§ 3121. Findings and declarations

§ 3121. Findings and declarations

(a) Findings Congress finds that—

(1) there continue to be areas of the United States experiencing chronic high unemployment, underemployment, outmigration, and low per capita incomes, as well as areas facing sudden and severe economic dislocations because of structural economic changes, changing trade patterns, certain Federal actions (including environmental requirements that result in the removal of economic activities from a locality), and natural disasters;

(2) economic growth in the States, cities, and rural areas of the United States is produced by expanding economic opportunities, expanding free enterprise through trade, developing and strengthening public infrastructure, and creating a climate for job creation and business development;

(3) the goal of Federal economic development programs is to raise the standard of living for all citizens and increase the wealth and overall rate of growth of the economy by encouraging communities to develop a more competitive and diversified economic base by—

(A) creating an environment that promotes economic activity by improving and expanding public infrastructure;

(B) promoting job creation through increased innovation, productivity, and entrepreneurship; and

(C) empowering local and regional communities experiencing chronic high unemployment and low per capita income to develop private sector business and attract increased private sector capital investment;

(4) while economic development is an inherently local process, the Federal Government should work in partnership with public and private State, regional, tribal, and local organizations to maximize the impact of existing resources and enable regions, communities, and citizens to participate more fully in the American dream and national prosperity;

(5) in order to avoid duplication of effort and achieve meaningful, long-lasting results, Federal, State, tribal, and local economic development activities should have a clear focus, improved coordination, a comprehensive approach, and simplified and consistent requirements; and

(6) Federal economic development efforts will be more effective if the efforts are coordinated with, and build upon, the trade, workforce investment, transportation, and technology programs of the United States.

(b) Declarations In order to promote a strong and growing economy throughout the United States, Congress declares that—

(1) assistance under this chapter should be made available to both rural- and urban-distressed communities;

(2) local communities should work in partnership with neighboring communities, the States, Indian tribes, and the Federal Government to increase the capacity of the local communities to develop and implement comprehensive economic development strategies to alleviate economic distress and enhance competitiveness in the global economy;

(3) whether suffering from long-term distress or a sudden dislocation, distressed communities should be encouraged to support entrepreneurship to take advantage of the development opportunities afforded by technological innovation and expanding newly opened global markets; and

(4) assistance under this chapter should be made available to promote the productive reuse of abandoned industrial facilities and the redevelopment of brownfields.

(Pub. L. 89–136, § 2, as added Pub. L. 105–393, title I, § 102(a), Nov. 13, 1998, 112 Stat. 3598; amended Pub. L. 108–373, title I, § 101, Oct. 27, 2004, 118 Stat. 1757.)

Editorial Notes

Prior Provisions

A prior section 3121, Pub. L. 89–136, § 2, Aug. 26, 1965, 79 Stat. 552; Pub. L. 94–487, title I, § 102, Oct. 12, 1976, 90 Stat. 2331, set forth congressional findings and statement of purpose of chapter, prior to repeal by Pub. L. 105–393, § 102(a).

Amendments

2004—Pub. L. 108–373 reenacted section catchline without change and amended text generally, substituting pars. (1) to (6) for former pars. (1) to (8) in subsec. (a) and pars. (1) to (4) for former pars. (1) to (3) in subsec. (b).

Statutory Notes and Related Subsidiaries

Effective Date

Pub. L. 105–393, title I, § 105, Nov. 13, 1998, 112 Stat. 3618, provided that: “This title [see Short Title of 1998 Amendment note set out below] and the amendments made by this title shall take effect on a date determined by the Secretary of Commerce, but not later than 90 days after the date of enactment of this Act [Nov. 13, 1998].” [Effective Feb. 11, 1999, see 64 F.R. 9222.]

Short Title of 2025 Amendment

Pub. L. 118–272, div. B, title II, § 2201, Jan. 4, 2025, 138 Stat. 3176, provided that: “This title [see Tables for classification] may be cited as the ‘Economic Development Reauthorization Act of 2024’.”

Short Title of 2020 Amendment

Pub. L. 116–192, § 1, Oct. 30, 2020, 134 Stat. 978, provided that: “This Act [amending section 3211 of this title] may be cited as the ‘Reinvigorating Lending for the Future Act’ or the ‘RLF Act’.”

Short Title of 2004 Amendment

Pub. L. 108–373, § 1(a), Oct. 27, 2004, 118 Stat. 1756, provided that: “This Act [enacting sections 3154 to 3154d, 3221, 3222, and 3234 of this title, amending this section and sections 3122, 3131, 3133, 3143 to 3147, 3149, 3151, 3161, 3162, 3174, 3192, 3196, 3212, 3213, 3219, and 3231 of this title, and repealing sections 3148, 3173, and 3195 of this title] may be cited as the ‘Economic Development Administration Reauthorization Act of 2004’.”

