US (United States) Code. Title 42. Chapter 130: National affordable housing. Subchapter II

Codificación normativa de EEUU (Estados Unidos). Legislación federal estadounidense # The Public Health and Welfare

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-CITE-

42 USC Sec. 12749 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING

Part A - HOME Investment Partnerships

-HEAD-

Sec. 12749. Repayment of investment

-STATUTE-

(a) In general

Any repayment of funds drawn from a jurisdiction's HOME

Investment Trust Fund, and any payment of interest or other return

on the investment of such funds, shall be deposited in such

jurisdiction's 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 jurisdiction's

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.

-SOURCE-

(Pub. L. 101-625, title II, Sec. 219, Nov. 28, 1990, 104 Stat.

4110.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 12748, 12802 of this

title.

-End-

-CITE-

42 USC Sec. 12750 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING

Part A - HOME Investment Partnerships

-HEAD-

Sec. 12750. Matching requirements

-STATUTE-

(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 jurisdiction's 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) of this section 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) of this section.

(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) of this section 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) of this section with respect to any funds drawn

from a jurisdiction's 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 State's 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) of this section with respect to any funds drawn

from a jurisdiction's HOME Investment Trust Fund Account during

that fiscal year by up to 100 percent.

-SOURCE-

(Pub. L. 101-625, title II, Sec. 220, Nov. 28, 1990, 104 Stat.

4111; Pub. L. 102-550, title II, Secs. 207(c), 210(a)-(c), Oct. 28,

1992, 106 Stat. 3753, 3755; Pub. L. 103-233, title II, Sec. 204,

Apr. 11, 1994, 108 Stat. 364.)

-REFTEXT-

REFERENCES IN TEXT

The Robert T. Stafford Disaster Relief and Emergency Assistance

Act, referred to in subsec. (d)(5), is Pub. L. 93-288, May 22,

1974, 88 Stat. 143, as amended, which is classified principally to

chapter 68 (Sec. 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.

-MISC1-

AMENDMENTS

1994 - Subsec. (a). Pub. L. 103-233 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

jurisdiction's 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

jurisdiction's 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. 102-550, Sec. 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. 102-550, Sec. 210(a)(1), substituted ",

housing rehabilitation and substantial rehabilitation; and" for

"and housing rehabilitation;".

Subsec. (a)(2). Pub. L. 102-550, Sec. 210(a)(2), substituted "30"

for "33" and "new construction." for "substantial rehabilitation;

and".

Subsec. (a)(3). Pub. L. 102-550, Sec. 210(a)(3), struck out par.

(3) which read as follows: "50 percent of the total funds drawn

from the jurisdiction's HOME Investment Trust Fund in that fiscal

year with respect to new construction."

Subsec. (b)(2). Pub. L. 102-550, Sec. 207(c)(1), substituted "may

not be recognized for purposes of subsection (a) of this section"

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. 102-550, Sec. 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. 102-550, Sec. 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. 102-550, Sec. 207(c)(2)(B), redesignated par. (4) as (3).

Former par. (3) redesignated (2).

Subsec. (c)(4). Pub. L. 102-550, Sec. 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. 102-550, Sec. 207(c)(2)(B), redesignated par. (5) as (4).

Former par. (4) redesignated (3).

Subsec. (c)(5). Pub. L. 102-550, Sec. 207(c)(2)(B), redesignated

par. (5) as (4).

Subsec. (c)(6) to (8). Pub. L. 102-550, Sec. 210(b)(3), added

pars. (6) to (8).

Subsec. (d). Pub. L. 102-550, Sec. 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."

EFFECTIVE DATE OF 1994 AMENDMENT

Amendment by Pub. L. 103-233 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. 103-233, set out as a note under

section 5301 of this title.

EFFECTIVE DATE OF 1992 AMENDMENT

Section 210(d) of Pub. L. 102-550 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. 102-550 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. 102-550, set out as a note under section

12704 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1437aaa-2, 12747 of this

title.

-End-

-CITE-

42 USC Sec. 12751 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING

Part A - HOME Investment Partnerships

-HEAD-

Sec. 12751. Private-public partnership

-STATUTE-

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

jurisdiction's 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 jurisdiction's housing strategy.

-SOURCE-

(Pub. L. 101-625, title II, Sec. 221, Nov. 28, 1990, 104 Stat.

4112.)

-End-

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42 USC Sec. 12752 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING

Part A - HOME Investment Partnerships

-HEAD-

Sec. 12752. Distribution of assistance

-STATUTE-

(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

jurisdiction's approved housing strategy.

(b) State

Participating States shall be responsible for distributing

assistance throughout the State according to the State's assessment

of the geographical distribution of the housing need within the

State, as identified in the State's approved housing strategy.

Participating States shall distribute assistance to rural areas in

amounts that take into account the nonmetropolitan share of the

State's total population and objective measures of rural housing

need, such as poverty and substandard housing, as set forth in the

State's 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.

-SOURCE-

(Pub. L. 101-625, title II, Sec. 222, Nov. 28, 1990, 104 Stat.

4112.)

-End-

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42 USC Sec. 12753 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING

Part A - HOME Investment Partnerships

-HEAD-

Sec. 12753. Penalties for misuse of funds

-STATUTE-

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 jurisdiction's 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 jurisdiction's

HOME Investment Trust Fund for activities affected by such

failure to comply;

(2) restrict the participating jurisdiction's 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.

-SOURCE-

(Pub. L. 101-625, title II, Sec. 223, Nov. 28, 1990, 104 Stat.

4112.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 12742, 12743, 12748 of

this title.

-End-

-CITE-

42 USC Sec. 12754 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING

Part A - HOME Investment Partnerships

-HEAD-

Sec. 12754. Limitation on jurisdictions under court order

-STATUTE-

(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) of

this section.

(b) Remedial use of funds permitted

In the case of settlement described in subsection (a)(2) of this

section, a jurisdiction may use funds provided under this Act to

carry out housing remedies with eligible activities.

-SOURCE-

(Pub. L. 101-625, title II, Sec. 224, Nov. 28, 1990, 104 Stat.

4113.)

-REFTEXT-

REFERENCES IN TEXT

This Act, referred to in text, is Pub. L. 101-625, 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. 88-352, July 2, 1964, 78 Stat. 241, as amended. Title VI of

the Act is classified generally to subchapter V (Sec. 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. 90-284, Apr. 11, 1968, 82 Stat. 81, as amended,

which is classified principally to subchapter I (Sec. 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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 12748 of this title.

-End-

-CITE-

42 USC Sec. 12755 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING

Part A - HOME Investment Partnerships

-HEAD-

Sec. 12755. Tenant and participant protections

-STATUTE-

(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

owner's service upon the tenant of a written notice specifying the

grounds for the action.

(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

applicant's 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 (!1) the prompt

notification in writing of any rejected applicant of the grounds

for any rejection.

-SOURCE-

(Pub. L. 101-625, title II, Sec. 225, Nov. 28, 1990, 104 Stat.

4113.)

-FOOTNOTE-

(!1) So in original. The word "for" probably should not appear.

-End-

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42 USC Sec. 12756 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING

Part A - HOME Investment Partnerships

-HEAD-

Sec. 12756. Monitoring of compliance

-STATUTE-

(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 jurisdiction's 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.

-SOURCE-

(Pub. L. 101-625, title II, Sec. 226, Nov. 28, 1990, 104 Stat.

4114.)

-End-

-CITE-

42 USC Part B - Community Housing Partnership 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING

Part B - Community Housing Partnership

-HEAD-

PART B - COMMUNITY HOUSING PARTNERSHIP

-End-

-CITE-

42 USC Sec. 12771 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING

Part B - Community Housing Partnership

-HEAD-

Sec. 12771. Set-aside for community housing development

organizations

-STATUTE-

(a) In general

For a period of 24 months after funds under part A of this

subchapter 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

jurisdiction's 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) of this section remain

uninvested for a period of 24 months, then the Secretary shall

deduct such funds from the line of credit in the participating

jurisdiction's 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.

-SOURCE-

(Pub. L. 101-625, title II, Sec. 231, Nov. 28, 1990, 104 Stat.

4114; Pub. L. 102-550, title II, Sec. 212(a), (b), Oct. 28, 1992,

106 Stat. 3757.)

-MISC1-

AMENDMENTS

1992 - Subsec. (a). Pub. L. 102-550 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. 102-550, Sec. 212(a), substituted "24" for

"18".

EFFECTIVE DATE OF 1992 AMENDMENT

Amendment by Pub. L. 102-550 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. 102-550, set out as a note under section 12704 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 12772 of this title.

-End-

-CITE-

42 USC Sec. 12772 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING

Part B - Community Housing Partnership

-HEAD-

Sec. 12772. Project-specific assistance to community housing

development organizations

-STATUTE-

(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 jurisdiction's 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

jurisdiction's 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.

-SOURCE-

(Pub. L. 101-625, title II, Sec. 232, Nov. 28, 1990, 104 Stat.

4115.)

-End-

-CITE-

42 USC Sec. 12773 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING

Part B - Community Housing Partnership

-HEAD-

Sec. 12773. Housing education and organizational support

-STATUTE-

(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) of this section) 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) of this

section, 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

jurisdiction's housing strategy.

(d) Limitations

Contracts under this section with any one contractor for a fiscal

year may not -

(1) exceed 20 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 40 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.

-SOURCE-

(Pub. L. 101-625, title II, Sec. 233, Nov. 28, 1990, 104 Stat.

4116; Pub. L. 102-550, title II, Sec. 213, Oct. 28, 1992, 106 Stat.

3757.)

-REFTEXT-

REFERENCES IN TEXT

The National Housing Act, referred to in subsec. (b)(7), is act

June 27, 1934, ch. 847, 48 Stat. 1246, as amended. Title II of the

Act is classified principally to subchapter II (Sec. 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. 105-220, title I, Sec.

199(b)(2), (c)(2)(B), Aug. 7, 1998, 112 Stat. 1059, effective July

1, 2000. Pursuant to section 2940(b) of Title 29, references to a

provision of the Job Training Partnership Act, effective Aug. 7,

1998, are deemed to refer to that provision or the corresponding

provision of the Workforce Investment Act of 1998, Pub. L. 105-220,

Aug. 7, 1998, 112 Stat. 936, and effective July 1, 2000, are deemed

to refer to the corresponding provision of the Workforce Investment

Act of 1998. For complete classification of the Workforce

Investment Act of 1998 to the Code, see Short Title note set out

under section 9201 of Title 20, Education, and Tables.

-MISC1-

AMENDMENTS

1992 - Subsec. (a)(2). Pub. L. 102-550, Sec. 213(a)(1), inserted

", including community land trusts," after "organizations".

Subsec. (a)(3). Pub. L. 102-550, Sec. 213(b)(1), added par. (3).

Subsec. (b)(6). Pub. L. 102-550, Sec. 213(a)(2), added par. (6).

Subsec. (b)(7). Pub. L. 102-550, Sec. 213(b)(2), added par. (7).

Subsec. (c)(1)(E). Pub. L. 102-550, Sec. 213(b)(3), added subpar.

(E).

Subsec. (e). Pub. L. 102-550, Sec. 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. 102-550, Sec. 213(a)(3), added subsec. (f).

EFFECTIVE DATE OF 1992 AMENDMENT

Amendment by Pub. L. 102-550 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. 102-550, set out as a note under section 12704 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 12724, 12771 of this

title.

-End-

-CITE-

42 USC Sec. 12774 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING

Part B - Community Housing Partnership

-HEAD-

Sec. 12774. Other requirements

-STATUTE-

(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 organization's 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.

-SOURCE-

(Pub. L. 101-625, title II, Sec. 234, Nov. 28, 1990, 104 Stat.

4117; Pub. L. 102-550, title II, Sec. 212(c), Oct. 28, 1992, 106

Stat. 3757.)

-MISC1-

AMENDMENTS

1992 - Subsec. (b). Pub. L. 102-550 struck out ", together with

other Federal assistance," after "in an amount that" and inserted

before period "or $50,000 annually, whichever is greater".

EFFECTIVE DATE OF 1992 AMENDMENT

Amendment by Pub. L. 102-550 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. 102-550, set out as a note under section 12704 of this title.

-End-

-CITE-

42 USC Part C - Other Support for State and Local Housing

Strategies 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING

Part C - Other Support for State and Local Housing Strategies

-HEAD-

PART C - OTHER SUPPORT FOR STATE AND LOCAL HOUSING STRATEGIES

-SECREF-

PART REFERRED TO IN OTHER SECTIONS

This part is referred to in section 12724 of this title.

-End-

-CITE-

42 USC Sec. 12781 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING

Part C - Other Support for State and Local Housing Strategies

-HEAD-

Sec. 12781. Authority

-STATUTE-

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.

-SOURCE-

(Pub. L. 101-625, title II, Sec. 241, Nov. 28, 1990, 104 Stat.

4117.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 12782 of this title.

-End-

-CITE-

42 USC Sec. 12782 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING

Part C - Other Support for State and Local Housing Strategies

-HEAD-

Sec. 12782. Priorities for capacity development

-STATUTE-

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.

