12 U.S.C. § 1701u — Economic opportunities for low- and

Page 472 TITLE 12—BANKS AND BANKING § 1701u 1 See References in Text note below. there should be the fullest practicable utiliza- tion of the resources and capabilities of private enterprise and of individual self-help techniques. (Pub. L. 90–448, § 2, Aug. 1, 1968, 82 Stat. 476.) Editorial Notes REFERENCES IN TEXT This Act, referred to in text, is Pub. L. 90–448, Aug. 1, 1968, 82 Stat. 476, known as the Housing and Urban Development Act of 1968. For complete classification of this Act to the Code, see Short Title of 1968 Amend- ments note set out under section 1701 of this title and Tables. CODIFICATION Section was enacted as part of the Housing and Urban Development Act of 1968, and not as part of the Na- tional Housing Act which comprises this chapter. Statutory Notes and Related Subsidiaries LIMITATION ON WITHHOLDING OR CONDITIONING OF ASSISTANCE Assistance provided for in Housing and Community Development Act of 1974, National Housing Act, United States Housing Act of 1937, Housing Act of 1949, Dem- onstration Cities and Metropolitan Development Act of 1966, and Housing and Urban Development Acts of 1965, 1968, [see Short Title notes set out under section 1701 of this title], 1969, and 1970 not to be withheld or made subject to conditions by reason of tax-exempt status of obligations issued or to be issued for financing of as- sistance, except as otherwise provided by law, see sec- tion 817 of Pub. L. 93–383, set out as a note under sec- tion 5301 of Title 42, The Public Health and Welfare. NATIONAL ADVISORY COMMISSION ON LOW INCOME HOUSING Pub. L. 90–448, title I, § 110, Aug. 1, 1968, 82 Stat. 497, established the National Advisory Commission on Low Income Housing; provided for the appointment of mem- bers and the filling of vacancies; fixed the quorum number and the number necessary to conduct hearings; provided that the Commission study ways of bringing safe and sanitary housing to low income families, uti- lize services of private research organizations, and co- ordinate its investigation with the Banking and Cur- rency Committees of the Senate and House; required that an interim report be submitted by July 1, 1969 and a final report by July 1, 1970; authorized the Commis- sion or a subcommittee to hold hearings and to admin- ister oaths and affirmations; directed executive branch departments, agencies, and instrumentalities to furnish information requested by the Commission; empowered the chairman, without regard to the provisions of Title 5, Government Organization and Employees, governing appointments in the competitive service and relating to classification and General Schedule pay rates, to ap- point and pay personnel as he deemed necessary and to procure temporary services, as is authorized by section 3109 of title 5, at rates up to $50 a day for individuals; provided that members appointed from the executive or legislative branch serve without compensation in addi- tion to that received in their regular employment but be reimbursed for travel, subsistence, and necessary ex- penses incurred while performing duties for the Com- mission and that members other than those appointed from the executive or legislative branches be paid $75 a day plus travel, subsistence, and other necessary ex- penses while acting as members of the Commission; and directed that the Commission cease to exist 30 days after its final report. § 1701u. Economic opportunities for low- and very low-income persons (a) Findings The Congress finds that— (1) Federal housing and community develop- ment programs provide State and local gov- ernments and other recipients of Federal fi- nancial assistance with substantial funds for projects and activities that produce signifi- cant employment and other economic opportu- nities; (2) low- and very low-income persons, espe- cially recipients of government assistance for housing, often have restricted access to em- ployment and other economic opportunities; (3) the employment and other economic op- portunities generated by projects and activi- ties that receive Federal housing and commu- nity development assistance offer an effective means of empowering low- and very low-in- come persons, particularly persons who are re- cipients of government assistance for housing; and (4) prior Federal efforts to direct employ- ment and other economic opportunities gen- erated by Federal housing and community de- velopment programs to low- and very low-in- come persons