Designation procedure
In general
Number of designations
Enterprise communities
Empowerment zones
Period designations may be made
Period for which designation is in effect
In general
Any designation under this section shall remain in effect during the period beginning on the date of the designation and ending on the earliest of—
in the case of an empowerment zone,
in the case of an enterprise community, the close of the 10th calendar year beginning on or after such date of designation,
the termination date designated by the State and local governments as provided for in their nomination, or
the date the appropriate Secretary revokes the designation.
Revocation of designation
The appropriate Secretary may revoke the designation under this section of an area if such Secretary determines that the local government or the State in which it is located—
has modified the boundaries of the area, or
is not complying substantially with, or fails to make progress in achieving the benchmarks set forth in, the strategic plan under subsection (f)(2).
Limitations on designations
No area may be designated under this section unless—
the area is nominated by 1 or more local governments and the State or States in which it is located for designation under this section,
such State or States and the local governments have the authority—
to nominate the area for designation under this section, and
to provide the assurances described in paragraph (3),
such State or States and the local governments provide written assurances satisfactory to the appropriate Secretary that the strategic plan described in the application under subsection (f)(2) for such area will be implemented,
the appropriate Secretary determines that any information furnished is reasonably accurate, and
such State or States and local governments certify that no portion of the area nominated is already included in an empowerment zone or in an enterprise community or in an area otherwise nominated to be designated under this section.
Application
No area may be designated under this section unless the application for such designation—
demonstrates that the nominated area satisfies the eligibility criteria described in section 1392,
includes a strategic plan for accomplishing the purposes of this subchapter that—
describes the coordinated economic, human, community, and physical development plan and related activities proposed for the nominated area,
describes the process by which the affected community is a full partner in the process of developing and implementing the plan and the extent to which local institutions and organizations have contributed to the planning process,
identifies the amount of State, local, and private resources that will be available in the nominated area and the private/public partnerships to be used, which may include participation by, and cooperation with, universities, medical centers, and other private and public entities,
identifies the funding requested under any Federal program in support of the proposed economic, human, community, and physical development and related activities,
identifies baselines, methods, and benchmarks for measuring the success of carrying out the strategic plan, including the extent to which poor persons and families will be empowered to become economically self-sufficient, and
does not include any action to assist any establishment in relocating from one area outside the nominated area to the nominated area, except that assistance for the expansion of an existing business entity through the establishment of a new branch, affiliate, or subsidiary is permitted if—
the establishment of the new branch, affiliate, or subsidiary will not result in a decrease in employment in the area of original location or in any other area where the existing business entity conducts business operations, and
there is no reason to believe that the new branch, affiliate, or subsidiary is being established with the intention of closing down the operations of the existing business entity in the area of its original location or in any other area where the existing business entity conducts business operation, and
includes such other information as may be required by the appropriate Secretary.
Additional designations permitted
In general
Period designations may be made and take effect
Modifications to eligibility criteria, etc.
Poverty rate requirement
In general
Treatment of census tracts with small populations
A population census tract with a population of less than 2,000 shall be treated as having a poverty rate of not less than 25 percent if—
more than 75 percent of such tract is zoned for commercial or industrial use, and
such tract is contiguous to 1 or more other population census tracts which have a poverty rate of not less than 25 percent (determined without regard to this clause).