-CITE-

42 USC Sec. 1437t 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 8 - LOW-INCOME HOUSING

SUBCHAPTER I - GENERAL PROGRAM OF ASSISTED HOUSING

-HEAD-

Sec. 1437t. Authority to convert public housing to vouchers

-STATUTE-

(a) Authority

A public housing agency may convert any public housing project

(or portion thereof) owned by the public housing agency to

tenant-based assistance, but only in accordance with the

requirements of this section.

(b) Conversion assessment

(1) In general

To convert public housing under this section, a public housing

agency shall conduct an assessment of the public housing that

includes -

(A) a cost analysis that demonstrates whether or not the cost

(both on a net present value basis and in terms of new budget

authority requirements) of providing tenant-based assistance

under section 1437f of this title for the same families in

substantially similar dwellings over the same period of time is

less expensive than continuing public housing assistance in the

public housing project for the remaining useful life of the

project;

(B) an analysis of the market value of the public housing

project both before and after rehabilitation, and before and

after conversion;

(C) an analysis of the rental market conditions with respect

to the likely success of the use of tenant-based assistance

under section 1437f of this title in that market for the

specific residents of the public housing project, including an

assessment of the availability of decent and safe dwellings

renting at or below the payment standard established for

tenant-based assistance under section 1437f of this title by

the agency;

(D) the impact of the conversion to tenant-based assistance

under this section on the neighborhood in which the public

housing project is located; and

(E) a plan that identifies actions, if any, that the public

housing agency would take with regard to converting any public

housing project or projects (or portions thereof) of the public

housing agency to tenant-based assistance.

(2) Timing

Not later than 2 years after the effective date under section

503(a) of the Quality Housing and Work Responsibility Act of

1998, each public housing agency shall conduct an assessment

under paragraph (1) or (3) of the status of each public housing

project owned by such agency and shall submit to the Secretary

such assessment. A public housing agency may otherwise undertake

an assessment under this subsection at any time and for any

public housing project (or portion thereof) owned by the agency.

A public housing agency may update a previously conducted

assessment for a project (or portion thereof) for purposes of

compliance with the one-year limitation under subsection (c) of

this section.

(3) Streamlined assessment

At the discretion of the Secretary or at the request of a

public housing agency, the Secretary may waive any or all of the

requirements of paragraph (1) or (3) or otherwise require a

streamlined assessment with respect to any public housing project

or class of public housing projects.

(c) Criteria for implementation of conversion plan

A public housing agency may convert a public housing project (or

portion thereof) owned by the agency to tenant-based assistance

only pursuant to a conversion assessment under subsection (b) of

this section that one year (!1) and that demonstrates that the

conversion -

(1) will not be more expensive than continuing to operate the

public housing project (or portion thereof) as public housing;

(2) will principally benefit the residents of the public

housing project (or portion thereof) to be converted, the public

housing agency, and the community; and

(3) will not adversely affect the availability of affordable

housing in such community.

(d) Conversion plan requirement

A public housing project may be converted under this section to

tenant-based assistance only as provided in a conversion plan under

this subsection, which has not been disapproved by the Secretary

pursuant to subsection (e) of this section. Each conversion plan

shall -

(1) be developed by the public housing agency, in consultation

with the appropriate public officials, with significant

participation by the residents of the project (or portion

thereof) to be converted;

(2) be consistent with and part of the public housing agency

plan;

(3) describe the conversion and future use or disposition of

the project (or portion thereof) and include an impact analysis

on the affected community;

(4) provide that the public housing agency shall -

(A) notify each family residing in a public housing project

(or portion) to be converted under the plan 90 days prior to

the displacement date except in cases of imminent threat to

health or safety, consistent with any guidelines issued by the

Secretary governing such notifications, that -

(i) the public housing project (or portion) will be removed

from the inventory of the public housing agency; and

(ii) each family displaced by such action will be offered

comparable housing -

(I) that meets housing quality standards;

(II) that is located in an area that is generally not

less desirable than the location of the displaced person's

housing; and

(III) which may include -

(aa) tenant-based assistance, except that the

requirement under this clause regarding offering of

comparable housing shall be fulfilled by use of

tenant-based assistance only upon the relocation of such

family into such housing;

(bb) project-based assistance; or

(cc) occupancy in a unit operated or assisted by the

public housing agency at a rental rate paid by the family

that is comparable to the rental rate applicable to the

unit from which the family is vacated;

(B) provide any necessary counseling for families displaced

by such action;

(C) ensure that, if the project (or portion) converted is

used as housing after such conversion, each resident may choose

to remain in their dwelling unit in the project and use the

tenant-based assistance toward rent for that unit; and

(D) provide any actual and reasonable relocation expenses for

families displaced by the conversion; and

(5) provide that any proceeds to the agency from the conversion

will be used subject to the limitations that are applicable under

section 1437p(a)(5) of this title to proceeds resulting from the

disposition or demolition of public housing.

