The Administration's Housing and Community Development Proposals

(i) the population of metropolitan areas in the

State and that in metropolitan areas in all States;

(ii) the extent of poverty in metropolitan areas in the State and that in metropolitan areas in all States; and

(iii) the extent of housing overcrowding in metropolitan areas in the State and that in metropolitan areas in all States.

(B) In applying subparagraph (A), the ratio involving 10 the extent of poverty shall be counted twice in determining the average of ratios, and metropolitan areas shall be con12 sidered as though they did not include metropolitan cities.

(3) To receive funds under this subsection a State must 14 certify through its Governor that in the distribution or use 15 of funds there will be made available to units of general 16 local government in each metropolitan area, with no deduc17 tion for State administrative costs, an amount which is equal to at least 50 per centum of the amount, if any, of the alloca19 tion to the State under paragraph (2) which is attributable 20 to inclusion of data pertaining to population, poverty, and 21 bousing overcrowding in that metropolitan area. Funds 22 not used in or made available to particular metropolitan areas 23 pursuant to the preceding sentence shall be available for 24 distribution by the Governor to units of general local govern25 ment in the State and may also be used, in a reasonable

1 amount, subject to regulations of the Secretary, for adminis2 trative expenses incurred by the State in carrying out this 3 Act.

4 (4) In the case of a metropolitan area extending to 5 two or more States, the portion of such area in each State 6 shall be deemed a metropolitan area for purposes of this 7 subsection.

(d) The funds made available from appropriations for 9 carrying out this Act which are not provided for and used 10 pursuant to any of the preceding subsections of this section,

or which are allotted but not paid pursuant to subsection (e) 12 (2) of this section, shall be available to the Secretary for 13 payments to States and units of general local government, 14 subject to such terms and conditions as he may prescribe, 15 or for such other uses as the Secretary may determine are 16 consistent with the purposes of this Act including evaluation, 17 directly or by contract or otherwise, of the use of shared revenues disbursed under this Act.

(e) Funds which become available in fiscal year 1977 20 and subsequent fiscal years by virtue of the third sentence 21 of paragraph (A) of subsection (a) (3) shall be allotted

as follows:

(1) Ten per centum of such sums shall be allotted

to the Secretary for use in accordance with subsection

(d) of this section;

that

(2) The balance of such sums shall be allotted so

(A) one-third is allotted among metropolitan cities and urban counties in the same manner as

funds are allotted under subparagraph (A) of sub

section (a) (2);

(B) one-third shall be allotted among the

States in the same manner as funds are allotted

under paragraph (A) of subsection (c) (2) but

without regard to the exclusion for metropolitan cities provided for in subparagraph (B) of such subsection, and shall be available in each State for distribution only in metropolitan areas, with each such area being entitled to the amount of the State's allotment which is attributable to inclusion of data

pertaining to population, poverty, and housing overcrowding in that metropolitan area;

(B) of this paragraph (2) and shall be available to

the Governors for distribution to any unit of general

local government and for other uses in accordance with the second sentence of subsection (c) (3). (3) No amount allotted under paragraph (2) (A) of this subsection shall be paid in any fiscal year to

any metropolitan city or urban county if such payment would result in such city or county receiving an aggre

gate amount pursuant to this subsection and subsection

(a) of this section which is in excess of its full holdharmless amount as computed under subparagraph (B) of subsection (a) (3), except that this limitation shall not apply with respect to any city or county if the sum of the amount allotted under such paragraph (2) (A) and the formula entitlement as computed under subparagraph (A) of subsection (a) (2) exceeds such full hold-harmless amount.

(f) All computations and determinations by the Secre13 tary under this section shall be final and conclusive.

LOANS

SEC. 8. Nothing in this Act shall be deemed to prohibit a unit of general local government from obtaining loans to 17 finance any community development activity, and from 18 pledging, or offering as security for a loan, any asset which 19 it otherwise has authority to pledge or offer as security.

NONDISCRIMINATION

SEC. 9. (a) No person in the United States shall on the 22 ground of race, color, national origin, or sex be excluded 23 from participation in, be denied the benefits of, or be sub24 jected to discrimination under any program or activity

1 funded in whole or in part with funds made available under

2 this Act.

(b) Whenever the Secretary determines that a recipient 4 has failed to comply with subsection (a) or an applicable 5 regulation, he shall notify the Governor of the State or, in 6 the case of a unit of general local government which has not 7 received shared revenues from the State, the chief executive 8 of such unit of local government, of the noncompliance and 9 shall request the Governor or the chief executive officer to secure compliance. If within a reasonable period of time,

not to exceed sixty days, the Governor or the chief executive 12 officer fails or refuses to secure compliance, the Secretary 13 is authorized (1) to refer the matter to the Attorney General 14 with a recommendation that an appropriate civil action be 15 instituted; (2) to exercise the powers and functions provided 16 by title VI of the Civil Rights Act of 1964 (42 U.S.C. 17 2000d); (3) to exercise the powers and functions provided 18 for in section 15 of this Act; or (4) to take such other action as may be provided by law.

22 23

(c) When a matter is referred to the Attorney General pursuant to subsection (b), or whenever he has reason to 22 believe that a State government or unit of local government 23 is engaged in a pattern or practice in violation of the provi24 sions of this section, the Attorney General may bring a civil

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