§ 701

XCERPTS FROM HOUSING AND URBAN DEVELOPMENT ACT OF 1965

[Public Law 89-117, 79 Stat. 451, 489; 42 U.S.C. 3101]

TITLE VII-COMMUNITY FACILITIES

PURPOSE

SEC. 701. The purpose of this title is to assist and encourage the ›mmunities of the Nation fully to meet the needs of their citizens y making it possible, with Federal grant assistance, for their governental bodies (1) to construct adequate basic water and sewer facilities eeded to promote the efficient and orderly growth and development of ir communities, (2) to construct neighborhood facilities needed to able them to carry on programs of necessary social services, and 3) to acquire, in a planned and orderly fashion, land to be utilized the future for public purposes.1

GRANTS FOR BASIC WATER AND SEWER FACILITIES

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SEC. 702. (a) The Secretary of Housing and Urban Development hereinafter in this title referred to as the "Secretary") is authored to make grants to local public bodies and agencies to finance ecific projects for basic public water facilities (including works for e storage, treatment, purification, and distribution of water), and or basic public sewer facilities (other than "treatment works" as efined in the Federal Water Pollution Control Act 3): Provided, hat no grant shall be made under this section for any sewer facilities less the Secretary of Health, Education, and Welfare certifies to e Secretary that any waste material carried by such facilities will be dequately treated before it is discharged into any public waterway o as to meet applicable Federal, State, interstate, or local water ality standards.

(b) The amount of any grant made under the authority of this ction shall not exceed 50 per centum of the development cost of the roject: Provided, That in the case of a community having a populaon of less than ten thousand, according to the most recent decennial nsus, which is situated within a metropolitan area, the Secretary

Sec. 603, Housing and Urban Development Act of 1968, Public Law 90-448, approved g. 1, 1968, 82 Stat. 476, 533, substituted "in the future for public purposes" for "in nnection with the future construction of public works and facilities".

Sec. 22, Public Law 90-19, approved May 25, 1967, 81 Stat. 17, 26, substituted "Secrey of Housing and Urban Development" and "Secretary" for "Housing and Home Finance Iministrator" and "Administrator" throughout this title in order to make it conform to e Department of Housing and Urban Development Act which placed all the functions of Housing and Home Finance Administrator in the Secretary of Housing and Urban -velopment.

"Treatment works" is defined in the Federal Water Pollution Control Act as "the rious devices used in the treatment of sewage or industrial wastes of a liquid nature, luding the necessary intercepting sewers, outfall sewers, pumping, power, and other uipment, and their appurtenances, and includes any extensions, improvements, remodel2. additions, and alterations thereof" (33 U.S.C. 466j).

The functions of the Secretary of Health, Education, and Welfare under sec. 702(a) -re transferred to the Secretary of the Interior by Reorganization Plan No. 2 of 1966, ective May 10, 1966.

may increase the amount of a grant for a basic public water or 1 sewer facility assisted under this section to not more than 90 per centum of the development cost of such facility, if the community is unable to finance the construction of such facility without the increased grant authorized under this subsection, and if in such community (1) there does not exist a public or other adequate water or sewer facility which serves a substantial portion of the inhabitants of the community, and (2) the rate of unemployment is, and has been continuously for the preceding calendar year, 100 per centum above the national average: And provided further, That the limitations and restrictions contained in subsection (c) of this section shall not be applicable to any community applying for an increased grant under this subsection.

(c) No grant shall be made under this section in connection with any project unless the Secretary determines that the project is necessary to provide adequate water or sewer facilities for, and will contribute to the improvement of the health or living standards of, the people in the community to be served, and that the project is (1) designed so that an adequate capacity will be available to serve the reasonably foreseeable growth needs of the area; (2) consistent with a program meeting criteria, established by the Secretary, for a unified or officially coordinated areawide water or sewer facilities system as part of the comprehensively planned development of the area, except that prior to June 30, 19742 grants may, in the discretion of the Secretary, be made under this section when such a program for an areawide water and sewer facilities system is under active preparation, although not yet completed, if the facility or facilities for which assistance is sought can reasonably be expected to be required as a part of such program, and there is urgent need for the facility or facilities; and (3) necessary to orderly community development.

(d) In the administration of this section, the Secretary shall require that, to the greatest extent practicable, new job opportunities be provided for unemployed or underemployed persons in connection with projects the financing of which is assisted under this section.

GRANTS FOR NEIGHBORHOOD FACILITIES

SEC. 703. (a) In accordance with the provisions of this section, the Secretary is authorized to make grants to any local public body or agency to assist in financing specific projects for neighborhood facili ties. Any such project may be undertaken by such body or agency

1 Sec. 604 (b), Housing and Urban Development Act of 1968, Public Law 90-448, approved Aug. 1, 1968, 82 Stat. 476, 534, added "water or".