(e) Review and approval of conversion plans

The Secretary shall disapprove a conversion plan only if -

(1) the plan is plainly inconsistent with the conversion

assessment for the agency developed under subsection (b) of this

section;

(2) there is reliable information and data available to the

Secretary that contradicts that conversion assessment; or

(3) the plan otherwise fails to meet the requirements of this

section.

(f) Tenant-based assistance

To the extent approved by the Secretary, the funds used by the

public housing agency to provide tenant-based assistance under

section 1437f of this title shall be added to the annual

contribution contract administered by the public housing agency.

-SOURCE-

(Sept. 1, 1937, ch. 896, title I, Sec. 22, as added Pub. L.

101-625, title V, Sec. 515(a), Nov. 28, 1990, 104 Stat. 4196;

amended Pub. L. 102-550, title I, Sec. 119, Oct. 28, 1992, 106

Stat. 3695; Pub. L. 105-276, title V, Sec. 533(a), Oct. 21, 1998,

112 Stat. 2576.)

-REFTEXT-

REFERENCES IN TEXT

Section 503(a) of the Quality Housing and Work Responsibility Act

of 1998, referred to in subsec. (b)(2), is section 503(a) 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

1998 - Pub. L. 105-276 amended section generally. Prior to

amendment, section related to award of grants to public housing

agencies to adapt public housing to help families gain better

access to educational and job opportunities, use of funds for

supportive services, development of facilities to accommodate them,

and employment of service coordinators, applications, selection for

grants, reports to Secretary and Congress, and appropriations for

fiscal years 1993 and 1994.

1992 - Subsec. (k). Pub. L. 102-550 amended subsec. (k)

generally, substituting present provisions for provisions

authorizing $25,000,000 in fiscal year 1991 and $26,100,000 in

fiscal year 1992.

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.

SAVINGS PROVISION

Pub. L. 105-276, title V, Sec. 533(b), Oct. 21, 1998, 112 Stat.

2578, provided that: "The amendment made by subsection (a)

[amending this section] shall not affect any contract or other

agreement entered into under section 22 of the United States

Housing Act of 1937 [42 U.S.C. 1437t], as such section existed

immediately before the effective date under section 503(a) of the

Quality Housing and Work Responsibility Act of 1998 [Pub. L.

105-276, set out as an Effective Date of 1998 Amendment note under

section 1437 of this title]."

PUBLIC HOUSING ONE-STOP PERINATAL SERVICES DEMONSTRATION

Section 521 of Pub. L. 101-625, as amended by Pub. L. 102-550,

title I, Sec. 125, Oct. 28, 1992, 106 Stat. 3710, which directed

Secretary of Housing and Urban Development to carry out program to

demonstrate effectiveness of providing grants to public housing

agencies to assist such agencies in providing facilities for making

one-stop perinatal services programs available for pregnant women

residing in public housing, set forth preferences, limitation on

grant amount, and program requirements, and required report to

Congress not later than 1 year after amounts were first made

available setting forth findings and conclusions and including

recommendations with respect to establishment of permanent program,

was repealed by Pub. L. 105-276, title V, Sec. 582(a)(9), Oct. 21,

1998, 112 Stat. 2644.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1437c-1 of this title.

-FOOTNOTE-

(!1) So in original.

-End-

-CITE-

42 USC Sec. 1437u 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 8 - LOW-INCOME HOUSING

SUBCHAPTER I - GENERAL PROGRAM OF ASSISTED HOUSING

-HEAD-

Sec. 1437u. Family Self-Sufficiency program

-STATUTE-

(a) Purpose

The purpose of the Family Self-Sufficiency program established

under this section is to promote the development of local

strategies to coordinate use of public housing and assistance under

the certificate and voucher programs under section 1437f of this

title with public and private resources, to enable eligible

families to achieve economic independence and self-sufficiency.

