall not exceed amounts approved in appropriation Acts, and grants pursuant to such contracts shall not exceed $150,000,000 per annum prior to July 1, 1973, which maximum dollar amount shall be increased by $150,000,000 on July 1, 1973, and by $150,000,000 on July 1, 1974.

ALLOCATION AND DISTRIBUTION OF HOUSING SUBSIDY FUNDS

SEC. 506. (a) For the fiscal year commencing July 1, 1972, and for each succeeding fiscal year, the aggregate amount of contracts to make assistance payments under section 101 of the Housing and Urban Development Act of 1965 and section 235 of the National Housing Act, interest reduction payments under section 236 of the National Housing Act, and annual contributions under section 10(e) of the United States Housing Act of 1937 shall not exceed amounts approved in appropriation Acts. Of the amounts thus approved 80 per centum shall be allocated to metropolitan areas and made available to metropolitan housing agencies as provided in subsection (b).

(b) (1) The Secretary shall allocate for each metropolitan area an amount which bears the same ratio to the allocation for all metropolitan areas as the average of the ratios between

(A) the population of that metropolitan area and the population of all metropolitan areas;

(B) the amount of poverty in that metropolitan area and the amount of poverty in all metropolitan areas; and

(2) The amount allocated to each metropolitan area shall be made available to the eligible metropolitan housing agency for that area for further allocation by such agency in accordance with its approved housing program.

(c) The remainder of the amounts approved in appropriation Acts as provided in subsection (a) shall be allocated to the States and made available to State housing agencies as provided in subsection (d).

(d) (1) The Secretary shall allocate for each State an amount which bears the same ratio to the allocation for all States as the average of the ratios between(A) the population of that State and the population of all States;

(B) the amount of poverty in that State and the amount of poverty in all States;

(D) the extent of housing deficiencies in the State and the extent of housing deficiencies in all States.

(2) The amount allocated to each State shall be made available to the eligible State housing agency for that State for further allocation by such agency in accordance with its approved housing program.

(e) The Secretary shall make available to all eligible State and metropolitan housing agencies the amounts allocated to them under this section within six months after the approval of such amounts in appropriation Acts. Any amounts withheld pursuant to section 507(b) shall first be made available to eligible State and metropolitan housing agencies capable of carrying out their approved housing programs on an accelerated basis, with any remaining amounts being allocated by the Secretary under such terms and conditions as he may prescribe taking into consideration the purposes of this title and such factors as population, amount of poverty, amount of overcrowding, extent of housing deficiencies, and other social and fiscal conditions.

STATE AND METROPOLITAN HOUSING PROGRAMS

SEC. 507. (a) Prior to the receipt of any financial or other assistance under this title for any fiscal year commencing with the fiscal year ending June 30, 1973 (and at least two months prior to the beginning of such fiscal year), each State and metropolitan housing agency shall submit to the Secretary a proposed housing program covering a three-year period which (1) establishes areawide housing needs, including the need to provide an adequate supply of standard housing for low- and moderate-income families within reasonable proximity to their places of employment with adequate supporting community services and facilities, (2) establishes

adequate and feasible objectives toward meeting those needs, (3) identifies the number and types of housing units to be assisted with Federal subsidy funds, (4) identifies the income groups to be served and the general location of the housing units to be made available to each such group, and (5) identifies other local actions and programs to be undertaken to encourage needed housing production and preservation of the existing housing stock.

(b) If the Secretary determines

(1) that an acceptable housing agency has not been established for a particular State or metropolitan area, or

(2) that the three-year housing program submitted by a State or metropolitan housing agency does not substantially comply with the requirements of this section,

he shall reduce, under such terms and conditions as he may prescribe, any financial and other assistance he would otherwise provide under this title in such State or metropolitan area by such amounts and to such extent as he deems necessary to further the purposes of this title.

ADMINISTRATION

SEC. 508. The authorities provided in this title shall be administered in such manner as (1) to recognize fully the rights, powers, and responsibilities of State and local governments, (2) to allow for innovation and diversity on the part of State and local governments in the design and implementation of their housing programs, and (3) to preclude the assignment of a disproportionate share of federally subsidized housing units to any unit of general local government.

INTERSTATE AGREEMENTS

SEC. 509. The consent of the Congress is hereby given to any two or more States to enter into agreements or compacts, not in conflict with any law of the United States, for cooperative effort and mutual assistance in support of housing programs adopted under this title as they pertain to interstate areas and to localities within such States, and to establish such agencies, joint or otherwise, as they may deem desirable for making such agreement and compacts effective.

TITLE VI-COMMUNITY DEVELOPMENT BLOCK GRANTS

PURPOSE

SEC. 601. It is the purpose of this title to further the development of a national urban growth policy by consolidating a number of complex and overlapping programs of financial assistance to communities of varying sizes and needs into a single, consistent system of Federal aid which

(1) is funded in advance on a regular basis upon which communities can rely in their planning;

(2) can provide assistance on an annual basis with maximum certainty and efficiency and minimum delay;

(3) encourages community development activities which are consistent with comprehensive local and areawide development planning; and

(4) furthers achievement of the national housing goal of a decent home and a suitable living environment for every American family.

