-CITE-

42 USC CHAPTER 130 - NATIONAL AFFORDABLE HOUSING 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

-HEAD-

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

-MISC1-

SUBCHAPTER I - GENERAL PROVISIONS AND POLICIES

Sec.

12701. National housing goal.

12702. Objective of national housing policy.

12703. Purposes of Cranston-Gonzalez National Affordable

Housing Act.

12704. Definitions.

12705. State and local housing strategies.

(a) In general.

(b) Contents.

(c) Approval.

(d) Coordination of State and local housing

strategies.

(e) Consultation with social service agencies.

(f) Barrier removal.

(g) Treatment of troubled public housing agencies.

12705a. Purposes of Removal of Regulatory Barriers to

Affordable Housing Act.

12705b. Definition of regulatory barriers to affordable

housing.

12705c. Grants for regulatory barrier removal strategies and

implementation.

(a) Funding.

(b) Grant authority.

(c) Repealed.

(d) Definitions.

(e) Application and selection.

(f) Selection of grantees.

(g) Coordination with clearinghouse.

(h) Reports to Secretary.

12705d. Regulatory barriers clearinghouse.

(a) Establishment.

(b) Functions.

(c) Organization.

(d) Timing.

12706. Certification.

12707. Citizen participation.

(a) In general.

(b) Notice and comment.

(c) Consideration of comments.

(d) Regulations.

12708. Compliance.

(a) Performance reports.

(b) Performance review by Secretary.

(c) Review by courts.

12709. Energy efficiency standards.

(a) Establishment.

(b) Model Energy Code.

(c) Revisions of Model Energy Code.

12710. Capacity study.

(a) In general.

(b) Report.

12711. Protection of State and local authority.

12712. 5-year energy efficiency plan.

(a) Establishment.

(b) Initial plan.

(c) Updates.

(d) Submission to Congress.

12713. Eligibility under first-time homebuyer programs.

(a) Eligibility of displaced homemakers and single

parents for Federal assistance for first-time

homebuyers.

(b) Definitions.

(c) Applicability.

12714. Repealed.

SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING

12721. Findings.

12722. Purposes.

12723. Coordinated Federal support for housing strategies.

12724. Authorization.

12725. Notice.

PART A - HOME INVESTMENT PARTNERSHIPS

12741. Authority.

12742. Eligible uses of investment.

(a) Housing uses.

(b) Investments.

(c) Administrative costs.

(d) Prohibited uses.

(e) Cost limits.

(f) Certification of compliance.

(g) Limitation on operating assistance.

12743. Development of model programs.

(a) In general.

(b) Adoption of programs.

(c) Part D programs.

12744. Income targeting.

12745. Qualification as affordable housing.

(a) Rental housing.

(b) Homeownership.

12746. Participation by States and local governments.

12747. Allocation of resources.

(a) In general.

(b) Formula allocation.

(c) Criteria for direct reallocation.

(d) Reallocations.

12748. HOME Investment Trust Funds.

(a) Establishment.

(b) Line of credit.

(c) Reductions.

(d) Certification.

(e) Investment within 15 days.

(f) No interest or fees.

(g) Expiration of right to draw funds.

(h) Administrative provision.

12749. Repayment of investment.

(a) In general.

(b) Assurance of repayment.

(c) Availability.

12750. Matching requirements.

(a) Contribution.

(b) Recognition.

(c) Form.

(d) Reduction of requirement.

12751. Private-public partnership.

12752. Distribution of assistance.

(a) Local.

(b) State.

12753. Penalties for misuse of funds.

12754. Limitation on jurisdictions under court order.

(a) In general.

(b) Remedial use of funds permitted.

12755. Tenant and participant protections.

(a) Lease.

(b) Termination of tenancy.

(c) Maintenance and replacement.

(d) Tenant selection.

12756. Monitoring of compliance.

(a) Enforceable agreements.

(b) Periodic monitoring.

(c) Special procedures for certain projects.

PART B - COMMUNITY HOUSING PARTNERSHIP

12771. Set-aside for community housing development

organizations.

(a) In general.

(b) Recapture and reuse.

(c) Direct reallocation criteria.

12772. Project-specific assistance to community housing

development organizations.

(a) In general.

(b) Project-specific technical assistance and site

control loans.

(c) Project-specific seed money loans.

12773. Housing education and organizational support.

(a) In general.

(b) Eligible activities.

(c) Delivery of assistance.

(d) Limitations.

(e) Single-State contractors.

(f) "Community land trust" defined.

12774. Other requirements.

(a) Tenant participation plan.

(b) Limitation on assistance.

(c) Adjustments of other assistance.

PART C - OTHER SUPPORT FOR STATE AND LOCAL HOUSING STRATEGIES

12781. Authority.

12782. Priorities for capacity development.

12783. Conditions of contracts.

(a) Eligible organizations.

(b) Contract terms.

12784. Research in housing affordability.

12785. REACH: asset recycling information dissemination.

(a) In general.

(b) Eligible properties.

PART D - SPECIFIED MODEL PROGRAMS

12801. General authority.

12802. Rental housing production.

(a) Repayable advances.

(b) Selection guidelines.

(c) Guidelines.

12803. Rental rehabilitation.

(a) In general.

(b) Amount of subsidy.

(c) Additional restrictions.

12804. Rehabilitation loans.

(a) In general.

(b) Condition of loans.

(c) Additional restrictions.

12805. Sweat equity model program.

(a) In general.

(b) Rehabilitation of properties.

(c) Homeownership opportunities through sweat

equity.

(d) Rental opportunities through sweat equity.

(e) "Self-help housing" defined.

(f) Additional restrictions.

12806. Home repair services grants for older and disabled

homeowners.

(a) In general.

(b) Eligible recipients.

(c) Permitted restrictions.

12807. Low-income housing conservation and efficiency grant

programs.

(a) In general.

(b) Activities.

12808. Second mortgage assistance for first-time homebuyers.

(a) In general.

(b) Homeownership counseling.

(c) Eligibility requirements.

(d) Payment terms.

(e) Security.

12809. Rehabilitation of State and local government in rem

properties.

(a) In general.

(b) Target.

12810. Cost-saving building technologies and construction

techniques.

(a) In general.

(b) Selection criteria.

(c) Guidelines.

(d) Report.

PART E - MORTGAGE CREDIT ENHANCEMENT

12821. Report on credit enhancement.

(a) In general.

(b) Report.

PART F - GENERAL PROVISIONS

12831. Equal opportunity.

(a) Solicitation of contracts.

(b) Report to Congress.

12832. Nondiscrimination.

12833. Audits by Comptroller General.

(a) Audits of HOME Investment Partnerships program.

(b) Audits of recipients.

12834. Uniform recordkeeping and reports to Congress.

(a) Uniform requirements.

(b) Omitted.

12835. Citizen participation.

12836. Labor.

(a) In general.

(b) Waiver.

12837. Interstate agreements.

12838. Environmental review.

(a) In general.

(b) Procedure.

(c) Certification.

(d) Assistance to units of general local government

from a State.

12839. Termination of existing housing programs.

(a) In general.

(b) Repeals.

(c) Disposition of repayments.

12840. Suspension of requirements for disaster areas.

SUBCHAPTER III - NATIONAL HOMEOWNERSHIP TRUST DEMONSTRATION

12851. National Homeownership Trust.

(a) Establishment.

(b) Board of Directors.

(c) Powers of Trust.

(d) Travel and per diem.

(e) Director and staff.

12852. Assistance for first-time homebuyers.

(a) In general.

(b) Eligibility requirements.

(c) Terms of assistance.

(d) Allocation formula.

(e) Assistance in connection with housing financed

with mortgage revenue bonds.

12853. National Homeownership Trust Fund.

(a) Establishment.

(b) Assets.

(c) Use of amounts.

(d) Investment of excess amounts.

(e) Demonstration programs.

12854. Definitions.

12855. Regulations.

12856. Report.

12857. Authorization of appropriations.

12858. Transition.

(a) Authority of Secretary.

(b) Applicability of Trust provisions.

(c) Certification of Fund to Treasury.

12859. Termination.

SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE

FAMILY HOMES

12870. Authorization of appropriations.

(a) Fiscal year 1993.

(b) Fiscal year 1994.

(c) Technical assistance.

PART A - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY UNITS

12871. Program authority.

(a) In general.

(b) Authority to reserve housing assistance.

12872. Planning grants.

(a) Grants.

(b) Eligible activities.

(c) Application.

(d) Selection criteria.

12873. Implementation grants.

(a) Grants.

(b) Eligible activities.

(c) Matching funding.

(d) Application.

(d) Selection criteria.

(e) Approval.

12874. Homeownership program requirements.

(a) In general.

(b) Affordability.

(c) Plan.

(d) Acquisition and rehabilitation limitation.

(e) Financing.

(f) Housing quality standards.

(g) Protection of nonpurchasing families.

12875. Other program requirements.

(a) Preferences.

(b) Cost limitations.

(c) Use of proceeds from sales to eligible

families.

(d) Restrictions on resale by homeowners.

(e) Third party rights.

(f) Dollar limitation on economic development

activities.

(g) Timely homeownership.

(h) Records and audit of recipients of assistance.

(i) Certain entities not eligible.

12876. Definitions.

12877. Exemption.

12878. Limitation on selection criteria.

12879. Implementation.

12880. Report.

PART B - HOPE FOR HOMEOWNERSHIP OF SINGLE FAMILY HOMES

12891. Program authority.

12892. Planning grants.

(a) Grants.

(b) Eligible activities.

(c) Application.

(d) Selection criteria.

12893. Implementation grants.

(a) Grants.

(b) Eligible activities.

(c) Matching funding.

(d) Application.

(e) Selection criteria.

(f) Approval.

12894. Homeownership program requirements.

(a) In general.

(b) Affordability.

(c) Eligible property.

(d) Plan.

(e) Housing quality standards.

(f) Preference for acquisition of vacant units.

12895. Other program requirements.

(a) Cost limitations.

(b) Use of proceeds from sales to eligible

families.

(c) Restrictions on resale by homeowners.

(d) Third party rights.

(e) Protection of nonpurchasing families.

(h) Records and audit of recipients of assistance.

12896. Definitions.

12897. Limitation on selection criteria.

12898. Implementation.

12898a. Enterprise zone homeownership opportunity grants.

(a) Statement of purpose.

(b) Definitions.

(c) Assistance to nonprofit organizations.

(d) Eligible uses of assistance.

(e) Program requirements.

(f) Terms and conditions of assistance.

(g) Program selection criteria.

(h) Regulations.

(i) Funding.

PART C - HOPE FOR YOUTH: YOUTHBUILD

12899. Statement of purpose.

12899a. Program authority.

12899b. Planning grants.

(a) Grants.

(b) Eligible activities.

(c) Application.

(d) Selection criteria.

12899c. Implementation grants.

(a) Grants.

(b) Eligible activities.

(c) Application.

(d) Selection criteria.

(e) Priority for applicants who obtain housing

money from other sources.

(f) Approval.

(g) Combined planning and implementation grant

application procedure.

12899d. Youthbuild program requirements.

(a) Residential rental housing.

(b) Transitional housing.

(c) Limitations on profits for rental and

transitional housing.

(d) Homeownership.

(e) Restrictions on conveyance.

(f) Conversion of transitional housing.

(g) Period of restrictions.

12899e. Additional program requirements.

(a) Eligible participants.

(b) Minimum time devoted to educational services

and activities.

(c) Authority restriction.

(d) State and local standards.

(e) Wages, labor standards, and nondiscrimination.

12899f. Definitions.

12899g. Management and technical assistance.

(a) Secretary assistance.

(b) Sponsor assistance.

(c) Application preparation.

(d) Reservation of funds.

12899h. Contracts.

12899h-1. Ineligibility of Indian tribes.

12899i. Regulations.

-SECREF-

CHAPTER REFERRED TO IN OTHER SECTIONS

This chapter is referred to in title 12 section 1831q.

-End-

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42 USC SUBCHAPTER I - GENERAL PROVISIONS AND POLICIES 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER I - GENERAL PROVISIONS AND POLICIES

-HEAD-

SUBCHAPTER I - GENERAL PROVISIONS AND POLICIES

-SECREF-

SUBCHAPTER REFERRED TO IN OTHER SECTIONS

This subchapter is referred to in sections 1437c-1, 1437u of this

title.

-End-

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42 USC Sec. 12701 01/06/03

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TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER I - GENERAL PROVISIONS AND POLICIES

-HEAD-

Sec. 12701. National housing goal

-STATUTE-

The Congress affirms the national goal that every American family

be able to afford a decent home in a suitable environment.

-SOURCE-

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

4085.)

-MISC1-

SHORT TITLE OF 2000 AMENDMENT

Pub. L. 106-569, title I, Sec. 101, Dec. 27, 2000, 114 Stat.

2946, provided that: "This title [amending sections 5307, 12705c,

and 12705d of this title] may be cited as the 'Housing

Affordability Barrier Removal Act of 2000'."

SHORT TITLE

Section 1(a) of Pub. L. 101-625 provided that: "This Act [see

Tables for classification] may be cited as the 'Cranston-Gonzalez

National Affordable Housing Act'."

Section 201 of title II of Pub. L. 101-625 provided that: "This

title [enacting subchapter II of this chapter, amending section

1437f of this title, and repealing sections 1437o and 1452b of this

title, section 1706e of Title 12, Banks and Banking, and provisions

set out as a note under section 1715l of Title 12] may be cited as

the 'HOME Investment Partnerships Act'."

Section 301 of Pub. L. 101-625 provided that: "This subtitle

[subtitle A (Secs. 301-310) of title III of Pub. L. 101-625,

enacting subchapter III of this chapter] may be cited as the

'National Homeownership Trust Act'."

MILLENNIAL HOUSING COMMISSION

Pub. L. 107-73, title II, Nov. 26, 2001, 115 Stat. 671, provided

in part: "That $1,500,000 shall be for necessary expenses of the

Millennial Housing Commission, as authorized by section 206 of

Public Law 106-74 [set out below], with the final report due no

later than May 30, 2002 and a termination date of August 30, 2002,

notwithstanding section 206(f) and (g) of Public Law 106-74".

Pub. L. 106-74, title II, Sec. 206, Oct. 20, 1999, 113 Stat.

1070, as amended by Pub. L. 106-554, Sec. 1(a)(4) [div. B, title X,

Sec. 1001], Dec. 21, 2000, 114 Stat. 2763, 2763A-310, provided

that:

"(a) Establishment. - There is hereby established a commission to

be known as the Millennial Housing Commission (in this section

referred to as the 'Commission').

"(b) Study. - The duty of the Commission shall be to conduct a

study that examines, analyzes, and explores -

"(1) the importance of housing, particularly affordable housing

which includes housing for the elderly, to the infrastructure of

the United States;

"(2) the various possible methods for increasing the role of

the private sector in providing affordable housing in the United

States, including the effectiveness and efficiency of such

methods; and

"(3) whether the existing programs of the Department of Housing

and Urban Development work in conjunction with one another to

provide better housing opportunities for families, neighborhoods,

and communities, and how such programs can be improved with

respect to such purpose.

"(c) Membership. -

"(1) Number and Appointment. - The Commission shall be composed

of 22 members, appointed not later than January 1, 2000, as

follows:

"(A) Two co-chairpersons appointed by -

"(i) one co-chairperson appointed by a committee consisting

of the chairmen of the Subcommittees on the Departments of

Veterans Affairs and Housing and Urban Development, and

Independent Agencies of the Committees on Appropriations of

the House of Representatives and the Senate, and the chairman

of the Subcommittee on Housing and Community Opportunities of

the House of Representatives and the chairman of the

Subcommittee on Housing and Transportation of the Senate; and

"(ii) one co-chairperson appointed by a committee

consisting of the ranking minority members of the

Subcommittees on the Departments of Veterans Affairs and

Housing and Urban Development, and Independent Agencies of

the Committees on Appropriations of the House of

Representatives and the Senate, and the ranking minority

member of the Subcommittee on Housing and Community

Opportunities of the House of Representatives and the ranking

minority member of the Subcommittee on Housing and

Transportation of the Senate.

"(B) Ten members appointed by the Chairman and Ranking

Minority Member of the Committee on Appropriations of the House

of Representatives and the Chairman and Ranking Minority Member

of the Committee on Banking and Financial Services [now

Committee on Financial Services] of the House of

Representatives.

"(C) Ten members appointed by the Chairman and Ranking

Minority Member of the Committee on Appropriations of the

Senate and the Chairman and Ranking Minority Member of the

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

"(2) Qualifications. - Appointees should have proven expertise

in directing, assemblying, or applying capital resources from a

variety of sources to the successful development of affordable

housing or the revitalization of communities, including economic

and job development.

"(3) Vacancies. - Any vacancy on the Commission shall not

affect its powers and shall be filled in the manner in which the

original appointment was made.

"(4) Chairpersons. - The members appointed pursuant to

paragraph (1)(A) shall serve as co-chairpersons of the

Commission.

"(5) Prohibition of pay. - Members of the Commission shall

serve without pay.

"(6) Travel expenses. - Each member of the Commission shall

receive travel expenses, including per diem in lieu of

subsistence, in accordance with sections 5702 and 5703 of title

5, United States Code.

"(7) Quorum. - A majority of the members of the Commission

shall constitute a quorum but a lesser number may hold hearings.

"(8) Meetings. - The Commission shall meet at the call of the

Chairpersons.

"(d) Director and Staff. -

"(1) Director. - The Commission shall have a Director who shall

be appointed by the Chairperson. The Director shall be paid at a

rate not to exceed the rate of basic pay payable for level III of

the Executive Schedule.

"(2) Staff. - The Commission may appoint personnel as

appropriate. The staff of the Commission shall be appointed

subject to the provisions of title 5, United States Code,

governing appointments in the competitive service, and shall be

paid in accordance with the provisions of chapter 51 and

subchapter III of chapter 53 of that title relating to

classification and General Schedule pay rates.

"(3) Experts and consultants. - The Commission may procure

temporary and intermittent services under section 3109(b) of

title 5, United States Code, but at rates for individuals not to

exceed the daily equivalent of the maximum annual rate of basic

pay payable for the General Schedule.

"(4) Staff of federal agencies. - Upon request of the

Commission, the head of any Federal department or agency may

detail, on a non-reimbursable basis, any of the personnel of that

department or agency to the Commission to assist it in carrying

out its duties under this Act.

"(e) Powers. -

"(1) Hearings and sessions. - The Commission may, for the

purpose of carrying out this section, hold hearings, sit and act

at times and places, take testimony, and receive evidence as the

Commission considers appropriate.

"(2) Powers of members and agents. - Any member or agent of the

Commission may, if authorized by the Commission, take any action

which the Commission is authorized to take by this section.

"(3) Obtaining official data. - The Commission may secure

directly from any department or agency of the United States

information necessary to enable it to carry out this Act. Upon

request of the Chairpersons of the Commission, the head of that

department or agency shall furnish that information to the

Commission.

"(4) Gifts, bequests, and devises. - The Commission may accept,

use, and dispose of gifts, bequests, or devises of services or

property, both real and personal, for the purpose of aiding or

facilitating the work of the Commission. Gifts, bequests, or

devises of money and proceeds from sales of other property

received as gifts, bequests, or devises shall be deposited in the

Treasury and shall be available for disbursement upon order of

the Commission.

"(5) Mails. - The Commission may use the United States mails in

the same manner and under the same conditions as other

departments and agencies of the United States.

"(6) Administrative support services. - Upon the request of the

Commission, the Administrator of General Services shall provide

to the Commission, on a reimbursable basis, the administrative

support services necessary for the Commission to carry out its

responsibilities under this section.

"(7) Contract Authority. - The Commission may contract with and

compensate Government and private agencies or persons for

services, without regard to section 3709 of the Revised Statutes

(41 U.S.C. 5).

"(f) Report. - The Commission shall submit to the Committees on

Appropriations and Banking and Financial Services [now Committee on

Financial Services] of the House of Representatives and the

Committees on Appropriations and Banking, Housing, and Urban

Affairs of the Senate a final report not later than March 1, 2002.

The report shall contain a detailed statement of the findings and

conclusions of the Commission with respect to the study conducted

under subsection (b), together with its recommendations for

legislation, administrative actions, and any other actions the

Commission considers appropriate.

"(g) Termination. - The Commission shall terminate on June 30,

2002. Section 14(a)(2)(B) of the Federal Advisory Committee Act (5

U.S.C. App.; relating to the termination of advisory committees)

shall not apply to the Commission."

COMMISSION ON AFFORDABLE HOUSING AND HEALTH FACILITY NEEDS FOR

SENIORS IN THE 21ST CENTURY

Pub. L. 107-73, title II, Nov. 26, 2001, 115 Stat. 671, provided

in part: "That $1,000,000 shall be for necessary expenses of the

commission established under section 525 of the Preserving

Affordable Housing for Senior Citizens and Families in the 21st

Century Act [Pub. L. 106-74, set out below], with the final report

due no later than June 30, 2002 and a termination date of September

30, 2002, notwithstanding section 525(f) and (g) of Public Law

106-74".

