42 U.S.C. § 5304 — Statement of activities and review

**(a) Statement of objectives and projected use of funds by grantee prerequisite to receipt of grant; publication of proposals by grantees; notice and comment; citizen participation plan** (1) Prior to the receipt in any fiscal year of a grant under [section 5306(b) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section5306/b&num=0&edition=prelim) by any metropolitan city or urban county, under [section 5306(d) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section5306/d&num=0&edition=prelim) by any State, under [section 5306(d)(2)(B) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section5306/d/2/B&num=0&edition=prelim) by any unit of general local government, or under [section 5306(a)(3) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section5306/a/3&num=0&edition=prelim) by any insular area, the grantee shall have prepared a final statement of community development objectives and projected use of funds and shall have provided the Secretary with the certifications required in subsection (b) and, where appropriate, subsection (c). In the case of metropolitan cities and urban counties receiving grants pursuant to [section 5306(b) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section5306/b&num=0&edition=prelim), units of general local government receiving grants pursuant to [section 5306(d)(2)(B) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section5306/d/2/B&num=0&edition=prelim), and insular areas receiving grants pursuant to [section 5306(a)(3) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section5306/a/3&num=0&edition=prelim), the statement of projected use of funds shall consist of proposed community development activities. In the case of States receiving grants pursuant to [section 5306(d) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section5306/d&num=0&edition=prelim), the statement of projected use of funds shall consist of the method by which the States will distribute funds to units of general local government. (2) In order to permit public examination and appraisal of such statements, to enhance the public accountability of grantees, and to facilitate coordination of activities with different levels of government, the grantee shall in a timely manner— (A) furnish citizens or, as appropriate, units of general local government information concerning the amount of funds available for proposed community development and housing activities and the range of activities that may be undertaken, including the estimated amount proposed to be used for activities that will benefit persons of low and moderate income and the plans of the grantee for minimizing displacement of persons as a result of activities assisted with such funds and to assist persons actually displaced as a result of such activities; (B) publish a proposed statement in such manner to afford affected citizens or, as appropriate, units of general local government an opportunity to examine its content and to submit comments on the proposed statement and on the community development performance of the grantee; (C) hold one or more public hearings to obtain the views of citizens on community development and housing needs; (D) provide citizens or, as appropriate, units of general local government with reasonable access to records regarding the past use of funds received under [section 5306 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section5306&num=0&edition=prelim) by the grantee; and (E) provide citizens or, as appropriate, units of general local government with reasonable notice of, and opportunity to comment on, any substantial change proposed to be made in the use of funds received under [section 5306 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section5306&num=0&edition=prelim) from one eligible activity to another or in the method of distribution of such funds. In preparing the final statement, the grantee shall consider any such comments and views and may, if deemed appropriate by the grantee, modify the proposed statement. The final statement shall be made available to the public, and a copy shall be furnished to the Secretary together with the certifications required under subsection (b) and, where appropriate, subsection (c). Any final statement of activities may be modified or amended from time to time by the grantee in accordance with the same procedures required in this paragraph for the preparation and submission of such statement. (3) A grant under [section 5306 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section5306&num=0&edition=prelim) may be made only if the grantee certifies that it is following a detailed citizen participation plan which— (A) provides for and encourages citizen participation, with particular emphasis on participation by persons of low and moderate income who are residents of slum and blight areas and of areas in which section 106 [[42 U.S.C. 5306](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section5306&num=0&edition=prelim)] funds are proposed to be used, and in the case of a grantee described in [section 5306(a) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section5306/a&num=0&edition=prelim), provides for participation of residents in low and moderate income neighborhoods as defined by the local jurisdiction; (B) provides citizens with reasonable and timely access to local meetings, information, and records relating to the grantee’s proposed use of funds, as required by regulations of the Secretary, and relating to the actual use of funds under this chapter; (C) provides for technical assistance to groups representative of persons of low and moderate income that request such assistance in developing proposals with the level and type of assistance to be determined by the grantee; (D) provides for public hearings to obtain citizen views and to respond to proposals and questions at all stages of the community development program, including at least the development of needs, the review of proposed activities, and review of program performance, which hearings shall be held after adequate notice, at times and locations convenient to potential or actual beneficiaries, and with accommodation for the handicapped; (E) provides for a timely written answer to written complaints and grievances, within 15 working days where practicable; and (F) identifies how the needs of non-English speaking residents will be met in the case of public hearings where a significant number of non-English speaking residents can be reasonably expected to participate. This paragraph may not be construed to restrict the responsibility or authority of the grantee for the development and execution of its community development program. **(b) Certification of enumerated criteria by grantee to Secretary** Any grant under [section 5306 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section5306&num=0&edition=prelim) shall be made only if the grantee certifies to the satisfaction of the Secretary that— (1) the grantee is in full compliance with the requirements of subsection (a)(2)(A), (B), and (C) and has made the final statement available to the public; (2) the grant will be conducted and administered in conformity with the Civil Rights Act of 1964 [[42 U.S.C. 2000a](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section2000a&num=0&edition=prelim) et seq.] and the Fair Housing Act [[42 U.S.C. 3601](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section3601&num=0&edition=prelim) et seq.], and the grantee will affirmatively further fair housing; (3) the projected use of funds has been developed so as to give maximum feasible priority to activities which will benefit low- and moderate-income families or aid in the prevention or elimination of slums or blight, and the projected use of funds may also include activities which the grantee certifies are designed to meet other community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community where other financial resources are not available to meet such needs, except that (A) the aggregate use of funds received under [section 5306 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section5306&num=0&edition=prelim) and, if applicable, as a result of a guarantee or a grant under [section 5308 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section5308&num=0&edition=prelim), during a period specified by the grantee of not more than 3 years, shall principally benefit persons of low and moderate income in a manner that ensures that not less than 70 percent of such funds are used for activities that benefit such persons during such period; and (B) a grantee that borders on the Great Lakes and that experiences significant adverse financial and physical effects due to lakefront erosion or flooding may include in the projected use of funds activities that are clearly designed to alleviate the threat posed, and rectify the damage caused, by such erosion or flooding if such activities will principally benefit persons of low and moderate income and the grantee certifies that such activities are necessary to meet other needs having a particular urgency; (4) it has developed a community development plan pursuant to subsection (m), for the period specified by the grantee under paragraph (3), that identifies community development needs and specifies both short- and long-term community development objectives that have been developed in accordance with the primary objective and requirements of this chapter; (5) the grantee will not attempt to recover any capital costs of public improvements assisted in whole or part under [section 5306 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section5306&num=0&edition=prelim) or with amounts resulting from a guarantee under [section 5308 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section5308&num=0&edition=prelim) by assessing any amount against properties owned and occupied by persons of low and moderate income, including any fee charged or assessment made as a condition of obtaining access to such public improvements, unless (A) funds received under [section 5306 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section5306&num=0&edition=prelim) are used to pay the proportion of such fee or assessment that relates to the capital costs of such public improvements that are financed from revenue sources other than under this chapter; or (B) for purposes of assessing any amount against properties owned and occupied by persons of moderate income, the grantee certifies to the Secretary that it lacks sufficient funds received under [section 5306 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section5306&num=0&edition=prelim) to comply with the requirements of subparagraph (A); and (6) the grantee will comply with the other provisions of this chapter and with other applicable laws. **(c) Special certifications required for certain grants** A grant may be made under [section 5306(b) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section5306/b&num=0&edition=prelim) only if the unit of general local government certifies that it is following— (1) a current housing affordability strategy which has been approved by the Secretary in accordance with [section 12705 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section12705&num=0&edition=prelim), or (2) a housing assistance plan which was approved by the Secretary during the 180-day period beginning on November 28, 1990, or during such longer period as may be prescribed by the Secretary in any case for good cause. **(d) Residential antidisplacement and relocation assistance plan; certification of adherence; contents** (1) A grant under section 5306 or 5318 of this title may be made only if the grantee certifies that it is following a residential antidisplacement and relocation assistance plan. A grantee receiving a grant under [section 5306(a) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section5306/a&num=0&edition=prelim) or [section 5318 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section5318&num=0&edition=prelim) shall so certify to the Secretary. A unit of general local government receiving amounts from a State under [section 5306(d) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section5306/d&num=0&edition=prelim) shall so certify to the State, and a unit of general local government receiving amounts from the Secretary under [section 5306(d) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section5306/d&num=0&edition=prelim) shall so certify to the Secretary. (2) The residential antidisplacement and relocation assistance plan shall in connection with a development project assisted under section 5306 or 5318 of this