--- kind: "section" citation: "42 U.S.C. § 5312" title: "42" title_heading: "The Public Health and Welfare" number: "5312" heading: "Use of grants for settlement of outstanding urban renewal loans of units of general local government" release: "119-102" date: "2026-07-12" url: "https://uscodex.org/usc/42/5312" units: - "Chapter 69 — Community Development" --- # §5312. Use of grants for settlement of outstanding urban renewal loans of units of general local government - (a) **Limitation on amounts; prerequisites—** The [Secretary](/usc/42/242q–4.md?p=2) is authorized, notwithstanding any other provision of this chapter, to apply a portion of the grants, not to exceed 20 per centum thereof without the request of the recipient, made or to be made under [section 5303 of this title](/usc/42/5303.md) in any fiscal year pursuant to an [allocation](/usc/42/2021b.md?p=2) under [section 5306 of this title](/usc/42/5306.md) to any [unit of general local government](/usc/42/11851.md?p=12) toward payment of the principal of, and accrued interest on, any temporary loan made in connection with urban renewal [projects](/usc/42/13641.md?p=2) under title I of the Housing Act of 1949 [[42 U.S.C. 1450](https://uscode.house.gov/view.xhtml?req=(/us/usc/t42/s1450)) et seq.] being carried out within the jurisdiction of such [unit of general local government](/usc/42/11851.md?p=12) if— - (1) the [Secretary](/usc/42/242q–4.md?p=2) determines, after consultation with the local [public agency](/usc/42/11851.md?p=8) carrying out the [project](/usc/42/13641.md?p=2) and the chief executive of such [unit of general local government](/usc/42/11851.md?p=12), that the [project](/usc/42/13641.md?p=2) cannot be completed without additional capital grants, or - (2) the local [public agency](/usc/42/11851.md?p=8) carrying out the [project](/usc/42/13641.md?p=2) submits to the [Secretary](/usc/42/242q–4.md?p=2) an appropriate request which is concurred in by the governing body of such [unit of general local government](/usc/42/11851.md?p=12). In determining the amounts to be applied to the payment of temporary loans, the [Secretary](/usc/42/242q–4.md?p=2) shall make an accounting for each [project](/usc/42/13641.md?p=2) taking into consideration the costs incurred or to be incurred, the estimated proceeds upon any sale or disposition of property, and the capital grants approved for the [project](/usc/42/13641.md?p=2). - (b) **Approval by Secretary of financial settlement of urban renewal project—** Upon application by any local [public agency](/usc/42/11851.md?p=8) carrying out an urban renewal [project](/usc/42/13641.md?p=2) under title I of the Housing Act of 1949 [[42 U.S.C. 1450](https://uscode.house.gov/view.xhtml?req=(/us/usc/t42/s1450)) et seq.], which application is approved by the governing body of the [unit of general local government](/usc/42/11851.md?p=12) in which the [project](/usc/42/13641.md?p=2) is located, the [Secretary](/usc/42/242q–4.md?p=2) may approve a financial settlement of such [project](/usc/42/13641.md?p=2) if he finds that a surplus of capital grant funds after full repayment of temporary loan indebtedness will result and may authorize the [unit of general local government](/usc/42/11851.md?p=12) to use such surplus funds, without deduction or offset, in accordance with the provisions of this chapter. ## Source credit (Pub. L. 93–383, title I, § 112, Aug. 22, 1974, 88 Stat. 650; Pub. L. 97–35, title III, § 309(k), Aug. 13, 1981, 95 Stat. 397; Pub. L. 98–181, title I [title I, § 109], Nov. 30, 1983, 97 Stat. 1168; Pub. L. 98–479, title I, § 101(a)(13)(A), Oct. 17, 1984, 98 Stat. 2220.) ## Notes ### Editorial Notes ### References in Text This chapter, referred to in text, was in the original “this title”, meaning title I of Pub. L. 93–383, Aug. 22, 1974, 88 Stat. 633, which is classified principally to this chapter. For complete classification of title I to the Code, see Tables. The Housing Act of 1949, referred to in subsecs. (a) and (b), is act July 15, 1949, ch. 338, 63 Stat. 413. Title I of the Housing Act of 1949 was classified generally to subchapter II (§ 1450 et seq.) of chapter 8A of this title, and was omitted from the Code pursuant to section 5316 of this title which terminated authority to make grants or loans under such title I after Jan. 1, 1975. For complete classification of this Act to the Code, see Short Title note set out under section 1441 of this title and Tables. ### Amendments 1984—Subsec. (c). Pub. L. 98–479 struck out subsec. (c) which related to retention of program income and prerequisites. 1983—Subsec. (c). Pub. L. 98–181 added subsec. (c). 1981—Subsec. (a). Pub. L. 97–35 substituted “5303” for “5303(a)”. ### Statutory Notes and Related Subsidiaries ### Effective Date of 1983 Amendment Amendment by Pub. L. 98–181 applicable only to funds available for fiscal year 1984 and thereafter, see section 110(b) of Pub. L. 98–181, as amended, set out as a note under section 5316 of this title. ### Effective Date of 1981 Amendment Amendment by Pub. L. 97–35 effective Oct. 1, 1981, see section 371 of Pub. L. 97–35, set out as an Effective Date note under section 3701 of Title 12, Banks and Banking.