[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1003 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 1003

 To amend title I of the Housing and Community Development Act of 1974 
       to establish an economic development block grant program.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 18, 1993

 Mr. Shays (for himself and Mr. Mfume) introduced the following bill; 
   which was referred to the Committee on Banking, Finance and Urban 
                                Affairs

_______________________________________________________________________

                                 A BILL


 
 To amend title I of the Housing and Community Development Act of 1974 
       to establish an economic development block grant program.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Targeted Economic Development Block 
Grant Program Act of 1993''.

SEC. 2. ESTABLISHMENT OF TARGETED ECONOMIC DEVELOPMENT BLOCK GRANT 
              PROGRAM.

    Title I of the Housing and Community Development Act of 1974 (42 
U.S.C. 5301 et seq.) is amended by adding at the end the following new 
section:

``SEC. 122. TARGETED ECONOMIC DEVELOPMENT BLOCK GRANT PROGRAM.

    ``(a) Allocation.--
            ``(1) In general.--From amounts appropriated under 
        subsection (g), the Secretary of Housing and Urban Development 
        shall allocate to each qualified city for a fiscal year the 
        amount determined in accordance with the following formula:

      

                                                                        
                                      X                                 
                        A  <3-ln (> ---- <3-ln )>                       
                                      U                                 
                                                                        

            ``(2) Determination of eligibility.--A city is a qualified 
        city if such city--
                    ``(A) is a metropolitan city;
                    ``(B) is, for any fiscal year, eligible to receive 
                an allocation of funds under section 106(a)(3); and
                    ``(C) has a need adjusted per capita income factor 
                (as determined under paragraph (7)) is equal to or less 
                than 0.55.
            ``(3) Determination of term `a'.--For purposes of paragraph 
        (1), the term `A' means the amount appropriated under 
        subsection (g) for the fiscal year involved.
            ``(4) Determination of term `u'.--For purposes of paragraph 
        (1), the term `U' means the sum of the respective terms `X' 
        determined for the cities under paragraph (5).
            ``(5) Determination of term `x'.--For purposes of paragraph 
        (1), the term `X' means the product of--
                    ``(A) the total population of the city involved, as 
                determined by the Secretary using the most recent data 
                that is available from the Secretary of Commerce 
                pursuant to the decennial census and pursuant to 
                reasonable estimates by such Secretary of changes 
                occurring in the data in the ensuing period;
                    ``(B) the need index of such city, as determined 
                under paragraph (6); and
                    ``(C) the need adjusted per capita income factor of 
                such city, as determined under paragraph (7).
            ``(6) Determination of need index.--
                    ``(A) For purposes of paragraph (5)(B), the term 
                `need index' means the number equal to the quotient 
                of--
                            ``(i) the term `N', as determined under 
                        subparagraph (B); divided by
                            ``(ii) the term `P', as determined under 
                        subparagraph (C).
                    ``(B) For purposes of subparagraph (A)(i), the term 
                `N' means the percentage constituted by the ratio of--
                            ``(i) the amount of funds allocated to the 
                        city in the current fiscal year under section 
                        106(a)(3); to
                            ``(ii) the sum of the amount of funds 
                        received by all eligible cities in the current 
                        fiscal year under section 106(a)(3).
                    ``(C) For purposes of subparagraph (A)(ii), the 
                term `P' means the percentage constituted by the ratio 
                of--
                            ``(i) the amount equal to the total 
                        population of the city, as determined by the 
                        Secretary using the most recent data that is 
                        available from the Secretary of Commerce 
                        pursuant to the decennial census and pursuant 
                        to reasonable estimates by such Secretary of 
                        changes occurring in the data in the ensuing 
                        period; to
                            ``(ii) the amount equal to the total 
                        population of all eligible cities in the 
                        current fiscal year.
                    ``(D) For purposes of this paragraph, the term 
                `eligible cities' means those cities which meet the 
                requirements of subparagraphs (A) and (B) of paragraph 
                (2).
            ``(7) Determination of need adjusted per capita income 
        factor.--
                    ``(A) For purposes of paragraphs (2)(C) and (5)(C) 
                (and subject to subparagraph (D)), the term `need 
                adjusted per capita income factor' means the amount 
                equal to the percentage determined for the city in 
                accordance with the following formula:

      

                                                                                                                
                                                                      I                                         
                                                   1-.15   <3-ln (> ---- <3-ln )>                               
                                                                     Q                                          

