Legal corpus: the complete U.S. Code (59,740 sections, all 53 titles)

Ingested titles 12–51 and 54 from OLRC USLM XML @119-100 (the whole Code
now, uniform edition; Title 53 is reserved/empty). LegalText 11,221 ->
59,740; repo total 105,704 records. Deterministic (byte-identical rerun,
verified on Title 42's 8,356 sections); make check green. make
legal-us-code default now covers every title.

Co-Authored-By: Claude Opus 4.8 <noreply@anthropic.com>
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# 42 U.S.C. § 12701 - National housing goal
## Text
The Congress affirms the national goal that every American family be able to afford a decent home in a suitable environment.
(Pub. L. 101625, title I, § 101, Nov. 28, 1990, 104 Stat. 4085.)
## Notes
Statutory Notes and Related Subsidiaries
Short Title of 2003 AmendmentPub. L. 108186, title I, § 101, Dec. 16, 2003, 117 Stat. 2685, provided that: “This title [amending part E of subchapter II of this chapter] may be cited as the American Dream Downpayment Act.”
Short Title of 2000 AmendmentPub. L. 106569, title I, § 101, Dec. 27, 2000, 114 Stat. 2946, provided that: “This title [amending sections 5307, 12705c, and 12705d of this title] may be cited as the Housing Affordability Barrier Removal Act of 2000.”
Short TitlePub. L. 101625, § 1(a), Nov. 28, 1990, 104 Stat. 4079, provided that: “This Act [see Tables for classification] may be cited as the Cranston-Gonzalez National Affordable Housing Act.” Pub. L. 101625, title II, § 201, Nov. 28, 1990, 104 Stat. 4094, provided that: “This title [enacting subchapter II of this chapter, amending section 1437f of this title, and repealing sections 1437o and 1452b of this title, section 1706e of Title 12, Banks and Banking, and provisions set out as a note under section 1715l of Title 12] may be cited as the HOME Investment Partnerships Act.” Pub. L. 101625, title III, § 301, Nov. 28, 1990, 104 Stat. 4129, provided that: “This subtitle [subtitle A (§§ 301310) of title III of Pub. L. 101625, enacting subchapter III of this chapter] may be cited as the National Homeownership Trust Act.”
Millennial Housing CommissionPub. L. 10773, title II, Nov. 26, 2001, 115 Stat. 671, provided for necessary expenses of the Millennial Housing Commission and set a revised final report due date of May 30, 2002, and Commission termination date of Aug. 30, 2002. Pub. L. 10674, title II, § 206, Oct. 20, 1999, 113 Stat. 1070, as amended by Pub. L. 106554, § 1(a)(4) [div. B, title X, § 1001], Dec. 21, 2000, 114 Stat. 2763, 2763A310, established the Millennial Housing Commission to study and report back to Congress on improving Federal housing policy.
Commission on Affordable Housing and Health Facility Needs for Seniors in the 21st CenturyPub. L. 10773, title II, Nov. 26, 2001, 115 Stat. 671, provided for necessary expenses of the Commission on Affordable Housing and Health Facility Needs for Seniors in the 21st Century and set a revised final report due date of June 30, 2002, and Commission termination date of Sept. 30, 2002. Pub. L. 10674, title V, § 525, Oct. 20, 1999, 113 Stat. 1106, as amended by Pub. L. 106377, § 1(a)(1) [title II, § 230], Oct. 27, 2000, 114 Stat. 1441, 1441A31, established the Commission on Affordable Housing and Health Facility Needs for Seniors in the 21st Century to study and report back to Congress on housing and health care facility needs for seniors.
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# 42 U.S.C. § 12702 - Objective of national housing policy
## Text
The objective of national housing policy shall be to reaffirm the long-established national commitment to decent, safe, and sanitary housing for every American by strengthening a nationwide partnership of public and private institutions able—
(1) to ensure that every resident of the United States has access to decent shelter or assistance in avoiding homelessness;
(2) to increase the Nations supply of decent housing that is affordable to low-income and moderate-income families and accessible to job opportunities;
(3) to improve housing opportunities for all residents of the United States, particularly members of disadvantaged minorities, on a nondiscriminatory basis;
(4) to help make neighborhoods safe and livable;
(5) to expand opportunities for homeownership;
(6) to provide every American community with a reliable, readily available supply of mortgage finance at the lowest possible interest rates; and
(7) to encourage tenant empowerment and reduce generational poverty in federally assisted and public housing by improving the means by which self-sufficiency may be achieved.
(Pub. L. 101625, title I, § 102, Nov. 28, 1990, 104 Stat. 4085.)
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# 42 U.S.C. § 12703 - Purposes of Cranston-Gonzalez National Affordable Housing Act
## Text
The purposes of this Act are—
(1) to help families not owning a home to save for a down payment for the purchase of a home;
(2) to retain wherever feasible as housing affordable to low-income families those dwelling units produced for such purpose with Federal assistance;
(3) to extend and strengthen partnerships among all levels of government and the private sector, including for-profit and nonprofit organizations, in the production and operation of housing affordable to low-income and moderate-income families;
(4) to expand and improve Federal rental assistance for very low-income families; and
(5) to increase the supply of supportive housing, which combines structural features and services needed to enable persons with special needs to live with dignity and independence.
(Pub. L. 101625, title I, § 103, Nov. 28, 1990, 104 Stat. 4085.)
## Notes
Editorial Notes
References in TextThis Act, referred to in text, is Pub. L. 101625, Nov. 28, 1990, 104 Stat. 4079, known as the Cranston-Gonzalez National Affordable Housing Act. For complete classification of this Act to the Code, see Short Title note set out under section 12701 of this title and Tables.
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# 42 U.S.C. § 12704 - Definitions
## Text
As used in this subchapter and in subchapter II:
(1) The term “unit of general local government” means a city, town, township, county, parish, village, or other general purpose political subdivision of a State; the Federated States of Micronesia and Palau, the Marshall Islands, or a general purpose political subdivision thereof; a consortium of such political subdivisions recognized by the Secretary in accordance with section 12746(2) of this title; and any agency or instrumentality thereof that is established pursuant to legislation and designated by the chief executive to act on behalf of the jurisdiction with regard to provisions of this Act.
(2) The term “State” means any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, or any agency or instrumentality thereof that is established pursuant to legislation and designated by the chief executive officer to act on behalf of the State with regard to the provisions of this Act.
(3) The term “jurisdiction” means a State or unit of general local government.
(4) The term “participating jurisdiction” means any State or unit of general local government that has been so designated in accordance with section 12746 of this title.
(5) The term “nonprofit organization” means any private, nonprofit organization (including a State or locally chartered, nonprofit organization) that—
(A) is organized under State or local laws,
(B) has no part of its net earnings inuring to the benefit of any member, founder, contributor, or individual,
(C) complies with standards of financial accountability acceptable to the Secretary, and
(D) has among its purposes significant activities related to the provision of decent housing that is affordable to low-income and moderate-income persons.
(6) The term “community housing development organization” means a nonprofit organization as defined in paragraph (5), that—
(A) has among its purposes the provision of decent housing that is affordable to low-income and moderate-income persons;
(B) maintains, through significant representation on the organizations governing board and otherwise, accountability to low-income community residents and, to the extent practicable, low-income beneficiaries with regard to decisions on the design, siting, development, and management of affordable housing;
(C) has a demonstrated capacity for carrying out activities assisted under this Act; and
(D) has a history of serving the local community or communities within which housing to be assisted under this Act is to be located.
In the case of an organization serving more than one county, the Secretary may not require that such organization, to be considered a community housing development organization for purposes of this Act, include as members on the organizations governing board low-income persons residing in each county served.
(7) The term “government-sponsored mortgage finance corporations” means the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, and the Federal Agricultural Mortgage Corporation.
(8) The term “housing” includes manufactured housing and manufactured housing lots and elder cottage housing opportunity units that are small, free-standing, barrier-free, energy-efficient, removable, and designed to be installed adjacent to existing 1- to 4-family dwellings.
(9) The term “very low-income families” means low-income families whose incomes do not exceed 50 percent of the median family income for the area, as determined by the Secretary with adjustments for smaller and larger families, except that the Secretary may establish income ceilings higher or lower than 50 percent of the median for the area on the basis of the Secretarys findings that such variations are necessary because of prevailing levels of construction costs or fair market rents, or unusually high or low family incomes.
(10) The term “low-income families” means families whose incomes do not exceed 80 percent of the median income for the area, as determined by the Secretary with adjustments for smaller and larger families, except that the Secretary may establish income ceilings higher or lower than 80 percent of the median for the area on the basis of the Secretarys findings that such variations are necessary because of prevailing levels of construction costs or fair market rents, or unusually high or low family incomes.
(11) The term “families” has the same meaning given that term by section 1437a of this title.
(12) The term “security” has the same meaning as in section 77b of title 15.
(13) The term “displaced homemaker” means an individual who—
(A) is an adult;
(B) has not worked full-time full-year in the labor force for a number of years but has, during such years, worked primarily without remuneration to care for the home and family; and
(C) is unemployed or underemployed and is experiencing difficulty in obtaining or upgrading employment.
(14) The term “first-time homebuyer” means an individual and his or her spouse who have not owned a home during the 3-year period prior to purchase of a home with assistance under subchapter II, except that—
(A) any individual who is a displaced homemaker may not be excluded from consideration as a first-time homebuyer under this paragraph on the basis that the individual, while a homemaker, owned a home with his or her spouse or resided in a home owned by the spouse;
(B) any individual who is a single parent may not be excluded from consideration as a first-time homebuyer under this paragraph on the basis that the individual, while married, owned a home with his or her spouse or resided in a home owned by the spouse; and
(C) an individual shall not be excluded from consideration as a first-time homebuyer under this paragraph on the basis that the individual owns or owned, as a principal residence during such 3-year period, a dwelling unit whose structure is—
(i) not permanently affixed to a permanent foundation in accordance with local or other applicable regulations, or
(ii) not in compliance with State, local, or model building codes, or other applicable codes, and cannot be brought into compliance with such codes for less than the cost of constructing a permanent structure.
(15) The term “single parent” means an individual who—
(A) is unmarried or legally separated from a spouse; and
(B) (i) has 1 or more minor children for whom the individual has custody or joint custody; or
(ii) is pregnant.
(16) The term “Secretary” means the Secretary of Housing and Urban Development, unless otherwise specified in this Act.
(17) The term “substantial rehabilitation” means the rehabilitation of residential property at an average cost in excess of $25,000 per dwelling unit.
(18) The term “public housing agency” has the meaning given the term in section 1437a(b) of this title.
(19) The term “metropolitan city” has the meaning given the term in section 5302(a)(4) of this title.
(20) The term “urban county” has the meaning given the term in section 5302(a)(6) of this title.
(21) The term “certification” means a written assertion, based on supporting evidence, which shall be kept available for inspection by the Secretary, the Inspector General and the public, which assertion shall be deemed to be accurate for purposes of this Act, unless the Secretary determines otherwise after inspecting the evidence and providing due notice and opportunity for comment.
(23) 11 So in original. Probably should be “(22)”. The term “to demonstrate to the Secretary” means to submit to the Secretary a written assertion together with supporting evidence that, in the determination of the Secretary, supports the accuracy of the assertion.
(24) 22 So in original. Two pars. (24) have been enacted. The term “insular area” means any of the following: Guam, the Northern Mariana Islands, the Virgin Islands, and American Samoa.
(24) 2 The term “energy efficient mortgage” means a mortgage that provides financing incentives for the purchase of energy efficient homes, or that provides financing incentives to make energy efficiency improvements in existing homes by incorporating the cost of such improvements in the mortgage.
(25) The term “energy efficient mortgage” means a mortgage that provides financing incentives for the purchase of energy efficient homes, or that provides financing incentives to make energy efficiency improvements in existing homes by incorporating the cost of such improvements in the mortgage.
(Pub. L. 101625, title I, § 104, Nov. 28, 1990, 104 Stat. 4085; Pub. L. 102229, title I, Dec. 12, 1991, 105 Stat. 1709; Pub. L. 101230, § 2, Dec. 12, 1991, 105 Stat. 1720; Pub. L. 102486, title I, § 105(a), Oct. 24, 1992, 106 Stat. 2792; Pub. L. 102550, title II, §§ 211(a)(1), 217(a), 218, 219, title IX, § 914(a), Oct. 28, 1992, 106 Stat. 3756, 3760, 3761, 3877; Pub. L. 103233, title II, § 201, Apr. 11, 1994, 108 Stat. 363.)
## Notes
Editorial Notes
References in TextThis Act, referred to in pars. (1), (2), (6), (16), and (21), is Pub. L. 101625, Nov. 28, 1990, 104 Stat. 4079, known as the Cranston-Gonzalez National Affordable Housing Act. For complete classification of this Act to the Code, see Short Title note set out under section 12701 of this title and Tables.
Amendments1994—Par. (2). Pub. L. 103233 struck out “and” after “Columbia,” and inserted before period at end “, or any agency or instrumentality thereof that is established pursuant to legislation and designated by the chief executive officer to act on behalf of the State with regard to the provisions of this Act”. 1992—Par. (1). Pub. L. 102550, § 211(a)(1), amended this section to read as if amendment made by Pub. L. 102230, § 2(1), had not been enacted. See 1991 Amendment note below. Par. (6). Pub. L. 102550, § 217(a), inserted concluding provisions. Par. (8). Pub. L. 102550, § 218, inserted before period at end “and elder cottage housing opportunity units that are small, free-standing, barrier-free, energy-efficient, removable, and designed to be installed adjacent to existing 1- to 4-family dwellings”. Par. (14)(C). Pub. L. 102550, § 219, added subpar. (C). Par. (24). Pub. L. 102550, § 211(a)(1), amended this section to read as if amendment made by Pub. L. 102230, § 2(2), had not been enacted. See 1991 Amendment note below. Pub. L. 102486 added par. (24) defining “energy efficient mortgage”. Par. (25). Pub. L. 102550, § 914(a), added par. (25). 1991—Par. (1). Pub. L. 102230, § 2(1), directed the substitution of “the insular areas” for “Guam, the Northern Mariana Islands, the Virgin Islands, American Samoa, the Federated States of Micronesia and Palau, the Marshall Islands”. See 1992 Amendment note above. Pub. L. 102229 struck out “Guam, the Northern Mariana Islands, the Virgin Islands, American Samoa,” after “of a State;”. Par. (24). Pub. L. 102230, § 2(2), directed the addition of a par. (24) to read as follows: “(24) The term insular areas means Guam, the Northern Mariana Islands, the United States Virgin Islands, and American Samoa.” See 1992 Amendment note above. Pub. L. 102229 added par. (24) defining “insular area”.
Statutory Notes and Related Subsidiaries
Effective Date of 1994 AmendmentAmendment by Pub. L. 103233 applicable with respect to any amounts made available to carry out subchapter II (§ 12721 et seq.) of this chapter after Apr. 11, 1994, and any amounts made available to carry out that subchapter before that date that remain uncommitted on that date, with Secretary to issue any regulations necessary to carry out such amendment not later than end of 45-day period beginning on that date, see section 209 of Pub. L. 103233, set out as a note under section 5301 of this title.
Effective Date of 1992 AmendmentPub. L. 102550, title II, § 211(b), Oct. 28, 1992, 106 Stat. 3757, provided that: “The amendments made by subsection (a) [amending this section and section 12747 of this title] shall apply with respect to fiscal year 1993 and thereafter.” Pub. L. 102550, title II, § 223, Oct. 28, 1992, 106 Stat. 3762, provided that: “The amendments made by this title [enacting section 12810 of this title and amending this section and sections 12705, 12724, 12742, 12745 to 12748, 12750, 12771, 12773, 12774, 12782, and 12784 of this title] shall apply to unexpended funds allocated under title II of the Cranston-Gonzalez National Affordable Housing Act [42 U.S.C. 12721 et seq.] in fiscal year 1992, except as otherwise specifically provided.”
RegulationsPub. L. 102550, title II, § 222, Oct. 28, 1992, 106 Stat. 3762, provided that: “The Secretary of Housing and Urban Development shall issue any final regulations necessary to implement the provisions of this title [enacting section 12810 of this title, amending this section and sections 12705, 12724, 12742, 12745 to 12748, 12750, 12771, 12773, 12774, 12782, and 12784 of this title, and enacting provisions set out as notes under this section and sections 12746, 12747, and 12750 of this title] and the amendments made by this title not later than the expiration of the 180-day period beginning on the date of the enactment of this Act [Oct. 28, 1992], except as expressly provided otherwise in this title and the amendments made by this title. Such regulations shall be issued after notice and opportunity for public comment pursuant to the provisions of section 553 of title 5, United States Code (notwithstanding subsections (a)(2), (b)(B), and (d)(3) of such section).”
Transition RulePub. L. 102550, title II, § 217(b), Oct. 28, 1992, 106 Stat. 3760, provided that: “For the purposes of determining compliance with the requirements of section 104(6) of the Cranston-Gonzalez National Affordable Housing Act [42 U.S.C. 12704(6)], the Secretary of Housing and Urban Development may provide an exception for organizations that meet the definition of community housing development organization, except for significant representation of low-income community residents on the board, if such organization fulfills such requirement within 6 months of receiving funds under title II of such Act [42 U.S.C. 12721 et seq.] or September 30, 1993, whichever is sooner.”
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# 42 U.S.C. § 12705b - Definition of regulatory barriers to affordable housing
## Text
For purposes of sections 12705a to 12705d of this title, the terms “regulatory barriers to affordable housing” and “regulatory barriers” mean any public policies (including policies embodied in statutes, ordinances, regulations, or administrative procedures or processes) required to be identified by a jurisdiction in connection with its comprehensive housing affordability strategy under section 12705(b)(4) of this title. Such terms do not include policies relating to rents imposed on a structure by a jurisdiction or policies that have served to create or preserve, or can be shown to create or preserve, housing for low- and very low-income families, including displacement protections, demolition controls, replacement housing requirements, relocation benefits, housing trust funds, dedicated funding sources, waiver of local property taxes and builder fees, inclusionary zoning, rental zoning overlays, long-term use restrictions, and rights of first refusal.
(Pub. L. 102550, title XII, § 1203, Oct. 28, 1992, 106 Stat. 3938.)
## Notes
Editorial Notes
References in TextSections 12705a to 12705d of this title, referred to in text, were in the original “this title”, meaning title XII of Pub. L. 102550, Oct. 28, 1992, 106 Stat. 3938, known as the Removal of Regulatory Barriers to Affordable Housing Act of 1992, which enacted sections 12705a to 12705d of this title, amended sections 5306 and 12705 of this title, and enacted provisions set out as notes under section 12705a of this title.
Codification Section was enacted as part of the Removal of Regulatory Barriers to Affordable Housing Act of 1992, and also as part of the Housing and Community Development Act of 1992, and not as part of the Cranston-Gonzalez National Affordable Housing Act which comprises this chapter.
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# 42 U.S.C. § 12705c - Grants for regulatory barrier removal strategies and implementation
## Text
(a) Funding There is authorized to be appropriated for grants under subsections (b) and (c) 11 See References in Text note below. such sums as may be necessary for each of fiscal years 2001, 2002, 2003, 2004, and 2005.
(b) Grant authority The Secretary may make grants to States and units of general local government (including consortia of such governments) for the costs of developing and implementing strategies to remove regulatory barriers to affordable housing, including the costs of—
(1) identifying, assessing, and monitoring State and local regulatory barriers;
(2) identifying State and local policies (including laws and regulations) that permit or encourage regulatory barriers;
(3) developing legislation to provide State, local, or regional programs to reduce regulatory barriers and developing a strategy for adoption of such legislation;
(4) developing model State or local standards and ordinances to reduce regulatory barriers and assisting in the adoption and use of the standards and ordinances;
(5) carrying out the simplification and consolidation of administrative procedures and processes constituting regulatory barriers to affordable housing, including the issuance of permits; and
(6) providing technical assistance and information to units of general local government for implementation of legislative and administrative reform programs to remove regulatory barriers to affordable housing.
(c) Repealed. Pub. L. 106569, title I, § 102(c), Dec. 27, 2000, 114 Stat. 2947
(d) Definitions For purposes of this section, the terms “regulatory barriers to affordable housing” and “regulatory barriers” have the meaning given such terms in section 12705b of this title.
(e) Application and selection The Secretary shall provide for the form and manner of applications for grants under this section, which shall describe how grant amounts will assist the State or unit of general local government in developing and implementing strategies to remove regulatory barriers to affordable housing. The Secretary shall establish criteria for approval of applications under this subsection and such criteria shall require that grant amounts be used in a manner consistent with the strategy contained in the comprehensive housing affordability strategy for the jurisdiction pursuant to section 12705(b)(4) of this title.
(f) Selection of grantees To the extent amounts are made available to carry out this section, the Secretary shall provide grants on a competitive basis to eligible grantees based on the proposed uses of such amounts, as provided in applications under subsection (e).
(g) Coordination with clearinghouse Each State and unit of general local government receiving a grant under this section, shall consult, coordinate, and exchange information with the clearinghouse established under section 12705d of this title.
(h) Reports to Secretary Each State and unit of general local government receiving a grant under this section shall submit a report to the Secretary, not less than 12 months after receiving the grant, describing any activities carried out with the grant amounts. The report shall contain an assessment of the impact of any regulatory barriers identified by the grantee on the housing patterns of minorities.
(Pub. L. 102550, title XII, § 1204, Oct. 28, 1992, 106 Stat. 3938; Pub. L. 106569, title I, § 102(a)(e), Dec. 27, 2000, 114 Stat. 2946, 2947.)
## Notes
Editorial Notes
References in TextSubsection (c) of this section, referred to in subsec. (a), was repealed by Pub. L. 106569, title I, § 102(c), Dec. 27, 2000, 114 Stat. 2947.
Codification Section was enacted as part of the Removal of Regulatory Barriers to Affordable Housing Act of 1992, and also as part of the Housing and Community Development Act of 1992, and not as part of the Cranston-Gonzalez National Affordable Housing Act which comprises this chapter. Section is comprised of section 1204 of Pub. L. 102550. Subsection (i) of section 1204 of Pub. L. 102550 amended section 5306 of this title.
Amendments2000—Subsec. (a). Pub. L. 106569, § 102(a), amended heading and text of subsec. (a) generally. Prior to amendment, text read as follows: “The amounts set aside under section 5307 of this title for the purpose of this subsection shall be available for grants under subsection (b) and (c) of this section.” Subsec. (b). Pub. L. 106569, § 102(b)(1), (2), substituted “Grant authority” for “State grants” in heading and inserted “and units of general local government (including consortia of such governments)” after “States” in introductory provisions. Subsec. (b)(3). Pub. L. 106569, § 102(b)(3), substituted “State, local, or regional programs to reduce” for “a State program to reduce State and local”. Subsec. (b)(4). Pub. L. 106569, § 102(b)(4), inserted “or local” after “State”. Subsec. (b)(5). Pub. L. 106569, § 102(b)(5), struck out “State” before “administrative procedures”. Subsec. (c). Pub. L. 106569, § 102(c), struck out heading and text of subsec. (c) which related to local grants. Subsec. (e). Pub. L. 106569, § 102(d), substituted “and such criteria shall require that grant amounts be used in a manner consistent with the strategy contained in the comprehensive housing affordability strategy for the jurisdiction pursuant to section 12705(b)(4) of this title” for “and for the selection of units of general local government to receive grants under subsection (f)(2) of this section” before period at end. Subsec. (f). Pub. L. 106569, § 102(e), amended heading and text of subsec. (f) generally, substituting provisions relating to selection of grantees for provisions relating to allocation of amounts.
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# 42 U.S.C. § 12705d - Regulatory barriers clearinghouse
## Text
(a) Establishment The Secretary of Housing and Urban Development shall establish a clearinghouse to serve as a national repository to receive, collect, process, assemble, and disseminate information regarding—
(1) State and local laws, regulations, and policies affecting the development, maintenance, improvement, availability, or cost of affordable housing (including tax policies affecting land and other property, land use controls, zoning ordinances, building codes, fees and charges, growth limits, and policies that affect the return on investment in residential property), and the prevalence and effects on affordable housing of such laws, regulations, and policies;
(2) State and local activities, strategies, and plans to remove or ameliorate the negative effects, if any, of such laws, regulations, and policies, including particularly innovative or successful activities, strategies, and plans; and
(3) State and local strategies, activities and plans that promote affordable housing and housing desegregation, including particularly innovative or successful strategies, activities, and plans.
(b) Functions The clearinghouse established under subsection (a) shall—
(1) respond to inquiries from State and local governments, other organizations, and individuals requesting information regarding State and local laws, regulations, policies, activities, strategies, and plans described in subsection (a);
(2) provide assistance in identifying, examining, and understanding such laws, regulations, policies, activities, strategies, and plans; and
(3) by making available through a World Wide Web site of the Department, by electronic mail, or otherwise, provide to each housing agency of a unit of general local government that serves an area having a population greater than 100,000, an index of all State and local strategies and plans submitted under subsection (a) to the clearinghouse, which—
(A) shall describe the types of barriers to affordable housing that the strategy or plan was designed to ameliorate or remove; and
(B) shall, not later than 30 days after submission to the clearinghouse of any new strategy or plan, be updated to include the new strategy or plan submitted.
(c) Organization The clearinghouse under this section shall be established within the Office of Policy Development of the Department of Housing and Urban Development and shall be under the direction of the Assistant Secretary for Policy Development and Research.
(d) Timing The clearinghouse under this section (as amended by section 103 of the Housing Affordability Barrier Removal Act of 2000) shall be established and commence carrying out the functions of the clearinghouse under this section not later than 1 year after December 27, 2000. The Secretary of Housing and Urban Development may comply with the requirements under this section by reestablishing the clearinghouse that was originally established to comply with this section and updating and improving such clearinghouse to the extent necessary to comply with the requirements of this section as in effect pursuant to the enactment of such Act.
(Pub. L. 102550, title XII, § 1205, Oct. 28, 1992, 106 Stat. 3940; Pub. L. 106569, title I, § 103, Dec. 27, 2000, 114 Stat. 2947.)
## Notes
Editorial Notes
References in TextThe Housing Affordability Barrier Removal Act of 2000, referred to in subsec. (d), is title I of Pub. L. 106569, Dec. 27, 2000, 114 Stat. 2946. Section 103 of the Act amended this section. For complete classification of this Act to the Code, see Short Title of 2000 Amendment note set out under section 12701 of this title and Tables.
Codification Section was enacted as part of the Removal of Regulatory Barriers to Affordable Housing Act of 1992, and also as part of the Housing and Community Development Act of 1992, and not as part of the Cranston-Gonzalez National Affordable Housing Act which comprises this chapter.
Amendments2000—Subsec. (a). Pub. L. 106569, § 103(1)(A), substituted “serve as a national repository to receive, collect, process, assemble, and disseminate” for “receive, collect, process, and assemble” in introductory provisions. Subsec. (a)(1). Pub. L. 106569, § 103(1)(B), substituted “(including” for “, including” and inserted “), and the prevalence and effects on affordable housing of such laws, regulations, and policies” before semicolon at end. Subsec. (a)(2). Pub. L. 106569, § 103(1)(C), inserted before semicolon “, including particularly innovative or successful activities, strategies, and plans”. Subsec. (a)(3). Pub. L. 106569, § 103(1)(D), inserted before period at end “, including particularly innovative or successful strategies, activities, and plans”. Subsec. (b)(3). Pub. L. 106569, § 103(2), added par. (3). Subsecs. (c), (d). Pub. L. 106569, § 103(3), added subsecs. (c) and (d).
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# 42 U.S.C. § 12706 - Certification
## Text
The Secretary shall, by regulation or otherwise, as deemed by the Secretary to be appropriate, require any application for housing assistance under subchapter II of this chapter, assistance under the Housing and Community Development Act of 1974, or assistance under the McKinney-Vento Homeless Assistance Act [42 U.S.C. 11301 et seq.], to contain or be accompanied by a certification by an appropriate State or local public official that the proposed housing activities are consistent with the housing strategy of the jurisdiction to be served.
(Pub. L. 101625, title I, § 106, Nov. 28, 1990, 104 Stat. 4091; Pub. L. 106400, § 2, Oct. 30, 2000, 114 Stat. 1675.)
## Notes
Editorial Notes
References in TextThe Housing and Community Development Act of 1974, referred to in text, is Pub. L. 93383, Aug. 22, 1974, 88 Stat. 633. For complete classification of this Act to the Code, see Short Title note set out under section 5301 of this title and Tables. The McKinney-Vento Homeless Assistance Act, referred to in text, is Pub. L. 10077, July 22, 1987, 101 Stat. 482, which is classified principally to chapter 119 (§ 11301 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 11301 of this title and Tables.
Amendments2000—Pub. L. 106400 substituted “McKinney-Vento Homeless Assistance Act” for “Stewart B. McKinney Homeless Assistance Act”.
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# 42 U.S.C. § 12707 - Citizen participation
## Text
(a) In general Before submitting a housing strategy under this section,11 So in original. The words “this section” probably should be “section 12705 of this title”. a jurisdiction shall—
(1) make available to its citizens, public agencies, and other interested parties information concerning the amount of assistance the jurisdiction expects to receive and the range of investment or other uses of such assistance that the jurisdiction may undertake;
(2) publish a proposed housing strategy in a manner that, in the determination of the Secretary, affords affected citizens, public agencies, and other interested parties a reasonable opportunity to examine its content and to submit comments on the proposed housing strategy;
(3) hold one or more public hearings to obtain the views of citizens, public agencies, and other interested parties on the housing needs of the jurisdiction; and
(4) provide citizens, public agencies, and other interested parties with reasonable access to records regarding any uses of any assistance the jurisdiction may have received during the preceding 5 years.
(b) Notice and comment Before submitting any performance report or substantial amendment to a housing strategy under this section,1 a participating jurisdiction shall provide citizens with reasonable notice of, and opportunity to comment on, such performance report or substantial amendment prior to its submission.
(c) Consideration of comments A participating jurisdiction shall consider any comments or views of citizens in preparing a final housing strategy, amendment to a housing strategy or performance report for submission. A summary of such comments or views shall be attached when a housing strategy, amendment to a housing strategy or performance report is submitted. The submitted housing strategy, amendment, or report shall be made available to the public.
(d) Regulations The Secretary shall by regulation establish procedures appropriate and practicable for providing a fair hearing and timely resolution of citizen complaints related to housing strategies or performance reports.
(Pub. L. 101625, title I, § 107, Nov. 28, 1990, 104 Stat. 4091.)
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# 42 U.S.C. § 12708 - Compliance
## Text
(a) Performance reports (1) In general Each participating jurisdiction shall annually review and report, in a form acceptable to the Secretary, on the progress it has made in carrying out its housing strategy, which report shall include an evaluation of the jurisdictions progress in meeting its goal established in section 12705(b)(15) 11 See References in Text note below. of this title, and information on the number and types of households served, including the number of very low-income, low-income, and moderate-income persons served and the racial and ethnic status of persons served that will be assisted with funds made available.
