§3161. Area eligibility

(a) Criteria for determining eligible areas; unemployment; median family income; Indian lands; loss of major source of employment

The Secretary shall designate as "redevelopment areas"-

(1) those areas in which he determines, upon the basis of standards generally comparable with those set forth in paragraphs (A) and (B), that there has existed substantial and persistent unemployment for an extended period of time and those areas in which he determines there has been a substantial loss of population due to lack of employment opportunity. There shall be included among the areas so designated any area-

(A) where the Secretary of Labor finds that the current rate of unemployment, as determined by appropriate annual statistics for the most recent twelve consecutive months, is 6 per centum or more and has averaged at least 6 per centum for the qualifying time periods specified in paragraph (B); and

(B) where the Secretary of Labor finds that the annual average rate of unemployment has been at least-

(i) 50 per centum above the national average for three of the preceding four calendar years, or

(ii) 75 per centum above the national average for two of the preceding three calendar years, or

(iii) 100 per centum above the national average for one of the preceding two calendar years.

The Secretary of Labor shall find the facts and provide the data to be used by the Secretary in making the determinations required by this subsection;

(2) those additional areas which have a median family income not in excess of 50 per centum of the national median, as determined by the most recent available statistics for such areas;

(3) those additional Federal or State Indian reservations or trust or restricted Indian-owned land areas which the Secretary, after consultation with the Secretary of the Interior or an appropriate State agency, determines manifest the greatest degree of economic distress on the basis of unemployment and income statistics and other appropriate evidence of economic underdevelopment; Provided, however, That uninhabited Federal or State Indian reservations or trust or restricted Indian-owned land areas may be designated where such designation would permit assistance to Indian tribes, with a direct beneficial effect on the economic well-being of Indians;

(4) upon request of such areas, those additional areas in which the Secretary determines that the loss, removal, curtailment, or closing of a major source of employment has caused within three years prior to, or threatens to cause within three years after, the date of the request an unusual and abrupt rise in unemployment of such magnitude that the unemployment rate for the area at the time of the request exceeds the national average, or can reasonably be expected to exceed the national average, by 50 per centum or more unless assistance is provided. Notwithstanding any provision of subsection (b) of this section to the contrary, an area designated under the authority of this paragraph may be given a reasonable time after designation in which to submit the overall economic development program required by section 3142(b)(10) of this title;

(5) notwithstanding any provisions of this section to the contrary, those additional areas which were designated redevelopment areas under the Area Redevelopment Act [42 U.S.C. 2501 et seq.] on or after March 1, 1965: Provided, however, That the continued eligibility of such areas after the first annual review of eligibility conducted in accordance with section 3162 of this title shall be dependent on their qualification for designation under the standards of economic need set forth in subsections (a)(1) through (a)(4) of this section;

(6) those communities or neighborhoods (defined without regard to political or other subdivisions or boundaries) which the Secretary determines have one of the following conditions:

(A) a large concentration of low-income persons;

(B) rural areas having substantial outmigration;

(C) substantial unemployment; or

(D) an actual or threatened abrupt rise of unemployment due to the closing or curtailment of a major source of employment.

No redevelopment area established under this paragraph shall be subject to the requirements of subparagraphs (A) and (C) of paragraph (1) of subsection (a) of section 3131 of this title. No redevelopment area established under this paragraph shall be eligible to meet the requirements of section 3171(a)(1)(B) of this title;

(7) those areas where per capita employment has declined significantly during the next preceding ten-year period for which appropriate statistics are available;

(8) those areas which the Secretary of Labor determines, on the basis of average annual available unemployment statistics, to have experienced unemployment which is both substantial and above the national average for the preceding twenty-four months;

(9) those areas which the Secretary determines have demonstrated long-term economic deterioration.

(b) Size and boundaries of redevelopment areas

The size and boundaries of redevelopment areas shall be as determined by the Secretary: Provided, however, That-

(1) no area shall be designated until it has an approved overall economic development program in accordance with section 3142(b)(10) of this title;

(2) any area which does not submit an acceptable overall economic development program in accordance with section 3142(b)(10) of this title within a reasonable time after notification of eligibility for designation, shall not thereafter be designated prior to the next annual review of eligibility in accordance with section 3162 of this title;

(3) no area shall be designated which does not have a population of at least one thousand five hundred persons, except that this limitation shall not apply to any area designated under subsection (a)(3) or (a)(6) of this section; and

(4) except for areas designated under subsections (a)(3), (a)(4) and (a)(6) hereof, no area shall be designated which is smaller than a "labor area" (as defined by the Secretary of Labor), a county, or a municipality with a population of over twenty-five thousand, whichever in the opinion of the Secretary is appropriate.

Nothing in this subsection shall prevent any municipality, designated as a redevelopment area or eligible to be designated as a redevelopment area, from combining with any other community having mutual economic interests and transportation and marketing patterns for the purposes of such designation.

(c) Use of data compiled by other Secretaries in making determination of redevelopment areas

Upon the request of the Secretary, the Secretary of Labor, the Secretary of Agriculture, the Secretary of the Interior, and such other heads of agencies as may be appropriate are authorized to conduct such special studies, obtain such information, and compile and furnish to the Secretary such data as the Secretary may deem necessary or proper to enable him to make the determinations provided for in this section. The Secretary shall reimburse when appropriate, out of any funds appropriated to carry out the purposes of this chapter, the foregoing officers for any expenditures incurred by them under this section.

