Sec. 4. Non-business grants for community revitalization and economic development

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The Secretary shall use amounts made available to carry out this section to make grants to States, units of general local government, Indian Tribes, insular areas, and eligible institutions serving or owned by minorities for use to carry out eligible non-business activities under subsection

(e)in low- and moderate-income areas. Of any amounts made available to carry out this section, the Secretary shall reserve for grants under this section— 76 percent for allocation in accordance with subsection (c)(1); 18 percent for allocation for minority-owned and minority-serving entities in accordance with subsection (c)(2); and 6 percent for allocation for Indian Tribes and insular areas in accordance with subsection (c)(3). Of the amount allocated under subsection (b)(1)— 70 percent shall be allocated for entitlement communities in accordance with the formula under section 106(b) of the Housing and Community Development Act of 1974 ( 42 U.S.C. 5306(b) ); and 30 percent shall be allocated to States, for use in nonentitlement areas, in accordance with the formula under section 106(d)(1) of the Housing and Community Development Act of 1974 ( 42 U.S.C. 5306(d)(1) ). The Secretary of Housing and Urban Development shall allocate the amount allocated under subsection (b)(3) directly and on a competitive basis for grants to eligible minority-owned entities and minority-serving entities. Allocation for non-business grants under this paragraph shall be made pursuant to a competition for such grants, as the Secretary shall provide, that— takes into account the need for grant assistance for the area in which, and for the activities for which the grant amounts will be used; and provides grant amount only to applicants who will carry out activities assisted with such grant amounts only in low- and moderate-income areas. Of the amount allocated under subsection (b)(2), not less than 33 percent shall be allocated for grants under this section for minority-serving entities. The Secretary shall take such actions as may be necessary to ensure that grants under this paragraph are accessible to newer and smaller minority-owned entities and ensure that technical assistance is prioritized and provided to organizations with little or no grant-writing capacity. The Secretary of Housing and Urban Development shall allocate for grants to Indian Tribes and insular areas on a competitive basis the amount allocated under subsection (b)(4). In making allocations under this paragraph, the Secretary shall, to the greatest extent practicable, ensure that each Indian Tribe and each insular area that satisfies low- to moderate-income requirements and unmet need criteria, as determined by the Secretary, receives such an allocation. The Secretary shall monitor the reporting requirements and disclosures of allocated expenditures as set forth in section 6(e), to coordinate with grantees and subgrantees to ensure there are no overpayments or duplication of benefits. Amounts from a grant under this section may be used by a grantee or subgrantee only for activities specified under paragraph

(2)that— principally benefit households having incomes that do not exceed 50 percent of the median income of the area in which such households reside; aid in the prevention or elimination of slums or blight primarily for severely economically distressed communities (as such term is defined in section 610 of the National and Community Service Act of 199 ( 42 U.S.C. 12645d )), and historically disinvested communities, including high-poverty areas (as such term is defined in section 681.260 of title 20, Code of Federal Regulations) and persistent poverty counties (as such term is defined in the Department of Agriculture notice entitled Implementation of Certain Provisions of Consolidated Appropriations Act, 2020 Specific to Persistent Poverty Counties [Docket No. RBS–20–BUSINESS–0033], published in the Federal Register on August 21, 2020 (85 Fed. Reg. 51676)); or reduce the isolation and inequality of income groups within communities and geographical areas and the promotion of an increase in the diversity and vitality of neighborhoods through the spatial deconcentration of housing opportunities for persons of lower income and the revitalization of deteriorating or deteriorated neighborhoods; conserve and expand the housing stock in order to provide a decent home and a suitable living environment for all persons, but principally those of low and moderate income, and expand the number of community land trust, cooperative, municipal, and public housing units as a ratio of total housing stock; expand and enhance the quantity and quality of community services, principally for persons of low and moderate income, that are evidenced-based and essential for sound community development and for the development of viable urban communities; improve the rational utilization of land and other natural resources and the better arrangement of residential, commercial, industrial, recreational, and other needed activity centers, including parks, green spaces, and walking trails; conserve scarce energy resources, improve energy efficiency, or provide alternative and renewable energy sources, especially for environmental justice communities that have harmful environmental quality issues; restore and preserve properties of special value for historic, architectural, or esthetic reasons; alleviate the physical and economic distress through the stimulation of private investment and community revitalization in areas with population outmigration or a stagnating or declining tax base; meet an urgent need by addressing economic conditions that pose a serious and immediate threat to the health and safety of residents; or prevent, prepare for, or respond to coronavirus, based on public health needs, risk of transmission of coronavirus, number of coronavirus cases compared to the national average, and economic and housing market disruptions, and other factors. Activities specified under this subsection are as follows: Except as provided in paragraph (3)(C) of this subsection, any activity that is eligible for assistance under section 105(a) of the Housing and Community Development Act of 1974 ( 42 U.S.C. 5305(a) ). Any activity that is eligible for assistance under section 107 of such Act ( 42 U.S.C. 5307 ). Direct income payments by States or units of general local government to households having incomes that do not exceed 200 percent of the Federal poverty level, provided that such payments otherwise comply with subsection

(a)of this section. Activities to conserve art, construct monuments, and preserve memorials of contemporary civil rights struggles, such as the George Floyd Memorial in Minneapolis, Minnesota. Technical assistance and outreach activities by grantees to expand and diversify subgrantees funded with amounts provided under this section. Any activity that— is proposed by a grantee and approved by the Secretary; and complies with subsection

(a)of this section. Amounts from a grant under this section may not be used to provide assistance for— any law enforcement agency or to support or assist any law enforcement activities; any discriminatory conduct or programming, as prohibited by section 109(a) of the Housing and Community Development Act of 1974 ( 42 U.S.C. 5309(a) ); any business support activity described in section 105(a)(17) of such Act ( 42 U.S.C. 5305(a)(17) ) or any other activity for business development or business support; or any ineligible activity described in section 570.207 of the Secretary’s regulations (24 C.F.R. 570.207), but not including income payments authorized by paragraph (2)(C) of this subsection.

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