Pub. L. 106-74, title V, Sec. 525, Oct. 20, 1999, 113 Stat. 1106,

as amended by Pub. L. 106-377, Sec. 1(a)(1) [title II, Sec. 230],

Oct. 27, 2000, 114 Stat. 1441, 1441A-31, provided that:

"(a) Establishment. - There is hereby established a commission to

be known as the Commission on Affordable Housing and Health

Facility Needs for Seniors in the 21st Century (in this section

referred to as the 'Commission'.

"(b) Study. - The duty of the Commission shall be to conduct a

study that -

"(1) compiles and interprets information regarding the expected

increase in the population of persons 62 years of age or older,

particularly information regarding distribution of income levels,

homeownership and home equity rates, and degree or extent of

health and independence of living;

"(2) provides an estimate of the future needs of seniors for

affordable housing and assisted living and health care

facilities;

"(3) provides a comparison of estimate of such future needs

with an estimate of the housing and facilities expected to be

provided under existing public programs, and identifies possible

actions or initiatives that may assist in providing affordable

housing and assisted living and health care facilities to meet

such expected needs;

"(4) identifies and analyzes methods of encouraging increased

private sector participation, investment, and capital formation

in affordable housing and assisted living and health care

facilities for seniors through partnerships between public and

private entities and other creative strategies;

"(5) analyzes the costs and benefits of comprehensive

aging-in-place strategies, taking into consideration physical and

mental well-being and the importance of coordination between

shelter and supportive services;

"(6) identifies and analyzes methods of promoting a more

comprehensive approach to dealing with housing and supportive

service issues involved in aging and the multiple governmental

agencies involved in such issues, including the Department of

Housing and Urban Development and the Department of Health and

Human Services; and

"(7) examines how to establish intergenerational learning and

care centers and living arrangements, in particular to facilitate

appropriate environments for families consisting only of children

and a grandparent or grandparents who are the head of the

household.

"(c) Membership. -

"(1) Number and Appointment. - The Commission shall be composed

of 14 members, appointed not later than January 1, 2000, as

follows:

"(A) Two co-chairpersons, of whom -

"(i) one co-chairperson shall be appointed by a committee

consisting of the chairman of the Subcommittee on Housing and

Community Opportunities of the House of Representatives and

the chairman of the Subcommittee on Housing and

Transportation of the Senate, and the chairmen of the

Subcommittees on the Departments of Veterans Affairs and

Housing and Urban Development, and Independent Agencies of

the Committees on Appropriations of the House of

Representatives and the Senate; and

"(ii) one co-chairperson shall be appointed by a committee

consisting of the ranking minority member of the Subcommittee

on Housing and Community Opportunities of the House of

Representatives and the ranking minority member of the

Subcommittee on Housing and Transportation of the Senate, and

the ranking minority members of the Subcommittees on the

Departments of Veterans Affairs and Housing and Urban

Development, and Independent Agencies of the Committees on

Appropriations of the House of Representatives and the

Senate.

"(B) Six members appointed by the Chairman and Ranking

Minority Member of the Committee on Banking and Financial

Services [now Committee on Financial Services] of the House of

Representatives and the Chairman and Ranking Minority Member of

the Committee on Appropriations of the House of

Representatives.

"(C) Six members appointed by the Chairman and Ranking

Minority Member of the Committee on Banking, Housing, and Urban

Affairs of the Senate and the Chairman and Ranking Minority

Member of the Committee on Appropriations of the Senate.

"(2) Qualifications. - Appointees should have proven expertise

in directing, assembling, or applying capital resources from a

variety of sources to the successful development of affordable

housing, assisted living facilities, or health care facilities.

"(3) Vacancies. - Any vacancy on the Commission shall not

affect its powers and shall be filled in the manner in which the

original appointment was made.

"(4) Chairpersons. - The members appointed pursuant to

paragraph (1)(A) shall serve as co-chairpersons of the

Commission.

"(5) Prohibition of pay. - Members of the Commission shall

serve without pay.

"(6) Travel expenses. - Each member of the Commission shall

receive travel expenses, including per diem in lieu of

subsistence, in accordance with sections 5702 and 5703 of title

5, United States Code.

"(7) Quorum. - A majority of the members of the Commission

shall constitute a quorum but a lesser number may hold hearings.

"(8) Meetings. - The Commission shall meet at the call of the

Chairpersons.

"(d) Director and Staff. -

"(1) Director. - The Commission shall have a Director who shall

be appointed by the Chairperson. The Director shall be paid at a

rate not to exceed the rate of basic pay payable for level V of

the Executive Schedule.

"(2) Staff. - The Commission may appoint personnel as

appropriate. The staff of the Commission shall be appointed

subject to the provisions of title 5, United States Code,

governing appointments in the competitive service, and shall be

paid in accordance with the provisions of chapter 51 and

subchapter III of chapter 53 of that title relating to

classification and General Schedule pay rates.

"(3) Experts and consultants. - The Commission may procure

temporary and intermittent services under section 3109(b) of

title 5, United States Code, but at rates for individuals not to

exceed the daily equivalent of the maximum annual rate of basic

pay payable for the General Schedule.

"(4) Staff of federal agencies. - Upon request of the

Commission, the head of any Federal department or agency may

detail, on a reimbursable basis, any of the personnel of that

department or agency to the Commission to assist it in carrying

out its duties under this Act.

"(e) Powers. -

"(1) Hearings and sessions. - The Commission may, for the

purpose of carrying out this section, hold hearings, sit and act

at times and places, take testimony, and receive evidence as the

Commission considers appropriate.

"(2) Powers of members and agents. - Any member or agent of the

Commission may, if authorized by the Commission, take any action

which the Commission is authorized to take by this section.

"(3) Obtaining official data. - The Commission may secure

directly from any department or agency of the United States

information necessary to enable it to carry out this Act. Upon

request of the Chairpersons of the Commission, the head of that

department or agency shall furnish that information to the

Commission.

"(4) Gifts, bequests, and devises. - The Commission may accept,

use, and dispose of gifts, bequests, or devises of services or

property, both real and personal, for the purpose of aiding or

facilitating the work of the Commission. Gifts, bequests, or

devises of money and proceeds from sales of other property

received as gifts, bequests, or devises shall be deposited in the

Treasury and shall be available for disbursement upon order of

the Commission.

"(5) Mails. - The Commission may use the United States mails in

the same manner and under the same conditions as other

departments and agencies of the United States.

"(6) Administrative support services. - Upon the request of the

Commission, the Administrator of General Services shall provide

to the Commission, on a reimbursable basis, the administrative

support services necessary for the Commission to carry out its

responsibilities under this section.

"(7) Contract authority. - The Commission may contract with and

compensate Government and private agencies or persons for

services, without regard to section 3709 of the Revised Statutes

(41 U.S.C. 5).

"(f) Report. - The Commission shall submit to the Committees on

Banking and Financial Services [now Committee on Financial

Services] and Appropriations of the House of Representatives and

the Committees on Banking, Housing, and Urban Affairs and

Appropriations of the Senate, a final report not later than

December 31, 2001. The report shall contain a detailed statement of

the findings and conclusions of the Commission with respect to the

study conducted under subsection (b), together with its

recommendations for legislation, administrative actions, and any

other actions the Commission considers appropriate.

"(g) Termination. - The Commission shall terminate on June 30,

2002. Section 14(a)(2)(B) of the Federal Advisory Committee Act (5

U.S.C. App.; relating to the termination of advisory committees)

shall not apply to the Commission."

-End-

-CITE-

42 USC Sec. 12702 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER I - GENERAL PROVISIONS AND POLICIES

-HEAD-

Sec. 12702. Objective of national housing policy

-STATUTE-

The objective of national housing policy shall be to reaffirm the

long-established national commitment to decent, safe, and sanitary

housing for every American by strengthening a nationwide

partnership of public and private institutions able -

(1) to ensure that every resident of the United States has

access to decent shelter or assistance in avoiding homelessness;

(2) to increase the Nation's supply of decent housing that is

affordable to low-income and moderate-income families and

accessible to job opportunities;

(3) to improve housing opportunities for all residents of the

United States, particularly members of disadvantaged minorities,

on a nondiscriminatory basis;

(4) to help make neighborhoods safe and livable;

(5) to expand opportunities for homeownership;

(6) to provide every American community with a reliable,

readily available supply of mortgage finance at the lowest

possible interest rates; and

(7) to encourage tenant empowerment and reduce generational

poverty in federally assisted and public housing by improving the

means by which self-sufficiency may be achieved.

-SOURCE-

(Pub. L. 101-625, title I, Sec. 102, Nov. 28, 1990, 104 Stat.

4085.)

-End-

-CITE-

42 USC Sec. 12703 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER I - GENERAL PROVISIONS AND POLICIES

-HEAD-

Sec. 12703. Purposes of Cranston-Gonzalez National Affordable

Housing Act

-STATUTE-

The purposes of this Act are -

(1) to help families not owning a home to save for a down

payment for the purchase of a home;

(2) to retain wherever feasible as housing affordable to

low-income families those dwelling units produced for such

purpose with Federal assistance;

(3) to extend and strengthen partnerships among all levels of

government and the private sector, including for-profit and

nonprofit organizations, in the production and operation of

housing affordable to low-income and moderate-income families;

(4) to expand and improve Federal rental assistance for very

low-income families; and

(5) to increase the supply of supportive housing, which

combines structural features and services needed to enable

persons with special needs to live with dignity and independence.

-SOURCE-

(Pub. L. 101-625, title I, Sec. 103, Nov. 28, 1990, 104 Stat.

4085.)

-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.

-End-

-CITE-

42 USC Sec. 12704 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER I - GENERAL PROVISIONS AND POLICIES

-HEAD-

Sec. 12704. Definitions

-STATUTE-

As used in this subchapter and in subchapter II of this chapter:

(1) The term "unit of general local government" means a city,

town, township, county, parish, village, or other general purpose

political subdivision of a State; the Federated States of

Micronesia and Palau, the Marshall Islands, or a general purpose

political subdivision thereof; a consortium of such political

subdivisions recognized by the Secretary in accordance with

section 12746(2) of this title; and any agency or instrumentality

thereof that is established pursuant to legislation and

designated by the chief executive to act on behalf of the

jurisdiction with regard to provisions of this Act.

(2) The term "State" means any State of the United States, the

District of Columbia, the Commonwealth of Puerto Rico, or any

agency or instrumentality thereof that is established pursuant to

legislation and designated by the chief executive officer to act

on behalf of the State with regard to the provisions of this Act.

(3) The term "jurisdiction" means a State or unit of general

local government.

(4) The term "participating jurisdiction" means any State or

unit of general local government that has been so designated in

accordance with section 12746 of this title.

(5) The term "nonprofit organization" means any private,

nonprofit organization (including a State or locally chartered,

nonprofit organization) that -

(A) is organized under State or local laws,

(B) has no part of its net earnings inuring to the benefit of

any member, founder, contributor, or individual,

(C) complies with standards of financial accountability

acceptable to the Secretary, and

(D) has among its purposes significant activities related to

the provision of decent housing that is affordable to

low-income and moderate-income persons.

(6) The term "community housing development organization" means

a nonprofit organization as defined in paragraph (5), that -

(A) has among its purposes the provision of decent housing

that is affordable to low-income and moderate-income persons;

(B) maintains, through significant representation on the

organization's governing board and otherwise, accountability to

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

low-income beneficiaries with regard to decisions on the

design, siting, development, and management of affordable

housing;

(C) has a demonstrated capacity for carrying out activities

assisted under this Act; and

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

communities within which housing to be assisted under this Act

is to be located.

In the case of an organization serving more than one county, the

Secretary may not require that such organization, to be

considered a community housing development organization for

purposes of this Act, include as members on the organization's

governing board low-income persons residing in each county

served.

(7) The term "government-sponsored mortgage finance

corporations" means the Federal National Mortgage Association,

the Federal Home Loan Mortgage Corporation, and the Federal

Agricultural Mortgage Corporation.

(8) The term "housing" includes manufactured housing and

manufactured housing lots and elder cottage housing opportunity

units that are small, free-standing, barrier-free,

energy-efficient, removable, and designed to be installed

adjacent to existing 1- to 4-family dwellings.

(9) The term "very low-income families" means low-income

families whose incomes do not exceed 50 percent of the median

family income for the area, as determined by the Secretary with

adjustments for smaller and larger families, except that the

Secretary may establish income ceilings higher or lower than 50

percent of the median for the area on the basis of the

Secretary's findings that such variations are necessary because

of prevailing levels of construction costs or fair market rents,

or unusually high or low family incomes.

(10) The term "low-income families" means families whose

incomes do not exceed 80 percent of the median income for the

area, as determined by the Secretary with adjustments for smaller

and larger families, except that the Secretary may establish

income ceilings higher or lower than 80 percent of the median for

the area on the basis of the Secretary's findings that such

variations are necessary because of prevailing levels of

construction costs or fair market rents, or unusually high or low

family incomes.

(11) The term "families" has the same meaning given that term

by section 1437a of this title.

(12) The term "security" has the same meaning as in section 77b

of title 15.

(13) The term "displaced homemaker" means an individual who -

(A) is an adult;

(B) has not worked full-time full-year in the labor force for

a number of years but has, during such years, worked primarily

without remuneration to care for the home and family; and

(C) is unemployed or underemployed and is experiencing

difficulty in obtaining or upgrading employment.

(14) The term "first-time homebuyer" means an individual and

his or her spouse who have not owned a home during the 3-year

period prior to purchase of a home with assistance under

subchapter II of this chapter, except that -

(A) any individual who is a displaced homemaker may not be

excluded from consideration as a first-time homebuyer under

this paragraph on the basis that the individual, while a

homemaker, owned a home with his or her spouse or resided in a

home owned by the spouse;

(B) any individual who is a single parent may not be excluded

from consideration as a first-time homebuyer under this

paragraph on the basis that the individual, while married,

owned a home with his or her spouse or resided in a home owned

by the spouse; and

(C) an individual shall not be excluded from consideration as

a first-time homebuyer under this paragraph on the basis that

the individual owns or owned, as a principal residence during

such 3-year period, a dwelling unit whose structure is -

(i) not permanently affixed to a permanent foundation in

accordance with local or other applicable regulations, or

(ii) not in compliance with State, local, or model building

codes, or other applicable codes, and cannot be brought into

compliance with such codes for less than the cost of

constructing a permanent structure.

(15) The term "single parent" means an individual who -

(A) is unmarried or legally separated from a spouse; and

(B)(i) has 1 or more minor children for whom the individual

has custody or joint custody; or

(ii) is pregnant.

(16) The term "Secretary" means the Secretary of Housing and

Urban Development, unless otherwise specified in this Act.

(17) The term "substantial rehabilitation" means the

rehabilitation of residential property at an average cost in

excess of $25,000 per dwelling unit.

(18) The term "public housing agency" has the meaning given the

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

(19) The term "metropolitan city" has the meaning given the

term in section 5302(a)(4) of this title.

(20) The term "urban county" has the meaning given the term in

section 5302(a)(6) of this title.

(21) The term "certification" means a written assertion, based

on supporting evidence, which shall be kept available for

inspection by the Secretary, the Inspector General and the

public, which assertion shall be deemed to be accurate for

purposes of this Act, unless the Secretary determines otherwise

after inspecting the evidence and providing due notice and

opportunity for comment.

(23) (!1) The term "to demonstrate to the Secretary" means to

submit to the Secretary a written assertion together with

supporting evidence that, in the determination of the Secretary,

supports the accuracy of the assertion.

(24) (!2) The term "insular area" means any of the following:

Guam, the Northern Mariana Islands, the Virgin Islands, and

American Samoa.

(24) (!2) The term "energy efficient mortgage" means a mortgage

that provides financing incentives for the purchase of energy

efficient homes, or that provides financing incentives to make

energy efficiency improvements in existing homes by incorporating

the cost of such improvements in the mortgage.

(25) The term "energy efficient mortgage" means a mortgage that

provides financing incentives for the purchase of energy

efficient homes, or that provides financing incentives to make

energy efficiency improvements in existing homes by incorporating

the cost of such improvements in the mortgage.

-SOURCE-

(Pub. L. 101-625, title I, Sec. 104, Nov. 28, 1990, 104 Stat. 4085;

Pub. L. 102-229, title I, Dec. 12, 1991, 105 Stat. 1709; Pub. L.

101-230, Sec. 2, Dec. 12, 1991, 105 Stat. 1720; Pub. L. 102-486,

title I, Sec. 105(a), Oct. 24, 1992, 106 Stat. 2792; Pub. L.

102-550, title II, Secs. 211(a)(1), 217(a), 218, 219, title IX,

Sec. 914(a), Oct. 28, 1992, 106 Stat. 3756, 3760, 3761, 3877; Pub.

L. 103-233, title II, Sec. 201, Apr. 11, 1994, 108 Stat. 363.)

-REFTEXT-

REFERENCES IN TEXT

This Act, referred to in pars. (1), (2), (6), (16), and (21), is

Pub. L. 101-625, Nov. 28, 1990, 104 Stat. 4079, as amended, 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.

-MISC1-

AMENDMENTS

1994 - Par. (2). Pub. L. 103-233 struck out "and" after

"Columbia," and inserted before period at end ", or any agency or

instrumentality thereof that is established pursuant to legislation

and designated by the chief executive officer to act on behalf of

the State with regard to the provisions of this Act".

1992 - Par. (1). Pub. L. 102-550, Sec. 211(a)(1), amended this

section to read as if amendment made by Pub. L. 102-230, Sec. 2(1),

had not been enacted. See 1991 Amendment note below.

Par. (6). Pub. L. 102-550, Sec. 217(a), inserted concluding

provisions.

Par. (8). Pub. L. 102-550, Sec. 218, inserted before period at

end "and elder cottage housing opportunity units that are small,

free-standing, barrier-free, energy-efficient, removable, and

designed to be installed adjacent to existing 1- to 4-family

dwellings".

Par. (14)(C). Pub. L. 102-550, Sec. 219, added subpar. (C).

Par. (24). Pub. L. 102-550, Sec. 211(a)(1), amended this section

to read as if amendment made by Pub. L. 102-230, Sec. 2(2), had not

been enacted. See 1991 Amendment note below.

Pub. L. 102-486 added par. (24) defining "energy efficient

mortgage".

Par. (25). Pub. L. 102-550, Sec. 914(a), added par. (25).

1991 - Par. (1). Pub. L. 102-230, Sec. 2(1), directed the

substitution of "the insular areas" for "Guam, the Northern Mariana

Islands, the Virgin Islands, American Samoa, the Federated States

of Micronesia and Palau, the Marshall Islands". See 1992 Amendment

note above.

Pub. L. 102-229 struck out "Guam, the Northern Mariana Islands,

the Virgin Islands, American Samoa," after "of a State;".

Par. (24). Pub. L. 102-230, Sec. 2(2), directed the addition of a

par. (24) to read as follows: "(24) The term 'insular areas' means

Guam, the Northern Mariana Islands, the United States Virgin

Islands, and American Samoa." See 1992 Amendment note above.

Pub. L. 102-229 added par. (24) defining "insular area".

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.

EFFECTIVE DATE OF 1992 AMENDMENT

Section 211(b) of Pub. L. 102-550 provided that: "The amendments

made by subsection (a) [amending this section and section 12747 of

this title] shall apply with respect to fiscal year 1993 and

thereafter."

Section 223 of title II of Pub. L. 102-550 provided that: "The

amendments made by this title [enacting section 12810 of this title

and amending this section and sections 12705, 12724, 12742, 12745

to 12748, 12750, 12771, 12773, 12774, 12782, and 12784 of this

title] shall apply to unexpended funds allocated under title II of

the Cranston-Gonzalez National Affordable Housing Act [42 U.S.C.

12721 et seq.] in fiscal year 1992, except as otherwise

specifically provided."

REGULATIONS

Section 222 of title II of Pub. L. 102-550 provided that: "The

Secretary of Housing and Urban Development shall issue any final

regulations necessary to implement the provisions of this title

[enacting section 12810 of this title, amending this section and

sections 12705, 12724, 12742, 12745 to 12748, 12750, 12771, 12773,

12774, 12782, and 12784 of this title, and enacting provisions set

out as notes under this section and sections 12746, 12747, and

12750 of this title] and the amendments made by this title not

later than the expiration of the 180-day period beginning on the

date of the enactment of this Act [Oct. 28, 1992], except as

expressly provided otherwise in this title and the amendments made

by this title. Such regulations shall be issued after notice and

opportunity for public comment pursuant to the provisions of

section 553 of title 5, United States Code (notwithstanding

subsections (a)(2), (b)(B), and (d)(3) of such section)."