title— (A) in the event of such displacement, provide that— (i) governmental agencies or private developers shall provide within the same community comparable replacement dwellings for the same number of occupants as could have been housed in the occupied and vacant occupiable low and moderate income dwelling units demolished or converted to a use other than for housing for low and moderate income persons, and provide that such replacement housing may include existing housing assisted with project based assistance provided under [section 1437f of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section1437f&num=0&edition=prelim); (ii) such comparable replacement dwellings shall be designed to remain affordable to persons of low and moderate income for 10 years from the time of initial occupancy; (iii) relocation benefits shall be provided for all low or moderate income persons who occupied housing demolished or converted to a use other than for low or moderate income housing, including reimbursement for actual and reasonable moving expenses, security deposits, credit checks, and other moving-related expenses, including any interim living costs; and in the case of displaced persons of low and moderate income, provide either— (I) compensation sufficient to ensure that, for a 5-year period, the displaced families shall not bear, after relocation, a ratio of shelter costs to income that exceeds 30 percent; or (II) if elected by a family, a lump-sum payment equal to the capitalized value of the benefits available under subclause (I) to permit the household to secure participation in a housing cooperative or mutual housing association; and (iv) persons displaced shall be relocated into comparable replacement housing that is— (I) decent, safe, and sanitary; (II) adequate in size to accommodate the occupants; (III) functionally equivalent; and (IV) in an area not subject to unreasonably adverse environmental conditions; (B) provide that persons displaced shall have the right to elect, as an alternative to the benefits under this subsection, to receive benefits under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 ([42 U.S.C. 4601](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section4601&num=0&edition=prelim) et seq.) if such persons determine that it is in their best interest to do so; and (C) provide that where a claim for assistance under subparagraph (A)(iv) is denied by a grantee, the claimant may appeal to the Secretary in the case of a grant under section 5306 or 5318 of this title or to the appropriate State official in the case of a grant under [section 5306(d) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section5306/d&num=0&edition=prelim), and that the decision of the Secretary or the State official shall be final unless a court determines the decision was arbitrary and capricious. (3) Paragraphs (2)(A)(i) and (2)(A)(ii) shall not apply in any case in which the Secretary finds, on the basis of objective data, that there is available in the area an adequate supply of habitable affordable housing for low and moderate income persons. A determination under this paragraph is final and nonreviewable. **(e) Submission of performance and evaluation report by grantee to Secretary; contents; availability for citizen comment; annual review and audit by Secretary of program implementation; adjustments in amount of annual grants** Each grantee shall submit to the Secretary, at a time determined by the Secretary, a performance and evaluation report concerning the use of funds made available under [section 5306 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section5306&num=0&edition=prelim), together with an assessment by the grantee of the relationship of such use to the objectives identified in the grantee’s statement under subsection (a) and to the requirements of subsection (b)(3). Such report shall also be made available to the citizens in each grantee’s jurisdiction in sufficient time to permit such citizens to comment on such report prior to its submission, and in such manner and at such times as the grantee may determine. The grantee’s report shall indicate its programmatic accomplishments, the nature of and reasons for changes in the grantee’s program objectives, indications of how the grantee would change its programs as a result of its experiences, and an evaluation of the extent to which its funds were used for activities that benefited low- and moderate-income persons. The report shall include a summary of any comments received by the grantee from citizens in its jurisdiction respecting its program. The Secretary shall encourage and assist national associations of grantees eligible under [section 5306(d)(2)(B) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section5306/d/2/B&num=0&edition=prelim), national associations of States, and national associations of units of general local government in nonentitlement areas to develop and recommend to the Secretary, within one year after November 30, 1983, uniform recordkeeping, performance reporting, and evaluation reporting, and auditing requirements for such grantees, States, and units of general local government, respectively. Based on the Secretary’s approval of these recommendations, the Secretary shall establish such requirements for use by such grantees, States, and units of general local government. The Secretary shall, at least on an annual basis, make such reviews and audits as may be necessary or appropriate to determine— (1) in the case of grants made under subsection (a)(3), (b), or (d)(2)(B) of [section 5306 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section5306&num=0&edition=prelim), whether the grantee has carried out its activities and, where applicable, its housing assistance plan in a timely manner, whether the grantee has carried out those activities and its certifications in accordance with the requirements and the primary objectives of this chapter and with other applicable laws, and whether the grantee has a continuing capacity to carry out those activities in a timely manner; and (2) in the case of grants to States made under [section 5306(d) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section5306/d&num=0&edition=prelim), whether the State has distributed funds to units of general local government in a timely manner and in conformance to the method