-SOURCE-

(Pub. L. 101-625, title II, Sec. 242, Nov. 28, 1990, 104 Stat.

4118; Pub. L. 102-550, title II, Sec. 214(a), Oct. 28, 1992, 106

Stat. 3759.)

-MISC1-

AMENDMENTS

1992 - Par. (6). Pub. L. 102-550 added par. (6).

EFFECTIVE DATE OF 1992 AMENDMENT

Amendment by Pub. L. 102-550 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. 102-550, set out as a note under section 12704 of this title.

-End-

-CITE-

42 USC Sec. 12783 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING

Part C - Other Support for State and Local Housing Strategies

-HEAD-

Sec. 12783. Conditions of contracts

-STATUTE-

(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 20 percent of the funds appropriated under

this part in that fiscal year.

-SOURCE-

(Pub. L. 101-625, title II, Sec. 243, Nov. 28, 1990, 104 Stat.

4118.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 12784 of this title.

-End-

-CITE-

42 USC Sec. 12784 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING

Part C - Other Support for State and Local Housing Strategies

-HEAD-

Sec. 12784. Research in housing affordability

-STATUTE-

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.

-SOURCE-

(Pub. L. 101-625, title II, Sec. 244, Nov. 28, 1990, 104 Stat.

4118; Pub. L. 102-550, title II, Sec. 215, Oct. 28, 1992, 106 Stat.

3759.)

-MISC1-

AMENDMENTS

1992 - Pub. L. 102-550 inserted before period at end of second

sentence ", through the use of cost-saving innovative building

technology and construction techniques".

EFFECTIVE DATE OF 1992 AMENDMENT

Amendment by Pub. L. 102-550 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. 102-550, set out as a note under section 12704 of this title.

-End-

-CITE-

42 USC Sec. 12785 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING

Part C - Other Support for State and Local Housing Strategies

-HEAD-

Sec. 12785. REACH: asset recycling information dissemination

-STATUTE-

(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.

-SOURCE-

(Pub. L. 101-625, title II, Sec. 245, Nov. 28, 1990, 104 Stat.

4119.)

-End-

-CITE-

42 USC Part D - Specified Model Programs 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING

Part D - Specified Model Programs

-HEAD-

PART D - SPECIFIED MODEL PROGRAMS

-SECREF-

PART REFERRED TO IN OTHER SECTIONS

This part is referred to in section 12743 of this title.

-End-

-CITE-

42 USC Sec. 12801 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING

Part D - Specified Model Programs

-HEAD-

Sec. 12801. General authority

-STATUTE-

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.

-SOURCE-

(Pub. L. 101-625, title II, Sec. 251, Nov. 28, 1990, 104 Stat.

4119.)

-End-

-CITE-

42 USC Sec. 12802 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING

Part D - Specified Model Programs

-HEAD-

Sec. 12802. Rental housing production

-STATUTE-

(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

jurisdiction's 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 sponsor's 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 sponsor's 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.

-SOURCE-

(Pub. L. 101-625, title II, Sec. 252, Nov. 28, 1990, 104 Stat.

4119.)

-End-

-CITE-

42 USC Sec. 12803 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING

Part D - Specified Model Programs

-HEAD-

Sec. 12803. Rental rehabilitation

-STATUTE-

(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) (!1) of this title.

-SOURCE-

(Pub. L. 101-625, title II, Sec. 253, Nov. 28, 1990, 104 Stat.

4121.)

-REFTEXT-

REFERENCES IN TEXT

Section 1437o of this title, referred to in subsec. (c), was

repealed by Pub. L. 101-625, title II, Sec. 289(b), Nov. 28, 1990,

104 Stat. 4128.

-FOOTNOTE-

(!1) See References in Text note below.

-End-

-CITE-

42 USC Sec. 12804 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING

Part D - Specified Model Programs

-HEAD-

Sec. 12804. Rehabilitation loans

-STATUTE-

(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 (!1) 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 (!2) of this title.

-SOURCE-

(Pub. L. 101-625, title II, Sec. 254, Nov. 28, 1990, 104 Stat.

4121.)

-REFTEXT-

REFERENCES IN TEXT

Section 1452b of this title, referred to in subsec. (c), was

repealed by Pub. L. 101-625, title II, Sec. 289(b)(1), Nov. 28,

1990, 104 Stat. 4128, which is classified to section 12839(b)(1) of

this title.

-FOOTNOTE-

(!1) So in original. The words "the property" probably should not

appear.

(!2) See References in Text note below.

-End-

-CITE-

42 USC Sec. 12805 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING

Part D - Specified Model Programs

-HEAD-

Sec. 12805. Sweat equity model program

-STATUTE-

(a) In general

The Secretary shall make available a model program to provide

grants to public and private nonprofit organizations and community

housing development organizations to provide technical and

supervisory assistance to low-income and very low-income families,

including the homeless, in acquiring, rehabilitating, and

constructing housing by the self-help housing method.

(b) Rehabilitation of properties

The program shall target for rehabilitation properties which have

been acquired by the Federal, State, or local governments.

(c) Homeownership opportunities through sweat equity

(1) The program shall utilize the skilled or unskilled labor of

eligible families in exchange for acquisition of the property.

(2) Training shall be provided to eligible families in building

and home maintenance skills.

(d) Rental opportunities through sweat equity

(1) The program shall include rental opportunities for eligible

families which will help expand the stock of affordable housing

which is most appropriate for the target group.

(2) The use of the tenant's skilled or unskilled labor shall be

encouraged in lieu of or as a supplement to rent payments by the

tenant.

(e) "Self-help housing" defined

The term "self-help housing" means the same as in section 1490c

of this title.

(f) Additional restrictions

The guidelines for the model program shall generally comport with

the additional protections and restrictions specified under section

1490c of this title.

-SOURCE-

(Pub. L. 101-625, title II, Sec. 255, Nov. 28, 1990, 104 Stat.

4121.)

-MISC1-

ASSISTANCE FOR SELF-HELP HOUSING PROVIDERS

Pub. L. 104-120, Sec. 11, Mar. 28, 1996, 110 Stat. 841, as

amended by Pub. L. 105-276, title V, Sec. 599E(a), Oct. 21, 1998,

112 Stat. 2663; Pub. L. 106-569, title II, Sec. 202, Dec. 27, 2000,

114 Stat. 2951, provided that:

"(a) Grant Authority. - The Secretary of Housing and Urban

Development may, to the extent amounts are available to carry out

this section and the requirements of this section are met, make

grants for use in accordance with this section to national and

regional organizations and consortia that have experience in

providing or facilitating self-help housing homeownership

opportunities.

"(b) Goals and Accountability. - In making grants under this

section, the Secretary shall take such actions as may be necessary

to ensure that -

"(1) assistance provided under this section is used to

facilitate and encourage innovative homeownership opportunities

through the provision of self-help housing, under which the

homeowner contributes a significant amount of sweat equity toward

the construction of the new dwelling;

"(2) assistance provided under this section for land

acquisition and infrastructure development results in the

development of not less than 4,000 new dwellings;

"(3) the dwellings constructed in connection with assistance

provided under this section are quality dwellings that comply

with local building and safety codes and standards and are

available at prices below the prevailing market prices;

"(4) the provision of assistance under this section establishes

and fosters a partnership between the Federal Government and

organizations and consortia, resulting in efficient development

of affordable housing with minimal governmental intervention,

limited governmental regulation, and significant involvement by

private entities;

"(5) activities to develop housing assisted pursuant to this

section involve community participation in which volunteers

assist in the construction of dwellings; and

"(6) dwellings are developed in connection with assistance

under this section on a geographically diverse basis, which

includes areas having high housing costs, rural areas, and areas

underserved by other homeownership opportunities that are

populated by low-income families unable to otherwise afford

housing.

If, at any time, the Secretary determines that the goals under this

subsection cannot be met by providing assistance in accordance with

the terms of this section, the Secretary shall immediately notify

the applicable Committees in writing of such determination and any

proposed changes for such goals or this section.

"(c) National Competition. - The Secretary shall select

organizations and consortia referred to in subsection (a) to

receive grants through a national competitive process, which the

Secretary shall establish.

"(d) Use. -

"(1) Purpose. - Amounts from grants made under this section,

including any recaptured amounts, shall be used only for eligible

expenses in connection with developing new decent, safe, and

sanitary nonluxury dwellings in the United States for families

and persons who otherwise would be unable to afford to purchase a

dwelling.

"(2) Eligible expenses. - For purposes of paragraph (1), the

term 'eligible expenses' means costs only for the following

activities:

"(A) Land acquisition. - Acquiring land (including financing

and closing costs), which may include reimbursing an

organization, consortium, or affiliate, upon approval of any

required environmental review, for nongrant amounts of the

organization, consortium, or affiliate advanced before such

review to acquire land.

"(B) Infrastructure improvement. - Installing, extending,

constructing, rehabilitating, or otherwise improving utilities

and other infrastructure.

Such term does not include any costs for the rehabilitation,

improvement, or construction of dwellings.

"(e) Establishment of Grant Fund. -

"(1) In general. - Any amounts from any grant made under this

section shall be deposited by the grantee organization or

consortium in a fund that is established by such organization or

consortium for such amounts, administered by such organization or

consortium, and available for use only for the purposes under

subsection (d). Any interest, fees, or other earnings of the fund

shall be deposited in the fund and shall be considered grant

amounts for purposes of this section.

"(2) Assistance to affiliates. - Any organization or consortia

that receives a grant under this section may use amounts in the

fund established for such organization or consortia pursuant to

paragraph (1) for the purposes under subsection (d) by providing

assistance from the fund to local affiliates of such organization

or consortia.

"(f) Requirements for Assistance. - The Secretary may make a

grant to an organization or consortium under subsection (a) only

pursuant to -

"(1) an expression of interest by such organization or

consortia to the Secretary for a grant for such purposes;

"(2) a determination by the Secretary that the organization or

consortia has the capability and has obtained financial

commitments (or has the capacity to obtain financial commitments)

necessary to -

"(A) develop not less than 30 dwellings in connection with

the grant amounts; and

"(B) otherwise comply with a grant agreement under subsection

(i); and

"(3) a grant agreement entered into under subsection (i).

"[(g) Repealed. Pub. L. 105-276, title V, Sec. 599E(a)(6), Oct.

21, 1998, 112 Stat. 2664.]

"(h) Geographical Diversity. - In making grants under subsection

(a), the Secretary shall ensure that grants are provided and grant

amounts are used in a manner that results in national geographic

diversity among housing developed using grant amounts under this

section.

"(i) Grant Agreement. - A grant under this section shall be made

only pursuant to a grant agreement entered into by the Secretary

and the organization or consortia receiving the grant, which shall

-

"(1) require such organization or consortia to use grant

amounts only as provided in this section;

"(2) provide for the organization or consortia to develop a

specific and reasonable number of dwellings using the grant

amounts, which number shall be established taking into

consideration costs and economic conditions in the areas in which

the dwellings will be developed, but in no case shall be less

than 30;

"(3) require the organization or consortia to use the grant

amounts in a manner that leverages other sources of funding

(other than grants under this section), including private or

public funds, in developing the dwellings;

"(4) require the organization or consortia to comply with the

other provisions of this section;

"(5) provide that the Secretary shall recapture any grant

amounts provided to the organization or consortia that are not

used within 24 months after such amounts are first disbursed to

the organization or consortia, except that such period shall be

36 months in the case of grant amounts from amounts made

available for fiscal year 1996 to carry out this section, and in

the case of a [sic] grant amounts provided to a local affiliate

of the organization or consortia that is developing five or more

dwellings in connection with such grant amounts; and

"(6) contain such other terms as the Secretary may require to

provide for compliance with subsection (b) and the requirements

of this section.

"(j) Fulfillment of Grant Agreement. - If the Secretary

determines that an organization or consortia awarded a grant under

this section has not, within 24 months after grant amounts are

first made available to the organization or consortia (or, in the

case of grant amounts from amounts made available for fiscal year

1996 to carry out this section and grant amounts provided to a

local affiliate of the organization or consortia that is developing

five or more dwellings in connection with such grant amounts,

within 36 months), substantially fulfilled the obligations under

the grant agreement, including development of the appropriate

number of dwellings under the agreement, the Secretary shall use

any such undisbursed amounts remaining from such grant for other

grants in accordance with this section.

"(k) Records and Audits. - During the period beginning upon the

making of a grant under this section and ending upon close-out of

the grant under subsection (l) -

"(1) the organization awarded the grant shall keep such records

and adopt such administrative practices as the Secretary may

require to ensure compliance with the provisions of this section

and the grant agreement; and

"(2) the Secretary and the Comptroller General of the United

States, and any of their duly authorized representatives, shall

have access for the purpose of audit and examination to any

books, documents, papers, and records of the grantee organization

or consortia and its affiliates that are pertinent to the grant

made under this section.

"(l) Close-Out. - The Secretary shall close out a grant made

under this section upon determining that the aggregate amount of

any assistance provided from the fund established under subsection

(e)(1) by the grantee organization or consortium exceeds the amount

of the grant. For purposes of this paragraph, any interest, fees,

and other earnings of the fund shall be excluded from the amount of

the grant.