TRANSITION RULE

Section 217(b) of Pub. L. 102-550 provided that: "For the

purposes of determining compliance with the requirements of section

104(6) of the Cranston-Gonzalez National Affordable Housing Act [42

U.S.C. 12704(6)], the Secretary of Housing and Urban Development

may provide an exception for organizations that meet the definition

of community housing development organization, except for

significant representation of low-income community residents on the

board, if such organization fulfills such requirement within 6

months of receiving funds under title II of such Act [42 U.S.C.

12721 et seq.] or September 30, 1993, whichever is sooner."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1437bbb-8, 1472, 11403g,

12773, 12896, 12902 of this title; title 12 section 4116.

-FOOTNOTE-

(!1) So in original. Probably should be "(22)".

(!2) So in original. Two pars. (24) have been enacted.

-End-

-CITE-

42 USC Sec. 12705 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER I - GENERAL PROVISIONS AND POLICIES

-HEAD-

Sec. 12705. State and local housing strategies

-STATUTE-

(a) In general

The Secretary shall provide assistance directly to a jurisdiction

only if -

(1) the jurisdiction submits to the Secretary a comprehensive

housing affordability strategy (hereafter in this section

referred to as the "housing strategy");

(2) the jurisdiction submits annual updates of the housing

strategy; and

(3) the housing strategy, and any annual update of such

strategy, is approved by the Secretary.

The Secretary shall establish such dates and manner for the

submission and approval of housing strategies under this section

that the Secretary determines will facilitate orderly program

management by jurisdictions and provide for timely investment or

other use of funds made available under subchapter II of this

chapter and other programs requiring submission of a housing

strategy. If the Secretary finds there is good cause, the Secretary

may provide reasonable extensions of any deadlines for submission

of a jurisdiction's housing strategy.

(b) Contents

A housing strategy submitted under this section shall be in a

form that the Secretary determines to be appropriate for the

assistance the jurisdiction may be provided and shall -

(1) describe the jurisdiction's estimated housing needs

projected for the ensuing 5-year period, and the jurisdiction's

need for assistance for very low-income, low-income, and

moderate-income families, specifying such needs for different

types of tenure and for different categories of residents, such

as very low-income, low-income, and moderate-income families, the

elderly, persons with disabilities, single persons, large

families, residents of nonmetropolitan areas, families who are

participating in an organized program to achieve economic

independence and self-sufficiency, persons with acquired

immunodeficiency syndrome, and other categories of persons

residing in or expected to reside in the jurisdiction that the

Secretary determines to be appropriate;

(2) describe the nature and extent of homelessness, including

rural homelessness, within the jurisdiction, providing an

estimate of the special needs of various categories of persons

who are homeless or threatened with homelessness, including

tabular representation of such information, and a description of

the jurisdiction's strategy for (A) helping low-income families

avoid becoming homeless; (B) addressing the emergency shelter and

transitional housing needs of homeless persons (including a brief

inventory of facilities and services that meet such needs within

that jurisdiction); and (C) helping homeless persons make the

transition to permanent housing and independent living;

(3) describe the significant characteristics of the

jurisdiction's housing market, indicating how those

characteristics will influence the use of funds made available

for rental assistance, production of new units, rehabilitation of

old units, or acquisition of existing units;

(4) explain whether the cost of housing or the incentives to

develop, maintain, or improve affordable housing in the

jurisdiction are affected by public policies, particularly by

policies of the jurisdiction, including tax policies affecting

land and other property, land use controls, zoning ordinances,

building codes, fees and charges, growth limits, and policies

that affect the return on residential investment, and describe

the jurisdiction's strategy to remove or ameliorate negative

effects, if any, of such policies, except that, if a State

requires a unit of general local government to submit a

regulatory barrier assessment that is substantially equivalent to

the information required under this paragraph, as determined by

the Secretary, the unit of general local government may submit

its assessment submitted to the State to the Secretary and shall

be considered to have complied with this paragraph;

(5) explain the institutional structure, including private

industry, nonprofit organizations, and public institutions,

through which the jurisdiction will carry out its housing

strategy, assessing the strengths and gaps in that delivery

system and describing what the jurisdiction will do to overcome

those gaps;

(6) indicate resources from private and non-Federal public

sources that are reasonably expected to be made available to

carry out the purposes of this Act, explaining how funds made

available will leverage those additional resources and

identifying, where the jurisdiction deems it appropriate,

publicly owned land or property located within the jurisdiction

that may be utilized to carry out the purposes of this Act;

(7) set forth the jurisdiction's plan for investment or other

use of housing funds made available under subchapter II of this

chapter, the United States Housing Act of 1937 [42 U.S.C. 1437 et

seq.], the Housing and Community Development Act of 1974, and the

McKinney-Vento Homeless Assistance Act [42 U.S.C. 11301 et seq.],

during the ensuing year or such longer period as the Secretary

determines to be appropriate, indicating the general priorities

for allocating investment geographically within the jurisdiction

and among different activities and housing needs;

(8) describe how the jurisdiction's plan will address the

housing needs identified pursuant to subparagraphs (!1) (1) and

(2), describe the reasons for allocation priorities, and identify

any obstacles to addressing underserved needs;

(9) describe the means of cooperation and coordination among

the State and any units of general local government in the

development, submission, and implementation of their housing

strategies;

(10) in the case of a unit of local government, describe the

number of public housing units in the jurisdiction, the physical

condition of such units, the restoration and revitalization needs

of public housing projects within the jurisdiction, the public

housing agency's strategy for improving the management and

operation of such public housing, and the public housing agency's

strategy for improving the living environment of low- and

very-low-income families residing in public housing;

(11) describe the manner in which the plan of the jurisdiction

will help address the needs of public housing;

(12) in the case of a State, describe the strategy to

coordinate the Low-Income Tax Credit with development of housing,

including public housing, that is affordable to very low-income

and low-income families;

(13) describe the jurisdiction's activities to encourage public

housing residents to become more involved in management and

participate in homeownership;

(14) describe the standards and procedures according to which

the jurisdiction will monitor activities authorized under this

Act and ensure long-term compliance with the provisions of this

Act;

(15) include a certification that the jurisdiction will

affirmatively further fair housing;

(16) include a certification that the jurisdiction has in

effect and is following a residential antidisplacement and

relocation assistance plan that, in any case of any such

displacement in connection with any activity assisted with

amounts provided under subchapter II of this chapter, requires

the same actions and provides the same rights as required and

provided under a residential antidisplacement and relocation

assistance plan under section 104(d) of the Housing and Community

Development Act of 1974 [42 U.S.C. 5304(d)] in the event of

displacement in connection with a development project assisted

under section 106 or 119 of such Act [42 U.S.C. 5306, 5318];

(17) estimate the number of housing units within the

jurisdiction that are occupied by low-income families or very

low-income families and that contain lead-based paint hazards, as

defined in section 4851b of this title, outline the actions

proposed or being taken to evaluate and reduce lead-based paint

hazards, and describe how lead-based paint hazard reduction will

be integrated into housing policies and programs;

(18) include the number of families to whom the jurisdiction

will provide affordable housing as defined in section 12745 of

this title using funds made available;

(19) for any housing strategy submitted for fiscal year 1994 or

any fiscal year thereafter and taking into consideration factors

over which the jurisdiction has control, describe the

jurisdiction's goals, programs, and policies for reducing the

number of households with incomes below the poverty line (as

defined by the Office of Management and Budget and revised

annually), and, in consultation with other appropriate public and

private agencies, state how the jurisdiction's goals, programs,

and policies for producing and preserving affordable housing set

forth in the housing strategy will be coordinated with other

programs and services for which the jurisdiction is responsible

and the extent to which they will reduce (or assist in reducing)

the number of households with incomes below the poverty line; and

(20) describe the jurisdictions activities to enhance

coordination between public and assisted housing providers and

private and governmental health, mental health, and service

agencies.

The Secretary may provide for the submission of abbreviated housing

strategies by jurisdictions that are not otherwise expected to be

participating jurisdictions under subchapter II of this chapter.

Such an abbreviated housing strategy shall be appropriate to the

types and amounts of assistance the jurisdiction is to receive as

determined by the Secretary.

(c) Approval

(1) In general

The Secretary shall review the housing strategy upon receipt.

Not later than 60 days after receipt by the Secretary, the

housing strategy shall be approved unless the Secretary

determines before that date that (A) the housing strategy is

inconsistent with the purposes of this Act, or (B) the

information described in subsection (b) of this section has not

been provided in a substantially complete manner. For the purpose

of the preceding sentence, the adoption or continuation of a

public policy identified pursuant to subsection (b)(4) of this

section shall not be a basis for the Secretary's disapproval of a

housing strategy. During the 18-month period following November

28, 1990, the Secretary may extend the review period to not

longer than 90 days.

(2) Actions in case of disapproval

If the Secretary disapproves the housing strategy, the

Secretary shall immediately notify the jurisdiction of such

disapproval. Not later than 15 days after the Secretary's

disapproval, the Secretary shall inform the jurisdiction in

writing of (A) the reasons for disapproval, and (B) actions that

the jurisdiction could take to meet the criteria for approval. If

the Secretary fails to inform the jurisdiction of the reasons for

disapproval within such 15-day period, the housing strategy shall

be deemed to have been approved.

(3) Amendments and resubmission

The Secretary shall, for a period of not less than 45 days

following the date of first disapproval, permit amendments to, or

the resubmission of, any housing strategy that is disapproved.

The Secretary shall approve or disapprove a housing strategy not

less than 30 days after receipt of such amendments or

resubmission.

(d) Coordination of State and local housing strategies

The Secretary may establish such requirements as the Secretary

deems appropriate to encourage coordination between and among the

housing strategies of a State and any participating jurisdictions

within the State, except that a unit of general local government

shall not be required to have elements of its housing strategy

approved by the State.

(e) Consultation with social service agencies

(1) In general

When preparing a housing strategy for submission under this

section, a jurisdiction shall make reasonable efforts to confer

with appropriate social service agencies regarding the housing

needs of children, elderly persons, persons with disabilities,

homeless persons, and other persons served by such agencies.

(2) Lead-based paint hazards

When preparing that portion of a housing strategy required by

subsection (b)(16) of this section, a jurisdiction shall consult

with State or local health and child welfare agencies and examine

existing data related to lead-based paint hazards and poisonings,

including health department data on the addresses of housing

units in which children have been identified as lead poisoned.

(f) Barrier removal

Not later than 4 months after completion of the final report of

the Secretary's Advisory Commission on Regulatory Barriers to

Affordable Housing, the Secretary shall submit to the Congress a

written report outlining the Secretary's recommendations for

legislative and administrative actions to facilitate the removal or

modification of excessive, duplicative, or unnecessary regulations

or other requirements of Federal, State, or local governments that

(1) inflate the costs of or otherwise inhibit the construction,

rehabilitation, or management of housing, particularly housing that

otherwise could be affordable to low-income and moderate-income

families, or (2) contribute to economic or racial discrimination.

(g) Treatment of troubled public housing agencies

(1) Effect of troubled status on CHAS

The comprehensive housing affordability strategy (or any

consolidated plan incorporating such strategy) for the State or

unit of general local government in which any troubled public

housing agency is located shall not be considered to comply with

the requirements under this section unless such plan includes a

description of the manner in which the State or unit will provide

financial or other assistance to such troubled agency in

improving its operations to remove such designation.

(2) Definition

For purposes of this subsection, the term "troubled public

housing agency" means a public housing agency that, upon the

effective date of the Quality Housing and Work Responsibility Act

of 1998, is designated under section 6(j)(2) of the United States

Housing Act of 1937 [42 U.S.C. 1437d(j)(2)] as a troubled public

housing agency.

-SOURCE-

(Pub. L. 101-625, title I, Sec. 105, Nov. 28, 1990, 104 Stat. 4088;

Pub. L. 102-550, title II, Sec. 220, title VI, Sec. 681, title X,

Sec. 1014, title XII, Sec. 1206, Oct. 28, 1992, 106 Stat. 3761,

3830, 3908, 3940; Pub. L. 105-276, title V, Secs. 568, 583, Oct.

21, 1998, 112 Stat. 2634, 2644; Pub. L. 106-400, Sec. 2, Oct. 30,

2000, 114 Stat. 1675.)

-REFTEXT-

REFERENCES IN TEXT

This Act, referred to in subsecs. (b)(6), (14) and (c)(1), 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 United States Housing Act of 1937, referred to in subsec.

(b)(7), 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,

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.

The Housing and Community Development Act of 1974, referred to in

subsec. (b)(7), is Pub. L. 93-383, Aug. 22, 1974, 88 Stat. 633, as

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

Short Title note set out under section 5301 of this title and

Tables.

The McKinney-Vento Homeless Assistance Act, referred to in

subsec. (b)(7), is Pub. L. 100-77, July 22, 1987, 101 Stat. 482, as

amended, which is classified principally to chapter 119 (Sec. 11301

et seq.) of this title. For complete classification of this Act to

the Code, see Short Title note set out under section 11301 of this

title and Tables.

The effective date of the Quality Housing and Work Responsibility

Act of 1998, referred to in subsec. (g)(2), probably means the

general effective date for title V of Pub. L. 105-276, included in

section 503 of Pub. L. 105-276 which is set out as an Effective

Date of 1998 Amendment note under section 1437 of this title.

-MISC1-

AMENDMENTS

2000 - Subsec. (b)(7). Pub. L. 106-400 substituted

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

Homeless Assistance Act".

1998 - Subsec. (b). Pub. L. 105-276, Sec. 583(1), transferred

flush provisions relating to abbreviated housing strategies to end

of subsection to follow last numbered paragraph.

Subsec. (b)(11) to (15). Pub. L. 105-276, Sec. 583(6), (7), added

par. (11) and redesignated former pars. (11) to (14) as (12) to

(15), respectively. Former par. (15) redesignated (16).

Subsec. (b)(16). Pub. L. 105-276, Sec. 583(6), redesignated par.

(15) as (16). Former par. (16), relating to housing units that

contain lead-based paint hazards, redesignated (17), and former

par. (16), relating to number of families to whom jurisdiction will

provide affordable housing, redesignated (18).

Pub. L. 105-576, Sec. 583(5)(A), substituted "programs;" for

"programs." in par. (16) relating to housing units that contain

lead-based paint hazards.

Pub. L. 105-576, Sec. 583(4)(A), struck out "and" at end of par.

(16) relating to number of families to whom jurisdiction will

provide affordable housing.

Subsec. (b)(17). Pub. L. 105-276, Sec. 583(5)(B), redesignated

par. (16), relating to housing units that contain lead-based paint

hazards, as (17). Former par. (17), relating to reducing the number

of households within a jurisdiction with incomes below the poverty

line, redesignated (19), and former par. (17), relating to

activities to enhance coordination, redesignated (20).

Subsec. (b)(18). Pub. L. 105-276, Sec. 583(4)(B), redesignated

par. (16), relating to number of families to whom jurisdiction will

provide affordable housing, as (18).

Subsec. (b)(19). Pub. L. 105-276, Sec. 583(3), redesignated par.

(17), relating to reducing the number of households within a

jurisdiction with incomes below the poverty line, as (19).

Subsec. (b)(20). Pub. L. 105-276, Sec. 583(2), redesignated par.

(17), relating to activities to enhance coordination, as (20).

Subsec. (g). Pub. L. 105-276, Sec. 568, added subsec. (g).

1992 - Subsec. (b)(1). Pub. L. 102-550, Sec. 681(1), inserted

"persons with disabilities," after "the elderly,".

Subsec. (b)(2). Pub. L. 102-550, Sec. 220(a), inserted ",

including rural homelessness," after "extent of homelessness" and

"including tabular representation of such information," after "with

homelessness,".

Subsec. (b)(4). Pub. L. 102-550, Sec. 1206, inserted before

semicolon at end ", except that, if a State requires a unit of

general local government to submit a regulatory barrier assessment

that is substantially equivalent to the information required under

this paragraph, as determined by the Secretary, the unit of general

local government may submit its assessment submitted to the State

to the Secretary and shall be considered to have complied with this

paragraph".

Subsec. (b)(8). Pub. L. 102-550, Sec. 220(c)(2), added par. (8).

Former par. (8) redesignated (9).

Subsec. (b)(9) to (13). Pub. L. 102-550, Sec. 220(c)(1),

redesignated pars. (8) to (12) as (9) to (13), respectively. Former

par. (13) redesignated (14).

Subsec. (b)(14). Pub. L. 102-550, Sec. 220(c)(1), redesignated

par. (13) as (14). Former par. (14) redesignated (15).

Pub. L. 102-550, Sec. 220(b)(1), added par. (14) and struck out

former par. (14) which read as follows: "include a certification

that the jurisdiction is in compliance with a residential

antidisplacement and relocation assistance plan under section

104(d) of the Housing and Community Development Act of 1974 (to the

extent that such a plan applies to the jurisdiction); and".

Subsec. (b)(15). Pub. L. 102-550, Sec. 220(c)(1), redesignated

par. (14) as (15). Former par. (15) redesignated (16).

Subsec. (b)(16). Pub. L. 102-550, Sec. 1014(3), added par. (16)

relating to housing units that contain lead-based paint hazards.

Pub. L. 102-550, Sec. 220(c)(1), redesignated par. (15) as (16).

Former par. (16) redesignated (17).

Pub. L. 102-550, Sec. 220(b)(3), added at end par. (16) relating

to reducing the number of households within a jurisdiction with

incomes below the poverty line.

Subsec. (b)(17). Pub. L. 102-550, Sec. 681(2), which directed

amendment of subsec. (b) by adding "after paragraph (16), as added

by the preceding provisions of this Act", a new par. (17) relating

to activities to enhance coordination, was executed by adding that

par. (17) after par. (17) (formerly par. (16), relating to reducing

the number of households within a jurisdiction with incomes below

the poverty line, to reflect the probable intent of Congress.

Pub. L. 102-550, Sec. 220(c)(1), redesignated par. (16), relating

to reducing the number of households within a jurisdiction with

incomes below the poverty line, as (17).

Subsec. (e). Pub. L. 102-550, Sec. 1014(4), designated existing

provisions as par. (1), inserted heading, and added par. (2).

EFFECTIVE DATE OF 1998 AMENDMENT

Amendment by title V of Pub. L. 105-276 effective and applicable

beginning upon Oct. 1, 1999, except as otherwise provided, with

provision that Secretary may implement amendment before such date,

except to extent that such amendment provides otherwise, and with

savings provision, see section 503 of Pub. L. 105-276, set out as a

note under section 1437 of this title.

EFFECTIVE DATE OF 1992 AMENDMENT

Amendment by section 220 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.

Amendment by subtitles B through F of title VI [Secs. 621-685] of

Pub. L. 102-550 applicable upon expiration of 6-month period

beginning Oct. 28, 1992, except as otherwise provided, see section

13642 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1437e, 1437f, 1437aaa-1,

1437aaa-2, 1439, 1485, 1490l, 4852, 5304, 5318a, 8013, 11361,

11375, 11386, 11394, 11403c, 11432, 12705b, 12705c, 12708, 12746,

12747, 12752, 12872, 12873, 12892, 12893, 12899b, 12899c, 12903 of

this title; title 12 sections 1456, 1701q, 1723a, 4117.

-FOOTNOTE-

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

-End-

-CITE-

42 USC Sec. 12705a 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER I - GENERAL PROVISIONS AND POLICIES

-HEAD-

Sec. 12705a. Purposes of Removal of Regulatory Barriers to

Affordable Housing Act

-STATUTE-

The purposes of sections 12705a to 12705d of this title are -

(1) to encourage State and local governments to further

identify and remove regulatory barriers to affordable housing

(including barriers that are excessive, unnecessary, duplicative,

or exclusionary) that significantly increase housing costs and

limit the supply of affordable housing; and

(2) to strengthen the connection between Federal housing

assistance and State and local efforts to identify and eliminate

regulatory barriers.

-SOURCE-

(Pub. L. 102-550, title XII, Sec. 1202, Oct. 28, 1992, 106 Stat.

3938.)

-REFTEXT-

REFERENCES IN TEXT

Sections 12705a to 12705d of this title, referred to in text,

were in the original "this title", meaning title XII of Pub. L.

102-550, Oct. 28, 1992, 106 Stat. 3938, known as the Removal of

Regulatory Barriers to Affordable Housing Act of 1992, which

enacted sections 12705a to 12705d of this title, amended sections

5306 and 12705 of this title, and enacted provisions set out as a

note below.

-COD-

CODIFICATION

Section was enacted as part of the Removal of Regulatory Barriers

to Affordable Housing Act of 1992, and also as part of the Housing

and Community Development Act of 1992, and not as part of the

Cranston-Gonzalez National Affordable Housing Act which comprises

this chapter.

-MISC1-

SHORT TITLE

Section 1201 of title XII of Pub. L. 102-550 provided that: "This

title [enacting this section and sections 12705b to 12705d of this

title, amending sections 5306 and 12705 of this title, and enacting

provisions set out as a note below] may be cited as the 'Removal of

Regulatory Barriers to Affordable Housing Act of 1992'."