                    ``(B) For purposes of subparagraph (A), the term 
                `I' means the per capita income of the city for the 
                most recent year for which data is available, as 
                determined by the Secretary of Commerce.
                    ``(C) For purposes of subparagraph (A), the term 
                `Q' means the product of--
                            ``(i) the need index of such city, as 
                        determined under paragraph (6); and
                            ``(ii) the amount equal to the per capita 
                        income of the United States for the most recent 
                        year for which data is available, as determined 
                        by the Secretary of Commerce.
                    ``(D) In the case of a city for which the quotient 
                of the term `I' (as determined under subparagraph (B)) 
                divided by the term `Q' (as determined under 
                subparagraph (C)) is less than 0.2, then such quotient 
                shall be deemed to be equal to 0.2 for such city for 
                purposes of the formula under subparagraph (A).
    ``(b) Application.--
            ``(1) In general.--The Secretary may not make a grant under 
        subsection (a) in a fiscal year to a city unless the city 
        submits to the Secretary an application in such form and 
        containing such information as the Secretary may require, 
        including the certifications required under paragraph (2).
            ``(2) Certifications.--Each application shall include 
        certifications by the chief executive official of the city and 
        the Governor of the State in which the city is located that--
                    ``(A) the city will use amounts from a grant 
                received under subsection (a) only for the purpose of 
                carrying out the eligible activities under subsection 
                (e) and will not use amounts from such grant for any of 
                the prohibited activities under subsection (f);
                    ``(B) the city will provide matching amounts in 
                accordance with the formula in subsection (c) for the 
                purpose of carrying out such eligible activities;
                    ``(C) the State in which the city is located will 
                provide matching amounts to the city in accordance with 
                the formula in subsection (d) for the purpose of 
                carrying out such eligible activities;
                    ``(D) the city will maintain all amounts received 
                from a grant under subsection (a) and all matching 
                amounts described in subparagraphs (B) and (C) in an 
                account separate from the account in which the general 
                funds of the city are maintained;
                    ``(E) both the city and the State will maintain 
                their aggregate expenditures from all other sources for 
                such eligible activities at or above the average level 
                of such expenditures in the 2 fiscal years preceding 
                the date on which the city receives amounts from a 
                grant under subsection (a);
                    ``(F) the city will reserve not less than 5 percent 
                of amounts received from a grant under subsection (a) 
                to enter into contracts with minority-owned businesses 
                for the purpose of carrying out such eligible 
                activities; and
                    ``(G) not later than 180 days after the date on 
                which the city receives amounts from a grant under 
                subsection (a), the city will submit to the Secretary a 
                report containing a description of the use of amounts 
                received from a grant under subsection (a) and an 
                evaluation of the effectiveness of the grant program in 
                the city, including the extent to which the taxable 
                value of the local property tax base and related 
                revenue sources allocated to the city's general fund 
                have been increased.
            ``(3) Notification of disapproval.--
                    ``(A) In general.--The Secretary shall provide 
                notification to a city of a proposed disapproval of 
                such city's application not later than 20 days after 
                the date on which the Secretary receives such 
                application under paragraph (1).
                    ``(B) Appeal.--A city may appeal the proposed 
                disapproval of an application under subparagraph (A). 
                Such appeal, including review by the Secretary, shall 
                be completed not later than 45 days after the date on 
                which the city provides notice to the Secretary of such 
                appeal.
    ``(c) City Matching Funds.--
            ``(1) In general.--Subject to paragraph (3), each city 
        receiving amounts from a grant under subsection (a) shall 
        provide amounts for each dollar allocated under such subsection 
        at a rate in accordance with the following formula:

      

                                                                        
                                       I                                
                      .15 <5-line (> ---- <5-ln )>                      
                                       Q                                
                                                                        

  ----------------
---------------------------------------------------------------------------
  

                                                                                                                
                                                            I                                                   
                                         1-.15 <5-line (> ---- <5-ln )>                                         
                                                            Q                                                   
                                                                                                                

            ``(2) Determination of terms `i' and `q'.--For purposes of 
        paragraph (1) (and subject to subsection (a)(7)(D)), the 
        quotient of the term `I' divided by the term `Q' is equal to 
        the term `I' determined under subsection (a)(7)(B) divided by 
        the term `Q' determined under subsection (a)(7)(C).
            ``(3) Special rule.--
                    ``(A) In the case of a city for which the rate 
                determined under paragraph (1) is less than 5 cents per 
                dollar of amounts allocated under subsection (a), then 
                such rate shall be deemed to be equal to 5 cents per 
                dollar.
                    ``(B) In the case of a city for which the rate 
                determined under paragraph (1) is more than 25 cents 
                per dollar of amounts allocated under subsection (a), 
                then such rate shall be deemed to be equal to 25 cents 
                per dollar.
    ``(d) State Matching Funds.--
            ``(1) In general.--Each State in which a city receiving 
        amounts from a grant under subsection (a) is located shall 
        provide amounts for each dollar allocated under subsection (a) 
        at a rate in accordance with the following formula:
      

