A bill to amend title I of the Housing and Community Development Act of 1974 for the purposes of extending the authority under such title and providing a more equitable distribution of community development funds to units of general local government under such title.

Amends the Housing and Community Development Act of 1974 to revise the allocation formula for community development assistance to metropolitan cities and urban counties in order to insure that the areas of greatest need will receive the most assistance. Extends, by one year, the period during which the hold-harmless amount of any metropolitan city, urban county or unit of local government is applicable. Sets forth the method by which such hold-harmless amount shall be computed.

Increases and extends over a period of eight fiscal years the amount of funds authorized to be appropriated for grants to States and local governments.

Expands the uses to which discretionary funds may be put. Requires that a special discretionary fund be set aside for use by the Secretary of Housing and Urban Development in making grants to States and local governments which join in carrying out housing and community development programs that are areawide in scope.

Sets priorities which recipients of grants must follow in utilizing the funds from such grants including: areas with high concentrations of impoverished and unemployed persons, and areas with high concentrations of dwelling units which were constructed before 1939 and are currently being used for dwelling units.