REPORT BY SECRETARY

Pub. L. 102-550, title XII, Sec. 1207, Oct. 28, 1992, 106 Stat.

3941, provided that not later than 2 years after Oct. 28, 1992, the

Secretary of Housing and Urban Development submit a report to

Congress describing any successful State and local strategies for

removal of barriers to affordable housing, assessing impact of

identified regulatory barriers on housing patterns of minorities,

and describing any strategies developed or implemented by

Department of Housing and Urban Development for reducing barriers

to affordable housing imposed by Federal Government, prior to

repeal by Pub. L. 105-362, title VII, Sec. 701(b), Nov. 10, 1998,

112 Stat. 3287.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 12705b of this title.

-End-

-CITE-

42 USC Sec. 12705b 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER I - GENERAL PROVISIONS AND POLICIES

-HEAD-

Sec. 12705b. Definition of regulatory barriers to affordable

housing

-STATUTE-

For purposes of sections 12705a to 12705d of this title, the

terms "regulatory barriers to affordable housing" and "regulatory

barriers" mean any public policies (including policies embodied in

statutes, ordinances, regulations, or administrative procedures or

processes) required to be identified by a jurisdiction in

connection with its comprehensive housing affordability strategy

under section 12705(b)(4) of this title. Such terms do not include

policies relating to rents imposed on a structure by a jurisdiction

or policies that have served to create or preserve, or can be shown

to create or preserve, housing for low- and very low-income

families, including displacement protections, demolition controls,

replacement housing requirements, relocation benefits, housing

trust funds, dedicated funding sources, waiver of local property

taxes and builder fees, inclusionary zoning, rental zoning

overlays, long-term use restrictions, and rights of first refusal.

-SOURCE-

(Pub. L. 102-550, title XII, Sec. 1203, Oct. 28, 1992, 106 Stat.

3938.)

-REFTEXT-

REFERENCES IN TEXT

Sections 12705a to 12705d of this title, referred to in text,

were in the original "this title", meaning title XII of Pub. L.

102-550, Oct. 28, 1992, 106 Stat. 3938, known as the Removal of

Regulatory Barriers to Affordable Housing Act of 1992, which

enacted sections 12705a to 12705d of this title, amended sections

5306 and 12705 of this title, and enacted provisions set out as

notes under section 12705a of this title.

-COD-

CODIFICATION

Section was enacted as part of the Removal of Regulatory Barriers

to Affordable Housing Act of 1992, and also as part of the Housing

and Community Development Act of 1992, and not as part of the

Cranston-Gonzalez National Affordable Housing Act which comprises

this chapter.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 12705a, 12705c of this

title.

-End-

-CITE-

42 USC Sec. 12705c 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER I - GENERAL PROVISIONS AND POLICIES

-HEAD-

Sec. 12705c. Grants for regulatory barrier removal strategies and

implementation

-STATUTE-

(a) Funding

There is authorized to be appropriated for grants under

subsections (b) and (c) (!1) of this section such sums as may be

necessary for each of fiscal years 2001, 2002, 2003, 2004, and

2005.

(b) Grant authority

The Secretary may make grants to States and units of general

local government (including consortia of such governments) for the

costs of developing and implementing strategies to remove

regulatory barriers to affordable housing, including the costs of -

(1) identifying, assessing, and monitoring State and local

regulatory barriers;

(2) identifying State and local policies (including laws and

regulations) that permit or encourage regulatory barriers;

(3) developing legislation to provide State, local, or regional

programs to reduce regulatory barriers and developing a strategy

for adoption of such legislation;

(4) developing model State or local standards and ordinances to

reduce regulatory barriers and assisting in the adoption and use

of the standards and ordinances;

(5) carrying out the simplification and consolidation of

administrative procedures and processes constituting regulatory

barriers to affordable housing, including the issuance of

permits; and

(6) providing technical assistance and information to units of

general local government for implementation of legislative and

administrative reform programs to remove regulatory barriers to

affordable housing.

(c) Repealed. Pub. L. 106-569, title I, Sec. 102(c), Dec. 27, 2000,

114 Stat. 2947

(d) Definitions

For purposes of this section, the terms "regulatory barriers to

affordable housing" and "regulatory barriers" have the meaning

given such terms in section 12705b of this title.

(e) Application and selection

The Secretary shall provide for the form and manner of

applications for grants under this section, which shall describe

how grant amounts will assist the State or unit of general local

government in developing and implementing strategies to remove

regulatory barriers to affordable housing. The Secretary shall

establish criteria for approval of applications under this

subsection and such criteria shall require that grant amounts be

used in a manner consistent with the strategy contained in the

comprehensive housing affordability strategy for the jurisdiction

pursuant to section 12705(b)(4) of this title.

(f) Selection of grantees

To the extent amounts are made available to carry out this

section, the Secretary shall provide grants on a competitive basis

to eligible grantees based on the proposed uses of such amounts, as

provided in applications under subsection (e) of this section.

(g) Coordination with clearinghouse

Each State and unit of general local government receiving a grant

under this section, shall consult, coordinate, and exchange

information with the clearinghouse established under section 12705d

of this title.

(h) Reports to Secretary

Each State and unit of general local government receiving a grant

under this section shall submit a report to the Secretary, not less

than 12 months after receiving the grant, describing any activities

carried out with the grant amounts. The report shall contain an

assessment of the impact of any regulatory barriers identified by

the grantee on the housing patterns of minorities.

-SOURCE-

(Pub. L. 102-550, title XII, Sec. 1204, Oct. 28, 1992, 106 Stat.

3938; Pub. L. 106-569, title I, Sec. 102(a)-(e), Dec. 27, 2000, 114

Stat. 2946, 2947.)

-REFTEXT-

REFERENCES IN TEXT

Subsection (c) of this section, referred to in subsec. (a), was

repealed by Pub. L. 106-569, title I, Sec. 102(c), Dec. 27, 2000,

114 Stat. 2947.

-COD-

CODIFICATION

Section was enacted as part of the Removal of Regulatory Barriers

to Affordable Housing Act of 1992, and also as part of the Housing

and Community Development Act of 1992, and not as part of the

Cranston-Gonzalez National Affordable Housing Act which comprises

this chapter.

Section is comprised of section 1204 of Pub. L. 102-550.

Subsection (i) of section 1204 of Pub. L. 102-550 amended section

5306 of this title.

-MISC1-

AMENDMENTS

2000 - Subsec. (a). Pub. L. 106-569, Sec. 102(a), amended heading

and text of subsec. (a) generally. Prior to amendment, text read as

follows: "The amounts set aside under section 5307 of this title

for the purpose of this subsection shall be available for grants

under subsection (b) and (c) of this section."

Subsec. (b). Pub. L. 106-569, Sec. 102(b)(1), (2), substituted

"Grant authority" for "State grants" in heading and inserted "and

units of general local government (including consortia of such

governments)" after "States" in introductory provisions.

Subsec. (b)(3). Pub. L. 106-569, Sec. 102(b)(3), substituted

"State, local, or regional programs to reduce" for "a State program

to reduce State and local".

Subsec. (b)(4). Pub. L. 106-569, Sec. 102(b)(4), inserted "or

local" after "State".

Subsec. (b)(5). Pub. L. 106-569, Sec. 102(b)(5), struck out

"State" before "administrative procedures".

Subsec. (c). Pub. L. 106-569, Sec. 102(c), struck out heading and

text of subsec. (c) which related to local grants.

Subsec. (e). Pub. L. 106-569, Sec. 102(d), substituted "and such

criteria shall require that grant amounts be used in a manner

consistent with the strategy contained in the comprehensive housing

affordability strategy for the jurisdiction pursuant to section

12705(b)(4) of this title" for "and for the selection of units of

general local government to receive grants under subsection (f)(2)

of this section" before period at end.

Subsec. (f). Pub. L. 106-569, Sec. 102(e), amended heading and

text of subsec. (f) generally, substituting provisions relating to

selection of grantees for provisions relating to allocation of

amounts.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 12705a, 12705b of this

title.

-FOOTNOTE-

(!1) See References in Text note below.

-End-

-CITE-

42 USC Sec. 12705d 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER I - GENERAL PROVISIONS AND POLICIES

-HEAD-

Sec. 12705d. Regulatory barriers clearinghouse

-STATUTE-

(a) Establishment

The Secretary of Housing and Urban Development shall establish a

clearinghouse to serve as a national repository to receive,

collect, process, assemble, and disseminate information regarding -

(1) State and local laws, regulations, and policies affecting

the development, maintenance, improvement, availability, or cost

of affordable housing (including tax policies affecting land and

other property, land use controls, zoning ordinances, building

codes, fees and charges, growth limits, and policies that affect

the return on investment in residential property), and the

prevalence and effects on affordable housing of such laws,

regulations, and policies;

(2) State and local activities, strategies, and plans to remove

or ameliorate the negative effects, if any, of such laws,

regulations, and policies, including particularly innovative or

successful activities, strategies, and plans; and

(3) State and local strategies, activities and plans that

promote affordable housing and housing desegregation, including

particularly innovative or successful strategies, activities, and

plans.

(b) Functions

The clearinghouse established under subsection (a) of this

section shall -

(1) respond to inquiries from State and local governments,

other organizations, and individuals requesting information

regarding State and local laws, regulations, policies,

activities, strategies, and plans described in subsection (a) of

this section;

(2) provide assistance in identifying, examining, and

understanding such laws, regulations, policies, activities,

strategies, and plans; and

(3) by making available through a World Wide Web site of the

Department, by electronic mail, or otherwise, provide to each

housing agency of a unit of general local government that serves

an area having a population greater than 100,000, an index of all

State and local strategies and plans submitted under subsection

(a) of this section to the clearinghouse, which -

(A) shall describe the types of barriers to affordable

housing that the strategy or plan was designed to ameliorate or

remove; and

(B) shall, not later than 30 days after submission to the

clearinghouse of any new strategy or plan, be updated to

include the new strategy or plan submitted.

(c) Organization

The clearinghouse under this section shall be established within

the Office of Policy Development of the Department of Housing and

Urban Development and shall be under the direction of the Assistant

Secretary for Policy Development and Research.

(d) Timing

The clearinghouse under this section (as amended by section 103

of the Housing Affordability Barrier Removal Act of 2000) shall be

established and commence carrying out the functions of the

clearinghouse under this section not later than 1 year after

December 27, 2000. The Secretary of Housing and Urban Development

may comply with the requirements under this section by

reestablishing the clearinghouse that was originally established to

comply with this section and updating and improving such

clearinghouse to the extent necessary to comply with the

requirements of this section as in effect pursuant to the enactment

of such Act.

-SOURCE-

(Pub. L. 102-550, title XII, Sec. 1205, Oct. 28, 1992, 106 Stat.

3940; Pub. L. 106-569, title I, Sec. 103, Dec. 27, 2000, 114 Stat.

2947.)

-REFTEXT-

REFERENCES IN TEXT

The Housing Affordability Barrier Removal Act of 2000, referred

to in subsec. (d), is title I of Pub. L. 106-569, Dec. 27, 2000,

114 Stat. 2946. Section 103 of the Act amended this section. For

complete classification of this Act to the Code, see Short Title of

2000 Amendment note set out under section 12701 of this title and

Tables.

-COD-

CODIFICATION

Section was enacted as part of the Removal of Regulatory Barriers

to Affordable Housing Act of 1992, and also as part of the Housing

and Community Development Act of 1992, and not as part of the

Cranston-Gonzalez National Affordable Housing Act which comprises

this chapter.

-MISC1-

AMENDMENTS

2000 - Subsec. (a). Pub. L. 106-569, Sec. 103(1)(A), substituted

"serve as a national repository to receive, collect, process,

assemble, and disseminate" for "receive, collect, process, and

assemble" in introductory provisions.

Subsec. (a)(1). Pub. L. 106-569, Sec. 103(1)(B), substituted

"(including" for ", including" and inserted "), and the prevalence

and effects on affordable housing of such laws, regulations, and

policies" before semicolon at end.

Subsec. (a)(2). Pub. L. 106-569, Sec. 103(1)(C), inserted before

semicolon ", including particularly innovative or successful

activities, strategies, and plans".

Subsec. (a)(3). Pub. L. 106-569, Sec. 103(1)(D), inserted before

period at end ", including particularly innovative or successful

strategies, activities, and plans".

Subsec. (b)(3). Pub. L. 106-569, Sec. 103(2), added par. (3).

Subsecs. (c), (d). Pub. L. 106-569, Sec. 103(3), added subsecs.

(c) and (d).

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 12705a, 12705b, 12705c of

this title.

-End-

-CITE-

42 USC Sec. 12706 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER I - GENERAL PROVISIONS AND POLICIES

-HEAD-

Sec. 12706. Certification

-STATUTE-

The Secretary shall, by regulation or otherwise, as deemed by the

Secretary to be appropriate, require any application for housing

assistance under subchapter II of this chapter, assistance under

the Housing and Community Development Act of 1974, or assistance

under the McKinney-Vento Homeless Assistance Act [42 U.S.C. 11301

et seq.], to contain or be accompanied by a certification by an

appropriate State or local public official that the proposed

housing activities are consistent with the housing strategy of the

jurisdiction to be served.

-SOURCE-

(Pub. L. 101-625, title I, Sec. 106, Nov. 28, 1990, 104 Stat. 4091;

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

-REFTEXT-

REFERENCES IN TEXT

The Housing and Community Development Act of 1974, referred to in

text, is Pub. L. 93-383, Aug. 22, 1974, 88 Stat. 633, as amended.

For complete classification of this Act to the Code, see Short

Title note set out under section 5301 of this title and Tables.

The McKinney-Vento Homeless Assistance Act, referred to in text,

is Pub. L. 100-77, July 22, 1987, 101 Stat. 482, as amended, which

is classified principally to chapter 119 (Sec. 11301 et seq.) of

this title. For complete classification of this Act to the Code,

see Short Title note set out under section 11301 of this title and

Tables.

-MISC1-

AMENDMENTS

2000 - 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 section 12708 of this title.

-End-

-CITE-

42 USC Sec. 12707 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER I - GENERAL PROVISIONS AND POLICIES

-HEAD-

Sec. 12707. Citizen participation

-STATUTE-

(a) In general

Before submitting a housing strategy under this section,(!1) a

jurisdiction shall -

(1) make available to its citizens, public agencies, and other

interested parties information concerning the amount of

assistance the jurisdiction expects to receive and the range of

investment or other uses of such assistance that the jurisdiction

may undertake;

(2) publish a proposed housing strategy in a manner that, in

the determination of the Secretary, affords affected citizens,

public agencies, and other interested parties a reasonable

opportunity to examine its content and to submit comments on the

proposed housing strategy;

(3) hold one or more public hearings to obtain the views of

citizens, public agencies, and other interested parties on the

housing needs of the jurisdiction; and

(4) provide citizens, public agencies, and other interested

parties with reasonable access to records regarding any uses of

any assistance the jurisdiction may have received during the

preceding 5 years.

(b) Notice and comment

Before submitting any performance report or substantial amendment

to a housing strategy under this section,(!1) a participating

jurisdiction shall provide citizens with reasonable notice of, and

opportunity to comment on, such performance report or substantial

amendment prior to its submission.

(c) Consideration of comments

A participating jurisdiction shall consider any comments or views

of citizens in preparing a final housing strategy, amendment to a

housing strategy or performance report for submission. A summary of

such comments or views shall be attached when a housing strategy,

amendment to a housing strategy or performance report is submitted.

The submitted housing strategy, amendment, or report shall be made

available to the public.

(d) Regulations

The Secretary shall by regulation establish procedures

appropriate and practicable for providing a fair hearing and timely

resolution of citizen complaints related to housing strategies or

performance reports.

-SOURCE-

(Pub. L. 101-625, title I, Sec. 107, Nov. 28, 1990, 104 Stat.

4091.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 12835 of this title.

-FOOTNOTE-

(!1) So in original. The words "this section" probably should be

"section 12705 of this title".

-End-

-CITE-

42 USC Sec. 12708 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER I - GENERAL PROVISIONS AND POLICIES

-HEAD-

Sec. 12708. Compliance

-STATUTE-

(a) Performance reports

(1) In general

Each participating jurisdiction shall annually review and

report, in a form acceptable to the Secretary, on the progress it

has made in carrying out its housing strategy, which report shall

include an evaluation of the jurisdiction's progress in meeting

its goal established in section 12705(b)(15) (!1) of this title,

and information on the number and types of households served,

including the number of very low-income, low-income, and

moderate-income persons served and the racial and ethnic status

of persons served that will be assisted with funds made

available.

(2) Submission

The Secretary shall (A) establish dates for submission of

reports under this subsection, and (B) review such reports and

make such recommendations as the Secretary deems appropriate to

carry out the purposes of this Act.

(3) Failure to report

If a jurisdiction fails to submit a report satisfactory to the

Secretary in a timely manner, assistance to the jurisdiction

under subchapter II of this chapter or the other programs

referred to in section 12706 of this title may be -

(A) suspended until a report satisfactory to the Secretary is

submitted; or

(B) withdrawn and reallocated if the Secretary finds, after

notice and opportunity for a hearing, that the jurisdiction

will not submit a satisfactory report.

(b) Performance review by Secretary

(1) In general

The Secretary shall ensure that activities of each jurisdiction

required to submit a housing strategy under section 12705 of this

title are reviewed not less frequently than annually. Such review

shall include, insofar as practicable, on-site visits by

employees of the Department of Housing and Urban Development and

shall include an assessment of the jurisdiction's -

(A) management of funds made available under programs

administered by the Secretary;

(B) compliance with its housing strategy;

(C) accuracy in the preparation of performance reports under

subsection (a) of this section; and

(D) efforts to ensure that housing assisted under programs

administered by the Secretary are in compliance with

contractual agreements and the requirements of law.

(2) Report by Secretary

The Secretary shall report on the performance review in

writing. The Secretary shall give the jurisdiction not less than

30 days to review and comment on the report. After taking into

consideration the comments of the jurisdiction, the Secretary may

revise the report and shall make the jurisdiction's comments and

the report, with any revisions, readily available to the public

within 30 days after receipt of the jurisdiction's comments.

(c) Review by courts

The adequacy of information submitted under section 12705(b)(4)

of this title shall not be reviewable by any Federal, State, or

other court. Review of a housing strategy by any Federal, State, or

other court shall be limited to determining whether the process of

development and the content of the strategy are in substantial

compliance with the requirements of this Act. During the pendency

of any action challenging the adequacy of a housing strategy or the

action of the Secretary in approving a strategy, the court shall

not have the authority to enjoin activities taken by the

jurisdiction to implement an approved housing strategy. Any housing

assisted during the pendency of such action shall not be subject to

any order of the court resulting from such action.

-SOURCE-

(Pub. L. 101-625, title I, Sec. 108, Nov. 28, 1990, 104 Stat.

4092.)

-REFTEXT-

REFERENCES IN TEXT

Section 12705(b)(15) of this title, referred to in subsec.

(a)(1), was redesignated section 12705(b)(16) of this title by Pub.

L. 102-550, title II, Sec. 220(c)(1), Oct. 28, 1992, 106 Stat.

3762, and was subsequently redesignated section 12705(b)(18) of

this title by Pub. L. 105-276, title V, Sec. 583(4)(A), Oct. 21,

1998, 112 Stat. 2644.

This Act, referred to in subsecs. (a)(2) and (c), 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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 12756 of this title.

-FOOTNOTE-

(!1) See References in Text note below.

-End-

-CITE-

42 USC Sec. 12709 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER I - GENERAL PROVISIONS AND POLICIES

-HEAD-

Sec. 12709. Energy efficiency standards

-STATUTE-

(a) Establishment

(1) In general

The Secretary of Housing and Urban Development and the

Secretary of Agriculture shall, not later than 1 year after

October 24, 1992, jointly establish, by rule, energy efficiency

standards for -

(A) new construction of public and assisted housing and

single family and multifamily residential housing (other than

manufactured homes) subject to mortgages insured under the

National Housing Act [12 U.S.C. 1701 et seq.]; and

(B) new construction of single family housing (other than

manufactured homes) subject to mortgages insured, guaranteed,

or made by the Secretary of Agriculture under title V of the

Housing Act of 1949 [42 U.S.C. 1471 et seq.].

(2) Contents

Such standards shall meet or exceed the requirements of the

Council of American Building Officials Model Energy Code, 1992

(hereafter in this section referred to as "CABO Model Energy

Code, 1992"), or, in the case of multifamily high rises, the

requirements of the American Society of Heating, Refrigerating,

and Air-Conditioning Engineers Standard 90.1-1989 (hereafter in

this section referred to as "ASHRAE Standard 90.1-1989"), and

shall be cost-effective with respect to construction and

operating costs on a life-cycle cost basis. In developing such

standards, the Secretaries shall consult with an advisory task

force composed of homebuilders, national, State, and local

housing agencies (including public housing agencies), energy

agencies, building code organizations and agencies, energy

efficiency organizations, utility organizations, low-income

housing organizations, and other parties designated by the

Secretaries.