"(m) Environmental Review. - A grant under this section shall be

considered to be funds for a special project for purposes of

section 305(c) of the Multifamily Housing Property Disposition

Reform Act of 1994 [42 U.S.C. 3547].

"(n) Report to Congress. - Not later than 90 days after close-out

of all grants under this section is completed, the Secretary shall

submit a report to the applicable Committees describing the grants

made under this section, the grantees, the housing developed in

connection with the grant amounts, and the purposes for which the

grant amounts were used.

"(o) Definitions. - For purposes of this section, the following

definitions shall apply:

"(1) Applicable committees. - The term 'applicable Committees'

means the Committee on Banking and Financial Services [now

Committee on Financial Services] of the House of Representatives

and the Committee on Banking, Housing, and Urban Affairs of the

Senate.

"(2) Secretary. - The term 'Secretary' means the Secretary of

Housing and Urban Development.

"(3) United states. - The term 'United States' includes 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, and

any other territory or possession of the United States.

"(p) Authorization of Appropriations. - There are authorized to

be appropriated to carry out this section such sums as may be

necessary for fiscal year 2001.

"(q) Regulations. - The Secretary shall issue any final

regulations necessary to carry out this section not later than 30

days after the date of the enactment of this Act [Mar. 28, 1996].

The regulations shall take effect upon issuance and may not exceed,

in length, 5 full pages in the Federal Register."

[Pub. L. 105-276, title V, Sec. 599E(b), Oct. 21, 1998, 112 Stat.

2664, provided that: "Notwithstanding the amendments made by

subsection (a) [amending section 11 of Pub. L. 104-120, set out

above], any grant under section 11 of the Housing Opportunity

Program Extension Act of 1996 [Pub. L. 104-120] (42 U.S.C. 12805

note) from amounts appropriated in fiscal year 1998 or any prior

fiscal year shall be governed by the provisions of such section 11

as in effect immediately before the enactment of this Act [Oct. 21,

1998], except that the amendments made by paragraphs (8) and (9) of

subsection (a) of this section shall apply to such grants."]

[Pub. L. 105-276, title V, Sec. 599E(c), Oct. 21, 1998, 112 Stat.

2664, provided that: "This section [amending section 11 of Pub. L.

104-120, set out above, and enacting provisions set out as a note

above] shall take effect, and the amendments made by this section

are made on, and shall apply beginning upon, the date of the

enactment of this Act [Oct. 21, 1998]."]

FUNDING FOR SELF-HELP HOUSING ASSISTANCE, NATIONAL CITIES IN

SCHOOLS COMMUNITY DEVELOPMENT PROGRAM, AND CAPACITY BUILDING

THROUGH NATIONAL COMMUNITY DEVELOPMENT INITIATIVE

Pub. L. 104-120, Sec. 12, Mar. 28, 1996, 110 Stat. 845, provided

that:

"(a) Authority to Use Assisted Housing Amounts. - To the extent

and for the purposes specified in subsection (b), the Secretary of

Housing and Urban Development may use amounts in the account of the

Department of Housing and Urban Development known as the Annual

Contributions for Assisted Housing account, but only such amounts

which -

"(1) have been appropriated for a fiscal year that occurs

before the fiscal year for which the Secretary uses the amounts;

and

"(2) have been obligated before becoming available for use

under this section.

"(b) Fiscal Year 1996. - Of the amounts described in subsection

(a), $60,000,000 shall be available to the Secretary of Housing and

Urban Development for fiscal year 1996 in the following amounts for

the following purposes:

"(1) Self-help housing assistance. - $40,000,000 for carrying

out section 11 of this Act [set out above].

"(2) National cities in schools community development program.

- $10,000,000 for carrying out section 930 of the Housing and

Community Development Act of 1992 (Public Law 102-550; 106 Stat.

3887).

"(3) Capacity building through national community development

initiative. - $10,000,000 for carrying out section 4 of the HUD

Demonstration Act of 1993 (42 U.S.C. 9816 note)."

-End-

-CITE-

42 USC Sec. 12806 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING

Part D - Specified Model Programs

-HEAD-

Sec. 12806. Home repair services grants for older and disabled

homeowners

-STATUTE-

(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.

-SOURCE-

(Pub. L. 101-625, title II, Sec. 256, Nov. 28, 1990, 104 Stat.

4122.)

-End-

-CITE-

42 USC Sec. 12807 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING

Part D - Specified Model Programs

-HEAD-

Sec. 12807. Low-income housing conservation and efficiency grant

programs

-STATUTE-

(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.

-SOURCE-

(Pub. L. 101-625, title II, Sec. 257, Nov. 28, 1990, 104 Stat.

4122.)

-REFTEXT-

REFERENCES IN TEXT

The Energy Conservation and Production Act, referred to in

subsec. (b)(1)(A), is Pub. L. 94-385, Aug. 14, 1976, 90 Stat. 1142,

as amended. Part A of title IV of the Act is classified generally

to part A (Sec. 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.

-End-

-CITE-

42 USC Sec. 12808 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING

Part D - Specified Model Programs

-HEAD-

Sec. 12808. Second mortgage assistance for first-time homebuyers

-STATUTE-

(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 (!1) 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.

-SOURCE-

(Pub. L. 101-625, title II, Sec. 258, Nov. 28, 1990, 104 Stat.

4123.)

-FOOTNOTE-

(!1) So in original. Probably should be "amounts".

-End-

-CITE-

42 USC Sec. 12809 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING

Part D - Specified Model Programs

-HEAD-

Sec. 12809. Rehabilitation of State and local government in rem

properties

-STATUTE-

(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.

-SOURCE-

(Pub. L. 101-625, title II, Sec. 259, Nov. 28, 1990, 104 Stat.

4124.)

-End-

-CITE-

42 USC Sec. 12810 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING

Part D - Specified Model Programs

-HEAD-

Sec. 12810. Cost-saving building technologies and construction

techniques

-STATUTE-

(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.

-SOURCE-

(Pub. L. 101-625, title II, Sec. 260, as added Pub. L. 102-550,

title II, Sec. 216, Oct. 28, 1992, 106 Stat. 3760.)

-MISC1-

EFFECTIVE DATE

Section 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. 102-550, set out

as an Effective Date of 1992 Amendment note under section 12704 of

this title.

-End-

-CITE-

42 USC Part E - Mortgage Credit Enhancement 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING

Part E - Mortgage Credit Enhancement

-HEAD-

PART E - MORTGAGE CREDIT ENHANCEMENT

-End-

-CITE-

42 USC Sec. 12821 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING

Part E - Mortgage Credit Enhancement

-HEAD-

Sec. 12821. Report on credit enhancement

-STATUTE-

(a) In general

The Comptroller General of the United States shall carry out a

study of ways in which financing for affordable housing may be made

available to assist in the most efficient implementation of

comprehensive housing affordability strategies of participating

jurisdictions. In conducting the study, the Comptroller General

shall draw upon the expertise of such representatives of State and

local government, State and local housing finance agencies,

agencies of the United States, government-sponsored mortgage

finance corporations, for-profit and nonprofit housing developers,

private financial institutions, and sources of long-term mortgage

investment, as the Comptroller General determines to be

appropriate.

(b) Report

Not later than one year after November 28, 1990, the Comptroller

General shall submit to the Congress and the Secretary a report

containing any recommendations for legislative or administrative

actions needed to improve the availability of mortgage finance for

affordable housing. The report shall include, but need not be

limited to, an assessment of -

(1) the need for the Department of Housing and Urban

Development or other agencies of the United States to provide

partial credit enhancement to make financing for affordable

housing available efficiently and at the lowest possible cost;

and

(2) alternative ways in which -

(A) the Department could provide any needed credit

enhancement on a one-stop basis for participating

jurisdictions, in coordination with other forms of assistance

under this part;

(B) the Department or other agencies of the Federal

Government could assist government-sponsored mortgage finance

corporations in the financing of mortgages on affordable

housing through the development of mortgage-backed securities

that are more standardized and readily traded in the capital

markets;

(C) the capacities of existing agencies of the United States

could be used to provide mortgage finance more efficiently for

affordable housing through government-sponsored mortgage

finance corporations; and

(D) the interests of the Federal Government could be

protected and any risks of loss could be minimized through

requirements for fees, mortgage insurance, risk-sharing, secure

collateral, and guarantees by other parties, and through

standards relating to minimum capital and prior experience with

underwriting, origination and servicing.

-SOURCE-

(Pub. L. 101-625, title II, Sec. 271, Nov. 28, 1990, 104 Stat.

4124.)

-End-

-CITE-

42 USC Part F - General Provisions 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING

Part F - General Provisions

-HEAD-

PART F - GENERAL PROVISIONS

-End-

-CITE-

42 USC Sec. 12831 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING

Part F - General Provisions

-HEAD-

Sec. 12831. Equal opportunity

-STATUTE-

(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) of this section and such

recommendations for administrative and legislative action as the

Secretary may determine to be appropriate to carry out the purposes

of such subsection.

-SOURCE-

(Pub. L. 101-625, title II, Sec. 281, Nov. 28, 1990, 104 Stat.

4125.)

-REFTEXT-

REFERENCES IN TEXT

This Act, referred to in subsec. (a), is Pub. L. 101-625, 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.

-End-

-CITE-

42 USC Sec. 12832 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING

Part F - General Provisions

-HEAD-

Sec. 12832. Nondiscrimination

-STATUTE-

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).

-SOURCE-

(Pub. L. 101-625, title II, Sec. 282, Nov. 28, 1990, 104 Stat.

4125; Pub. L. 104-204, title II, Sec. 213, Sept. 26, 1996, 110

Stat. 2904.)

-REFTEXT-

REFERENCES IN TEXT

The Age Discrimination Act of 1975, referred to in text, is title

III of Pub. L. 94-135, Nov. 28, 1975, 89 Stat. 728, as amended,

which is classified generally to chapter 76 (Sec. 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, as amended, which was

classified generally to sections 691 to 718 of Title 48,

Territories and Insular Possessions, and was omitted from the Code.

-MISC1-

AMENDMENTS

1996 - Pub. L. 104-204 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)."

-End-

-CITE-

42 USC Sec. 12833 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING

Part F - General Provisions

-HEAD-

Sec. 12833. Audits by Comptroller General

-STATUTE-

(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 General Accounting Office under such rules and

regulations as may be prescribed by the Comptroller General of the

United States. The representatives of the General Accounting 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.

-SOURCE-

(Pub. L. 101-625, title II, Sec. 283, Nov. 28, 1990, 104 Stat.

4125; Pub. L. 103-233, title II, Sec. 205, Apr. 11, 1994, 108 Stat.

364.)

-MISC1-

AMENDMENTS

1994 - Pub. L. 103-233, Sec. 205(1), substituted "Audits by

Comptroller General" for "Annual audits and accountability" in

section catchline.

Subsec. (a). Pub. L. 103-233, Sec. 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. 103-233, Sec. 205(3)(B), (C), redesignated subsec. (b)(1)

as (a) and realigned margins.

Pub. L. 103-233, Sec. 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. 103-233, Sec. 205(3), struck out heading

"Audits by the Comptroller General. - ", redesignated subsec.

(b)(2) as (b), and realigned margins.

-CHANGE-

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. 104-14, 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.

-MISC2-

EFFECTIVE DATE OF 1994 AMENDMENT

Amendment by Pub. L. 103-233 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. 103-233, set out as a note under

section 5301 of this title.

-End-

-CITE-

42 USC Sec. 12834 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING

Part F - General Provisions

-HEAD-

Sec. 12834. Uniform recordkeeping and reports to Congress

-STATUTE-

(a) Uniform requirements

The Secretary shall develop and establish uniform recordkeeping,

performance reporting, and auditing requirements for use by

participating jurisdictions.

(b) Omitted

-SOURCE-

(Pub. L. 101-625, title II, Sec. 284, Nov. 28, 1990, 104 Stat.

4126.)

-COD-

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. 104-66,

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. 103-7.

-End-

-CITE-

42 USC Sec. 12835 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING

Part F - General Provisions

-HEAD-

Sec. 12835. Citizen participation

-STATUTE-

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.

-SOURCE-

(Pub. L. 101-625, title II, Sec. 285, Nov. 28, 1990, 104 Stat.

4126.)

-End-

-CITE-

42 USC Sec. 12836 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING

Part F - General Provisions

-HEAD-

Sec. 12836. Labor

-STATUTE-

(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 3141-3144, 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) of this section 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.

-SOURCE-

(Pub. L. 101-625, title II, Sec. 286, Nov. 28, 1990, 104 Stat.

4126.)

-COD-

CODIFICATION

In subsec. (a), "sections 3141-3144, 3146, and 3147 of title 40"

substituted for "the Davis-Bacon Act (40 U.S.C. 276a - 276a-5)" on

authority of Pub. L. 107-217, Sec. 5(c), Aug. 21, 2002, 116 Stat.

1303, the first section of which enacted Title 40, Public

Buildings, Property, and Works.

-End-

-CITE-

42 USC Sec. 12837 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING

Part F - General Provisions

-HEAD-

Sec. 12837. Interstate agreements

-STATUTE-

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.

-SOURCE-

(Pub. L. 101-625, title II, Sec. 287, Nov. 28, 1990, 104 Stat.