(2) Submission The Secretary shall (A) establish dates for submission of reports under this subsection, and (B) review such reports and make such recommendations as the Secretary deems appropriate to carry out the purposes of this Act.
(3) Failure to report If a jurisdiction fails to submit a report satisfactory to the Secretary in a timely manner, assistance to the jurisdiction under subchapter II of this chapter or the other programs referred to in section 12706 of this title may be—
(A) suspended until a report satisfactory to the Secretary is submitted; or
(B) withdrawn and reallocated if the Secretary finds, after notice and opportunity for a hearing, that the jurisdiction will not submit a satisfactory report.
(b) Performance review by Secretary (1) In general The Secretary shall ensure that activities of each jurisdiction required to submit a housing strategy under section 12705 of this title are reviewed not less frequently than annually. Such review shall include, insofar as practicable, on-site visits by employees of the Department of Housing and Urban Development and shall include an assessment of the jurisdictions—
(A) management of funds made available under programs administered by the Secretary;
(B) compliance with its housing strategy;
(C) accuracy in the preparation of performance reports under subsection (a); and
(D) efforts to ensure that housing assisted under programs administered by the Secretary are in compliance with contractual agreements and the requirements of law.
(2) Report by Secretary The Secretary shall report on the performance review in writing. The Secretary shall give the jurisdiction not less than 30 days to review and comment on the report. After taking into consideration the comments of the jurisdiction, the Secretary may revise the report and shall make the jurisdictions comments and the report, with any revisions, readily available to the public within 30 days after receipt of the jurisdictions comments.
(c) Review by courts The adequacy of information submitted under section 12705(b)(4) of this title shall not be reviewable by any Federal, State, or other court. Review of a housing strategy by any Federal, State, or other court shall be limited to determining whether the process of development and the content of the strategy are in substantial compliance with the requirements of this Act. During the pendency of any action challenging the adequacy of a housing strategy or the action of the Secretary in approving a strategy, the court shall not have the authority to enjoin activities taken by the jurisdiction to implement an approved housing strategy. Any housing assisted during the pendency of such action shall not be subject to any order of the court resulting from such action.
(Pub. L. 101625, title I, § 108, Nov. 28, 1990, 104 Stat. 4092.)
## Notes
Editorial Notes
References in TextSection 12705(b)(15) of this title, referred to in subsec. (a)(1), was redesignated section 12705(b)(16) of this title by Pub. L. 102550, title II, § 220(c)(1), Oct. 28, 1992, 106 Stat. 3762, and was subsequently redesignated section 12705(b)(18) of this title by Pub. L. 105276, title V, § 583(4)(A), Oct. 21, 1998, 112 Stat. 2644. This Act, referred to in subsecs. (a)(2) and (c), is Pub. L. 101625, Nov. 28, 1990, 104 Stat. 4079, known as the Cranston-Gonzalez National Affordable Housing Act. For complete classification of this Act to the Code, see Short Title note set out under section 12701 of this title and Tables.
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# 42 U.S.C. § 12709 - Energy efficiency standards
## Text
(a) Establishment (1) In general The Secretary of Housing and Urban Development and the Secretary of Agriculture shall, not later than September 30, 2006, jointly establish, by rule, energy efficiency standards for—
(A) new construction of public and assisted housing and single family and multifamily residential housing (other than manufactured homes) subject to mortgages insured under the National Housing Act [12 U.S.C. 1701 et seq.];
(B) new construction of single family housing (other than manufactured homes) subject to mortgages insured, guaranteed, or made by the Secretary of Agriculture under title V of the Housing Act of 1949 [42 U.S.C. 1471 et seq.]; and
(C) rehabilitation and new construction of public and assisted housing funded by HOPE VI revitalization grants under section 1437v of this title.
(2) Contents Such standards shall meet or exceed the requirements of the 2006 International Energy Conservation Code (hereafter in this section referred to as “the 2006 IECC”), or, in the case of multifamily high rises, the requirements of the American Society of Heating, Refrigerating, and Air-Conditioning Engineers Standard 90.12004 (hereafter in this section referred to as “ASHRAE Standard 90.12004”), and shall be cost-effective with respect to construction and operating costs on a life-cycle cost basis. In developing such standards, the Secretaries shall consult with an advisory task force composed of homebuilders, national, State, and local housing agencies (including public housing agencies), energy agencies, building code organizations and agencies, energy efficiency organizations, utility organizations, low-income housing organizations, and other parties designated by the Secretaries.
(b) International Energy Conservation Code If the Secretaries have not, by September 30, 2006, established energy efficiency standards under subsection (a), all new construction and rehabilitation of housing specified in such subsection shall meet the requirements of the 2006 IECC, or, in the case of multifamily high rises, the requirements of ASHRAE Standard 90.12004.
(c) Revisions of the International Energy Conservation Code If the requirements of the 2006 IECC, or, in the case of multifamily high rises, ASHRAE Standard 90.12004, are revised at any time, the Secretaries shall, not later than 1 year after such revision, amend the standards established under subsection (a) to meet or exceed the requirements of such revised code or standard unless the Secretaries determine that compliance with such revised code or standard would not result in a significant increase in energy efficiency or would not be technologically feasible or economically justified.
(d) Failure to amend the standards If the Secretary of Housing and Urban Development and the Secretary of Agriculture have not, within 1 year after the requirements of the 2006 IECC or the ASHRAE Standard 90.12004 are revised, amended the standards or made a determination under subsection (c), all new construction and rehabilitation of housing specified in subsection (a) shall meet the requirements of the revised code or standard if—
(1) the Secretary of Housing and Urban Development or the Secretary of Agriculture make a determination that the revised codes do not negatively affect the availability or affordability of new construction of assisted housing and single family and multifamily residential housing (other than manufactured homes) subject to mortgages insured under the National Housing Act (12 U.S.C. 1701 et seq.) or insured, guaranteed, or made by the Secretary of Agriculture under title V of the Housing Act of 1949 (42 U.S.C. 1471 et seq.), respectively; and
(2) the Secretary of Energy has made a determination under section 6833 of this title that the revised code or standard would improve energy efficiency.
(Pub. L. 101625, title I, § 109, Nov. 28, 1990, 104 Stat. 4093; Pub. L. 102486, title I, § 101(c)(1), Oct. 24, 1992, 106 Stat. 2786; Pub. L. 10958, title I, § 153, Aug. 8, 2005, 119 Stat. 649; Pub. L. 110140, title IV, § 481, Dec. 19, 2007, 121 Stat. 1648.)
## Notes
Editorial Notes
References in TextThe National Housing Act, referred to in subsecs. (a)(1)(A) and (d)(1), is act June 27, 1934, ch. 847, 48 Stat. 1246, which is classified principally to chapter 13 (§ 1701 et seq.) of Title 12, Banks and Banking. For complete classification of this Act to the Code, see section 1701 of Title 12 and Tables. The Housing Act of 1949, referred to in subsecs. (a)(1)(B) and (d)(1), is act July 15, 1949, ch. 338, 63 Stat. 413. Title V of the Act is classified generally to subchapter III (§ 1471 et seq.) of chapter 8A of this title. For complete classification of this Act to the Code, see Short Title note set out under section 1441 of this title and Tables.
Amendments2007—Pub. L. 110140, § 481(6), substituted “2004” for “1989” wherever appearing in subsecs. (a) to (c). Subsec. (a)(1)(C). Pub. L. 110140, § 481(1)(A), struck out “, where such standards are determined to be cost effective by the Secretary of Housing and Urban Development” before period at end. Subsec. (a)(2). Pub. L. 110140, § 481(1)(B), (5), in first sentence, substituted “2006 International Energy Conservation Code” for “Council of American Building Officials Model Energy Code, 1992” and “the 2006 IECC” for “CABO Model Energy Code, 1992” and struck out “, and, with respect to rehabilitation and new construction of public and assisted housing funded by HOPE VI revitalization grants under section 1437v of this title, the 2003 International Energy Conservation Code” before “, and shall be”. Subsec. (b). Pub. L. 110140, § 481(2), (5), in heading, substituted “International Energy Conservation” for “Model Energy” and, in text, inserted “and rehabilitation” after “all new construction”, substituted “the 2006 IECC” for “CABO Model Energy Code, 1992”, and struck out “, and, with respect to rehabilitation and new construction of public and assisted housing funded by HOPE VI revitalization grants under section 1437v of this title, the 2003 International Energy Conservation Code” before period at end. Subsec. (c). Pub. L. 110140, § 481(3), (5), in heading, struck out “Model Energy Code and” after “Revisions of” and, in text, substituted “the 2006 IECC” for “CABO Model Energy Code, 1992”, and struck out “, or, with respect to rehabilitation and new construction of public and assisted housing funded by HOPE VI revitalization grants under section 1437v of this title, the 2003 International Energy Conservation Code” before “, are revised”. Subsec. (d). Pub. L. 110140, § 481(4), added subsec. (d). 2005—Subsec. (a)(1). Pub. L. 10958, § 153(1)(A)(i), substituted “September 30, 2006” for “1 year after October 24, 1992” in introductory provisions. Subsec. (a)(1)(C). Pub. L. 10958, § 153(1)(A)(ii)(iv), added subpar. (C). Subsec. (a)(2). Pub. L. 10958, § 153(1)(B), inserted “, and, with respect to rehabilitation and new construction of public and assisted housing funded by HOPE VI revitalization grants under section 1437v of this title, the 2003 International Energy Conservation Code” after “90.11989)”. Subsec. (b). Pub. L. 10958, § 153(2), substituted “by September 30, 2006” for “within 1 year after October 24, 1992” and inserted “, and, with respect to rehabilitation and new construction of public and assisted housing funded by HOPE VI revitalization grants under section 1437v of this title, the 2003 International Energy Conservation Code” before period at end. Subsec. (c). Pub. L. 10958, § 153(3), inserted “and the International Energy Conservation Code” after “Model Energy Code” in heading and “, or, with respect to rehabilitation and new construction of public and assisted housing funded by HOPE VI revitalization grants under section 1437v of this title, the 2003 International Energy Conservation Code” after “90.11989” in text. 1992—Pub. L. 102486 amended section generally. Prior to amendment, section read as follows: “The Secretary of Housing and Urban Development shall, not later than one year after November 28, 1990, promulgate energy efficiency standards for new construction of public and assisted housing and single-family and multifamily residential housing (other than manufactured homes) subject to mortgages under the National Housing Act. Such standards shall meet or exceed the provisions of the most recent edition of the Model Energy Code of the Council of American Building Officials and shall be cost-effective with respect to construction and operating costs. In developing such standards the Secretary shall consult with an advisory task force composed of homebuilders, national, State, and local housing agencies (including public housing agencies), energy agencies and building code organizations and agencies, energy efficiency organizations, utility organizations, low-income housing organizations, and other parties designated by the Secretary.”
Statutory Notes and Related Subsidiaries
Effective Date of 2007 AmendmentAmendment by Pub. L. 110140 effective on the date that is 1 day after Dec. 19, 2007, see section 1601 of Pub. L. 110140, set out as an Effective Date note under section 1824 of Title 2, The Congress.
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# 42 U.S.C. § 12710 - Capacity study
## Text
(a) In general The Secretary shall ensure that the Department of Housing and Urban Development has adequate capacity and resources, including staff and training programs, to carry out its mission and responsibilities to implement the provisions of this Act, including the ability of the Department to carry out the multifamily mortgage insurance program, and the ability to respond to areas identified as “material weaknesses” by the Office of the Inspector General in financial audits or other reports.
(b) Report Not later than 60 days after November 28, 1990, and annually thereafter, the Secretary shall prepare and submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Banking, Finance and Urban Affairs of the House of Representatives a study detailing the Departments plan to maintain such capacity, together with any recommendations for legislative and administrative action as the Secretary determines to be appropriate.
(Pub. L. 101625, title I, § 110, Nov. 28, 1990, 104 Stat. 4093; Pub. L. 102550, title IV, § 407, Oct. 28, 1992, 106 Stat. 3778.)
## Notes
Editorial Notes
References in TextThis Act, referred to in subsec. (a), is Pub. L. 101625, Nov. 28, 1990, 104 Stat. 4079, known as the Cranston-Gonzalez National Affordable Housing Act. For complete classification of this Act to the Code, see Short Title note set out under section 12701 of this title and Tables.
Amendments1992—Subsec. (a). Pub. L. 102550 struck out “, and” after “responsibilities” and substituted for period at end “and the ability to respond to areas identified as material weaknesses by the Office of the Inspector General in financial audits or other reports.”
Statutory Notes and Related Subsidiaries
Change of Name Committee on Banking, Finance and Urban Affairs of House of Representatives treated as referring to Committee on Banking and Financial Services of House of Representatives by section 1(a) of Pub. L. 10414, set out as a note preceding section 21 of Title 2, The Congress. Committee on Banking and Financial Services of House of Representatives abolished and replaced by Committee on Financial Services of House of Representatives, and jurisdiction over matters relating to securities and exchanges and insurance generally transferred from Committee on Energy and Commerce of House of Representatives by House Resolution No. 5, One Hundred Seventh Congress, Jan. 3, 2001.
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# 42 U.S.C. § 12711 - Protection of State and local authority
## Text
Notwithstanding any other provision of this subchapter or subchapter II, the Secretary shall not establish any criteria for allocating or denying funds made available under programs administered by the Secretary based on the adoption, continuation, or discontinuation by a jurisdiction of any public policy, regulation, or law that is (1) adopted, continued, or discontinued in accordance with the jurisdictions duly established authority, and (2) not in violation of any Federal law.
(Pub. L. 101625, title I, § 111, Nov. 28, 1990, 104 Stat. 4093.)
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# 42 U.S.C. § 12713 - Eligibility under first-time homebuyer programs
## Text
(a) Eligibility of displaced homemakers and single parents for Federal assistance for first-time homebuyers (1) Displaced homemakers No individual who is a displaced homemaker may be denied eligibility under any Federal program to assist first-time homebuyers on the basis that the individual, while a homemaker, owned a home with his or her spouse or resided in a home owned by the spouse.
(2) Single parents No individual who is a single parent may be denied eligibility under any Federal program to assist first-time homebuyers on the basis that the individual, while married, owned a home with his or her spouse or resided in a home owned by the spouse.
(b) Definitions For purposes of this section:
(1) Displaced homemaker The term “displaced homemaker” means an individual who—
(A) is an adult;
(B) has not worked full-time, full-year in the labor force for a number of years but has, during such years, worked primarily without remuneration to care for the home and family; and
(C) is unemployed or underemployed and is experiencing difficulty in obtaining or upgrading employment.
(2) First-time homebuyer The term “first-time homebuyer” means an individual who has never, or has not during a specified period of time, had any present ownership interest in a principal residence.
(3) Single parent The term “single parent” means an individual who—
(A) is unmarried or legally separated from a spouse; and
(B) (i) has 1 or more minor children for whom the individual has custody or joint custody; or
(ii) is pregnant.
(c) Applicability This section shall apply to any Federal program to assist first-time homebuyers, unless the program is exempted from this section by a statute that amends this subsection or explicitly refers to this subsection.
(Pub. L. 101625, title IX, § 956, Nov. 28, 1990, 104 Stat. 4421.)
## Notes
Editorial Notes
Codification Section was enacted as part of title IX of the Cranston-Gonzalez National Affordable Housing Act, and not as part of title I of such Act which comprises this subchapter.
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# 42 U.S.C. § 12714 - Repealed. Pub. L. 10499, title IV, § 404(a), Jan. 26, 1996, 110 Stat. 44
## Notes
Section, Pub. L. 101625, title IX, § 957, Nov. 28, 1990, 104 Stat. 4422, related to maximum annual limitation on rent increases resulting from employment.
Statutory Notes and Related Subsidiaries
Effective Date of RepealPub. L. 10499, title IV, § 404(a), Jan. 26, 1996, 110 Stat. 44, provided in part that this section is repealed retroactive to Nov. 28, 1990, and shall be of no effect.
Economic IndependencePub. L. 102550, title IX, § 923, Oct. 28, 1992, 106 Stat. 3884, which provided that Secretary of Housing and Urban Development was to immediately implement section 12714 of this title and that other Federal agencies authorized to assist low-income families were to take similar steps to encourage economic independence and the accumulation of assets, was repealed retroactive to Oct. 28, 1992, by Pub. L. 10499, title IV, § 404(b), Jan. 26, 1996, 110 Stat. 44, which further provided that section 923 of Pub. L. 102550 was to be of no effect.
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# 42 U.S.C. § 12722 - Purposes
## Text
The purposes of this subchapter are—
(1) to expand the supply of decent, safe, sanitary, and affordable housing, with primary attention to rental housing, for very low-income and low-income Americans;
(2) to mobilize and strengthen the abilities of States and units of general local government throughout the United States to design and implement strategies for achieving an adequate supply of decent, safe, sanitary, and affordable housing;
(3) to provide participating jurisdictions, on a coordinated basis, with the various forms of Federal housing assistance, including capital investment, mortgage insurance, rental assistance, and other Federal assistance, needed—
(A) to expand the supply of decent, safe, sanitary, and affordable housing;
(B) to make new construction, rehabilitation, substantial rehabilitation, and acquisition of such housing feasible; and
(C) to promote the development of partnerships among the Federal Government, States and units of general local government, private industry, and nonprofit organizations able to utilize effectively all available resources to provide more of such housing;
(4) to make housing more affordable for very low-income and low-income families through the use of tenant-based rental assistance;
(5) to develop and refine, on an ongoing basis, a selection of model programs incorporating the most effective methods for providing decent, safe, sanitary, and affordable housing, and accelerate the application of such methods where appropriate throughout the United States to achieve the prudent and efficient use of funds made available under this subchapter;
(6) to expand the capacity of nonprofit community housing development organizations to develop and manage decent, safe, sanitary, and affordable housing;
(7) to ensure that Federal investment produces housing stock that is available and affordable to low-income families for the propertys remaining useful life, is appropriate to the neighborhood surroundings, and, wherever appropriate, is mixed income housing;
(8) to increase the investment of private capital and the use of private sector resources in the provision of decent, safe, sanitary, and affordable housing;
(9) to allocate Federal funds for investment in affordable housing among participating jurisdictions by formula allocation;
(10) to leverage those funds insofar as practicable with State and local matching contributions and private investment;
(11) to establish for each participating jurisdiction a HOME Investment Trust Fund with a line of credit for investment in affordable housing, with repayments back to its HOME Investment Trust Fund being made available for reinvestment by the jurisdiction;
(12) to provide credit enhancement for affordable housing by utilizing the capacities of existing agencies and mortgage finance institutions when most efficient and supplementing their activities when appropriate; and
(13) to assist very low-income and low-income families to obtain the skills and knowledge necessary to become responsible homeowners and tenants.
(Pub. L. 101625, title II, § 203, Nov. 28, 1990, 104 Stat. 4095.)
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# 42 U.S.C. § 12723 - Coordinated Federal support for housing strategies
## Text
The Secretary shall make assistance under this subchapter available to participating jurisdictions, through the Office of the Assistant Secretary for Housing-FHA Commissioner of the Department of Housing and Urban Development, to the maximum extent practicable, in coordination with mortgage insurance, rental assistance, and other housing assistance appropriate to the efficient and timely completion of activities under this subchapter.
(Pub. L. 101625, title II, § 204, Nov. 28, 1990, 104 Stat. 4096.)
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# 42 U.S.C. § 12724 - Authorization
## Text
There are authorized to be appropriated to carry out this subchapter $2,086,000,000 for fiscal year 1993, and $2,173,612,000 for fiscal year 1994, of which—
(1) not more than $14,000,000 for fiscal year 1993, and $25,000,000 for fiscal year 1994, shall be for community housing partnership activities authorized under section 12773 of this title; and
(2) not more than $11,000,000 for fiscal year 1993, and $22,000,000 for fiscal year 1994, shall be for activities in support of State and local housing strategies authorized under part C.
(Pub. L. 101625, title II, § 205, Nov. 28, 1990, 104 Stat. 4096; Pub. L. 102550, title II, § 201, Oct. 28, 1992, 106 Stat. 3751; Pub. L. 103120, § 5, Oct. 27, 1993, 107 Stat. 1148.)
## Notes
Editorial Notes
Amendments1993—Pub. L. 103120 substituted “$25,000,000 for fiscal year 1994” for “$14,000,000 for fiscal year 1994” in par. (1) and “$22,000,000 for fiscal year 1994” for “$11,000,000 for fiscal year 1994” in par. (2). 1992—Pub. L. 102550 amended section generally. Prior to amendment, section read as follows: “There are authorized to be appropriated to carry out this subchapter $1,000,000,000 for fiscal year 1991, and $2,086,000,000 for fiscal year 1992, of which— “(1) not more than $14,000,000 for fiscal year 1991, and $14,000,000 for fiscal year 1992, shall be for community housing partnership activities authorized under section 12773 of this title; and “(2) not more than $11,000,000 for fiscal year 1991, and $11,000,000 for fiscal year 1992, shall be for activities in support of State and local housing strategies authorized under part C of this subchapter.”
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# 42 U.S.C. § 12725 - Notice
## Text
The Secretary shall issue regulations to implement the provisions of this subchapter after notice and an opportunity for comment pursuant to section 553 of title 5. Such regulations shall become effective not later than 180 days after November 28, 1990.
(Pub. L. 101625, title II, § 206, Nov. 28, 1990, 104 Stat. 4096.)
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# 42 U.S.C. § 12741 - Authority
## Text
The Secretary is authorized to make funds available to participating jurisdictions for investment to increase the number of families served with decent, safe, sanitary, and affordable housing and expand the long-term supply of affordable housing in accordance with provisions of this part.
(Pub. L. 101625, title II, § 211, Nov. 28, 1990, 104 Stat. 4096.)
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# 42 U.S.C. § 12742 - Eligible uses of investment
## Text
(a) Housing uses (1) In general Funds made available under this part may be used by participating jurisdictions to provide incentives to develop and support affordable rental housing and homeownership affordability through the acquisition, new construction, reconstruction, or moderate or substantial rehabilitation of affordable housing, including real property acquisition, site improvement, conversion, demolition, and other expenses, including financing costs, relocation expenses of any displaced persons, families, businesses, or organizations, to provide for the payment of reasonable administrative and planning costs, to provide for the payment of operating expenses of community housing development organizations, and to provide tenant-based rental assistance. For the purpose of this part, the term “affordable housing” includes permanent housing for disabled homeless persons, transitional housing, and single room occupancy housing.
(2) Preference to rehabilitation A participating jurisdiction shall give preference to rehabilitation of substandard housing unless the jurisdiction determines that—
(A) such rehabilitation is not the most cost effective way to meet the jurisdictions need to expand the supply of affordable housing; and
(B) the jurisdictions housing needs cannot be met through rehabilitation of the available stock.
The Secretary shall not restrict a participating jurisdictions choice of rehabilitation, substantial rehabilitation, new construction, reconstruction, acquisition, or other eligible housing use unless such restriction is explicitly authorized under section 12753(2) of this title.
(3) Tenant-based rental assistance (A) In general A participating jurisdiction may use funds provided under this part for tenant-based rental assistance only if—
(i) the jurisdiction certifies that the use of funds under this part for tenant-based rental assistance is an essential element of the jurisdictions annual housing strategy for expanding the supply, affordability, and availability of decent, safe, sanitary, and affordable housing, and specifies the local market conditions that lead to the choice of this option; and
(ii) the tenant-based rental assistance is provided in accordance with written tenant selection policies and criteria that are consistent with the purposes of providing housing to very low- and low-income families and are reasonably related to preference rules established under section 1437d(c)(4)(A) 11 See References in Text note below. of this title.
(B) Fair share not affected A jurisdictions section 8 [42 U.S.C. 1437f] fair share allocation shall be unaffected by the use of assistance under this subchapter.
(C) 24-month contracts Rental assistance contracts made available with assistance under this subchapter shall be for not more than 24 months, except that assistance to a family may be renewed.
(D) Use of section 1437f assistance In any case where assistance under section 1437f of this title becomes available to a participating jurisdiction, recipients of rental assistance under this subchapter shall qualify for tenant selection preferences to the same extent as when they received the rental assistance under this subchapter. A rental assistance program under this subchapter shall meet minimum criteria prescribed by the Secretary, such as housing quality standards and standards regarding the reasonableness of the rent.
(E) Security deposit assistance A jurisdiction using funds provided under this part for tenant-based rental assistance may use such funds to provide loans or grants to very low- and low-income families for security deposits for rental of dwelling units. Assistance under this subparagraph does not preclude assistance under any other provision of this paragraph.
(4) Redesignated (3)
(5) Lead-based paint hazards A participating jurisdiction may use funds provided under this part for the evaluation and reduction of lead-based paint hazards, as defined in section 4851b of this title.
(b) Investments Participating jurisdictions shall have discretion to invest funds made available under this part as equity investments, interest-bearing loans or advances, noninterest-bearing loans or advances, interest subsidies or other forms of assistance that the Secretary has determined to be consistent with the purposes of this subchapter. Each participating jurisdiction shall have the right to establish the terms of assistance.
(c) Administrative costs In each fiscal year, each participating jurisdiction may use not more than 10 percent of the funds made available under this part to the jurisdiction for such year for any administrative and planning costs of the jurisdiction in carrying out this part, including the costs of the salaries of persons engaged in administering and managing activities assisted with funds made available under this part.
(d) Prohibited uses Funds made available under this part may not be used to—
(1) defray any administrative cost of a participating jurisdiction that exceed the amount specified under subsection (c),
(2) provide tenant-based rental assistance for the special purposes of the existing section 8 [42 U.S.C. 1437f] program, including replacing public housing that is demolished or disposed of, preserving federally assisted housing, assisting in the disposition of housing owned or held by the Secretary, preventing displacement from rental rehabilitation projects, or extending or renewing tenant-based assistance under section 1437f of this title,
(3) provide non-Federal matching contributions required under any other Federal program,
(4) provide assistance authorized under section 1437g of this title,
(5) carry out activities authorized under section 1437g(d)(1) 1 of this title, or
(6) provide assistance to eligible low-income housing under the Emergency Low Income Housing Preservation Act of 1987 or the Low-Income Housing Preservation and Resident Homeownership Act of 1990 [12 U.S.C. 4101 et seq.].
(e) Cost limits (1) In general The Secretary shall establish limits on the amount of funds under this part that may be invested on a per unit basis. For multifamily housing, such limits shall not be less than the per unit dollar amount limitations set forth in section 1715l(d)(3)(ii) of title 12, as such limitations may be adjusted in accordance therewith, except that for purposes of this subsection the Secretary shall, by regulation, increase the per unit dollar amount limitations in any geographical area by an amount, not to exceed 140 percent, that equals the amount by which the costs of multifamily housing construction in the area exceed the national average of such costs. The limits shall be established on a market-by-market basis, with adjustments made for number of bedrooms, and shall reflect the actual cost of new construction, reconstruction, or rehabilitation of housing that meets applicable State and local housing and building codes and the cost of land, including necessary site improvements. Adjustments shall be made annually to reflect inflation. Separate limits may be set for different eligible activities.
(2) Criteria In calculating per unit limits, the Secretary shall take into account that assistance under this subchapter is intended to—
(A) provide nonluxury housing with suitable amenities;
(B) operate effectively in all jurisdictions;
(C) facilitate mixed-income housing; and
(D) reflect the costs associated with meeting the special needs of tenants or homeowners that the housing is designed to serve.
(3) Consultation In calculating cost limits, the Secretary shall consult with organizations that have expertise in the development of affordable housing, including national nonprofit organizations and national organizations representing private development firms and State and local governments.
(f) Certification of compliance The requirements of section 3545(d) of this title shall be satisfied by a certification by a participating jurisdiction to the Secretary that the combination of Federal assistance provided to any housing project shall not be any more than is necessary to provide affordable housing.
(g) Limitation on operating assistance A participating jurisdiction may not use more than 5 percent of its allocation under this part for the payment of operating expenses for community housing development organizations.
(Pub. L. 101625, title II, § 212, Nov. 28, 1990, 104 Stat. 4097; Pub. L. 102550, title II, §§ 203(a), 204207(b), (d), title X, § 1012(e), Oct. 28, 1992, 106 Stat. 37523754, 3905; Pub. L. 105276, title V, § 522(b)(5), Oct. 21, 1998, 112 Stat. 2565.)
## Notes
Editorial Notes
References in TextSection 1437d(c)(4)(A) of this title, referred to in subsec. (a)(3)(A)(ii), was in the original “section 6(c)(4)(A) of the Housing Act of 1937”, and was translated as reading “section 6(c)(4)(A) of the United States Housing Act of 1937”, act Sept. 1, 1937, ch. 896, to reflect the probable intent of Congress. Section 1437g(d)(1) of this title, referred to in subsec. (d)(5), was in the original “section 9(d)(1) of the Housing Act of 1937”, and was translated as reading “section 9(d)(1) of the United States Housing Act of 1937”, act Sept. 1, 1937, ch. 896, to reflect the probable intent of Congress. The Emergency Low Income Housing Preservation Act of 1987, referred to in subsec. (d)(6), is title II of Pub. L. 100242, Feb. 5, 1988, 102 Stat. 1877, which was classified principally as a note under section 1715l of Title 12, Banks and Banking. Title II of Pub. L. 100242, was amended generally by Pub. L. 101625, title VI, § 601(a), Nov. 28, 1990, 104 Stat. 4249, and is now known as the Low-Income Housing Preservation and Resident Homeownership Act of 1990, which is classified principally to chapter 42 (§ 4101 et seq.) of Title 12. For complete classification of this Act to the Code, see Short Title note set out under section 4101 of Title 12 and Tables.
Amendments1998—Subsec. (d)(5). Pub. L. 105276 substituted “section 1437g(d)(1)” for “section 1437l”. 1992—Subsec. (a)(1). Pub. L. 102550, § 207(a), inserted “to provide for the payment of reasonable administrative and planning costs, to provide for the payment of operating expenses of community housing development organizations,” after “or organizations,”. Pub. L. 102550, § 205, inserted at end “For the purpose of this part, the term affordable housing includes permanent housing for disabled homeless persons, transitional housing, and single room occupancy housing.” Subsec. (a)(2). Pub. L. 102550, § 203(a)(1), struck out “under paragraph (3) of this subsection or” after “authorized” in concluding provisions. Subsec. (a)(3). Pub. L. 102550, § 204(b), added cl. (ii) of par. (3)(A) and struck out former cl. (ii) which read as follows: “the tenant-based rental assistance is provided to persons from the waiting lists eligible for section 8 assistance in accordance with the applicable preferences.” Pub. L. 102550, § 204(a), added subpar. (E). Pub. L. 102550, § 203(a)(2), (3), redesignated par. (4) as (3) and struck out former par. (3) which provided for conditions for new construction of housing. Subsec. (a)(4). Pub. L. 102550, § 203(a)(3), redesignated par. (4) as (3). Subsec. (a)(5). Pub. L. 102550, § 1012(e), added par. (5). Subsec. (c). Pub. L. 102550, § 207(b)(3), added subsec. (c). Former subsec. (c) redesignated (d). Pub. L. 102550, § 207(b)(1), inserted before comma at end of par. (1) “that exceed the amount specified under subsection (c)”. Subsec. (d). Pub. L. 102550, § 207(b)(2), redesignated subsec. (c) as (d). Former subsec. (d) redesignated (e). Pub. L. 102550, § 206, inserted after first sentence of par. (1) “For multifamily housing, such limits shall not be less than the per unit dollar amount limitations set forth in section 1715l(d)(3)(ii) of title 12, as such limitations may be adjusted in accordance therewith, except that for purposes of this subsection the Secretary shall, by regulation, increase the per unit dollar amount limitations in any geographical area by an amount, not to exceed 140 percent, that equals the amount by which the costs of multifamily housing construction in the area exceed the national average of such costs.” Subsecs. (e), (f). Pub. L. 102550, § 207(b)(2), redesignated subsecs. (d) and (e) as (e) and (f), respectively. Subsec. (g). Pub. L. 102550, § 207(d), added subsec. (g).