(b) Model Energy Code

If the Secretaries have not, within 1 year after October 24,

1992, established energy efficiency standards under subsection (a)

of this section, all new construction of housing specified in such

subsection shall meet the requirements of CABO Model Energy Code,

1992, or, in the case of multifamily high rises, the requirements

of ASHRAE Standard 90.1-1989.

(c) Revisions of Model Energy Code

If the requirements of CABO Model Energy Code, 1992, or, in the

case of multifamily high rises, ASHRAE Standard 90.1-1989, are

revised at any time, the Secretaries shall, not later than 1 year

after such revision, amend the standards established under

subsection (a) of this section to meet or exceed the requirements

of such revised code or standard unless the Secretaries determine

that compliance with such revised code or standard would not result

in a significant increase in energy efficiency or would not be

technologically feasible or economically justified.

-SOURCE-

(Pub. L. 101-625, title I, Sec. 109, Nov. 28, 1990, 104 Stat. 4093;

Pub. L. 102-486, title I, Sec. 101(c)(1), Oct. 24, 1992, 106 Stat.

2786.)

-REFTEXT-

REFERENCES IN TEXT

The National Housing Act, referred to in subsec. (a)(1)(A), 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. For complete classification of this Act to

the Code, see section 1701 of Title 12 and Tables.

The Housing Act of 1949, referred to in subsec. (a)(1)(B), is act

July 15, 1949, ch. 338, 63 Stat. 413, as amended. Title V of the

Act is classified generally to subchapter III (Sec. 1471 et seq.)

of chapter 8A of this title. For complete classification of this

Act to the Code, see Short Title note set out under section 1441 of

this title and Tables.

-MISC1-

AMENDMENTS

1992 - Pub. L. 102-486 amended section generally. Prior to

amendment, section read as follows: "The Secretary of Housing and

Urban Development shall, not later than one year after November 28,

1990, promulgate energy efficiency standards for new construction

of public and assisted housing and single-family and multifamily

residential housing (other than manufactured homes) subject to

mortgages under the National Housing Act. Such standards shall meet

or exceed the provisions of the most recent edition of the Model

Energy Code of the Council of American Building Officials and shall

be cost-effective with respect to construction and operating costs.

In developing such standards the Secretary shall consult with an

advisory task force composed of homebuilders, national, State, and

local housing agencies (including public housing agencies), energy

agencies and building code organizations and agencies, energy

efficiency organizations, utility organizations, low-income housing

organizations, and other parties designated by the Secretary."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 8013, 12745 of this

title; title 12 section 1701q; title 38 section 3704.

-End-

-CITE-

42 USC Sec. 12710 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER I - GENERAL PROVISIONS AND POLICIES

-HEAD-

Sec. 12710. Capacity study

-STATUTE-

(a) In general

The Secretary shall ensure that the Department of Housing and

Urban Development has adequate capacity and resources, including

staff and training programs, to carry out its mission and

responsibilities to implement the provisions of this Act, including

the ability of the Department to carry out the multifamily mortgage

insurance program, and the ability to respond to areas identified

as "material weaknesses" by the Office of the Inspector General in

financial audits or other reports.

(b) Report

Not later than 60 days after November 28, 1990, and annually

thereafter, the Secretary shall prepare and submit to the Committee

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

Committee on Banking, Finance and Urban Affairs of the House of

Representatives a study detailing the Department's plan to maintain

such capacity, together with any recommendations for legislative

and administrative action as the Secretary determines to be

appropriate.

-SOURCE-

(Pub. L. 101-625, title I, Sec. 110, Nov. 28, 1990, 104 Stat. 4093;

Pub. L. 102-550, title IV, Sec. 407, Oct. 28, 1992, 106 Stat.

3778.)

-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.

-MISC1-

AMENDMENTS

1992 - Subsec. (a). Pub. L. 102-550 struck out ", and" after

"responsibilities" and substituted for period at end "and the

ability to respond to areas identified as 'material weaknesses' by

the Office of the Inspector General in financial audits or other

reports."

-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.

-End-

-CITE-

42 USC Sec. 12711 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER I - GENERAL PROVISIONS AND POLICIES

-HEAD-

Sec. 12711. Protection of State and local authority

-STATUTE-

Notwithstanding any other provision of this subchapter or

subchapter II of this chapter, the Secretary shall not establish

any criteria for allocating or denying funds made available under

programs administered by the Secretary based on the adoption,

continuation, or discontinuation by a jurisdiction of any public

policy, regulation, or law that is (1) adopted, continued, or

discontinued in accordance with the jurisdiction's duly established

authority, and (2) not in violation of any Federal law.

-SOURCE-

(Pub. L. 101-625, title I, Sec. 111, Nov. 28, 1990, 104 Stat.

4093.)

-End-

-CITE-

42 USC Sec. 12712 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER I - GENERAL PROVISIONS AND POLICIES

-HEAD-

Sec. 12712. 5-year energy efficiency plan

-STATUTE-

(a) Establishment

The Secretary of Housing and Urban Development shall establish a

plan for activities to be undertaken and policies to be adopted by

the Secretary within the 5-year period beginning upon the

submission of the plan to the Congress under subsection (d) of this

section to provide for, encourage, and improve energy efficiency in

newly constructed, rehabilitated, and existing housing. In

developing the plan, the Secretary shall consider, as appropriate,

any energy assessments under section 944.

(b) Initial plan

The Secretary of Housing and Urban Development shall establish

the first plan under this section not later than the expiration of

the 1-year period beginning on November 28, 1990.

(c) Updates

The Secretary of Housing and Urban Development shall revise and

update the plan under this section not less than once for each

2-year period, the first such 2-year period beginning on the date

of the submission of the initial plan under subsection (b) of this

section to the Congress (as provided in subsection (d) of this

section). Each such update shall revise the plan for the 5-year

period beginning upon the submission of the updated plan to the

Congress.

(d) Submission to Congress

The Secretary of Housing and Urban Development shall submit the

initial plan established under subsection (b) of this section and

any updated plans under subsection (c) of this section to the

Congress not later than the date by which such plans are to be

established or updated under such paragraphs.

-SOURCE-

(Pub. L. 101-625, title IX, Sec. 945, Nov. 28, 1990, 104 Stat.

4416.)

-REFTEXT-

REFERENCES IN TEXT

Section 944, referred to in subsec. (a), is section 944 of Pub.

L. 101-625, which is set out below.

-COD-

CODIFICATION

Section was enacted as part of title IX of the Cranston-Gonzalez

National Affordable Housing Act, and not as part of title I of such

Act which comprises this subchapter.

-MISC1-

ENERGY EFFICIENT MORTGAGES PILOT PROGRAM

Pub. L. 102-550, title V, Sec. 513, Oct. 28, 1992, 106 Stat.

3786, provided that:

"(a) Establishment of Pilot Program. -

"(1) In general. - Not later than 6 months after the date of

enactment of this Act [Oct. 28, 1992], the Secretary of Housing

and Urban Development (hereafter referred to as the 'Secretary')

shall establish an energy efficient mortgage pilot program in 5

States, to promote the purchase of existing energy efficient

residential buildings and the installation of cost-effective

improvements in existing residential buildings.

"(2) Pilot program. - The pilot program established under this

subsection shall include the following criteria, where

applicable:

"(A) Origination. - The lender shall originate a housing loan

that is insured under title II of the National Housing Act [12

U.S.C. 1707 et seq.] in accordance with the applicable

requirements.

"(B) Approval. - The mortgagor's base loan application shall

be approved if the mortgagor's income and credit record is

found to be satisfactory.

"(C) Cost of improvements. - The cost of cost-effective

energy efficiency improvements shall not exceed the greater of

-

"(i) 5 percent of the property value (not to exceed

$8,000); or

"(ii) $4,000.

"(3) Authority for mortgagees. - In granting mortgages under

the pilot program established pursuant to this subsection, the

Secretary shall grant mortgagees the authority -

"(A) to permit the final loan amount to exceed the loan

limits established under title II of the National Housing Act

[12 U.S.C. 1707 et seq.] by an amount not to exceed 100 percent

of the cost of the cost-effective energy efficiency

improvements, if the mortgagor's request to add the cost of

such improvements is received by the mortgagee prior to funding

of the base loan;

"(B) to hold in escrow all funds provided to the mortgagor to

undertake the energy efficiency improvements until the

efficiency improvements are actually installed; and

"(C) to transfer or sell the energy efficient mortgage to the

appropriate secondary market agency, after the mortgage is

issued, but before the energy efficiency improvements are

actually installed.

"(4) Promotion of pilot program. - The Secretary shall

encourage participation in the energy efficient mortgage pilot

program by -

"(A) making available information to lending agencies and

other appropriate authorities regarding the availability and

benefits of energy efficient mortgages;

"(B) requiring mortgagees and designated lending authorities

to provide written notice of the availability and benefits of

the pilot program to mortgagors applying for financing in those

States designated by the Secretary as participating under the

pilot program; and

"(C) requiring each applicant for a mortgage insured under

title II of the National Housing Act [12 U.S.C. 1707 et seq.]

in those States participating under the pilot program to sign a

statement that such applicant has been informed of the program

requirements and understands the benefits of energy efficient

mortgages.

"(5) Training program. - Not later than 9 months after the date

of enactment of this Act [Oct. 28, 1992], the Secretary, in

consultation with the Secretary of Energy, shall establish and

implement a program for training personnel at relevant lending

agencies, real estate companies, and other appropriate

organizations regarding the benefits of energy efficient

mortgages and the operation of the pilot program under this

subsection.

"(6) Report. - Not later than 18 months after the date of

enactment of this Act, the Secretary shall prepare and submit a

report to the Congress describing the effectiveness and

implementation of the energy efficient mortgage pilot program as

described under this subsection, and assessing the potential for

expanding the pilot program nationwide.

"(b) Expansion of Program. - Not later than the expiration of the

2-year period beginning on the date of the implementation of the

energy efficient mortgage pilot program under this section, the

Secretary of Housing and Urban Development shall expand the pilot

program on a nationwide basis and shall expand the program to

include new residential housing, unless the Secretary determines

that either such expansion would not be practicable in which case

the Secretary shall submit to the Congress, before the expiration

of such period, a report explaining why either expansion would not

be practicable.

"(c) Definitions. - For purposes of this section:

"(1) The term 'base loan' means any mortgage loan for a

residential building eligible for insurance under title II of the

National Housing Act [12 U.S.C. 1707 et seq.] or title 38, United

States Code, that does not include the cost of cost-effective

energy improvements.

"(2) The term 'cost-effective' means, with respect to energy

efficiency improvements to a residential building, improvements

that result in the total present value cost of the improvements

(including any maintenance and repair expenses) being less than

the total present value of the energy saved over the useful life

of the improvement, when 100 percent of the cost of improvements

is added to the base loan. For purposes of this paragraph,

savings and cost-effectiveness shall be determined pursuant to a

home energy rating report sufficient for purposes of the Federal

National Mortgage Association and the Federal Home Loan Mortgage

Corporation, or by other technically accurate methods.

"(3) The term 'energy efficient mortgage' means a mortgage on a

residential building that recognizes the energy savings of a home

that has cost-effective energy saving construction or

improvements (including solar water heaters, solar-assisted air

conditioners and ventilators, super-insulation, and insulating

glass and film) and that has the effect of not disqualifying a

borrower who, but for the expenditures on energy saving

construction or improvements, would otherwise have qualified for

a base loan.

"(4) The term 'residential building' means any attached or

unattached single family residence.

"(d) Rule of Construction. - This section may not be construed to

affect any other programs of the Secretary of Housing and Urban

Development for energy-efficient mortgages. The pilot program

carried out under this section shall not replace or result in the

termination of such other programs.

"(e) Regulations. - The Secretary shall issue any regulations

necessary to carry out this section not later than the expiration

of the 180-day period beginning on the date of the enactment of

this Act [Oct. 28, 1992]. The regulations shall be issued after

notice and opportunity for public comment pursuant to the

provisions of section 553 of title 5, United States Code

(notwithstanding subsections (a)(2), (b)(B), and (d)(3) of such

section).

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

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

section."

Similar provisions were contained in Pub. L. 102-486, title I,

Sec. 106, Oct. 24, 1992, 106 Stat. 2792.

ENERGY ASSESSMENT REPORT

Section 944 of Pub. L. 101-625 directed Secretary of Housing and

Urban Development to submit a report to Congress, not later than

one year after Nov. 28, 1990, assessing any activity undertaken by

the Secretary to increase energy efficiency in housing, such report

to include an analysis of the Aug. 15, 1990, DOE-HUD program to

expand energy efficiency and increase affordability of

federally-assisted housing, and provided that in such report

Secretary of Housing and Urban Development (in consultation with

Secretary of Energy) was to establish, and include a description

of, a standard measure by which changes over time in residential

energy efficiency could be compared.

UNIFORM MORTGAGE FINANCING PLAN FOR ENERGY EFFICIENCY

Section 946 of Pub. L. 101-625, as amended by Pub. L. 102-486,

title I, Sec. 105(b), Oct. 24, 1992, 106 Stat. 2792; Pub. L.

102-550, title IX, Sec. 914(b), Oct. 28, 1992, 106 Stat. 3877,

provided that:

"(a) Uniform Plan. - The Secretary of Housing and Urban

Development, in consultation with the Secretary of Energy, shall

promulgate a uniform plan to make housing more affordable through

energy efficient mortgages (as such term is defined in section 104

of this Act [42 U.S.C. 12704]). The plan shall be promulgated not

later than 2 years after the date of the enactment of the

Cranston-Gonzalez National Affordable Housing Act [Nov. 28, 1990].

"(b) Task Force. - To develop the plan, the Secretary shall form

a task force to make recommendation[s] on financing energy

efficiency in private mortgages, through the policies of Federal

agencies and federally chartered financial institutions, mortgage

bankers, homebuilders, real estate brokers, private mortgage

insurers, energy suppliers, and nonprofit housing and energy

organizations. The task force shall include, but not be limited to,

individuals representing the Federal Housing Administration

mortgage programs of the Department of Housing and Urban

Development, the Farmers Home Administration mortgage loan and

insurance programs of Department of Agriculture, the Federal Home

Loan Mortgage Corporation, and the Federal National Mortgage

Association. The Task Force shall determine whether notifying

potential home purchasers of the availability of energy efficient

mortgages would promote energy efficiency in residential buildings,

and if so, the Task Force shall recommend appropriate notification

guidelines, and agencies and organizations referred to in the

preceding sentence are authorized to implement such guidelines."

ENERGY EFFICIENCY DEMONSTRATION

Section 961 of Pub. L. 101-625 directed Secretary of Housing and

Urban Development to establish a program to demonstrate various

methods of improving the energy efficiency of existing housing,

provided for funding, provided that the demonstration determine

appropriate design, improvement, and rehabilitation methods and

practices for increasing residential energy efficiency in housing

already constructed, and directed Secretary, as soon as practicable

after Sept. 30, 1991, to submit to Congress a report setting forth

the findings and recommendations of the Secretary as a result of

the demonstration.

-End-

-CITE-

42 USC Sec. 12713 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER I - GENERAL PROVISIONS AND POLICIES

-HEAD-

Sec. 12713. Eligibility under first-time homebuyer programs

-STATUTE-

(a) Eligibility of displaced homemakers and single parents for

Federal assistance for first-time homebuyers

(1) Displaced homemakers

No individual who is a displaced homemaker may be denied

eligibility under any Federal program to assist first-time

homebuyers on the basis that the individual, while a homemaker,

owned a home with his or her spouse or resided in a home owned by

the spouse.

(2) Single parents

No individual who is a single parent may be denied eligibility

under any Federal program to assist first-time homebuyers on the

basis that the individual, while married, owned a home with his

or her spouse or resided in a home owned by the spouse.

(b) Definitions

For purposes of this section:

(1) Displaced homemaker

The term "displaced homemaker" means an individual who -

(A) is an adult;

(B) has not worked full-time, full-year in the labor force

for a number of years but has, during such years, worked

primarily without remuneration to care for the home and family;

and

(C) is unemployed or underemployed and is experiencing

difficulty in obtaining or upgrading employment.

(2) First-time homebuyer

The term "first-time homebuyer" means an individual who has

never, or has not during a specified period of time, had any

present ownership interest in a principal residence.

(3) Single parent

The term "single parent" means an individual who -

(A) is unmarried or legally separated from a spouse; and

(B)(i) has 1 or more minor children for whom the individual

has custody or joint custody; or

(ii) is pregnant.

(c) Applicability

This section shall apply to any Federal program to assist

first-time homebuyers, unless the program is exempted from this

section by a statute that amends this subsection or explicitly

refers to this subsection.

-SOURCE-

(Pub. L. 101-625, title IX, Sec. 956, Nov. 28, 1990, 104 Stat.

4421.)

-COD-

CODIFICATION

Section was enacted as part of title IX of the Cranston-Gonzalez

National Affordable Housing Act, and not as part of title I of such

Act which comprises this subchapter.

-End-

-CITE-

42 USC Sec. 12714 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER I - GENERAL PROVISIONS AND POLICIES

-HEAD-

Sec. 12714. Repealed. Pub. L. 104-99, title IV, Sec. 404(a), Jan.

26, 1996, 110 Stat. 44

-MISC1-

Section, Pub. L. 101-625, title IX, Sec. 957, Nov. 28, 1990, 104

Stat. 4422, related to maximum annual limitation on rent increases

resulting from employment.

EFFECTIVE DATE OF REPEAL

Section 404(a) of Pub. L. 104-99 provided in part that this

section is repealed retroactive to Nov. 28, 1990, and shall be of

no effect.

ECONOMIC INDEPENDENCE

Pub. L. 102-550, title IX, Sec. 923, Oct. 28, 1992, 106 Stat.

3884, which provided that Secretary of Housing and Urban

Development was to immediately implement section 12714 of this

title and that other Federal agencies authorized to assist

low-income families were to take similar steps to encourage

economic independence and the accumulation of assets, was repealed

retroactive to Oct. 28, 1992, by Pub. L. 104-99, title IV, Sec.

404(b), Jan. 26, 1996, 110 Stat. 44, which further provided that

section 923 of Pub. L. 102-550 was to be of no effect.

-End-

-CITE-

42 USC SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING

-HEAD-

SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING

-SECREF-

SUBCHAPTER REFERRED TO IN OTHER SECTIONS

This subchapter is referred to in sections 1437d, 1437f, 1439,

3535, 4852, 5305, 12704, 12705, 12706, 12708, 12711 of this title;

title 12 sections 1441a, 1831q, 1834a; title 25 section 4183; title

26 section 42.

-End-

-CITE-

42 USC Sec. 12721 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING

-HEAD-

Sec. 12721. Findings

-STATUTE-

The Congress finds that -

(1) the Nation has not made adequate progress toward the goal

of national housing policy, as set out in the Housing Act of 1949

[42 U.S.C. 1441 et seq.] and reaffirmed in the Housing and Urban

Development Act of 1968, which would provide decent, safe,

sanitary, and affordable living environments for all Americans;

(2) the supply of affordable rental housing is diminishing;

(3) the Tax Reform Act of 1986 removed major tax incentives for

the production of affordable rental housing;

(4) the living environments of an increasing number of

Americans have deteriorated over the past several years as a

result of reductions in Federal assistance to low-income and

moderate-income families;

(5) many Americans face the possibility of homelessness unless

Federal, State, and local governments work together with the

private sector to develop and rehabilitate the housing stock of

the Nation to provide decent, safe, sanitary, and affordable

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

(6) reliable Federal leadership is needed to achieve an

adequate supply of affordable housing for all Americans;

(7) to achieve the goal of national housing policy, there is a

need to strengthen nationwide a cost-effective community-based

housing partnership designed to -

(A) expand the supply of rental housing that is affordable to

very low-income and low-income families,

(B) improve homeownership opportunities for low-income

families,

(C) carry out comprehensive housing strategies tailored to

local housing market conditions, and

(D) protect the Federal, State, and local investment in

low-income housing to ensure affordability of the housing for

the remaining useful life of the property;

(8) direct assistance to expand the supply of affordable rental

housing should be provided in a way that is more cost-effective

and targeted than tax incentives;

(9) much of the Nation's housing system works very well and

provides a strong base on which national housing policy should

build;

(10) an increasing number of States and local governments have

been successful in producing cost-effective low-income and

moderate-income housing by working in partnership with the

private sector, including nonprofit community development

corporations, community action agencies, neighborhood housing

services corporations, trade unions, groups sponsored by

religious organizations, limited equity cooperatives, and other

tenant organizations;

(11) during the 1980's, nonprofit community housing development

organizations, despite severe obstacles caused by inadequate

funding, have played an increasingly important role in the

production and rehabilitation of affordable housing in

communities across the Nation;

(12) additional financial resources and technical skills must

be made available in local communities if the Nation is to

mobilize the capacity of the private sector, including nonprofit

community housing development organizations, to provide a more

adequate supply of decent, safe, and sanitary housing that is

affordable to very low-income, low-income, and moderate-income

families and meets the need for large family units and other

additional units that are available to very low-income families

receiving rental assistance payments from Federal, State, and

local governments; and

(13) the long-term success of efforts to provide more

affordable housing depends upon tenants and homeowners being

fiscally responsible and able managers.

