[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8026 Introduced in House (IH)]
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118th CONGRESS
2d Session
H. R. 8026
To modernize the formulas for allocation of Community Development Block
Grant Program grants for entitlement communities to more effectively
target such amounts for community development needs, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 16, 2024
Mr. Kustoff (for himself and Mr. Hill) introduced the following bill;
which was referred to the Committee on Financial Services
_______________________________________________________________________
A BILL
To modernize the formulas for allocation of Community Development Block
Grant Program grants for entitlement communities to more effectively
target such amounts for community development needs, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``CDBG Modernization Act of 2024''.
SEC. 2. INITIAL STUDY AND REPORT.
(a) Study.--Not later than the expiration of the 12-month period
beginning on the date of the enactment of this Act, the Secretary of
Housing and Urban Development (in this Act referred to as the
``Secretary'') shall conduct a study to--
(1) analyze and assess the effectiveness of the formulas
under paragraphs (1) through (3) of section 106(b) of the
Housing and Community Development Act of 1974 (42 U.S.C.
5306(b)) Act, and the factors used in such formulas, including
the use of the age of housing factor (as such term is defined
in section 102(a) of such Act (42 U.S.C. 5302(a))), in
effectively targeting funding under the Community Development
Block Grant Program (in this Act referred to as the
``Program'') for community development needs and in carrying
out the purposes of such program under section 101 of such Act
(42 U.S.C. 5301); and
(2) develop revised and updated formulas for use under
paragraphs (1) through (3) of such section 106(b), or updated
factors for use in such formulas, that--
(A) more effectively target funding under the
Community Development Block Grant Program for community
development needs;
(B) eliminate any funding inequities that use of
such age of housing factor has contributed to under the
Program;
(C) include an element that provides for re-
evaluation to maintain effective targeting for
community development needs of grantees over time and
adjusts funding in accordance with such changing needs;
and
(D) more effectively carry out the purposes of the
Program under section 101 of such Act.
(b) Report.--Not later than the expiration of the period referred
to in subsection (a) of this section, the Secretary shall submit a
report to the Congress that--
(1) describes the study conducted pursuant to subsection
(a) and sets forth any findings and conclusions of such study;
(2) sets forth the revised and updated formulas or factors
developed pursuant to subsection (a)(2) and to be used under
section 106(b) of such Act, as amended by section 3 of this
Act;
(3) specifies how such revised and updated formulas or
factors shall be counted for purposes of section 106(b)(3) of
the Housing and Community Development Act of 1974;
(4) identifies how the use of the age of housing factor has
contributed to inequities in effectively targeting funding
under the Program to community development needs of grantees;
and
(5) compares the effects of using such revised and updated
formulas or factors to the effects of applying paragraphs
(1)(B) and (2)(B) of section 106(b) of the Housing and
Community Development Act of 1974, as in effect on the date of
the enactment of this Act, to determine which grantees are
over-subsidized or under-subsidized with respect to community
development needs.
SEC. 3. SUBSEQUENT STUDIES AND REPORTS.
(a) Subsequent Studies.--Not later than the expiration of each
successive 10-year period after the expiration of the period referred
to in section 2(a), the Secretary shall conduct a study to--
(1) analyze and assess the effectiveness of the revised and
updated formulas or factors set forth pursuant to section
2(b)(2) of this Act in effectively targeting funding under the
Community Development Block Grant Program (in this Act referred
to as the ``Program'') for community development needs and in
carrying out the purposes of such program under section 101 of
such Act (42 U.S.C. 5301); and
(2) develop recommendations regarding revisions and updates
to such formulas and factors that--
(A) more effectively target funding under the
Community Development Block Grant Program for community
development needs;
(B) include an element that provides for re-
evaluation to maintain effective targeting for
community development needs of grantees over time and
adjusts funding in accordance with such changing needs;
and
(C) more effectively carry out the purposes of the
Program under section 101 of such Act.
(b) Reports.--Not later than the expiration of each applicable 10-
year period referred to in subsection (a) of this section, the
Secretary shall submit a report to the Congress that--
(1) describes the study conducted pursuant to subsection
(a) for such period and sets forth any findings and conclusions
of such study;
(2) sets forth the recommended revisions and updates
developed pursuant to subsection (a)(2);
(3) specifies how such recommended revisions and updates
should be counted for purposes of section 106(b)(3) of the
Housing and Community Development Act of 1974; and
(4) compares the effects of using such recommended
revisions and updates to the effects of applying paragraphs
(1)(B) and (2)(B) of section 106(b) of the Housing and
Community Development Act of 1974, as then in effect, to
determine which grantees are over-subsidized or under-
subsidized with respect to community development needs.
SEC. 4. APPLICABILITY OF NEW FORMULAS OR FACTORS.
(a) Amendment to 1974 Act.--Subsection (b) of section 106 of the
Housing and Community Development Act of 1974 (42 U.S.C. 5306(b)) is
amended by striking the subsection designation and all that follows
through the end of paragraph (3) and inserting the following:
``(b)(1) The Secretary shall determine the amount to be allocated
to each metropolitan city in accordance with the revised and updated
formulas or factors set forth pursuant to section 2(b)(2) of the CDBG
Modernization Act of 2024 in the report pursuant to such section 2(b).
``(2) The Secretary shall determine the amount to be allocated to
each urban county in accordance with the revised and updated formulas
or factors set forth pursuant to section 2(b)(2) of the CDBG
Modernization Act of 2024 in the report pursuant to such section 2(b).
``(3) In determining the amount to be allocated each metropolitan
city and urban county, the Secretary shall count each revised and
updated formula or factor as provided in the report pursuant to section
2(b) of the CDBG Modernization Act of 2024.''.
(b) Phase-In.--Notwithstanding any other provision of law, the
Secretary shall adjust any allocations for metropolitan cities and
urban counties made pursuant to section 106 of the Housing and
Community Development Act of 1974 (42 U.S.C. 5306) for any of the first
5 fiscal years commencing after the date of the enactment of this Act
to provide for phase-in of the effects from the amendments made by this
Act and to allow such entitlement entities to adjust their budgets
accordingly.
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