of distribution described in its statement, whether the State has carried out its certifications in compliance with the requirements of this chapter and other applicable laws, and whether the State has made such reviews and audits of the units of general local government as may be necessary or appropriate to determine whether they have satisfied the applicable performance criteria described in paragraph (1) of this subsection. The Secretary may make appropriate adjustments in the amount of the annual grants in accordance with the Secretary’s findings under this subsection. With respect to assistance made available to units of general local government under [section 5306(d) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section5306/d&num=0&edition=prelim), the Secretary may adjust, reduce, or withdraw such assistance, or take other action as appropriate in accordance with the Secretary’s reviews and audits under this subsection, except that funds already expended on eligible activities under this chapter shall not be recaptured or deducted from future assistance to such units of general local government. **(f) Audit of grantees by Government Accountability Office; access to books, accounts, records, etc., by representatives of Government Accountability Office** Insofar as they relate to funds provided under this chapter, the financial transactions of recipients of such funds may be audited by the Government Accountability Office under such rules and regulations as may be prescribed by the Comptroller General of the United States. The representatives of the Government Accountability Office shall have access to all books, accounts, records, reports, files, and other papers, things, or property belonging to or in use by such recipients pertaining to such financial transactions and necessary to facilitate the audit. **(g) Environmental protection measures applicable for release of funds to applicants for projects; issuance of regulations by Secretary subsequent to consultation with Council on Environmental Quality; request and certification to Secretary for approval of release of funds; form, contents and effect of certification** (1) In order to assure that the policies of the National Environmental Policy Act of 1969 [[42 U.S.C. 4321](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section4321&num=0&edition=prelim) et seq.] and other provisions of law which further the purposes of such Act (as specified in regulations issued by the Secretary) are most effectively implemented in connection with the expenditure of funds under this chapter, and to assure to the public undiminished protection of the environment, the Secretary, in lieu of the environmental protection procedures otherwise applicable, may under regulations provide for the release of funds for particular projects to recipients of assistance under this chapter who assume all of the responsibilities for environmental review, decisionmaking, and action pursuant to such Act, and such other provisions of law as the regulations of the Secretary specify, that would apply to the Secretary were he to undertake such projects as Federal projects. The Secretary shall issue regulations to carry out this subsection only after consultation with the Council on Environmental Quality. (2) The Secretary shall approve the release of funds for projects subject to the procedures authorized by this subsection only if, at least fifteen days prior to such approval and prior to any commitment of funds to such projects other than for purposes authorized by [section 5305(a)(12) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section5305/a/12&num=0&edition=prelim) or for environmental studies, the recipient of assistance under this chapter has submitted to the Secretary a request for such release accompanied by a certification which meets the requirements of paragraph (3). The Secretary’s approval of any such certification shall be deemed to satisfy his responsibilities under the National Environmental Policy Act of 1969 [[42 U.S.C. 4321](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section4321&num=0&edition=prelim) et seq.] and such other provisions of law as the regulations of the Secretary specify insofar as those responsibilities relate to the releases of funds for projects to be carried out pursuant thereto which are covered by such certification. (3) A certification under the procedures authorized by this subsection shall— (A) be in a form acceptable to the Secretary, (B) be executed by the chief executive officer or other officer of the recipient of assistance under this chapter qualified under regulations of the Secretary, (C) specify that the recipient of assistance under this chapter has fully carried out its responsibilities as described under paragraph (1) of this subsection, and (D) specify that the certifying officer (i) consents to assume the status of a responsible Federal official under the National Environmental Policy Act of 1969 [[42 U.S.C. 4321](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section4321&num=0&edition=prelim) et seq.] and each provision of law specified in regulations issued by the Secretary insofar as the provisions of such Act or other such provision of law apply pursuant to paragraph (1) of this subsection, and (ii) is authorized and consents on behalf of the recipient of assistance under this chapter and himself to accept the jurisdiction of the Federal courts for the purpose of enforcement of his responsibilities as such an official. (4) In the case of grants made to States pursuant to [section 5306(d) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section5306/d&num=0&edition=prelim), the State shall perform those actions of the Secretary described in paragraph (2) and the performance of such actions shall be deemed to satisfy the Secretary’s responsibilities referred to in the second sentence of such paragraph. **(h) Payments; revolving loan fund: establishment in private financial institution for rehabilitation activities; standards for payments: criteria** (1) Units of general local government receiving assistance under this chapter may receive funds, in one payment, in an amount not to exceed the total amount designated in the grant (or, in the case of a unit of general local government receiving a distribution from a State pursuant to [section 