have not been fully effective and should be intensified. (b) Policy It is the policy of the Congress and the pur- pose of this section to ensure that the employ- ment and other economic opportunities gen- erated by Federal financial assistance for hous- ing and community development programs shall, to the greatest extent feasible, be directed toward low- and very low-income persons, par- ticularly those who are recipients of govern- ment assistance for housing. (c) Employment (1) Public and Indian housing program (A) In general The Secretary shall require that public and Indian housing agencies, and their con- tractors and subcontractors, make their best efforts, consistent with existing Federal, State, and local laws and regulations, to give to low- and very low-income persons the training and employment opportunities gen- erated by development assistance provided pursuant to section 1437c of title 42, oper- ating assistance provided pursuant to sec- tion 1437g of title 42, and modernization grants provided pursuant to section 1437l of title 42.1 (B) Priority The efforts required under subparagraph (A) shall be directed in the following order of priority: (i) To residents of the housing develop- ments for which the assistance is ex- pended. (ii) To residents of other developments managed by the public or Indian housing agency that is expending the assistance. (iii) To participants in YouthBuild pro- grams receiving assistance under section 3226 of title 29. (iv) To other low- and very low-income persons residing within the metropolitan Page 473 TITLE 12—BANKS AND BANKING § 1701u area (or nonmetropolitan county) in which the assistance is expended. (2) Other programs (A) In general In other programs that provide housing and community development assistance, the Secretary shall ensure that, to the greatest extent feasible, and consistent with existing Federal, State, and local laws and regula- tions, opportunities for training and employ- ment arising in connection with a housing rehabilitation (including reduction and abatement of lead-based paint hazards), housing construction, or other public con- struction project are given to low- and very low-income persons residing within the met- ropolitan area (or nonmetropolitan county) in which the project is located. (B) Priority Where feasible, priority should be given to low- and very low-income persons residing within the service area of the project or the neighborhood in which the project is located and to participants in YouthBuild programs receiving assistance under section 3226 of title 29. (d) Contracting (1) Public and Indian housing program (A) In general The Secretary shall require that public and Indian housing agencies, and their con- tractors and subcontractors, make their best efforts, consistent with existing Federal, State, and local laws and regulations, to award contracts for work to be performed in connection with development assistance pro- vided pursuant to section 1437c of title 42, operating assistance provided pursuant to section 1437g of title 42, and modernization grants provided pursuant to section 1437l of title 42,1 to business concerns that provide economic opportunities for low- and very low-income persons. (B) Priority The efforts required under subparagraph (A) shall be directed in the following order of priority: (i) To business concerns that provide economic opportunities for residents of the housing development for which the assist- ance is provided. (ii) To business concerns that provide economic opportunities for residents of other housing developments operated by the public and Indian housing agency that is providing the assistance. (iii) To YouthBuild programs receiving assistance under section 3226 of title 29. (iv) To business concerns that provide economic opportunities for low- and very low-income persons residing within the metropolitan area (or nonmetropolitan county) in which the assistance is pro- vided. (2) Other programs (A) In general In providing housing and community de- velopment assistance pursuant to other pro- grams, the Secretary shall ensure that, to the greatest extent feasible, and consistent with existing Federal, State, and local laws and regulations, contracts awarded for work to be performed in connection with a hous- ing rehabilitation (including reduction and abatement of lead-based paint hazards), housing construction, or other public con- struction project are given to business con- cerns that provide economic