(b) Establishment of program

(1) Required programs

Except as provided in paragraph (2), the Secretary shall carry

out a program under which each public housing agency that

administers assistance under subsection (b) or (o) of section

1437f of this title or makes available new public housing

dwelling units -

(A) may, during fiscal years 1991 and 1992, carry out a local

Family Self-Sufficiency program under this section;

(B) effective on October 1, 1992, the Secretary shall require

each such agency to carry out a local Family Self-Sufficiency

program under this section, subject to the limitations in

paragraph (4); and

(C) effective on October 21, 1998, to the extent an agency is

not required to carry out a program pursuant to subparagraph

(B) of this paragraph and paragraph (4), may carry out a local

Family Self-Sufficiency program under this section.

Each local program shall, subject to availability of supportive

services, include an action plan under subsection (g) of this

section and shall provide comprehensive supportive services for

families electing to participate in the program. In carrying out

the self-sufficiency program under this section, the Secretary

shall consult with the heads of other appropriate Federal

agencies and provide for cooperative actions and funding

agreements with such agencies. Each public housing agency

administering an approved local program may employ a service

coordinator to administer the local program.

(2) Exception

The Secretary shall not require a public housing agency to

carry out a local program under subsection (a) of this section if

the public housing agency provides certification (as such term is

defined under title I of the Cranston-Gonzalez National

Affordable Housing Act [42 U.S.C. 12701 et seq.]) to the

Secretary, that the establishment and operation of the program is

not feasible because of local circumstances, which may include -

(A) lack of supportive services accessible to eligible

families, which shall include insufficient availability of

resources for programs under title I of the Workforce

Investment Act of 1998 [29 U.S.C. 2801 et seq.] or the Job

Opportunities and Basic Skills Training Program under part F

(!1) of title IV of the Social Security Act;

(B) lack of funding for reasonable administrative costs;

(C) lack of cooperation by other units of State or local

government; or

(D) any other circumstances that the Secretary may consider

appropriate.

In allocating assistance available for reservation under this

chapter, the Secretary may not refuse to provide assistance or

decrease the amount of assistance that would otherwise be

provided to any public housing agency because the agency has

provided a certification under this paragraph or because,

pursuant to a certification, the agency has failed to carry out a

self-sufficiency program.

(3) Scope

Subject to paragraph (4), each public housing agency required

to carry out a local program under this section shall make the

following housing assistance available under the program in each

fiscal year:

(A) Certificate and voucher assistance under section 1437f(b)

and (o) of this title, in an amount equivalent to the increase

for such year in the number of families so assisted by the

agency (as compared to the preceding year).

(B) Public housing dwelling units, in the number equal to the

increase for such year in units made available by the agency

(as compared to the preceding year).

Each such public housing agency shall continue to operate a local

program for the number of families determined under this

paragraph subject only to the availability under appropriations

Acts of sufficient amounts for assistance.

(4) Termination of requirement to expand program

(A) In general

Notwithstanding any other provision of law, a public housing

agency that receives incremental assistance under subsection

(b) or (o) of section 1437f of this title or that makes

available new public housing dwelling units shall not be

required, after October 21, 1998, to provide assistance under a

local Family Self-Sufficiency program under this section to any

families not required to be assisted under subparagraph (B) of

this paragraph.

(B) Continuation of existing obligations

(i) In general

Each public housing agency that, before October 21, 1998,

was required under this section to carry out a local Family

Self-Sufficiency program shall continue to operate such local

program for the number of families determined under paragraph

(3), subject only to the availability under appropriations

Acts of sufficient amounts for housing assistance.

(ii) Reduction

The number of families for which an agency is required

under clause (i) to operate such local program shall be

decreased by one for each family that, after October 21,

1998, fulfills its obligations under the contract of

participation.

(5) Nonparticipation

Assistance under the certificate or voucher programs under

section 1437f of this title for a family that elects not to

participate in a local program shall not be delayed by reason of

such election.