4127.)

-End-

-CITE-

42 USC Sec. 12838 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING

Part F - General Provisions

-HEAD-

Sec. 12838. Environmental review

-STATUTE-

(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 Secretary's 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 (!1) 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) of this section. The

Secretary's 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) of this section, 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) of this

section, 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) of this section and the

performance of such actions shall be deemed to satisfy the

Secretary's responsibilities referred to in the second sentence of

such subsection.

-SOURCE-

(Pub. L. 101-625, title II, Sec. 288, Nov. 28, 1990, 104 Stat.

4127; Pub. L. 103-233, title II, Sec. 206, Apr. 11, 1994, 108 Stat.

365; Pub. L. 104-330, title V, Sec. 505(a)(2), Oct. 26, 1996, 110

Stat. 4044.)

-REFTEXT-

REFERENCES IN TEXT

The National Environmental Policy Act of 1969, referred to in

subsecs. (a), (b), and (c)(4), is Pub. L. 91-190, Jan. 1, 1970, 83

Stat. 852, as amended, which is classified generally to chapter 55

(Sec. 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.

-MISC1-

AMENDMENTS

1996 - Subsec. (a). Pub. L. 104-330, Sec. 505(a)(2)(A), struck

out ", Indian tribes," after "projects to jurisdictions" in

introductory provisions.

Subsecs. (b), (c)(4). Pub. L. 104-330, Sec. 505(a)(2)(B), (C),

struck out ", Indian tribe," after "the jurisdiction".

1994 - Subsec. (a). Pub. L. 103-233, Sec. 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 Secretary's 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. 103-233, Sec. 206(2), substituted

"jurisdiction, Indian tribe, or insular area" for "participating

jurisdiction".

Subsec. (c)(4)(B). Pub. L. 103-233, Sec. 206(3), substituted

"jurisdiction, Indian tribe, or insular area" for "participating

jurisdiction".

Subsec. (d). Pub. L. 103-233, Sec. 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.

EFFECTIVE DATE OF 1996 AMENDMENT

Amendment by Pub. L. 104-330 effective Oct. 1, 1997, except as

otherwise expressly provided, see section 107 of Pub. L. 104-330,

set out as an Effective Date note under section 4101 of Title 25,

Indians.

Amendment by Pub. L. 104-330 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.

104-330, set out as a note under section 12747 of this title.

EFFECTIVE DATE OF 1994 AMENDMENT

Amendment by Pub. L. 103-233 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. 103-233, set out as a note under

section 5301 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 4852 of this title.

-FOOTNOTE-

(!1) So in original. Probably should be followed by a comma.

-End-

-CITE-

42 USC Sec. 12839 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING

Part F - General Provisions

-HEAD-

Sec. 12839. Termination of existing housing programs

-STATUTE-

(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.

11361 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) of this

section are repealed.

(2) No effect on SRO program

The provision of law referred to in subsection (a)(4) of this

section 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. 11361 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) of this section 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.

-SOURCE-

(Pub. L. 101-625, title II, Sec. 289, Nov. 28, 1990, 104 Stat.

4128; Pub. L. 106-400, Sec. 2, Oct. 30, 2000, 114 Stat. 1675.)

-REFTEXT-

REFERENCES IN TEXT

Title VI of the Housing and Community Development Act of 1987

[Pub. L. 100-242], 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), (b)(2), is Pub. L. 100-77, July 22, 1987, 101

Stat. 482, as amended. Title IV of the Act is classified

principally to subchapter IV (Sec. 11361 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.

-MISC1-

AMENDMENTS

2000 - Subsecs. (a)(4), (b)(2). Pub. L. 106-400 substituted

"McKinney-Vento Homeless Assistance Act" for "Stewart B. McKinney

Homeless Assistance Act".

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in title 12 section 3752.

-End-

-CITE-

42 USC Sec. 12840 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING

Part F - General Provisions

-HEAD-

Sec. 12840. Suspension of requirements for disaster areas

-STATUTE-

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.

-SOURCE-

(Pub. L. 101-625, title II, Sec. 290, as added Pub. L. 103-233,

title II, Sec. 208, Apr. 11, 1994, 108 Stat. 366.)

-REFTEXT-

REFERENCES IN TEXT

The Robert T. Stafford Disaster Relief and Emergency Assistance

Act, referred to in text, is Pub. L. 93-288, May 22, 1974, 88 Stat.

143, as amended. Title IV of the Act is classified generally to

subchapter IV (Sec. 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.

-MISC1-

EFFECTIVE DATE

Section 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. 103-233,

set out as an Effective Date of 1994 Amendment note under section

5301 of this title.

-End-

-CITE-

42 USC SUBCHAPTER III - NATIONAL HOMEOWNERSHIP TRUST

DEMONSTRATION 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER III - NATIONAL HOMEOWNERSHIP TRUST DEMONSTRATION

-HEAD-

SUBCHAPTER III - NATIONAL HOMEOWNERSHIP TRUST DEMONSTRATION

-SECREF-

SUBCHAPTER REFERRED TO IN OTHER SECTIONS

This subchapter is referred to in sections 1436a, 3535 of this

title.

-End-

-CITE-

42 USC Sec. 12851 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER III - NATIONAL HOMEOWNERSHIP TRUST DEMONSTRATION

-HEAD-

Sec. 12851. National Homeownership Trust

-STATUTE-

(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.

-SOURCE-

(Pub. L. 101-625, title III, Sec. 302, Nov. 28, 1990, 104 Stat.

4129.)

-MISC1-

SHORT TITLE

For short title of this subchapter as the "National Homeownership

Trust Act", see Short Title note set out under section 12701 of

this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 12854 of this title.

-End-

-CITE-

42 USC Sec. 12852 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER III - NATIONAL HOMEOWNERSHIP TRUST DEMONSTRATION

-HEAD-

Sec. 12852. Assistance for first-time homebuyers

-STATUTE-

(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) of this section.

(4) Second mortgage assistance

Assistance payments to provide loans (secured by second

mortgages) with deferred payment of interest and principal; and

(!1)

(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) of this section, 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) of

this section 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) of this section 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) of this section

shall not be required for assistance under this subsection;

(B) the provisions of subsection (b)(2) of this section 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) of this section, 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) (!2) Availability

The Trust may make assistance payments under subparagraphs (A)

and (B) of paragraph (3) with respect to a single mortgage of a

homebuyer.

-SOURCE-

(Pub. L. 101-625, title III, Sec. 303, Nov. 28, 1990, 104 Stat.

4130; Pub. L. 102-550, title I, Sec. 182(c)-(e), Oct. 28, 1992, 106

Stat. 3737, 3738.)

-REFTEXT-

REFERENCES IN TEXT

The National Housing Act, referred to in subsec. (b)(2)(B), (5),

is act June 27, 1934, ch. 847, 48 Stat. 1246, as amended, which is

classified principally to chapter 13 (Sec. 1701 et seq.) of Title

12, Banks and Banking. Title II of the Act is classified

principally to subchapter II (Sec. 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.

-MISC1-

AMENDMENTS

1992 - Subsec. (a)(3). Pub. L. 102-550, Sec. 182(c)(2), added

par. (3).

Subsec. (a)(4), (5). Pub. L. 102-550, Sec. 182(e), added pars.

(4) and (5).

Subsec. (b)(1)(D). Pub. L. 102-550, Sec. 182(d), added subpar.

(D).

Subsec. (e). Pub. L. 102-550, Sec. 182(c)(1), added subsec. (e).

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 12857 of this title; title

12 section 1701x.

-FOOTNOTE-

(!1) So in original. The "; and" probably should be a period.

(!2) So in original. Probably should be "(4)".

-End-

-CITE-

42 USC Sec. 12853 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER III - NATIONAL HOMEOWNERSHIP TRUST DEMONSTRATION

-HEAD-

Sec. 12853. National Homeownership Trust Fund

-STATUTE-

(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) of

this section.

(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.

-SOURCE-

(Pub. L. 101-625, title III, Sec. 304, Nov. 28, 1990, 104 Stat.

4132.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 12854 of this title.

-End-

-CITE-

42 USC Sec. 12854 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER III - NATIONAL HOMEOWNERSHIP TRUST DEMONSTRATION

-HEAD-

Sec. 12854. Definitions

-STATUTE-

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.

-SOURCE-

(Pub. L. 101-625, title III, Sec. 305, Nov. 28, 1990, 104 Stat.

4132.)

-TRANS-

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.

-End-

-CITE-

42 USC Sec. 12855 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER III - NATIONAL HOMEOWNERSHIP TRUST DEMONSTRATION

-HEAD-

Sec. 12855. Regulations

-STATUTE-

The Board of Directors shall issue any regulations necessary to

carry out this subchapter.

-SOURCE-

(Pub. L. 101-625, title III, Sec. 306, Nov. 28, 1990, 104 Stat.

4133.)

-End-

-CITE-

42 USC Sec. 12856 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER III - NATIONAL HOMEOWNERSHIP TRUST DEMONSTRATION

-HEAD-

Sec. 12856. Report

-STATUTE-

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.

-SOURCE-

(Pub. L. 101-625, title III, Sec. 307, Nov. 28, 1990, 104 Stat.

4133.)

-End-

-CITE-

42 USC Sec. 12857 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER III - NATIONAL HOMEOWNERSHIP TRUST DEMONSTRATION

-HEAD-

Sec. 12857. Authorization of appropriations

-STATUTE-

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 (!1) of

this title.

-SOURCE-

(Pub. L. 101-625, title III, Sec. 308, Nov. 28, 1990, 104 Stat.

4133; Pub. L. 102-550, title I, Sec. 182(b), Oct. 28, 1992, 106

Stat. 3736.)

-REFTEXT-

REFERENCES IN TEXT

Section 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. 101-625, to reflect the

probable intent of Congress, because Pub. L. 101-625 does not

contain a section 311.

-MISC1-

AMENDMENTS

1992 - Pub. L. 102-550 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."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 12853 of this title.

-FOOTNOTE-

(!1) See References in Text note below.

-End-

-CITE-

42 USC Sec. 12858 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER III - NATIONAL HOMEOWNERSHIP TRUST DEMONSTRATION

-HEAD-

Sec. 12858. Transition

-STATUTE-

(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.

-SOURCE-

(Pub. L. 101-625, title III, Sec. 309, Nov. 28, 1990, 104 Stat.

4133.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 12857 of this title.

-End-

-CITE-

42 USC Sec. 12859 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER III - NATIONAL HOMEOWNERSHIP TRUST DEMONSTRATION

-HEAD-

Sec. 12859. Termination

-STATUTE-

The Trust shall terminate September 30, 1994.

-SOURCE-

(Pub. L. 101-625, title III, Sec. 310, Nov. 28, 1990, 104 Stat.

4133; Pub. L. 102-550, title I, Sec. 182(a), Oct. 28, 1992, 106

Stat. 3736.)

-MISC1-

AMENDMENTS

1992 - Pub. L. 102-550 substituted "September 30, 1994" for "on

September 30, 1993".

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 12856, 12858 of this

title.

-End-

-CITE-

42 USC SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF

MULTIFAMILY AND SINGLE FAMILY HOMES 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE

FAMILY HOMES

-HEAD-

SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE

FAMILY HOMES

-SECREF-

SUBCHAPTER REFERRED TO IN OTHER SECTIONS

This subchapter is referred to in sections 1437f, 3535 of this

title; title 12 sections 1831q, 1834a.

-End-

-CITE-

42 USC Sec. 12870 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE

FAMILY HOMES

-HEAD-

Sec. 12870. Authorization of appropriations

-STATUTE-

(a) Fiscal year 1993

There are authorized to be appropriated for grants under this

title (!1) $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 (!2) title;

(2) $285,000,000 shall be available for activities authorized

under part A of this subchapter, 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 this subchapter, 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.

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. 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 of this subchapter, 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

of this subchapter, 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.

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. 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 of

this subchapter 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 of this subchapter 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.

-SOURCE-

(Pub. L. 101-625, title IV, Sec. 402, as added Pub. L. 102-550,

title I, Sec. 181(a)(1), Oct. 28, 1992, 106 Stat. 3734.)

-REFTEXT-

REFERENCES IN TEXT

This title, referred to in introductory provisions of subsecs.

(a) and (b), is title IV of Pub. L. 101-625, Nov. 28, 1990, 104

Stat. 4148, known as the Homeownership and Opportunity Through HOPE

Act, which enacted this subchapter and subchapter II-A (Sec.

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. 93-383, title II, Sec. 201(a), Aug. 22, 1974,

88 Stat. 653. Title III of the Act is classified generally to

subchapter II-A (Sec. 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.

-MISC1-

GAO AUDIT OF TECHNICAL ASSISTANCE CONTRACTS

Section 181(a)(3) of Pub. L. 102-550 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."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 12899g of this title.

-FOOTNOTE-

(!1) See References in Text note below.

(!2) So in original. Probably should be "such".

-End-

-CITE-

42 USC Part A - HOPE for Homeownership of Multifamily

Units 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE

FAMILY HOMES

Part A - HOPE for Homeownership of Multifamily Units

-HEAD-

PART A - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY UNITS

-SECREF-

PART REFERRED TO IN OTHER SECTIONS

This part is referred to in sections 12870, 12899c, 12899d of

this title; title 12 sections 1701z-11, 1709.

