Housing and Community Development Act of 1992/Title VIII/Subtitle C

. COMMUNITY OUTREACH ACT.

 * (a) SHORT TITLE—
 * This section may be cited as the ``Community Outreach Partnership Act of 1992´´.


 * (b) PURPOSE—
 * The Secretary shall carry out, in accordance with this section, a 5-year demonstration program to determine the feasibility of facilitating partnerships between institutions of higher education and communities to solve urban problems through research, outreach, and the exchange of information.


 * (c) GRANT PROGRAM—
 * (1) IN GENERAL—
 * The Secretary is authorized to make grants to public and private nonprofit institutions of higher education to assist in establishing or carrying out research and outreach activities addressing the problems of urban areas.
 * (2) USE OF GRANTS—
 * Grants under this Act shall be used to establish and operate Community Outreach Partnership Centers (hereafter in this section referred to as `Centers´) which shall—
 * (A) conduct competent and qualified research and investigations on theoretical or practical problems in large and small cities; and
 * (B) facilitate partnerships and outreach activities between institutions of higher education, local communities, and local governments to address urban problems.
 * (3) SPECIFIC PROBLEMS—
 * Research and outreach activities assisted under this Act shall focus on problems associated with housing, economic development, neighborhood revitalization, infrastructure, health care, job training, education, crime prevention, planning, community organizing, and other areas deemed appropriate by the Secretary.


 * (d) APPLICATION—
 * Any public or private nonprofit institution of higher education may submit an application for a grant under this section in such form and containing such information as the Secretary may require by regulation.


 * (e) SELECTION CRITERIA—
 * (1) IN GENERAL—
 * The Secretary shall select recipients of grants under this section on the basis of the following criteria:
 * (A) The demonstrated research and outreach resources available to the applicant for carrying out the purposes of this section.
 * (B) The capability of the applicant to provide leadership in solving community problems and in making national contributions to solving long-term and immediate urban problems.
 * (C) The demonstrated commitment of the applicant to supporting urban research and outreach programs by providing matching contributions for any Federal assistance received.
 * (D) The demonstrated ability of the applicant to disseminate results of research and successful strategies developed through outreach activities to other Centers and communities served through the demonstration program.
 * (E) The projects and activities that the applicant proposes to carry out under the grant.
 * (F) The effectiveness of the applicant's strategy to provide outreach activities to communities.
 * (G) The extent of need in the communities to be served by the Centers.
 * (H) Other criteria deemed appropriate by the Secretary.
 * (2) PREFERENCE—
 * The Secretary shall give preference to institutions of higher education that undertake research and outreach activities by bringing together knowledge and expertise in the various social science and technical disciplines that relate to urban problems.


 * (f) FEDERAL SHARES—
 * The Federal share of a grant under this section shall not be more than—
 * (1) 50 percent of the cost of establishing and operating a Center's research activities; and
 * (2) 75 percent of the cost of establishing and operating a Center's outreach activities.


 * (g) NON-FEDERAL SHARES—
 * The non-Federal share of a grant may include cash, or the value of non-cash contributions, equipment, or other in-kind contributions deemed appropriate by the Secretary.


 * (h) RESPONSIBILITIES—
 * A Center established under this section shall—
 * (1) employ the research and outreach resources of its sponsoring institution of higher education to solve specific urban problems identified by communities served by the Center;
 * (2) establish outreach activities in areas identified in the grant application as the communities to be served;
 * (3) establish a community advisory committee comprised of representatives of local institutions and residents of the communities to be served to assist in identifying local needs and advise on the development and implementation of strategies to address those issues;
 * (4) coordinate outreach activities in communities to be served by the Center;
 * (5) facilitate public service projects in the communities served by the Center;
 * (6) act as a clearinghouse for the dissemination of information;
 * (7) develop instructional programs, convene conferences, and provide training for local community leaders, when appropriate; and
 * (8) exchange information with other Centers.