Statutory Notes and Related Subsidiaries
Effective Date of 1998 AmendmentAmendment by title V of Pub. L. 105276 effective and applicable beginning upon Oct. 1, 1999, except as otherwise provided, with provision that Secretary may implement amendment before such date, except to extent that such amendment provides otherwise, and with savings provision, see section 503 of Pub. L. 105276, set out as a note under section 1437 of this title.
Effective Date of 1992 AmendmentAmendment by sections 203207 of Pub. L. 102550 applicable to unexpended funds allocated under subchapter II of this chapter in fiscal year 1992, except as otherwise specifically provided, see section 223 of Pub. L. 102550, set out as a note under section 12704 of this title.
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# 42 U.S.C. § 12743 - Development of model programs
## Text
(a) In general The Secretary shall—
(1) in cooperation with participating jurisdictions, government-sponsored mortgage finance corporations, nonprofit organizations, the private sector, and other appropriate parties, develop, test, evaluate, refine, and, as necessary, replace a selection of model programs designed to carry out the purposes of this subchapter;
(2) make available to participating jurisdictions alternative model programs, which shall include suggested guidelines, procedures, forms, legal documents and such other elements as the Secretary determines to be appropriate;
(3) assure, insofar as is feasible, the availability of an appropriate variety of model programs designed for local market conditions, housing problems, project characteristics, and managerial capacities as they differ among participating jurisdictions;
(4) negotiate and enter into agreements with agencies of the Federal Government, participating jurisdictions, private financial institutions, government-sponsored mortgage finance corporations, nonprofit organizations, and other entities to provide such services, products, or financing as may be required for the implementation of a model program;
(5) provide detailed information on model programs as requested by participating jurisdictions, private financial institutions, developers, nonprofit organizations, and other interested parties; and
(6) encourage the use of such model programs to achieve efficiency, economies of scale, and effectiveness in the investment of funds made available under this part through third-party training, printed materials, and such other means of support as the Secretary determines will achieve the purpose of this subchapter.
(b) Adoption of programs Except as provided in section 12753(2) of this title, each participating jurisdiction shall have the discretion to adopt one or more model programs, adapt one or more model programs to its own requirements, design additional forms of assistance by itself or in cooperation with other participating jurisdictions, and suggest additional model programs for adoption by the Secretary as the participating jurisdiction may deem appropriate, and the Secretary may assist a participating jurisdiction in adopting, adapting, or designing one or more model programs.
(c) Part D programs The selection of model programs to be made available for adoption or adaptation shall include programs meeting the criteria set forth in part D.
(Pub. L. 101625, title II, § 213, Nov. 28, 1990, 104 Stat. 4100.)
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# 42 U.S.C. § 12744 - Income targeting
## Text
Each participating jurisdiction shall invest funds made available under this part within each fiscal year so that—
(1) with respect to rental assistance and rental units—
(A) not less than 90 percent of (i) the families receiving such rental assistance are families whose incomes do not exceed 60 percent of the median family income for the area, as determined by the Secretary with adjustments for smaller and larger families, (except that the Secretary may establish income ceilings higher or lower than 60 percent of the median for the area on the basis of the Secretarys findings that such variations are necessary because of prevailing levels of construction cost or fair market rent, or unusually high or low family income) at the time of occupancy or at the time funds are invested, whichever is later, or (ii) the dwelling units assisted with such funds are occupied by families having such incomes; and
(B) the remainder of (i) the families receiving such rental assistance are households that qualify as low-income families (other than families described in subparagraph (A)) at the time of occupancy or at the time funds are invested, whichever is later, or (ii) the dwelling units assisted with such funds are occupied by such households;
(2) with respect to homeownership assistance, 100 percent of such funds are invested with respect to dwelling units that are occupied by households that qualify as low-income families; and
(3) all such funds are invested with respect to housing that qualifies as affordable housing under section 12745 of this title.
(Pub. L. 101625, title II, § 214, Nov. 28, 1990, 104 Stat. 4101; Pub. L. 103233, title II, § 202, Apr. 11, 1994, 108 Stat. 364; Pub. L. 105276, title V, § 599B(a), Oct. 21, 1998, 112 Stat. 2660.)
## Notes
Editorial Notes
Amendments1998—Par. (2). Pub. L. 105276 struck out “at the time of occupancy or at the time funds are invested, whichever is later” before “; and”. 1994—Par. (1)(A). Pub. L. 103233, § 202(1), substituted “(i) the families receiving such rental assistance are” for “such funds are invested with respect to dwelling units that are occupied by”, “, or” for “, and” before cl. (ii), and added cl. (ii). Par. (1)(B). Pub. L. 103233, § 202(2), substituted “(i) the families receiving such rental assistance are” for “such funds are invested with respect to dwelling units that are occupied by” and added cl. (ii).
Statutory Notes and Related Subsidiaries
Effective Date of 1998 AmendmentPub. L. 105276, title V, § 599B(c), Oct. 21, 1998, 112 Stat. 2660, provided that: “The amendments made by this section [amending this section and section 12745 of this title] are made on, and shall apply beginning upon, the date of the enactment of this Act [Oct. 21, 1998].”
Effective Date of 1994 AmendmentAmendment by Pub. L. 103233 applicable with respect to any amounts made available to carry out this subchapter after Apr. 11, 1994, and any amounts made available to carry out this subchapter before that date that remain uncommitted on that date, with Secretary to issue any regulations necessary to carry out such amendment not later than end of 45-day period beginning on that date, see section 209 of Pub. L. 103233, set out as a note under section 5301 of this title.
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# 42 U.S.C. § 12745 - Qualification as affordable housing
## Text
(a) Rental housing (1) Qualification Housing that is for rental shall qualify as affordable housing under this subchapter only if the housing—
(A) bears rents not greater than the lesser of (i) the existing fair market rent for comparable units in the area as established by the Secretary under section 1437f of this title, or (ii) a rent that does not exceed 30 percent of the adjusted income of a family whose income equals 65 percent of the median income for the area, as determined by the Secretary, with adjustment for number of bedrooms in the unit, except that the Secretary may establish income ceilings higher or lower than 65 percent of the median for the area on the basis of the Secretarys findings that such variations are necessary because of prevailing levels of construction costs or fair market rents, or unusually high or low family incomes;
(B) has not less than 20 percent of the units (i) occupied by very low-income families who pay as a contribution toward rent (excluding any Federal or State rental subsidy provided on behalf of the family) not more than 30 percent of the familys monthly adjusted income as determined by the Secretary, or (ii) occupied by very low-income families and bearing rents not greater than the gross rent for rent-restricted residential units as determined under section 42(g)(2) of title 26;
(C) is occupied only by households that qualify as low-income families;
(D) is not refused for leasing to a holder of a voucher or certificate of eligibility under section 1437f of this title because of the status of the prospective tenant as a holder of such voucher or certificate of eligibility;
(E) will remain affordable, according to binding commitments satisfactory to the Secretary, for the remaining useful life of the property, as determined by the Secretary, without regard to the term of the mortgage or to transfer of ownership, or for such other period that the Secretary determines is the longest feasible period of time consistent with sound economics and the purposes of this Act, except upon a foreclosure by a lender (or upon other transfer in lieu of foreclosure) if such action (i) recognizes any contractual or legal rights of public agencies, nonprofit sponsors, or others to take actions that would avoid termination of low-income affordability in the case of foreclosure or transfer in lieu of foreclosure, and (ii) is not for the purpose of avoiding low income affordability restrictions, as determined by the Secretary; and
(F) if newly constructed, meets the energy efficiency standards promulgated by the Secretary in accordance with section 12709 of this title.
(2) Adjustment of qualifying rent The Secretary may adjust the qualifying rent established for a project under subparagraph (A) of paragraph (1), only if the Secretary finds that such adjustment is necessary to support the continued financial viability of the project and only by such amount as the Secretary determines is necessary to maintain continued financial viability of the project.
(3) Increases in tenant income Housing shall qualify as affordable housing despite a temporary noncompliance with subparagraph (B) or (C) of paragraph (1) if such noncompliance is caused by increases in the incomes of existing tenants and if actions satisfactory to the Secretary are being taken to ensure that all vacancies are filled in accordance with paragraph (1) until such noncompliance is corrected. Tenants who no longer qualify as low-income families shall pay as rent the lesser of the amount payable by the tenant under State or local law or 30 percent of the familys adjusted monthly income, as recertified annually. The preceding sentence shall not apply with respect to funds made available under this Act for units that have been allocated a low-income housing tax credit by a housing credit agency pursuant to section 42 of title 26.
(4) Mixed-income project Housing that accounts for less than 100 percent of the dwelling units in a project shall qualify as affordable housing if such housing meets the criteria of this section.
(5) Mixed-use project Housing in a project that is designed in part for uses other than residential use shall qualify as affordable housing if such housing meets the criteria of this section.
(6) Waiver of qualifying rent (A) In general For the purpose of providing affordable housing appropriate for families described in subparagraph (B), the Secretary may, upon the application of the project owner, waive the applicability of subparagraph (A) of paragraph (1) with respect to a dwelling unit if—
(i) the unit is occupied by such a family, on whose behalf tenant-based assistance is provided under section 1437f of this title;
(ii) the rent for the unit is not greater than the existing fair market rent for comparable units in the area, as established by the Secretary under section 1437f of this title; and
(iii) the Secretary determines that the waiver, together with waivers under this paragraph for other dwelling units in the project, will result in the use of amounts described in clause (iii) 11 So in original. in an effective manner that will improve the provision of affordable housing for such families.
(B) Eligible families A family described in this subparagraph is a family that consists of at least one elderly person (who is the head of household) and one or more of such persons grand 22 So in original. Probably should be “grandchildren”. children, great grandchildren, great nieces, great nephews, or great great grandchildren (as defined by the Secretary), but does not include any parent of such grandchildren, great grandchildren, great nieces, great nephews, or great great grandchildren. Such term includes any such grandchildren, great grandchildren, great nieces, great nephews, or great great grandchildren who have been legally adopted by such elderly person.
(b) Homeownership Housing that is for homeownership shall qualify as affordable housing under this subchapter only if the housing—
(1) has an initial purchase price that does not exceed 95 percent of the median purchase price for the area, as determined by the Secretary with such adjustments for differences in structure, including whether the housing is single-family or multifamily, and for new and old housing as the Secretary determines to be appropriate;
(2) is the principal residence of an owner whose family qualifies as a low-income family—
(A) in the case of a contract to purchase existing housing, at the time of purchase;
(B) in the case of a lease-purchase agreement for existing housing or for housing to be constructed, at the time the agreement is signed; or
(C) in the case of a contract to purchase housing to be constructed, at the time the contract is signed;
(3) is subject to resale restrictions that are established by the participating jurisdiction and determined by the Secretary to be appropriate to—
(A) allow for subsequent purchase of the property only by persons who meet the qualifications specified under paragraph (2), at a price which will—
(i) provide the owner with a fair return on investment, including any improvements, and
(ii) ensure that the housing will remain affordable to a reasonable range of low-income homebuyers; or
(B) recapture the investment provided under this subchapter in order to assist other persons in accordance with the requirements of this subchapter, except where there are no net proceeds or where the net proceeds are insufficient to repay the full amount of the assistance; and
(4) if newly constructed, meets the energy efficiency standards promulgated by the Secretary in accordance with section 12709 of this title.
(Pub. L. 101625, title II, § 215, Nov. 28, 1990, 104 Stat. 4101; Pub. L. 102550, title II, §§ 208, 209, Oct. 28, 1992, 106 Stat. 3754; Pub. L. 103233, title II, § 203, Apr. 11, 1994, 108 Stat. 364; Pub. L. 105276, title V, § 599B(b), Oct. 21, 1998, 112 Stat. 2660; Pub. L. 106569, title IX, § 904, Dec. 27, 2000, 114 Stat. 3027.)
## Notes
Editorial Notes
References in TextThis Act, referred to in subsec. (a)(1)(E), (3), is Pub. L. 101625, Nov. 28, 1990, 104 Stat. 4079, known as the Cranston-Gonzalez National Affordable Housing Act. For complete classification of this Act to the Code, see Short Title note set out under section 12701 of this title and Tables.
Amendments2000—Subsec. (a)(6). Pub. L. 106569 added par. (6). 1998—Subsec. (b)(2). Pub. L. 105276 amended par. (2) generally. Prior to amendment, par. (2) read as follows: “is the principal residence of an owner whose family qualifies as a low-income family at the time of purchase;”. 1994—Subsec. (b)(3). Pub. L. 103233, § 203(a), redesignated par. (4) as (3) and struck out former par. (3) which read as follows: “is made available for initial purchase only to first-time homebuyers;”. Subsec. (b)(3)(B). Pub. L. 103233, § 203(b), substituted “subchapter” for “subsection” after “requirements of this”. Subsec. (b)(4), (5). Pub. L. 103233, § 203(a)(2), redesignated pars. (4) and (5) as (3) and (4), respectively. 1992—Subsec. (a)(1)(A). Pub. L. 102550, § 208(a)(1), substituted “number of bedrooms in the unit” for “smaller and larger families”. Subsec. (a)(1)(E). Pub. L. 102550, § 208(b), inserted before semicolon “, except upon a foreclosure by a lender (or upon other transfer in lieu of foreclosure) if such action (i) recognizes any contractual or legal rights of public agencies, nonprofit sponsors, or others to take actions that would avoid termination of low-income affordability in the case of foreclosure or transfer in lieu of foreclosure, and (ii) is not for the purpose of avoiding low income affordability restrictions, as determined by the Secretary”. Subsec. (a)(3). Pub. L. 102550, § 208(a)(2), (3), substituted “the lesser of the amount payable by the tenant under State or local law or” for “not less than” in second sentence and inserted at end “The preceding sentence shall not apply with respect to funds made available under this Act for units that have been allocated a low-income housing tax credit by a housing credit agency pursuant to section 42 of title 26.” Subsec. (b)(4). Pub. L. 102550, § 209, added par. (4) and struck out former par. (4) which read as follows: “is made available for subsequent purchase only— “(A) to persons who meet the qualifications specified under paragraph (2), and “(B) at a price consistent with guidelines that are established by the participating jurisdiction and determined by the Secretary to be appropriate— “(i) to provide the owner with a fair return on investment, including any improvements, and “(ii) to ensure that the housing will remain affordable to a reasonable range of low income homebuyers; and”.
Statutory Notes and Related Subsidiaries
Effective Date of 1998 AmendmentAmendment by Pub. L. 105276 made on, and applicable beginning upon, Oct. 21, 1998, see section 599B(c) of Pub. L. 105276, set out as a note under section 12744 of this title.
Effective Date of 1994 AmendmentAmendment by Pub. L. 103233 applicable with respect to any amounts made available to carry out this subchapter after Apr. 11, 1994, and any amounts made available to carry out this subchapter before that date that remain uncommitted on that date, with Secretary to issue any regulations necessary to carry out such amendment not later than end of 45-day period beginning on that date, see section 209 of Pub. L. 103233, set out as a note under section 5301 of this title.
Effective Date of 1992 AmendmentAmendment by Pub. L. 102550 applicable to unexpended funds allocated under subchapter II of this chapter in fiscal year 1992, except as otherwise specifically provided, see section 223 of Pub. L. 102550, set out as a note under section 12704 of this title.
HOME Investment Partnerships ProgramPub. L. 114113, div. L, title II, Dec. 18, 2015, 129 Stat. 2878, provided in part: “That with respect to funds made available under this heading [home investment partnerships program, see 129 Stat. 2878] pursuant to such Act [probably means title II of Pub. L. 101625] and funds provided in prior and subsequent appropriations acts that were or are used by community land trusts for the development of affordable homeownership housing pursuant to section 215(b) of such Act [42 U.S.C. 12745(b)], such community land trusts, notwithstanding section 215(b)(3)(A) of such Act [42 U.S.C. 12745(b)(3)(A)], may hold and exercise purchase options, rights of first refusal or other preemptive rights to purchase the housing to preserve affordability, including but not limited to the right to purchase the housing in lieu of foreclosure”.
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# 42 U.S.C. § 12746 - Participation by States and local governments
## Text
The Secretary shall designate a State or unit of general local government to be a participating jurisdiction when it complies with procedures that the Secretary shall establish by regulation, which procedures shall only provide for the following:
(1) Allocation Not later than 20 days after funds to carry out this part become available (or, during the first year after November 28, 1990, not later than 20 days after (A) funds to carry out this part are provided in an appropriations Act, or (B) regulations to implement this part are promulgated, whichever is later), the Secretary shall allocate funds in accordance with section 12747 of this title and promptly notify each jurisdiction receiving a formula allocation of its allocation amount. If a jurisdiction is not already a participating jurisdiction, the Secretary shall inform the jurisdiction in writing how the jurisdiction may become a participating jurisdiction.
(2) Consortia A consortium of geographically contiguous units of general local government shall be deemed to be a unit of general local government for purposes of this subchapter if the Secretary determines that the consortium—
(A) has sufficient authority and administrative capability to carry out the purposes of this subchapter on behalf of its member jurisdictions, and
(B) will, according to a written certification by the State (or States, if the consortium includes jurisdictions in more than one State), direct its activities to alleviation of housing problems within the State or States.
(3) Eligibility (A) Except as provided in paragraph (10), a jurisdiction receiving a formula allocation under section 12747 of this title shall be eligible to become a participating jurisdiction if its formula allocation is $750,000 or greater, or if the Secretary finds that—
(i) the jurisdiction has a local housing authority and has demonstrated a capacity to carry out provisions of this part, and
(ii) the State has authorized the Secretary to transfer to the jurisdiction a portion of the States allocation that is equal to or greater than the difference between the jurisdictions formula allocation and $750,000, or the State or jurisdiction has made available from the States or jurisdictions own sources an equal amount for use by the jurisdiction in conformance with the provisions of this part.
(B) If a jurisdiction has met the requirements of subparagraph (A), the jurisdictions formula allocation for a fiscal year shall subsequently be deemed to equal the sum of the jurisdictions allocation under section 12747(a)(1) of this title and the amount made available to the jurisdiction under subparagraph (A)(ii).
(4) Notification If an eligible jurisdiction notifies the Secretary in writing, not later than 30 days after receiving notification under paragraph (1), of its intention to become a participating jurisdiction, the Secretary shall reserve an amount equal to the jurisdictions allocation (plus any reallocations for which the jurisdiction is eligible under section 12747(d)(1) of this title) pending the jurisdictions designation as a participating jurisdiction. The Secretary shall reallocate, in accordance with paragraph (6) of this section, any funds reserved under the previous sentence if the Secretary determines that the jurisdiction will not meet the requirements for designation as a participating jurisdiction within a reasonable period of time.
(5) Submission of strategy Not later than 90 days after providing notification under paragraph (4), an eligible jurisdiction shall submit to the Secretary a comprehensive housing affordability strategy in accordance with section 12705 of this title.
(6) Reallocation If the Secretary determines that a jurisdiction has failed to meet the requirements of the previous 3 paragraphs or if the Secretary, after providing for amendments and resubmissions in accordance with section 12705(c)(3) of this title, disapproves the jurisdictions comprehensive housing affordability strategy, the Secretary shall reallocate any funds reserved for the jurisdiction as follows:
(A) State If a State has failed to meet the requirements, the Secretary shall—
(i) make any funds reserved for the State available by direct reallocation among applications submitted by units of general local government within the State or consortia that include units of general local government within the State, insofar as approvable applications meeting the selection criteria under section 12747(c) of this title are received within 12 months after the funds become available for the direct reallocation, and
(ii) reallocate the remainder by formula in accordance with section 12747(b) of this title.
(B) Local If a unit of general local government has failed to meet the requirements and is located in a State that is a participating jurisdiction, the Secretary shall reallocate to the State any funds reserved for the locality, with preference going to the provision of affordable housing within the locality.
(C) Direct reallocation If a unit of general local government has failed to meet the requirements and is located in a State that is not a participating jurisdiction, the Secretary shall—
(i) make any funds reserved for the locality available for use within the State by direct reallocation among units of general local government and community housing development organizations, insofar as approvable applications meeting the selection criteria under section 12747(c) of this title are received within 12 months after the funds become available for the direct reallocation with priority going to applications for affordable housing within the locality, and
(ii) reallocate the remainder in accordance with section 12747(b) of this title.
(D) Certain jurisdictions deemed to be participating jurisdictions If a State or unit of general local government is meeting the requirements of paragraphs (3), (4), and (5), it shall be deemed to be a participating jurisdiction for purposes of reallocation under this paragraph.
(7) Designation The Secretary shall designate an eligible jurisdiction to be a participating jurisdiction as soon as its comprehensive housing affordability strategy is approved in accordance with section 12705 of this title.
(8) Continuous designation Once a State or unit of general local government is designated a participating jurisdiction, it shall remain a participating jurisdiction for subsequent fiscal years, except as provided in paragraph (9). The provisions of paragraphs (3) through (6) shall not apply to participating jurisdictions.
(9) Revocation The Secretary may revoke a jurisdictions designation as a participating jurisdiction if—
(A) the Secretary finds, after reasonable notice and opportunity for hearing, that the jurisdiction is unwilling or unable to carry out the provisions of this subchapter, or
(B) the jurisdictions allocation falls below $750,000 for 3 consecutive years, below $625,000 for 2 consecutive years, or the jurisdiction does not receive a formula allocation of $500,000 or more in any 1 year, except as provided in paragraph (10).
If a jurisdictions designation as a participating jurisdiction is revoked, any remaining line of credit in the jurisdictions HOME Investment Trust Fund established under section 12748 of this title shall be reallocated in accordance with paragraph (6) of this section.
(10) Threshold reduction If the amount appropriated pursuant to section 12724 of this title for any fiscal year is less than $1,500,000,000, then this section shall be applied during that year—
(A) by substituting “$500,000” for “$750,000” both places it appears in paragraph (3); and
(B) by substituting “$500,000”, “$410,000”, and “$335,000” for “$750,000”, “$625,000”, and “$500,000”, respectively, where they appear in paragraph (9).
(Pub. L. 101625, title II, § 216, Nov. 28, 1990, 104 Stat. 4103; Pub. L. 102550, title II, § 202(a), Oct. 28, 1992, 106 Stat. 3751.)
## Notes
Editorial Notes
Amendments1992—Par. (3)(A). Pub. L. 102550, § 202(a)(1), substituted “Except as provided in paragraph (10), a jurisdiction” for “A jurisdiction”. Par. (9)(B). Pub. L. 102550, § 202(a)(2), inserted “, except as provided in paragraph (10)” after “in any 1 year”. Par. (10). Pub. L. 102550, § 202(a)(3), added par. (10).
Statutory Notes and Related Subsidiaries
Effective Date of 1992 AmendmentAmendment by Pub. L. 102550 applicable to unexpended funds allocated under subchapter II of this chapter in fiscal year 1992, except as otherwise specifically provided, see section 223 of Pub. L. 102550, set out as a note under section 12704 of this title.
Applicability of Grant ThresholdsPub. L. 102550, title II, § 202(c), Oct. 28, 1992, 106 Stat. 3752, provided that: “Notwithstanding any other provision of law, the grant thresholds provided for in section 216 [42 U.S.C. 12746], as amended by this section, and the grant thresholds provided for in section 217(b) of the Cranston-Gonzalez National Affordable Housing Act [42 U.S.C. 12747(b)], as amended by this section, shall apply.”
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# 42 U.S.C. § 12748 - HOME Investment Trust Funds
## Text
(a) Establishment The Secretary shall establish for each participating jurisdiction a HOME Investment Trust Fund, which shall be an account (or accounts as provided in section 12749(c) of this title) for use solely to invest in affordable housing within the participating jurisdictions boundaries or within the boundaries of contiguous jurisdictions in joint projects which serve residents from both jurisdictions in accordance with the provisions of this part.
(b) Line of credit The Secretary shall establish a line of credit in the HOME Investment Trust Fund of each participating jurisdiction, which line of credit shall include—
(1) funds allocated or reallocated to the participating jurisdiction under section 12747 of this title, and
(2) any payment or repayment made pursuant to section 12749 of this title.
(c) Reductions A participating jurisdictions line of credit shall be reduced by—
(1) funds drawn from the HOME Investment Trust Fund by the participating jurisdiction,
(2) funds expiring under subsection (g), and
(3) any penalties assessed by the Secretary under section 12754 11 So in original. Probably should be section “12753”. of this title.
(d) Certification A participating jurisdiction may draw funds from its HOME Investment Trust Fund, but not to exceed the remaining line of credit, only after providing certification that the funds shall be used pursuant to the participating jurisdictions approved housing strategy and in compliance with all requirements of this subchapter. When such certification is received, the Secretary shall immediately disburse such funds in accordance with the form of the assistance determined by the participating jurisdiction.
(e) Investment within 15 days The participating jurisdiction shall, not later than 15 days after funds are drawn from the jurisdictions HOME Investment Trust Fund, invest such funds, together with any interest earned thereon, in the affordable housing for which the funds were withdrawn.
(f) No interest or fees The Secretary shall not charge any interest or levy any other fee with regard to funds in a HOME Investment Trust Fund.
(g) Expiration of right to draw funds If any funds becoming available to a participating jurisdiction under this subchapter are not placed under binding commitment to affordable housing within 24 months after the last day of the month in which such funds are deposited in the jurisdictions HOME Investment Trust Fund, the jurisdictions right to draw such funds from the HOME Investment Trust Fund shall expire. The Secretary shall reduce the line of credit in the participating jurisdictions HOME Investment Trust Fund by the expiring amount and shall reallocate the funds by formula in accordance with section 12747(d) of this title.
(h) Administrative provision The Secretary shall keep each participating jurisdiction informed of the status of its HOME Investment Trust Fund, including the status of amounts under various stages of commitment.
(Pub. L. 101625, title II, § 218, Nov. 28, 1990, 104 Stat. 4109; Pub. L. 102550, title II, §§ 203(c), 221, Oct. 28, 1992, 106 Stat. 3752, 3762.)
## Notes
Editorial Notes
Amendments1992—Subsec. (a). Pub. L. 102550, § 221, inserted “or within the boundaries of contiguous jurisdictions in joint projects which serve residents from both jurisdictions” after “boundaries”. Subsec. (g). Pub. L. 102550, § 203(c), substituted “If” for “Except as provided in section 12747(b)(1)(A)(ii) of this title, if”.
Statutory Notes and Related Subsidiaries
Effective Date of 1992 AmendmentAmendment by Pub. L. 102550 applicable to unexpended funds allocated under subchapter II of this chapter in fiscal year 1992, except as otherwise specifically provided, see section 223 of Pub. L. 102550, set out as a note under section 12704 of this title.
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# 42 U.S.C. § 12749 - Repayment of investment
## Text
(a) In general Any repayment of funds drawn from a jurisdictions HOME Investment Trust Fund, and any payment of interest or other return on the investment of such funds, shall be deposited in such jurisdictions HOME Investment Trust Fund, except that, if the jurisdiction is not a participating jurisdiction when such payment or repayment is made, the amount of such payment or repayment shall be reallocated in accordance with section 12747(d) of this title.
(b) Assurance of repayment Each participating jurisdiction shall enter into an agreement with the Secretary ensuring that funds invested in affordable housing under this part are repayable when the housing no longer qualifies as affordable housing. Any repayment under the previous sentence shall be for deposit in the HOME Investment Trust Fund of the jurisdiction making the investment; except that if such jurisdiction is not a participating jurisdiction when such repayment is made, the amount of such repayment shall be reallocated in accordance with section 12747(d) of this title.
(c) Availability The Secretary shall take such actions as are necessary to ensure that any repayments deposited in a HOME Investment Trust Fund in accordance with this section shall be immediately available to the participating jurisdiction for investment subject to the provisions of this part that apply to funds that are allocated under section 12747 of this title. Actions authorized under the preceding sentence may include authorizing the establishment for a participating jurisdiction of a HOME Investment Trust Fund account outside of the Federal Government that, under arrangements satisfactory to the Secretary, shall be used solely to invest in affordable housing within the participating jurisdictions boundaries in accordance with the provisions of this subchapter. Such accounts shall be established in such a manner that repayments are not receipts or collections of the Federal Government.
(Pub. L. 101625, title II, § 219, Nov. 28, 1990, 104 Stat. 4110.)
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# 42 U.S.C. § 12750 - Matching requirements
## Text
(a) Contribution Each participating jurisdiction shall make contributions to housing that qualifies as affordable housing under this subchapter that total, throughout a fiscal year, not less than 25 percent of the funds drawn from the jurisdictions HOME Investment Trust Fund in such fiscal year. Such contributions shall be in addition to any amounts made available under section 12746(3)(A)(ii) of this title.
(b) Recognition (1) In general A contribution shall be recognized for purposes of subsection (a) only if it—
(A) is made with respect to housing that qualifies as affordable housing under section 12745 of this title; or
(B) is made with respect to any portion of a project not less than 50 percent of the units of which qualify as affordable housing under section 12745 of this title.
(2) Administrative expenses Contributions for administrative expenses may not be recognized for purposes of subsection (a).
(c) Form Such contributions may be in the form of—
(1) cash contributions from non-Federal resources, which may not include funds from a grant made under section 5306(b) or section 5306(d) of this title;
(2) the value of taxes, fees, or other charges that are normally and customarily imposed but are waived, foregone, or deferred in a manner that achieves affordability of housing assisted under this subchapter;
(3) the value of land or other real property as appraised according to procedures acceptable to the Secretary;
(4) the value of investment in on-site and off-site infrastructure directly required for affordable housing assisted under this subchapter;
(5) Redesignated (4)
(6) up to—
(A) 50 percent of proceeds from bond financing validly issued by a State or local government, agency or instrumentality thereof, or political subdivision thereof, and repayable with revenues derived from a multifamily affordable housing project financed, and
(B) 25 percent of proceeds from bond financing validly issued by a State or local government, agency or instrumentality thereof, or political subdivision thereof, and repayable with revenues derived from a single-family project financed,
but not more than 25 percent of the contribution required under subsection (a) may be derived from these sources;
(7) the reasonable value of any site-preparation and construction materials and any donated or voluntary labor in connection with the site-preparation for, or construction or rehabilitation of, affordable housing; and
(8) such other contributions to affordable housing as the Secretary considers appropriate.