-End-

-CITE-

42 USC Sec. 12871 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE

FAMILY HOMES

Part A - HOPE for Homeownership of Multifamily Units

-HEAD-

Sec. 12871. Program authority

-STATUTE-

(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.

-SOURCE-

(Pub. L. 101-625, title IV, Sec. 421, Nov. 28, 1990, 104 Stat.

4162; Pub. L. 102-550, title I, Sec. 181(a)(2)(B)(i), Oct. 28,

1992, 106 Stat. 3735.)

-REFTEXT-

REFERENCES IN TEXT

This part, referred to in subsec. (b), was in the original "this

subtitle", meaning subtitle B (Secs. 421-431) of title IV of Pub.

L. 101-625, Nov. 28, 1990, 104 Stat. 4162, which enacted this part

and amended section 1709 of Title 12, Banks and Banking.

-MISC1-

AMENDMENTS

1992 - Subsec. (c). Pub. L. 102-550 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."

-End-

-CITE-

42 USC Sec. 12872 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE

FAMILY HOMES

Part A - HOPE for Homeownership of Multifamily Units

-HEAD-

Sec. 12872. Planning grants

-STATUTE-

(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.

-SOURCE-

(Pub. L. 101-625, title IV, Sec. 422, Nov. 28, 1990, 104 Stat.

4162; Pub. L. 102-550, title X, Sec. 1012(i)(1), Oct. 28, 1992, 106

Stat. 3906.)

-REFTEXT-

REFERENCES IN TEXT

The Fair Housing Act, referred to in subsec. (c)(2)(E), is title

VIII of Pub. L. 90-284, Apr. 11, 1968, 82 Stat. 81, as amended,

which is classified principally to subchapter I (Sec. 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. 88-352, July 2, 1964, 78 Stat. 241, as amended. Title VI

of the Act is classified generally to subchapter V (Sec. 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. 94-135, Nov. 28, 1975, 89 Stat.

728, as amended, which is classified generally to chapter 76 (Sec.

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.

-MISC1-

AMENDMENTS

1992 - Subsec. (b)(4) to (9). Pub. L. 102-550 added par. (4) and

redesignated former pars. (4) to (8) as (5) to (9), respectively.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 12873, 12875 of this

title.

-End-

-CITE-

42 USC Sec. 12873 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE

FAMILY HOMES

Part A - HOPE for Homeownership of Multifamily Units

-HEAD-

Sec. 12873. Implementation grants

-STATUTE-

(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 (!1) 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) (!2) 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 (!3) 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) (!3) 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) of this section 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) (!4) 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 (!5) 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 (!6) 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.

-SOURCE-

(Pub. L. 101-625, title IV, Sec. 423, Nov. 28, 1990, 104 Stat.

4163; Pub. L. 102-550, title X, Sec. 1012(i)(2), Oct. 28, 1992, 106

Stat. 3906.)

-REFTEXT-

REFERENCES IN TEXT

Section 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. 101-625, to reflect

the probable intent of Congress. Section 322 of Pub. L. 101-625

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. 101-625, to reflect the probable intent of

Congress. Section 324 of Pub. L. 101-625, which proposed an

amendment to section 1709 of Title 12, never took effect pursuant

to section 351 of Pub. L. 101-625. 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. 90-284, Apr. 11, 1968, 82 Stat. 81, as amended,

which is classified principally to subchapter I (Sec. 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. 88-352, July 2, 1964, 78 Stat. 241, as amended. Title VI

of the Act is classified generally to subchapter V (Sec. 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. 94-135, Nov. 28, 1975, 89 Stat.

728, as amended, which is classified generally to chapter 76 (Sec.

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. 101-625, known as the Homeownership and Opportunity Through HOPE

Act, and probably should have been "this subtitle", meaning

subtitle B (Secs. 421-431) of title IV of Pub. L. 101-625, which is

classified principally to this part. For complete classification of

title IV of Pub. L. 101-625 to the Code, see Short Title note set

out under section 1437aaa of this title and Tables.

-MISC1-

AMENDMENTS

1992 - Subsec. (b)(4) to (14). Pub. L. 102-550 added par. (4) and

redesignated former pars. (4) to (13) as (5) to (14), respectively.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 12875 of this title.

-FOOTNOTE-

(!1) See References in Text note below.

(!2) So in original. Two subsecs. (d) have been enacted.

(!3) See References in Text note below.

(!4) So in original. Two subsecs. (d) have been enacted.

(!5) See References in Text note below.

(!6) So in original. Probably should be "this".

-End-

-CITE-

42 USC Sec. 12874 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE

FAMILY HOMES

Part A - HOPE for Homeownership of Multifamily Units

-HEAD-

Sec. 12874. Homeownership program requirements

-STATUTE-

(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) of

this section 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.(!1)

(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.

-SOURCE-

(Pub. L. 101-625, title IV, Sec. 424, Nov. 28, 1990, 104 Stat.

4166.)

-REFTEXT-

REFERENCES IN TEXT

The National Housing Act, referred to in subsec. (e)(1), is act

June 27, 1934, ch. 847, 48 Stat. 1246, as amended. Title II of the

Act is classified principally to subchapter II (Sec. 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.

101-625, Nov. 28, 1990, 104 Stat. 4148, known as the Homeownership

and Opportunity Through HOPE Act, which enacted this subchapter and

subchapter II-A (Sec. 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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 12873 of this title.

-FOOTNOTE-

(!1) See References in Text note below.

-End-

-CITE-

42 USC Sec. 12875 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE

FAMILY HOMES

Part A - HOPE for Homeownership of Multifamily Units

-HEAD-

Sec. 12875. Other program requirements

-STATUTE-

(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

homeowner's 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 family's 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 family's

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) 6-20 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) (!1) 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) of this section), 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.

-SOURCE-

(Pub. L. 101-625, title IV, Sec. 425, Nov. 28, 1990, 104 Stat.

4168.)

-REFTEXT-

REFERENCES IN TEXT

Sections 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. 102-550, title

X, Sec. 1012(i), Oct. 28, 1992, 106 Stat. 3906.

-FOOTNOTE-

(!1) See References in Text note below.

-End-

-CITE-

42 USC Sec. 12876 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE

FAMILY HOMES

Part A - HOPE for Homeownership of Multifamily Units

-HEAD-

Sec. 12876. Definitions

-STATUTE-

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) (!1) 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.

-SOURCE-

(Pub. L. 101-625, title IV, Sec. 426, Nov. 28, 1990, 104 Stat.

4170; Pub. L. 102-550, title I, Sec. 181(d), (e), (h), Oct. 28,

1992, 106 Stat. 3735, 3736.)

-REFTEXT-

REFERENCES IN TEXT

Section 1437a(b)(11) of this title, referred to in par. (5), was

repealed by Pub. L. 104-330, title V, Sec. 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. 105-276, title

V, Sec. 506(4), Oct. 21, 1998, 112 Stat. 2524.

This title, referred to in par. (8), means title IV of Pub. L.

101-625, known as the Homeownership and Opportunity Through HOPE

Act, and probably should have been "this subtitle", meaning

subtitle B (Secs. 421-431) of title IV of Pub. L. 101-625, which is

classified principally to this part. For complete classification of

title IV of Pub. L. 101-625 to the Code, see Short Title note set

out under section 1437aaa of this title and Tables.

-MISC1-

AMENDMENTS

1992 - Par. (1)(G). Pub. L. 102-550, Sec. 181(d), added subpar.

(G).

Par. (3)(D). Pub. L. 102-550, Sec. 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.

-FOOTNOTE-

(!1) See References in Text note below.

-End-

-CITE-

42 USC Sec. 12877 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE

FAMILY HOMES

Part A - HOPE for Homeownership of Multifamily Units

-HEAD-

Sec. 12877. Exemption

-STATUTE-

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 1701z-11 of title 12 applicable

to the sale of projects either at foreclosure or after

acquisition by the Secretary.

-SOURCE-

(Pub. L. 101-625, title IV, Sec. 427, Nov. 28, 1990, 104 Stat.

4171.)

-REFTEXT-

REFERENCES IN TEXT

The Low-Income Housing Preservation and Resident Homeownership

Act of 1990, referred to in par. (1), is title II of Pub. L.

100-242, as amended by Pub. L. 101-625, title VI, Sec. 601(a), Nov.

28, 1990, 104 Stat. 4249, which is classified principally to

chapter 42 (Sec. 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.

-End-

-CITE-

42 USC Sec. 12878 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE

FAMILY HOMES

Part A - HOPE for Homeownership of Multifamily Units

-HEAD-

Sec. 12878. Limitation on selection criteria

-STATUTE-

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.

-SOURCE-

(Pub. L. 101-625, title IV, Sec. 428, Nov. 28, 1990, 104 Stat.

4171.)

-End-

-CITE-

42 USC Sec. 12879 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE

FAMILY HOMES

Part A - HOPE for Homeownership of Multifamily Units

-HEAD-

Sec. 12879. Implementation

-STATUTE-

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.

-SOURCE-

(Pub. L. 101-625, title IV, Sec. 430, Nov. 28, 1990, 104 Stat.

4172.)

-End-

-CITE-

42 USC Sec. 12880 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE

FAMILY HOMES

Part A - HOPE for Homeownership of Multifamily Units

-HEAD-

Sec. 12880. Report

-STATUTE-

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.

-SOURCE-

(Pub. L. 101-625, title IV, Sec. 431, Nov. 28, 1990, 104 Stat.

4172; Pub. L. 104-66, title I, Sec. 1072(a), Dec. 21, 1995, 109

Stat. 721.)

-MISC1-

AMENDMENTS

1995 - Pub. L. 104-66 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".

-End-

-CITE-

42 USC Part B - HOPE for Homeownership of Single Family

Homes 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE

FAMILY HOMES

Part B - HOPE for Homeownership of Single Family Homes

-HEAD-

PART B - HOPE FOR HOMEOWNERSHIP OF SINGLE FAMILY HOMES

-SECREF-

PART REFERRED TO IN OTHER SECTIONS

This part is referred to in sections 12870, 12899c, 12899d of

this title; title 12 sections 1709, 1834a.

-End-

-CITE-

42 USC Sec. 12891 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE

FAMILY HOMES

Part B - HOPE for Homeownership of Single Family Homes

-HEAD-

Sec. 12891. Program authority

-STATUTE-

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.

-SOURCE-

(Pub. L. 101-625, title IV, Sec. 441, Nov. 28, 1990, 104 Stat.

4172; Pub. L. 102-550, title I, Sec. 181(a)(2)(B)(ii), Oct. 28,

1992, 106 Stat. 3735.)

-MISC1-

AMENDMENTS

1992 - Pub. L. 102-550 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."

-End-

-CITE-

42 USC Sec. 12892 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE

FAMILY HOMES

Part B - HOPE for Homeownership of Single Family Homes

-HEAD-

Sec. 12892. Planning grants

-STATUTE-

(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.

-SOURCE-

(Pub. L. 101-625, title IV, Sec. 442, Nov. 28, 1990, 104 Stat.

4172; Pub. L. 102-550, title X, Sec. 1012(j)(1), Oct. 28, 1992, 106

Stat. 3906.)

-REFTEXT-

REFERENCES IN TEXT

The Fair Housing Act, referred to in subsec. (c)(2)(E), is title

VIII of Pub. L. 90-284, Apr. 11, 1968, 82 Stat. 81, as amended,

which is classified principally to subchapter I (Sec. 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. 88-352, July 2, 1964, 78 Stat. 241, as amended. Title VI

of the Act is classified generally to subchapter V (Sec. 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. 94-135, Nov. 28, 1975, 89 Stat.

728, as amended, which is classified generally to chapter 76 (Sec.

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.

-MISC1-

AMENDMENTS

1992 - Subsec. (b)(4) to (9). Pub. L. 102-550 added par. (4) and

redesignated former pars. (4) to (8) as (5) to (9), respectively.

-End-

-CITE-

42 USC Sec. 12893 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE

FAMILY HOMES

Part B - HOPE for Homeownership of Single Family Homes

-HEAD-

Sec. 12893. Implementation grants

-STATUTE-

(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) of this section 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.

-SOURCE-

(Pub. L. 101-625, title IV, Sec. 443, Nov. 28, 1990, 104 Stat.

4174; Pub. L. 102-550, title X, Sec. 1012(j)(2), Oct. 28, 1992, 106

Stat. 3906; Pub. L. 103-233, title II, Sec. 221, Apr. 11, 1994, 108

Stat. 366.)

-REFTEXT-

REFERENCES IN TEXT

The Fair Housing Act, referred to in subsec. (d)(2)(K), is title

VIII of Pub. L. 90-284, Apr. 11, 1968, 82 Stat. 81, as amended,

which is classified principally to subchapter I (Sec. 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. 88-352, July 2, 1964, 78 Stat. 241, as amended. Title VI

of the Act is classified generally to subchapter V (Sec. 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. 94-135, Nov. 28, 1975, 89 Stat.

728, as amended, which is classified generally to chapter 76 (Sec.

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.

