<?xml version="1.0"?>
<?xml-stylesheet type="text/xsl" href="billres.xsl"?>
<!DOCTYPE bill PUBLIC "-//US Congress//DTDs/bill.dtd//EN" "bill.dtd">
<bill bill-stage="Introduced-in-House" dms-id="H07099FA33C174B79BD53922D5EAC5E0A" public-private="public" key="H" bill-type="olc"><metadata xmlns:dc="http://purl.org/dc/elements/1.1/">
<dublinCore>
<dc:title>117 HR 7868 IH: CDBG Modernization Act of 2022</dc:title>
<dc:publisher>U.S. House of Representatives</dc:publisher>
<dc:date>2022-05-24</dc:date>
<dc:format>text/xml</dc:format>
<dc:language>EN</dc:language>
<dc:rights>Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.</dc:rights>
</dublinCore>
</metadata>
<form>
<distribution-code display="yes">I</distribution-code><congress display="yes">117th CONGRESS</congress><session display="yes">2d Session</session><legis-num display="yes">H. R. 7868</legis-num><current-chamber>IN THE HOUSE OF REPRESENTATIVES</current-chamber><action display="yes"><action-date date="20220524">May 24, 2022</action-date><action-desc><sponsor name-id="K000392">Mr. Kustoff</sponsor> (for himself and <cosponsor name-id="H001072">Mr. Hill</cosponsor>) introduced the following bill; which was referred to the <committee-name committee-id="HBA00">Committee on Financial Services</committee-name></action-desc></action><legis-type>A BILL</legis-type><official-title display="yes">To modernize the formulas for allocation of Community Development Block Grant Program grants for entitlement communities to more effectively target such amounts for community development needs, and for other purposes.</official-title></form><legis-body id="H6AC412A1BD0A49C28BDDEF060EE3F805" style="OLC"><section id="H323DDC5D64A44861A4F7E1F27948AC20" section-type="section-one"><enum>1.</enum><header>Short title</header><text display-inline="no-display-inline">This Act may be cited as the <quote><short-title>CDBG Modernization Act of 2022</short-title></quote>.</text></section><section id="H2F8C863D2E55477FB8B745B5ED469864" section-type="subsequent-section"><enum>2.</enum><header>Initial study and report</header><subsection id="H6DDA7B0729F847FD8BC715AD70E90CDD"><enum>(a)</enum><header>Study</header><text display-inline="yes-display-inline">Not later than the expiration of the 12-month period beginning on the date of the enactment of this Act, the Secretary of Housing and Urban Development (in this Act referred to as the <quote>Secretary</quote>) shall conduct a study to—</text><paragraph id="H945700D0DB78439094D2CEDE78410BF6"><enum>(1)</enum><text display-inline="yes-display-inline">analyze and assess the effectiveness of the formulas under paragraphs (1) through (3) of section 106(b) of the Housing and Community Development Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/42/5306">42 U.S.C. 5306(b)</external-xref>) Act, and the factors used in such formulas, including the use of the age of housing factor (as such term is defined in section 102(a) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/42/5302">42 U.S.C. 5302(a)</external-xref>)), in effectively targeting funding under the Community Development Block Grant Program (in this Act referred to as the <quote>Program</quote>) for community development needs and in carrying out the purposes of such program under section 101 of such Act (<external-xref legal-doc="usc" parsable-cite="usc/42/5301">42 U.S.C. 5301</external-xref>); and</text></paragraph><paragraph id="HEE36DDA5CAB749F0A0360A694329BD71"><enum>(2)</enum><text display-inline="yes-display-inline">develop revised and updated formulas for use under paragraphs (1) through (3) of such section 106(b), or updated factors for use in such formulas, that—</text><subparagraph id="HC80F71A15AD74BF1A670D80B799C9DAF"><enum>(A)</enum><text>more effectively target funding under the Community Development Block Grant Program for community development needs;</text></subparagraph><subparagraph id="H744C4FD8103942568A1CE94541AB7444"><enum>(B)</enum><text display-inline="yes-display-inline">eliminate any funding inequities that use of such age of housing factor has contributed to under the Program;</text></subparagraph><subparagraph id="H6347ADA7B13C47568736C296DEA688AB"><enum>(C)</enum><text display-inline="yes-display-inline">include an element that provides for re-evaluation to maintain effective targeting for community development needs of grantees over time and adjusts funding in accordance with such changing needs; and</text></subparagraph><subparagraph id="HD0D0961106734884B23D4CE36B66DB06"><enum>(D)</enum><text>more effectively carry out the purposes of the Program under section 101 of such Act.