DEFINITIONS

SEC. 602. (a) As used in this title

(1) The term "unit of general local government" means any city, municipality, county, town, township, parish, village, or other general purpose political subdivision of a State, and the District of Columbia.

(2) The term "metropolitan area" means a standard metropolitan statistical area, as established by the Office of Management and Budget, subject, however, to such modifications or extensions as the Secretary deems to be appropriate for purposes of this title.

(3) The term "metropolitan city" means (A) a city within a metropolitan area which is the central city of such area, as defined and used by the Office of Management and Budget, (B) any other city, within a metropolitan area, which has a population of fifty thousand or more, or (C) a combination of two or more units of general local government within a metropolitan area, recognized by the Secretary for purposes of this title and having a population of fifty thousand or more.

(4) The term "population", with respect to any area or unit, means the total resident population of such area or unit based on data compiled by the United States Bureau of the Census and referable to the same point or period in time.

(5) The term "amount of poverty" means the number of persons (or, alternatively, the number of families and unrelated individuals) whose incomes are below the poverty level multiplied by two. Poverty levels shall be determined by the Secretary pursuant to criteria provided by the Office of Management and Budget, taking into account and making appropriate adjustments for regional variations in income and cost of living, and shall be based on data referable to the same point or period in time.

(6) The term "amount of overcrowding" means the number of housing units with 1.01 or more persons per room based on data compiled by the United States Bureau of the Census and referable to the same point or period in time.

(7) The term "extent of housing deficiencies" United States Bureau of the Census and referable to means the number of housing units lacking some or all plumbing facilities based on data compiled by the United States Bureau of the Census and referable to the same point or period in time.

(8) The term "Federal grant-in-aid program" means a program of Federal financial assistance other than loans and other than the assistance provided by this title.

(9) The term "Secretary" means the Secretary of Housing and Urban Development.

(b) Where appropriate, the definitions in subsection (a) shall be based on the most recent data compiled by the United States Bureau of the Census and the latest published reports of the Office of Management and Budget on the date of the enactment of this Act (with respect to the fiscal year in which this Act is enacted), and ninety days prior to the beginning of each subsequent fiscal year. The Secretary may by regulation change or otherwise modify the definitions in subsection (a) in order to reflect any change or modification thereof made subsequent to such date by the United States Bureau of the Census or the Office of Management and Budget.

AUTHORIZATION OF GRANTS

SEC. 603. The Secretary is authorized to make and contract to make annual grants to units of general local government to help finance Community Development Programs approved in accordance with the provisions of this title. The amount of any such grant shall not exceed 90 per centum of the Secretary's estimate of the annual cost of the approved Community Development Program with respect to which it is made.

ELIGIBLE COMMUNITY DEVELOPMENT PROGRAMS

SEC. 604. (a) No grant may be made under this title unless the Secretary has determined that the applicant

(1) has identified community needs and specified both short- and long-term community development objectives which are consistent with comprehensive local and area wide development planning and national urban growth policies; (2) has formulated a program which includes activities designed to provide an adequate supply of standard housing, particularly for low- and moderateincome individuals and families who are employed in the community; and (3) in the case of an applicant which is a metropolitan city

(A) has established a realistic three-year schedule of program activities designating resources which can and will be made available locally toward meeting those community needs;

(B) has made satisfactory provision for the periodic reexamination of program methods and objectives as information becomes available on the social, economic, and environmental consequences of program activities; and (C) has formulated a comprehensive program which includes activities designed to

(i) eliminate or prevent slums, blight, and deterioration; and (ii) develop properly planned community facilities and public improvements, including the provislon of supporting health, social, and similar services.

COMMUNITY DEVELOPMENT PROGRAM ACTIVITIES ELIGIBLE FOR ASSISTANCE

SEC. 605. A Community Development Program assisted under this title may include

(1) the acquisition of real property (including air rights, water rights, and other interests therein) which is (A) blighted, deteriorated, deteriorating, undeveloped, or inappropriately developed from the standpoint of sound community development and growth; (B) necessary for the preservation or restoration of historic sites, the beautification of urban land, the conservation of open spaces, natural resources, and scenic areas, the provision of recreational opportunities, or the guidance of urban development; (C) to be used for the provision of public works, facilities, and improvements eligible for assistance under this title; or (D) to be used for other public purposes;

(2) the acquisition, construction, reconstruction, or installation of public works, facilities, and site or other improvements-including water and sewer facilities, neighborhood facilities, historic properties, utilities, streets, street lights, foundations and platforms for air rights sites, pedestrian malls and walkways, parks, and playgrounds;

(3) code enforcement in deteriorated or deteriorating areas in which such enforcement, together with those public improvements to be provided, may be expected to arrest the decline of the area;

(4) clearance, demolition, removal, and rehabilitation of buildings and improvements (including financing of the rehabilitation of privately owned properties);

(5) payments to housing owners for losses of rental income incurred in holding for temporary periods housing units to be utilized for the relocations of individuals and families displaced by program activities;

(6) disposition (through sale, lease, donation, or otherwise) of any real property acquired pursuant to this title or its retention for public purposes; (7) provision of health, social, and similar services where the Secretary deems it necessary to properly support other approved community development activities; and

(8) such other projects or activities assisted under a Federal grant-in-aid program as the Secretary approves as part of a community development program.