(c) Contract of participation

(1) In general

Each public housing agency carrying out a local program under

this section shall enter into a contract with each leaseholder

receiving assistance under the certificate and voucher programs

of the public housing agency under section 1437f of this title or

residing in public housing administered by the agency, that

elects to participate in the self-sufficiency program under this

section. The contract shall set forth the provisions of the local

program, shall establish specific interim and final goals by

which compliance with and performance of the contract may be

measured, and shall specify the resources and supportive services

to be made available to the participating family pursuant to

paragraph (2) and the responsibilities of the participating

family. The contract shall provide that the public housing agency

may terminate or withhold assistance under section 1437f of this

title and services under paragraph (2) of this subsection if the

public housing agency determines, through an administrative

grievance procedure in accordance with the requirements of

section 1437d(k) of this title, that the family has failed to

comply with the requirements of the contract without good cause

(which may include a loss or reduction in access to supportive

services, or a change in circumstances that makes the family or

individual unsuitable for participation).

(2) Supportive services

A local program under this section shall provide appropriate

supportive services under this paragraph to each participating

family entering into a contract of participation under paragraph

(1). The supportive services shall be provided during the period

the family is receiving assistance under section 1437f of this

title or residing in public housing, and may include -

(A) child care;

(B) transportation necessary to receive services;

(C) remedial education;

(D) education for completion of high school;

(E) job training and preparation;

(F) substance abuse treatment and counseling;

(G) training in homemaking and parenting skills;

(H) training in money management;

(I) training in household management; and

(J) any other services and resources appropriate to assist

eligible families to achieve economic independence and

self-sufficiency.

(3) Term and extension

Each family participating in a local program shall be required

to fulfill its obligations under the contract of participation

not later than 5 years after entering into the contract. The

public housing agency shall extend the term of the contract for

any family that requests an extension, upon a finding of the

agency of good cause.

(4) Employment and counseling

The contract of participation shall require the head of the

participating family to seek suitable employment during the term

of the contract. The public housing agency may, during such

period, provide counseling for the family with respect to

affordable rental and homeownership opportunities in the private

housing market and money management counseling.

(d) Incentives for participation

(1) Maximum rents

During the term of the contract of participation, the amount of

rent paid by any participating family whose monthly adjusted

income does not exceed 50 percent of the area median income for

occupancy in the public housing unit or dwelling unit assisted

under section 1437f of this title may not be increased on the

basis of any increase in the earned income of the family, unless

the increase results in an income exceeding 50 percent of the

area median income. The Secretary shall provide for increased

rents for participating families whose incomes are between 50 and

80 percent of the area median income, so that any family whose

income increases to 80 percent or more of the area median income

pays 30 percent of the family's monthly adjusted income for rent.

Upon completion of the contract of participation, if the

participating family continues to qualify for and reside in a

dwelling unit in public housing or housing assisted under section

1437f of this title, the rent charged the participating family

shall be increased (if applicable) to 30 percent of the monthly

adjusted income of the family.

(2) Escrow savings accounts

For each participating family whose monthly adjusted income is

less than 50 percent of the area median income, the difference

between 30 percent of the adjusted income of the participating

family and the amount of rent paid by a participating family

shall be placed in an interest-bearing escrow account established

by the public housing agency on behalf of the participating

family. For families with incomes between 50 and 80 percent of

the area median income, the Secretary shall provide for escrow of

the difference between 30 percent of the family income and the

amount paid by the family for rent as determined by the Secretary

under paragraph (1). The Secretary shall not escrow any amounts

for any family whose adjusted income exceeds 80 percent of the

area median income. Amounts in the escrow account may be

withdrawn by the participating family after the family ceases to

receive income assistance under Federal or State welfare

programs, upon successful performance of the obligations of the

family under the contract of participation entered into by the

family under subsection (c) of this section, as determined

according to the specific goals and terms included in the

contract, and under other circumstances in which the Secretary

determines an exception for good cause is warranted. A public

housing agency establishing such escrow accounts may make certain

amounts in the accounts available to the participating families

before full performance of the contract obligations based on

compliance with, and completion of, specific interim goals

included in the contract; except that any such amounts shall be

used by the participating families for purposes consistent with

the contracts of participation, as determined by the public

housing agency.

(3) Plan

Each public housing agency carrying out a local program under

this section shall establish a plan to offer incentives to

families to encourage families to participate in the program. The

plan shall require the establishment of escrow savings accounts

under paragraph (2) and may include any other incentives designed

by the public housing agency.

