Sec. 301. Effect of undisbursed block grant amounts on annual allocations
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Title III ( 25 U.S.C. 4151 et seq. ) is amended by adding at the end the following: Subject to subsection (d), if on January 1, 2018, or on any January 1 October 1, 2017, or on any October 1 thereafter, the total amount of undisbursed block grants for a recipient in the line of credit control system of the Department of Housing and Urban Development is greater than 3 times the formula allocation the recipient would otherwise receive under this Act for the fiscal year during which January 1 occurs system (or a successor system) of the Department of Housing and Urban Development is greater than the sum of the initial allocations for the previous 3 fiscal years , the Secretary shall— not later than January 31 October 31 of that year, notify the Indian tribe allocated the grant amounts, and any tribally designated housing entity for the Indian tribe, of the undisbursed amounts; and require the recipient for the Indian tribe, not later than 30 days after the Secretary provides notification pursuant to paragraph (1)— to notify the Secretary in writing of the reasons why the recipient has not requested the disbursement of the amounts; and to demonstrate to the satisfaction of the Secretary that the recipient has the capacity to spend Federal funds in an effective manner, which may include evidence of the timely expenditure of amounts previously distributed to the recipient under this Act.
Notwithstanding sections 301 and 302, the allocation for a recipient for a fiscal year described in subsection
(a)shall be an amount equal to the difference between— the amount initially calculated according to the formula; minus an amount equal to the difference between— the total amount of undisbursed block grants for the recipient in the line of credit control system of the Department of Housing and Urban Development on January 1 of the fiscal year; and 3 times the initial formula amount for the fiscal year. Notwithstanding sections 301 and 302, the allocation for a recipient for a fiscal year described in subsection
(a)shall be the greater of— an amount equal to the difference between—
(A)the amount initially calculated according to the formula; minus an amount equal to the difference between—
(i)the total amount of undisbursed block grants for the recipient in the line of credit control system (or a successor system) of the Department of Housing and Urban Development on October 1 of the fiscal year; and
(ii)the sum of the initial allocations for the previous 3 fiscal years; or
(2)the amount that the recipient would otherwise receive under section 302(d). Notwithstanding any other provision of law, any grant amounts not allocated to a recipient pursuant to subsection
(b)shall be allocated in accordance with sections 301 and 302 . under the needs component of the formula. Subsections
(a)and
(b)shall not apply to an Indian tribe with respect to any fiscal year for which the amount allocated for the Indian tribe for block grants under this Act is less than $5,000,000. Nothing in this section— requires the promulgation of any regulation; or confers hearing rights under this section or any other provision of this Act. . The table of contents in section 1(b) ( 25 U.S.C. 4101 note) is amended by inserting after the item relating to section 302 the following: Sec. 303. Effect of undisbursed grant amounts on annual allocations. .
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