opportunities for low- and very low-income persons resid- ing within the metropolitan area (or non- metropolitan county) in which the assist- ance is expended. (B) Priority Where feasible, priority should be given to business concerns which provide economic opportunities for low- and very low-income persons residing within the service area of the project or the neighborhood in which the project is located and to YouthBuild pro- grams receiving assistance under section 3226 of title 29. (e) Definitions For the purposes of this section the following definitions shall apply: (1) Low- and very low-income persons The terms ‘‘low-income persons’’ and ‘‘very low-income persons’’ have the same meanings given the terms ‘‘low-income families’’ and ‘‘very low-income families’’, respectively, in section 1437a(b)(2) of title 42. (2) Business concern that provides economic opportunities The term ‘‘a business concern that provides economic opportunities’’ means a business concern that— (A) provides economic opportunities for a class of persons that has a majority control- ling interest in the business; (B) employs a substantial number of such persons; or (C) meets such other criteria as the Sec- retary may establish. (f) Coordination with other Federal agencies The Secretary shall consult with the Sec- retary of Labor, the Secretary of Health and Human Services, the Secretary of Commerce, the Administrator of the Small Business Admin- istration, and such other Federal agencies as the Secretary determines are necessary to carry out this section. (g) Regulations Not later than 180 days after October 28, 1992, the Secretary shall promulgate regulations to implement this section. (Pub. L. 90–448, § 3, Aug. 1, 1968, 82 Stat. 476; Pub. L. 91–152, title IV, § 404, Dec. 24, 1969, 83 Stat. 395; Pub. L. 93–383, title I, § 118, Aug. 22, 1974, 88 Stat. 653; Pub. L. 96–399, title III, § 329, Oct. 8, 1980, 94 Stat. 1651; Pub. L. 102–550, title IX, § 915, Oct. 28, 1992, 106 Stat. 3878; Pub. L. 109–281, § 2(d)(1), Sept. 22, 2006, 120 Stat. 1181; Pub. L. 113–128, title V, § 512(p), July 22, 2014, 128 Stat. 1711.) Page 474 TITLE 12—BANKS AND BANKING § 1701v Editorial Notes REFERENCES IN TEXT Section 1437l of title 42, referred to in subsecs. (c)(1)(A) and (d)(1)(A), was repealed by Pub. L. 105–276, title V, § 522(a), Oct. 21, 1998, 112 Stat. 2564. CODIFICATION Section was enacted as part of the Housing and Urban Development Act of 1968, and not as part of the Na- tional Housing Act which comprises this chapter. October 28, 1992, referred to in subsec. (g), was in the original ‘‘the date of enactment of the National Afford- able Housing Act Amendments of 1992’’, and was trans- lated as meaning the date of enactment of the Housing and Community Development Act of 1992, Pub. L. 102–550, which amended this section generally, to re- flect the probable intent of Congress. AMENDMENTS 2014—Subsec. (c)(1)(B)(iii). Pub. L. 113–128, § 512(p)(1)(A), substituted ‘‘participants in YouthBuild programs receiving assistance under section 3226 of title 29’’ for ‘‘participants in YouthBuild programs re- ceiving assistance under section 2918a of title 29’’. Subsec. (c)(2)(B). Pub. L. 113–128, § 512(p)(1)(B), sub- stituted ‘‘participants in YouthBuild programs receiv- ing assistance under section 3226 of title 29’’ for ‘‘par- ticipants in YouthBuild programs receiving assistance under section 2918a of title 29’’. Subsec. (d)(1)(B)(iii). Pub. L. 113–128, § 512(p)(2)(A), substituted ‘‘To YouthBuild programs receiving assist- ance under section 3226 of title 29’’ for ‘‘To YouthBuild programs receiving assistance under section 2918a of title 29’’. Subsec. (d)(2)(B). Pub. L. 113–128, § 512(p)(2)(B), sub- stituted ‘‘to YouthBuild programs receiving assistance under section 3226 of title 29’’ for ‘‘to YouthBuild pro- grams receiving assistance under section 2918a of title 29’’. 2006—Subsecs. (c)(1)(B)(iii), (2)(B), (d)(1)(B)(iii), (2)(B). Pub. L. 109–281 substituted ‘‘YouthBuild programs re- ceiving assistance under section 2918a of title 29’’ for ‘‘Youthbuild programs receiving assistance under sub- title D of title IV of the Cranston-Gonzalez National Affordable Housing Act’’. 