Community Development Assistance Act

Community Development Assistance Act - Sets forth Congressional findings that: (1) the Nation's cities, towns, and smaller urban communities face critical social, economic and environmental problems arising from the growth of population in urban areas and the concentration of lower-income persons in central cities, and inadequate public and private investment in planning physical facilities services; and (2) the Nation's future welfare depends on the establishment and maintenance of viable urban communities and declares that the purpose of this Act is to improve the present system of Federal assistance through simplifying and consolidating existing categorical programs and authorizing a new program to assure greater continuity of Federal support and to increase public and private investment in community development. Provides that the program of Federal Assistance provided in this Act is designed to support community development activities which are directed toward: (a) conserving and expanding the Nation's housing stock; (b) eliminating slums and preventing deterioration of property and facilities; (c) achieving more national utilization of land; (d) expanding and improving the quality of community services; (e) restoring and preserving properties of special value; and (f) eliminating conditions which are detrimental to health. Sets forth definitions of terms used in this chapter.

Sets forth specified activities which further the purposes of the Act including (1) acquisition of property which is blighted or inappropriately developed, appropriate for rehabilitation or conservation, necessary for preservation, beautification, conservation or future development, to be used for public works, facilities or other public purposes; (2) disposition of property at its fair value; (3) clearance or demolition of buildings; (4) acquisition, construction or reconstruction of community facilities; and (5) designing and interim financing for the construction of certain public facilities.

Authorizes the Secretary to incure obligations in an amount not exceeding $5.9 billion as approved in an Appropriation Act, beginning July 1, 1974 for these purposes.

Provides that authority to liquidate obligations would be limited to $2.7 billion prior to July 1, 1975, and $5.9 billion prior to July 1, 1976, with sums appropriated remaining available until expended. Requires the Secretary to report to the Congress annually, and to submit requests for increased authorizations and any needed adjustments in the schedule for liquidation of obligations in a timely manner. Requires that 75 percent of the appropriated funds for community development be allocated to metropolitan areas. Provides that each metropolitan area would be eligible for annual grants.

Requires the Secretary to make a report to the Congress not later than September 1, 1975, setting forth his recommendations for modifying or expanding provisions related to the method and level of funding and the allocation of funds, the determination of the basic grant entitlement, and for the application of such provisions in the future distribution of funds under the Act. Provides that financial assistance shall be granted only upon an annual application by a community development agency. Sets forth provisions which each application would be required to contain.

Authorizes the Secretary to enter into contracts to make grants to community development agencies for activities to be carried out within a two year period. Provides that no grant may exceed 90 percent of any agency's total net program cost. Provides that where the program involves rehabilitation grants or relocation payments, the grant may be increased, subject to prescribed limitations, to include either the full cost of making rehabilitation grants, or the full cost up to $25,000 for each displaced person for relocation. States that non-Federal contributions to the program cost must be in the form of cash grants, property donated at cash value, or public services or improvements at their cost. Excludes from the cost of carrying out community development activities the portion of that cost payable under any other Federal grant program. Authorizes loans at not less than the going Federal rate to community development agencies to finance activities pending receipt of grant assistance.

Provides interim financing for the construction of public facilities. Provides that these funds may be obtained by issuance of obligations not to exceed $1,500,000,000 under conditions prescribed by the Secretary with the approval of the Secretary of the Treasury, who is further authorized to purchase and sell any of these obligations as public debt transactions. Authorizes the Secretary to make rehabilitation loans where the rehabilitation is necessary or appropriate under an approved community development program. Provides that the Secretary in carrying out the provisions of this Act shall consult with other Federal agencies which administer grant-in-aid programs.