 * (i) NATIONAL ADVISORY COUNCIL—
 * (1) ESTABLISHMENT—
 * The Secretary shall establish a national advisory council (hereafter in this section referred to as the `council´) to—
 * (A) disseminate the results of research and outreach activities carried out under this section;
 * (B) act as a clearinghouse between grant recipients and other institutions of higher education; and
 * (C) review and evaluate programs carried out by grant recipients.
 * (2) MEMBERS—
 * The council shall be composed of 12 members to be appointed by the Secretary as follows—
 * (A) 3 representatives of State and local governments;
 * (B) 3 representatives of institutions of higher education that receive grants under this section;
 * (C) 3 individuals or representatives of organizations that possess significant expertise in urban issues; and
 * (D) 3 representatives from community advisory committees created pursuant to this section.
 * (3) VACANCIES—
 * A vacancy in the membership of the council shall be filled in the manner in which the original appointment was made.
 * (4) COMPENSATION—
 * Members of the council shall serve without pay.
 * (5) CHAIRMAN—
 * The council shall elect a member to serve as chairperson of the council.
 * (6) MEETINGS—
 * The council shall meet at least biannually and at such other times as the chairman may designate.


 * (j) NATIONAL CLEARINGHOUSE—
 * The Secretary shall establish a national clearinghouse to disseminate information resulting from the research and successful outreach activities developed through the Centers to grant recipients and other interested institutions of higher education.


 * (k) AUTHORIZATIONS—
 * The sums set aside by section 107 of the Housing and Community Development Act of 1974 for the purpose of this section shall be available—
 * (1) to enable Centers to carry out research and outreach activities;
 * (2) to establish and operate the national clearinghouse to be established under subsection (j).


 * (l) REPORTING—
 * (1) IN GENERAL—
 * The Secretary of Housing and Urban Development shall submit an annual report to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Banking, Finance and Urban Affairs of the House of Representatives.
 * (2) CONTENTS—
 * The report under paragraph (1) shall contain a summary of the activities carried out under this section during the preceding fiscal year, and findings and conclusions drawn from such activities.

. COMPUTERIZED DATABASE OF COMMUNITY DEVELOPMENT NEEDS.

 * (a) ESTABLISHMENT OF DEMONSTRATION PROGRAM—
 * Not later than the expiration of the 1-year period beginning on the date appropriations for the purposes of this section are made available, the Secretary of Housing and Urban Development (hereafter in this section referred to as the `Secretary') shall establish and implement a demonstration program to determine the feasibility of assisting States and units of general local government to develop methods, utilizing contemporary computer technology, to—
 * (1) monitor, inventory, and maintain current listings of the community development needs of the States and units of general local government; and
 * (2) coordinate strategies within States (especially among various units of general local government) for meeting such needs.


 * (b) INTEGRATED DATABASE SYSTEM AND COMPUTER MAPPING TOOL—
 * (1) DEVELOPMENT AND PURPOSES—
 * In carrying out the program under this section, the Secretary shall provide for the development of an integrated database system and computer mapping tool designed to efficiently (A) collect, store, process, and retrieve information relating to priority nonhousing community development needs within States, and (B) coordinate strategies for meeting such needs. The integrated database system and computer mapping tool shall be designed in a manner to coordinate and facilitate the preparation of community development plans under section 104(m)(1) of the Housing and Community Development Act of 1974 and to process any information necessary for such plans.
 * (2) AVAILABILITY TO STATES—
 * The Secretary shall make the integrated database system and computer mapping tool developed pursuant to this subsection available to States without charge.
 * (3) COORDINATION WITH EXISTING TECHNOLOGY—
 * The Secretary shall, to the extent practicable, utilize existing technologies and coordinate such activities with existing data systems to prevent duplication.


 * (c) TECHNICAL ASSISTANCE—
 * Under the program under this section, the Secretary shall provide consultation and advice to States and units of general local government regarding the capabilities and advantages of the integrated database system and computer mapping tool developed pursuant to subsection (b) and assistance in installing and using the database system and mapping tool.


