698
PUBLIC LAW 92-424-SEPT. 19, 1972
[86 STAT.
" P A R T A—SPECIAL IMPACT PROGRAMS "STATEMENT OF PURPOSE
"SEC. 711. The purpose of this part is to establish special programs of assistance to private locally initiated community corporations and related nonprofit agencies, including cooperatives, or organizations conducting activities which (1) are directed to the solution of the critical problems existing in particular communities or neighborhoods (defined without regard to political or other subdivisions or boundaries) within those urban and rural areas having concentrations or substantiahnumbers of low-income persons; (2) are of sufficient size, scope, and duration to have an appreciable impact in such communities, neighborhoods, and rural areas in arresting tendencies toward dependency, chronic unemployment, and community deterioration: and (3) hold forth the prospect of continuing to have such impact after the termination of financial assistance under this title. ESTABLISHMENT OF PROGRAMS Financial assistance.
78 Stat. 526; II Stat. 710. 42 USC 2901.
81 Stat. 683. 42 USC 2737.
"SEC. 712. (a) The Director is authorized to provide financial assistance to community development corporations and to cooperatives and other nonprofit agencies in conjunction with qualifying community development corporations for the payment of all or part of the costs of programs which are designed to carry out the purposes of this part. Such programs shall be restricted in number so that each is of sufficient size, scope, and duration to have an appreciable impact on the area served. Such programs may include— "(1) economic and business development programs, including programs which provide financial and other assistance (including equity capital) to start, expand, or locate businesses in or near the areas served so as to provide employment and ownership opportunities for residents of such areas, and programs including tnose described in title IV of this Act for small businesses in or owned by residents of such areas; "(2) community development and housing activities which create new training, employment, and ownership opportunities and which contribute to an improved living environment; and "(3) manpower training programs for unemployed or lowincome persons which support and complement economic, business, housing, and community development programs, including without limitation activities such as those described in part B of title I of this Act. "(b) The Director shall conduct programs assisted under this part so as to contribute, on an equitable basis between urban and rural areas, to the elimination of poverty and the establishment of permanent economic and social benefits in such areas. REQUIREMENTS FOR FINANCIAL ASSISTANCE
Regulations.
"SEC. 713. (a) The Director, under such regulations as he may establish, shall not provide financial assistance for any program or component project under this part unless he determines that— " (1) such community development corporation is responsive to residents of the area under guidelines established by the Director; "(2) all projects and related facilities will, to the maximum feasible extent, be located in the area served; "(3) projects will, where feasible, promote the development of entrepreneurial and management skills and the ownership or
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