(e) Effect of increases in family income

Any increase in the earned income of a family during the

participation of the family in a local program established under

this section may not be considered as income or a resource for

purposes of eligibility of the family for other benefits, or amount

of benefits payable to the family, under any program administered

by the Secretary, unless the income of the family equals or exceeds

80 percent of the median income of the area (as determined by the

Secretary with adjustments for smaller and larger families).

(f) Program coordinating committee

(1) Functions

Each public housing agency carrying out a local program under

this section shall, in consultation with the chief executive

officer of the unit of general local government, develop an

action plan under subsection (g) of this section, carry out

activities under the local program, and secure commitments of

public and private resources through a program coordinating

committee established by the public housing agency under this

subsection.

(2) Membership

The program coordinating committee may consist of

representatives of the public housing agency, the unit of general

local government, the local agencies (if any) responsible for

carrying out programs under title I of the Workforce Investment

Act of 1998 [29 U.S.C. 2801 et seq.] or the Job Opportunities and

Basic Skills Training Program under part F (!2) of title IV of

the Social Security Act, and other organizations, such as other

State and local welfare and employment agencies, public and

private education or training institutions, nonprofit service

providers, and private businesses. The public housing agency may,

in consultation with the chief executive officer of the unit of

general local government, utilize an existing entity as the

program coordinating committee if it meets the requirements of

this subsection.

(g) Action plan

(1) Required submission

The Secretary shall require each public housing agency

participating in the self-sufficiency program under this section

to submit to the Secretary, for approval by the Secretary, an

action plan under this subsection in such form and in accordance

with such procedures as the Secretary shall require.

(2) Development of plan

In developing the plan, the public housing agency shall consult

with the chief executive officer of the applicable unit of

general local government, the program coordinating committee

established under subsection (f) of this section, representatives

of residents of the public housing, any local agencies

responsible for programs under title I of the Workforce

Investment Act of 1998 [29 U.S.C. 2801 et seq.] or the Job

Opportunities and Basic Skills Training Program under part F (!2)

of title IV of the Social Security Act, other appropriate

organizations (such as other State and local welfare and

employment or training institutions, child care providers,

nonprofit service providers, and private businesses), and any

other public and private service providers affected by the

operation of the local program.

(3) Contents of plan

The Secretary shall require that the action plan contain at a

minimum -

(A) a description of the size, characteristics, and needs of

the population of the families expected to participate in the

local self-sufficiency program;

(B) a description of the number of eligible participating

families who can reasonably be expected to receive supportive

services under the program, based on available and anticipated

Federal, State, local, and private resources;

(C) a description of the services and activities under

subsection (c)(2) of this section to be provided to families

receiving assistance under this section through the section 8

[42 U.S.C. 1437f] and public housing programs, which shall be

provided by both public and private resources;

(D) a description of the incentives pursuant to subsection

(d) of this section offered by the public housing agency to

families to encourage participation in the program;

(E) a description of how the local program will deliver

services and activities according to the needs of the families

participating in the program;

(F) a description of both the public and private resources

that are expected to be made available to provide the

activities and services under the local program;

(G) a timetable for implementation of the local program;

(H) assurances satisfactory to the Secretary that development

of the services and activities under the local program has been

coordinated with the Job Opportunities and Basic Skills

Training Program under part F (!2) of title IV of the Social

Security Act and programs under title I of the Workforce

Investment Act of 1998 [29 U.S.C. 2801 et seq.] and any other

relevant employment, child care, transportation, training, and

education programs in the applicable area, and that

implementation will continue to be coordinated, in order to

avoid duplication of services and activities; and

(I) assurances satisfactory to the Secretary that

nonparticipating families will retain their rights to public

housing or section 8 [42 U.S.C. 1437f] assistance

notwithstanding the provisions of this section.

(h) Allowable public housing agency administrative fees and costs

(1) Fees under section 1437f

The Secretary shall establish a fee under section 1437f(q) of

this title for the costs incurred in administering the provision

of certificate and voucher assistance under section 1437f of this

title through the self-sufficiency program under this section.