5306(d) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section5306/d&num=0&edition=prelim), not to exceed the total amount of such distribution) for use in establishing a revolving loan fund which is to be established in a private financial institution and which is to be used to finance rehabilitation activities assisted under this chapter. Rehabilitation activities authorized under this section shall begin within 45 days after receipt of such payment and substantial disbursements from such fund must begin within 180 days after receipt of such payment. (2) The Secretary shall establish standards for such cash payments which will insure that the deposits result in appropriate benefits in support of the recipient’s rehabilitation program. These standards shall be designed to assure that the benefits to be derived from the local program include, at a minimum, one or more of the following elements, or such other criteria as determined by the Secretary— (A) leverage of community development block grant funds so that participating financial institutions commit private funds for loans in the rehabilitation program in amounts substantially in excess of deposit of community development funds; (B) commitment of private funds for rehabilitation loans at below-market interest rates or with repayment periods lengthened or at higher risk than would normally be taken; (C) provision of administrative services in support of the rehabilitation program by the participating lending institutions; and (D) interest earned on such cash deposits shall be used in a manner which supports the community rehabilitation program. **(i) Metropolitan city as part of urban county** In any case in which a metropolitan city is located, in whole or in part, within an urban county, the Secretary may, upon the joint request of such city and county, approve the inclusion of the metropolitan city as part of the urban county for purposes of submitting a statement under subsection (a) and carrying out activities under this chapter. **(j) Retention of program income; condition of distribution** Notwithstanding any other provision of law, any unit of general local government may retain any program income that is realized from any grant made by the Secretary, or any amount distributed by a State, under [section 5306 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section5306&num=0&edition=prelim) if (1) such income was realized after the initial disbursement of the funds received by such unit of general local government under such section; and (2) such unit of general local government has agreed that it will utilize the program income for eligible community development activities in accordance with the provisions of this chapter; except that the Secretary may, by regulation, exclude from consideration as program income any amounts determined to be so small that compliance with this subsection creates an unreasonable administrative burden on the unit of general local government. A State may require as a condition of any amount distributed by such State under [section 5306(d) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section5306/d&num=0&edition=prelim) that a unit of general local government shall pay to such State any such income to be used by such State to fund additional eligible community development activities, except that such State shall waive such condition to the extent such income is applied to continue the activity from which such income was derived. **(k) Provision of benefits to displaced persons** Each grantee shall provide for reasonable benefits to any person involuntarily and permanently displaced as a result of the use of assistance received under this chapter to acquire or substantially rehabilitate property. **(l) Protection of individuals engaging in nonviolent civil rights demonstrations** No funds authorized to be appropriated under [section 5303 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section5303&num=0&edition=prelim) may be obligated or expended to any unit of general local government that— (1) fails to adopt and enforce a policy prohibiting the use of excessive force by law enforcement agencies within its jurisdiction against any individuals engaged in nonviolent civil rights demonstrations; or (2) fails to adopt and enforce a policy of enforcing applicable State and local laws against physically barring entrance to or exit from a facility or location which is the subject of such nonviolent civil rights demonstration within its jurisdiction. **(m) Community development plans** (1) **In general** — Prior to the receipt in any fiscal year of a grant from the Secretary under subsection (a)(2),(b), (d)(1), or (d)(2)(B) of [section 5306 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section5306&num=0&edition=prelim), each recipient shall have prepared and submitted in accordance with this subsection and in such standardized form as the Secretary shall, by regulation, prescribe a description of its priority nonhousing community development needs eligible for assistance under this chapter. (2) **Local governments** — In the case of a recipient that is a unit of general local government other than an insular area— (A) prior to the submission required by paragraph (1), the recipient shall, to the extent practicable, notify adjacent units of general local government and solicit the views of citizens on priority nonhousing community development needs; and (B) the description required under paragraph (1) shall be submitted to the Secretary, the State, and any other unit of general local government within which the recipient is located, in such standardized form as the Secretary shall, by regulation, prescribe. (3) **States** — In the case of a recipient that is a State, the description required by paragraph (1)— (A) shall include only the needs within the State that affect more than one unit of general local government and involve activities typically funded by such States under this chapter; and (B) shall be submitted to the Secretary in such standard form as the Secretary, by regulation, shall prescribe. (4) **Effect of submission** — A submission under this subsection shall not be binding with respect to the use or distribution of amounts received under [section 5306 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section5306&num=0&edition=prelim).