(d) Reduction of requirement (1) In general The Secretary shall reduce the matching requirement under subsection (a) with respect to any funds drawn from a jurisdictions HOME Investment Trust Fund Account during a fiscal year by—
(A) 50 percent for a jurisdiction that certifies that it is in fiscal distress; and
(B) 100 percent for a jurisdiction that certifies that it is in severe fiscal distress.
(2) Definitions For purposes of this section—
(A) “fiscal distress” means a jurisdiction other than a State that satisfies 1 of the distress criteria set forth in paragraph (3); and
(B) “severe fiscal distress” means a jurisdiction other than a State that satisfies both of the distress criteria set forth in paragraph (3).
(3) Distress criteria For purposes of a jurisdiction other than a State certifying that it is distressed, the following criteria shall apply:
(A) Poverty rate The average poverty rate in the jurisdiction for the calendar year immediately preceding the year in which its fiscal year begins was equal to or greater than 125 percent of the average national poverty rate during such calendar year (as determined according to information of the Bureau of the Census).
(B) Per capita income The average per capita income in the jurisdiction for the calendar year immediately preceding the year in which its fiscal year begins was less than 75 percent of the average national per capita income during such calendar year (as determined according to information of the Bureau of the Census).
(4) States In determining the degree to which a jurisdiction that is a State is distressed, the Secretary shall take into consideration the States fiscal capacity and expenditure needs as determined by a national organization which compiles the relevant data.
(5) Waiver in disaster areas If a participating jurisdiction is located in an area in which a declaration of a disaster pursuant to the Robert T. Stafford Disaster Relief and Emergency Assistance Act [42 U.S.C. 5121 et seq.] is in effect for any part of a fiscal year, the Secretary may reduce the matching requirement for that fiscal year under subsection (a) with respect to any funds drawn from a jurisdictions HOME Investment Trust Fund Account during that fiscal year by up to 100 percent.
(Pub. L. 101625, title II, § 220, Nov. 28, 1990, 104 Stat. 4111; Pub. L. 102550, title II, §§ 207(c), 210(a)(c), Oct. 28, 1992, 106 Stat. 3753, 3755; Pub. L. 103233, title II, § 204, Apr. 11, 1994, 108 Stat. 364.)
## Notes
Editorial Notes
References in TextThe Robert T. Stafford Disaster Relief and Emergency Assistance Act, referred to in subsec. (d)(5), is Pub. L. 93288, May 22, 1974, 88 Stat. 143, which is classified principally to chapter 68 (§ 5121 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 5121 of this title and Tables.
Amendments1994—Subsec. (a). Pub. L. 103233 amended heading and text of subsec. (a) generally. Prior to amendment, text read as follows: “Each participating jurisdiction shall make contributions to housing that qualifies as affordable housing under this subchapter that total, throughout a fiscal year, not less than— “(1) 25 percent of the total funds drawn from the jurisdictions HOME Investment Trust Fund in that fiscal year with respect to rental assistance, housing rehabilitation and substantial rehabilitation; and “(2) 30 percent of the total funds drawn from the jurisdictions HOME Investment Trust Fund in that fiscal year with respect to new construction. Such contributions shall be in addition to any amounts made available under section 12746(3)(A)(ii) of this title.” 1992—Subsec. (a). Pub. L. 102550, § 210(a)(4), substituted “housing that qualifies as affordable housing under this subchapter” for “affordable housing assisted under this subchapter” in introductory provisions. Subsec. (a)(1). Pub. L. 102550, § 210(a)(1), substituted “, housing rehabilitation and substantial rehabilitation; and” for “and housing rehabilitation;”. Subsec. (a)(2). Pub. L. 102550, § 210(a)(2), substituted “30” for “33” and “new construction.” for “substantial rehabilitation; and”. Subsec. (a)(3). Pub. L. 102550, § 210(a)(3), struck out par. (3) which read as follows: “50 percent of the total funds drawn from the jurisdictions HOME Investment Trust Fund in that fiscal year with respect to new construction.” Subsec. (b)(2). Pub. L. 102550, § 207(c)(1), substituted “may not be recognized for purposes of subsection (a)” for “shall be recognized only up to an amount equal to 7 percent of funds provided for investment under this subchapter”. Subsec. (c)(2). Pub. L. 102550, § 207(c)(2), redesignated par. (3) as (2) and struck out former par. (2) which read as follows: “payment of administrative expenses, as defined by the Secretary, from non-Federal resources, which may include funds from a grant made under section 5306(b) or section 5306(d) of this title;”. Subsec. (c)(3). Pub. L. 102550, § 210(b)(1), which directed the striking of “and” at end of par. (4), was executed by striking “and” at end of par. (3) to reflect the probable intent of Congress and the redesignation of par. (4) as (3). See below. Pub. L. 102550, § 207(c)(2)(B), redesignated par. (4) as (3). Former par. (3) redesignated (2). Subsec. (c)(4). Pub. L. 102550, § 210(b)(2), which directed the substitution of a semicolon for the period at end of par. (5), was executed by making the substitution at end of par. (4) to reflect the probable intent of Congress and the redesignation of par. (5) as (4). See below. Pub. L. 102550, § 207(c)(2)(B), redesignated par. (5) as (4). Former par. (4) redesignated (3). Subsec. (c)(5). Pub. L. 102550, § 207(c)(2)(B), redesignated par. (5) as (4). Subsec. (c)(6) to (8). Pub. L. 102550, § 210(b)(3), added pars. (6) to (8). Subsec. (d). Pub. L. 102550, § 210(c), added subsec. (d) and struck out former subsec. (d) which read as follows: “If a jurisdiction demonstrates to the satisfaction of the Secretary that a reduction of the matching requirement specified in subsection (a) of this section is necessary to permit the jurisdiction to carry out the purposes of this subchapter, the Secretary may reduce the matching requirement during a period not to exceed 3 years after the jurisdiction is first designated as a participating jurisdiction. Such reduction shall be not more than 75 percent in the first year, not more than 50 percent in the second year, and not more than 25 percent in the third year.”
Statutory Notes and Related Subsidiaries
Effective Date of 1994 AmendmentAmendment by Pub. L. 103233 applicable with respect to any amounts made available to carry out this subchapter after Apr. 11, 1994, and any amounts made available to carry out this subchapter before that date that remain uncommitted on that date, with Secretary to issue any regulations necessary to carry out such amendment not later than end of 45-day period beginning on that date, see section 209 of Pub. L. 103233, set out as a note under section 5301 of this title.
Effective Date of 1992 AmendmentPub. L. 102550, title II, § 210(d), Oct. 28, 1992, 106 Stat. 3756, provided that: “The amendments made by this section [amending this section] shall apply with respect to fiscal year 1993 and each fiscal year thereafter.” Amendment by section 207(c) of Pub. L. 102550 applicable to unexpended funds allocated under subchapter II of this chapter in fiscal year 1992, except as otherwise specifically provided, see section 223 of Pub. L. 102550, set out as a note under section 12704 of this title.
@@ -0,0 +1,35 @@
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# 42 U.S.C. § 12751 - Private-public partnership
## Text
Each participating jurisdiction shall make all reasonable efforts, consistent with the purposes of this subchapter, to maximize participation by the private sector, including nonprofit organizations and for-profit entities, in the implementation of the jurisdictions housing strategy, including participation in the financing, development, rehabilitation and management of affordable housing. Nothing in the previous sentence shall preclude public housing authorities from fully participating in the implementation of a jurisdictions housing strategy.
(Pub. L. 101625, title II, § 221, Nov. 28, 1990, 104 Stat. 4112.)
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# 42 U.S.C. § 12752 - Distribution of assistance
## Text
(a) Local Each participating jurisdiction shall, insofar as is feasible, distribute assistance under this part geographically within its boundaries and among different categories of housing need, according to the priorities of housing need identified in the jurisdictions approved housing strategy.
(b) State Participating States shall be responsible for distributing assistance throughout the State according to the States assessment of the geographical distribution of the housing need within the State, as identified in the States approved housing strategy. Participating States shall distribute assistance to rural areas in amounts that take into account the nonmetropolitan share of the States total population and objective measures of rural housing need, such as poverty and substandard housing, as set forth in the States housing strategy approved under section 12705 of this title. To the extent the need is within the boundaries of a participating unit of general local government, the State and the unit of general local government shall coordinate activities to address that need.
(Pub. L. 101625, title II, § 222, Nov. 28, 1990, 104 Stat. 4112.)
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# 42 U.S.C. § 12753 - Penalties for misuse of funds
## Text
If the Secretary finds after reasonable notice and opportunity for hearing that a participating jurisdiction has failed to comply substantially with any provision of this part and until the Secretary is satisfied that there is no longer any such failure to comply, the Secretary shall reduce the line of credit in the participating jurisdictions HOME Investment Trust Fund by the amount of any expenditures that were not in accordance with the requirements of this subchapter, and the Secretary may—
(1) prevent withdrawals from the participating jurisdictions HOME Investment Trust Fund for activities affected by such failure to comply;
(2) restrict the participating jurisdictions activities under this subchapter to activities that conform to one or more model programs made available under section 12743 of this title; or
(3) remove the participating jurisdiction from participation in allocations or reallocations of funds made available under this part.
(Pub. L. 101625, title II, § 223, Nov. 28, 1990, 104 Stat. 4112.)
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# 42 U.S.C. § 12754 - Limitation on jurisdictions under court order
## Text
(a) In general Notwithstanding any other provision of this Act, the Secretary shall ensure that funds provided under this part are not employed to carry out housing remedies or to pay fines, penalties, or costs associated with an action in which—
(1) a participating jurisdiction has been adjudicated, by a Federal, State, or local court, to be in violation of title VI of the Civil Rights Act of 1964 [42 U.S.C. 2000d et seq.], the Fair Housing Act [42 U.S.C. 3601 et seq.], or any other Federal, State, or local law promoting fair housing or prohibiting discrimination, or
(2) a settlement has been entered into in any case where claims of such violations have been asserted against a participating jurisdiction, except to the extent permitted by subsection (b).
(b) Remedial use of funds permitted In the case of settlement described in subsection (a)(2), a jurisdiction may use funds provided under this Act to carry out housing remedies with eligible activities.
(Pub. L. 101625, title II, § 224, Nov. 28, 1990, 104 Stat. 4113.)
## Notes
Editorial Notes
References in TextThis Act, referred to in text, is Pub. L. 101625, Nov. 28, 1990, 104 Stat. 4079, known as the Cranston-Gonzalez National Affordable Housing Act. For complete classification of this Act to the Code, see Short Title note set out under section 12701 of this title and Tables. The Civil Rights Act of 1964, referred to in subsec. (a)(1), is Pub. L. 88352, July 2, 1964, 78 Stat. 241. Title VI of the Act is classified generally to subchapter V (§ 2000d et seq.) of chapter 21 of this title. For complete classification of this Act to the Code, see Short Title note set out under section 2000a of this title and Tables. The Fair Housing Act, referred to in subsec. (a)(1), is title VIII of Pub. L. 90284, Apr. 11, 1968, 82 Stat. 81, which is classified principally to subchapter I (§ 3601 et seq.) of chapter 45 of this title. For complete classification of this Act to the Code, see Short Title note set out under section 3601 of this title and Tables.
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# 42 U.S.C. § 12755 - Tenant and participant protections
## Text
(a) Lease The lease between a tenant and an owner of affordable housing assisted under this subchapter for rental shall be for not less than one year, unless by mutual agreement between the tenant and the owner, and shall contain such terms and conditions as the Secretary shall determine to be appropriate.
(b) Termination of tenancy An owner shall not terminate the tenancy or refuse to renew the lease of a tenant of rental housing assisted under this subchapter except for serious or repeated violation of the terms and conditions of the lease, for violation of applicable Federal, State, or local law, or for other good cause. Any termination or refusal to renew must be preceded by not less than 30 days by the owners service upon the tenant of a written notice specifying the grounds for the action. Such 30-day waiting period is not required if the grounds for the termination or refusal to renew involve a direct threat to the safety of the tenants or employees of the housing, or an imminent and serious threat to the property (and the termination or refusal to renew is in accordance with the requirements of State or local law).
(c) Maintenance and replacement The owner of rental housing assisted under this subchapter shall maintain the premises in compliance with all applicable housing quality standards and local code requirements.
(d) Tenant selection The owner of rental housing assisted under this subchapter shall adopt written tenant selection policies and criteria that—
(1) are consistent with the purpose of providing housing for very low-income and low-income families,
(2) are reasonably related to program eligibility and the applicants ability to perform the obligations of the lease,
(3) give reasonable consideration to the housing needs of families that would have a preference under section 1437d(c)(4)(A) of this title, and
(4) provide for (A) the selection of tenants from a written waiting list in the chronological order of their application, insofar as is practicable, and (B) for 11 So in original. The word “for” probably should not appear. the prompt notification in writing of any rejected applicant of the grounds for any rejection.
(Pub. L. 101625, title II, § 225, Nov. 28, 1990, 104 Stat. 4113; Pub. L. 114113, div. L, title II, § 235, Dec. 18, 2015, 129 Stat. 2896.)
## Notes
Editorial Notes
Amendments2015—Subsec. (b). Pub. L. 114113 inserted at end “Such 30-day waiting period is not required if the grounds for the termination or refusal to renew involve a direct threat to the safety of the tenants or employees of the housing, or an imminent and serious threat to the property (and the termination or refusal to renew is in accordance with the requirements of State or local law).”
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# 42 U.S.C. § 12756 - Monitoring of compliance
## Text
(a) Enforceable agreements Each participating jurisdiction, through binding contractual agreements with owners and otherwise, shall ensure long-term compliance with the provisions of this subchapter. Such measures shall provide for (1) enforcement of the provisions of this subchapter by the jurisdiction or by the intended beneficiaries, and (2) remedies for the breach of such provisions.
(b) Periodic monitoring Each participating jurisdiction, not less frequently than annually, shall review the activities of owners of affordable housing assisted under this subchapter for rental to assess compliance with the requirements of this subchapter. Such review shall include on-site inspection to determine compliance with housing codes and other applicable regulations. The results of each review shall be included in the jurisdictions performance report submitted to the Secretary under section 12708(a) of this title and made available to the public.
(c) Special procedures for certain projects In the case of small-scale or scattered site housing, the Secretary may provide for such streamlined procedures for achieving the purposes of this section as the Secretary determines to be appropriate.
(Pub. L. 101625, title II, § 226, Nov. 28, 1990, 104 Stat. 4114.)
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# 42 U.S.C. § 12771 - Set-aside for community housing development organizations
## Text
(a) In general For a period of 24 months after funds under part A are made available to a jurisdiction, the jurisdiction shall reserve not less than 15 percent of such funds for investment only in housing to be developed, sponsored, or owned by community housing development organizations. Each participating jurisdiction shall make reasonable efforts to identify community housing development organizations that are capable or can reasonably be expected to become capable of carrying out elements of the jurisdictions housing strategy and to encourage such community housing development organizations to do so. If during the first 24 months of its participation under this subchapter, a participating jurisdiction is unable to identify a sufficient number of capable community housing development organizations, then up to 20 percent of the funds allocated to that jurisdiction under this section, but not to exceed $150,000, may be made available to carry out activities that develop the capacity of community housing development organizations in that jurisdiction. A participating jurisdiction is authorized to enter into contracts with community housing development organizations to carry out this section.
(b) Recapture and reuse If any funds reserved under subsection (a) remain uninvested for a period of 24 months, then the Secretary shall deduct such funds from the line of credit in the participating jurisdictions HOME Investment Trust Fund and make such funds available by direct reallocation (1) to other participating jurisdictions for affordable housing developed, sponsored or owned by community housing development organizations, or (2) to nonprofit intermediary organizations to carry out activities that develop the capacity of community housing development organizations consistent with section 12773 of this title, with preference to community housing development organizations serving the jurisdiction from which the funds were recaptured.
(c) Direct reallocation criteria Insofar as practicable, direct reallocations under this section shall be made according to the selection criteria established under section 12747(c) of this title.
(Pub. L. 101625, title II, § 231, Nov. 28, 1990, 104 Stat. 4114; Pub. L. 102550, title II, § 212(a), (b), Oct. 28, 1992, 106 Stat. 3757.)
## Notes
Editorial Notes
Amendments1992—Subsec. (a). Pub. L. 102550 substituted “24” for “18” in first sentence and inserted after second sentence “If during the first 24 months of its participation under this subchapter, a participating jurisdiction is unable to identify a sufficient number of capable community housing development organizations, then up to 20 percent of the funds allocated to that jurisdiction under this section, but not to exceed $150,000, may be made available to carry out activities that develop the capacity of community housing development organizations in that jurisdiction.” Subsec. (b). Pub. L. 102550, § 212(a), substituted “24” for “18”.
Statutory Notes and Related Subsidiaries
Effective Date of 1992 AmendmentAmendment by Pub. L. 102550 applicable to unexpended funds allocated under subchapter II of this chapter in fiscal year 1992, except as otherwise specifically provided, see section 223 of Pub. L. 102550, set out as a note under section 12704 of this title.
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# 42 U.S.C. § 12772 - Project-specific assistance to community housing development organizations
## Text
(a) In general Amounts reserved under section 12771 of this title may be used for activities eligible under section 12742 of this title and, in amounts not to exceed 10 percent of the amounts so reserved, for other activities specified under this section.
(b) Project-specific technical assistance and site control loans (1) In general Amounts reserved under section 12771 of this title may be used to provide technical assistance and site control loans to community housing development organizations in the early stages of site development for an eligible project. Such loans shall not exceed amounts that the jurisdiction determines to be customary and reasonable project preparation costs allowable under paragraph (2).
(2) Allowable expenses A loan under this subsection may be provided to cover project expenses necessary to determine project feasibility (including costs of an initial feasibility study), consulting fees, costs of preliminary financial applications, legal fees, architectural fees, engineering fees, engagement of a development team, site control and title clearance.
(3) Repayment A community housing development organization that receives a loan under this subsection shall repay the loan to the participating jurisdictions HOME Investment Trust Fund from construction loan proceeds or other project income. The participating jurisdiction may waive repayment of the loan, in part or in whole, if there are impediments to project development that the participating jurisdiction determines are reasonably beyond the control of the borrower.
(c) Project-specific seed money loans (1) In general Amounts reserved under section 12771 of this title may be used to provide loans to community housing development organizations to cover preconstruction project costs that the jurisdiction determines to be customary and reasonable, including, but not limited to the costs of obtaining firm construction loan commitments, architectural plans and specifications, zoning approvals, engineering studies and legal fees.
(2) Eligible sponsors A loan under this subsection may be provided only to a community housing development organization that has, with respect to the project concerned, site control, a preliminary financial commitment, and a capable development team.
(3) Repayment A community housing development organization that receives a loan under this subsection shall repay the loan to the jurisdictions HOME Investment Trust Fund from construction loan proceeds or other project income. The participating jurisdiction may waive repayment of the loan, in whole or in part, if there are impediments to project development that the participating jurisdiction determines are reasonably beyond the control of the borrower.
(Pub. L. 101625, title II, § 232, Nov. 28, 1990, 104 Stat. 4115.)
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# 42 U.S.C. § 12773 - Housing education and organizational support
## Text
(a) In general The Secretary is authorized to provide education and organizational support assistance, in conjunction with other assistance made available under this part—
(1) to facilitate the education of low-income homeowners and tenants;
(2) to promote the ability of community housing development organizations, including community land trusts, to maintain, rehabilitate and construct housing for low-income and moderate-income families in conformance with the requirements of this subchapter; and
(3) to achieve the purposes under paragraphs (1) and (2) by helping women who reside in low- and moderate-income neighborhoods rehabilitate and construct housing in the neighborhoods.
(b) Eligible activities Assistance under this section may be used only for the following eligible activities:
(1) Organizational support Organizational support assistance may be made available to community housing development organizations to cover operational expenses and to cover expenses for training and technical, legal, engineering and other assistance to the board of directors, staff, and members of the community housing development organization.
(2) Housing education Housing education assistance may be made available to community housing development organizations to cover expenses for providing or administering programs for educating, counseling, or organizing homeowners and tenants who are eligible to receive assistance under other provisions of this subchapter.
(3) Program-wide support of nonprofit development and management Technical assistance, training, and continuing support may be made available to eligible community housing development organizations for managing and conserving properties developed under this subchapter.
(4) Benevolent loan funds Technical assistance may be made available to increase the investment of private capital in housing for very low-income families, particularly by encouraging the establishment of benevolent loan funds through which private financial institutions will accept deposits at below-market interest rates and make those funds available at favorable rates to developers of low-income housing and to low-income homebuyers.
(5) Community development banks and credit unions Technical assistance may be made available to establish privately owned, local community development banks and credit unions to finance affordable housing.
(6) Community land trusts Organizational support, technical assistance, education, training, and continuing support under this subsection may be made available to community land trusts (as such term is defined in subsection (f)) and to community groups for the establishment of community land trusts.
(7) Facilitating women in homebuilding professions Technical assistance may be made available to businesses, unions, and organizations involved in construction and rehabilitation of housing in low- and moderate-income areas to assist women residing in the area to obtain jobs involving such activities, which may include facilitating access by such women to, and providing, apprenticeship and other training programs regarding nontraditional skills, recruiting women to participate in such programs, providing continuing support for women at job sites, counseling and educating businesses regarding suitable work environments for women, providing information to such women regarding opportunities for establishing small housing construction and rehabilitation businesses, and providing materials and tools for training such women (in an amount not exceeding 10 percent of any assistance provided under this paragraph). The Secretary shall give priority under this paragraph to providing technical assistance for organizations rehabilitating single family or multifamily housing owned or controlled by the Secretary pursuant to title II of the National Housing Act [12 U.S.C. 1707 et seq.] and which have women members in occupations in which women constitute 25 percent or less of the total number of workers in the occupation (in this section referred to as “nontraditional occupations”).
(c) Delivery of assistance The Secretary shall provide this assistance only through contract—
(1) with a nonprofit intermediary organization that, in the determination of the Secretary—
(A) customarily provides, in more than one community, services related to the provision of decent housing that is affordable to low-income and moderate-income persons or the revitalization of deteriorating neighborhoods;
(B) has demonstrated experience in providing a range of assistance (such as financing, technical assistance, construction and property management assistance, capacity building and training) to community housing development organizations or similar organizations that engage in community revitalization;
(C) has demonstrated the ability to provide technical assistance and training for community-based developers of affordable housing;
(D) has described the uses to which such assistance will be put and the intended beneficiaries of the assistance; and
(E) in the case of activities under subsection (b)(7), is a community-based organization (as such term is defined in section 4 of the Job Training Partnership Act) or public housing agency, which has demonstrated experience in preparing women for apprenticeship training in construction or administering programs for training women for construction or other nontraditional occupations (and such organizations may use assistance for activities under such subsection to employ women in housing construction and rehabilitation activities to the extent that the organization has the capacity to conduct such activities); or
(2) with another organization, if a participating jurisdiction demonstrates that the organization is qualified to carry out eligible activities and that the jurisdiction would not be served in a timely manner by intermediaries specified under paragraph (1).
Contracts under paragraph (2) shall be for activities specified in an application from the participating jurisdiction, which application shall include a certification that the activities are necessary to the effective implementation of the participating jurisdictions housing strategy.
(d) Limitations Contracts under this section with any one contractor for a fiscal year may not—
(1) exceed 40 percent of the amount appropriated for this section for such fiscal year; or
(2) provide more than 20 percent of the operating budget (which shall not include funds that are passed through to community housing development organizations) of the contracting organization for any one year.
(e) Single-State contractors Not less than 25 percent of the funds made available for this section in an appropriations Act in any fiscal year shall be made available for eligible contractors that have worked primarily in one State. The Secretary shall provide assistance under this section, to the extent applications are submitted and approved, to contractors in each of the geographic regions having a regional office of the Department of Housing and Urban Development.
(f) “Community land trust” defined For purposes of this section, the term “community land trust” means a community housing development organization (except that the requirements under subparagraphs (C) and (D) of section 12704(6) of this title shall not apply for purposes of this subsection)—
(1) that is not sponsored by a for-profit organization;
(2) that is established to carry out the activities under paragraph (3);
(3) that—
(A) acquires parcels of land, held in perpetuity, primarily for conveyance under long-term ground leases;
(B) transfers ownership of any structural improvements located on such leased parcels to the lessees; and
(C) retains a preemptive option to purchase any such structural improvement at a price determined by formula that is designed to ensure that the improvement remains affordable to low- and moderate-income families in perpetuity;
(4) whose corporate membership that is open to any adult resident of a particular geographic area specified in the bylaws of the organization; and
(5) whose board of directors—
(A) includes a majority of members who are elected by the corporate membership; and
(B) is composed of equal numbers of (i) lessees pursuant to paragraph (3)(B), (ii) corporate members who are not lessees, and (iii) any other category of persons described in the bylaws of the organization.
(Pub. L. 101625, title II, § 233, Nov. 28, 1990, 104 Stat. 4116; Pub. L. 102550, title II, § 213, Oct. 28, 1992, 106 Stat. 3757; Pub. L. 1118, div. I, title II, § 229(1), (2), Mar. 11, 2009, 123 Stat. 978.)
## Notes
Editorial Notes
References in TextThe National Housing Act, referred to in subsec. (b)(7), is act June 27, 1934, ch. 847, 48 Stat. 1246. Title II of the Act is classified principally to subchapter II (§ 1707 et seq.) of chapter 13 of Title 12, Banks and Banking. For complete classification of this Act to the Code, see section 1701 of Title 12 and Tables. Section 4 of the Job Training Partnership Act, referred to in subsec. (c)(1)(E), which was classified to section 1503 of Title 29, Labor, was repealed by Pub. L. 105220, title I, § 199(b)(2), (c)(2)(B), Aug. 7, 1998, 112 Stat. 1059, effective July 1, 2000. Pursuant to former section 2940(b) of Title 29, references to a provision of the Job Training Partnership Act, effective Aug. 7, 1998, were deemed to refer to that provision or the corresponding provision of the Workforce Investment Act of 1998, Pub. L. 105220, Aug. 7, 1998, 112 Stat. 936, and, effective July 1, 2000, were deemed to refer to the corresponding provision of the Workforce Investment Act of 1998. The Workforce Investment Act of 1998 was repealed by Pub. L. 113128, title V, §§ 506, 511(a), July 22, 2014, 128 Stat. 1703, 1705, effective July 1, 2015. Pursuant to section 3361(a) of Title 29, references to a provision of the Workforce Investment Act of 1998 are deemed to refer to the corresponding provision of the Workforce Innovation and Opportunity Act, Pub. L. 113128, July 22, 2014, 128 Stat. 1425, effective July 1, 2015. For complete classification of the Job Training Partnership Act and the Workforce Investment Act of 1998 to the Code, see Tables. For complete classification of the Workforce Innovation and Opportunity Act to the Code, see Short Title note set out under section 3101 of title 29 and Tables.
Amendments2009—Subsec. (d)(1). Pub. L. 1118, § 229(1), substituted “40” for “20”. Subsec. (e). Pub. L. 1118, § 229(2), substituted “25” for “40”. 1992—Subsec. (a)(2). Pub. L. 102550, § 213(a)(1), inserted “, including community land trusts,” after “organizations”. Subsec. (a)(3). Pub. L. 102550, § 213(b)(1), added par. (3). Subsec. (b)(6). Pub. L. 102550, § 213(a)(2), added par. (6). Subsec. (b)(7). Pub. L. 102550, § 213(b)(2), added par. (7). Subsec. (c)(1)(E). Pub. L. 102550, § 213(b)(3), added subpar. (E). Subsec. (e). Pub. L. 102550, § 213(b)(4), inserted at end “The Secretary shall provide assistance under this section, to the extent applications are submitted and approved, to contractors in each of the geographic regions having a regional office of the Department of Housing and Urban Development.” Subsec. (f). Pub. L. 102550, § 213(a)(3), added subsec. (f).
Statutory Notes and Related Subsidiaries
Effective Date of 1992 AmendmentAmendment by Pub. L. 102550 applicable to unexpended funds allocated under subchapter II of this chapter in fiscal year 1992, except as otherwise specifically provided, see section 223 of Pub. L. 102550, set out as a note under section 12704 of this title.
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# 42 U.S.C. § 12774 - Other requirements
## Text
(a) Tenant participation plan A community housing development organization that receives assistance under this part shall provide a plan for and follow a program of tenant participation in management decisions and shall adhere to a fair lease and grievance procedure approved by the participating jurisdiction.
(b) Limitation on assistance A community housing development organization may not receive assistance under this subchapter for any fiscal year in an amount that provides more than 50 percent of the organizations total operating budget in the fiscal year or $50,000 annually, whichever is greater.
(c) Adjustments of other assistance The Secretary shall take account of assistance provided to a project under this part when adjusting other assistance to be provided to the project as required by section 3545(d) of this title.
(Pub. L. 101625, title II, § 234, Nov. 28, 1990, 104 Stat. 4117; Pub. L. 102550, title II, § 212(c), Oct. 28, 1992, 106 Stat. 3757.)
## Notes
Editorial Notes
Amendments1992—Subsec. (b). Pub. L. 102550 struck out “, together with other Federal assistance,” after “in an amount that” and inserted before period “or $50,000 annually, whichever is greater”.
Statutory Notes and Related Subsidiaries
Effective Date of 1992 AmendmentAmendment by Pub. L. 102550 applicable to unexpended funds allocated under subchapter II of this chapter in fiscal year 1992, except as otherwise specifically provided, see section 223 of Pub. L. 102550, set out as a note under section 12704 of this title.
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# 42 U.S.C. § 12781 - Authority
## Text
The Secretary shall, insofar as is feasible through contract with eligible organizations, develop the capacity of participating jurisdictions, State and local housing finance agencies, nonprofit organizations and for-profit corporations, working in partnership, to identify and meet needs for an increased supply of decent, affordable housing.
(Pub. L. 101625, title II, § 241, Nov. 28, 1990, 104 Stat. 4117.)