The fee shall be the fee in effect under such section on June 1,

1990, except that for purposes of the fee under this paragraph

the applicable dollar amount for preliminary expenses under

section 1437f(q)(2)(A)(i) (!2) of this title shall, subject to

approval in appropriations Acts, be $300. Upon the submission by

the Comptroller General of the United States of the report

required under section 554(b) of the Cranston-Gonzalez National

Affordable Housing Act, the Secretary shall revise the fee under

this paragraph, taking into consideration the report of the

Comptroller General.

(2) Performance funding system

Notwithstanding any provision of section 1437g of this title,

the Secretary shall provide for inclusion under the performance

funding system under section 1437g of this title of reasonable

and eligible administrative costs (including the costs of

employing a full-time service coordinator) incurred by public

housing agencies carrying out local programs under this section.

The Secretary shall include an estimate of the administrative

costs likely to be incurred by participating public housing

agencies in the annual budget request for the Department of

Housing and Urban Development for public housing operating

assistance under section 1437g of this title and shall include a

request for such amounts in the budget request. Of any amounts

appropriated under section 1437g(c) of this title for fiscal year

1993, $25,000,000 is authorized to be used for costs under this

paragraph, and of any amounts appropriated under such section for

fiscal year 1994, $25,900,000 is authorized to be used for costs

under this paragraph.

(i) Public housing agency incentive award allocation

(1) In general

The Secretary shall carry out a competition for budget

authority for certificate and voucher assistance under section

1437f of this title and public housing development assistance

under section 1437c(a)(2) of this title reserved under paragraph

(4) and shall allocate such budget authority to public housing

agencies pursuant to the competition.

(2) Criteria

The competition shall be based on successful and outstanding

implementation by public housing agencies of a local

self-sufficiency program under this section. The Secretary shall

establish perfomance (!3) criteria for public housing agencies

carrying out such local programs and the Secretary shall cause

such criteria to be published in the Federal Register.

(3) Use

Each public housing agency that receives an allocation of

budget authority under this subsection shall use such authority

to provide assistance under the local self-sufficiency program

established by the public housing agency under this section.

(4) Reservation of budget authority

Notwithstanding section 1439(d) of this title, the Secretary

shall reserve for allocation under this subsection not less than

10 percent of the portion of budget authority appropriated in

each of fiscal years 1991 and 1992 for section 1437f of this

title that is available for purposes of providing assistance

under the existing housing certificate and housing voucher

programs for families not currently receiving assistance, and not

less than 10 percent of the public housing development assistance

available in such fiscal years for the purpose under section

1437c(a)(2) of this title (excluding amounts for major

reconstruction of obsolete projects).

(j) On-site facilities

Each public housing agency carrying out a local program may,

subject to the approval of the Secretary, make available and

utilize common areas or unoccupied public housing units in public

housing projects administered by the agency for the provision of

supportive services under the local program. The use of the

facilities of a public housing agency under this subsection shall

not affect the amount of assistance provided to the agency under

section 1437g of this title.

(k) Flexibility

In establishing and carrying out the self-sufficiency program

under this section, the Secretary shall allow public housing

agencies, units of general local government, and other

organizations discretion and flexibility, to the extent

practicable, in developing and carrying out local programs.

(l) Reports

(1) To Secretary

Each public housing agency that carries out a local

self-sufficiency program approved by the Secretary under this

section shall submit to the Secretary, not less than annually a

report regarding the program. The report shall include -

(A) a description of the activities carried out under the

program;

(B) a description of the effectiveness of the program in

assisting families to achieve economic independence and

self-sufficiency;

(C) a description of the effectiveness of the program in

coordinating resources of communities to assist families to

achieve economic independence and self-sufficiency; and

(D) any recommendations of the public housing agency or the

appropriate local program coordinating committee for

legislative or administrative action that would improve the

self-sufficiency program carried out by the Secretary and

ensure the effectiveness of the program.

(2) HUD annual report

The Secretary shall submit to the Congress annually, as a part

of the report of the Secretary under section 3536 of this title,

a report summarizing the information submitted by public housing

agencies under paragraph (1). The report under this paragraph

shall also include any recommendations of the Secretary for

improving the effectiveness of the self-sufficiency program under

this section.

(m) GAO report

The Comptroller General of the United States may submit to the

Congress reports under this subsection evaluating and describing

the Family Self-Sufficiency program carried out by the Secretary

under this section.

(n) Definitions

As used in this section:

(1) The term "contract of participation" means a contract under

subsection (c) of this section entered into by a public housing

agency carrying out a local program under this section and a

participating family.