 * (d) GRANTS—
 * (1) AUTHORITY AND PURPOSE—
 * The Secretary shall, to the extent amounts are made available under appropriation Acts pursuant to subsection (g), make grants to States for capital costs relating to installation and use of the integrated database system and computer mapping tool developed pursuant to subsection (b).
 * (2) LIMITATIONS—
 * The Secretary may not make more than one grant under this subsection to any single State. The Secretary may not make a grant under this subsection to any single State in an amount exceeding $1,000,000.
 * (3) APPLICATION AND SELECTION—
 * The Secretary shall provide for the form and manner of applications for grants under this subsection. The Secretary shall establish criteria for the selection of States which have submitted applications to receive grants under this section and shall select recipients according to such criteria, which shall give priority to States having, on a long-term basis (as determined by the Secretary), levels of unemployment above the national average level.


 * (e) STATE COORDINATION OF LOCAL NEEDS—
 * Each State that receives a grant under subsection (d) shall annually submit to the Secretary a report containing a summary of the priority nonhousing community development needs within the State.


 * (f) REPORTS BY SECRETARY—
 * The Secretary shall annually submit to the Committees on Banking, Finance and Urban Affairs of the House of Representatives and Banking, Housing, and Urban Affairs of the Senate, a report containing a summary of the information submitted for the year by States pursuant to subsection (e), which shall describe the priority nonhousing community development needs within such States.


 * (g) AUTHORIZATION OF APPROPRIATIONS—
 * There are authorized to be appropriated for each of the fiscal years 1993 and 1994, $10,000,000 to carry out the program established under this section.

. COMMUNITY INVESTMENT CORPORATION DEMONSTRATION.

 * (a) SHORT TITLE—
 * This section may be cited as the ``Community Investment Corporation Demonstration Act´´.


