Rural Community Development Act

Rural Community Development Act - Authorizes the Secretary of Agriculture to make grants to nonmetropolitan units of local government to help finance specified community development programs including: (1) the acquisition of real property which is blighted, deteriorating, undeveloped or inappropriately developed from the standpoint of sound community development or which is to be used for public works or other public purposes; (2) the acquisition, construction, reconstruction, or installation of public works or other improvements including neighborhood facilities, historic properties, and recreation facilities; and (3) special projects to remove material or architectural barriers which restrict the mobility of elderly and handicapped persons.

Sets forth application and review requirements.

Lists factors, including population growth or decline rates and unemployment rates, which the Secretary shall consider in allocating funds to States and units of general local government.

Authorizes the Secretary to guarantee local government notes or other obligations where such entity is carrying out comprehensive community development programs, and public agency obligations for purposes of financing the acquisition of real property. Permits the Secretary to issue obligations to the Secretary of the Treasury in an amount outstanding at any one time sufficient to enable the Secretary of Agriculture to carry out his obligation under guarantees authorized by this Act. States that obligations guaranteed by this Act shall be subject to Federal taxation.

Prohibits discrimination in the administration of this Act.

Provides a procedure to be followed where the Secretary finds that a recipient of assistance under this Act has failed to substantially comply with any provision of this Act.

Permits interstate agreements with respect to community development planning and programs.

Directs the Secretaries of Agriculture and Housing and Urban Development to conduct a study of the feasibility and desirability of meeting the community development needs of units of general local government which are located within a metropolitan area having a population of 20,000 or less and are rural in character under the provisions of this Act rather than under the Housing and Community Development Act of 1974.

Amends the Housing and Community Development Act of 1974 to prohibit the making of any grant to a unit of local government which is located outside of a metropolitan area and has a population of 20,000 or less.