1. (a) In general In evaluating applications submitted under section 13822(b)(2)(B) of this title, the Secretary shall ensure that—

   1. (1) the residents of the target area to be served (as identified under the strategic development plan) would have an income that is less than the median income for the area (as determined by the Secretary);
   2. (2) the applicant community development corporation possesses the technical and managerial capability necessary to administer a revolving loan fund and has past experience in the development and management of housing, community and economic development programs;

   3. (3) the applicant community development corporation has provided sufficient evidence of the existence of good working relationships with—

      1. (A) local businesses and financial institutions, as well as with the community the corporation proposes to serve; and
      2. (B) local and regional job training programs;

   4. (4) the applicant community development corporation will target job opportunities that arise from revolving loan fund investments under this subpart so that 75 percent of the jobs retained or created under such investments are provided to—

      1. (A) individuals with—

         1. (i) incomes that do not exceed the Federal poverty line; or
         2. (ii) incomes that do not exceed 80 percent of the median income of the area;
      2. (B) individuals who are unemployed or underemployed;
      3. (C) individuals who are participating or have participated in job training programs authorized under title I of the Workforce Investment Act of 1998 [29 U.S.C. 2801 et seq.] or the Family Support Act of 1988 (Public Law 100–485);
      4. (D) individuals whose jobs may be retained as a result of the provision of financing available under this subpart; or
      5. (E) individuals who have historically been underrepresented in the local economy; and
   5. (5) a representative cross section of applicants are approved, including large and small community development corporations, urban and rural community development corporations and community development corporations representing diverse populations.

2. (b) Priority In determining which application to approve under this subpart the Secretary shall give priority to those applicants proposing to serve a target area—

   1. (1) with a median income that does not exceed 80 percent of the median for the area (as determined by the Secretary); and
   2. (2) with a high rate of unemployment, as determined by the Secretary or in which the population loss is at least 7 percent from April 1, 1980, to April 1, 1990, as reported by the Bureau of the Census.

(Pub. L. 103–322, title III, § 31113, Sept. 13, 1994, 108 Stat. 1883; Pub. L. 105–277, div. A, § 101(f) [title VIII, § 405(d)(44), (f)(35)], Oct. 21, 1998, 112 Stat. 2681–337, 2681–428, 2681–434.)

References in Text The Workforce Investment Act of 1998, referred to in subsec. (a)(4)(C), is Pub. L. 105–220, Aug. 7, 1998, 112 Stat. 936, as amended. Title I of the Act is classified principally to chapter 30 (§ 2801 et seq.) of Title 29, Labor. For complete classification of this Act to the Code, see Short Title note set out under section 9201 of Title 20, Education, and Tables.

The Family Support Act of 1988, referred to in subsec. (a)(4)(C), is Pub. L. 100–485, Oct. 13, 1988, 102 Stat. 2343, as amended. For complete classification of this Act to the Code, see Short Title of 1988 Amendments note set out under section 1305 of this title and Tables.

Amendments 1998—Subsec. (a)(4)(C). Pub. L. 105–277, § 101(f) [title VIII, § 405(f)(35)], struck out “the Job Training Partnership Act or” after “authorized under”.

Pub. L. 105–277, § 101(f) [title VIII, § 405(d)(44)], substituted “authorized under the Job Training Partnership Act or title I of the Workforce Investment Act of 1998” for “authorized under the Job Training Partnership Act (29 U.S.C. 1501 et seq.)”.

Effective Date of 1998 Amendment Amendment by section 101(f) [title VIII, § 405(d)(44)] of Pub. L. 105–277 effective Oct. 21, 1998, and amendment by section 101(f) [title VIII, § 405(f)(35)] of Pub. L. 105–277 effective July 1, 2000, see section 101(f) [title VIII, § 405(g)(1), (2)(B)] of Pub. L. 105–277, set out as a note under section 3502 of Title 5, Government Organization and Employees.