 * (b) COMMUNITY INVESTMENT CORPORATION DEMONSTRATION—
 * (1) FINDINGS—
 * The Congress finds that—
 * (A) the Nation's urban and rural communities face critical social and economic problems arising from lack of growth; growing numbers of low-income persons and persons living in poverty; lack of employment and other opportunities to improve the quality of life of these residents; and lack of capital for business located in, or seeking to locate in these communities;
 * (B) the future well-being of the United States and its residents depends on the restoration and maintenance of viable local economies, and will require increased public and private investment in low-income housing, business development, and economic and community development activities, and technical assistance to local organizations carrying out revitalization strategies;
 * (C) lack of expertise and technical capacity can significantly limit the ability of residents and local institutions to effectively carry out revitalization strategies;
 * (D) the Federal Government needs to develop new models for facilitating local revitalization activities;
 * (E) indigenous community-based financial institutions play a significant role in identifying and responding to community needs; and
 * (F) institutions, such as South Shore Bank (Chicago, Illinois), Southern Development Bancorporation (Arkadelphia, Arkansas), Center for Community Self Help (Durham, North Carolina), and Community Capital Bank (Brooklyn, New York), with a primary mission of promoting community development have proven their ability to promote revitalization and are appropriate models for restoring economic stability and growth in distressed communities and neighborhoods.
 * (2) PURPOSES—
 * The demonstration program carried out under this section shall—
 * (A) improve access to capital for initiatives which benefit residents and businesses in targeted geographic areas; and
 * (B) test new models for bringing credit and investment capital to targeted geographic areas and low-income persons in such areas through the provision of assistance for capital, development services, and technical assistance.
 * (3) DEFINITIONS—
 * As used in this section—
 * (A) the term `Federal financial supervisory agency´ means—
 * (i) the Comptroller of the Currency with respect to national banks;
 * (ii) the Board of Governors of the Federal Reserve System with respect to State-chartered banks which are members of the Federal Reserve System and bank holding companies;
 * (iii) the Federal Deposit Insurance Corporation with respect to State-chartered banks and savings banks which are not members of the Federal Reserve System and the deposits of which are insured by the Federal Deposit Insurance Corporation;
 * (iv) the National Credit Union Administration Board with respect to insured credit union associations; and
 * (v) the Office of Thrift Supervision with respect to insured savings associations and savings and loan holding companies that are not bank holding companies;
 * (B) the term `community investment corporation´ means an eligible organization selected by the Secretary to receive assistance pursuant to this section;
 * (C) the term `development services´ means activities that are consistent with the purposes of this section and which support and strengthen the lending and investment activities undertaken by eligible organizations including—
 * (i) the development of real estate;
 * (ii) administrative activities associated with the extension of credit or necessary to make an investment;
 * (iii) marketing and management assistance;
 * (iv) business planning and counseling services; and
 * (v) other capacity building activities which enable borrowers, prospective borrowers, or entities in which eligible organizations have invested, or expect to invest, to improve the likelihood of success of their activities;
 * (D) the term `eligible organization´ means an entity—
 * (i) that is organized as—
 * (I) a depository institution holding company as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813); or
 * (II) a nonprofit organization—
 * (aa) that is organized under State law;
 * (bb) has no part of its net earnings inuring to the benefit of any member, founder, contributor, or other person;
 * (cc) complies with standards of financial accountability acceptable to the Secretary; and
 * (dd) is affiliated with a nondepository lending institution; or is affiliated with a regulated financial institution but is not a subsidiary thereof;
 * (ii) that has as its primary mission the revitalization of a targeted geographic area;
 * (iii) that maintains, through significant representation on its governing board and otherwise, accountability to community residents;
 * (iv) that has principals active in the implementation of its programs who possess significant experience in lending and the development of affordable housing, small business development, or community revitalization;
 * (v) that directly or through a subsidiary or affiliate carries out development services; and
 * (vi) that will match any assistance received dollar-for-dollar with non-Federal sources of funds;
 * (E) the term `equity investment´ means a capital contribution through the purchase of nonvoting common stock or through equity grants or contributions to capital reserves or surplus, subject to terms and conditions satisfactory to the Secretary;
 * (F) the term `low-income person´ means a person in a family whose income does not exceed 80 percent of the median income for the area, as determined by the Secretary with adjustments for smaller and larger families;
 * (G) the term `regulated financial institution´ means an insured depository institution (as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813), or an insured credit union as defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1752));
 * (H) the term `Secretary´ means the Secretary of Housing and Urban Development;
 * (I) the term `targeted geographic area´ means a geographically contiguous area of chronic economic distress, as measured by unemployment, growth lag, poverty, lag in growth of per capita income, extent of blight and disinvestment, fiscal distress, or other indicators deemed appropriate by the Secretary, that has been identified by an eligible organization as the area to be served by it; and
 * (J) an entity is an `affiliate´ of another entity if the first entity controls, is controlled by, or is under common control with the other entity.
 * (4) SELECTION CRITERIA—
 * The Secretary shall select eligible organizations from among applications submitted to participate in the demonstration program, using selection criteria based on—
 * (A) the capacity of the eligible organizations to carry out the purposes of this section;
 * (B) the range and comprehensiveness of lending, investment strategies, and development services to be offered by the organizations directly or through subsidiaries and affiliates thereof;
 * (C) the types of activities to be pursued, including lending and development of small business, agriculture, industrial, commercial, or residential projects;
 * (D) the extent of need in the targeted geographic area to be served;
 * (E) the experience and background of the principals at each eligible organization responsible for carrying out the purposes of this section;
 * (F) the extent to which the eligible organizations directly or through subsidiaries and affiliates has successfully implemented other revitalization activities;
 * (G) an appropriate distribution of eligible organizations among regions of the United States; and
 * (H) other criteria determined to be appropriate by the Secretary and consistent with the purposes of this section.
 * (5) PROGRAM ASSISTANCE—
 * The Secretary shall—
 * (A) carry out, in accordance with this section, a program to improve access to capital and demonstrate the feasibility of facilitating the revitalization of targeted geographic areas by providing assistance to eligible organizations;