AUTHORIZATION OF APPROPRIATIONS AND ALLOCATION OF FUNDS

SEC. 606. (a) (1) To finance grants for allocation to metropolitan areas under subsection (b), the Secretary is authorized to incur obligations on behalf of the United States in the form of grant agreements or otherwise in amounts aggregating not to exceed $7,500,000,000. This amount shall become available for obligation on July 1, 1972, and shall remain available until obligated. There are authorized to be appropriated for liquidation of the obligations incurred under this paragraph not to exceed $2,000,000,000 prior to July 1, 1973, which amount may be increased to not to exceed an aggregate of $4,500,000,000 prior to July 1, 1974, and to not to exceed an aggregate of $7,500,000,000 thereafter. Sums appropriated under this paragraph shall remain available until expended. The Secretary shall report annually to the Congress with respect to outstanding grants or other contractual agreements executed pursuant to this paragraph.

(2) There are authorized to be appropriated for grants to States and to units of general local government outside metropolitan areas under subsection (c) not to exceed $500,000,000 for the fiscal year commencing July 1, 1972, not to exceed $500,000,000 for the fiscal year commencing July 1, 1973, and not to exceed $500,000,000 for the fiscal year commencing July 1, 1974. Any amounts appropriated under this paragraph shall remain available until expended and any amounts authorized for any fiscal year under this paragraph but not appropriated may be appropriated for any succeeding fiscal year commencing prior to July 1, 1975. (b)(1) The amount available for obligation under subsection (a) (1) shall be allocated by the Secretary to all metropolitan areas as provided in this subsection. (2) The Secretary shall allocate to each metropolitan area an amount which bears the same ratio to the total amount available for obligation for any fiscal year as the avrage of the ratios between

(A) the population of that metropolitan area and the population of all metropolitan areas;

(B) the amount of poverty in that metropolitan area and the amount of poverty in all metropolitan areas; and

(3) From the amount allocated to each metropolitan area, the Secretary shall distribute to each metropolitan city within that area an amount which bears the same ratio to the allocation for the metropolitan area as the average of the ratios between

(A) the population of that metropolitan city and the population of the metropolitan area;

(B) the amount of poverty in that metropolitan city and the amount of poverty in the metropolitan area; and

(4) The remainder of the allocation to each metropolitan area shall be distributed by the Secretary to units of general local government within that metropolitan area, taking into consideration such factors as population, amount of poverty, amount of overcrowding, and other fiscal and social conditions prevailing in the metropolitan area. Until such time as a metropolitan city is eligible to receive funds and carry out activities as provided by this title or in the event that such a city refuses to accept such funds, the funds otherwise available for allocation to it under paragraph (2) shall be added to the funds available for distribution by the Secretary under this paragraph.

(c) The amounts appropriated pursuant to subsection (a) (2) shall be distributed by the Secretary to States and to units of general local government outside metropolitan areas, taking into consideration such factors as population, amount of poverty, amount of overcrowding, extent of housing deficiencies, and other social and fiscal conditions.

(d) All computations and determinations by the Secretary under this section shall be final and conclusive.

LABOR STANDARDS

SEC. 607. All laborers and mechnics employed by contractors or subcontractors in the performance of construction work financed in whole or in part with grants received under 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 (40 U.S.C. 276a-276a-5): Provided, That this section shall apply to the construction of residential property only if such residential property is designed for residential use for eight or more families. The Secretary of Labor shall have, with respect to such labor standards, the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (15 F.R. 3176; 64 Stat. 1267) and section 2 of the Act of June 13, 1934, as amended (48 Stat. 948; 40 U.S.C. 276(c)).

MATCHING GRANTS

SEC. 608. Funds provided under this title may be used by a recipient to cover up to 90 per centum of the required non-Federal share of any Federal grant-in-aid program where assistance is being provided for community development activities approved by the Secretary.

EFFECTIVE DATE

SEC. 609. The provisions of this title shall be effective on July 1, 1972. After such effective date, no new grants or loans may be made pursuant to title I of the Housing Act of 1949, section 312 of the Housing Act of 1964, sections 702 and 703 of the Housing and Urban Development Act of 1965, or title VII of the Housing Act of 1961, except with respect to projects or programs for which funds have been committed on or before June 30, 1972.

TITLE VII-STATE AND METROPOLITAN DEVELOPMENT AGENCIES

DECLARATION OF PURPOSE

SEC. 701. It is the purpose of this title to encourage the formation of State and metropolitan development agencies which have broad and flexible authority to carry out development activities designed to (1) provide housing and related facilities for persons and families of low and moderate income, (2) promote the

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