</text></subparagraph></paragraph></subsection><subsection id="H33B1CD51CED74BE6A56D8AC624D51145" display-inline="no-display-inline"><enum>(b)</enum><header>Report</header><text display-inline="yes-display-inline">Not later than the expiration of the period referred to in subsection (a) of this section, the Secretary shall submit a report to the Congress that—</text><paragraph id="HBDCE80D8BABF47DBBCDCF7D1A9BD93DF"><enum>(1)</enum><text>describes the study conducted pursuant to subsection (a) and sets forth any findings and conclusions of such study;</text></paragraph><paragraph id="HDA670CDE61244BF9B0AE13FA46A14392"><enum>(2)</enum><text>sets forth the revised and updated formulas or factors developed pursuant to subsection (a)(2) and to be used under section 106(b) of such Act, as amended by section 3 of this Act;</text></paragraph><paragraph id="HA36B60AF61624D43A3BEAA9D7920AD19"><enum>(3)</enum><text display-inline="yes-display-inline">specifies how such revised and updated formulas or factors shall be counted for purposes of section 106(b)(3) of the Housing and Community Development Act of 1974;</text></paragraph><paragraph id="H31A0796812474947939245FF064D01FC"><enum>(4)</enum><text display-inline="yes-display-inline">identifies how the use of the age of housing factor has contributed to inequities in effectively targeting funding under the Program to community development needs of grantees; and</text></paragraph><paragraph id="HAC23F0C324ED4155AA146B6C72C876D7"><enum>(5)</enum><text display-inline="yes-display-inline">compares the effects of using such revised and updated formulas or factors to the effects of applying paragraphs (1)(B) and (2)(B) of section 106(b) of the Housing and Community Development Act of 1974, as in effect on the date of the enactment of this Act, to determine which grantees are over-subsidized or under-subsidized with respect to community development needs.</text></paragraph></subsection></section><section id="H3D988DC4065A4F9AAFD668522FC6BACF"><enum>3.</enum><header>Subsequent studies and reports</header><subsection id="H424C36F0D38D40E1864E256FD3056EF8"><enum>(a)</enum><header>Subsequent studies</header><text display-inline="yes-display-inline">Not later than the expiration of each successive 10-year period after the expiration of the period referred to in section 2(a), the Secretary shall conduct a study to—</text><paragraph id="H5C5CA346220140A79E71DFAB715BEA06"><enum>(1)</enum><text display-inline="yes-display-inline">analyze and assess the effectiveness of the revised and updated formulas or factors set forth pursuant to section 2(b)(2) of this Act in effectively targeting funding under the Community Development Block Grant Program (in this Act referred to as the <quote>Program</quote>) for community development needs and in carrying out the purposes of such program under section 101 of such Act (<external-xref legal-doc="usc" parsable-cite="usc/42/5301">42 U.S.C. 5301</external-xref>); and</text></paragraph><paragraph id="HE574DA8CCA7144FB99A78ACD28956EAF"><enum>(2)</enum><text display-inline="yes-display-inline">develop recommendations regarding revisions and updates to such formulas and factors that—</text><subparagraph id="H290606C21BFE4BCC8CAEAE2ED4071412"><enum>(A)</enum><text>more effectively target funding under the Community Development Block Grant Program for community development needs;</text></subparagraph><subparagraph id="HA1C137CFD53C423D92BB36831DB31D26"><enum>(B)</enum><text display-inline="yes-display-inline">include an element that provides for re-evaluation to maintain effective targeting for community development needs of grantees over time and adjusts funding in accordance with such changing needs; and</text></subparagraph><subparagraph id="HE882BE55151F4BDD873C06A889DAC2B4"><enum>(C)</enum><text>more effectively carry out the purposes of the Program under section 101 of such Act.