-SOURCE-

(Pub. L. 101-625, title II, Sec. 202, Nov. 28, 1990, 104 Stat.

4094.)

-REFTEXT-

REFERENCES IN TEXT

The Housing Act of 1949, referred to in par. (1), is act July 15,

1949, ch. 338, 63 Stat. 413, as amended, which is classified

principally to chapter 8A (Sec. 1441 et seq.) of this title. For

complete classification of this Act to the Code, see Short Title

note set out under section 1441 of this title and Tables.

The Housing and Urban Development Act of 1968, referred to in

par. (1), is Pub. L. 90-448, Aug. 1, 1968, 82 Stat. 476, as

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

Short Title of 1968 Amendments note set out under section 1701 of

Title 12, Banks and Banking, and Tables.

The Tax Reform Act of 1986, referred to in par. (3), is Pub. L.

99-514, Oct. 22, 1986, 100 Stat. 2085, as amended. For complete

classification of this Act to the Code, see Short Title of 1986

Amendments note set out under section 1 of Title 26, Internal

Revenue Code, and Tables.

-MISC1-

SHORT TITLE

For short title of this subchapter as the "HOME Investment

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

of this title.

-End-

-CITE-

42 USC Sec. 12722 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING

-HEAD-

Sec. 12722. Purposes

-STATUTE-

The purposes of this subchapter are -

(1) to expand the supply of decent, safe, sanitary, and

affordable housing, with primary attention to rental housing, for

very low-income and low-income Americans;

(2) to mobilize and strengthen the abilities of States and

units of general local government throughout the United States to

design and implement strategies for achieving an adequate supply

of decent, safe, sanitary, and affordable housing;

(3) to provide participating jurisdictions, on a coordinated

basis, with the various forms of Federal housing assistance,

including capital investment, mortgage insurance, rental

assistance, and other Federal assistance, needed -

(A) to expand the supply of decent, safe, sanitary, and

affordable housing;

(B) to make new construction, rehabilitation, substantial

rehabilitation, and acquisition of such housing feasible; and

(C) to promote the development of partnerships among the

Federal Government, States and units of general local

government, private industry, and nonprofit organizations able

to utilize effectively all available resources to provide more

of such housing;

(4) to make housing more affordable for very low-income and

low-income families through the use of tenant-based rental

assistance;

(5) to develop and refine, on an ongoing basis, a selection of

model programs incorporating the most effective methods for

providing decent, safe, sanitary, and affordable housing, and

accelerate the application of such methods where appropriate

throughout the United States to achieve the prudent and efficient

use of funds made available under this subchapter;

(6) to expand the capacity of nonprofit community housing

development organizations to develop and manage decent, safe,

sanitary, and affordable housing;

(7) to ensure that Federal investment produces housing stock

that is available and affordable to low-income families for the

property's remaining useful life, is appropriate to the

neighborhood surroundings, and, wherever appropriate, is mixed

income housing;

(8) to increase the investment of private capital and the use

of private sector resources in the provision of decent, safe,

sanitary, and affordable housing;

(9) to allocate Federal funds for investment in affordable

housing among participating jurisdictions by formula allocation;

(10) to leverage those funds insofar as practicable with State

and local matching contributions and private investment;

(11) to establish for each participating jurisdiction a HOME

Investment Trust Fund with a line of credit for investment in

affordable housing, with repayments back to its HOME Investment

Trust Fund being made available for reinvestment by the

jurisdiction;

(12) to provide credit enhancement for affordable housing by

utilizing the capacities of existing agencies and mortgage

finance institutions when most efficient and supplementing their

activities when appropriate; and

(13) to assist very low-income and low-income families to

obtain the skills and knowledge necessary to become responsible

homeowners and tenants.

-SOURCE-

(Pub. L. 101-625, title II, Sec. 203, Nov. 28, 1990, 104 Stat.

4095.)

-End-

-CITE-

42 USC Sec. 12723 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING

-HEAD-

Sec. 12723. Coordinated Federal support for housing strategies

-STATUTE-

The Secretary shall make assistance under this subchapter

available to participating jurisdictions, through the Office of the

Assistant Secretary for Housing-FHA Commissioner of the Department

of Housing and Urban Development, to the maximum extent

practicable, in coordination with mortgage insurance, rental

assistance, and other housing assistance appropriate to the

efficient and timely completion of activities under this

subchapter.

-SOURCE-

(Pub. L. 101-625, title II, Sec. 204, Nov. 28, 1990, 104 Stat.

4096.)

-End-

-CITE-

42 USC Sec. 12724 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING

-HEAD-

Sec. 12724. Authorization

-STATUTE-

There are authorized to be appropriated to carry out this

subchapter $2,086,000,000 for fiscal year 1993, and $2,173,612,000

for fiscal year 1994, of which -

(1) not more than $14,000,000 for fiscal year 1993, and

$25,000,000 for fiscal year 1994, shall be for community housing

partnership activities authorized under section 12773 of this

title; and

(2) not more than $11,000,000 for fiscal year 1993, and

$22,000,000 for fiscal year 1994, shall be for activities in

support of State and local housing strategies authorized under

part C of this subchapter.

-SOURCE-

(Pub. L. 101-625, title II, Sec. 205, Nov. 28, 1990, 104 Stat.

4096; Pub. L. 102-550, title II, Sec. 201, Oct. 28, 1992, 106 Stat.

3751; Pub. L. 103-120, Sec. 5, Oct. 27, 1993, 107 Stat. 1148.)

-MISC1-

AMENDMENTS

1993 - Pub. L. 103-120 substituted "$25,000,000 for fiscal year

1994" for "$14,000,000 for fiscal year 1994" in par. (1) and

"$22,000,000 for fiscal year 1994" for "$11,000,000 for fiscal year

1994" in par. (2).

1992 - Pub. L. 102-550 amended section generally. Prior to

amendment, section read as follows: "There are authorized to be

appropriated to carry out this subchapter $1,000,000,000 for fiscal

year 1991, and $2,086,000,000 for fiscal year 1992, of which -

"(1) not more than $14,000,000 for fiscal year 1991, and

$14,000,000 for fiscal year 1992, shall be for community housing

partnership activities authorized under section 12773 of this

title; and

"(2) not more than $11,000,000 for fiscal year 1991, and

$11,000,000 for fiscal year 1992, shall be for activities in

support of State and local housing strategies authorized under

part C of this subchapter."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 12746, 12747 of this

title.

-End-

-CITE-

42 USC Sec. 12725 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING

-HEAD-

Sec. 12725. Notice

-STATUTE-

The Secretary shall issue regulations to implement the provisions

of this subchapter after notice and an opportunity for comment

pursuant to section 553 of title 5. Such regulations shall become

effective not later than 180 days after November 28, 1990.

-SOURCE-

(Pub. L. 101-625, title II, Sec. 206, Nov. 28, 1990, 104 Stat.

4096.)

-End-

-CITE-

42 USC Part A - HOME Investment Partnerships 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-

PART A - HOME INVESTMENT PARTNERSHIPS

-SECREF-

PART REFERRED TO IN OTHER SECTIONS

This part is referred to in section 12771 of this title.

-End-

-CITE-

42 USC Sec. 12741 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. 12741. Authority

-STATUTE-

The Secretary is authorized to make funds available to

participating jurisdictions for investment to increase the number

of families served with decent, safe, sanitary, and affordable

housing and expand the long-term supply of affordable housing in

accordance with provisions of this part.

-SOURCE-

(Pub. L. 101-625, title II, Sec. 211, Nov. 28, 1990, 104 Stat.

4096.)

-End-

-CITE-

42 USC Sec. 12742 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. 12742. Eligible uses of investment

-STATUTE-

(a) Housing uses

(1) In general

Funds made available under this part may be used by

participating jurisdictions to provide incentives to develop and

support affordable rental housing and homeownership affordability

through the acquisition, new construction, reconstruction, or

moderate or substantial rehabilitation of affordable housing,

including real property acquisition, site improvement,

conversion, demolition, and other expenses, including financing

costs, relocation expenses of any displaced persons, families,

businesses, or organizations, to provide for the payment of

reasonable administrative and planning costs, to provide for the

payment of operating expenses of community housing development

organizations, and to provide tenant-based rental assistance. For

the purpose of this part, the term "affordable housing" includes

permanent housing for disabled homeless persons, transitional

housing, and single room occupancy housing.

(2) Preference to rehabilitation

A participating jurisdiction shall give preference to

rehabilitation of substandard housing unless the jurisdiction

determines that -

(A) such rehabilitation is not the most cost effective way to

meet the jurisdiction's need to expand the supply of affordable

housing; and

(B) the jurisdiction's housing needs cannot be met through

rehabilitation of the available stock.

The Secretary shall not restrict a participating jurisdiction's

choice of rehabilitation, substantial rehabilitation, new

construction, reconstruction, acquisition, or other eligible

housing use unless such restriction is explicitly authorized

under section 12753(2) of this title.

(3) Tenant-based rental assistance

(A) In general

A participating jurisdiction may use funds provided under

this part for tenant-based rental assistance only if -

(i) the jurisdiction certifies that the use of funds under

this part for tenant-based rental assistance is an essential

element of the jurisdiction's annual housing strategy for

expanding the supply, affordability, and availability of

decent, safe, sanitary, and affordable housing, and specifies

the local market conditions that lead to the choice of this

option; and

(ii) the tenant-based rental assistance is provided in

accordance with written tenant selection policies and

criteria that are consistent with the purposes of providing

housing to very low- and low-income families and are

reasonably related to preference rules established under

section 1437d(c)(4)(A) (!1) of this title.

(B) Fair share not affected

A jurisdiction's section 8 [42 U.S.C. 1437f] fair share

allocation shall be unaffected by the use of assistance under

this subchapter.

(C) 24-month contracts

Rental assistance contracts made available with assistance

under this subchapter shall be for not more than 24 months,

except that assistance to a family may be renewed.

(D) Use of section 1437f assistance

In any case where assistance under section 1437f of this

title becomes available to a participating jurisdiction,

recipients of rental assistance under this subchapter shall

qualify for tenant selection preferences to the same extent as

when they received the rental assistance under this subchapter.

A rental assistance program under this subchapter shall meet

minimum criteria prescribed by the Secretary, such as housing

quality standards and standards regarding the reasonableness of

the rent.

(E) Security deposit assistance

A jurisdiction using funds provided under this part for

tenant-based rental assistance may use such funds to provide

loans or grants to very low- and low-income families for

security deposits for rental of dwelling units. Assistance

under this subparagraph does not preclude assistance under any

other provision of this paragraph.

(4) Redesignated (3)

(5) Lead-based paint hazards

A participating jurisdiction may use funds provided under this

part for the evaluation and reduction of lead-based paint

hazards, as defined in section 4851b of this title.

(b) Investments

Participating jurisdictions shall have discretion to invest funds

made available under this part as equity investments,

interest-bearing loans or advances, noninterest-bearing loans or

advances, interest subsidies or other forms of assistance that the

Secretary has determined to be consistent with the purposes of this

subchapter. Each participating jurisdiction shall have the right to

establish the terms of assistance.

(c) Administrative costs

In each fiscal year, each participating jurisdiction may use not

more than 10 percent of the funds made available under this part to

the jurisdiction for such year for any administrative and planning

costs of the jurisdiction in carrying out this part, including the

costs of the salaries of persons engaged in administering and

managing activities assisted with funds made available under this

part.

(d) Prohibited uses

Funds made available under this part may not be used to -

(1) defray any administrative cost of a participating

jurisdiction that exceed the amount specified under subsection

(c) of this section,

(2) provide tenant-based rental assistance for the special

purposes of the existing section 8 [42 U.S.C. 1437f] program,

including replacing public housing that is demolished or disposed

of, preserving federally assisted housing, assisting in the

disposition of housing owned or held by the Secretary, preventing

displacement from rental rehabilitation projects, or extending or

renewing tenant-based assistance under section 1437f of this

title,

(3) provide non-Federal matching contributions required under

any other Federal program,

(4) provide assistance authorized under section 1437g of this

title,

(5) carry out activities authorized under section 1437g(d)(1)

(!1) of this title, or

(6) provide assistance to eligible low-income housing under the

Emergency Low Income Housing Preservation Act of 1987 or the

Low-Income Housing Preservation and Resident Homeownership Act of

1990 [12 U.S.C. 4101 et seq.].

(e) Cost limits

(1) In general

The Secretary shall establish limits on the amount of funds

under this part that may be invested on a per unit basis. For

multifamily housing, such limits shall not be less than the per

unit dollar amount limitations set forth in section

1715l(d)(3)(ii) of title 12, as such limitations may be adjusted

in accordance therewith, except that for purposes of this

subsection the Secretary shall, by regulation, increase the per

unit dollar amount limitations in any geographical area by an

amount, not to exceed 140 percent, that equals the amount by

which the costs of multifamily housing construction in the area

exceed the national average of such costs. The limits shall be

established on a market-by-market basis, with adjustments made

for number of bedrooms, and shall reflect the actual cost of new

construction, reconstruction, or rehabilitation of housing that

meets applicable State and local housing and building codes and

the cost of land, including necessary site improvements.

Adjustments shall be made annually to reflect inflation. Separate

limits may be set for different eligible activities.

(2) Criteria

In calculating per unit limits, the Secretary shall take into

account that assistance under this subchapter is intended to -

(A) provide nonluxury housing with suitable amenities;

(B) operate effectively in all jurisdictions;

(C) facilitate mixed-income housing; and

(D) reflect the costs associated with meeting the special

needs of tenants or homeowners that the housing is designed to

serve.

(3) Consultation

In calculating cost limits, the Secretary shall consult with

organizations that have expertise in the development of

affordable housing, including national nonprofit organizations

and national organizations representing private development firms

and State and local governments.

(f) Certification of compliance

The requirements of section 3545(d) of this title shall be

satisfied by a certification by a participating jurisdiction to the

Secretary that the combination of Federal assistance provided to

any housing project shall not be any more than is necessary to

provide affordable housing.

(g) Limitation on operating assistance

A participating jurisdiction may not use more than 5 percent of

its allocation under this part for the payment of operating

expenses for community housing development organizations.

-SOURCE-

(Pub. L. 101-625, title II, Sec. 212, Nov. 28, 1990, 104 Stat.

4097; Pub. L. 102-550, title II, Secs. 203(a), 204-207(b), (d),

title X, Sec. 1012(e), Oct. 28, 1992, 106 Stat. 3752-3754, 3905;

Pub. L. 105-276, title V, Sec. 522(b)(5), Oct. 21, 1998, 112 Stat.

2565.)

-REFTEXT-

REFERENCES IN TEXT

Section 1437d(c)(4)(A) of this title, referred to in subsec.

(a)(3)(A)(ii), was in the original "section 6(c)(4)(A) of the

Housing Act of 1937", and was translated as reading "section

6(c)(4)(A) of the United States Housing Act of 1937", act Sept. 1,

1937, ch. 896, to reflect the probable intent of Congress.

Section 1437g(d)(1) of this title, referred to in subsec. (d)(5),

was in the original "section 9(d)(1) of the Housing Act of 1937",

and was translated as reading "section 9(d)(1) of the United States

Housing Act of 1937", act Sept. 1, 1937, ch. 896, to reflect the

probable intent of Congress.

The Emergency Low Income Housing Preservation Act of 1987,

referred to in subsec. (d)(6), is title II of Pub. L. 100-242, Feb.

5, 1988, 102 Stat. 1877, as amended, which was classified

principally as a note under section 1715l of Title 12, Banks and

Banking. Title II of Pub. L. 100-242, was amended generally by Pub.

L. 101-625, title VI, Sec. 601(a), Nov. 28, 1990, 104 Stat. 4249,

and is now known as the Low-Income Housing Preservation and

Resident Homeownership Act of 1990, which is classified principally

to chapter 42 (Sec. 4101 et seq.) of Title 12. For complete

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

out under section 4101 of Title 12 and Tables.

-MISC1-

AMENDMENTS

1998 - Subsec. (d)(5). Pub. L. 105-276 substituted "section

1437g(d)(1)" for "section 1437l".

1992 - Subsec. (a)(1). Pub. L. 102-550, Sec. 207(a), inserted "to

provide for the payment of reasonable administrative and planning

costs, to provide for the payment of operating expenses of

community housing development organizations," after "or

organizations,".

Pub. L. 102-550, Sec. 205, inserted at end "For the purpose of

this part, the term 'affordable housing' includes permanent housing

for disabled homeless persons, transitional housing, and single

room occupancy housing."

Subsec. (a)(2). Pub. L. 102-550, Sec. 203(a)(1), struck out

"under paragraph (3) of this subsection or" after "authorized" in

concluding provisions.

Subsec. (a)(3). Pub. L. 102-550, Sec. 204(b), added cl. (ii) of

par. (3)(A) and struck out former cl. (ii) which read as follows:

"the tenant-based rental assistance is provided to persons from the

waiting lists eligible for section 8 assistance in accordance with

the applicable preferences."

Pub. L. 102-550, Sec. 204(a), added subpar. (E).

Pub. L. 102-550, Sec. 203(a)(2), (3), redesignated par. (4) as

(3) and struck out former par. (3) which provided for conditions

for new construction of housing.

Subsec. (a)(4). Pub. L. 102-550, Sec. 203(a)(3), redesignated

par. (4) as (3).

Subsec. (a)(5). Pub. L. 102-550, Sec. 1012(e), added par. (5).

Subsec. (c). Pub. L. 102-550, Sec. 207(b)(3), added subsec. (c).

Former subsec. (c) redesignated (d).

Pub. L. 102-550, Sec. 207(b)(1), inserted before comma at end of

par. (1) "that exceed the amount specified under subsection (c) of

this section".

Subsec. (d). Pub. L. 102-550, Sec. 207(b)(2), redesignated

subsec. (c) as (d). Former subsec. (d) redesignated (e).

Pub. L. 102-550, Sec. 206, inserted after first sentence of par.

(1) "For multifamily housing, such limits shall not be less than

the per unit dollar amount limitations set forth in section

1715l(d)(3)(ii) of title 12, as such limitations may be adjusted in

accordance therewith, except that for purposes of this subsection

the Secretary shall, by regulation, increase the per unit dollar

amount limitations in any geographical area by an amount, not to

exceed 140 percent, that equals the amount by which the costs of

multifamily housing construction in the area exceed the national

average of such costs."

Subsecs. (e), (f). Pub. L. 102-550, Sec. 207(b)(2), redesignated

subsecs. (d) and (e) as (e) and (f), respectively.

Subsec. (g). Pub. L. 102-550, Sec. 207(d), added subsec. (g).

EFFECTIVE DATE OF 1998 AMENDMENT

Amendment by title V of Pub. L. 105-276 effective and applicable

beginning upon Oct. 1, 1999, except as otherwise provided, with

provision that Secretary may implement amendment before such date,

except to extent that such amendment provides otherwise, and with

savings provision, see section 503 of Pub. L. 105-276, set out as a

note under section 1437 of this title.

EFFECTIVE DATE OF 1992 AMENDMENT

Amendment by sections 203-207 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 12747, 12772 of this

title; title 12 section 4116.

-FOOTNOTE-

(!1) See References in Text note below.

-End-

-CITE-

42 USC Sec. 12743 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. 12743. Development of model programs

-STATUTE-

(a) In general

The Secretary shall -

(1) in cooperation with participating jurisdictions,

government-sponsored mortgage finance corporations, nonprofit

organizations, the private sector, and other appropriate parties,

develop, test, evaluate, refine, and, as necessary, replace a

selection of model programs designed to carry out the purposes of

this subchapter;

(2) make available to participating jurisdictions alternative

model programs, which shall include suggested guidelines,

procedures, forms, legal documents and such other elements as the

Secretary determines to be appropriate;

(3) assure, insofar as is feasible, the availability of an

appropriate variety of model programs designed for local market

conditions, housing problems, project characteristics, and

managerial capacities as they differ among participating

jurisdictions;

(4) negotiate and enter into agreements with agencies of the

Federal Government, participating jurisdictions, private

financial institutions, government-sponsored mortgage finance

corporations, nonprofit organizations, and other entities to

provide such services, products, or financing as may be required

for the implementation of a model program;

(5) provide detailed information on model programs as requested

by participating jurisdictions, private financial institutions,

developers, nonprofit organizations, and other interested

parties; and

(6) encourage the use of such model programs to achieve

efficiency, economies of scale, and effectiveness in the

investment of funds made available under this part through

third-party training, printed materials, and such other means of

support as the Secretary determines will achieve the purpose of

this subchapter.