-MISC1-

AMENDMENTS

1994 - Subsec. (c)(1). Pub. L. 103-233 substituted "25 percent"

for "33 percent".

1992 - Subsec. (b)(4) to (11). Pub. L. 102-550 added par. (4) and

redesignated former pars. (4) to (10) as (5) to (11), respectively.

EFFECTIVE DATE OF 1994 AMENDMENT

Amendment by Pub. L. 103-233 applicable with respect to any

amounts made available to carry out subchapter II (Sec. 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. 103-233,

set out as a note under section 5301 of this title.

-End-

-CITE-

42 USC Sec. 12894 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE

FAMILY HOMES

Part B - HOPE for Homeownership of Single Family Homes

-HEAD-

Sec. 12894. Homeownership program requirements

-STATUTE-

(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 (!1) 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.(!2)

(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.

-SOURCE-

(Pub. L. 101-625, title IV, Sec. 444, Nov. 28, 1990, 104 Stat.

4176; Pub. L. 102-550, title I, Sec. 181(f), Oct. 28, 1992, 106

Stat. 3736.)

-REFTEXT-

REFERENCES IN TEXT

This title, referred to in subsec. (e)(2), is title IV of Pub. L.

101-625, Nov. 28, 1990, 104 Stat. 4148, known as the Homeownership

and Opportunity Through HOPE Act, which enacted this subchapter and

subchapter II-A (Sec. 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.

-MISC1-

AMENDMENTS

1992 - Subsec. (f). Pub. L. 102-550 added subsec. (f).

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 12893 of this title.

-FOOTNOTE-

(!1) So in original. The word "of" probably should not appear.

(!2) So in original. See References in Text note below.

-End-

-CITE-

42 USC Sec. 12895 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE

FAMILY HOMES

Part B - HOPE for Homeownership of Single Family Homes

-HEAD-

Sec. 12895. Other program requirements

-STATUTE-

(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

homeowner's 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 family's 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 family's

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) 6-20 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) (!1) 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) of this section), 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.

-SOURCE-

(Pub. L. 101-625, title IV, Sec. 445, Nov. 28, 1990, 104 Stat.

4177.)

-FOOTNOTE-

(!1) So in original. Probably should be "(f)".

-End-

-CITE-

42 USC Sec. 12896 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE

FAMILY HOMES

Part B - HOPE for Homeownership of Single Family Homes

-HEAD-

Sec. 12896. Definitions

-STATUTE-

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) (!1) 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.

-SOURCE-

(Pub. L. 101-625, title IV, Sec. 446, Nov. 28, 1990, 104 Stat.

4179; Pub. L. 102-550, title I, Sec. 181(g)(2), (h), Oct. 28, 1992,

106 Stat. 3736.)

-REFTEXT-

REFERENCES IN TEXT

The United States Housing Act of 1937, referred to in par. (4),

is act Sept. 1, 1937, ch. 896, as revised generally by Pub. L.

93-383, title II, Sec. 201(a), Aug. 22, 1974, 88 Stat. 653, and

amended, which is classified generally to chapter 8 (Sec. 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. 104-330, title V, Sec.

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. 105-276, title V, Sec. 506(4), Oct. 21, 1998, 112 Stat.

2524.

-MISC1-

AMENDMENTS

1992 - Par. (4). Pub. L. 102-550 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".

-FOOTNOTE-

(!1) See References in Text note below.

-End-

-CITE-

42 USC Sec. 12897 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE

FAMILY HOMES

Part B - HOPE for Homeownership of Single Family Homes

-HEAD-

Sec. 12897. Limitation on selection criteria

-STATUTE-

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.

-SOURCE-

(Pub. L. 101-625, title IV, Sec. 447, Nov. 28, 1990, 104 Stat.

4180.)

-End-

-CITE-

42 USC Sec. 12898 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE

FAMILY HOMES

Part B - HOPE for Homeownership of Single Family Homes

-HEAD-

Sec. 12898. Implementation

-STATUTE-

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.

-SOURCE-

(Pub. L. 101-625, title IV, Sec. 448, Nov. 28, 1990, 104 Stat.

4180.)

-End-

-CITE-

42 USC Sec. 12898a 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE

FAMILY HOMES

Part B - HOPE for Homeownership of Single Family Homes

-HEAD-

Sec. 12898a. Enterprise zone homeownership opportunity grants

-STATUTE-

(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 (!1) 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.(!2) 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.

-SOURCE-

(Pub. L. 102-550, title I, Sec. 186, Oct. 28, 1992, 106 Stat.

3748.)

-COD-

CODIFICATION

Section was enacted as part of the Housing and Community

Development Act of 1992, and not as part of subtitle C (Secs.

441-448) of title IV of Pub. L. 101-625 which comprises this part.

-TRANS-

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.

-FOOTNOTE-

(!1) So in original. Probably should be "homes".

(!2) So in original. Probably should be "this section."

-End-

-CITE-

42 USC Part C - HOPE for Youth: Youthbuild 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE

FAMILY HOMES

Part C - HOPE for Youth: Youthbuild

-HEAD-

PART C - HOPE FOR YOUTH: YOUTHBUILD

-SECREF-

PART REFERRED TO IN OTHER SECTIONS

This part is referred to in section 12870 of this title; title 12

section 1701u; title 25 section 4183.

-End-

-CITE-

42 USC Sec. 12899 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE

FAMILY HOMES

Part C - HOPE for Youth: Youthbuild

-HEAD-

Sec. 12899. Statement of purpose

-STATUTE-

It is the purpose of this part -

(1) to expand the supply of permanent affordable housing for

homeless individuals and members of low- and very low-income

families by utilizing the energies and talents of economically

disadvantaged young adults;

(2) to provide economically disadvantaged young adults with

opportunities for meaningful work and service to their

communities in helping to meet the housing needs of homeless

individuals and members of low- and very low-income families;

(3) to enable economically disadvantaged young adults to obtain

the education and employment skills necessary to achieve economic

self-sufficiency; and

(4) to foster the development of leadership skills and

commitment to community development among young adults in

low-income communities.

-SOURCE-

(Pub. L. 101-625, title IV, Sec. 451, as added Pub. L. 102-550,

title I, Sec. 164, Oct. 28, 1992, 106 Stat. 3723.)

-End-

-CITE-

42 USC Sec. 12899a 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE

FAMILY HOMES

Part C - HOPE for Youth: Youthbuild

-HEAD-

Sec. 12899a. Program authority

-STATUTE-

The Secretary may make -

(1) planning grants to enable applicants to develop Youthbuild

programs; and

(2) implementation grants to enable applicants to carry out

Youthbuild programs.

-SOURCE-

(Pub. L. 101-625, title IV, Sec. 452, as added Pub. L. 102-550,

title I, Sec. 164, Oct. 28, 1992, 106 Stat. 3723.)

-End-

-CITE-

42 USC Sec. 12899b 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE

FAMILY HOMES

Part C - HOPE for Youth: Youthbuild

-HEAD-

Sec. 12899b. Planning grants

-STATUTE-

(a) Grants

The Secretary is authorized to make planning grants to applicants

for the purpose of developing Youthbuild programs under this part.

The amount of a planning grant under this section may not exceed

$150,000, 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 Youthbuild

programs including -

(1) studies of the feasibility of a Youthbuild program;

(2) establishment of consortia between youth training and

education programs and housing owners or developers, including

any organizations specified in section 12899(2) of this title,

which will participate in the Youthbuild program;

(3) identification and selection of a site for the Youthbuild

program;

(4) preliminary architectural and engineering work for the

Youthbuild program;

(5) identification and training of staff for the Youthbuild

program;

(6) planning for education, job training, and other services

that will be provided as part of the Youthbuild program;

(7) other planning, training, or technical assistance necessary

in advance of commencing the Youthbuild program; and

(8) 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, including a description of the applicant's past

experience with housing rehabilitation or construction and with

youth and youth education and employment training programs, and

its relationship with local unions and apprenticeship programs,

and other community groups;

(C) identification and description of potential sites for the

program and the construction or rehabilitation activities that

would be undertaken at such sites; potential methods for

identifying and recruiting youth participants; potential

educational and job training activities, work opportunities and

other services for participants; and potential coordination

with other Federal, State, and local housing and youth

education and employment training activities including

activities conducted by Indian tribes;

(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; 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 potential of the applicant for developing a successful

and affordable Youthbuild program;

(3) the need for the prospective program, as determined by the

degree of economic distress -

(A) of the community from which participants would be

recruited (such as poverty, youth unemployment, and number of

individuals who have dropped out of high school); and

(B) of the community in which the housing proposed to be

constructed or rehabilitated would be located (such as

incidence of homelessness, shortage of affordable housing, and

poverty); and

(4) 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.

-SOURCE-

(Pub. L. 101-625, title IV, Sec. 453, as added Pub. L. 102-550,

title I, Sec. 164, Oct. 28, 1992, 106 Stat. 3723.)

-REFTEXT-

REFERENCES IN TEXT

The Fair Housing Act, referred to in subsec. (c)(2)(E), is title

VIII of Pub. L. 90-284, Apr. 11, 1968, 82 Stat. 81, as amended,

which is classified principally to subchapter I (Sec. 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. 88-352, July 2, 1964, 78 Stat. 241, as amended. Title VI

of the Act is classified generally to subchapter V (Sec. 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. 94-135, Nov. 28, 1975, 89 Stat.

728, as amended, which is classified generally to chapter 76 (Sec.

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.

-End-

-CITE-

42 USC Sec. 12899c 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE

FAMILY HOMES

Part C - HOPE for Youth: Youthbuild

-HEAD-

Sec. 12899c. Implementation grants

-STATUTE-

(a) Grants

The Secretary is authorized to make implementation grants to

applicants for the purpose of carrying out Youthbuild programs

approved under this part.

(b) Eligible activities

Implementation grants may be used to carry out Youthbuild

programs, including the following activities:

(1) Architectural and engineering work.

(2) Acquisition, rehabilitation, acquisition and

rehabilitation, or construction of housing and related facilities

to be used for the purposes of providing homeownership under part

A and part B of this subchapter, residential housing for homeless

individuals, and low- and very low-income families, or

transitional housing for persons who are homeless, have

disabilities, are ill, are deinstitutionalized, or have other

special needs.

(3) Administrative costs of the applicant, which may not exceed

15 percent of the amount of assistance provided under this

section, or such higher percentage as the Secretary determines is

necessary to support capacity development by a private nonprofit

organization.

(4) Education and job training services and activities

including -

(A) work experience and skills training, coordinated, to the

maximum extent feasible, with preapprenticeship and

apprenticeship programs, in the construction and rehabilitation

activities described in subsection (b)(2) of this section;

(B) services and activities designed to meet the educational

needs of participants, including -

(i) basic skills instruction and remedial education;

(ii) bilingual education for individuals with

limited-English proficiency;

(iii) secondary education services and activities designed

to lead to the attainment of a high school diploma or its

equivalent; and

(iv) counseling and assistance in attaining post-secondary

education and required financial aid;

(C) counseling services and related activities;

(D) activities designed to develop employment and leadership

skills, including support for youth councils; and

(E) support services and need-based stipends necessary to

enable individuals to participate in the program and, for a

period not to exceed 12 months after completion of training, to

assist participants through support services in retaining

employment.

(5) Wage stipends and benefits provided to participants.

(6) Funding of operating expenses and replacement reserves of

the property covered by the Youthbuild program.

(7) Legal fees.

(8) Defraying costs for the ongoing training and technical

assistance needs of the recipient that are related to developing

and carrying out the Youthbuild program.