Sec. 6 of Public Law 92-213, approved December 22, 1971, 85 Stat. 775, 776, substi tuted "June 30, 1972" for "October 1, 1971", and sec. 7 of Public Law 92-335, approved July 1, 1972, 86 Stat. 405, substituted "September 30, 1972" for "June 30, 1972". Previous to this extension, Section 3 (c), Emergency Community Facilities Act of 1970, Public La 91-431, effective without the President's signature, October 6, 1970, 84 Stat. 886. substi tuted October 1, 1971" for "October 1, 1970"; sec. 604 (a), Housing and Urban Develop ment Act of 1968, Public Law 90-448, approved August 1, 1968, 82 Stat. 476, 534, subst tuted "October 1, 1969" for "July 1, 1968" and sec. 305 (a), Housing and Urban Develop ment Act of 1969, Public Law 91-152, approved December 24, 1969, 83 Stat. 379, 391, substituted "October 1, 1970" for "October 1, 1969" Sec. 9 of Public Law 93-117. & Stat. 421, approved October 2, 1973, substituted "June 30, 1974", for "September 30, 1972". & Sec. 604 (c), Housing and Urban Development Act of 1968, Public Law 90-448, ap proved Aug. 1, 1988, 82 Stat. 476, 534, added subsection (d).

rectly or through a nonprofit organization by it: Provided, That o grant shall be provided under this section for any project to be ndertaken through a nonprofit organization unless the Secretary dermines (1) that such organization has or will have the legal, finanal, and technical capacity to carry out the project, and (2) that the ublic body or agency to which the grant is made will have satisfactory ontinuing control over the use of the proposed facilities.

(b) The amount of any grant made under the authority of this secon shall not exceed 662% per centum of the development cost of the roject for which the grant is made (or 75 per centum of such cost in he case of a project located in an area which at the time the grant is ade is designated as a redevelopment area under the Area Redevelopent Act or any Act supplementary thereto).1

(c) No grant shall be made under this section for any project unless e Secretary determines that the project will provide a neighborhood cility which is (1) necessary for carrying out a program of health, creational, social, or similar community service (including a comunity action program approved under title II of the Economic Oportunity Act of 1964)2 in the area, (2) consistent with comprehensive lanning for the development of the community, and (3) so located as › be available for use by a significant portion (or number in the case f large urban places) of the area's low- or moderate-income residents. (d) For a period of twenty years after a grant has been made under is section for a neighborhood facility, such facility shall not, without e approval of the Secretary, be converted to uses other than those roposed by the applicant in its application for a grant. The Secretary hall not approve any conversion in the use of such a neighborhood acility during such twenty-year period unless he finds that such conersion is in accordance with the then applicable program of health, ecreational, social, or similar community services in the area and onsistent with comprehensive planning for the development of the ommunity in which the facility is located. In approving any such onversion, the Secretary may impose such additional conditions and equirements as he deems necessary.

(e) The Secretary shall give priority to applications for projects esigned primarily to benefit members of low-income families or othervise substantially further the objectives of a community action proram approved under title II of the Economic Opportunity Act of

964.

ADVANCE ACQUISITION OF LAND

SEC. 704. (a) In order to encourage and assist the timely acquisition f land planned to be utilized in the future 3 for public purposes, the Secretary is authorized to make grants to States and local public odies and agencies to assist in financing the acquisition of a fee simple state or other interest in such land.

See Public Works and Economic Development Act of 1965.

242 U.S.C. 2781.

Sec. 603, Housing and Urban Development Act of 1968, Public Law 90-488, approved Aug. 1, 1968, 82 Stat. 476, 533, substituted "in the future for public purposes" for "in connection with the future construction of public works or facilities".

Sec. 603, Housing and Urban Development Act of 1968, Public Law 90-448, approved Aug. 1, 1968, 82 Stat. 476, 533, added "to States".

(b) The amount of any grant made under this section shall not exceed the aggregate amount of reasonable interest charges on the loans or other financial obligations incurred to finance the acquisition of such land for a period not in excess of the lesser of (1) five years from the date of acquisition of such land or (2) the period of time between the date on which the land was acquired and the date its use began for the purpose for which it was acquired: Provided, That where all or any portion of the cost of such land is not financed through borrowings, the amount of the grant shall be computed on the basis of the aggregate amount of reasonable interest charges that the Secretary determines would have been required.

(c) No grant shall be made under this section unless the Secretary determines that the land will be utilized for a public purpose within s reasonable period of time and that such utilization will contribute to economy, efficiency, and the comprehensively planned development of the area. The Secretary shall in all cases require that land acquired with the assistance of a grant under this section be utilized for a public purpose within five years after the date on which a contract to make such grant is entered into, unless the Secretary (1) determines that due to unusual circumstances a longer period of time is necessary and in the public interest, and (2) reports such determination promptly to the Committees on Banking and Currency of the Senate and House of Representatives.