(d) Designation of areas most nearly qualifying as redevelopment areas in event of failure of any area in State to qualify under preceding subsections

If a State has no area designated under the preceding subsections of this section as a redevelopment area, the Secretary shall designate as a redevelopment area that area in such State which in his opinion most nearly qualifies under such preceding subsections. An area so designated shall have its eligibility terminated in accordance with the provisions of section 3162 of this title if any other area within the same State subsequently has become qualified or been designated under any other subsection of this section other than subsection (a)(6) as of the time of the annual review prescribed by section 3162 of this title: Provided, That the Secretary shall not terminate any designations of an area in a State as a redevelopment area if to do so would result in such State having no redevelopment area.

(e) "Redevelopment area" defined

As used in this chapter, the term "redevelopment area" refers to any area within the United States which has been designated by the Secretary as a redevelopment area.

( Pub. L. 89–136, title IV, §401, Aug. 26, 1965, 79 Stat. 560 ; Pub. L. 89–794, title XI, §1102, Nov. 8, 1966, 80 Stat. 1477 ; Pub. L. 91–123, title III, §304, Nov. 25, 1969, 83 Stat. 219 ; Pub. L. 92–65, title I, §106, Aug. 5, 1971, 85 Stat. 167 ; Pub. L. 93–423, §§3(a), 6, Sept. 27, 1974, 88 Stat. 1158 , 1161; Pub. L. 94–487, title I, §§113, 114, Oct. 12, 1976, 90 Stat. 2334 .)

References in Text

The Area Redevelopment Act, referred to in subsec. (a)(5), is Pub. L. 87–27, May 1, 1961, 75 Stat. 47 , which was classified principally to former chapter 28 (§2501 et seq.) of this title, and was omitted from the Code, with the exception of sections 2513 and 2514 of this title, which were repealed by Pub. L. 89–15, §9(b), Apr. 26, 1965, 79 Stat. 79 . See sections 3161 and 3162 of this title.

Amendments

1976-Subsec. (a). Pub. L. 94–487, §113, substituted "twelve consecutive months" for "available calendar year" in subpar. (A), "to have experienced unemployment which is both substantial and above the national average for the preceding twelve months" for "were areas of substantial unemployment during the preceding calendar year" in par. (8), and added par. (9).

Subsec. (b). Pub. L. 94–487, §114, substituted "twenty-five" for "two hundred and fifty" in par. (4), and inserted provision allowing municipalities and communities having common interests to combine into one redevelopment area.

1974-Subsec. (a)(3). Pub. L. 93–423, §6, inserted proviso relating to designation of uninhabited Federal or State reservations or trust or restricted Indian owned areas.

Subsec. (a)(8). Pub. L. 93–423, §3(a), added par. (8).

1971-Subsec. (a)(2). Pub. L. 92–65, §106(1), substituted "50 per centum" for "40 per centum".

Subsec. (a)(6). Pub. L. 92–65, §106(2), broadened definition of special impact areas to include communities or neighborhoods without regard to political or other subdivisions or boundaries, having conditions under subpars. (A) to (D), and provided that such areas shall not be subject to requirements of section 3131(a)(1)(A), (B), and (C) of this title or be eligible to meet requirements of section 3171(a)(1)(B) of this title, and struck out reference to section 2763 et seq. of this title.

Subsec. (a)(7). Pub. L. 92–65, §106(2), added par. (7).

1969-Subsec. (a)(6). Pub. L. 91–123, §304(a), added par. (6).

Subsec. (b)(3), (4). Pub. L. 91–123, §304(b), (c), inserted reference to subsec. (a)(6) of this section.

Subsec. (d). Pub. L. 91–123, §304(d), provided for termination of eligibility in accordance with provisions of section 3162 of this title of any designated area if any other area within the same State becomes qualified or designated under any subsection of this section other than subsec. (a)(6).

1966-Subsec. (b)(3). Pub. L. 89–794 substituted "except that this limitation shall not apply to any area designated under subsection (a)(3) of this section; and" for "except for areas designated under subsection (a)(3) of this section, which shall have a population of not less than one thousand persons; and".

Areas Deemed To Be Designated as Areas of Substantial Unemployment

Section 3(b) of Pub. L. 93–423 provided that: "Any area of substantial unemployment so designated under authority of section 102 of title I of the Public Works and Economic Development Act of 1965 [section 3132 of this title] which has not had such designation terminated before the date of enactment of this section [Sept. 27, 1974] shall be deemed for the purposes of such Act [this chapter] to be such an area designated under section 401(a)(8) of such Act [subsec. (a)(8) of this section]."

Executive Order No. 11307

Ex. Ord. No. 11307, Sept. 30, 1966, 31 F.R. 12917, which provided for coordination of Federal programs affecting agricultural and rural area development, was revoked by Ex. Ord. No. 12553, Feb. 25, 1986, 51 F.R. 7237.

Section Referred to in Other Sections

This section is referred to in sections 3131, 3135, 3162, 3171, 3225, 9815 of this title; title 19 section 2371.