</text></subparagraph></paragraph></subsection><subsection id="H0259CF5BE3C44CA5A29150541A80BFB7" display-inline="no-display-inline"><enum>(b)</enum><header>Reports</header><text display-inline="yes-display-inline">Not later than the expiration of each applicable 10-year period referred to in subsection (a) of this section, the Secretary shall submit a report to the Congress that—</text><paragraph id="HE6923276055C49CCA4CF211D31288C39"><enum>(1)</enum><text>describes the study conducted pursuant to subsection (a) for such period and sets forth any findings and conclusions of such study;</text></paragraph><paragraph id="H327057AE362345F99B3C9C6D3D4F84BA"><enum>(2)</enum><text display-inline="yes-display-inline">sets forth the recommended revisions and updates developed pursuant to subsection (a)(2);</text></paragraph><paragraph id="HC26408A69A2F464097BA1CA16579BC30"><enum>(3)</enum><text display-inline="yes-display-inline">specifies how such recommended revisions and updates should be counted for purposes of section 106(b)(3) of the Housing and Community Development Act of 1974; and</text></paragraph><paragraph id="H7F17F46D49B24379A5EF9F8A67FA19B5"><enum>(4)</enum><text display-inline="yes-display-inline">compares the effects of using such recommended revisions and updates to the effects of applying paragraphs (1)(B) and (2)(B) of section 106(b) of the Housing and Community Development Act of 1974, as then in effect, to determine which grantees are over-subsidized or under-subsidized with respect to community development needs.</text></paragraph></subsection></section><section id="H7C1361446FA640ABB00FE1C4D1CA4756"><enum>4.</enum><header>Applicability of new formulas or factors</header><subsection id="HE1DECF57C8CA4AB687A3B77CE43BC750"><enum>(a)</enum><header>Amendment to 1974 Act</header><text display-inline="yes-display-inline">Subsection (b) of section 106 of the Housing and Community Development Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/42/5306">42 U.S.C. 5306(b)</external-xref>) is amended by striking the subsection designation and all that follows through the end of paragraph (3) and inserting the following:</text><quoted-block style="OLC" id="HCB61DBEFA1D446F3A0A91527D9483415" display-inline="no-display-inline"><subsection id="H63FC3936EF4E4D57A35B745A0184AF7B"><enum>(b)</enum><paragraph commented="no" display-inline="yes-display-inline" id="H7D72FC0BA20B4C68BFDC4B3BC1467EF5"><enum>(1)</enum><text display-inline="yes-display-inline">The Secretary shall determine the amount to be allocated to each metropolitan city in accordance with the revised and updated formulas or factors set forth pursuant to section 2(b)(2) of the <short-title>CDBG Modernization Act of 2022</short-title> in the report pursuant to such section 2(b).</text></paragraph><paragraph id="HBA54B716486943E289651F4D8F064D82" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">The Secretary shall determine the amount to be allocated to each urban county in accordance with the revised and updated formulas or factors set forth pursuant to section 2(b)(2) of the <short-title>CDBG Modernization Act of 2022</short-title> in the report pursuant to such section 2(b).</text></paragraph><paragraph id="HE0A14BC0DEC04CBDAF2B775A7F814EDD" indent="up1"><enum>(3)</enum><text display-inline="yes-display-inline">In determining the amount to be allocated each metropolitan city and urban county, the Secretary shall count each revised and updated formula or factor as provided in the report pursuant to section 2(b) of the <short-title>CDBG Modernization Act of 2022</short-title>.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H649939F95A804D90A1B1FD75E2E99A84"><enum>(b)</enum><header>Phase-In</header><text>Notwithstanding any other provision of law, the Secretary shall adjust any allocations for metropolitan cities and urban counties made pursuant to section 106 of the Housing and Community Development Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/42/5306">42 U.S.C. 5306</external-xref>) for any of the first 5 fiscal years commencing after the date of the enactment of this Act to provide for phase-in of the effects from the amendments made by this Act and to allow such entitlement entities to adjust their budgets accordingly.</text></subsection></section></legis-body></bill> 