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# 42 U.S.C. § 12782 - Priorities for capacity development
## Text
To carry out section 12781 of this title, the Secretary shall provide assistance under this part to—
(1) facilitate the exchange of information that would help participating jurisdictions carry out the purposes of this subchapter, including information on program design, housing finance, land use controls, and building construction techniques;
(2) improve the ability of States and units of general local government to design and implement comprehensive housing affordability strategies, particularly those States and units of general local government that are relatively inexperienced in the development of affordable housing;
(3) encourage private lenders and for-profit developers of low-income housing to participate in public-private partnerships to achieve the purposes of this subchapter;
(4) improve the ability of States and units of general local government, community housing development organizations, private lenders, and for-profit developers of low-income housing to incorporate energy efficiency into the planning, design, financing, construction, and operation of affordable housing;
(5) facilitate the establishment and efficient operation of employer-assisted housing programs through research, technical assistance and demonstration projects; and
(6) facilitate the establishment and efficient operation of land bank programs, under which title to vacant and abandoned parcels of real estate located in or causing blighted neighborhoods is cleared for use consistent with the purposes of this subchapter.
(Pub. L. 101625, title II, § 242, Nov. 28, 1990, 104 Stat. 4118; Pub. L. 102550, title II, § 214(a), Oct. 28, 1992, 106 Stat. 3759.)
## Notes
Editorial Notes
Amendments1992—Par. (6). Pub. L. 102550 added par. (6).
Statutory Notes and Related Subsidiaries
Effective Date of 1992 AmendmentAmendment by Pub. L. 102550 applicable to unexpended funds allocated under subchapter II of this chapter in fiscal year 1992, except as otherwise specifically provided, see section 223 of Pub. L. 102550, set out as a note under section 12704 of this title.
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# 42 U.S.C. § 12783 - Conditions of contracts
## Text
(a) Eligible organizations The Secretary shall carry out this part insofar as is practicable through contract with—
(1) a participating jurisdiction or agency thereof;
(2) a public purpose organization established pursuant to State or local legislation and responsible to the chief elected official of a participating jurisdiction;
(3) an agency or authority established by two or more participating jurisdictions to carry out activities consistent with the purposes of this subchapter;
(4) a national or regional nonprofit organization that has a membership comprised predominantly of entities or officials of entities that qualify under paragraph (1), (2), or (3); or
(5) a professional and technical services company or firm that has demonstrated capacity to provide services under this part.
(b) Contract terms Contracts under this part shall be for not more than 3 years and shall provide not more than 20 percent of the operating budget of the contracting organization in any one year. Within any fiscal year, contracts with any one organization may not be entered into for a total of more than 40 percent of the funds appropriated under this part in that fiscal year.
(Pub. L. 101625, title II, § 243, Nov. 28, 1990, 104 Stat. 4118; Pub. L. 1118, div. I, title II, § 229(3), Mar. 11, 2009, 123 Stat. 978.)
## Notes
Editorial Notes
Amendments2009—Subsec. (b). Pub. L. 1118 substituted “40 percent of the funds” for “20 percent of the funds”.
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# 42 U.S.C. § 12784 - Research in housing affordability
## Text
The Secretary is authorized to support, through contracts with eligible organizations and otherwise, such research and to publish such reports as will assist in the achievement of the purposes of this subchapter. Activities authorized by the previous sentence may include an ongoing analysis of the impact of public policies at the Federal, State, and local levels, both individually and in the aggregate, on the incentives to expand and maintain the supply of energy-efficient affordable housing in the United States, particularly in areas with severe problems of housing affordability, through the use of cost-saving innovative building technology and construction techniques. For purposes of this section, agencies of the United States, government-sponsored mortgage finance corporations, and qualified research organizations shall be included as eligible organizations in addition to eligible organizations specified under section 12783 of this title.
(Pub. L. 101625, title II, § 244, Nov. 28, 1990, 104 Stat. 4118; Pub. L. 102550, title II, § 215, Oct. 28, 1992, 106 Stat. 3759.)
## Notes
Editorial Notes
Amendments1992—Pub. L. 102550 inserted before period at end of second sentence “, through the use of cost-saving innovative building technology and construction techniques”.
Statutory Notes and Related Subsidiaries
Effective Date of 1992 AmendmentAmendment by Pub. L. 102550 applicable to unexpended funds allocated under subchapter II of this chapter in fiscal year 1992, except as otherwise specifically provided, see section 223 of Pub. L. 102550, set out as a note under section 12704 of this title.
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# 42 U.S.C. § 12785 - REACH: asset recycling information dissemination
## Text
(a) In general The Secretary shall make available upon request by any participating jurisdiction a list of eligible properties that are located within the jurisdiction and that are owned or controlled by the Department of Housing and Urban Development to facilitate the purchase, development, or rehabilitation of such properties with assistance made available under this subchapter.
(b) Eligible properties An eligible property under this section shall—
(1) be an unoccupied single-family or multifamily dwelling, such that acquisition and rehabilitation of the dwelling would not result in the displacement of any residents of the dwelling; and
(2) have an appraised value that does not exceed (A) in the case of a 1- to 4-family dwelling, 95 percent of the median purchase price for the area for such dwellings, as determined by the Secretary, or (B) in the case of a dwelling with more than 4 units, the applicable maximum dollar amount limitation under section 1715l(d)(3)(ii) of title 12 for elevator-type structures.
(Pub. L. 101625, title II, § 245, Nov. 28, 1990, 104 Stat. 4119.)
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# 42 U.S.C. § 12801 - General authority
## Text
Among the alternative model programs that the Secretary shall make available for use by participating jurisdictions under the provisions of section 12743 of this title shall be model programs specified in this part. The Secretary shall keep these specified model programs under review and submit to Congress such recommendations for change as the Secretary determines to be appropriate.
(Pub. L. 101625, title II, § 251, Nov. 28, 1990, 104 Stat. 4119.)
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# 42 U.S.C. § 12802 - Rental housing production
## Text
(a) Repayable advances (1) In general The Secretary shall make available a model program under which repayable advances may be made to public and private project sponsors in constructing, acquiring, or substantially rehabilitating projects to be used as affordable rental housing, including limited equity cooperatives and mutual housing.
(2) Maximum amount of advance An advance under this model program shall not exceed 50 percent of the total costs associated with the construction, acquisition, or substantial rehabilitation of the project, as determined by the participating jurisdiction.
(3) Terms of repayment (A) Interest payments (i) In general Under the model program, advances shall be repaid with interest calculated at a rate of not more than 3 percent per year, as determined by the participating jurisdiction to be appropriate. Interest shall begin to accrue 1 year after the completion of the construction, acquisition, or substantial rehabilitation of the project and shall be payable in annual installments.
(ii) Exception Interest and any accrued interest shall be payable only from the surplus cash flow of the project, after a minimum return on equity determined by the participating jurisdiction to be appropriate. As used in the previous sentence, the term “surplus cash flow” means the cash flow of the project after the payment of all amounts due under the first mortgage, operating expenses, and required replacement reserves, as determined by the participating jurisdiction.
(B) Additional interest payments Under the model program, for any year in which the sum of the surplus cash flow of a project and the return on equity exceeds all interest payments due under subparagraph (A), 50 percent of the excess surplus cash flow shall be paid to the participating jurisdictions HOME Investment Trust Fund as additional interest.
(C) Principal and unpaid interest The principal amount of an advance under the model program, and any interest remaining unpaid pursuant to subparagraph (A)(ii) shall be repayable when the housing no longer qualifies as affordable housing in accordance with section 12749(b) of this title.
(b) Selection guidelines (1) In general The Secretary shall establish guidelines for the selection of projects by participating jurisdictions for assistance under the model program. Such guidelines shall be designed to select projects in areas and for markets demonstrating the greatest need for the production of affordable rental housing.
(2) Specific requirements The selection guidelines may include—
(A) the extent of the shortage of rental housing in the area that is available to low-income families;
(B) the extent large families with children will be served by the project;
(C) the extent to which the project provides congregate facilities and has available supportive services that will permit elderly or handicapped residents who become frail and are in need of assistance in living to continue to reside in the project;
(D) the extent of very low-income and low-income occupancy in excess of the income targeting requirements in section 12744 of this title;
(E) the extent of the project sponsors commitment of equity to the project (except that this criterion shall not apply to or affect the selection of applications submitted by public housing agencies and nonprofit entities);
(F) the extent of the project sponsors commitment of equity to the project in comparison to the value of all public assistance for the project, including assistance under this subchapter, other Federal assistance and financing, and State and local government contributions (except that this criterion shall not apply to or affect the selection of applications submitted by public housing agencies and nonprofit entities);
(G) the extent of non-Federal public or private assistance to the project;
(H) the extent to which the project provides supportive services for persons with disabilities; and
(I) any other factor determined by the Secretary to be appropriate.
(c) Guidelines The Secretary shall publish guidelines for the model program under this section not later than 180 days after November 28, 1990.
(Pub. L. 101625, title II, § 252, Nov. 28, 1990, 104 Stat. 4119.)
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# 42 U.S.C. § 12803 - Rental rehabilitation
## Text
(a) In general The Secretary shall make available a model program to support the rehabilitation of privately owned rental housing located in neighborhoods where the median income does not exceed 80 percent of the area median as determined by the Secretary and where rents can reasonably be expected not to change materially over an extended period of time.
(b) Amount of subsidy The amount of the rehabilitation subsidy shall be moderate and shall generally not exceed 50 percent of the total costs associated with the rehabilitation of the housing.
(c) Additional restrictions The guidelines of the model program shall generally comport with the additional protections and restrictions specified under section 1437o(c) 11 See References in Text note below. of this title.
(Pub. L. 101625, title II, § 253, Nov. 28, 1990, 104 Stat. 4121.)
## Notes
Editorial Notes
References in TextSection 1437o of this title, referred to in subsec. (c), was repealed by Pub. L. 101625, title II, § 289(b), Nov. 28, 1990, 104 Stat. 4128.
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# 42 U.S.C. § 12804 - Rehabilitation loans
## Text
(a) In general The Secretary shall make available a model program to provide direct loans to finance the rehabilitation of low and moderate income single family and multifamily residential properties.
(b) Condition of loans The Secretary shall establish terms and conditions to ensure that such loans are acceptable risks, taking into consideration the need for rehabilitation, the security for the loan and the ability of the borrower to repay the loan. The Secretary may establish the interest rate for loans under the model program, which shall include special interest rates for loans to borrowers with incomes below 80 percent of the area median income.
(c) Additional restrictions Guidelines for the model program may require that the property—
(1) be located in an area that contains a substantial number of dwellings in need of rehabilitation;
(2) the property 11 So in original. The words “the property” probably should not appear. is residential and owner-occupied; and
(3) the property 1 is in need of rehabilitation or concentrated code enforcement within a reasonable time, and the rehabilitation of such property is consistent with a local plan for rehabilitation or code enforcement.
Additional guidelines for the model program shall generally comport with the additional protections and restrictions specified under section 1452b 22 See References in Text note below. of this title.
(Pub. L. 101625, title II, § 254, Nov. 28, 1990, 104 Stat. 4121.)
## Notes
Editorial Notes
References in TextSection 1452b of this title, referred to in subsec. (c), was repealed by Pub. L. 101625, title II, § 289(b)(1), Nov. 28, 1990, 104 Stat. 4128, which is classified to section 12839(b)(1) of this title.
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# 42 U.S.C. § 12806 - Home repair services grants for older and disabled homeowners
## Text
(a) In general The Secretary shall make available a model program to provide home repair services for older homeowners and disabled homeowners, including such services as the examination of homes, repair services, and follow-up to ensure the continued effectiveness of the repairs provided.
(b) Eligible recipients Home repair services shall be provided to homeowners who—
(1) own and reside in the dwellings for which services are provided;
(2) are older or disabled; and
(3) are members of low-income families.
(c) Permitted restrictions Guidelines for the model program shall require that—
(1) assisted dwelling units be the primary residence of the homeowner for whom services are provided;
(2) preferences be provided for (A) very low-income families, and (B) individuals with intense need characterized by noneconomic factors such as physical and mental disabilities, language barriers, and cultural, social, or geographical isolation caused by racial or ethnic status that restricts the ability of an individual to perform normal daily tasks or that threatens the capacity of the individual to live independently;
(3) any fees charged be based on the income of the individual receiving the home repair services.
(Pub. L. 101625, title II, § 256, Nov. 28, 1990, 104 Stat. 4122.)
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# 42 U.S.C. § 12807 - Low-income housing conservation and efficiency grant programs
## Text
(a) In general The Secretary shall make available a model program to provide safe, energy-efficient affordable housing for low-income persons.
(b) Activities The model program shall provide for—
(1) identification of housing that is—
(A) owned and occupied by low-income families who have received, are currently receiving, or are scheduled to receive assistance under the weatherization assistance for low-income persons program under part A of title IV of the Energy Conservation and Production Act [42 U.S.C. 6861 et seq.] (or a comparable Federal or State program);
(B) in danger of becoming uninhabitable within a 5-year period because of structural weaknesses or problems; and
(C) not sufficiently sound to permit energy conservation improvements without other repair or rehabilitation measures to protect such energy investments;
(2) repairs that will significantly prolong the habitability of units identified under paragraph (1), including roofing, electrical, plumbing, furnace, and foundation repairs or replacement that will prolong the use of the unit as a safe and energy-efficient residence for low-income persons; and
(3) reasonable steps to ensure that any units so repaired will remain occupied by persons or families eligible for assistance under this subchapter.
(Pub. L. 101625, title II, § 257, Nov. 28, 1990, 104 Stat. 4122.)
## Notes
Editorial Notes
References in TextThe Energy Conservation and Production Act, referred to in subsec. (b)(1)(A), is Pub. L. 94385, Aug. 14, 1976, 90 Stat. 1142. Part A of title IV of the Act is classified generally to part A (§ 6861 et seq.) of subchapter III of chapter 81 of this title. For complete classification of this Act to the Code, see Short Title note set out under section 6801 of this title and Tables.
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# 42 U.S.C. § 12808 - Second mortgage assistance for first-time homebuyers
## Text
(a) In general The Secretary shall make available a model program under which units of general local government provide loans (secured by second mortgages) with deferred payment of interest and principal to first-time homebuyers.
(b) Homeownership counseling The program under this section shall provide for homeownership counseling to first-time homebuyers assisted, which shall include—
(1) counseling before and after purchase of the property;
(2) assisting first-time homebuyers in identifying the most suitable and affordable properties;
(3) providing homebuyers with financial management assistance;
(4) assisting homebuyers in understanding mortgage transactions and home sales contracts; and
(5) assisting homebuyers with eliminating any credit problems that may prevent the homebuyers from purchasing the property.
(c) Eligibility requirements Deferred payment loans secured by second mortgages may be provided under the model program under this section if—
(1) the homebuyer assisted is a first-time homebuyer;
(2) the property secured by the second mortgage is a single-family residence and is the principal residence of the homebuyer; and
(3) the principal obligation of the deferred payment loan secured by a second mortgage does not exceed 30 percent of the acquisition price of the residence to the homebuyer.
(d) Payment terms (1) Period of deferral The payment of any principal and interest on a loan under this section shall be deferred for not less than the 5-year period beginning on the date of the acquisition of the residence by the homebuyer.
(2) Interest rate The interest rate on the unpaid balance of a loan under this section shall be at least 4 percent.
(3) Repayment period A deferred payment loan secured by a second mortgage shall be repayable over the 15-year period beginning at the end of the deferral period.
(e) Security A deferred payment loan assisted with amount 11 So in original. Probably should be “amounts”. provided under a grant under this section shall be secured by a lien on the property involved, which lien shall be subordinate to the first mortgage on the property.
(Pub. L. 101625, title II, § 258, Nov. 28, 1990, 104 Stat. 4123.)
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# 42 U.S.C. § 12809 - Rehabilitation of State and local government in rem properties
## Text
(a) In general The Secretary shall make available a model program under which States and units of general local government may convert in rem properties to provide affordable permanent housing for the homeless by leasing such properties to nonprofit organizations and permitting such organizations to rehabilitate the properties.
(b) Target The program shall target vacant properties for rehabilitation by nonprofit organizations.
(Pub. L. 101625, title II, § 259, Nov. 28, 1990, 104 Stat. 4124.)
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# 42 U.S.C. § 12810 - Cost-saving building technologies and construction techniques
## Text
(a) In general The Secretary shall make available a model program to utilize cost-saving building technologies and construction techniques for purposes of providing homeownership and rental opportunities under this subchapter.
(b) Selection criteria The Secretary shall establish criteria for participating jurisdictions to select projects for assistance under the model program which may include—
(1) the extent to which innovative, cost-saving building and construction technologies are utilized;
(2) the extent to which innovative, cost-saving construction techniques are utilized;
(3) the extent to which units will be made available to low-income families and individuals;
(4) the extent to which non-Federal public or private assistance is utilized; and
(5) any other factor, determined by the Secretary to be appropriate.
(c) Guidelines The Secretary shall publish guidelines for the model program under this section not later than 180 days after October 28, 1992.
(d) Report The Secretary shall submit a biennial report to the Congress on the utilization of the model program under this section.
(Pub. L. 101625, title II, § 260, as added Pub. L. 102550, title II, § 216, Oct. 28, 1992, 106 Stat. 3760.)
## Notes
Statutory Notes and Related Subsidiaries
Effective DateSection applicable to unexpended funds allocated under subchapter II of this chapter in fiscal year 1992, except as otherwise specifically provided, see section 223 of Pub. L. 102550, set out as an Effective Date of 1992 Amendment note under section 12704 of this title.
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# 42 U.S.C. § 12821 - Omitted
## Notes
Editorial Notes
Codification Section, Pub. L. 101625, title II, § 271, Nov. 28, 1990, 104 Stat. 4124; Pub. L. 108186, title I, § 102, Dec. 16, 2003, 117 Stat. 2686; Pub. L. 1118, div. I, title II, § 229(4), Mar. 11, 2009, 123 Stat. 978, which related to downpayment assistance toward the purchase of single family housing, was omitted from the Code upon the expiration of Secretarys authority on Dec. 31, 2011, to make grants to participating jurisdictions to assist low-income families to achieve homeownership.
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# 42 U.S.C. § 12831 - Equal opportunity
## Text
(a) Solicitation of contracts Each participating jurisdiction shall prescribe procedures acceptable to the Secretary to establish and oversee a minority outreach program within each such jurisdiction to ensure the inclusion, to the maximum extent possible, of minorities and women, and entities owned by minorities and women, including, without limitation, real estate firms, construction firms, appraisal firms, management firms, financial institutions, investment banking firms, underwriters, accountants, and providers of legal services, in all contracts, entered into by the participating jurisdiction with such persons or entities, public and private, in order to facilitate the activities of the participating jurisdiction to provide affordable housing authorized under this Act or any other Federal housing law applicable to such jurisdiction.
(b) Report to Congress Before the end of the 180-day period beginning on the date the first allocation of funds is made under section 12747 of this title, the Secretary shall submit to the Congress a report containing a description of the actions taken by each participating jurisdiction pursuant to subsection (a) and such recommendations for administrative and legislative action as the Secretary may determine to be appropriate to carry out the purposes of such subsection.
(Pub. L. 101625, title II, § 281, Nov. 28, 1990, 104 Stat. 4125.)
## Notes
Editorial Notes
References in TextThis Act, referred to in subsec. (a), is Pub. L. 101625, Nov. 28, 1990, 104 Stat. 4079, known as the Cranston-Gonzalez National Affordable Housing Act. For complete classification of this Act to the Code, see Short Title note set out under section 12701 of this title and Tables.
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# 42 U.S.C. § 12832 - Nondiscrimination
## Text
No person in the United States shall on the grounds of race, color, national origin, religion, or sex be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity funded in whole or in part with funds made available under this subchapter. Any prohibition against discrimination on the basis of age under the Age Discrimination Act of 1975 [42 U.S.C. 6101 et seq.] or with respect to an otherwise qualified handicapped individual as provided in section 794 of title 29 shall also apply to any such program or activity. The Secretary may waive this section in connection with the use of funds made available under this subchapter on lands set aside under the Hawaiian Homes Commission Act, 1920 (42 Stat. 108).
(Pub. L. 101625, title II, § 282, Nov. 28, 1990, 104 Stat. 4125; Pub. L. 104204, title II, § 213, Sept. 26, 1996, 110 Stat. 2904.)
## Notes
Editorial Notes
References in TextThe Age Discrimination Act of 1975, referred to in text, is title III of Pub. L. 94135, Nov. 28, 1975, 89 Stat. 728, which is classified generally to chapter 76 (§ 6101 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 6101 of this title and Tables. The Hawaiian Homes Commission Act, 1920, referred to in text, is act July 9, 1921, ch. 42, 42 Stat. 108, which was classified generally to sections 691 to 718 of Title 48, Territories and Insular Possessions, and was omitted from the Code.
Amendments1996—Pub. L. 104204 inserted at end “The Secretary may waive this section in connection with the use of funds made available under this subchapter on lands set aside under the Hawaiian Homes Commission Act, 1920 (42 Stat. 108).”
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# 42 U.S.C. § 12833 - Audits by Comptroller General
## Text
(a) Audits of HOME Investment Partnerships program The Comptroller General, when the Comptroller General deems it to be appropriate or when requested by the Committee on Banking, Housing, and Urban Affairs of the Senate or the Committee on Banking, Finance and Urban Affairs of the House of Representatives, shall conduct a full financial audit of the records of the HOME Investment Partnerships program for any fiscal year. The report of the Comptroller General shall be submitted promptly to the Secretary and the Congress and shall be published.
(b) Audits of recipients The financial transactions of participating jurisdictions and of other recipients of funds provided under this subchapter may, insofar as they relate to funds provided under this subchapter, be audited by the Government Accountability Office under such rules and regulations as may be prescribed by the Comptroller General of the United States. The representatives of the Government Accountability Office shall have access to all books, accounts, records, reports, files, and other papers, things, or property belonging to or in use by such recipients pertaining to such financial transactions and necessary to facilitate the audit.
(Pub. L. 101625, title II, § 283, Nov. 28, 1990, 104 Stat. 4125; Pub. L. 103233, title II, § 205, Apr. 11, 1994, 108 Stat. 364; Pub. L. 108271, § 8(b), July 7, 2004, 118 Stat. 814.)
## Notes
Editorial Notes
Amendments2004—Subsec. (b). Pub. L. 108271 substituted “Government Accountability Office” for “General Accounting Office” in two places. 1994—Pub. L. 103233, § 205(1), substituted “Audits by Comptroller General” for “Annual audits and accountability” in section catchline. Subsec. (a). Pub. L. 103233, § 205(4), struck out after first sentence “The initiation of an audit for a fiscal year under the previous sentence shall obviate the requirement for an audit by an independent accounting firm under paragraph (a) for that fiscal year.” Pub. L. 103233, § 205(3)(B), (C), redesignated subsec. (b)(1) as (a) and realigned margins. Pub. L. 103233, § 205(2), struck out heading and text of subsec. (a). Text read as follows: “The Secretary, except as provided in paragraph (b)(1), shall contract annually with an independent accounting firm to provide for a full financial audit of the records of the HOME Investment Partnerships program for each fiscal year. Funds available for departmental administration may be used to provide for such audits. Each audit shall be performed as soon as practicable after the close of the fiscal year and in accordance with generally accepted Government auditing standards approved by the Comptroller General of the United States (hereinafter referred to as the Comptroller General), and shall be consistent with the requirements of sections 9105 and 9106 of title 31. The Secretary shall promptly submit the report of the independent accounting firm to the Congress, consistent with the requirements of section 9106 of title 31, and such report shall be published. The requirement for an audit under this section shall be in lieu of the requirement for an audit by the Comptroller General under section 9105(a) of title 31.” Subsec. (b). Pub. L. 103233, § 205(3), struck out heading “Audits by the Comptroller General.—”, redesignated subsec. (b)(2) as (b), and realigned margins.
Statutory Notes and Related Subsidiaries
Change of Name Committee on Banking, Finance and Urban Affairs of House of Representatives treated as referring to Committee on Banking and Financial Services of House of Representatives by section 1(a) of Pub. L. 10414, set out as a note preceding section 21 of Title 2, The Congress. Committee on Banking and Financial Services of House of Representatives abolished and replaced by Committee on Financial Services of House of Representatives, and jurisdiction over matters relating to securities and exchanges and insurance generally transferred from Committee on Energy and Commerce of House of Representatives by House Resolution No. 5, One Hundred Seventh Congress, Jan. 3, 2001.
Effective Date of 1994 AmendmentAmendment by Pub. L. 103233 applicable with respect to any amounts made available to carry out this subchapter after Apr. 11, 1994, and any amounts made available to carry out this subchapter before that date that remain uncommitted on that date, with Secretary to issue any regulations necessary to carry out such amendment not later than end of 45-day period beginning on that date, see section 209 of Pub. L. 103233, set out as a note under section 5301 of this title.
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# 42 U.S.C. § 12834 - Uniform recordkeeping and reports to Congress
## Text
(a) Uniform requirements The Secretary shall develop and establish uniform recordkeeping, performance reporting, and auditing requirements for use by participating jurisdictions.
(b) Omitted
(Pub. L. 101625, title II, § 284, Nov. 28, 1990, 104 Stat. 4126.)
## Notes
Editorial Notes
Codification Subsec. (b) of this section, which required the Secretary to make an annual report to Congress that summarizes and assesses the results of reports provided under this section, terminated, effective May 15, 2000, pursuant to section 3003 of Pub. L. 10466, as amended, set out as a note under section 1113 of Title 31, Money and Finance. See, also, the 3rd item on page 102 of House Document No. 1037.
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# 42 U.S.C. § 12835 - Citizen participation
## Text
The Secretary shall ensure that each participating jurisdiction, and each jurisdiction seeking to become a participating jurisdiction, complies with the requirements of section 12707 of this title.
(Pub. L. 101625, title II, § 285, Nov. 28, 1990, 104 Stat. 4126.)
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# 42 U.S.C. § 12836 - Labor
## Text
(a) In general Any contract for the construction of affordable housing with 12 or more units assisted with funds made available under this part shall contain a provision requiring that not less than the wages prevailing in the locality, as predetermined by the Secretary of Labor pursuant to sections 31413144, 3146, and 3147 of title 40, shall be paid to all laborers and mechanics employed in the development of affordable housing involved, and participating jurisdictions shall require certification as to compliance with the provisions of this section prior to making any payment under such contract.
(b) Waiver Subsection (a) shall not apply if the individual receives no compensation or is paid expenses, reasonable benefits, or a nominal fee to perform the services for which the individual volunteered and such persons are not otherwise employed at any time in the construction work.
(Pub. L. 101625, title II, § 286, Nov. 28, 1990, 104 Stat. 4126.)
## Notes
Editorial Notes
Codification In subsec. (a), “sections 31413144, 3146, and 3147 of title 40” substituted for “the Davis-Bacon Act (40 U.S.C. 276a—276a5)” on authority of Pub. L. 107217, § 5(c), Aug. 21, 2002, 116 Stat. 1303, the first section of which enacted Title 40, Public Buildings, Property, and Works.
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# 42 U.S.C. § 12837 - Interstate agreements
## Text
The consent of the Congress is hereby given to any two or more States to enter into agreements or compacts, not in conflict with any law of the United States, for cooperative efforts and mutual assistance in support of activities authorized under this subchapter as they pertain to interstate areas and to localities within such States, and to establish such agencies, joint or otherwise, as they may deem desirable for making such agreements and compacts effective.
(Pub. L. 101625, title II, § 287, Nov. 28, 1990, 104 Stat. 4127.)
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# 42 U.S.C. § 12838 - Environmental review
## Text
(a) In general In order to assure that the policies of the National Environmental Policy Act of 1969 [42 U.S.C. 4321 et seq.] and other provisions of law which further the purposes of such Act (as specified in regulations issued by the Secretary) are most effectively implemented in connection with the expenditure of funds under this subchapter, and to assure to the public undiminished protection of the environment, the Secretary, in lieu of the environmental protection procedures otherwise applicable, may under regulations provide for the release of funds for particular projects to jurisdictions or insular areas under this subchapter who assume all of the responsibilities for environmental review, decisionmaking, and action pursuant to such Act, and such other provisions of law as the regulations of the Secretary specify, that would apply to the Secretary were he to undertake such projects as Federal projects. The Secretary shall issue regulations to carry out this section only after consultation with the Council on Environmental Quality. The regulations shall provide—
(1) for the monitoring of the environmental reviews performed under this section;
(2) in the discretion of the Secretary, to facilitate training for the performance of such reviews; and
(3) for the suspension or termination of the assumption under this section.
The Secretarys duty under the preceding sentence shall not be construed to limit or reduce any responsibility assumed by a State or unit of general local government with respect to any particular release of funds.
(b) Procedure The Secretary shall approve the release of funds subject to the procedures authorized by this section only if, at least 15 days prior to such approval and prior to any commitment of funds to such projects 11 So in original. Probably should be followed by a comma. the jurisdiction or insular area has submitted to the Secretary a request for such release accompanied by a certification which meets the requirements of subsection (c). The Secretarys approval of any such certification shall be deemed to satisfy his responsibilities under the National Environmental Policy Act of 1969 [42 U.S.C. 4321 et seq.] and such other provisions of law as the regulations of the Secretary specify insofar as those responsibilities relate to the releases of funds for projects to be carried out pursuant thereto which are covered by such certification.
(c) Certification A certification under the procedures authorized by this section shall—
(1) be in a form acceptable to the Secretary,
(2) be executed by the chief executive officer or other officer of the recipient of assistance under this subchapter qualified under regulations of the Secretary,
(3) specify that the recipient of assistance under this subchapter has fully carried out its responsibilities as described under subsection (a), and
(4) specify that the certifying officer (A) consents to assume the status of a responsible Federal official under the National Environmental Policy Act of 1969 [42 U.S.C. 4321 et seq.] and each provision of law specified in regulations issued by the Secretary insofar as the provisions of such Act or other such provision of law apply pursuant to subsection (a), and (B) is authorized and consents on behalf of the jurisdiction or insular area and himself to accept the jurisdiction of the Federal courts for the purpose of enforcement of his responsibilities as such an official.
(d) Assistance to units of general local government from a State In the case of assistance to units of general local government from a State, the State shall perform those actions of the Secretary described in subsection (b) and the performance of such actions shall be deemed to satisfy the Secretarys responsibilities referred to in the second sentence of such subsection.
(Pub. L. 101625, title II, § 288, Nov. 28, 1990, 104 Stat. 4127; Pub. L. 103233, title II, § 206, Apr. 11, 1994, 108 Stat. 365; Pub. L. 104330, title V, § 505(a)(2), Oct. 26, 1996, 110 Stat. 4044.)
## Notes
Editorial Notes
References in TextThe National Environmental Policy Act of 1969, referred to in subsecs. (a), (b), and (c)(4), is Pub. L. 91190, Jan. 1, 1970, 83 Stat. 852, which is classified generally to chapter 55 (§ 4321 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 4321 of this title and Tables.