Short Title of 1998 Amendment

Pub. L. 105–393, § 1(a), Nov. 13, 1998, 112 Stat. 3596, provided that: “This Act [see Tables for classification] may be cited as the ‘Economic Development Administration and Appalachian Regional Development Reform Act of 1998’.”

Pub. L. 105–393, title I, § 101, Nov. 13, 1998, 112 Stat. 3597, provided that: “This title [enacting subchapters I to VII of this chapter, transferring section 3222 of this title to section 3212 of this title, amending section 5316 of Title 5, Government Organization and Employees, repealing former subchapters I to X of this chapter, enacting provisions set out as notes under this section, and repealing provisions set out as a note under this section] may be cited as the ‘Economic Development Administration Reform Act of 1998’.”

Short Title of 1976 Amendment

Pub. L. 94–487, § 101, Oct. 12, 1976, 90 Stat. 2331, provided that: “This Act [enacting sections 3137, 3144, 3173, and 3246h of this title, amending this section and sections 3131, 3132, 3135, 3141, 3142, 3151a, 3152, 3153, 3161, 3171, 3172, 3188a, 3214, 3241, 3243, 3245, 3246a to 3246c, and 3246e to 3246g of this title, repealing section 3246d of this title, enacting provisions set out as notes under this section, and amending provisions set out as a note under section 3162 of this title] may be cited as the ‘Public Works and Economic Development Act Amendments of 1976’.”

Short Title of 1975 Amendments

Pub. L. 94–188, § 1, Dec. 31, 1975, 89 Stat. 1079, provided: “That this Act [enacting sections 3194 to 3196 of this title and sections 225 and 303 of the Appendix to former Title 40, Public Buildings, Property, and Works, amending sections 3181, 3182, 3188a and 3192 of this title, and sections 2, 101, 102, 105–107, 201, 202, 205, 207, 211, 214, 223, 224, 302, 401 and 405 of the Appendix to former Title 40, repealing section 3134 of this title, and enacting provisions set out as notes under sections 3181 and 3183 of this title and sections 1, 2 and 201 of the Appendix of former Title 40] may be cited as the ‘Regional Development Act of 1975’.”

Pub. L. 94–188, title II, § 201, Dec. 31, 1975, 89 Stat. 1087, provided that: “This title [enacting sections 3194 to 3196 of this title, amending sections 3181, 3182, 3188a, and 3192 of this title, and enacting provisions set out as note under section 3183 of this title] may be cited as the ‘Regional Action Planning Commission Improvement Act of 1975’.”

Short Title of 1974 Amendment

Pub. L. 93–567, § 1, Dec. 31, 1974, 88 Stat. 1845, provided: “That this Act [enacting sections 3246 to 3246g of this title and sections 961 to 966 of Title 29, Labor, amending section 1244 of Title 20, Education, and sections 841, 842, 844, 845, 849 to 851, 981, and 983 of Title 29, and enacting provisions set out as notes under sections 3304 of Title 26, Internal Revenue Code, and 4102 of Title 38, Veterans’ Benefits] may be cited as the ‘Emergency Jobs and Unemployment Assistance Act of 1974’.”

Short Title of 1971 Amendment

Pub. L. 92–65, title I, § 101, Aug. 5, 1971, 85 Stat. 166, provided that: “This title [enacting section 3123 of this title and amending this section, sections 3135, 3141, 3152, 3161, 3162, 3171, 3188a, and 3191 of this title, and provisions set out as a note under section 3162 of this title] may be cited as the ‘Public Works and Economic Development Act Amendments of 1971’.”

Short Title of 1969 Amendment

Pub. L. 91–123, title II, § 201, Nov. 25, 1969, 83 Stat. 216, provided that: “This title [enacting sections 3190, 3191, and 3192 of this title and amending this section and sections 3185, 3186, and 3188a of this title] may be cited as the ‘Regional Action Planning Commission Amendments of 1969’.”

Short Title

Pub. L. 89–136, § 1(a), as added Pub. L. 105–393, title I, § 102(a), Nov. 13, 1998, 112 Stat. 3597, provided that: “This Act [enacting this chapter] may be cited as the ‘Public Works and Economic Development Act of 1965’.”

A prior section 1 of Pub. L. 89–136, which provided that Pub. L. 89–136 could be cited as the “Public Works and Economic Development Act of 1965”, was repealed by Pub. L. 105–393, title I, § 102(a), Nov. 13, 1998, 112 Stat. 3597.