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(d) No land acquired with assistance under this section shall, with out approval of the Secretary, be diverted from the purpose originally approved. The Secretary shall approve no such diversion unless he finds that the diversion is in accord with the then applicable comprehensive plan for the area. In cases of a diversion of land to other than a public purpose, the Secretary may require repayment of the grant, or substitution of land of approximately equal fair market value, which ever he deems appropriate. An interim use of the land for a public or private purpose in accordance with standards prescribed by the Secre tary, or approved by him, shall not constitute a diversion within the meaning of this subsection.

(e) Notwithstanding any other provision of law, no project for which land is acquired with assistance under this section shall, solely

1 Prior to amendment by sec. 603. Housing and Urban Development Act of 1968, Puble Law 90-448, approved Aug. 1, 1968, 82 Stat. 476, 533, this subsection read as follows: "The amount of any grant made under the authority of this section shall not exceed the aggregate amount of reasonable interest charges on the loan or other financial obligation incurred to finance the acquisition of such land for a period not exceeding the lesser of (1) five years from the date such loan was made or such financial obligation was incurred or (2) the period of time between the date such loan was made or such financial obligati was incurred and the date construction is begun on the public work or facility for which the land acquired was planned to be utilized."

Prior to amendment by sec. 603, Housing and Urban Development Act of 1968. Publie Law 90-448, approved Aug. 1, 1968, 82 Stat. 476, 533, subsection (c) read as follows: grant shall be made under this section for any project for the acquisition of land unless the Secretary determines that the public work or facility for which such land is to be uti ized is planned to be constructed or initiated within a reasonable period of time (not to exceed five years after a contract to make such grant is entered into) and that constree tion of such public work or facility will contribute to economy, efficiency, and the com prehensively planned development of the area.

Prior to amendment by sec. 603, Housing and Urban Development Act of 1968, Publi Law 90-448, approved Aug. 1, 1968, 82 Stat. 476, 533, subsection (d) read as follows: "A a condition to providing assistance under this section, the Secretary may, under terms conditions prescribed by him, require an applicant to agree to repay such assistance, if (1) the land purchased with such assistance is not utilized within five years after the agree ment is entered into in connection with the construction of the public work or facility for which such land was acquirea, or (2) such land is diverted to other uses." See also subsection (c).

Sec. 603, Housing and Urban Development Act of 1968, Public Law 90-448, approved Aug. 1, 1968, 82 Stat. 476, 533, added subsection (e).

s a result of such advance acquisition, be considered ineligible for the purpose of any other Federal loan or grant program, and the amount f the purchase price paid for the land by the recipient of a grant under this section may be considered an eligible cost for the purpose of such other Federal loan or grant program.

GENERAL PROVISIONS

SEC. 705. (a) In the performance of, and with respect to, the funcions, powers, and duties vested in him by this title, the Secretary hall (in addition to any authority otherwise vested in him) have the Functions, powers, and duties set forth in section 402, except subsections (a), (c) (2), and (f) of the Housing Act of 1950.

(b) The Secretary is authorized, notwithstanding the provisions of section 3648 of the Revised Statutes, to make advance or progress Dayments on account of any grant made pursuant to this title. No part of any grant authorized to be made by the provisions of this itle shall be used for the payment of ordinary governmental operating Expenses.

DEFINITIONS

SEC. 706. As used in this title

(a) The term "State" means the several States, the District of Columbia, the Commonwealth of Puerto Rico, and the territories and possessions of the United States.

(b) The term "local public bodies and agencies" includes public corporate bodies or political subdivisions; public agencies or instrunentalities of one or more States, municipalities, or political subdivisions of one or more States (including public agencies and instrunentalities of one or more municipalities or other political subdivisions of one or more States); Indian tribes; and boards or commissions established under the laws of any State to finance specific capital mprovement projects.

(c) The term "development cost" means the cost of constructing the facility and of acquiring the land on which it is located, including necessary site improvements to permit its use as a site for the facility.

LABOR STANDARDS

SEC. 707. All laborers and mechanics employed by contractors or subcontractors on projects assisted under sections 702 and 703 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. 276a276a-5). No such project shall be approved without first obtaining adequate assurance that these labor standards will be maintained upon the construction work. The Secretary of Labor shall have, with respect to the labor standards specified in this section, the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (15 F.R. 3176; 64 Stat. 1267; 5 U.S.C. 133z-15), and section 2 of the Act of June 13, 1934, as amended (48 Stat. 948; 40 U.S.C. 276c).