(b) Adoption of programs

Except as provided in section 12753(2) of this title, each

participating jurisdiction shall have the discretion to adopt one

or more model programs, adapt one or more model programs to its own

requirements, design additional forms of assistance by itself or in

cooperation with other participating jurisdictions, and suggest

additional model programs for adoption by the Secretary as the

participating jurisdiction may deem appropriate, and the Secretary

may assist a participating jurisdiction in adopting, adapting, or

designing one or more model programs.

(c) Part D programs

The selection of model programs to be made available for adoption

or adaptation shall include programs meeting the criteria set forth

in part D of this subchapter.

-SOURCE-

(Pub. L. 101-625, title II, Sec. 213, Nov. 28, 1990, 104 Stat.

4100.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 12753, 12801 of this

title.

-End-

-CITE-

42 USC Sec. 12744 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. 12744. Income targeting

-STATUTE-

Each participating jurisdiction shall invest funds made available

under this part within each fiscal year so that -

(1) with respect to rental assistance and rental units -

(A) not less than 90 percent of (i) the families receiving

such rental assistance are families whose incomes do not exceed

60 percent of the median family income for the area, as

determined by the Secretary with adjustments for smaller and

larger families, (except that the Secretary may establish

income ceilings higher or lower than 60 percent of the median

for the area on the basis of the Secretary's findings that such

variations are necessary because of prevailing levels of

construction cost or fair market rent, or unusually high or low

family income) at the time of occupancy or at the time funds

are invested, whichever is later, or (ii) the dwelling units

assisted with such funds are occupied by families having such

incomes; and

(B) the remainder of (i) the families receiving such rental

assistance are households that qualify as low-income families

(other than families described in subparagraph (A)) at the time

of occupancy or at the time funds are invested, whichever is

later, or (ii) the dwelling units assisted with such funds are

occupied by such households;

(2) with respect to homeownership assistance, 100 percent of

such funds are invested with respect to dwelling units that are

occupied by households that qualify as low-income families; and

(3) all such funds are invested with respect to housing that

qualifies as affordable housing under section 12745 of this

title.

-SOURCE-

(Pub. L. 101-625, title II, Sec. 214, Nov. 28, 1990, 104 Stat.

4101; Pub. L. 103-233, title II, Sec. 202, Apr. 11, 1994, 108 Stat.

364; Pub. L. 105-276, title V, Sec. 599B(a), Oct. 21, 1998, 112

Stat. 2660.)

-MISC1-

AMENDMENTS

1998 - Par. (2). Pub. L. 105-276 struck out "at the time of

occupancy or at the time funds are invested, whichever is later"

before "; and".

1994 - Par. (1)(A). Pub. L. 103-233, Sec. 202(1), substituted

"(i) the families receiving such rental assistance are" for "such

funds are invested with respect to dwelling units that are occupied

by", ", or" for ", and" before cl. (ii), and added cl. (ii).

Par. (1)(B). Pub. L. 103-233, Sec. 202(2), substituted "(i) the

families receiving such rental assistance are" for "such funds are

invested with respect to dwelling units that are occupied by" and

added cl. (ii).

EFFECTIVE DATE OF 1998 AMENDMENT

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

2660, provided that: "The amendments made by this section [amending

this section and section 12745 of this title] are made on, and

shall apply beginning upon, the date of the enactment of this Act

[Oct. 21, 1998]."

EFFECTIVE DATE OF 1994 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 sections 12747, 12802 of this

title.

-End-

-CITE-

42 USC Sec. 12745 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. 12745. Qualification as affordable housing

-STATUTE-

(a) Rental housing

(1) Qualification

Housing that is for rental shall qualify as affordable housing

under this subchapter only if the housing -

(A) bears rents not greater than the lesser of (i) the

existing fair market rent for comparable units in the area as

established by the Secretary under section 1437f of this title,

or (ii) a rent that does not exceed 30 percent of the adjusted

income of a family whose income equals 65 percent of the median

income for the area, as determined by the Secretary, with

adjustment for number of bedrooms in the unit, except that the

Secretary may establish income ceilings higher or lower than 65

percent of the median for the area on the basis of the

Secretary's findings that such variations are necessary because

of prevailing levels of construction costs or fair market

rents, or unusually high or low family incomes;

(B) has not less than 20 percent of the units (i) occupied by

very low-income families who pay as a contribution toward rent

(excluding any Federal or State rental subsidy provided on

behalf of the family) not more than 30 percent of the family's

monthly adjusted income as determined by the Secretary, or (ii)

occupied by very low-income families and bearing rents not

greater than the gross rent for rent-restricted residential

units as determined under section 42(g)(2) of title 26;

(C) is occupied only by households that qualify as low-income

families;

(D) is not refused for leasing to a holder of a voucher or

certificate of eligibility under section 1437f of this title

because of the status of the prospective tenant as a holder of

such voucher or certificate of eligibility;

(E) will remain affordable, according to binding commitments

satisfactory to the Secretary, for the remaining useful life of

the property, as determined by the Secretary, without regard to

the term of the mortgage or to transfer of ownership, or for

such other period that the Secretary determines is the longest

feasible period of time consistent with sound economics and the

purposes of this Act, except upon a foreclosure by a lender (or

upon other transfer in lieu of foreclosure) if such action (i)

recognizes any contractual or legal rights of public agencies,

nonprofit sponsors, or others to take actions that would avoid

termination of low-income affordability in the case of

foreclosure or transfer in lieu of foreclosure, and (ii) is not

for the purpose of avoiding low income affordability

restrictions, as determined by the Secretary; and

(F) if newly constructed, meets the energy efficiency

standards promulgated by the Secretary in accordance with

section 12709 of this title.

(2) Adjustment of qualifying rent

The Secretary may adjust the qualifying rent established for a

project under subparagraph (A) of paragraph (1), only if the

Secretary finds that such adjustment is necessary to support the

continued financial viability of the project and only by such

amount as the Secretary determines is necessary to maintain

continued financial viability of the project.

(3) Increases in tenant income

Housing shall qualify as affordable housing despite a temporary

noncompliance with subparagraph (B) or (C) of paragraph (1) if

such noncompliance is caused by increases in the incomes of

existing tenants and if actions satisfactory to the Secretary are

being taken to ensure that all vacancies are filled in accordance

with paragraph (1) until such noncompliance is corrected. Tenants

who no longer qualify as low-income families shall pay as rent

the lesser of the amount payable by the tenant under State or

local law or 30 percent of the family's adjusted monthly income,

as recertified annually. The preceding sentence shall not apply

with respect to funds made available under this Act for units

that have been allocated a low-income housing tax credit by a

housing credit agency pursuant to section 42 of title 26.

(4) Mixed-income project

Housing that accounts for less than 100 percent of the dwelling

units in a project shall qualify as affordable housing if such

housing meets the criteria of this section.

(5) Mixed-use project

Housing in a project that is designed in part for uses other

than residential use shall qualify as affordable housing if such

housing meets the criteria of this section.

(6) Waiver of qualifying rent

(A) In general

For the purpose of providing affordable housing appropriate

for families described in subparagraph (B), the Secretary may,

upon the application of the project owner, waive the

applicability of subparagraph (A) of paragraph (1) with respect

to a dwelling unit if -

(i) the unit is occupied by such a family, on whose behalf

tenant-based assistance is provided under section 1437f of

this title;

(ii) the rent for the unit is not greater than the existing

fair market rent for comparable units in the area, as

established by the Secretary under section 1437f of this

title; and

(iii) the Secretary determines that the waiver, together

with waivers under this paragraph for other dwelling units in

the project, will result in the use of amounts described in

clause (iii) (!1) in an effective manner that will improve

the provision of affordable housing for such families.

(B) Eligible families

A family described in this subparagraph is a family that

consists of at least one elderly person (who is the head of

household) and one or more of such person's grand (!2)

children, great grandchildren, great nieces, great nephews, or

great great grandchildren (as defined by the Secretary), but

does not include any parent of such grandchildren, great

grandchildren, great nieces, great nephews, or great great

grandchildren. Such term includes any such grandchildren, great

grandchildren, great nieces, great nephews, or great great

grandchildren who have been legally adopted by such elderly

person.

(b) Homeownership

Housing that is for homeownership shall qualify as affordable

housing under this subchapter only if the housing -

(1) has an initial purchase price that does not exceed 95

percent of the median purchase price for the area, as determined

by the Secretary with such adjustments for differences in

structure, including whether the housing is single-family or

multifamily, and for new and old housing as the Secretary

determines to be appropriate;

(2) is the principal residence of an owner whose family

qualifies as a low-income family -

(A) in the case of a contract to purchase existing housing,

at the time of purchase;

(B) in the case of a lease-purchase agreement for existing

housing or for housing to be constructed, at the time the

agreement is signed; or

(C) in the case of a contract to purchase housing to be

constructed, at the time the contract is signed;

(3) is subject to resale restrictions that are established by

the participating jurisdiction and determined by the Secretary to

be appropriate to -

(A) allow for subsequent purchase of the property only by

persons who meet the qualifications specified under paragraph

(2), at a price which will -

(i) provide the owner with a fair return on investment,

including any improvements, and

(ii) ensure that the housing will remain affordable to a

reasonable range of low-income homebuyers; or

(B) recapture the investment provided under this subchapter

in order to assist other persons in accordance with the

requirements of this subchapter, except where there are no net

proceeds or where the net proceeds are insufficient to repay

the full amount of the assistance; and

(4) if newly constructed, meets the energy efficiency standards

promulgated by the Secretary in accordance with section 12709 of

this title.

-SOURCE-

(Pub. L. 101-625, title II, Sec. 215, Nov. 28, 1990, 104 Stat.

4101; Pub. L. 102-550, title II, Secs. 208, 209, Oct. 28, 1992, 106

Stat. 3754; Pub. L. 103-233, title II, Sec. 203, Apr. 11, 1994, 108

Stat. 364; Pub. L. 105-276, title V, Sec. 599B(b), Oct. 21, 1998,

112 Stat. 2660; Pub. L. 106-569, title IX, Sec. 904, Dec. 27, 2000,

114 Stat. 3027.)

-REFTEXT-

REFERENCES IN TEXT

This Act, referred to in subsec. (a)(1)(E), (3), 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.

-MISC1-

AMENDMENTS

2000 - Subsec. (a)(6). Pub. L. 106-569 added par. (6).

1998 - Subsec. (b)(2). Pub. L. 105-276 amended par. (2)

generally. Prior to amendment, par. (2) read as follows: "is the

principal residence of an owner whose family qualifies as a

low-income family at the time of purchase;".

1994 - Subsec. (b)(3). Pub. L. 103-233, Sec. 203(a), redesignated

par. (4) as (3) and struck out former par. (3) which read as

follows: "is made available for initial purchase only to first-time

homebuyers;".

Subsec. (b)(3)(B). Pub. L. 103-233, Sec. 203(b), substituted

"subchapter" for "subsection" after "requirements of this".

Subsec. (b)(4), (5). Pub. L. 103-233, Sec. 203(a)(2),

redesignated pars. (4) and (5) as (3) and (4), respectively.

1992 - Subsec. (a)(1)(A). Pub. L. 102-550, Sec. 208(a)(1),

substituted "number of bedrooms in the unit" for "smaller and

larger families".

Subsec. (a)(1)(E). Pub. L. 102-550, Sec. 208(b), inserted before

semicolon ", except upon a foreclosure by a lender (or upon other

transfer in lieu of foreclosure) if such action (i) recognizes any

contractual or legal rights of public agencies, nonprofit sponsors,

or others to take actions that would avoid termination of

low-income affordability in the case of foreclosure or transfer in

lieu of foreclosure, and (ii) is not for the purpose of avoiding

low income affordability restrictions, as determined by the

Secretary".

Subsec. (a)(3). Pub. L. 102-550, Sec. 208(a)(2), (3), substituted

"the lesser of the amount payable by the tenant under State or

local law or" for "not less than" in second sentence and inserted

at end "The preceding sentence shall not apply with respect to

funds made available under this Act for units that have been

allocated a low-income housing tax credit by a housing credit

agency pursuant to section 42 of title 26."

Subsec. (b)(4). Pub. L. 102-550, Sec. 209, added par. (4) and

struck out former par. (4) which read as follows: "is made

available for subsequent purchase only -

"(A) to persons who meet the qualifications specified under

paragraph (2), and

"(B) at a price consistent with guidelines that are established

by the participating jurisdiction and determined by the Secretary

to be appropriate -

"(i) to provide the owner with a fair return on investment,

including any improvements, and

"(ii) to ensure that the housing will remain affordable to a

reasonable range of low income homebuyers; and".

EFFECTIVE DATE OF 1998 AMENDMENT

Amendment by Pub. L. 105-276 made on, and applicable beginning

upon, Oct. 21, 1998, see section 599B(c) of Pub. L. 105-276, set

out as a note under section 12744 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.

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 4851b, 12705, 12750 of

this title.

-FOOTNOTE-

(!1) So in original.

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

-End-

-CITE-

42 USC Sec. 12746 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. 12746. Participation by States and local governments

-STATUTE-

The Secretary shall designate a State or unit of general local

government to be a participating jurisdiction when it complies with

procedures that the Secretary shall establish by regulation, which

procedures shall only provide for the following:

(1) Allocation

Not later than 20 days after funds to carry out this part

become available (or, during the first year after November 28,

1990, not later than 20 days after (A) funds to carry out this

part are provided in an appropriations Act, or (B) regulations to

implement this part are promulgated, whichever is later), the

Secretary shall allocate funds in accordance with section 12747

of this title and promptly notify each jurisdiction receiving a

formula allocation of its allocation amount. If a jurisdiction is

not already a participating jurisdiction, the Secretary shall

inform the jurisdiction in writing how the jurisdiction may

become a participating jurisdiction.

(2) Consortia

A consortium of geographically contiguous units of general

local government shall be deemed to be a unit of general local

government for purposes of this subchapter if the Secretary

determines that the consortium -

(A) has sufficient authority and administrative capability to

carry out the purposes of this subchapter on behalf of its

member jurisdictions, and

(B) will, according to a written certification by the State

(or States, if the consortium includes jurisdictions in more

than one State), direct its activities to alleviation of

housing problems within the State or States.

(3) Eligibility

(A) Except as provided in paragraph (10), a jurisdiction

receiving a formula allocation under section 12747 of this title

shall be eligible to become a participating jurisdiction if its

formula allocation is $750,000 or greater, or if the Secretary

finds that -

(i) the jurisdiction has a local housing authority and has

demonstrated a capacity to carry out provisions of this part,

and

(ii) the State has authorized the Secretary to transfer to

the jurisdiction a portion of the State's allocation that is

equal to or greater than the difference between the

jurisdiction's formula allocation and $750,000, or the State or

jurisdiction has made available from the State's or

jurisdiction's own sources an equal amount for use by the

jurisdiction in conformance with the provisions of this part.

(B) If a jurisdiction has met the requirements of subparagraph

(A), the jurisdiction's formula allocation for a fiscal year

shall subsequently be deemed to equal the sum of the

jurisdiction's allocation under section 12747(a)(1) of this title

and the amount made available to the jurisdiction under

subparagraph (A)(ii).

(4) Notification

If an eligible jurisdiction notifies the Secretary in writing,

not later than 30 days after receiving notification under

paragraph (1), of its intention to become a participating

jurisdiction, the Secretary shall reserve an amount equal to the

jurisdiction's allocation (plus any reallocations for which the

jurisdiction is eligible under section 12747(d)(1) of this title)

pending the jurisdiction's designation as a participating

jurisdiction. The Secretary shall reallocate, in accordance with

paragraph (6) of this section, any funds reserved under the

previous sentence if the Secretary determines that the

jurisdiction will not meet the requirements for designation as a

participating jurisdiction within a reasonable period of time.

(5) Submission of strategy

Not later than 90 days after providing notification under

paragraph (4), an eligible jurisdiction shall submit to the

Secretary a comprehensive housing affordability strategy in

accordance with section 12705 of this title.

(6) Reallocation

If the Secretary determines that a jurisdiction has failed to

meet the requirements of the previous 3 paragraphs or if the

Secretary, after providing for amendments and resubmissions in

accordance with section 12705(c)(3) of this title, disapproves

the jurisdiction's comprehensive housing affordability strategy,

the Secretary shall reallocate any funds reserved for the

jurisdiction as follows:

(A) State

If a State has failed to meet the requirements, the Secretary

shall -

(i) make any funds reserved for the State available by

direct reallocation among applications submitted by units of

general local government within the State or consortia that

include units of general local government within the State,

insofar as approvable applications meeting the selection

criteria under section 12747(c) of this title are received

within 12 months after the funds become available for the

direct reallocation, and

(ii) reallocate the remainder by formula in accordance with

section 12747(b) of this title.

(B) Local

If a unit of general local government has failed to meet the

requirements and is located in a State that is a participating

jurisdiction, the Secretary shall reallocate to the State any

funds reserved for the locality, with preference going to the

provision of affordable housing within the locality.

(C) Direct reallocation

If a unit of general local government has failed to meet the

requirements and is located in a State that is not a

participating jurisdiction, the Secretary shall -

(i) make any funds reserved for the locality available for

use within the State by direct reallocation among units of

general local government and community housing development

organizations, insofar as approvable applications meeting the

selection criteria under section 12747(c) of this title are

received within 12 months after the funds become available

for the direct reallocation with priority going to

applications for affordable housing within the locality, and

(ii) reallocate the remainder in accordance with section

12747(b) of this title.

(D) Certain jurisdictions deemed to be participating

jurisdictions

If a State or unit of general local government is meeting the

requirements of paragraphs (3), (4), and (5), it shall be

deemed to be a participating jurisdiction for purposes of

reallocation under this paragraph.

(7) Designation

The Secretary shall designate an eligible jurisdiction to be a

participating jurisdiction as soon as its comprehensive housing

affordability strategy is approved in accordance with section

12705 of this title.

(8) Continuous designation

Once a State or unit of general local government is designated

a participating jurisdiction, it shall remain a participating

jurisdiction for subsequent fiscal years, except as provided in

paragraph (9). The provisions of paragraphs (3) through (6) shall

not apply to participating jurisdictions.

(9) Revocation

The Secretary may revoke a jurisdiction's designation as a

participating jurisdiction if -

(A) the Secretary finds, after reasonable notice and

opportunity for hearing, that the jurisdiction is unwilling or

unable to carry out the provisions of this subchapter, or

(B) the jurisdiction's allocation falls below $750,000 for 3

consecutive years, below $625,000 for 2 consecutive years, or

the jurisdiction does not receive a formula allocation of

$500,000 or more in any 1 year, except as provided in paragraph

(10).

If a jurisdiction's designation as a participating jurisdiction

is revoked, any remaining line of credit in the jurisdiction's

HOME Investment Trust Fund established under section 12748 of

this title shall be reallocated in accordance with paragraph (6)

of this section.

(10) Threshold reduction

If the amount appropriated pursuant to section 12724 of this

title for any fiscal year is less than $1,500,000,000, then this

section shall be applied during that year -

(A) by substituting "$500,000" for "$750,000" both places it

appears in paragraph (3); and

(B) by substituting "$500,000", "$410,000", and "$335,000"

for "$750,000", "$625,000", and "$500,000", respectively, where

they appear in paragraph (9).

-SOURCE-

(Pub. L. 101-625, title II, Sec. 216, Nov. 28, 1990, 104 Stat.

4103; Pub. L. 102-550, title II, Sec. 202(a), Oct. 28, 1992, 106

Stat. 3751.)

-MISC1-

AMENDMENTS

1992 - Par. (3)(A). Pub. L. 102-550, Sec. 202(a)(1), substituted

"Except as provided in paragraph (10), a jurisdiction" for "A

jurisdiction".

Par. (9)(B). Pub. L. 102-550, Sec. 202(a)(2), inserted ", except

as provided in paragraph (10)" after "in any 1 year".

Par. (10). Pub. L. 102-550, Sec. 202(a)(3), added par. (10).

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.

APPLICABILITY OF GRANT THRESHOLDS

Section 202(c) of Pub. L. 102-550 provided that: "Notwithstanding

any other provision of law, the grant thresholds provided for in

section 216 [42 U.S.C. 12746], as amended by this section, and the

grant thresholds provided for in section 217(b) of the

Cranston-Gonzalez National Affordable Housing Act [42 U.S.C.

12747(b)], as amended by this section, shall apply."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 12704, 12747, 12750 of

this title.

-End-

-CITE-

42 USC Sec. 12747 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. 12747. Allocation of resources

-STATUTE-

(a) In general

(1) States and units of general local government

After reserving amounts under paragraph (3) for the insular

areas, the Secretary shall allocate funds approved in an

appropriation Act to carry out this subchapter by formula as

provided in subsection (b) of this section. Of the funds made

available under the preceding sentence, the Secretary shall

initially allocate 60 percent among units of general local

government and 40 percent among States.

