§9807 Financial assistance requirements

Summary

The Secretary must not give federal money for a community economic development program unless certain conditions are met. There are 14 main requirements. Important ones are: the community development group must be accountable to the area it serves, with a governing board that is at least 50 percent residents; the program must fit with local planning, housing, and job-training efforts; enough technical help must be available; the aid must really advance the program’s goals and fill unmet local needs; projects should, as much as possible, be located in the served area; programs should help people learn business and management skills and encourage resident ownership or participation; residents, local business people, and banks must be involved in planning and running projects; participants cannot be used for political party work or for building or running places used for religious worship; workers must not be displaced or have existing contracts cut; pay and job conditions must be fair; programs should help people move up in jobs; low-income local residents should get hiring and training preference; and training should teach skills that are useful in other communities too. Federal money cannot be used to move a business if that move would cause a big rise in unemployment where the business started. For commercial projects, a program must give detailed development goals and a timetable before getting funds, and the Secretary should weigh how well the program met past goals when deciding on continued support.