Amendments1996—Subsec. (a). Pub. L. 104330, § 505(a)(2)(A), struck out “, Indian tribes,” after “projects to jurisdictions” in introductory provisions. Subsecs. (b), (c)(4). Pub. L. 104330, § 505(a)(2)(B), (C), struck out “, Indian tribe,” after “the jurisdiction”. 1994—Subsec. (a). Pub. L. 103233, § 206(1), substituted “jurisdictions, Indian tribes, or insular areas” for “participating jurisdictions” and inserted before period at end “The regulations shall provide— “(1) for the monitoring of the environmental reviews performed under this section; “(2) in the discretion of the Secretary, to facilitate training for the performance of such reviews; and “(3) for the suspension or termination of the assumption under this section. The Secretarys duty under the preceding sentence shall not be construed to limit or reduce any responsibility assumed by a State or unit of general local government with respect to any particular release of funds.” Subsec. (b). Pub. L. 103233, § 206(2), substituted “jurisdiction, Indian tribe, or insular area” for “participating jurisdiction”. Subsec. (c)(4)(B). Pub. L. 103233, § 206(3), substituted “jurisdiction, Indian tribe, or insular area” for “participating jurisdiction”. Subsec. (d). Pub. L. 103233, § 206(4), substituted “Assistance to units of general local government from a State” for “Assistance to a State” in heading and “In the case of assistance to units of general local government from a State” for “In the case of assistance to States” in text.
Statutory Notes and Related Subsidiaries
Effective Date of 1996 AmendmentAmendment by Pub. L. 104330 effective Oct. 1, 1997, except as otherwise expressly provided, see section 107 of Pub. L. 104330, set out as an Effective Date note under section 4101 of Title 25, Indians. Amendment by Pub. L. 104330 applicable with respect to amounts made available for assistance under this subchapter for fiscal year 1998 and fiscal years thereafter, see section 505(b) of Pub. L. 104330, set out as a note under section 12747 of this title.
Effective Date of 1994 AmendmentAmendment by Pub. L. 103233 applicable with respect to any amounts made available to carry out this subchapter after Apr. 11, 1994, and any amounts made available to carry out this subchapter before that date that remain uncommitted on that date, with Secretary to issue any regulations necessary to carry out such amendment not later than end of 45-day period beginning on that date, see section 209 of Pub. L. 103233, set out as a note under section 5301 of this title.
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# 42 U.S.C. § 12839 - Termination of existing housing programs
## Text
(a) In general Except with respect to projects and programs for which binding commitments have been entered into prior to October 1, 1991, no new grants or loans shall be made after October 1, 1991, under—
(1) section 17 of the United States Housing Act of 1937 [42 U.S.C. 1437o];
(2) section 312 of the Housing Act of 1964 [42 U.S.C. 1452b];
(3) title VI of the Housing and Community Development Act of 1987;
(4) section 8(e)(2) of the United States Housing Act of 1937 [42 U.S.C. 1437f(e)(2)], except for funds allocated under such section for single room occupancy dwellings as authorized by title IV of the McKinney-Vento Homeless Assistance Act [42 U.S.C. 11360 et seq.]; and
(5) section 810 of the Housing and Community Development Act of 1974 [12 U.S.C. 1706e].
(b) Repeals (1) In general Except as provided in paragraph (2), effective on October 1, 1991, the provisions of law referred to in subsection (a) are repealed.
(2) No effect on SRO program The provision of law referred to in subsection (a)(4) shall remain in effect with respect to single room occupancy dwellings as authorized by title IV of the McKinney-Vento Homeless Assistance Act [42 U.S.C. 11360 et seq.].
(c) Disposition of repayments Any amounts received on or after October 1, 1991, as repayments or recaptures in connection with the programs referred to in subsection (a) and any other amounts for such programs that remain or become unobligated on or after such date, shall be paid into the general fund of the Treasury.
(Pub. L. 101625, title II, § 289, Nov. 28, 1990, 104 Stat. 4128; Pub. L. 106400, § 2, Oct. 30, 2000, 114 Stat. 1675.)
## Notes
Editorial Notes
References in TextTitle VI of the Housing and Community Development Act of 1987 [Pub. L. 100242], referred to in subsec. (a)(3), is set out as a note under section 1715l of Title 12, Banks and Banking. The McKinney-Vento Homeless Assistance Act, referred to in subsecs. (a)(4) and (b)(2), is Pub. L. 10077, July 22, 1987, 101 Stat. 482. Title IV of the Act is classified generally to subchapter IV (§ 11360 et seq.) of chapter 119 of this title. For complete classification of this Act to the Code, see Short Title note set out under section 11301 of this title and Tables.
Amendments2000—Subsecs. (a)(4), (b)(2). Pub. L. 106400 substituted “McKinney-Vento Homeless Assistance Act” for “Stewart B. McKinney Homeless Assistance Act”.
@@ -0,0 +1,45 @@
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# 42 U.S.C. § 12840 - Suspension of requirements for disaster areas
## Text
For funds designated under this subchapter by a recipient to address the damage in an area for which the President has declared a disaster under title IV of the Robert T. Stafford Disaster Relief and Emergency Assistance Act [42 U.S.C. 5170 et seq.], the Secretary may suspend all statutory requirements for purposes of assistance under this subchapter for that area, except for those related to public notice of funding availability, nondiscrimination, fair housing, labor standards, environmental standards, and low-income housing affordability.
(Pub. L. 101625, title II, § 290, as added Pub. L. 103233, title II, § 208, Apr. 11, 1994, 108 Stat. 366.)
## Notes
Editorial Notes
References in TextThe Robert T. Stafford Disaster Relief and Emergency Assistance Act, referred to in text, is Pub. L. 93288, May 22, 1974, 88 Stat. 143. Title IV of the Act is classified generally to subchapter IV (§ 5170 et seq.) of chapter 68 of this title. For complete classification of this Act to the Code, see Short Title note set out under section 5121 of this title and Tables.
Statutory Notes and Related Subsidiaries
Effective DateSection applicable with respect to any amounts made available to carry out this subchapter after Apr. 11, 1994, and any amounts made available to carry out this subchapter before that date that remain uncommitted on that date, with Secretary to issue any regulations necessary to carry out this section not later than end of 45-day period beginning on that date, see section 209 of Pub. L. 103233, set out as an Effective Date of 1994 Amendment note under section 5301 of this title.
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# 42 U.S.C. § 12851 - National Homeownership Trust
## Text
(a) Establishment There is established the National Homeownership Trust, which shall be in the Department of Housing and Urban Development and shall provide assistance to first-time homebuyers in accordance with this subchapter.
(b) Board of Directors The Trust shall be governed by a Board of Directors, which shall be composed of—
(1) the Secretary of Housing and Urban Development, who shall be the chairperson of the Board;
(2) the Secretary of the Treasury;
(3) the chairperson of the Board of Directors of the Federal Deposit Insurance Corporation;
(4) the chairperson of the Federal Housing Finance Board;
(5) the chairperson of the Board of Directors of the Federal National Mortgage Association;
(6) the chairperson of the Board of Directors of the Federal Home Loan Mortgage Corporation; and
(7) 1 individual representing consumer interests, who shall be appointed by the President of the United States, by and with the advice and consent of the Senate.
(c) Powers of Trust The Trust shall have the same powers as the powers given the Government National Mortgage Association in section 1723a(a) of title 12.
(d) Travel and per diem Members of the Board of Directors shall receive no additional compensation by reason of service on the Board, but shall be allowed travel expenses, including per diem in lieu of subsistence, as provided for employees of the Federal Government or in the same manner as persons employed intermittently in the Government service are allowed under section 5703 of title 5, as appropriate.
(e) Director and staff (1) Director The Board of Directors may appoint an executive director of the Trust and fix the compensation of the executive director, which shall be paid from amounts in the National Homeownership Trust Fund.
(2) Staff Subject to such rules as the Board of Directors may prescribe, the Trust may appoint and hire such staff and provide for offices as may be necessary to carry out its duties. The Trust may fix the compensation of the staff, which shall be paid from amounts in the National Homeownership Trust Fund.
(Pub. L. 101625, title III, § 302, Nov. 28, 1990, 104 Stat. 4129.)
## Notes
Statutory Notes and Related Subsidiaries
Short TitleFor short title of this subchapter as the “National Homeownership Trust Act”, see Short Title note set out under section 12701 of this title.
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# 42 U.S.C. § 12852 - Assistance for first-time homebuyers
## Text
(a) In general The Trust shall provide assistance payments for first-time homebuyers (including homebuyers buying shares in limited equity cooperatives) in the following manners:
(1) Interest rate buydowns Assistance payments so that the rate of interest payable on the mortgages by the homebuyers does not exceed 6 percent.
(2) Downpayment assistance Assistance payments to provide amounts for downpayments (including closing costs and other costs payable at the time of closing) on mortgages for such homebuyers.
(3) Assistance in connection with mortgage revenue bonds financing Interest rate buydowns and downpayment assistance in the manner provided in subsection (e).
(4) Second mortgage assistance Assistance payments to provide loans (secured by second mortgages) with deferred payment of interest and principal; and 11 So in original. The “; and” probably should be a period.
(5) Capitalization of revolving loan funds Grants to public organizations or agencies to establish revolving loan funds to provide homeownership assistance to eligible first-time homebuyers consistent with the requirements of this subchapter. Such grants shall be matched by an equal amount of local investment in such revolving loan funds. Any proceeds or repayments from loans made under this paragraph shall be returned to the revolving loan fund established under this paragraph to be used for purposes related to this section.
(b) Eligibility requirements Assistance payments under this subchapter may be made only to homebuyers and for mortgages meeting the following requirements:
(1) First-time homebuyer The homebuyer is an individual who—
(A) (and whose spouse) has had no ownership in a principal residence during the 3-year period ending on the date of purchase of the property with respect to which assistance payments are made under this subchapter;
(B) is a displaced homemaker who, except for owning a home with his or her spouse or residing in a home owned by the spouse, meets the requirements of subparagraph (A);
(C) is a single parent who, except for owning a home with his or her spouse or residing in a home owned by the spouse while married, meets the requirements of subparagraph (A); or
(D) meets the requirements of subparagraph (A), (B), or (C), except for owning, as a principal residence, a dwelling unit whose structure is—
(i) not permanently affixed to a permanent foundation in accordance with local or other applicable regulations; or
(ii) not in compliance with State, local, or model building codes, or other applicable codes, and cannot be brought into compliance with such codes for less than the cost of constructing a permanent structure.
(2) Maximum income of homebuyer The aggregate annual income of the homebuyer and the members of the family of the homebuyer residing with the homebuyer, for the 12-month period preceding the date of the application of the homebuyer for assistance under this subchapter, does not exceed—
(A) 95 percent of the median income for a family of 4 persons (adjusted by family size) in the applicable metropolitan statistical area (or such other area that the Board of Directors determines for areas outside of metropolitan statistical areas); or
(B) 115 percent of such median income (adjusted by family size) in the case of an area that is subject to a high cost area mortgage limit under title II of the National Housing Act [12 U.S.C. 1707 et seq.].
The Board of Directors shall provide for certification of such income for purposes of initial eligibility for assistance payments under this subchapter and shall provide for recertification of homebuyers (and families of homebuyers) so assisted not less than every 2 years thereafter.
(3) Certification The homebuyer (and spouse, where applicable) shall certify that the homebuyer has made a good faith effort to obtain a market rate mortgage and has been denied because the annual income of the homebuyer and the members of the family of the homebuyer residing with the homebuyer is insufficient.
(4) Principal residence The property securing the mortgage is a single-family residence or unit in a cooperative and is the principal residence of the homebuyer.
(5) Maximum mortgage amount The principal obligation of the mortgage does not exceed the principal amount that could be insured with respect to the property under the National Housing Act [12 U.S.C. 1701 et seq.].
(6) Maximum interest rate The interest payable on the mortgage is established at a fixed rate that does not exceed a maximum rate of interest established by the Trust taking into consideration prevailing interest rates on similar mortgages.
(7) Responsible mortgagee The mortgage has been made to, and is held by, a mortgagee that is federally insured or that is otherwise approved by the Trust as responsible and able to service the mortgage properly.
(8) Minimum downpayment For a first-time homebuyer to receive downpayment assistance under subsection (a)(2), the homebuyer shall have paid not less than 1 percent of the cost of acquisition of the property (excluding any mortgage insurance premium paid at the time the mortgage is insured), as such cost is estimated by the Board of Directors.
(c) Terms of assistance (1) Security Assistance payments under this subchapter shall be secured by a lien on the property involved. The lien shall be subordinate to all mortgages existing on the property on the date on which the first assistance payment is made.
(2) Repayment upon sale Assistance payments under this subchapter shall be repayable from the net proceeds of the sale, without interest, upon the sale of the property for which the assistance payments are made. If the sale results in no net proceeds or the net proceeds are insufficient to repay the amount of the assistance payments in full, the Board of Directors shall release the lien to the extent that the debt secured by the lien remains unpaid.
(3) Repayment upon increased income If the aggregate annual income of the homebuyer (and family of the homebuyer) assisted under this subchapter exceeds the applicable maximum income allowable under subsection (b)(2) for any 2-year period after such assistance is provided, the Board of Directors may provide for the repayment, on a monthly basis, of all or a portion of such assistance payments, based on the amount of assistance provided and the income of the homebuyer (and family of the homebuyer).
(4) Repayment if property ceases to be principal residence If the property for which assistance payments are made ceases to be the principal residence of the first-time homebuyer (or the family of the homebuyer), the Board of Directors may provide for the repayment of all or a portion of the assistance payments.
(5) Available assistance The Trust may make assistance payments under paragraphs (1) and (2) of subsection (a) with respect to a single mortgage of an eligible homebuyer.
(d) Allocation formula Amounts available in any fiscal year for assistance under this subchapter shall be allocated for homebuyers in each State on the basis of the need of eligible first-time homebuyers in each State for such assistance in comparison with the need of eligible first-time homebuyers for such assistance among all States.
(e) Assistance in connection with housing financed with mortgage revenue bonds (1) Authority The Trust shall provide assistance for first-time homebuyers in the form of interest rate buydowns and downpayment assistance under this subsection. Such assistance shall be available only with respect to mortgages for the purchase of residences (A) financed with the proceeds of a qualified mortgage bond (as such term is defined in section 143 of title 26), or (B) for which a credit is allowable under section 25 of title 26.
(2) Eligibility To be eligible for assistance under this subsection, homebuyers and mortgages shall also meet the requirements under subsection (b) of this section, except that—
(A) the certification under subsection (b)(3) shall not be required for assistance under this subsection;
(B) the provisions of subsection (b)(2) shall not apply to assistance under this section; and
(C) the aggregate income of the homebuyer and the members of the family of the homebuyer residing with the homebuyer, for the 12-month period preceding the date of the application of the homebuyer for assistance under this subsection, shall not exceed 80 percent of the median income for a family of 4 persons (as adjusted for family size) in the applicable metropolitan statistical area.
(3) Limitation of assistance Notwithstanding subsection (a), assistance payments for first-time homebuyers under this subsection shall be provided in the following manners:
(A) Interest rate buydowns Assistance payments to decrease the rate of interest payable on the mortgages by the homebuyers, in an amount not exceeding—
(i) in the first year of the mortgage, 2.0 percent of the total principal obligation of the mortgage;
(ii) in the second year of the mortgage, 1.5 percent of the total principal obligation of the mortgage;
(iii) in the third year of the mortgage, 1.0 percent of the total principal obligation of the mortgage; and
(iv) in the fourth year of the mortgage, 0.5 percent of the total principal obligation of the mortgage.
(B) Downpayment assistance Assistance payments to provide amounts for downpayments on mortgages by the homebuyers, in an amount not exceeding 2.5 percent of the principal obligation of the mortgage.
(3) 22 So in original. Probably should be “(4)”. Availability The Trust may make assistance payments under subparagraphs (A) and (B) of paragraph (3) with respect to a single mortgage of a homebuyer.
(Pub. L. 101625, title III, § 303, Nov. 28, 1990, 104 Stat. 4130; Pub. L. 102550, title I, § 182(c)(e), Oct. 28, 1992, 106 Stat. 3737, 3738.)
## Notes
Editorial Notes
References in TextThe National Housing Act, referred to in subsec. (b)(2)(B), (5), is act June 27, 1934, ch. 847, 48 Stat. 1246, which is classified principally to chapter 13 (§ 1701 et seq.) of Title 12, Banks and Banking. Title II of the Act is classified principally to subchapter II (§ 1707 et seq.) of chapter 13 of Title 12. For complete classification of this Act to the Code, see section 1701 of Title 12 and Tables.
Amendments1992—Subsec. (a)(3). Pub. L. 102550, § 182(c)(2), added par. (3). Subsec. (a)(4), (5). Pub. L. 102550, § 182(e), added pars. (4) and (5). Subsec. (b)(1)(D). Pub. L. 102550, § 182(d), added subpar. (D). Subsec. (e). Pub. L. 102550, § 182(c)(1), added subsec. (e).
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# 42 U.S.C. § 12853 - National Homeownership Trust Fund
## Text
(a) Establishment There is established in the Treasury of the United States a revolving fund, to be known as the National Homeownership Trust Fund.
(b) Assets The Fund shall consist of—
(1) any amount approved in appropriation Acts under section 12857 of this title for purposes of carrying out this subchapter;
(2) any amount received by the Trust as repayment for payments made under this subchapter; and
(3) any amount received by the Trust under subsection (d).
(c) Use of amounts The Fund shall, to the extent approved in appropriations Acts, be available to the Trust for purposes of carrying out this subchapter.
(d) Investment of excess amounts Any amounts in the Fund determined by the Trust to be in excess of the amounts currently required to carry out the provisions of this subchapter shall be invested by the Trust in obligations of, or obligations guaranteed as to both principal and interest by, the United States or any agency of the United States.
(e) Demonstration programs Using not more than $20,000,000 of any amounts appropriated for the Fund under section 12857 of this title in fiscal year 1991, the Secretary shall carry out demonstration programs for combining housing activities and economic development activities, as follows:
(1) In Milwaukee, Wisconsin, in an amount not to exceed $4,200,000, for development, rehabilitation, and revitalization of 2 vacant structures in a blighted minority neighborhood.
(2) In Washington, District of Columbia, in an amount not to exceed $10,000,000, for nonprofit neighborhood-based groups to acquire and rehabilitate vacant public and private housing for resale or rent to low- and moderate-income families and to the extent of and subject to engage in neighborhood-based economic development activities.
(3) In Philadelphia, Pennsylvania, in an amount not to exceed $1,000,000, for technical assistance and organizational support for a community development corporation that is a city-wide public/private partnership engaged in the provision of technical assistance to neighborhood community development corporations.
(4) In other areas, as the Secretary may determine.
(Pub. L. 101625, title III, § 304, Nov. 28, 1990, 104 Stat. 4132.)
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# 42 U.S.C. § 12854 - Definitions
## Text
For purposes of this subchapter:
(1) Board of Directors The term “Board of Directors” or “Board” means the Board of Directors of the National Homeownership Trust under section 12851(b) of this title.
(2) Displaced homemaker The term “displaced homemaker” means an individual who—
(A) is an adult;
(B) has not worked full-time full-year in the labor force for a number of years, but has during such years, worked primarily without remuneration to care for the home and family; and
(C) is unemployed or underemployed and is experiencing difficulty in obtaining or upgrading employment.
(3) Fund The term “Fund” means the National Homeownership Trust Fund established in section 12853 of this title.
(4) Single parent The term “single parent” means an individual who—
(A) is unmarried or legally separated from a spouse; and
(B) (i) has 1 or more minor children for whom the individual has custody or joint custody; or
(ii) is pregnant.
(5) State The term “State” means the States of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, Guam, the Virgin Islands, American Samoa, the Trust Territory of the Pacific Islands, and any other territory or possession of the United States.
(6) Trust The term “Trust” means the National Homeownership Trust established in section 12851 of this title.
(Pub. L. 101625, title III, § 305, Nov. 28, 1990, 104 Stat. 4132.)
## Notes
Executive Documents
Termination of Trust Territory of the Pacific Islands For termination of Trust Territory of the Pacific Islands, see note set out preceding section 1681 of Title 48, Territories and Insular Possessions.
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# 42 U.S.C. § 12855 - Regulations
## Text
The Board of Directors shall issue any regulations necessary to carry out this subchapter.
(Pub. L. 101625, title III, § 306, Nov. 28, 1990, 104 Stat. 4133.)
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# 42 U.S.C. § 12856 - Report
## Text
The Board of Directors shall submit to the Congress, not later than the expiration of the 90-day period beginning on the date of the termination of the Trust under section 12859 of this title, a report containing a description of the activities of the Trust and an analysis of the effectiveness of the Trust in assisting first-time homebuyers.
(Pub. L. 101625, title III, § 307, Nov. 28, 1990, 104 Stat. 4133.)
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# 42 U.S.C. § 12857 - Authorization of appropriations
## Text
There are authorized to be appropriated for assistance payments under this subchapter $520,665,600 for fiscal year 1993 and $542,533,555 for fiscal year 1994, of which such sums as may be necessary shall be available in each such fiscal year for use under section 12852(e) of this title. Any amount appropriated under this section shall be deposited in the Fund and shall remain available until expended, subject to the provisions of section 12858 11 See References in Text note below. of this title.
(Pub. L. 101625, title III, § 308, Nov. 28, 1990, 104 Stat. 4133; Pub. L. 102550, title I, § 182(b), Oct. 28, 1992, 106 Stat. 3736.)
## Notes
Editorial Notes
References in TextSection 12858 of this title, referred to in text, was in the original “section 311”, and was translated as reading “section 309”, meaning section 309 of Pub. L. 101625, to reflect the probable intent of Congress, because Pub. L. 101625 does not contain a section 311.
Amendments1992—Pub. L. 102550 amended section generally. Prior to amendment, section read as follows: “There are authorized to be appropriated to carry out this subchapter $250,000,000 for fiscal year 1991 and $521,500,000 for fiscal year 1992. Any amount appropriated under this section shall be deposited in the Fund and remain available until expended, subject to the provisions of section 12858 of this title.”
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# 42 U.S.C. § 12858 - Transition
## Text
(a) Authority of Secretary Upon the termination of the Trust as provided in section 12859 of this title, the Secretary of Housing and Urban Development shall exercise any authority of the Board of Directors and the Trust in accordance with the provisions of this subchapter as may be necessary to provide for the conclusion of the outstanding affairs of the Trust.
(b) Applicability of Trust provisions Any assistance under this subchapter shall, after termination of the Trust, be subject to the provisions of this subchapter that would have applied to such assistance if the termination had not occurred.
(c) Certification of Fund to Treasury Upon a determination by the Secretary of Housing and Urban Development that the National Homeownership Trust Fund is no longer necessary, the Secretary shall certify any amounts remaining in the Fund to the Secretary of the Treasury and the Secretary of the Treasury shall deposit into the general fund of the Treasury as miscellaneous receipts any amounts remaining in the Fund.
(Pub. L. 101625, title III, § 309, Nov. 28, 1990, 104 Stat. 4133.)
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# 42 U.S.C. § 12859 - Termination
## Text
The Trust shall terminate September 30, 1994.
(Pub. L. 101625, title III, § 310, Nov. 28, 1990, 104 Stat. 4133; Pub. L. 102550, title I, § 182(a), Oct. 28, 1992, 106 Stat. 3736.)
## Notes
Editorial Notes
Amendments1992—Pub. L. 102550 substituted “September 30, 1994” for “on September 30, 1993”.
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# 42 U.S.C. § 12870 - Authorization of appropriations
## Text
(a) Fiscal year 1993 There are authorized to be appropriated for grants under this title 11 See References in Text note below. $855,000,000 for fiscal year 1993, of which—
(1) $285,000,000 shall be available for activities authorized under title III of the United States Housing Act of 1937 [42 U.S.C. 1437aaa et seq.], of which up to $4,500,000 of any amounts appropriated may be made available for technical assistance to potential applicants, applicants and recipients of assistance under this 22 So in original. Probably should be “such”. title;
(2) $285,000,000 shall be available for activities authorized under part A, of which up to $3,250,000 of any amounts appropriated may be made available for technical assistance to potential applicants, applicants and recipients of assistance under this 2 part; and
(3) $285,000,000 shall be available for activities under part B, of which up to $2,250,000 of any amounts appropriated may be made available for technical assistance to potential applicants, applicants and recipients of assistance under this 2 part.
Any amount appropriated pursuant to this subsection shall remain available until expended.
(b) Fiscal year 1994 There are authorized to be appropriated for grants under this title 1 $883,641,000 for fiscal year 1994, of which—
(1) $294,547,000 shall be available for activities authorized under title III of the United States Housing Act of 1937 [42 U.S.C. 1437aaa et seq.], up to $4,500,000 of which may be made available for technical assistance to potential applicants, applicants and recipients of assistance under this 2 title;
(2) $294,547,000 shall be available for activities authorized under part A, up to $3,250,000 of which may be made available for technical assistance to potential applicants, applicants and recipients of assistance under this 2 part; and
(3) $294,547,000 shall be available for activities under part B, up to $2,250,000 of which may be made available for technical assistance to potential applicants, applicants and recipients of assistance under this 2 part.
Any amount appropriated pursuant to this subsection shall remain available until expended.
(c) Technical assistance Technical assistance made available under title III of the United States Housing Act of 1937 [42 U.S.C. 1437aaa et seq.] or part A or part B of this subchapter may include, but shall not be limited to, training, clearinghouse services, the collection, processing and dissemination of program information useful for local and national program management, and provision of seed money. Such technical assistance may be made available directly, or indirectly under contracts and grants, as appropriate. In any fiscal year, no single applicant, potential applicant, or recipient under title III of the United States Housing Act of 1937, or part A or part B of this subchapter may receive technical assistance in an amount exceeding 20 percent of the total amount made available for technical assistance under such title or part for the fiscal year.
(Pub. L. 101625, title IV, § 402, as added Pub. L. 102550, title I, § 181(a)(1), Oct. 28, 1992, 106 Stat. 3734; amended Pub. L. 109281, § 2(d)(3), Sept. 22, 2006, 120 Stat. 1181.)
## Notes
Editorial Notes
References in TextThis title, referred to in introductory provisions of subsecs. (a) and (b), is title IV of Pub. L. 101625, Nov. 28, 1990, 104 Stat. 4148, known as the Homeownership and Opportunity Through HOPE Act, which enacted this subchapter and subchapter IIA (§ 1437aaa et seq.) of chapter 8 of this title, amended sections 1437c, 1437f, 1437l, 1437p, 1437r, and 1437s of this title and section 1709 of Title 12, Banks and Banking, and enacted provisions set out as notes under sections 1437c, 1437aa, and 1437aaa of this title. For complete classification of title IV to the Code, see Short Title note set out under section 1437aaa of this title and Tables. The United States Housing Act of 1937, referred to in subsecs. (a)(1), (b)(1), and (c), is act Sept. 1, 1937, ch. 896, as revised generally by Pub. L. 93383, title II, § 201(a), Aug. 22, 1974, 88 Stat. 653. Title III of the Act is classified generally to subchapter IIA (§ 1437aaa et seq.) of chapter 8 of this title. For complete classification of this Act to the Code, see Short Title note set out under section 1437 of this title and Tables.
Amendments2006—Subsec. (a). Pub. L. 109281 struck out the second sentence, which read as follows: “Of the amounts appropriated pursuant to this subsection, up to $40,000,000, but not less than 5 percent, shall be available for activities authorized under part C of this subchapter.” Subsec. (b). Pub. L. 109281 struck out the second sentence, which read as follows: “Of the amounts appropriated pursuant to this subsection, up to $41,680,000, but not less than 5 percent, shall be available for activities authorized under part C of this subchapter.”
Statutory Notes and Related Subsidiaries
GAO Audit of Technical Assistance ContractsPub. L. 102550, title I, § 181(a)(3), Oct. 28, 1992, 106 Stat. 3735, provided that: “The Comptroller General of the United States shall conduct an audit of all of the technical assistance contracts awarded for fiscal years 1993 and 1994 pursuant to section 402 of the Cranston-Gonzalez National Affordable Housing Act [42 U.S.C. 12870]. The Comptroller General shall submit a report to the Congress describing the results of such audit not later than September 30, 1994.”
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# 42 U.S.C. § 12871 - Program authority
## Text
(a) In general The Secretary is authorized to make—
(1) planning grants to enable applicants to develop homeownership programs; and
(2) implementation grants to enable applicants to carry out homeownership programs.
(b) Authority to reserve housing assistance In connection with a grant under this part, the Secretary may reserve authority to provide assistance under section 1437f of this title to the extent necessary to provide rental assistance for a nonpurchasing tenant who resides in the project on the date the Secretary approves the application for an implementation grant, for use by the tenant in another project.
(Pub. L. 101625, title IV, § 421, Nov. 28, 1990, 104 Stat. 4162; Pub. L. 102550, title I, § 181(a)(2)(B)(i), Oct. 28, 1992, 106 Stat. 3735.)
## Notes
Editorial Notes
References in TextThis part, referred to in subsec. (b), was in the original “this subtitle”, meaning subtitle B (§§ 421431) of title IV of Pub. L. 101625, Nov. 28, 1990, 104 Stat. 4162, which enacted this part and amended section 1709 of Title 12, Banks and Banking.
Amendments1992—Subsec. (c). Pub. L. 102550 struck out subsec. (c) which read as follows: “Authorization of Appropriations.—There is authorized to be appropriated for grants under this part $51,000,000 for fiscal year 1991 and $280,000,000 for fiscal year 1992. Any amounts appropriated pursuant to this subsection shall remain available until expended.”
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# 42 U.S.C. § 12872 - Planning grants
## Text
(a) Grants The Secretary is authorized to make planning grants to applicants for the purpose of developing homeownership programs under this part. The amount of a planning grant under this section may not exceed $200,000, except that the Secretary may for good cause approve a grant in a higher amount.
(b) Eligible activities Planning grants may be used for activities to develop homeownership programs (which may include programs for cooperative ownership), including—
(1) development of resident management corporations and resident councils;
(2) training and technical assistance of applicants related to the development of a specific homeownership program;
(3) studies of the feasibility of a homeownership program;
(4) inspection for lead-based paint hazards, as required by section 4822(a) of this title;
(5) preliminary architectural and engineering work;
(6) tenant and homebuyer counseling and training;
(7) planning for economic development, job training, and self-sufficiency activities that promote economic self-sufficiency for homebuyers and homeowners under the homeownership program;
(8) development of security plans; and
(9) preparation of an application for an implementation grant under this part.
(c) Application (1) Form and procedures An application for a planning grant shall be submitted by an applicant in such form and in accordance with such procedures as the Secretary shall establish.
(2) Minimum requirements The Secretary shall require that an application contain at a minimum—
(A) a request for a planning grant, specifying the activities proposed to be carried out, the schedule for completing the activities, the personnel necessary to complete the activities, and the amount of the grant requested;
(B) a description of the applicant and a statement of its qualifications;
(C) identification and description of the eligible property involved, and a description of the composition of the tenants, including family size and income;
(D) a certification by the public official responsible for submitting the comprehensive housing affordability strategy under section 12705 of this title that the proposed activities are consistent with the approved housing strategy of the State or unit of general local government within which the project is located (or, during the first 12 months after November 28, 1990, that the application is consistent with such other existing State or local housing plan or strategy that the Secretary shall determine to be appropriate); and
(E) a certification that the applicant will comply with the requirements of the Fair Housing Act [42 U.S.C. 3601 et seq.], title VI of the Civil Rights Act of 1964 [42 U.S.C. 2000d et seq.], section 504 of the Rehabilitation Act of 1973 [29 U.S.C. 794], and the Age Discrimination Act of 1975 [42 U.S.C. 6101 et seq.], and will affirmatively further fair housing.
