682 



subdivision thereof, Indian tribe, or private or pub- 

 lic nonprofit organization or association represent- 

 ing any redevelopment area or part thereof, the 

 Secretary of Commerce (hereinafter referred to as 

 the Secretary) is authorized — 



(1) to make direct grants for the acquisition or 

 development of land and improvements for public 

 works, public service, or development facility 

 usage, and the acquisition, construction, rehabili- 

 tation, alteration, expansion, or improvement of 

 such facilities, including related machinery and 

 equipment, within a redevelopment area, if he 

 finds that — 



(A) the project for which financial assistance 

 is sought will directly or indirectly (1) tend to 

 improve the opportunities, in the area where 

 such project is or will be located, for the suc- 

 cessful establishment or expansion of Industrial 

 or commercial plants or facilities, <li) other- 

 wise assist in the creation of additional long- 

 term employment opportunities for such area, 

 or (iii) primarily benefit the long-term unem- 

 ployed and members of low-income families or 

 otherwise substantially further the objectives 

 of the Economic Opportunity Act of 1964; 



(B) the project for which a grant is requested 

 will fulfill a pressing need of the area, or part 

 thereof, in which it is, or will be, located; 



(C) the area for which a project is to be un- 

 dertaken has an approved overall economic de- 

 velopment program as provided in section 3142 

 (b)(10) of this title and such project is con- 

 sistent with such program; and 



(D) in the case of a redevelopment area so 

 designated under section 3161(a) (6) of this title, 

 the project to be taken will provide immediate 



-useful work to unemployed and underemployed 

 persons in that area ; 



(2) to n;iake supplementary grants in order to 

 enable the States and other entities within re- 

 development areas to take maximum advantage 

 of designated Federal grant-in-aid programs (as 

 hereinafter defined), direct grants-in-aid author- 

 ized under this section, and Federal grant-in-aid 

 programs authorized by the Watershed Protec- 

 tion and Flood Prevention Act i68 Stat. 666, as 

 amended), and the eleven watersheds authorized 

 by the Flood Control Act of December 22, 1944, as 

 amended and supplemented (58 Stat. 887), for 

 which they are eligible but for which, because of 

 their economic situation, they cannot supply the 

 required matching share. 



(b) Maximum proportion of direct grant funds to total 

 project cost. 



Subject to subsection (c) hereof, the amount of 

 any direct grant under this section for any project 

 shall not exceed 50 per centum of the cost of such 

 project. 



(c) Proportion of supplementary grant funds to total 

 project cost; rules and regulations; maximum 

 grants; required non-Federal share. 



The amount of any supplementary grant under 

 this section for any project shall not exceed the 

 applicable percentage established by regulations 

 promulgated by the Secretary, but in no event shall 



the non-Federal share of the aggregate cost of any 

 such project (including assumptions of debt) be less 

 than 20 per centum of such cost, except that in the 

 case of a grant to an Indian tribe, the Secretary may 

 reduce the non-Federal share below such per centum 

 or may waive the non-Federal share. In the case of 

 any State or political subdivision thereof which the 

 Secretary determines has exhausted its effective tax- 

 ing and borrowing capacity, the Secretary shall re- 

 duce the non-Federal share below such per centum 

 or shall waive the non-Federal share in the case of 

 such a grant for a project in a redevelopment area 

 designated as such under section 3161(a) (6 > of this 

 title. In case of any community development cor- 

 poration which the Secretary determines has ex- 

 hausted its effective borrowing capacity, the 

 Secretary may reduce the non-Federal share below 

 such per centum or waive the non-Federal share 

 in the case of such a grant for a project in a re- 

 development area designated as such under section 

 3161j:a)(6) of this title. 



Supplementary grant shall be made by the Sec- 

 retary, in accordance with such regulations as he 

 shall prescribe, by increasing the amounts of direct 

 grants authorized under this section or by the pay- 

 ment of funds appropriated under this chapter to 

 the heads of the departments, agencies, and instru- 

 mentalities of the Federal Government responsible 

 for the administration of the applicable Federal pro- 

 grams. Notwithstanding any requirement as to the 

 amount or sources of non-Federal funds that may 

 otherwise be applicable to the Federal program in- 

 volved, funds provided under this subsection shall be 

 used for the sole purpose of increasing the Federal 

 contribution to specific projects in redevelopment 

 areas under such programs above the fixed maxi- 

 mum portion of the cost of such project otherwise 

 authorized by the applicable law. The term "desig- 

 nated Federal grant-in-aid programs," as used in 

 this subsection, means such existing or future Federal 

 grant-in-aid programs assisting in the construction 

 or equipping of facilities as the Secretary may, in fur- 

 therance of the purposes of this chapter, designate 

 as eligible for allocation of funds under this section. 

 In determiniijg the amount of any supplementary 

 grant available to any project under this section, the 

 Secretary shall take into consideration the relative 

 needs of the area, the nature of the project to be 

 assisted, and the amount of such fair user charges 

 or other revenues as the project may reasonably be 

 expected to generate in excess of those which would 

 amortize the local share of initial costs and provide 

 for its successful operation and maintenance (in- 

 cluding depreciation) . 



(d) Rules and reeulations; consideration of unem- 

 ployment and underemployment in determining 

 rules. 

 The Secretary shall prescribe rules, regulations, 

 and procedures to carry out this section which will 

 assure that adequate consideration is given to the 

 relative needs of eligible areas. In prescrlbing^such 

 rules, regulations, and procedures the Secretary shall 

 consider among other relevant factors (1) the 

 severity of the rates of unemployment in the eligible 

 areas and the duration of such unemployment and 