                                                                        
                               .15(R)                                   
                             ----------                                 
                              1-.15(R)                                  

            ``(2) Determination of term `r'.--For purposes of paragraph 
        (1) (and subject to paragraph (5)), the term `R' (referred to 
        as the `State resource index') means the number equal to the 
        quotient of--
                    ``(A) the term `F', as determined under paragraph 
                (3); divided by
                    ``(B) the term `V', as determined under paragraph 
                (4).
            ``(3) Determination of term `f'.--
                    ``(A) For purposes of paragraph (2)(A), the term 
                `F' means the amount equal to the amount determined in 
                accordance with the following formula:

                                                                        
                                  Y                                     
                                ----                                    
                                  G                                     

                    ``(B) For purposes of subparagraph (A), the term 
                `G' means the sum of the respective terms `Y' 
                determined for the States under subparagraph (C).
                    ``(C) For purposes of subparagraph (A), the term 
                `Y' means the amount equal to the quotient of--
                            ``(i) an amount equal to the most recent 3-
                        year average of the total taxable resources of 
                        the State, as determined by the Secretary of 
                        the Treasury; divided by
                            ``(ii) the State cost index, as determined 
                        for such State under subparagraph (D).
                    ``(D) For purposes of subparagraph (C)(ii), the 
                term `State cost index' means the number equal to the 
                number determined in accordance with the following 
                formula:
      

                                                                        
                             .5 + .5(W)                                 

                    ``(E) For purposes of subparagraph (D), the term 
                `W' (referred to as the `State wage index') means the 
                amount equal to the quotient of--
                            ``(i) an amount equal to the most recent 3-
                        year average of the annual private industry 
                        wages per employee of the State, as determined 
                        by the Secretary of Labor; divided by
                            ``(ii) an amount equal to the most recent 
                        3-year average of the annual private industry 
                        wages per employee for the United States, as 
                        determined by the Secretary of Labor.
            ``(4) Determination of term `V'.--For purposes of paragraph 
        (2)(B), the term `V' means the amount equal to the quotient 
        of--
                    ``(A) the term `Z', which is equal to the total 
                population of the State, as determined by the Secretary 
                using the most recent data that is available from the 
                Secretary of Commerce pursuant to the decennial census 
                and pursuant to reasonable estimates by such Secretary 
                of changes occurring in the data in the ensuing period; 
                divided by
                    ``(B) an amount equal to the sum of the respective 
                terms `Z' determined for each of the States under 
                subparagraph (A).
            ``(5) Special rule.--In the case of a State for which the 
        rate determined under paragraph 1 is more than 25 cents per 
        dollar of amounts allocated under subsection (a), then such 
        rate shall be deemed to be equal to 25 cents per dollar.
    ``(e) Eligible Activities.--A city shall use amounts from a grant 
under subsection (a) only to--
            ``(1) provide financial incentives for business creation, 
        retention, and expansion in such city;
            ``(2) provide technical assistance to individuals seeking 
        to establish small businesses in such city; and
            ``(3) make improvements to the infrastructure of such city, 
        including--
                    ``(A) land clearing activities;
                    ``(B) the establishment of access roads, parking 
                lots, and industrial parks;
                    ``(C) assistance to demolish or renovate abandoned 
                buildings;
                    ``(D) improvements to sewage treatment plants; and
                    ``(E) environmental cleanup of contaminated sites 
                with significant potential for economic development for 
                commercial, residential, industrial, or recreational 
                purposes.
    ``(f) Prohibited Activities.--A city may not use amounts from a 
grant under subsection (a) to--
            ``(1) provide loans of any kind;
            ``(2) provide compensation to a city employee;
            ``(3) pay interest on a debt incurred by the city;
            ``(4) establish, promote, or retain a gambling activity;
            ``(5) repair, maintain, or construct residential housing;
            ``(6) provide transportation, meals, accommodations, petty 
        cash, personal items, and entertainment expenses to any 
        individual; and
            ``(7) provide for any other activity incompatible with the 
        grant program established under this section, as determined by 
        the Secretary.
    ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated $2,500,000,000 for fiscal year 1994, $4,000,000,000 for 
fiscal year 1995, and $5,000,000,000 for each of the fiscal years 1996 
through 1998, for the purpose of making allocations to eligible cities 
under subsection (a).''.

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