§ 1701u. — Economic opportunities for low and very lowincome persons.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC1701u]
TITLE 12--BANKS AND BANKING
CHAPTER 13--NATIONAL HOUSING
Sec. 1701u. Economic opportunities for low- and very low-income
persons
(a) Findings
The Congress finds that--
(1) Federal housing and community development programs provide
State and local governments and other recipients of Federal
financial assistance with substantial funds for projects and
activities that produce significant employment and other economic
opportunities;
(2) low- and very low-income persons, especially recipients of
government assistance for housing, often have restricted access to
employment and other economic opportunities;
(3) the employment and other economic opportunities generated by
projects and activities that receive Federal housing and community
development assistance offer an effective means of empowering low-
and very low-income persons, particularly persons who are recipients
of government assistance for housing; and
(4) prior Federal efforts to direct employment and other
economic opportunities generated by Federal housing and community
development programs to low- and very low-income persons have not
been fully effective and should be intensified.
(b) Policy
It is the policy of the Congress and the purpose of this section to
ensure that the employment and other economic opportunities generated by
Federal financial assistance for housing and community development
programs shall, to the greatest extent feasible, be directed toward low-
and very low-income persons, particularly those who are recipients of
government 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 contractors 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 generated by
development assistance provided 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\
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\1\ See References in Text note below.
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(B) Priority
The efforts required under subparagraph (A) shall be
directed in the following order of priority:
(i) To residents of the housing developments for which
the assistance is expended.
(ii) To residents of other developments managed by the
public or Indian housing agency that is expending the
assistance.
(iii) To participants in Youthbuild programs receiving
assistance under subtitle D of title IV of the Cranston-
Gonzalez National Affordable Housing Act [42 U.S.C. 12899 et
seq.].
(iv) To other low- and very low-income persons residing
within the metropolitan 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 regulations, opportunities for
training and employment arising in connection with a housing
rehabilitation (including reduction and abatement of lead-based
paint hazards), housing construction, or other public
construction project are given to low- and very low-income
persons residing within the metropolitan 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 subtitle D of title IV of the Cranston-Gonzalez National
Affordable Housing Act [42 U.S.C. 12899 et seq.].
(d) Contracting
(1) Public and Indian housing program
(A) In general
The Secretary shall require that public and Indian housing
agencies, and their contractors 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 provided
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 assistance 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
subtitle D of title IV of the Cranston-Gonzalez National
Affordable Housing Act [42 U.S.C. 12899 et seq.].
(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 provided.
(2) Other programs
(A) In general
In providing housing and community development assistance
pursuant to other programs, 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 housing
rehabilitation (including reduction and abatement of lead-based
paint hazards), housing construction, or other public
construction project are given 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 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 programs receiving assistance under subtitle D of
title IV of the Cranston-Gonzalez National Affordable Housing
Act [42 U.S.C. 12899 et seq.].
(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 controlling interest in the business;
(B) employs a substantial number of such persons; or
(C) meets such other criteria as the Secretary may
establish.
(f) Coordination with other Federal agencies
The Secretary shall consult with the Secretary of Labor, the
Secretary of Health and Human Services, the Secretary of Commerce, the
Administrator of the Small Business Administration, 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, Sec. 3, Aug. 1, 1968, 82 Stat. 476; Pub. L. 91-152,
title IV, Sec. 404, Dec. 24, 1969, 83 Stat. 395; Pub. L. 93-383, title
I, Sec. 118, Aug. 22, 1974, 88 Stat. 653; Pub. L. 96-399, title III,
Sec. 329, Oct. 8, 1980, 94 Stat. 1651; Pub. L. 102-550, title IX,
Sec. 915, Oct. 28, 1992, 106 Stat. 3878.)
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, Sec. 522(a), Oct.
21, 1998, 112 Stat. 2564.
The Cranston-Gonzalez National Affordable Housing Act, referred to
in subsecs. (c)(1)(B)(iii), (2)(B), (d)(1)(B)(iii), (2)(B), is Pub. L.
