Sec. 5. Capacity building grant program

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Title II of the Public Works and Economic Development Act of 1965 ( 42 U.S.C. 3141 et seq. ) is amended by inserting after section 207 the following: In this section, the term predevelopment activity means an activity carried out before a project can proceed to the execution stage or the eligible recipient can secure financing and partners. The Secretary shall establish a program to provide to eligible recipients assistance for predevelopment activities. An eligible recipient may use funds from a grant under this section— to carry out certain predevelopment activities, including— planning and community asset mapping; training; technical assistance and organizational development; feasibility and market studies; demonstration projects; organizational capacity building; organizing and facilitating convenings; and other predevelopment activities, as determined appropriate by the Secretary; and to hire and obtain qualified economic development professionals and services for a 3-year period to develop and carry out a comprehensive economic development strategy, an economic development strategic plan, or other predevelopment activities.

To be eligible for a grant under this section, an eligible recipient shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require, including a specific plan— on how the eligible recipient will carry out predevelopment activities using grant funds; and for the continuation of the position created or services obtained as a result of the grant after the end of the 3-year term, if applicable. In the case of a project under this section that is carried out using grant funds by 1 or more eligible recipients with low organizational capacity, in the determination of the Secretary, the Secretary may waive the prohibition described in section 213. .

Section 201(a) of the Public Works and Economic Development Act of 1965 ( 42 U.S.C. 3141(a) ) is amended— in paragraph (1), by striking and at the end; in paragraph (2), by striking the period at the end and inserting ; and ; and by adding at the end the following: predevelopment activities (as defined in section 208(a)). . Section 209(a) of the Public Works and Economic Development Act of 1965 ( 42 U.S.C. 3149(a) ) is amended by inserting predevelopment activities (as defined in section 208(a)), after training, .

Section 302(a) of the Public Works and Economic Development Act of 1965 ( 42 U.S.C. 3162(a) ) is amended in the matter preceding paragraph

(1)by inserting and predevelopment activities (as defined in section 208(a)) under section 201 or 209 after section 209 . Section 204(c)(3) of the Public Works and Economic Development Act of 1965 ( 42 U.S.C. 3144(c)(3) ) is amended— in the paragraph heading, by inserting after and capacity building ; and technical assistance by striking section 207 and inserting sections 207 and 208 . Section 217(a) of the Public Works and Economic Development Act of 1965 ( 42 U.S.C. 3154c(a) ) is amended by striking or 207 and inserting 207, or 208 . Section 601(a)(12) of the Public Works and Economic Development Act of 1965 ( 42 U.S.C. 3211(a)(12) ) is amended by striking section 207 and inserting sections 207 and 208 . The table of contents contained in section 1(b) of the Public Works and Economic Development Act of 1965 (79 Stat. 552; 112 Stat. 3597; 118 Stat. 1761) is amended by inserting after the item relating to section 207 the following: Sec. 208. Capacity building grant program. .

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