(2) Repealed. Pub. L. 104-330, title V, Sec. 505(a)(1)(B), Oct.

26, 1996, 110 Stat. 4044

(3) (!1) Insular areas

For each fiscal year, of any amounts approved in appropriation

Acts to carry out this subchapter, the Secretary shall reserve

for grants to the insular areas the greater of (A) $750,000, or

(B) 0.2 percent of the amounts appropriated under such Acts. The

Secretary shall provide for the distribution of amounts reserved

under this paragraph among the insular areas pursuant to specific

criteria for such distribution, which shall be contained in a

regulation issued by the Secretary.

(b) Formula allocation

(1) In general

(A) Basic formula

The Secretary shall establish in (!2) regulation an

allocation formula that reflects each jurisdiction's share of

total need among eligible jurisdiction (!3) for an increased

supply of affordable housing for very low-income and low-income

families of different size, as identified by objective measures

of inadequate housing supply, substandard housing, the number

of low-income families in housing likely to be in need of

rehabilitation, the costs of producing housing, poverty, and

the relative fiscal incapacity of the jurisdiction to carry out

housing activities eligible under section 12742 of this title

without Federal assistance. Allocation among units of general

local government shall take into account the housing needs of

metropolitan cities, urban counties, and approved consortia of

units of general local government.

(B) Source of data

The data to be used for formula allocation of funds within a

fiscal year shall be data obtained from a standard source that

are available to the Secretary 90 days prior to the beginning

of that fiscal year.

(C) Use of basic formula

The basic formula established under subparagraph (A) shall be

used for all formula allocations and reallocations provided for

in this part.

(D) Weights

When allocation is made among States, the Secretary shall

apply the formula in subparagraph (A) giving 20 percent weight

to measures of need for the whole State and 80 percent weight

to measures of need among units of general local government

that are not receiving an allocation under section 12746(1) of

this title.

(E) Adjustments

In developing the basic formula in subparagraph (A), the

Secretary shall (i) avoid the allocation of an excessively

large share of amounts made available under this part to any

one State or unit of general local government, and (ii) take

into account the need for a geographic distribution of amounts

made available under this part that appropriately reflects the

housing need in each region of the Nation.

(F) Consultation

The Secretary shall develop the formula in subparagraph (A)

in ongoing consultation with (i) the Subcommittee on Housing

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

Urban Affairs of the Senate, (ii) the Subcommittee on Housing

and Community Development of the Committee on Banking, Finance

and Urban Affairs of the House of Representatives, and (iii)

organizations representing States and units of general local

government. Not less than 60 days prior to publishing a formula

for comment, the Secretary shall submit to the Committee on

Banking, Housing, and Urban Affairs of the Senate and the

Committee on Banking, Finance and Urban Affairs of the House of

Representatives a copy of the formula the Secretary intends to

propose.

(2) Minimum State allocation

(A) In general

If the formula, when applied to funds approved under this

section in appropriations Acts for a fiscal year, would

allocate less than $3,000,000 to any State, the allocation for

such State shall be $3,000,000, and the increase shall be

deducted pro rata from the allocations of other States.

(B) Increased minimum allocation

If no unit of general local government within a State

receives an allocation under paragraph (3), the State's

allocation shall be increased by $500,000. Priority for use of

such increased allocation shall go to the provision of

affordable housing within the boundaries of metropolitan

cities, urban counties, and approved consortia within the

State, based on the need for such funds. The increased

allocation to a State under the preceding sentence shall be

derived by a pro rata deduction from the allocations to units

of general local government in all States, except that such pro

rata deduction shall not reduce the allocation of any unit of

general local government below $500,000.

(3) Minimum local allocation

The Secretary shall allocate funds available for formula

allocation to units of general local government that, as of the

end of the previous fiscal year, qualified as metropolitan

cities, urban counties, and consortia approved by the Secretary

in accordance with section 12746(2) of this title so that, when

all such funds are initially allocated by formula, jurisdictions

that are allocated an amount of $500,000 or more, and

participating jurisdictions (other than consortia that fail to

renew the membership of all of their member jurisdictions) that

are allocated an amount less than $500,000, shall receive an

allocation. Prior to announcing initial allocations, the

Secretary shall successively recalculate the allocations to

jurisdictions under this subsection so that the maximum number of

such jurisdictions can receive initial allocations, except as

provided in paragraph (4).

(4) Threshold reduction

If the amount appropriated pursuant to section 12724 of this

title for any fiscal year is less than $1,500,000,000, then this

section shall be applied during that year by substituting

"$335,000" for "$500,000" where it appears in paragraph (3).

(c) Criteria for direct reallocation

The Secretary shall establish objective criteria for making

direct reallocations to any participating jurisdiction and other

eligible entities. A jurisdiction shall be eligible for a direct

reallocation under this subsection only if the jurisdiction, in a

form acceptable to the Secretary, submits an application that

demonstrates to the satisfaction of the Secretary that the

jurisdiction is engaged, or has made good faith efforts to engage,

in cooperative efforts between the State and appropriate

participating jurisdictions within the State to develop,

coordinate, and implement housing strategies under this subchapter.

The Secretary shall by regulation establish objective selection

criteria for such direct reallocations, which criteria shall take

into account -

(1) the applicant's demonstrated commitment to expand the

supply of affordable rental housing, including units developed by

public housing agencies, as indicated by the additional number of

units of affordable housing made available through production or

rehabilitation within the previous 2 years, making adjustment for

regional variations in construction and rehabilitation costs and

giving special consideration to the number of additional units

made available under this subchapter through production or

rehabilitation, including units developed by public housing

agencies, in relation to the amounts made available under this

program;

(2) the applicant's actions that -

(A) direct funds made available under this part to benefit

very low-income families, with a range of incomes, in amounts

that exceed the income targeting requirements of section 12744

of this title, with extra consideration given for activities

that expand the supply of affordable housing for very

low-income families whose incomes do not exceed 30 percent of

the median family income for the area, as determined by the

Secretary;

(B) apply the tenant selection preference categories

applicable under section 1437f of this title to the selection

of tenants for housing assisted under this part;

(C) provide matching resources in excess of funds required

under section 12750 of this title; and

(D) stimulate a high degree of investment and participation

in development by the private sector, including nonprofit

organizations; and

(3) the degree to which the applicant is pursuing policies that

-

(A) make existing housing more affordable;

(B) remove or ameliorate any negative effects that public

policies identified by the applicant pursuant to section

12705(b)(4) of this title may have on the cost of housing or

the incentives to develop, maintain, or improve affordable

housing in the jurisdiction;

(C) preserve the affordability of privately-owned housing

that is vulnerable to conversion, demolition, disinvestment, or

abandonment;

(D) increase the supply of housing that is affordable to very

low-income and low-income persons, particularly in areas that

are accessible to expanding job opportunities; and

(E) remedy the effects of discrimination and improve housing

opportunities for disadvantaged minorities.

(d) Reallocations

(1) In general

The Secretary shall make any reallocations periodically

throughout each fiscal year so as to ensure that all funds to be

reallocated are made available to eligible jurisdictions as soon

as possible, consistent with orderly program administration.

Jurisdictions eligible for such reallocations shall include

participating jurisdictions and jurisdictions meeting the

requirements of paragraphs (3), (4), and (5) of section 12746 of

this title.

(2) Commitments

The Secretary shall establish procedures according to which

participating jurisdictions may make commitments to invest funds

made available under this section. Such procedures shall provide

for appropriate stages of commitment of funds to a project from

initial reservation through binding commitment. Notwithstanding

any other provision of this subchapter, funds that the Secretary

determines are needed to fulfill binding commitments shall not be

available for reallocation.

(3) Limitation

Unless otherwise specified in this part, any reallocation of

funds from a State shall be made only among all participating

States, and any reallocation of funds from units of general local

government shall be made only among all participating units of

general local government.

-SOURCE-

(Pub. L. 101-625, title II, Sec. 217, Nov. 28, 1990, 104 Stat.

4105; Pub. L. 102-229, title I, Dec. 12, 1991, 105 Stat. 1709; Pub.

L. 102-230, Sec. 1, Dec. 12, 1991, 105 Stat. 1720; Pub. L. 102-273,

Sec. 1, Apr. 21, 1992, 106 Stat. 113; Pub. L. 102-389, title II,

Oct. 6, 1992, 106 Stat. 1581; Pub. L. 102-550, title II, Secs.

202(b), 203(b), 211(a)(2), Oct. 28, 1992, 106 Stat. 3751, 3752,

3756; Pub. L. 104-330, title V, Sec. 505(a)(1), Oct. 26, 1996, 110

Stat. 4044; Pub. L. 105-65, title II, Sec. 214, Oct. 27, 1997, 111

Stat. 1366.)

-MISC1-

AMENDMENTS

1997 - Subsec. (b)(3). Pub. L. 105-65, in first sentence,

substituted "jurisdictions that are allocated an amount of $500,000

or more, and participating jurisdictions (other than consortia that

fail to renew the membership of all of their member jurisdictions)

that are allocated an amount less than $500,000, shall receive an

allocation" for "only those jurisdictions that are allocated an

amount of $500,000 or greater shall receive an allocation".

1996 - Subsec. (a)(1). Pub. L. 104-330, Sec. 505(a)(1)(A), struck

out "reserving amounts under paragraph (2) for Indian tribes and

after" after "After".

Subsec. (a)(2). Pub. L. 104-330, Sec. 505(a)(1)(B), struck out

heading and text of par. (2). Text read as follows: "For each

fiscal year, of the amount approved in an appropriations Act to

carry out this subchapter, the Secretary shall reserve for grants

to Indian tribes 1 percent of the amount appropriated under such

section. The Secretary shall provide for distribution of amounts

under this paragraph to Indian tribes on the basis of a competition

conducted pursuant to specific criteria for the selection of Indian

tribes to receive such amounts. The criteria shall be contained in

a regulation promulgated by the Secretary after notice and public

comment."

1992 - Subsec. (a)(1). Pub. L. 102-550, Sec. 211(a)(2)(A), added

first sentence and struck out former first sentence which read as

follows: "After reserving amounts for Indian tribes as required by

paragraph (2) of this subsection and after reserving amounts for

the insular areas under paragraph (3), the Secretary shall allocate

funds approved in an appropriations Act to carry out this

subchapter by formula as provided in subsection (b) of this

section."

Pub. L. 102-389 made identical amendment to those made by Pub. L.

102-229 and Pub. L. 102-230, Sec. 1(1). See 1991 Amendment note

below.

Subsec. (a)(3). Pub. L. 102-550, Sec. 211(a)(2)(D), and Pub. L.

102-389 both added new pars. (3) related to insular areas. The text

reflects the par. (3) added by Pub. L. 102-550. The par. (3) added

by Pub. L. 102-389 read as follows: "For each fiscal year, of any

amounts approved in appropriations Acts to carry out this

subchapter, the Secretary shall reserve for grants to the insular

areas the greater of (A) $750,000, or (B) 0.2 percent of the

amounts appropriated under such Acts. The Secretary shall provide

for the distribution of amounts reserved under this paragraph among

the insular areas pursuant to specific criteria for such

distribution. The criteria shall be contained in a regulation

promulgated by the Secretary after notice and public comment."

Pub. L. 102-550, Sec. 211(a)(2)(C), struck out par. (3), as added

by Pub. L. 102-230, Sec. 1(2), which read as follows:

"(A) In general. - For each fiscal year, of any amount approved

in an appropriations Act to carry out this subchapter, the

Secretary shall reserve for grants to the insular areas an amount

that reflects -

"(i) their share of the total population of eligible

jurisdictions; and

"(ii) any adjustments that the Secretary determines are

reasonable in light of available data that are related to factors

set forth in subsection (b)(1)(B) of this section.

"(B) Specific criteria. - The Secretary shall provide for the

distribution of amounts reserved under this paragraph among the

insular areas in accordance with specific criteria to be set forth

in a regulation promulgated by the Secretary after notice and

public comment.

"(C) Transitional provisions. - For fiscal year 1992, the

reservation for insular areas specified in subparagraph (A) shall

be made from any funds which become available for reallocation in

accordance with the provisions of section 12746(6)(A) of this

title."

Pub. L. 102-550, Sec. 211(a)(2)(B), struck out par. (3), as added

by Pub. L. 102-229, which read as follows: "For each fiscal year,

of any amounts approved in appropriations Acts to carry out this

subchapter, the Secretary shall reserve for grants to the insular

areas the greater of (A) $750,000, or (B) 0.5 percent of the

amounts appropriated under such Acts. The Secretary shall provide

for the distribution of amounts reserved under this paragraph among

the insular areas pursuant to specific criteria for such

distribution. The criteria shall be contained in a regulation

promulgated by the Secretary after notice and public comment."

Subsec. (b)(1)(A). Pub. L. 102-550, Sec. 203(b)(1), (6),

redesignated subpar. (B) as (A) and struck out former subpar. (A)

which provided for a formula for allocation of funds for production

of affordable rental housing through new construction or

substantial rehabilitation.

Pub. L. 102-273 added cl. (iii) reading as follows:

"Notwithstanding clauses (i) and (ii), any jurisdiction receiving

amounts made available under such clause may, at the discretion of

the jurisdiction, use such amounts for other eligible uses in

accordance with section 12742 of this title if the jurisdiction

determines that such use will better meet the housing needs within

the jurisdiction. This clause shall be effective only with respect

to funds provided under the Departments of Veterans Affairs and

Housing and Urban Development, and Independent Agencies

Appropriations Act, 1992 (Public Law 102-139; 105 Stat. 744), which

suspends the requirement of contributions by participating

jurisdictions, and shall become ineffective if such requirement is

reimposed."

Subsec. (b)(1)(B), (C). Pub. L. 102-550, Sec. 203(b)(6),

redesignated subpars. (C) and (D) as (B) and (C), respectively.

Former subpar. (B) redesignated (A).

Subsec. (b)(1)(D). Pub. L. 102-550, Sec. 203(b)(6), redesignated

subpar. (E) as (D). Former subpar. (D) redesignated (C).

Pub. L. 102-550, Sec. 203(b)(2), substituted "The basic formula

established under subparagraph (A)" for "Except as provided in

subparagraph (A), the basic formula established under subparagraph

(B)".

Subsec. (b)(1)(E). Pub. L. 102-550, Sec. 203(b)(6), redesignated

subpar. (F) as (E). Former subpar. (E) redesignated (D).

Pub. L. 102-550, Sec. 203(b)(3), substituted "formula in

subparagraph (A)" for "formulas in subparagraph (B)".

Subsec. (b)(1)(F). Pub. L. 102-550, Sec. 203(b)(6), redesignated

subpar. (G) as (F). Former subpar. (F) redesignated (E).

Pub. L. 102-550, Sec. 203(b)(4), substituted "basic formula in

subparagraph (A)" for "basic formula in subparagraph (B)" and

struck out at end "If a jurisdiction receives an allocation under

subparagraph (A), the Secretary shall make such adjustments in the

jurisdiction's allocation under the formula in subparagraph (B) as

may be necessary to ensure that the combined effect of the formulas

in subparagraphs (A) and (B) does not reduce the allocation of any

jurisdiction below the allocation it would receive if allocations

were made according to the formula under subparagraph (B) alone."

Subsec. (b)(1)(G). Pub. L. 102-550, Sec. 203(b)(6), redesignated

subpar. (G) as (F).

Pub. L. 102-550, Sec. 203(b)(5), substituted "formula in

subparagraph (A)" for "formulas in subparagraphs (A) and (B)".

Subsec. (b)(3). Pub. L. 102-550, Sec. 202(b)(1), inserted before

period at end ", except as provided in paragraph (4)".

Subsec. (b)(4). Pub. L. 102-550, Sec. 202(b)(2), added par. (4).

1991 - Subsec. (a)(1). Pub. L. 102-229 and Pub. L. 102-230, Sec.

1(1), amended par. (1) identically, inserting before first comma

"and after reserving amounts for the insular areas under paragraph

(3)".

Subsec. (a)(3). Pub. L. 102-229 and Pub. L. 102-230, Sec. 1(2),

which were enacted on the same day, both added new pars. (3)

relating to insular areas.

-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 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.

Section 505(b) of Pub. L. 104-330 provided that: "The amendments

under subsection (a) [amending this section and section 12838 of

this title] shall apply with respect to amounts made available for

assistance under title II of the Cranston-Gonzalez National

Affordable Housing Act [42 U.S.C. 12721 et seq.] for fiscal year

1998 and fiscal years thereafter."

EFFECTIVE DATE OF 1992 AMENDMENT

Amendment by section 211(a)(2) of Pub. L. 102-550 applicable with

respect to fiscal year 1993 and thereafter, see section 211(b) of

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

title.

Amendment by sections 202(b) and 203(b) 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.

APPLICABILITY OF GRANT THRESHOLDS

Grant thresholds provided for in subsec. (b) of this section as

amended by Pub. L. 102-550 to apply notwithstanding any other

provision of law, see section 202(c) of Pub. L. 102-550, set out as

a note under section 12746 of this title.

EXPEDITED ISSUANCE OF REGULATION

Section 211(a)(3) of Pub. L. 102-550 provided that: "The

regulation referred to in the amendment made by paragraph (2)(D)

[amending this section] shall take effect not later than the

expiration of the 90-day period beginning on the date of the

enactment of this Act [Oct. 28, 1992]. The regulation shall not be

subject to the requirements of subsections (b) and (c) of section

553 of title 5, United States Code, or section 7(o) of the

Department of Housing and Urban Development Act [42 U.S.C.

3535(o)]."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 12746, 12748, 12749,

12771, 12831 of this title.

-FOOTNOTE-

(!1) See 1992 Amendment note below.

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

(!3) So in original. Probably should be "jurisdictions".

-End-

-CITE-

42 USC Sec. 12748 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. 12748. HOME Investment Trust Funds

-STATUTE-

(a) Establishment

The Secretary shall establish for each participating jurisdiction

a HOME Investment Trust Fund, which shall be an account (or

accounts as provided in section 12749(c) of this title) for use

solely to invest in affordable housing within the participating

jurisdiction's boundaries or within the boundaries of contiguous

jurisdictions in joint projects which serve residents from both

jurisdictions in accordance with the provisions of this part.

(b) Line of credit

The Secretary shall establish a line of credit in the HOME

Investment Trust Fund of each participating jurisdiction, which

line of credit shall include -

(1) funds allocated or reallocated to the participating

jurisdiction under section 12747 of this title, and

(2) any payment or repayment made pursuant to section 12749 of

this title.

(c) Reductions

A participating jurisdiction's line of credit shall be reduced by

-

(1) funds drawn from the HOME Investment Trust Fund by the

participating jurisdiction,

(2) funds expiring under subsection (g) of this section, and

(3) any penalties assessed by the Secretary under section 12754

(!1) of this title.

(d) Certification

A participating jurisdiction may draw funds from its HOME

Investment Trust Fund, but not to exceed the remaining line of

credit, only after providing certification that the funds shall be

used pursuant to the participating jurisdiction's approved housing

strategy and in compliance with all requirements of this

subchapter. When such certification is received, the Secretary

shall immediately disburse such funds in accordance with the form

of the assistance determined by the participating jurisdiction.

(e) Investment within 15 days

The participating jurisdiction shall, not later than 15 days

after funds are drawn from the jurisdiction's HOME Investment Trust

Fund, invest such funds, together with any interest earned thereon,

in the affordable housing for which the funds were withdrawn.

(f) No interest or fees

The Secretary shall not charge any interest or levy any other fee

with regard to funds in a HOME Investment Trust Fund.

(g) Expiration of right to draw funds

If any funds becoming available to a participating jurisdiction

under this subchapter are not placed under binding commitment to

affordable housing within 24 months after the last day of the month

in which such funds are deposited in the jurisdiction's HOME

Investment Trust Fund, the jurisdiction's right to draw such funds

from the HOME Investment Trust Fund shall expire. The Secretary

shall reduce the line of credit in the participating jurisdiction's

HOME Investment Trust Fund by the expiring amount and shall

reallocate the funds by formula in accordance with section 12747(d)

of this title.

(h) Administrative provision

The Secretary shall keep each participating jurisdiction informed

of the status of its HOME Investment Trust Fund, including the

status of amounts under various stages of commitment.

-SOURCE-

(Pub. L. 101-625, title II, Sec. 218, Nov. 28, 1990, 104 Stat.

4109; Pub. L. 102-550, title II, Secs. 203(c), 221, Oct. 28, 1992,

106 Stat. 3752, 3762.)

-MISC1-

AMENDMENTS

1992 - Subsec. (a). Pub. L. 102-550, Sec. 221, inserted "or

within the boundaries of contiguous jurisdictions in joint projects

which serve residents from both jurisdictions" after "boundaries".

Subsec. (g). Pub. L. 102-550, Sec. 203(c), substituted "If" for

"Except as provided in section 12747(b)(1)(A)(ii) of this title,

if".

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 12746 of this title.

-FOOTNOTE-

(!1) So in original. Probably should be section "12753".

-End-