(d) Selection criteria The Secretary shall, by regulation, establish selection criteria for a national competition for assistance under this section, which shall include—
(1) the qualifications or potential capabilities of the applicant;
(2) the extent of tenant interest in the development of a homeownership program for the property;
(3) the potential of the applicant for developing a successful and affordable homeownership program and the suitability of the property for homeownership;
(4) national geographic diversity among housing for which applicants are selected to receive assistance; and
(5) such other factors that the Secretary shall require that (in the determination of the Secretary) are appropriate for purposes of carrying out the program established by this part in an effective and efficient manner.
(Pub. L. 101625, title IV, § 422, Nov. 28, 1990, 104 Stat. 4162; Pub. L. 102550, title X, § 1012(i)(1), Oct. 28, 1992, 106 Stat. 3906.)
## Notes
Editorial Notes
References in TextThe Fair Housing Act, referred to in subsec. (c)(2)(E), is title VIII of Pub. L. 90284, Apr. 11, 1968, 82 Stat. 81, which is classified principally to subchapter I (§ 3601 et seq.) of chapter 45 of this title. For complete classification of this Act to the Code, see Short Title note set out under section 3601 of this title and Tables. The Civil Rights Act of 1964, referred to in subsec. (c)(2)(E), is Pub. L. 88352, July 2, 1964, 78 Stat. 241. Title VI of the Act is classified generally to subchapter V (§ 2000d et seq.) of chapter 21 of this title. For complete classification of this Act to the Code, see Short Title note set out under section 2000a of this title and Tables. The Age Discrimination Act of 1975, referred to in subsec. (c)(2)(E), is title III of Pub. L. 94135, Nov. 28, 1975, 89 Stat. 728, which is classified generally to chapter 76 (§ 6101 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 6101 of this title and Tables.
Amendments1992—Subsec. (b)(4) to (9). Pub. L. 102550 added par. (4) and redesignated former pars. (4) to (8) as (5) to (9), respectively.
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# 42 U.S.C. § 12873 - Implementation grants
## Text
(a) Grants The Secretary is authorized to make implementation grants to applicants for the purpose of carrying out homeownership programs approved under this part.
(b) Eligible activities Implementation grants may be used for activities to carry out homeownership programs (including programs for cooperative ownership), including the following activities:
(1) Architectural and engineering work.
(2) Acquisition of the eligible property for the purpose of transferring ownership to eligible families in accordance with a homeownership program that meets the requirements under this part.
(3) Rehabilitation of any property covered by the homeownership program, in accordance with standards established by the Secretary.
(4) Abatement of lead-based paint hazards, as required by section 4822(a) of this title.
(5) Administrative costs of the applicant, which may not exceed 15 percent of the amount of the assistance provided under this section.
(6) Development of resident management corporations and resident management councils, but only if the applicant has not received assistance under section 12872 11 See References in Text note below. of this title for such activities.
(7) Counseling and training of homebuyers and homeowners under the homeownership program.
(8) Relocation of tenants who elect to move.
(9) Any necessary temporary relocation of tenants during rehabilitation.
(10) Planning for establishment of for- or not-for-profit small businesses by or on behalf of residents, job training, and other activities that promote economic self-sufficiency of homebuyers and homeowners of the property covered by the homeownership program and economic development of the neighborhood.
(11) Funding of operating expenses and replacement reserves of the property covered by the homeownership program.
(12) Legal fees.
(13) Defraying costs for the ongoing training needs of the recipient that are related to developing and carrying out the homeownership program.
(14) Economic development activities that promote economic self-sufficiency of homebuyers, residents, and homeowners under the homeownership program.
(c) Matching funding (1) In general Each recipient shall assure that contributions equal to not less than 33 percent of the grant amounts made available under this section, excluding any amounts provided for post-sale operating expense, shall be provided from non-Federal sources to carry out the homeownership program.
(2) Form Such contributions may be in the form of—
(A) cash contributions from non-Federal resources, which may not include funds from a grant made under section 5306(b) or section 5306(d) of this title;
(B) payment of administrative expenses, as defined by the Secretary, from non-Federal resources, including funds from a grant made under section 5306(b) or section 5306(d) of this title;
(C) the value of taxes, fees, or other charges that are normally and customarily imposed but are waived, foregone, or deferred in a manner that facilitates the implementation of a homeownership program assisted under this part;
(D) the value of land or other real property as appraised according to procedures acceptable to the Secretary;
(E) the value of investment in on-site and off-site infrastructure required for a homeownership program assisted under this part; or
(F) such other in-kind contributions as the Secretary may approve.
Contributions for administrative expenses shall be recognized only up to an amount equal to 7 percent of the total amount of grants made available under this section.
(d) 22 So in original. Two subsecs. (d) have been enacted. Application (1) Form and procedure An application for an implementation grant shall be submitted by an applicant in such form and in accordance with such procedures as the Secretary shall establish.
(2) Minimum requirements The Secretary shall require that an application contain at a minimum—
(A) a request for an implementation grant, specifying the amount of the grant requested and its proposed uses;
(B) if applicable, an application for assistance under section 1437f of this title, specifying the proposed uses of such assistance and the period during which the assistance will be needed;
(C) a description of the qualifications and experience of the applicant in providing low-income housing;
(D) a description of the proposed homeownership program, consistent with section 12874 1 of this title and the other requirements of this part, specifying the activities proposed to be carried out and their estimated costs, identifying reasonable schedules for carrying it out, and demonstrating the program will comply with the affordability requirements under section 12874(b) 1 of this title;
(E) identification and description of the property involved, and a description of the composition of the tenants, including family size and income;
(F) a description of and commitment for the resources that are expected to be made available to provide the matching funding required under subsection (c) and of other resources that are expected to be made available in support of the homeownership program;
(G) identification and description of the financing proposed for any (i) rehabilitation and (ii) acquisition (I) of the property, by an entity for transfer to eligible families, and (II) by eligible families of ownership interests in, or shares representing, units in the project;
(H) the proposed sales price, the basis for such price determination, and terms to an entity, if any, that will purchase the property for resale to eligible families;
(I) the proposed sales prices, if any, and terms to eligible families;
(J) any proposed restrictions on the resale of units under a homeownership program;
(K) identification and description of the entity that will operate and manage the property;
(L) a certification by the public official responsible for submitting the comprehensive housing affordability strategy under section 12705 of this title that the proposed activities are consistent with the approved housing strategy of the State or unit of general local government within which the project is located (or, during the first 12 months after November 28, 1990, that the application is consistent with such other existing State or local housing plan or strategy that the Secretary shall determine to be appropriate); and
(M) a certification that the applicant will comply with the requirements of the Fair Housing Act [42 U.S.C. 3601 et seq.], title VI of the Civil Rights Act of 1964 [42 U.S.C. 2000d et seq.], section 504 of the Rehabilitation Act of 1973 [29 U.S.C. 794], and the Age Discrimination Act of 1975 [42 U.S.C. 6101 et seq.], and will affirmatively further fair housing.
(d) 2 Selection criteria The Secretary shall establish selection criteria for assistance under this section, which shall include—
(1) the qualifications or potential capabilities of the applicant;
(2) the feasibility of the homeownership program;
(3) the extent of tenant interest in the development of a homeownership program for the property;
(4) the potential for developing an affordable homeownership program and the suitability of the property for homeownership;
(5) national geographic diversity among housing for which applicants are selected to receive assistance;
(6) the extent to which a sufficient supply of affordable rental housing of the type assisted under this title 1 exists in the locality, so that the implementation of the homeownership program will not appreciably reduce the number of such rental units available to residents currently residing in such units or eligible for residency in such units; and
(7) such other factors as the Secretary determines to be appropriate for purposes of carrying out the program established by the 33 So in original. Probably should be “this”. part in an effective and efficient manner.
(e) Approval The Secretary shall notify each applicant, not later than 6 months after the date of the submission of the application, whether the application is approved or not approved. The Secretary may approve the application for an implementation grant with a statement that the application for the section 8 [42 U.S.C. 1437f] assistance for residents of the project not purchasing units is conditionally approved, subject to the availability of appropriations in subsequent fiscal years.
(Pub. L. 101625, title IV, § 423, Nov. 28, 1990, 104 Stat. 4163; Pub. L. 102550, title X, § 1012(i)(2), Oct. 28, 1992, 106 Stat. 3906.)
## Notes
Editorial Notes
References in TextSection 12872 of this title, referred to in subsec. (b)(6), was in the original “section 322” and was translated as reading “section 422”, meaning section 422 of Pub. L. 101625, to reflect the probable intent of Congress. Section 322 of Pub. L. 101625 amended section 1708 of Title 12, Banks and Banking. Section 12874 of this title and section 12874(b) of this title, referred to in subsec. (d)(2)(D), were in the original “section 324” and “section 324(b)”, respectively, and were translated as reading “section 424” and “section 424(b)”, respectively, meaning section 424 of Pub. L. 101625, to reflect the probable intent of Congress. Section 324 of Pub. L. 101625, which proposed an amendment to section 1709 of Title 12, never took effect pursuant to section 351 of Pub. L. 101625. Such section 324 did not contain a subsec. (b). The Fair Housing Act, referred to in subsec. (d)(2)(M), is title VIII of Pub. L. 90284, Apr. 11, 1968, 82 Stat. 81, which is classified principally to subchapter I (§ 3601 et seq.) of chapter 45 of this title. For complete classification of this Act to the Code, see Short Title note set out under section 3601 of this title and Tables. The Civil Rights Act of 1964, referred to in subsec. (d)(2)(M), is Pub. L. 88352, July 2, 1964, 78 Stat. 241. Title VI of the Act is classified generally to subchapter V (§ 2000d et seq.) of chapter 21 of this title. For complete classification of this Act to the Code, see Short Title note set out under section 2000a of this title and Tables. The Age Discrimination Act of 1975, referred to in subsec. (d)(2)(M), is title III of Pub. L. 94135, Nov. 28, 1975, 89 Stat. 728, which is classified generally to chapter 76 (§ 6101 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 6101 of this title and Tables. This title, referred to in subsec. (d)(6), means title IV of Pub. L. 101625, known as the Homeownership and Opportunity Through HOPE Act, and probably should have been “this subtitle”, meaning subtitle B (§§ 421431) of title IV of Pub. L. 101625, which is classified principally to this part. For complete classification of title IV of Pub. L. 101625 to the Code, see Short Title note set out under section 1437aaa of this title and Tables.
Amendments1992—Subsec. (b)(4) to (14). Pub. L. 102550 added par. (4) and redesignated former pars. (4) to (13) as (5) to (14), respectively.
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# 42 U.S.C. § 12874 - Homeownership program requirements
## Text
(a) In general A homeownership program under this part shall provide for acquisition by eligible families of ownership interest in, or shares representing, the units in an eligible property under any arrangement determined by the Secretary to be appropriate, such as cooperative ownership (including limited equity cooperative ownership) and fee simple ownership (including condominium ownership), for occupancy by the eligible families.
(b) Affordability A homeownership program under this part shall provide for the establishment of sales prices (including principal, insurance, taxes, and interest and closing costs) for initial acquisition of the property, and for sales to eligible families, such that the eligible family shall not be required to expend more than 30 percent of the adjusted income of the family per month to complete a sale under the homeownership program.
(c) Plan A homeownership program under this part shall provide, and include a plan, for—
(1) identifying and selecting eligible families to participate in the homeownership program;
(2) providing relocation assistance to families who elect to move;
(3) ensuring continued affordability by tenants, homebuyers, and homeowners in the property; and
(4) providing ongoing training and counseling for homebuyers and homeowners.
(d) Acquisition and rehabilitation limitation Acquisition or rehabilitation of a property under a homeownership program under this part may not consist of acquisition or rehabilitation of less than all of the units in the property. The provisions of this subsection may be waived upon a finding by the Secretary that the sale of less than all the buildings in a project is feasible and will not result in a hardship to any tenants of the project who are not included in the homeownership program.
(e) Financing (1) In general The application shall identify and describe the proposed financing for (A) any rehabilitation, and (B) acquisition (i) of the project, where applicable, by an entity for transfer to eligible families, and (ii) by eligible families of ownership interests in, or shares representing, units in the project. Financing may include use of the implementation grant, sale for cash, or other sources of financing (subject to applicable requirements), including conventional mortgage loans and mortgage loans insured under title II of the National Housing Act [12 U.S.C. 1707 et seq.].
(2) Prohibition against pledges Property transferred under this part shall not be pledged as collateral for debt or otherwise encumbered except when the Secretary determines that—
(A) such encumbrance will not threaten the long-term availability of the property for occupancy by low-income families;
(B) neither the Federal Government nor the public housing agency will be exposed to undue risks related to action that may have to be taken pursuant to paragraph (3);
(C) any debt obligation can be serviced from project income, including operating assistance; and
(D) the proceeds of such encumbrance will be used only to meet housing standards in accordance with subsection (f) or to make such additional capital improvements as the Secretary determines to be consistent with the purposes of this part.
(3) Opportunity to cure Any lender that provides financing in connection with a homeownership program under this part shall give the public housing agency, resident management corporation, individual owner, or other appropriate entity a reasonable opportunity to cure a financial default before foreclosing on the property, or taking other action as a result of the default.
(f) Housing quality standards The application shall include a plan ensuring that the unit—
(1) will be free from any defects that pose a danger to health or safety before transfer of an ownership interest in, or shares representing, a unit to an eligible family; and
(2) will, not later than 2 years after the transfer to an eligible family, meet minimum housing standards established by the Secretary for the purpose of this title.11 See References in Text note below.
(g) Protection of nonpurchasing families (1) In general No tenant residing in a dwelling unit in a property on the date the Secretary approves an application for an implementation grant may be evicted by reason of a homeownership program approved under this part.
(2) Rental assistance If a tenant decides not to purchase a unit, or is not qualified to do so, the Secretary shall, subject to the availability of appropriations, ensure that rental assistance under section 1437f of this title is available for use by each otherwise qualified tenant in that or another property.
(3) Relocation assistance The recipient shall also inform each such tenant that if the tenant chooses to move, the recipient will pay relocation assistance in accordance with the approved homeownership program.
(Pub. L. 101625, title IV, § 424, Nov. 28, 1990, 104 Stat. 4166.)
## Notes
Editorial Notes
References in TextThe National Housing Act, referred to in subsec. (e)(1), is act June 27, 1934, ch. 847, 48 Stat. 1246. Title II of the Act is classified principally to subchapter II (§ 1707 et seq.) of chapter 13 of Title 12, Banks and Banking. For complete classification of this Act to the Code, see section 1701 of Title 12 and Tables. This title, referred to in subsec. (f)(2), is title IV of Pub. L. 101625, Nov. 28, 1990, 104 Stat. 4148, known as the Homeownership and Opportunity Through HOPE Act, which enacted this subchapter and subchapter IIA (§ 1437aaa et seq.) of chapter 8 of this title, amended sections 1437c, 1437f, 1437l, 1437p, 1437r, and 1437s of this title and section 1709 of Title 12, and enacted provisions set out as notes under sections 1437c, 1437aa, and 1437aaa of this title. For complete classification of title IV to the Code, see Short Title note set out under section 1437aaa of this title and Tables. Section 1437f of this title, referred to in subsec. (g)(2), was in the original “section 8”, and was translated as reading “section 8 of the United States Housing Act of 1937” to reflect the probable intent of Congress.
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# 42 U.S.C. § 12875 - Other program requirements
## Text
(a) Preferences In selecting eligible families for homeownership, the recipient shall give a first preference to otherwise qualified current tenants and a second preference to otherwise qualified eligible families who have completed participation in an economic self-sufficiency program specified by the Secretary.
(b) Cost limitations The Secretary may establish cost limitations on eligible activities under this part, subject to the provisions of this part.
(c) Use of proceeds from sales to eligible families The entity that transfers ownership interests in, or shares representing, units to eligible families, or another entity specified in the approved application, shall use the proceeds, if any, from the initial sale for costs of the homeownership program, including operating expenses, improvements to the project, business opportunities for low-income families, supportive services related to the homeownership program, additional homeownership opportunities, and other activities approved by the Secretary.
(d) Restrictions on resale by homeowners (1) In general (A) Transfer permitted A homeowner under a homeownership program may transfer the homeowners ownership interest in, or shares representing, the unit, except that a homeownership program may establish restrictions on the resale of units under the program.
(B) Right to purchase Where a resident management corporation, resident council, or cooperative has jurisdiction over the unit, the corporation, council, or cooperative shall have the right to purchase the ownership interest in, or shares representing, the unit from the homeowner for the amount specified in a firm contract between the homeowner and a prospective buyer. If such an entity does not have jurisdiction over the unit or elects not to purchase and if the prospective buyer is not a low-income family, the public housing agency or the implementation grant recipient shall have the right to purchase the ownership interest in, or shares representing, the unit for the same amount.
(C) Promissory note required The homeowner shall execute a promissory note equal to the difference between the market value and the purchase price, payable to the public housing agency or other entity designated in the homeownership plan, together with a mortgage securing the obligation of the note.
(2) 6 years or less In the case of a transfer within 6 years of the acquisition under the program, the homeownership program shall provide for appropriate restrictions to assure that an eligible family may not receive any undue profit. The plan shall provide for limiting the familys consideration for its interest in the property to the total of—
(A) the contribution to equity paid by the family;
(B) the value, as determined by such means as the Secretary shall determine through regulation, of any improvements installed at the expense of the family during the familys tenure as owner; and
(C) the appreciated value determined by an inflation allowance at a rate which may be based on a cost-of-living index, an income index, or market index as determined by the Secretary through regulation and agreed to by the purchaser and the entity that transfers ownership interests in, or shares representing, units to eligible families (or another entity specified in the approved application), at the time of initial sale, and applied against the contribution to equity.
Such an entity may, at the time of initial sale, enter into an agreement with the family to set a maximum amount which this appreciation may not exceed.
(3) 620 years In the case of a transfer during the period beginning 6 years after the acquisition and ending 20 years after the acquisition, the homeownership program shall provide for the recapture by the Secretary or the program of an amount equal to the amount of the declining balance on the note described in paragraph (1)(C).
(4) Use of recaptured funds Fifty percent of any portion of the net sales proceeds that may not be retained by the homeowner under the plan approved pursuant to this subsection shall be paid to the entity that transferred ownership interests in, or shares representing, units to eligible families, or another entity specified in the approved application, for use for improvements to the project, business opportunities for low-income families, supportive services related to the homeownership program, additional homeownership opportunities, and other activities approved by the Secretary. The remaining 50 percent shall be returned to the Secretary for use under this part, subject to limitations contained in appropriations Acts. Such entity shall keep and make available to the Secretary all records necessary to calculate accurately payments due the Secretary under this subsection.
(e) Third party rights The requirements under this part regarding quality standards, resale, or transfer of the ownership interest of a homeowner shall be judicially enforceable against the grant recipient with respect to actions involving rehabilitation, and against purchasers of property under this subsection or their successors in interest with respect to other actions by affected low-income families, resident management corporations, resident councils, public housing agencies, and any agency, corporation, or authority of the United States Government. The parties specified in the preceding sentence shall be entitled to reasonable attorney fees upon prevailing in any such judicial action.
(f) Dollar limitation on economic development activities Not more than an aggregate of $250,000 from amounts made available under sections 12872 and 12873 of this title may be used for economic development activities under sections 12872(b)(6) and 12873(b)(9) 11 See References in Text note below. of this title for any project.
(g) Timely homeownership Recipients shall transfer ownership of the property to tenants within a specified period of time that the Secretary determines to be reasonable. During the interim period when the property continues to be operated and managed as rental housing, the recipient shall utilize written tenant selection policies and criteria that are approved by the Secretary as consistent with the purpose of improving housing opportunities for low-income families. The recipient shall promptly notify in writing any rejected applicant of the grounds for any rejection.
(h) Records and audit of recipients of assistance (1) In general Each recipient shall keep such records as may be reasonably necessary to fully disclose the amount and the disposition by such recipient of the proceeds of assistance received under this part (and any proceeds from financing obtained or sales under subsections (c) and (d)), the total cost of the homeownership program in connection with which such assistance is given or used, and the amount and nature of that portion of the program supplied by other sources, and such other sources as will facilitate an effective audit.
(2) Access by Secretary The Secretary shall have access for the purpose of audit and examination to any books, documents, papers, and records of the recipient that are pertinent to assistance received under this part.
(3) Access by Comptroller General The Comptroller General of the United States, or any of the duly authorized representatives of the Comptroller General, shall also have access for the purpose of audit and examination to any books, documents, papers, and records of the recipient that are pertinent to assistance received under this part.
(i) Certain entities not eligible Any entity that assumes, as determined by the Secretary, a mortgage covering eligible property in connection with the acquisition of the property from an owner under this section must comply with any low-income affordability restrictions for the remaining term of the mortgage. This requirement shall only apply to an entity, such as a cooperative association, that, as determined by the Secretary, intends to own the housing on a permanent basis.
(Pub. L. 101625, title IV, § 425, Nov. 28, 1990, 104 Stat. 4168.)
## Notes
Editorial Notes
References in TextSections 12872(b)(6) and 12873(b)(9) of this title, referred to in subsec. (f), were redesignated sections 12872(b)(7) and 12873(b)(10) of this title, respectively, by Pub. L. 102550, title X, § 1012(i), Oct. 28, 1992, 106 Stat. 3906.
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# 42 U.S.C. § 12876 - Definitions
## Text
For purposes of this part:
(1) The term “applicant” means the following entities that may represent the tenants of the housing:
(A) A resident management corporation established in accordance with the requirements of the Secretary under section 1437r of this title.
(B) A resident council.
(C) A cooperative association.
(D) A public or private nonprofit organization.
(E) A public body (including an agency or instrumentality thereof).
(F) A public housing agency (including an Indian housing authority).
(G) A mutual housing association.
(2) The term “eligible family” means a family or individual—
(A) who is a tenant of the eligible property on the date the Secretary approves an implementation grant; or
(B) whose income does not exceed 80 percent of the median income for the area, as determined by the Secretary with adjustments for smaller and larger families.
(3) The term “eligible property” means a multifamily rental property, containing 5 or more units, that is—
(A) owned or held by the Secretary;
(B) financed by a loan or mortgage held by the Secretary or insured by the Secretary;
(C) determined by the Secretary to have serious physical or financial problems under the terms of an insurance or loan program administered by the Secretary; or
(D) owned or held by the Secretary of Agriculture, the Resolution Trust Corporation, the Federal Deposit Insurance Corporation, the Secretary of Defense, the Secretary of Transportation, the General Services Administration, any other Federal agency, or a State or local government or an agency or instrumentality thereof.
(4) The term “homeownership program” means a program for homeownership under this part.
(5) The term “Indian housing authority” has the meaning given such term in section 1437a(b)(11) 11 See References in Text note below. of this title.
(6) The term “low-income family” has the meaning given such term in section 1437a(b)(2) of this title.
(7) The term “public housing agency” has the meaning given such term in section 1437a(b)(6) of this title.
(8) The term “recipient” means an applicant approved to receive a grant under this title 1 or such other entity specified in the approved application that will assume the obligations of the recipient under this part.
(9) The term “resident council” means any incorporated nonprofit organization or association that—
(A) is representative of the tenants of the housing;
(B) adopts written procedures providing for the election of officers on a regular basis; and
(C) has a democratically elected governing board, elected by the tenants of the housing.
(10) The term “Secretary” means the Secretary of Housing and Urban Development.
(Pub. L. 101625, title IV, § 426, Nov. 28, 1990, 104 Stat. 4170; Pub. L. 102550, title I, § 181(d), (e), (h), Oct. 28, 1992, 106 Stat. 3735, 3736.)
## Notes
Editorial Notes
References in TextSection 1437a(b)(11) of this title, referred to in par. (5), was repealed by Pub. L. 104330, title V, § 501(b)(1)(D), Oct. 26, 1996, 110 Stat. 4041, and a new section 1437a(b)(11), defining “public housing agency plan”, was enacted by Pub. L. 105276, title V, § 506(4), Oct. 21, 1998, 112 Stat. 2524. This title, referred to in par. (8), means title IV of Pub. L. 101625, known as the Homeownership and Opportunity Through HOPE Act, and probably should have been “this subtitle”, meaning subtitle B (§§ 421431) of title IV of Pub. L. 101625, which is classified principally to this part. For complete classification of title IV of Pub. L. 101625 to the Code, see Short Title note set out under section 1437aaa of this title and Tables.
Amendments1992—Par. (1)(G). Pub. L. 102550, § 181(d), added subpar. (G). Par. (3)(D). Pub. L. 102550, § 181(e), (h), inserted “the Federal Deposit Insurance Corporation, the Secretary of Defense, the Secretary of Transportation, the General Services Administration, any other Federal agency,” after “Corporation,” and “or an agency or instrumentality thereof” before period at end.
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# 42 U.S.C. § 12877 - Exemption
## Text
Eligible property covered by a homeownership program approved under this part shall not be subject to—
(1) the Low-Income Housing Preservation and Resident Homeownership Act of 1990 [12 U.S.C. 4101 et seq.], or
(2) the requirements of section 1701z11 of title 12 applicable to the sale of projects either at foreclosure or after acquisition by the Secretary.
(Pub. L. 101625, title IV, § 427, Nov. 28, 1990, 104 Stat. 4171.)
## Notes
Editorial Notes
References in TextThe Low-Income Housing Preservation and Resident Homeownership Act of 1990, referred to in par. (1), is title II of Pub. L. 100242, as amended by Pub. L. 101625, title VI, § 601(a), Nov. 28, 1990, 104 Stat. 4249, which is classified principally to chapter 42 (§ 4101 et seq.) of Title 12, Banks and Banking. For complete classification of this Act to the Code, see Short Title note set out under section 4101 of Title 12 and Tables.
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# 42 U.S.C. § 12878 - Limitation on selection criteria
## Text
In establishing criteria for selecting applicants to receive assistance under this part, the Secretary may not establish any selection criterion or criteria that grant or deny such assistance to an applicant (or have the effect of granting or denying assistance) based on the implementation, continuation, or discontinuation of any public policy, regulation, or law of any jurisdiction in which the applicant or project is located.
(Pub. L. 101625, title IV, § 428, Nov. 28, 1990, 104 Stat. 4171.)
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# 42 U.S.C. § 12879 - Implementation
## Text
Not later than the expiration of the 180-day period beginning on the date that funds authorized under this part first become available for obligation, the Secretary shall by notice establish such requirements as may be necessary to carry out the provisions of this part. Such requirements shall be subject to section 553 of title 5. The Secretary shall issue regulations based on the initial notice before the expiration of the 8-month period beginning on the date of the notice.
(Pub. L. 101625, title IV, § 430, Nov. 28, 1990, 104 Stat. 4172.)
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# 42 U.S.C. § 12880 - Report
## Text
The Secretary shall no later than December 31, 1995, submit to the Congress a report setting forth—
(1) the number, type and cost of eligible properties transferred pursuant to this part;
(2) the income, race, gender, children and other characteristics of families participating (or not participating) in homeownership programs funded under this part;
(3) the amount and type of financial assistance provided under and in conjunction with this part;
(4) the amount of financial assistance provided under this part that was needed to ensure continued affordability and meet future maintenance and repair costs; and
(5) the recommendations of the Secretary for statutory and regulatory improvements to the program.
(Pub. L. 101625, title IV, § 431, Nov. 28, 1990, 104 Stat. 4172; Pub. L. 10466, title I, § 1072(a), Dec. 21, 1995, 109 Stat. 721.)
## Notes
Editorial Notes
Amendments1995—Pub. L. 10466 in section catchline substituted “Report” for “Annual report”, and in introductory provisions substituted “The Secretary shall no later than December 31, 1995,” for “The Secretary shall annually”.
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# 42 U.S.C. § 12891 - Program authority
## Text
The Secretary is authorized to make—
(1) planning grants to help applicants develop homeownership programs in accordance with this part; and
(2) implementation grants to enable applicants to carry out homeownership programs in accordance with this part.
(Pub. L. 101625, title IV, § 441, Nov. 28, 1990, 104 Stat. 4172; Pub. L. 102550, title I, § 181(a)(2)(B)(ii), Oct. 28, 1992, 106 Stat. 3735.)
## Notes
Editorial Notes
Amendments1992—Pub. L. 102550 struck out “(a) In General” before “The Secretary is authorized” and subsec. (b) which read as follows: “Authorization of Appropriations.—There are authorized to be appropriated for grants under this part $36,000,000 for fiscal year 1991, and $195,000,000 for fiscal year 1992. Any amounts appropriated pursuant to this subsection shall remain available until expended.”
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# 42 U.S.C. § 12892 - Planning grants
## Text
(a) Grants The Secretary is authorized to make planning grants to applicants for the purpose of developing homeownership programs under this part. The amount of a planning grant under this section may not exceed $200,000, except that the Secretary may for good cause approve a grant in a higher amount.
(b) Eligible activities Planning grants may be used for activities to develop homeownership programs (which may include programs for cooperative ownership), including—
(1) identifying eligible properties;
(2) training and technical assistance of applicants related to the development of a specific homeownership program;
(3) studies of the feasibility of specific homeownership programs;
(4) inspection for lead-based paint hazards, as required by section 4822(a) of this title;
(5) preliminary architectural and engineering work;
(6) homebuyer counseling and training;
(7) planning for economic development, job training, and self-sufficiency activities that promote economic self-sufficiency for homebuyers and homeowners under the homeownership program;
(8) development of security plans; and
(9) preparation of an application for an implementation grant under this part.
(c) Application (1) Form and procedures An application for a planning grant shall be submitted by an applicant in such form and in accordance with such procedures as the Secretary shall establish.
(2) Minimum requirements The Secretary shall require that an application contain at a minimum—
(A) a request for a planning grant, specifying the activities proposed to be carried out, the schedule for completing the activities, the personnel necessary to complete the activities, and the amount of the grant requested;
(B) a description of the applicant and a statement of its qualifications;
(C) identification and description of the eligible properties likely to be involved, and a description of the composition of the potential homebuyers and residents of the areas in which such eligible properties are located, including family size and income;
(D) a certification by the public official responsible for submitting the comprehensive housing affordability strategy under section 12705 of this title that the proposed activities are consistent with the approved housing strategy of the State or unit of general local government within which the project is located (or, during the first 12 months after November 28, 1990, that the application is consistent with such other existing State or local housing plan or strategy that the Secretary shall determine to be appropriate); and
(E) a certification that the applicant will comply with the requirements of the Fair Housing Act [42 U.S.C. 3601 et seq.], title VI of the Civil Rights Act of 1964 [42 U.S.C. 2000d et seq.], section 504 of the Rehabilitation Act of 1973 [29 U.S.C. 794], and the Age Discrimination Act of 1975 [42 U.S.C. 6101 et seq.], and will affirmatively further fair housing.