1992—Pub. L. 102–550 amended section generally. Prior to amendment, section read as follows: ‘‘In the admin- istration by the Secretary of Housing and Urban Devel- opment of programs providing direct financial assist- ance, including community development block grants under title I of the Housing and Community Develop- ment Act of 1974, in aid of housing, urban planning, de- velopment, redevelopment, or renewal, public or com- munity facilities, and new community development, the Secretary shall— ‘‘(1) require, in consultation with the Secretary of Labor, that to the greatest extent feasible opportuni- ties for training and employment arising in connec- tion with the planning and carrying out of any project assisted under any such program be given to lower income persons residing within the unit of local government or the metropolitan area (or non- metropolitan county), as determined by the Sec- retary, in which the project is located; and ‘‘(2) require, in consultation with the Adminis- trator of the Small Business Administration, that to the greatest extent feasible contracts for work to be performed in connection with any such project be awarded to business concerns, including but not lim- ited to individuals or firms doing business in the field of planning, consulting, design, architecture, building construction, rehabilitation, maintenance or repair, which are located in or owned in substantial part by persons residing in the same metropolitan area (or nonmetropolitan county) as the project.’’ 1980—Par. (1). Pub. L. 96–399, § 329(1), substituted ‘‘re- siding within the unit of local government or the met- ropolitan area (or nonmetropolitan county), as deter- mined by the Secretary, in which the project is lo- cated’’ for ‘‘residing in the area of such project’’. Par. (2). Pub. L. 96–399, § 329(2), substituted ‘‘residing in the same metropolitan area (or nonmetropolitan county) as the project’’ for ‘‘residing in the area of such project’’. 1974—Pub. L. 93–383 inserted reference to community development block grants under title I of the Housing and Community Development Act of 1974. 1969—Pub. L. 91–152 substituted provisions making ap- plicable programs providing direct financial assistance in aid of housing, urban planning, development, rede- velopment, or renewal, public or community facilities, and new community development, for provisions mak- ing applicable programs authorized by sections 1715l(d)(3), 1715z, and 1715z–1 of this title, the low-rent public housing program under the United States Hous- ing Act of 1937, and the rent supplement program under section 101 of the Housing and Urban Development Act of 1965. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2014 AMENDMENT Amendment by Pub. L. 113–128 effective on the first day of the first full program year after July 22, 2014 (July 1, 2015), see section 506 of Pub. L. 113–128, set out as an Effective Date note under section 3101 of Title 29, Labor. EFFECTIVE DATE OF 2006 AMENDMENT Pub. L. 109–281, § 2(f), Sept. 22, 2006, 120 Stat. 1182, pro- vided that: ‘‘This section [enacting former section 2918a of Title 29, Labor, amending this section, section 4183 of Title 25, Indians, former section 2939 of Title 29, and section 12870 of Title 42, The Public Health and Welfare, and repealing sections 12899 to 12899i of Title 42] and the amendments made by this section take effect on the earlier of— ‘‘(1) the date of enactment of this Act [Sept. 22, 2006]; and ‘‘(2) September 30, 2006.’’ EFFECTIVENESS STUDY Pub. L. 102–550, title IX, § 916, Oct. 28, 1992, 106 Stat. 3881, provided that the Secretary of Housing and Urban Development should submit to Congress no later than 1 year after Oct. 28, 1992, a report describing efforts to enforce this section and the costs and barriers to full implementation of this section, coupled with legisla- tive recommendations. § 1701v. Congressional findings and declaration for improved architectural design in Govern- ment housing programs The Congress finds that Federal aids to hous- ing have not contributed fully to improvement in architectural standards. This objective has been contemplated in Federal housing legisla- tion since the establishment of mortgage insur- ance through the Federal Housing Administra- tion. The Congress commends the Department of Housing and Urban Development for its recent efforts to improve architectural standards through competitive design awards and in other ways but at the same time recognizes that this important objective requires high priority if Federal aid is to make its full communitywide contribution toward improving our urban envi- ronment. The Congress further finds that even within the necessary budget limitations on housing for low and moderate income families architectural design could be improved not only to make the