101-625, Nov. 28, 1990, 104 Stat. 4079, as amended. Subtitle D of title
IV of the Act is classified generally to part C (Sec. 12899 et seq.) of
subchapter IV of chapter 130 of Title 42, The Public Health and Welfare.
For complete classification of this Act to the Code, see Short Title
note set out under section 12701 of Title 42 and Tables.
Codification
Section was enacted as part of the Housing and Urban Development Act
of 1968, and not as part of the National 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 Affordable Housing Act
Amendments of 1992'', and was translated 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 reflect the probable
intent of Congress.
Amendments
1992--Pub. L. 102-550 amended section generally. Prior to amendment,
section read as follows: ``In the administration by the Secretary of
Housing and Urban Development of programs providing direct financial
assistance, including community development block grants under title I
of the Housing and Community Development Act of 1974, in aid of housing,
urban planning, development, redevelopment, or renewal, public or
community facilities, and new community development, the Secretary
shall--
``(1) require, in consultation with the Secretary of Labor, that
to the greatest extent feasible opportunities for training and
employment arising in connection 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 nonmetropolitan county), as determined by the
Secretary, in which the project is located; and
``(2) require, in consultation with the Administrator 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 limited
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, Sec. 329(1), substituted ``residing
within the unit of local government or the metropolitan area (or
nonmetropolitan county), as determined by the Secretary, in which the
project is located'' for ``residing in the area of such project''.
Par. (2). Pub. L. 96-399, Sec. 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 applicable
programs providing direct financial assistance in aid of housing, urban
planning, development, redevelopment, or renewal, public or community
facilities, and new community development, for provisions making
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 Housing Act of 1937, and the rent supplement program under
section 101 of the Housing and Urban Development Act of 1965.
Effectiveness Study
Section 916 of Pub. L. 102-550 provided that:
``(a) In General.--The Secretary of Housing and Urban Development
shall submit to the Congress, not later than 1 year after the date of
the enactment of this Act [Oct. 28, 1992], a report describing--
``(1) the Secretary's efforts to enforce section 3 of the
Housing and Urban Development Act of 1968 [12 U.S.C. 1701u];
``(2) the barriers to full implementation of section 3 of the
Housing and Urban Development Act of 1968;
``(3) the anticipated costs and benefits of full implementation
of section 3 of the Housing and Urban Development Act of 1968; and
``(4) recommendations for legislative changes to enhance the
effectiveness of section 3 of the Housing and Urban Development Act
of 1968.
``(b) Contents.--
``(1) Enforcement.--The description under subsection (a)(1) of
the Secretary's enforcement efforts shall include, at a minimum--
``(A) a discussion of how responsibility for implementing
section 3 of the Housing and Urban Development Act of 1968 [12
U.S.C. 1701u] is allocated within the Department of Housing and
Urban Development;
``(B) a discussion of the status of existing regulations
implementing such section 3;
``(C) a discussion of ongoing efforts to enforce current
regulations;
``(D) a list of the programs under the responsibility of the
Secretary with respect to which the Secretary is enforcing
section 3; and
``(E) a separate description of the activities carried out
under section 3 with respect to each of these programs.
``(2) Impediments.--The discussion under subsection (a)(2) of
the external impediments to effective enforcement of section 3 of
the Housing and Urban Development Act of 1968 shall include, at a
minimum, a discussion of--
``(A) any lack of necessary training for targeted employees
and technical assistance to targeted businesses;
``(B) any barriers created by Federal, State, or local
procurement regulations or other laws;
``(C) any difficulties in coordination with labor unions;
``(D) any difficulties in coordination with other implicated
Federal agencies; and
``(E) any lack of resources on the part of recipients of
assistance who are responsible for carrying out section 3 of the
Housing and Urban Development Act of 1968.
``(c) Consultation.--In preparing the report under this subsection,
the Secretary shall consult with the Secretary of Labor, the Secretary
of Commerce, the Secretary of Health and Human Services, the
Administrator of the Small Business Administration, other appropriate
Federal officials, and recipients of Federal housing and community
development assistance who are responsible for executing section 3 of
the Housing and Urban Development Act of 1968 [12 U.S.C. 1701u].''
Section Referred to in Other Sections
This section is referred to in title 42 section 3608.
