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1 on January 1, 1972. After such effective date, no new

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grants or loans may be made pursuant to title I of the Hous

3 ing Act of 1949, section 312 of the Housing Act of 1964,

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1965, and title I of the Demonstration Cities and Metro

politan Development Act of 1966, except with respect to

projects or programs for which funds have been committed

on or before December 31, 1971.

APPROPRIATION FOR LIQUIDATION OF URBAN RENEWAL

CONTRACTS

SEC. 118. Section 3689 of the Revised Statutes, as

amended (31 U.S.C. 711), is further amended by adding the following new paragraph at the end thereof: "(22) For

payments required from time to time under contracts en

tered into pursuant to section 103 (b) of the Housing Act of

1949, as amended, with respect to projects or programs for

which funds have been committed on or before December

31, 1971, and for which funds have not previously been appropriated."

CONFORMING AND TECHNICAL AMENDMENTS

SEC. 119. (a) Section 217 of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.C. 4601) is amended

(1) by striking out "or" after "Housing Act of

1949, as amended," and

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(2) by adding after "Demonstration Cities and Metropolitan Development Act of 1966" the following:

", or as a direct result of any community developinent activity assisted under the Urban Community Development Revenue Sharing Act of 1971".

(b) The Secretary is authorized to transfer the assets

7 and liabilities of any superseded or nonactive program of

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housing or urban development to the revolving fund for

liquidating programs established pursuant to title II of the 10 Independent Offices Appropriation Act of 1955 (Public

Law 81-428; 68 Stat. 272, 295).

TITLE II-STATE AND LOCAL PLANNING AND

MANAGEMENT PROGRAMS

STATEMENT OF FINDINGS AND PURPOSE

SEC. 201. The Congress hereby finds and declares—

(1) that the ability of our federal system of government to respond effectively to the needs of all citizens

depends upon the strength and capabilities of Federal, State, and local governments;

(2) that the Federal-aid system has not given suffi

cient recognition to the need to work through and to strengthen elected officials of State and local general

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purpose governments and regional combinations thereof; (3) that State and local governinents must be aided in developing their plan and management capa

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bilities if they are to assume their proper responsibili

ties in the Federal system and if the fullest effectiveness of Federal funds expended through revenue sharing is to be achieved;

(4) that previous Federal programs to improve State and local government capabilities have tended to be limited to specific functional areas and individual agencies and have not been directed at strengthening

the overall capability of State and local officials to plan and make decisions and to manage their affairs; and

(5) that basic reliance should be placed on State and local resources to support the improvement of State and local planning, decisionmaking, and management capabilities, but the Federal Government should provide additional assistance in order to strengthen the Federal system and promote the welfare of all citizens.

It is therefore the purpose of this title to strengthen 18 general purpose units of government and regional combina19 tions thereof at the State and local levels to enable them 20 to use their own and shared revenues more effectively to 21 cope with complex problems in a manner responsive to the 22 economic and social needs and desires of all affected citizens. 23 To promote this purpose Federal assistance will be provided 24 to States and localities undertaking planning and manage

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1 ment programs which lead to more effective resource

2 allocation.

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DEFINITIONS

SEC. 202. As used in this title

(1) "Secretary" means the Secretary of Housing and Urban Development;

(2) "State means any State of the United States, the Commonwealth of Puerto Rico, Guam, and the Virgin Islands;

(3) "locality" includes any city, country, or other unit of general local government, the District of Columbia, any territory or possession of the United States, or metropolitan or other multijurisdictional area which the Secretary, guided by any criteria in an applicable State planning and management program, determines forms an economic and socially related development

region, taking into account such factors as present and

future population trends and patterns of urban growth, 19 location of transportation corridors, facilities and systems, and distribution of industrial, commercial, residential, governmental, institutional, and other activities; and

(4) "governmental agency" means (1) an Indian tribe or organization determined by the Secretary to have governmental characteristics, and (2) an organization,

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to section 204 or, in the absence of such standards and criteria, an areawide agency designated pursuant to

title II of the Demonstration Cities and Metropolitan Development Act of 1966 or title IV of the Intergovernmental Cooperation Act of 1968, which is organized to deal with matters of governmental concern to two or more public bodies or units of government.

PLANNING AND MANAGEMENT PROGRAMS GENERALLY

11 SEC. 203. (a) Planning and management programs 12 assisted under this title shall be designed by the State or 13 locality to meet its own particular needs and to improve 14 capabilities of elected officials for developing, implementing, 15 and evaluating policies, programs, and projects in a balanced

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manner that will further the purpose of this title. Activities 17 which may be supported under this title are those which (1) 18 will aid in the attainment of specified State or local objectives

19 relating to governmental operation, land use, housing, de20 velopment, resource management, or areawide and inter

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governmental coordination, and (2) are carried out in a

manner which assures periodic examination by States or

23 localities of methods and objectives as information becomes

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available on the social, economic, and environmental con