 * (B) accept applications from eligible organizations; and
 * (C) select eligible organizations to receive assistance pursuant to this section.
 * (6) ACTIVITIES REQUIRED—
 * All eligible organizations receiving assistance pursuant to this section are required to engage in activities that provide access to capital for initiatives which benefit residents and businesses in targeted geographic areas.
 * (7) CAPITAL ASSISTANCE—
 * (A) IN GENERAL—
 * (i) IN GENERAL—
 * The Secretary shall make grants and loans to eligible organizations.
 * (ii) LOANS—
 * Assistance provided to a depository institution holding company that is an eligible organization as defined in paragraph (3)(D)(i)(I) shall be in the form of a loan to be repaid to the Secretary. The terms and conditions of each loan shall be determined by the Secretary based on the ability of such entity to repay, except that interest shall accrue at the current Treasury rate for obligations of comparable maturity.
 * (iii) GRANTS OR LOANS—
 * Assistance provided to an eligible organization that is a nonprofit organization, as defined in paragraph (3)(D)(i)(II), may be in the form of a grant or a loan. If an eligible organization that is a nonprofit organization uses assistance that it received under this section to provide assistance to a for-profit entity, the assistance provided by the nonprofit organization must be in the form of a loan with interest to be repaid to the nonprofit organization and the nonprofit organization must use the proceeds of the loan for activities consistent with this section.
 * (B) ELIGIBLE ACTIVITIES—
 * Capital assistance may only be used to support the following activities that facilitate revitalization of targeted geographic areas or that provide economic opportunities for low-income persons—
 * (i) increasing the capital available for the purpose of making loans;
 * (ii) providing funds for equity investments in projects;
 * (iii) providing a portion of loan loss reserves of regulated financial institutions; and
 * (iv) providing credit enhancement.
 * (C) CAPITAL REQUIREMENTS—
 * Any investment derived from assistance provided by the Secretary and made by an eligible organization to a regulated financial institution shall not be included as an asset in calculating compliance with applicable capital standards. Such standards shall be satisfied from sources other than assistance provided under this section.
 * (D) AUTHORIZATION—
 * There are authorized to be appropriated to carry out this paragraph $25,000,000 for fiscal year 1993 and $26,000,000 for fiscal year 1994 to be used to provide capital assistance to eligible organizations. Funds appropriated pursuant to this subparagraph shall remain available until expended.
 * (8) DEVELOPMENT SERVICES AND TECHNICAL ASSISTANCE GRANTS—
 * (A) IN GENERAL—
 * The Secretary shall—
 * (i) provide grants or loans to eligible organizations for the provision of development services that support and contribute to the success of the mission of such organizations; and
 * (ii) provide, or contract to provide, technical assistance to eligible organizations to assist in establishing program activities that are consistent with the purposes of this section.
 * (B) AUTHORIZATION—
 * There are authorized to be appropriated to carry out this paragraph, $15,000,000 for fiscal year 1993 and $15,600,000 for fiscal year 1994. Funds appropriated pursuant to this subparagraph shall remain available until expended.
 * (9) TRAINING PROGRAM—
 * (A) IN GENERAL—
 * The Secretary shall establish, or contract to establish, an ongoing training program to assist eligible organizations and their staffs in developing the capacity to carry out the purposes of this section.
 * (B) AUTHORIZATION—
 * There are authorized to be appropriated to carry out this paragraph $2,000,000 for fiscal year 1993 and $2,100,000 for fiscal year 1994. Funds appropriated pursuant to this subparagraph shall remain available until expended.
 * (10) REPORTS—
 * The Secretary shall determine the appropriate reporting requirements with which eligible organizations receiving assistance under this section must comply.
 * (11) ADVISORY BOARD—
 * (A) IN GENERAL—
 * In establishing requirements to carry out the provisions of this section, and in considering applications under this section, the Secretary shall consult with an advisory board comprised of the following members:
 * (i) the Administrator of the Small Business Administration;
 * (ii) two representatives from among the Federal financial supervisory agencies who possess expertise in matters related to extending credit to persons in low-income communities;
 * (iii) two representatives of organizations that possess expertise in development of low-income housing;
 * (iv) two representatives of organizations that possess expertise in economic development;
 * (v) two representatives of organizations that possess expertise in small business development;
 * (vi) two representatives from organizations that possess expertise in the needs of low-income communities; and
 * (vii) two representatives from community investment corporations receiving assistance under this section.
 * (B) CHAIRPERSON—
 * The Board shall elect from among its members a chairperson who shall serve for a term of 2 years.
 * (C) TERMS—
 * The members shall serve for terms of 3 years which shall expire on a staggered basis.
 * (D) REIMBURSEMENT—
 * The members shall serve without additional compensation but shall be reimbursed for travel, per diem, and other necessary expenses incurred in the performance of their duties as members of the advisory board, in accordance with sections 5702 and 5703 of title 5, United States Code.
 * (E) DESIGNATED REPRESENTATIVES—
 * A member who is necessarily absent from a meeting of the board, or of a committee of the board, may participate in such meeting through a duly designated representative who is serving in the same agency or organization as the absent member.
 * (F) QUORUM—
 * The presence of a majority of members, or their representatives, shall constitute a quorum.
 * (12) EVALUATION AND REPORT—
 * The Secretary shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Banking, Finance and Urban Affairs of the House of Representatives an annual report containing a summary of the activities carried out under this section during the fiscal year and any preliminary findings or conclusions drawn from the demonstration program.
 * (13) NO BENEFIT RULE—
 * To the extent that assistance is provided to an eligible organization that is a depository institution holding company, the Secretary shall ensure, to the extent practicable, that such assistance does not inure to the benefit of directors, officers, employees and stockholders.
 * (14) REGULATIONS—
 * (A) The Secretary shall issue such regulations as may be necessary to carry out the provisions of this subsection.
 * (B) The appropriate Federal financial supervisory agency, by regulation or order—
 * (i) may restrict any regulated financial institution's receipt of an extension of credit from, or investment by, an eligible organization;
 * (ii) may restrict the making, by a regulated financial institution or holding company, of an extension of credit to, or investment in, an eligible organization; and
 * (iii) shall prohibit any transaction that poses an undue risk to the affected deposit insurance fund.
 * (C) To the extent practicable, the Secretary and the Federal financial supervisory agencies shall coordinate the development of regulations and other program guidelines.
 * (15) SAFETY AND SOUNDNESS OF INSURED DEPOSITORIES—
 * Nothing in this section shall limit the applicability of other law relating to the safe and sound operation and management of a regulated financial institution (or a holding company) affiliated with an eligible organization or receiving assistance provided under this section.
 * (16) EFFECTIVE DATE—
 * This section shall become effective 6 months from the date of enactment of this Act.

