Conflicting Provisions of Coastal Zone Management Act With Housing and Community Development Act

Because of two apparently conflicting provisions of the law, the Department of Commerce asked whether community development block grant funds might be used to pay the local matching share required for federal grants to states as authorized by the Coastal Zone Management Act of 1972, as amended. GAO premised its consideration upon the inclusion of coastal zone projects within community development programs meeting all the requirements of the community development act. The coastal zone act, which provides for federal grants on a shared basis, specifically precludes the use of Federal funds from other sources to meet the grantee's cost share. The Housing and Community Development Act, which authorizes grants on an entitlement basis, specifically provides for payment of non-federal shares requiried in connection with federal grant-in-aid programs. The legislative history of the coastal zone act shows a firm intention to assure local interest and involvement through financial participation in grant projects. Given the broad scope of the community development act, there is no reasonable basis to limit its clearly stated authority to use community development funds to satisfy the coastal zone act requirement for non-federal matching funds, when the coastal project involved is incorporated as a part of a larger community development program. The terms of the prohibition in the coastal zone act need not be read so broadly as to encompass the formula entitlement programs, the legislative scheme of which permits the federal funds authorized thereunder to be used to satisfy non-federal matching requirements. Those funds effectively lose their character as federal funds as that term is used in the Coastal Zone Management Act, and therefore are available as local resources to satisfy the match required in connection with a project properly incorporated as a part of the grantee's community development programs.