(d) Selection criteria The Secretary shall, by regulation, establish selection criteria for a national competition for assistance under this section, which shall include—
(1) the qualifications or potential capabilities of the applicant;
(2) the extent of interest in the development of a homeownership program;
(3) the potential of the applicant for developing a successful and affordable homeownership program and the availability and suitability of eligible properties in the applicable geographic area with respect to the application;
(4) national geographic diversity among housing for which applicants are selected to receive assistance; and
(5) such other factors that the Secretary shall require that (in the determination of the Secretary) are appropriate for purposes of carrying out the program established by this part in an effective and efficient manner.
(Pub. L. 101625, title IV, § 442, Nov. 28, 1990, 104 Stat. 4172; Pub. L. 102550, title X, § 1012(j)(1), Oct. 28, 1992, 106 Stat. 3906.)
## Notes
Editorial Notes
References in TextThe Fair Housing Act, referred to in subsec. (c)(2)(E), is title VIII of Pub. L. 90284, Apr. 11, 1968, 82 Stat. 81, which is classified principally to subchapter I (§ 3601 et seq.) of chapter 45 of this title. For complete classification of this Act to the Code, see Short Title note set out under section 3601 of this title and Tables. The Civil Rights Act of 1964, referred to in subsec. (c)(2)(E), is Pub. L. 88352, July 2, 1964, 78 Stat. 241. Title VI of the Act is classified generally to subchapter V (§ 2000d et seq.) of chapter 21 of this title. For complete classification of this Act to the Code, see Short Title note set out under section 2000a of this title and Tables. The Age Discrimination Act of 1975, referred to in subsec. (c)(2)(E), is title III of Pub. L. 94135, Nov. 28, 1975, 89 Stat. 728, which is classified generally to chapter 76 (§ 6101 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 6101 of this title and Tables.
Amendments1992—Subsec. (b)(4) to (9). Pub. L. 102550 added par. (4) and redesignated former pars. (4) to (8) as (5) to (9), respectively.
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# 42 U.S.C. § 12893 - Implementation grants
## Text
(a) Grants The Secretary is authorized to make implementation grants to applicants for the purpose of carrying out homeownership programs approved under this part.
(b) Eligible activities Implementation grants may be used for activities to carry out homeownership programs (which may include programs for cooperative ownership), including the following activities:
(1) Architectural and engineering work.
(2) Acquisition of the property for the purpose of transferring ownership to eligible families in accordance with a homeownership program meeting the requirements of this part.
(3) Rehabilitation of the property covered by the homeownership program, in accordance with standards established by the Secretary.
(4) Abatement of lead-based paint hazards, as required by section 4822(a) of this title.
(5) Administrative costs of the applicant, which may not exceed 15 percent of the amount of assistance provided under this section.
(6) Counseling and training of homebuyers and homeowners under the homeownership program.
(7) Relocation of eligible families who elect to move.
(8) Any necessary temporary relocation of homebuyers during rehabilitation.
(9) Legal fees.
(10) Defraying costs for the ongoing training needs of the recipient that are related to developing and carrying out the homeownership program.
(11) Economic development activities that promote economic self-sufficiency of homebuyers and homeowners under the homeownership program.
(c) Matching funding (1) In general Each recipient shall assure that contributions equal to not less than 25 percent of the grant amounts under this section are provided from non-Federal sources to carry out the homeownership program.
(2) Form Such contributions may be in the form of—
(A) cash contributions from non-Federal resources which may not include funds from a grant made under section 5306(b) or section 5306(d) of this title;
(B) payment of administrative expenses, as defined by the Secretary, from non-Federal resources, including funds from a grant made under section 5306(b) or section 5306(d) of this title;
(C) the value of taxes, fees, or other charges that are normally and customarily imposed but are waived, foregone, or deferred in a manner that facilitates the implementation of a homeownership program assisted under this part;
(D) the value of investment in on-site and off-site infrastructure required for a homeownership program assisted under this part; or
(E) such other in-kind contributions as the Secretary may approve.
Contributions for administrative expenses shall be recognized only up to an amount equal to 7 percent of the total amount of grants made available under this section.
(d) Application (1) Form and procedure An application for an implementation grant shall be submitted by an applicant in such form and in accordance with such procedures as the Secretary shall establish.
(2) Minimum requirements The Secretary shall require that an application contain at a minimum—
(A) a request for an implementation grant, specifying the amount of the grant requested and its proposed uses;
(B) a description of the qualifications and experience of the applicant in providing low-income housing;
(C) a description of the proposed homeownership program, consistent with section 12894 of this title and the other requirements of this part specifying the activities proposed to be carried out and their estimated costs, identifying reasonable schedules for carrying it out, and demonstrating that the program will comply with the affordability requirements under section 12894(b) of this title;
(D) an identification and description of the properties to be acquired under the homeownership program and a description of the composition of potential eligible families, including family size and income;
(E) a description of and commitment for the resources that are expected to be made available to provide the matching funding required under subsection (c) and of other resources that are expected to be made available in support of the homeownership program;
(F) identification and description of the financing proposed for any (i) rehabilitation and (ii) acquisition (I) of the project, where applicable, by an entity for transfer to eligible families, and (II) by eligible families of ownership interests in, or shares representing, units in the project;
(G) the proposed sales prices for the properties, the basis for such price determinations, and terms to an entity, if any, that will purchase that property for resale to eligible families;
(H) the proposed sales prices, if any, and terms to eligible families;
(I) identification and description of the entity that will operate and manage the property;
(J) a certification by the public official responsible for submitting the comprehensive housing affordability strategy under section 12705 of this title that the proposed activities are consistent with the approved housing strategy of the State or unit of general local government within which the project is located (or, during the first 12 months after November 28, 1990, that the application is consistent with such other existing State or local housing plan or strategy that the Secretary shall determine to be appropriate); and
(K) a certification that the applicant will comply with the requirements of the Fair Housing Act [42 U.S.C. 3601 et seq.], title VI of the Civil Rights Act of 1964 [42 U.S.C. 2000d et seq.], section 504 of the Rehabilitation Act of 1973 [29 U.S.C. 794], and the Age Discrimination Act of 1975 [42 U.S.C. 6101 et seq.], and will affirmatively further fair housing.
(e) Selection criteria The Secretary shall establish selection criteria for assistance under this part, which shall include—
(1) the ability of the applicant to develop and carry out the proposed homeownership program, taking into account the qualifications and experience of the applicant and the quality of any related ongoing program of the applicant;
(2) the feasibility of the homeownership program;
(3) the quality and viability of the proposed homeownership program;
(4) the extent to which suitable eligible property is available for use under the program in the area to be served, and the extent to which the types of property expected to be covered by the proposed homeownership program are federally owned;
(5) whether the approved comprehensive housing affordability strategy for the jurisdiction within which the eligible property is located includes the proposed homeownership program as one of the general priorities identified pursuant to section 12705(b)(7) of this title;
(6) national geographic diversity among housing for which applicants are selected to receive assistance; and
(7) the extent to which a sufficient supply of affordable rental housing of the type assisted under this part exists in the locality, so that the implementation of the homeownership program will not appreciably reduce the number of such rental units available to residents currently residing in such units or eligible for residency in such units.
(f) Approval The Secretary shall notify each applicant, not later than 6 months after the date of the submission of the application, whether the application is approved or not approved.
(Pub. L. 101625, title IV, § 443, Nov. 28, 1990, 104 Stat. 4174; Pub. L. 102550, title X, § 1012(j)(2), Oct. 28, 1992, 106 Stat. 3906; Pub. L. 103233, title II, § 221, Apr. 11, 1994, 108 Stat. 366.)
## Notes
Editorial Notes
References in TextThe Fair Housing Act, referred to in subsec. (d)(2)(K), is title VIII of Pub. L. 90284, Apr. 11, 1968, 82 Stat. 81, which is classified principally to subchapter I (§ 3601 et seq.) of chapter 45 of this title. For complete classification of this Act to the Code, see Short Title note set out under section 3601 of this title and Tables. The Civil Rights Act of 1964, referred to in subsec. (d)(2)(K), is Pub. L. 88352, July 2, 1964, 78 Stat. 241. Title VI of the Act is classified generally to subchapter V (§ 2000d et seq.) of chapter 21 of this title. For complete classification of this Act to the Code, see Short Title note set out under section 2000a of this title and Tables. The Age Discrimination Act of 1975, referred to in subsec. (d)(2)(K), is title III of Pub. L. 94135, Nov. 28, 1975, 89 Stat. 728, which is classified generally to chapter 76 (§ 6101 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 6101 of this title and Tables.
Amendments1994—Subsec. (c)(1). Pub. L. 103233 substituted “25 percent” for “33 percent”. 1992—Subsec. (b)(4) to (11). Pub. L. 102550 added par. (4) and redesignated former pars. (4) to (10) as (5) to (11), respectively.
Statutory Notes and Related Subsidiaries
Effective Date of 1994 AmendmentAmendment by Pub. L. 103233 applicable with respect to any amounts made available to carry out subchapter II (§ 12721 et seq.) of this chapter after Apr. 11, 1994, and any amounts made available to carry out that subchapter before that date that remain uncommitted on that date, with Secretary to issue any regulations necessary to carry out such amendment not later than end of 45-day period beginning on that date, see section 209 of Pub. L. 103233, set out as a note under section 5301 of this title.
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# 42 U.S.C. § 12894 - Homeownership program requirements
## Text
(a) In general A homeownership program under this part shall provide for acquisition by eligible families of ownership interests in, or shares representing, units in an eligible property under any arrangement determined by the Secretary to be appropriate, such as cooperative ownership (including limited equity cooperative ownership) and fee simple ownership (including condominium ownership), for occupancy by the eligible families.
(b) Affordability A homeownership program under this part shall provide for the establishment of sales prices (including principal, insurance, taxes, and interest and closing costs) for initial acquisition of the property, and for sales to eligible families, such that the eligible family shall not be required to expend more than 30 percent of the adjusted income of the family per month to complete a sale under the homeownership program.
(c) Eligible property A property may not participate in a homeownership program under this part unless all tenants or occupants of the property (at the time of 11 So in original. The word “of” probably should not appear. the application for the implementation grant covering the property is filed with the Secretary) participate in the homeownership program.
(d) Plan A homeownership program under this part shall provide, and include a plan, for—
(1) identifying and selecting eligible families to participate in the homeownership program;
(2) providing relocation assistance to families who elect to move; and
(3) ensuring continued affordability of the property to homebuyers and homeowners.
(e) Housing quality standards The application shall include a plan ensuring that the unit—
(1) will be free from any defects that pose a danger to health or safety before transfer of an ownership interest in, or shares representing, a unit to an eligible family; and
(2) will, not later than 2 years after the transfer to an eligible family, meet minimum housing standards established by the Secretary for the purpose of this title.22 So in original. See References in Text note below.
(f) Preference for acquisition of vacant units Each homeownership program under this part shall provide that, in making vacant units in eligible properties available for acquisition by eligible families, preference shall be given to eligible families who reside in public or Indian housing.
(Pub. L. 101625, title IV, § 444, Nov. 28, 1990, 104 Stat. 4176; Pub. L. 102550, title I, § 181(f), Oct. 28, 1992, 106 Stat. 3736.)
## Notes
Editorial Notes
References in TextThis title, referred to in subsec. (e)(2), is title IV of Pub. L. 101625, Nov. 28, 1990, 104 Stat. 4148, known as the Homeownership and Opportunity Through HOPE Act, which enacted this subchapter and subchapter IIA (§ 1437aaa et seq.) of chapter 8 of this title, amended sections 1437c, 1437f, 1437l, 1437p, 1437r, and 1437s of this title and section 1709 of Title 12, Banks and Banking, and enacted provisions set out as notes under sections 1437c, 1437aa, and 1437aaa of this title. For complete classification of title IV to the Code, see Short Title note set out under section 1437aaa of this title and Tables.
Amendments1992—Subsec. (f). Pub. L. 102550 added subsec. (f).
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# 42 U.S.C. § 12895 - Other program requirements
## Text
(a) Cost limitations The Secretary may establish cost limitations on eligible activities under this part, subject to the provisions of this part.
(b) Use of proceeds from sales to eligible families Any entity that transfers ownership interests in, or shares representing, units to eligible families, or another entity specified in the approved application, may use the proceeds, if any, from the initial sale for costs of the homeownership program, including operating expenses, improvements to the project, business opportunities for low-income families, supportive services related to the homeownership program, additional homeownership opportunities, and other activities approved by the Secretary.
(c) Restrictions on resale by homeowners (1) In general (A) Transfer permitted A homeowner under a homeownership program may transfer the homeowners ownership interest in, or shares representing, the unit, except that a homeownership program may establish restrictions on the resale of units under the program.
(B) Right to purchase Where a resident management corporation, resident council, or cooperative has jurisdiction over the unit, the corporation, council, or cooperative shall have the right to purchase the ownership interest in, or shares representing, the unit from the homeowner for the amount specified in a firm contract between the homeowner and a prospective buyer. If such an entity does not have jurisdiction over the unit or elects not to purchase and if the prospective buyer is not a low-income family, the public housing agency or the implementation grant recipient shall have the right to purchase the ownership interest in, or shares representing, the unit for the same amount.
(C) Promissory note required The homeowner shall execute a promissory note equal to the difference between the market value and the purchase price, payable to the public housing agency or other entity designated in the homeownership plan, together with a mortgage securing the obligation of the note.
(2) 6 years or less In the case of a transfer within 6 years of the acquisition under the program, the homeownership program shall provide for appropriate restrictions to assure that an eligible family may not receive any undue profit. The plan shall provide for limiting the familys consideration for its interest in the property to the total of—
(A) the contribution to equity paid by the family;
(B) the value, as determined by such means as the Secretary shall determine through regulation, of any improvements installed at the expense of the family during the familys tenure as owner; and
(C) the appreciated value determined by an inflation allowance at a rate which may be based on a cost-of-living index, an income index, or market index as determined by the Secretary through regulation and agreed to by the purchaser and the entity that transfers ownership interests in, or shares representing, units to eligible families (or another entity specified in the approved application), at the time of initial sale, and applied against the contribution to equity.
Such an entity may, at the time of initial sale, enter into an agreement with the family to set a maximum amount which this appreciation may not exceed.
(3) 620 years In the case of a transfer during the period beginning 6 years after the acquisition and ending 20 years after the acquisition, the homeownership program shall provide for the recapture by the Secretary or the program of an amount equal to the amount of the declining balance on the note described in paragraph (1)(C).
(4) Use of recaptured funds Fifty percent of any portion of the net sales proceeds that may not be retained by the homeowner under the plan approved pursuant to this subsection shall be paid to the entity that transferred ownership interests in, or shares representing, units to eligible families, or another entity specified in the approved application, for use for improvements to the project, business opportunities for low-income families, supportive services related to the homeownership program, additional homeownership opportunities, and other activities approved by the Secretary. The remaining 50 percent shall be returned to the Secretary for use under this part, subject to limitations contained in appropriations Acts. Such entity shall keep and make available to the Secretary all records necessary to calculate accurately payments due the Secretary under this subsection.
(d) Third party rights The requirements under this part regarding quality standards, resale, or transfer of the ownership interest of a homeowner shall be judicially enforceable against the grant recipient with respect to actions involving rehabilitation, and against purchasers of property under this subsection or their successors in interest with respect to other actions by affected low-income families, resident management corporations, resident councils, public housing agencies, and any agency, corporation, or authority of the United States Government. The parties specified in the preceding sentence shall be entitled to reasonable attorney fees upon prevailing in any such judicial action.
(e) Protection of nonpurchasing families No tenant residing in a dwelling unit in a property on the date the Secretary approves an application for an implementation grant may be evicted by reason of a homeownership program approved under this part.
(h) 11 So in original. Probably should be “(f)”. Records and audit of recipients of assistance (1) In general Each recipient shall keep such records as may be reasonably necessary to fully disclose the amount and the disposition by such recipient of the proceeds of assistance received under this part (and any proceeds from financing obtained or sales under subsections (b) and (c)), the total cost of the homeownership program in connection with which such assistance is given or used, and the amount and nature of that portion of the program supplied by other sources, and such other sources as will facilitate an effective audit.
(2) Access by Secretary The Secretary shall have access for the purpose of audit and examination to any books, documents, papers, and records of the recipient that are pertinent to assistance received under this part.
(3) Access by Comptroller General The Comptroller General of the United States, or any of the duly authorized representatives of the Comptroller General, shall also have access for the purpose of audit and examination to any books, documents, papers, and records of the recipient that are pertinent to assistance received under this part.
(Pub. L. 101625, title IV, § 445, Nov. 28, 1990, 104 Stat. 4177.)
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# 42 U.S.C. § 12896 - Definitions
## Text
For purposes of this part:
(1) The term “applicant” means a private nonprofit organization, cooperative association, or a public agency (including an agency or instrumentality thereof) in cooperation with a private nonprofit organization.
(2) The term “displaced homemaker” has the same meaning as in section 12704 of this title.
(3) The term “eligible family” means a family or individual who—
(A) has an income that does not exceed 80 percent of the median income for the area, as determined by the Secretary with adjustments for smaller and larger families; and
(B) is a first-time homebuyer.
(4) The term “eligible property” means a single family property, containing no more than four units, that is owned or held by the Secretary, the Secretary of Veterans Affairs, the Secretary of Agriculture, the Resolution Trust Corporation, the Federal Deposit Insurance Corporation, the Secretary of Defense, the Secretary of Transportation, the General Services Administration, any other Federal agency, a State or local government (including any in rem property), or a public housing agency or an Indian housing authority (excluding public or Indian housing under the United States Housing Act of 1937 [42 U.S.C. 1437 et seq.] and including properties held by institutions within the jurisdiction of the Resolution Trust Corporation).
(5) The term “first-time homebuyer” has the same meaning as in section 12704 of this title.
(6) The term “homeownership program” means a program for homeownership under this part.
(7) The term “Indian housing authority” has the meaning given such term in section 3(b)(11) 11 See References in Text note below. of the United States Housing Act of 1937.
(8) The term “low-income family” has the meaning given such term in section 3(b)(2) of the United States Housing Act of 1937 [42 U.S.C. 1437a(b)(2)].
(9) The term “public housing agency” has the meaning given such term in section 3(b)(6) of the United States Housing Act of 1937 [42 U.S.C. 1437a(b)(6)].
(10) The term “recipient” means an applicant approved to receive a grant under this part or such other entity specified in the approved application that will assume the obligations of the recipient under this part.
(11) The term “Secretary” means the Secretary of Housing and Urban Development.
(12) The term “single parent” means an individual who—
(A) is unmarried or legally separated from a spouse; and
(B) (i) has 1 or more minor children for whom the individual has custody or joint custody; or
(ii) is pregnant.
(Pub. L. 101625, title IV, § 446, Nov. 28, 1990, 104 Stat. 4179; Pub. L. 102550, title I, § 181(g)(2), (h), Oct. 28, 1992, 106 Stat. 3736.)
## Notes
Editorial Notes
References in TextThe United States Housing Act of 1937, referred to in par. (4), is act Sept. 1, 1937, ch. 896, as revised generally by Pub. L. 93383, title II, § 201(a), Aug. 22, 1974, 88 Stat. 653, which is classified generally to chapter 8 (§ 1437 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 1437 of this title and Tables. Section 3(b)(11) of the United States Housing Act of 1937, referred to in par. (7), was classified to section 1437a(b)(11) of this title prior to repeal by Pub. L. 104330, title V, § 501(b)(1)(D), Oct. 26, 1996, 110 Stat. 4041, and a new section 1437a(b)(11), defining “public housing agency plan”, was enacted by Pub. L. 105276, title V, § 506(4), Oct. 21, 1998, 112 Stat. 2524.
Amendments1992—Par. (4). Pub. L. 102550 inserted “the Federal Deposit Insurance Corporation, the Secretary of Defense, the Secretary of Transportation, the General Services Administration, any other Federal agency,” after “Corporation,” and substituted “(excluding public or Indian housing under the United States Housing Act of 1937 and including” for “(including scattered site single family properties, and”.
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# 42 U.S.C. § 12897 - Limitation on selection criteria
## Text
In establishing criteria for selecting applicants to receive assistance under this part, the Secretary may not establish any selection criterion or criteria that grant or deny such assistance to an applicant (or have the effect of granting or denying assistance) based on the implementation, continuation, or discontinuation of any public policy, regulation, or law of any jurisdiction in which the applicant or project is located.
(Pub. L. 101625, title IV, § 447, Nov. 28, 1990, 104 Stat. 4180.)
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# 42 U.S.C. § 12898 - Implementation
## Text
Not later than the expiration of the 180-day period beginning on the date funds authorized under this part first become available for obligation, the Secretary shall by notice establish such requirements as may be necessary to carry out the provisions of this part. Such requirements shall be subject to section 553 of title 5. The Secretary shall issue regulations based on the initial notice before the expiration of the 8-month period beginning on the date of the notice.
(Pub. L. 101625, title IV, § 448, Nov. 28, 1990, 104 Stat. 4180.)
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# 42 U.S.C. § 12898a - Enterprise zone homeownership opportunity grants
## Text
(a) Statement of purpose It is the purpose of this section—
(1) to encourage homeownership by families in the United States who are not otherwise able to afford homeownership;
(2) to encourage the redevelopment of economically depressed areas; and
(3) to provide better housing opportunities in federally approved and equivalent State-approved enterprise zones.
(b) Definitions For purposes of this section the following definitions shall apply:
(1) Home The term “home” means any 1- to 4-family dwelling. Such term includes any dwelling unit in a condominium project or cooperative project consisting of not more than 4 dwelling units, any town house, and any manufactured home.
(2) Metropolitan statistical area The term “metropolitan statistical area” means a metropolitan statistical area as established by the Office of Management and Budget.
(3) Nonprofit organization The term “nonprofit organization” means a private nonprofit corporation, or other private nonprofit legal entity, that is approved by the Secretary as to financial responsibility.
(4) Secretary The term “Secretary” means the Secretary of Housing and Urban Development.
(5) State The term “State” means each of the several States, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, the Northern Mariana Islands, the Trust Territory of the Pacific Islands, and any other territory or possession of the United States.
(6) Unit of general local government The term “unit of general local government” means any borough, city, county, parish, town, township, village, or other general purpose political subdivision of a State.
(c) Assistance to nonprofit organizations (1) In general The Secretary may provide assistance to nonprofit organizations to carry out enterprise zone homeownership opportunity programs to promote homeownership in federally approved and equivalent State-approved enterprise zones in accordance with the provisions of this section. Such assistance shall be made in the form of grants.
(2) Applications Applications for assistance under this section shall be made in such form, and in accordance with such procedures, as the Secretary may prescribe.
(d) Eligible uses of assistance (1) In general Any nonprofit organization receiving assistance under this section shall use such assistance to provide loans to families purchasing homes constructed or rehabilitated in accordance with an enterprise zone homeownership opportunity program approved under this section.
(2) Specific requirements Each loan made to a family under this subsection shall—
(A) be secured by a second mortgage held by the Secretary on the property involved;
(B) be in an amount not exceeding $15,000;
(C) bear no interest; and
(D) be repayable to the Secretary upon the sales, lease, or other transfer of such property.
(e) Program requirements (1) In general Assistance provided under this section may be used only in connection with an enterprise zone homeownership opportunity program of construction or rehabilitation of homes.
(2) Family need Each family purchasing a home under this section shall—
(A) have a family income on the date of such purchase that is not more than the median income for a family of 4 persons (adjusted for family size) in the metropolitan statistical area in which a federally approved or equivalent State-approved enterprise zone is located; and
(B) not have owned a home during the 3-year period preceding such purchase.
(3) Downpayment Each family purchasing a home under this section shall make a downpayment of not less than 5 percent of the sale price of such home.
(4) Leasing prohibition No family purchasing a home under this section may lease such home.
(f) Terms and conditions of assistance (1) Local consultation No proposed enterprise zone homeownership opportunity program may be approved by the Secretary under this section unless the applicant involved demonstrates to the satisfaction of the Secretary that—
(A) it has consulted with and received the support of residents of the neighborhood in which such program is to be located; and
(B) it has the approval of each unit of general local government in which such program is to be located.
(2) Program schedule Each applicant for assistance under this section shall submit to the Secretary an estimated schedule for completion of its proposed enterprise zone homeownership opportunity program, which schedule shall have been agreed to by each unit of general local government in which such program is to be located.
(3) Location All homes constructed or rehabilitated under such program will be located in federally approved or equivalent State-approved enterprise zones.
(4) Sales contracts Sales contracts entered into under such program will contain provisions requiring repayment of any loan made under this section upon the sale or other transfer of the home involved, unless the Secretary approves a transfer of such home without repayment (in which case the second mortgage held by the Secretary on such home shall remain in force until such loan is fully repaid).
(g) Program selection criteria (1) In general In selecting enterprise zone homeownership opportunity programs for assistance under this section from among eligible programs, the Secretary shall make such selection on the basis of the extent to which—
(A) non-Federal public or private entities will contribute land necessary to make each program feasible;
(B) non-Federal public and private financial or other contributions (including tax abatements, waivers of fees related to development, waivers of construction, development, or zoning requirements, and direct financial contributions) will reduce the cost of home 11 So in original. Probably should be “homes”. constructed or rehabilitated under each program;
(C) each program will produce the greatest number of units for the least amount of assistance provided under this section, taking into consideration the cost differences among different market areas; and
(D) each program provides for the involvement of local residents in the planning, and construction or rehabilitation, of homes.
(2) Exception To the extent that non-Federal public entities are prohibited by the law of any State from making any form of contribution described in subparagraph (A) or (B) of paragraph (1), the Secretary shall not consider such form of contribution in evaluating such program.
(h) Regulations Not later than 180 days after October 28, 1992, the Secretary shall issue final regulations to carry out the provisions of this title.22 So in original. Probably should be “this section.” Any such regulations shall be issued in accordance with section 553 of title 5, notwithstanding the provisions of subsection (a)(2) of such section.
(i) Funding There are authorized to be appropriated to carry out this section $30,000,000 in each of fiscal years 1993 and 1994.
(Pub. L. 102550, title I, § 186, Oct. 28, 1992, 106 Stat. 3748.)
## Notes
Editorial Notes
Codification Section was enacted as part of the Housing and Community Development Act of 1992, and not as part of subtitle C (§§ 441448) of title IV of Pub. L. 101625 which comprises this part.
Executive Documents
Termination of Trust Territory of the Pacific Islands For termination of Trust Territory of the Pacific Islands, see note set out preceding section 1681 of Title 48, Territories and Insular Possessions.
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# 42 U.S.C. § 12899 to 12899i - Repealed. Pub. L. 109281, § 2(e), Sept. 22, 2006, 120 Stat. 1181
## Notes
Section 12899, Pub. L. 101625, title IV, § 451, as added Pub. L. 102550, title I, § 164, Oct. 28, 1992, 106 Stat. 3723, set forth the statement of purpose of this part.
Section 12899a, Pub. L. 101625, title IV, § 452, as added Pub. L. 102550, title I, § 164, Oct. 28, 1992, 106 Stat. 3723, authorized the Secretary to make planning and implementation grants.
Section 12899b, Pub. L. 101625, title IV, § 453, as added Pub. L. 102550, title I, § 164, Oct. 28, 1992, 106 Stat. 3723, related to planning grants.
Section 12899c, Pub. L. 101625, title IV, § 454, as added Pub. L. 102550, title I, § 164, Oct. 28, 1992, 106 Stat. 3725; amended Pub. L. 105277, div. A, § 101(f) [title VIII, § 405(d)(43)(A), (f)(34)], Oct. 21, 1998, 112 Stat. 2681337, 2681428, 2681434, related to implementation grants.
Section 12899d, Pub. L. 101625, title IV, § 455, as added Pub. L. 102550, title I, § 164, Oct. 28, 1992, 106 Stat. 3728; amended Pub. L. 105276, title V, § 514(a)(2)(B), Oct. 21, 1998, 112 Stat. 2547; Pub. L. 106400, § 2, Oct. 30, 2000, 114 Stat. 1675, set forth Youthbuild program requirements.
Section 12899e, Pub. L. 101625, title IV, § 456, as added Pub. L. 102550, title I, § 164, Oct. 28, 1992, 106 Stat. 3730; amended Pub. L. 105277, div. A, § 101(f) [title VIII, § 405(d)(43)(B)], Oct. 21, 1998, 112 Stat. 2681337, 2681428, set forth additional program requirements.
Section 12899f, Pub. L. 101625, title IV, § 457, as added Pub. L. 102550, title I, § 164, Oct. 28, 1992, 106 Stat. 3731; amended Pub. L. 103382, title III, § 394(d), Oct. 20, 1994, 108 Stat. 4027; Pub. L. 105244, title I, § 102(a)(13)(M), Oct. 7, 1998, 112 Stat. 1621; Pub. L. 106400, § 2, Oct. 30, 2000, 114 Stat. 1675; Pub. L. 109136, § 5, Dec. 22, 2005, 119 Stat. 2644, defined terms.
Section 12899g, Pub. L. 101625, title IV, § 458, as added Pub. L. 102550, title I, § 164, Oct. 28, 1992, 106 Stat. 3733, related to management and technical assistance.
Section 12899h, Pub. L. 101625, title IV, § 459, as added Pub. L. 102550, title I, § 164, Oct. 28, 1992, 106 Stat. 3733, related to contracts.
Section 12899h1, Pub. L. 101625, title IV, § 460, as added Pub. L. 104330, title V, § 504(a)(2), Oct. 26, 1996, 110 Stat. 4044; amended Pub. L. 105276, title V, § 595(e)(15), Oct. 21, 1998, 112 Stat. 2659; Pub. L. 109136, § 6, Dec. 22, 2005, 119 Stat. 2644, rendered Indian tribes, Indian housing authorities, and other agencies primarily serving Indians or Indian areas ineligible for amounts made available for assistance under this part for fiscal years 1998 through 2005.
Section 12899i, Pub. L. 101625, title IV, § 461, formerly § 460, as added Pub. L. 102550, title I, § 164, Oct. 28, 1992, 106 Stat. 3733; renumbered § 461, Pub. L. 104330, title V, § 504(a)(1), Oct. 26, 1996, 110 Stat. 4043, authorized the Secretary to issue any regulations necessary to carry out this part.
Statutory Notes and Related Subsidiaries
Transfer of Functions All functions which the Secretary of Housing and Urban Development exercised before Sept. 22, 2006, relating to subtitle D of title IV of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12899 et seq.) transferred to the Department of Labor, see section 3(b) of Pub. L. 109281, set out as a Transfer of Functions and Savings Provisions note under section 3226 of Title 29, Labor.