Denali Housing Fund

Pub. L. 118–272, div. B, title II, § 2252, Jan. 4, 2025, 138 Stat. 3211, provided that: “(a) Definitions.—In this section:“(1) Eligible entity.—The term ‘eligible entity’ means—“(A) a nonprofit organization; “(B) a limited dividend organization; “(C) a cooperative organization; “(D) an Indian Tribe (as defined in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 5304)); and “(E) a public entity, such as a municipality, county, district, authority, or other political subdivision of a State. “(2) Federal cochair.—The term ‘Federal Cochair’ means the Federal Cochairperson of the Denali Commission. “(3) Fund.—The term ‘Fund’ means the Denali Housing Fund established under subsection (b)(1). “(4) Low-income.—The term ‘low-income’, with respect to a household means that the household income is less than 150 percent of the Federal poverty level for the State of Alaska. “(5) Moderate-income.—The term ‘moderate-income’, with respect to a household, means that the household income is less than 250 percent of the Federal poverty level for the State of Alaska. “(6) Secretary.—The term ‘Secretary’ means the Secretary of Agriculture. “(b) Denali Housing Fund.—“(1) Establishment.—There shall be established in the Treasury of the United States the Denali Housing Fund, to be administered by the Federal Cochair. “(2) Source and use of amounts in fund.—“(A) In general.—Amounts allocated to the Federal Cochair for the purpose of carrying out this section shall be deposited in the Fund. “(B) Uses.—The Federal Cochair shall use the Fund as a revolving fund to carry out the purposes of this section. “(C) Investment.—The Federal Cochair may invest amounts in the Fund that are not necessary for operational expenses in bonds or other obligations, the principal and interest of which are guaranteed by the Federal Government. “(D) General expenses.—The Federal Cochair may charge the general expenses of carrying out this section to the Fund. “(3) Authorization of appropriations.—There is authorized to be appropriated to the Fund $5,000,000 for each of fiscal years 2025 through 2029. “(c) Purposes.—The purposes of this section are—“(1) to encourage and facilitate the construction or rehabilitation of housing to meet the needs of low-income households and moderate-income households; and “(2) to provide housing for public employees. “(d) Loans and Grants.—“(1) In general.—The Federal Cochair may provide grants and loans from the Fund to eligible entities under such terms and conditions the Federal Cochair may prescribe. “(2) Purpose.—The purpose of a grant or loan under paragraph (1) shall be for planning and obtaining federally insured mortgage financing or other financial assistance for housing construction or rehabilitation projects for low-income and moderate-income households in rural Alaska villages. “(e) Providing Amounts to States for Grants and Loans.—The Federal Cochair may provide amounts to the State of Alaska, or political subdivisions thereof, for making the grants and loans described in subsection (d). “(f) Loans.—“(1) Limitation on available amounts.—A loan under subsection (d) for the cost of planning and obtaining financing (including the cost of preliminary surveys and analyses of market needs, preliminary site engineering and architectural fees, site options, application and mortgage commitment fees, legal fees, and construction loan fees and discounts) of a project described in that subsection may be for not more than 90 percent of that cost. “(2) Interest.—A loan under subsection (d) shall be made without interest, except that a loan made to an eligible entity established for profit shall bear interest at the prevailing market rate authorized for an insured or guaranteed loan for that type of project. “(3) Payment.—“(A) In general.—The Federal Cochair shall require payment of a loan made under this section under terms and conditions the Secretary may require by not later than the date of completion of the project. “(B) Cancellation.—For a loan other than a loan to an eligible entity established for profit, the Secretary may cancel any part of the debt with respect to a loan made under subsection (d) if the Secretary determines that a permanent loan to finance the project cannot be obtained in an amount adequate for repayment of a loan made under subsection (d). “(g) Grants.—“(1) In general.—A grant under this section for expenses incidental to planning and obtaining financing for a project described in this section that the Federal Cochair considers unrecoverable from the proceeds of a permanent loan made to finance the project—“(A) may not be made to an eligible entity established for profit; and “(B) may not exceed 90 percent of those expenses. “(2) Site development costs and offsite improvements.—“(A) In general.—The Federal Cochair may make grants and commitments for grants under terms and conditions the Federal Cochair may require to eligible entities for reasonable site development costs and necessary offsite improvements, such as sewer and water line extensions, if the grant or commitment—“(i) is essential to ensuring that housing is constructed on the site in the future; and “(ii) otherwise meets the requirements for assistance under this section. “(B) Maximum amounts.—The amount of a grant under this paragraph may not—“(i) with respect to the construction of housing, exceed 40 percent of the cost of the construction; and “(ii) with respect to the rehabilitation of housing, exceed 10 percent of the reasonable value of the rehabilitation, as determined by the Federal Cochair. “(h) Information, Advice, and Technical Assistance.—The Federal Cochair may provide, or contract with public or private organizations to provide, information, advice, and technical assistance with respect to the construction, rehabilitation, and operation by nonprofit organizations of housing for low-income or moderate-income households, or for public employees, in rural Alaska villages under this section.”

Transition Provisions