(c) 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 applicant and a statement of its

qualifications, including a description of the applicant's past

experience with housing rehabilitation or construction and with

youth and youth education and employment training programs, and

its relationship with local unions and apprenticeship programs,

and other community groups;

(C) a description of the proposed site for the program;

(D) a description of the educational and job training

activities, work opportunities, and other services that will be

provided to participants;

(E) a description of the proposed construction or

rehabilitation activities to be undertaken and the anticipated

schedule for carrying out such activities;

(F) a description of the manner in which eligible youths will

be recruited and selected, including a description of

arrangements which will be made with community-based

organizations, State and local educational agencies, including

agencies of Indian tribes, public assistance agencies, the

courts of jurisdiction for status and youth offenders, shelters

for homeless individuals and other agencies that serve homeless

youth, foster care agencies, and other appropriate public and

private agencies;

(G) a description of the special outreach efforts that will

be undertaken to recruit eligible young women (including young

women with dependent children);

(H) a description of how the proposed program will be

coordinated with other Federal, State, and local activities and

activities conducted by Indian tribes, including vocational,

adult and bilingual education programs, job training provided

with funds available under title I of the Workforce Investment

Act of 1998 [29 U.S.C. 2801 et seq.] and the Family Support Act

of 1988, and housing and community development programs,

including programs that receive assistance under section 5306

of this title;

(I) assurances that there will be a sufficient number of

adequately trained supervisory personnel in the program who

have attained the level of journeyman or its equivalent;

(J) a description of the applicant's relationship with local

building trade unions regarding their involvement in training,

and the relationship of the Youthbuild program with established

apprenticeship programs;

(K) a description of activities that will be undertaken to

develop the leadership skills of participants;

(L) a detailed budget and a description of the system of

fiscal controls and auditing and accountability procedures that

will be used to ensure fiscal soundness;

(M) a description of the commitments for any additional

resources to be made available to the program from the

applicant, from recipients of other Federal, State or local

housing and community development assistance who will sponsor

any part of the construction, rehabilitation, operation and

maintenance, or other housing and community development

activities undertaken as part of the program, or from other

Federal, State or local activities and activities conducted by

Indian tribes, including, but not limited to, vocational, adult

and bilingual education programs, and job training provided

with funds available under title I of the Workforce Investment

Act of 1998 [29 U.S.C. 2801 et seq.] and the Family Support Act

of 1988;

(N) identification and description of the financing proposed

for any -

(i) rehabilitation;

(ii) acquisition of the property; or

(iii) construction;

(O) identification and description of the entity that will

operate and manage the property;

(P) 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; and

(Q) 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 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 Youthbuild program;

(3) the potential for developing a successful Youthbuild

program;

(4) the need for the prospective project, as determined by the

degree of economic distress of the community from which

participants would be recruited (such as poverty, youth

unemployment, number of individuals who have dropped out of high

school) and of the community in which the housing proposed to be

constructed or rehabilitated would be located (such as incidence

of homelessness, shortage of affordable housing, poverty);

(5) the apparent commitment of the applicant to leadership

development, education, and training of participants;

(6) the inclusion of previously homeless tenants in the housing

provided;

(7) the commitment of other resources to the program by the

applicant and by recipients of other Federal, State or local

housing and community development assistance who will sponsor any

part of the construction, rehabilitation, operation and

maintenance, or other housing and community development

activities undertaken as part of the program, or by other

Federal, State or local activities and activities conducted by

Indian tribes, including, but not limited to, vocational, adult

and bilingual education programs, and job training provided with

funds available under title I of the Workforce Investment Act of

1998 [29 U.S.C. 2801 et seq.] and the Family Support Act of 1988;

and

(8) such other factors as the Secretary determines to be

appropriate for purposes of carrying out the program established

by this part in an effective and efficient manner.

(e) Priority for applicants who obtain housing money from other

sources

The Secretary shall give priority in the award of grants under

this section to applicants to the extent that they propose to

finance activities described in paragraphs (1), (2), and (6) of

subsection (b) of this section from funds provided from Federal,

State, local, or private sources other than assistance under this

part.

(f) Approval

The Secretary shall notify each applicant, not later than 4

months after the date of the submission of the application, whether

the application is approved or not approved.

(g) Combined planning and implementation grant application

procedure

The Secretary shall develop a procedure under which an applicant

may apply at the same time and in a single application for a

planning grant and an implementation grant, with receipt of the

implementation grant conditioned on successful completion of the

activities funded by the planning grant.

-SOURCE-

(Pub. L. 101-625, title IV, Sec. 454, as added Pub. L. 102-550,

title I, Sec. 164, Oct. 28, 1992, 106 Stat. 3725; amended Pub. L.

105-277, div. A, Sec. 101(f) [title VIII, Sec. 405(d)(43)(A),

(f)(34)], Oct. 21, 1998, 112 Stat. 2681-337, 2681-428, 2681-434.)

-REFTEXT-

REFERENCES IN TEXT

The Workforce Investment Act of 1998, referred to in subsecs.

(c)(2)(H), (M) and (d)(7), is Pub. L. 105-220, Aug. 7, 1998, 112

Stat. 936, as amended. Title I of the Act is classified principally

to chapter 30 (Sec. 2801 et seq.) of Title 29, Labor. For complete

classification of this Act to the Code, see Short Title note set

out under section 9201 of Title 20, Education, and Tables.

The Family Support Act of 1988, referred to in subsecs.

(c)(2)(H), (M) and (d)(7), is Pub. L. 100-485, Oct. 13, 1988, 102

Stat. 2343, as amended. For complete classification of this Act to

the Code, see Short Title of 1988 Amendment note under section 1305

of this title and Tables.

The Fair Housing Act, referred to in subsec. (c)(2)(Q), is title

VIII of Pub. L. 90-284, Apr. 11, 1968, 82 Stat. 81, as amended,

which is classified principally to subchapter I (Sec. 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)(Q),

is Pub. L. 88-352, July 2, 1964, 78 Stat. 241, as amended. Title VI

of the Act is classified generally to subchapter V (Sec. 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)(Q), is title III of Pub. L. 94-135, Nov. 28, 1975, 89 Stat.

728, as amended, which is classified generally to chapter 76 (Sec.

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.

-MISC1-

AMENDMENTS

1998 - Subsecs. (c)(2)(H), (M), (d)(7). Pub. L. 105-277, Sec.

101(f) [title VIII, Sec. 405(f)(34)], struck out "the Job Training

Partnership Act and" before "title I of the Workforce".

Pub. L. 105-277, Sec. 101(f) [title VIII, Sec. 405(d)(43)(A)],

substituted "the Job Training Partnership Act and title I of the

Workforce Investment Act of 1998" for "the Job Training Partnership

Act".

EFFECTIVE DATE OF 1998 AMENDMENT

Amendment by section 101(f) [title VIII, Sec. 405(d)(43)(A)] of

Pub. L. 105-277 effective Oct. 21, 1998, and amendment by section

101(f) [title VIII, Sec. 405(f)(34)] of Pub. L. 105-277 effective

July 1, 2000, see section 101(f) [title VIII, Sec. 405(g)(1),

(2)(B)] of Pub. L. 105-277, set out as a note under section 3502 of

Title 5, Government Organization and Employees.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 12899e of this title.

-End-

-CITE-

42 USC Sec. 12899d 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE

FAMILY HOMES

Part C - HOPE for Youth: Youthbuild

-HEAD-

Sec. 12899d. Youthbuild program requirements

-STATUTE-

(a) Residential rental housing

Each residential rental housing project receiving assistance

under this part shall meet the following requirements:

(1) Occupancy by low- and very low-income families

In the project -

(A) at least 90 percent of the units shall be occupied, or

available for occupancy, by individuals and families with

incomes less than 60 percent of the area median income,

adjusted for family size; and

(B) the remaining units shall be occupied, or available for

occupancy, by low-income families.

(2) Tenant protections

(A) Lease

The lease between a tenant and an owner of residential rental

housing assisted under this part shall be for not less than 1

year, unless otherwise mutually agreed to by 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 residential rental housing assisted

under this title (!1) 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 owner's service upon the tenant of

a written notice specifying the grounds for the action.

(C) Maintenance and replacement

The owner of residential rental housing assisted under this

part shall maintain the premises in compliance with all

applicable housing quality standards and local code

requirements.

(D) Tenant selection

The owner of residential rental housing assisted under this

part shall adopt written tenant selection policies and criteria

that -

(i) are consistent with the purpose of providing housing

for very low-income and low-income families and individuals;

(ii) are reasonably related to program eligibility and the

applicant's ability to perform the obligations of the lease;

(iii) give reasonable consideration to the housing needs of

families that would qualify for a preference under any system

of preferences established under section 1437d(c)(1) of this

title; and

(iv) provide for (I) the selection of tenants from a

written waiting list in the chronological order of their

application, to the extent practicable, and (II) for the

prompt notification in writing of any rejected applicant of

the grounds for any rejection.

(3) Limitation on rental payments

Tenants in each project shall not be required to pay rent in

excess of the amount provided under section 1437a(a) of this

title.

(4) Tenant participation plan

For each project owned by a nonprofit organization, the

organization shall provide a plan for and follow a program of

tenant participation in management decisions.

(5) Prohibition against discrimination

A unit in a project assisted under this part may not be refused

for leasing to a family holding tenant-based assistance under

section 1437f of this title because of the status of the

prospective tenant as a holder of such assistance.

(b) Transitional housing

Each transitional housing project receiving assistance under this

part shall adhere to the requirements regarding service delivery,

housing standards, and rent limitations applicable to comparable

housing receiving assistance under title IV of the McKinney-Vento

Homeless Assistance Act [42 U.S.C. 11361 et seq.].

(c) Limitations on profits for rental and transitional housing

(1) Monthly rental limitation

The aggregate monthly rental for each eligible project may not

exceed the operating costs of the project (including debt

service, management, adequate reserves, and other operating

costs) plus a 6 percent return on any equity investment of the

project owner.

(2) Profit limitations on partners

A nonprofit organization that receives assistance under this

part for a project shall agree to use any profit received from

the operation, sale, or other disposition of the project for the

purpose of providing housing for low- and moderate-income

families. Profit-motivated partners in a nonprofit partnership

may receive -

(A) not more than a 6 percent return on their equity

investment from project operations; and

(B) upon disposition of the project, not more than an amount

equal to their initial equity investment plus a return on that

investment equal to the increase in the Consumer Price Index

for the geographic location of the project since the time of

the initial investment of such partner in the project.

(d) Homeownership

Each homeownership project that receives assistance under this

part shall comply with the requirements of part A or part B of this

subchapter.

(e) Restrictions on conveyance

The ownership interest in a project that receives assistance

under this part may not be conveyed unless the instrument of

conveyance requires a subsequent owner to comply with the same

restrictions imposed upon the original owner.

(f) Conversion of transitional housing

The Secretary may waive the requirements of subsection (b) of

this section to permit the conversion of a transitional housing

project to a permanent housing project only if such housing would

meet the requirements for residential rental housing specified in

this section.

(g) Period of restrictions

A project that receives assistance under this part shall comply

with the requirements of this section for the remaining useful life

of the property.

-SOURCE-

(Pub. L. 101-625, title IV, Sec. 455, as added Pub. L. 102-550,

title I, Sec. 164, Oct. 28, 1992, 106 Stat. 3728; amended Pub. L.

105-276, title V, Sec. 514(a)(2)(B), Oct. 21, 1998, 112 Stat. 2547;

Pub. L. 106-400, Sec. 2, Oct. 30, 2000, 114 Stat. 1675.)

-REFTEXT-

REFERENCES IN TEXT

This title, referred to in subsec. (a)(2)(B), means title IV of

Pub. L. 101-625, known as the Homeownership and Opportunity Through

HOPE Act, and probably should have been "this subtitle", meaning

subtitle D of title IV of Pub. L. 101-625, as added by Pub. L.

102-550, which is classified generally to this part. For complete

classification of title IV of Pub. L. 101-625 to the Code, see

Short Title note set out under section 1437aaa of this title and

Tables.

The McKinney-Vento Homeless Assistance Act, referred to in

subsec. (b), is Pub. L. 100-77, July 22, 1987, 101 Stat. 482, as

amended. Title IV of the Act is classified principally to

subchapter IV (Sec. 11361 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.

-MISC1-

AMENDMENTS

2000 - Subsec. (b). Pub. L. 106-400 substituted "McKinney-Vento

Homeless Assistance Act" for "Stewart B. McKinney Homeless

Assistance Act".

1998 - Subsec. (a)(2)(D)(iii). Pub. L. 105-276 substituted "any

system of preferences established under section 1437d(c)(1) of this

title" for "section 1437d(c)(4)(A) of this title".

-FOOTNOTE-

(!1) See References in Text note below.

-End-

-CITE-

42 USC Sec. 12899e 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE

FAMILY HOMES

Part C - HOPE for Youth: Youthbuild

-HEAD-

Sec. 12899e. Additional program requirements

-STATUTE-

(a) Eligible participants

(1) In general

Except as provided in paragraph (2), an individual may

participate in a Youthbuild program receiving assistance under

this part only if such individual is -

(A) 16 to 24 years of age, inclusive;

(B) a very low-income individual or a member of a very

low-income family; and

(C) an individual who has dropped out of high school.

(2) Exception for individuals not meeting income or educational

need requirements

Not more than 25 percent of the participants in such program

may be individuals who do not meet the requirements of either

paragraphs (!1) (1)(B) or (C), but who have educational needs

despite attainment of a high school diploma or its equivalent.

(3) Participation limitation

Any eligible individual selected for full-time participation in

a Youthbuild program may be offered full-time participation for a

period of not less than 6 months and not more than 24 months.

(b) Minimum time devoted to educational services and activities

A Youthbuild program receiving assistance under this part shall

be structured so that 50 percent of the time spent by participants

in the program is devoted to educational services and activities,

such as those specified in subparagraphs (B) through (F) (!2) of

section 12899c(b)(4) of this title.

(c) Authority restriction

No provision of this part may be construed to authorize any

agency, officer, or employee of the United States to exercise any

direction, supervision, or control over the curriculum, program of

instruction, administration, or personnel of any educational

institution, school, or school system, or over the selection of

library resources, textbooks, or other printed or published

instructional materials by any educational institution or school

system.

(d) State and local standards

All educational programs and activities supported with funds

provided under this part shall be consistent with applicable State

and local educational standards. Standards and procedures with

respect to the awarding of academic credit and certifying

educational attainment in such programs shall be consistent with

applicable State and local educational standards.

(e) Wages, labor standards, and nondiscrimination

To the extent consistent with the provisions of this part,

sections 142, 143 and 167 of the Job Training Partnership Act (as

in effect on the day before August 7, 1998), relating to wages and

benefits, labor standards, and nondiscrimination, shall apply to

the programs conducted under this part as if such programs were

conducted under the Job Training Partnership Act (as in effect on

the day before August 7, 1998). This section may not be construed

to prevent a recipient of a grant under this part from using funds

from non-Federal sources to increase wages and benefits under such

programs, if appropriate.