. EMERGENCY ASSISTANCE FOR LOS ANGELES.

 * (a) IN GENERAL—
 * Of the funds made available under 107(b) of the Housing and Community Development Act of 1974 for purposes of this section, $3,000,000 shall be made available to each of the following:
 * (1) A nonprofit community-based public benefit corporation which was created in response to the civil disturbances of April 29, 1992, through May 6, 1992, in Los Angeles, California, with the support of the Speaker of the California State Assembly and community elected officials representing the affected areas.
 * (2) A nonprofit public benefit corporation established by the Mayor of Los Angeles and the Governor of California.


 * (b) USE OF FUNDS—
 * Such funds shall be used to carry out a community revitalization strategy in areas for which the President, pursuant to title IV or V of the Robert T. Stafford Disaster Relief and Emergency Assistance Act, declared that a major disaster or emergency existed for the purposes of such Act, as a result of the civil disturbances involving acts of violence occurring on or after April 29, 1992, and before May 6, 1992.


 * (c) STRATEGY—
 * Such strategy shall—
 * (1) include efforts to create jobs in distressed neighborhoods, spur community-based economic development, improve housing accessibility and affordability, and address other community development needs; and
 * (2) be developed in consultation with low-income residents and community leaders in the distressed areas.


 * (d) ELIGIBLE ACTIVITIES—
 * Funds made available under this subsection may be used for eligible activities pursuant to section 105 of the Housing and Community Development Act of 1974 or to provide seed capital to nonprofit community development corporations to carry out the strategy developed in subsection (c)(2).


 * (e) MATCH REQUIRED—
 * Funds provided under this section shall be matched with private or public non-Federal funds in an amount not less than 50 percent of the funds provided under this section.