-SOURCE-

(Pub. L. 101-625, title IV, Sec. 456, as added Pub. L. 102-550,

title I, Sec. 164, Oct. 28, 1992, 106 Stat. 3730; amended Pub. L.

105-277, div. A, Sec. 101(f) [title VIII, Sec. 405(d)(43)(B)], Oct.

21, 1998, 112 Stat. 2681-337, 2681-428.)

-REFTEXT-

REFERENCES IN TEXT

The Job Training Partnership Act, referred to in subsec. (e), is

Pub. L. 97-300, Oct. 13, 1982, 96 Stat. 1322, as amended, which was

classified generally to chapter 19 (Sec. 1501 et seq.) of Title 29,

Labor, prior to repeal by Pub. L. 105-220, title I, Sec. 199(b)(2),

(c)(2)(B), Aug. 7, 1998, 112 Stat. 1059, effective July 1, 2000.

Sections 142, 143, and 167 of the Act were classified to sections

1552, 1553, and 1577, respectively, of Title 29 prior to repeal.

For complete classification of this Act to the Code, see Tables.

-MISC1-

AMENDMENTS

1998 - Subsec. (e). Pub. L. 105-277 inserted "(as in effect on

the day before August 7, 1998)" after "the Job Training Partnership

Act" in two places.

-FOOTNOTE-

(!1) So in original. Probably should be "paragraph".

(!2) So in original. Section 12899c(b)(4) of this title does not

contain a subpar. (F).

-End-

-CITE-

42 USC Sec. 12899f 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE

FAMILY HOMES

Part C - HOPE for Youth: Youthbuild

-HEAD-

Sec. 12899f. Definitions

-STATUTE-

For purposes of this part:

(1) Adjusted income

The term "adjusted income" has the meaning given the term in

section 1437a(b) of this title.

(2) Applicant

The term "applicant" means a public or private nonprofit

agency, including -

(A) a community-based organization;

(B) an administrative entity designated under section

103(b)(1)(B) of the Job Training Partnership Act;

(C) a community action agency;

(D) a State and local housing development agency;

(E) a community development corporation;

(F) a State and local youth service and conservation corps;

and

(G) any other entity eligible to provide education and

employment training under other Federal employment training

programs.

(3) Community-based organization

The term "community-based organization" means a private

nonprofit organization that -

(A) maintains, through significant representation on the

organization's governing board or otherwise, accountability to

low-income community residents and, to the extent practicable,

low-income beneficiaries of programs receiving assistance under

this part; and

(B) has a history of serving the local community or

communities where a program receiving assistance under this

part is located.

(4) Homeless individual

The term "homeless individual" has the meaning given the term

in section 11302 of this title.

(5) Housing development agency

The term "housing development agency" means any agency of a

State or local government, or any private nonprofit organization

that is engaged in providing housing for homeless or low-income

families.

(6) Income

The term "income" has the meaning given the term in section

1437a(b) of this title.

(7) Indian tribe

The term "Indian tribe" has the same meaning given such term in

section 5302(a)(17) of this title.

(8) Individual who has dropped out of high school

The term "individual who has dropped out of high school" means

an individual who is neither attending any school nor subject to

a compulsory attendance law and who has not received a secondary

school diploma or a certificate of equivalency for such diploma.

(9) Institution of higher education

The term "institution of higher education" has the meaning

given the term in section 1001 of title 20.

(10) Limited-English proficiency

The term "limited-English proficiency" has the meaning given

the term in section 7601(8) (!1) of title 20.

(11) Low-income family

The term "low-income family" has the meaning given the term in

section 1437a(b) of this title.

(12) Offender

The term "offender" means any adult or juvenile with a record

of arrest or conviction for a criminal offense.

(13) Qualified nonprofit agency

The term "qualified public or private nonprofit agency" means

any nonprofit agency that has significant prior experience in the

operation of projects similar to the Youthbuild program

authorized under this part and that has the capacity to provide

effective technical assistance.

(14) Related facilities

The term "related facilities" includes cafeterias or dining

halls, community rooms or buildings, appropriate recreation

facilities, and other essential service facilities.

(15) Secretary

The term "Secretary" means the Secretary of Housing and Urban

Development.

(16) State

The term "State" means any of the several States, the District

of Columbia, the Commonwealth of Puerto Rico, the Commonwealth of

the Northern Mariana Islands, the Virgin Islands, Guam, American

Samoa, the Trust Territories of the Pacific Islands, or any other

territory or possession of the United States.

(17) Transitional housing

The term "transitional housing" means a project that has as its

purpose facilitating the movement of homeless individuals and

families to independent living within a reasonable amount of

time. Transitional housing includes housing primarily designed to

serve deinstitutionalized homeless individuals and other homeless

individuals with mental or physical disabilities and homeless

families with children.

(18) Very low-income family

The term "very low-income family" has the meaning given the

term in section 1437a(b) of this title.

(19) Youthbuild program

The term "Youthbuild program" means any program that receives

assistance under this part and provides disadvantaged youth with

opportunities for employment, education, leadership development,

and training in the construction or rehabilitation of housing for

homeless individuals and members of low- and very low-income

families.

-SOURCE-

(Pub. L. 101-625, title IV, Sec. 457, as added Pub. L. 102-550,

title I, Sec. 164, Oct. 28, 1992, 106 Stat. 3731; amended Pub. L.

103-382, title III, Sec. 394(d), Oct. 20, 1994, 108 Stat. 4027;

Pub. L. 105-244, title I, Sec. 102(a)(13)(M), Oct. 7, 1998, 112

Stat. 1621; Pub. L. 106-400, Sec. 2, Oct. 30, 2000, 114 Stat.

1675.)

-REFTEXT-

REFERENCES IN TEXT

Section 103(b)(1)(B) of the Job Training Partnership Act,

referred to in par. (2)(B), which was classified to section

1513(b)(1)(B) of Title 29, Labor, was repealed by Pub. L. 105-220,

title I, Sec. 199(b)(2), (c)(2)(B), Aug. 7, 1998, 112 Stat. 1059,

effective July 1, 2000. Pursuant to section 2940(b) of Title 29,

references to a provision of the Job Training Partnership Act,

effective Aug. 7, 1998, are deemed to refer to that provision or

the corresponding provision of the Workforce Investment Act of

1998, Pub. L. 105-220, Aug. 7, 1998, 112 Stat. 936, and effective

July 1, 2000, are deemed to refer to the corresponding provision of

the Workforce Investment Act of 1998. For complete classification

of the Workforce Investment Act of 1998 to the Code, see Short

Title note set out under section 9201 of Title 20, Education, and

Tables.

Section 7601(8) of title 20, referred to in par. (10), was in the

original section 7004(a) of the Elementary and Secondary Education

Act of 1965, and was translated as if it read section 7501(8) of

that Act to reflect the probable intent of Congress, because the

Elementary and Secondary Education Act of 1965 did not contain a

section 7004, but did contain a section 7501(8) which defined

limited English proficiency. The section was omitted in the general

amendment of title VII of the Elementary and Secondary Education

Act of 1965 by Pub. L. 107-110, title VII, Sec. 701, Jan. 8, 2002,

115 Stat. 1907.

-MISC1-

AMENDMENTS

2000 - Par. (4). Pub. L. 106-400 made technical amendment to

reference in original act which appears in text as reference to

section 11302 of this title.

1998 - Par. (9). Pub. L. 105-244 substituted "section 1001" for

"section 1141(a)".

1994 - Par. (10). Pub. L. 103-382 substituted "section 7601(8) of

title 20" for "section 3283 of title 20".

EFFECTIVE DATE OF 1998 AMENDMENT

Amendment by Pub. L. 105-244 effective Oct. 1, 1998, except as

otherwise provided in Pub. L. 105-244, see section 3 of Pub. L.

105-244, set out as a note under section 1001 of Title 20,

Education.

-TRANS-

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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 12899b of this title.

-FOOTNOTE-

(!1) See References in Text note below.

-End-

-CITE-

42 USC Sec. 12899g 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE

FAMILY HOMES

Part C - HOPE for Youth: Youthbuild

-HEAD-

Sec. 12899g. Management and technical assistance

-STATUTE-

(a) Secretary assistance

The Secretary may enter into contracts with a qualified public or

private nonprofit agency to provide assistance to the Secretary in

the management, supervision, and coordination of Youthbuild

programs receiving assistance under this part.

(b) Sponsor assistance

The Secretary shall enter into contracts with a qualified public

or private nonprofit agency to provide appropriate training,

information, and technical assistance to sponsors of programs

assisted under this part.

(c) Application preparation

Technical assistance may also be provided in the development of

program proposals and the preparation of applications for

assistance under this part to eligible entities which intend or

desire to submit such applications. Community-based organizations

shall be given first priority in the provision of such assistance.

(d) Reservation of funds

In each fiscal year, the Secretary shall reserve 5 percent of the

amounts available for activities under this part pursuant to

section 12870 of this title to carry out subsections (b) and (c) of

this section.

-SOURCE-

(Pub. L. 101-625, title IV, Sec. 458, as added Pub. L. 102-550,

title I, Sec. 164, Oct. 28, 1992, 106 Stat. 3733.)

-End-

-CITE-

42 USC Sec. 12899h 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE

FAMILY HOMES

Part C - HOPE for Youth: Youthbuild

-HEAD-

Sec. 12899h. Contracts

-STATUTE-

Each Youthbuild program shall carry out the services and

activities under this part directly or through arrangements or

under contracts with administrative entities designated under

section 103(b)(1)(B) of the Job Training Partnership Act, with

State and local educational agencies, institutions of higher

education, State and local housing development agencies, or with

other public agencies, including agencies of Indian tribes, and

private organizations.

-SOURCE-

(Pub. L. 101-625, title IV, Sec. 459, as added Pub. L. 102-550,

title I, Sec. 164, Oct. 28, 1992, 106 Stat. 3733.)

-REFTEXT-

REFERENCES IN TEXT

Section 103(b)(1)(B) of the Job Training Partnership Act,

referred to in text, which was classified to section 1513(b)(1)(B)

of Title 29, Labor, was repealed by Pub. L. 105-220, title I, Sec.

199(b)(2), (c)(2)(B), Aug. 7, 1998, 112 Stat. 1059, effective July

1, 2000. Pursuant to section 2940(b) of Title 29, references to a

provision of the Job Training Partnership Act, effective Aug. 7,

1998, are deemed to refer to that provision or the corresponding

provision of the Workforce Investment Act of 1998, Pub. L. 105-220,

Aug. 7, 1998, 112 Stat. 936, and effective July 1, 2000, are deemed

to refer to the corresponding provision of the Workforce Investment

Act of 1998. For complete classification of the Workforce

Investment Act of 1998 to the Code, see Short Title note set out

under section 9201 of Title 20, Education, and Tables.

-End-

-CITE-

42 USC Sec. 12899h-1 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE

FAMILY HOMES

Part C - HOPE for Youth: Youthbuild

-HEAD-

Sec. 12899h-1. Ineligibility of Indian tribes

-STATUTE-

Indian tribes, Indian housing authorities, and other agencies

primarily serving Indians or Indian areas shall not be eligible

applicants for amounts made available for assistance under this

part for fiscal year 1998 and fiscal years thereafter.

-SOURCE-

(Pub. L. 101-625, title IV, Sec. 460, as added Pub. L. 104-330,

title V, Sec. 504(a)(2), Oct. 26, 1996, 110 Stat. 4044; amended

Pub. L. 105-276, title V, Sec. 595(e)(15), Oct. 21, 1998, 112 Stat.

2659.)

-MISC1-

PRIOR PROVISIONS

A prior section 460 of Pub. L. 101-625 was renumbered section

461, and is classified to section 12899i of this title.

AMENDMENTS

1998 - Pub. L. 105-276 substituted "1998" for "1997".

EFFECTIVE DATE

Section effective Oct. 1, 1997, except as otherwise expressly

provided, see section 107 of Pub. L. 104-330, set out as a note

under section 4101 of Title 25, Indians.

Section 504(b) of Pub. L. 104-330 provided that: "The amendments

under subsection (a) [enacting this section] shall apply with

respect to amounts made available for assistance under subtitle D

of title II of the Cranston-Gonzalez National Affordable Housing

Act [42 U.S.C. 12899 et seq.] for fiscal year 1998 and fiscal years

thereafter."

-End-

-CITE-

42 USC Sec. 12899i 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE

FAMILY HOMES

Part C - HOPE for Youth: Youthbuild

-HEAD-

Sec. 12899i. Regulations

-STATUTE-

The Secretary shall issue any regulations necessary to carry out

this part.

-SOURCE-

(Pub. L. 101-625, title IV, Sec. 461, formerly Sec. 460, as added

Pub. L. 102-550, title I, Sec. 164, Oct. 28, 1992, 106 Stat. 3733;

renumbered Sec. 461, Pub. L. 104-330, title V, Sec. 504(a)(1), Oct.

26, 1996, 110 Stat. 4043.)

-End-