(2) The term "earned income" means income from wages, tips,

salaries, and other employee compensation, and any earnings from

self-employment. The term does not include any pension or

annuity, transfer payments, or any cash or in-kind benefits.

(3) The term "eligible family" means a family whose head of

household is not elderly, disabled, pregnant, a primary caregiver

for children under the age of 3, or for whom the family

self-sufficiency program would otherwise be unsuitable.

Notwithstanding the preceding sentence, a public housing agency

may enroll such families if they choose to participate in the

program.

(4) The term "local program" means a program for providing

supportive services to participating families carried out by a

public housing agency within the jurisdiction of the public

housing agency.

(5) The term "participating family" means a family that resides

in public housing or housing assisted under section 1437f of this

title and elects to participate in a local self-sufficiency

program under this section.

(6) The term "vacant unit" means a dwelling unit that has been

vacant for not less than 9 consecutive months.

(o) Effective date and regulations

(1) Regulations

Not later than the expiration of the 180-day period beginning

on November 28, 1990, the Secretary shall by notice establish any

requirements necessary to carry out this section. Such

requirements shall be subject to section 553 of title 5. The

Secretary shall issue final regulations based on the notice not

later than the expiration of the 8-month period beginning on the

date of the notice. Such regulations shall become effective upon

the expiration of the 1-year period beginning on the date of the

publication of the final regulations.

(2) Repealed. Pub. L. 104-330, title V, Sec. 501(b)(8), Oct. 26,

1996, 110 Stat. 4042

-SOURCE-

(Sept. 1, 1937, ch. 896, title I, Sec. 23, as added Pub. L.

101-625, title V, Sec. 554(a), Nov. 28, 1990, 104 Stat. 4225;

amended Pub. L. 102-550, title I, Secs. 106, 185(b), Oct. 28, 1992,

106 Stat. 3684, 3747; Pub. L. 104-316, title I, Sec. 122(l), Oct.

19, 1996, 110 Stat. 3837; Pub. L. 104-330, title V, Sec. 501(b)(8),

Oct. 26, 1996, 110 Stat. 4042; Pub. L. 105-276, title V, Sec.

509(a), Oct. 21, 1998, 112 Stat. 2530; Pub. L. 105-277, div. A,

Sec. 101(f) [title VIII, Sec. 405(d)(31), (f)(23)], Oct. 21, 1998,

112 Stat. 2681-337, 2681-425, 2681-433.)

-REFTEXT-

REFERENCES IN TEXT

The Cranston-Gonzalez National Affordable Housing Act, referred

to in subsec. (b)(2), is Pub. L. 101-625, Nov. 28, 1990, 104 Stat.

4079. Title I of the Act is classified generally to subchapter I

(Sec. 12701 et seq.) of chapter 130 of this title. Section 554(b)

of the Act is set out below. For complete classification of this

Act to the Code, see Short Title note set out under section 12701

of this title and Tables.

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

(b)(2)(A), (f)(2), and (g)(2), (3)(H), is Pub. L. 105-220, Aug. 7,

1998, 112 Stat. 936, as amended. Title I of the Act is classified

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

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

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

Tables.

The Social Security Act, referred to in subsecs. (b)(2)(A),

(f)(2), and (g)(2), (3)(H), is act Aug. 14, 1935, ch. 531, 49 Stat.

620, as amended. Part F of title IV of the Act was classified

generally to part F (Sec. 681 et seq.) of subchapter IV of chapter

7 of this title, prior to repeal by Pub. L. 104-193, title I, Sec.

108(e), Aug. 22, 1996, 110 Stat. 2167. For complete classification

of this Act to the Code, see section 1305 of this title and Tables.

Section 1437f(q)(2)(A) of this title, referred to in subsec.

(h)(1), was amended generally by Pub. L. 105-276, title V, Sec.

547, Oct. 21, 1998, 112 Stat. 2605, and, as so amended, does not

contain a cl. (i).

Section 1437g(c) of this title, referred to in subsec. (h)(2),

was amended generally by Pub. L. 105-276, title V, Sec. 519(a),

Oct. 21, 1998, 112 Stat. 2551, and, as so amended, does not relate

to appropriations for fiscal years 1993 and 1994.

-MISC1-

AMENDMENTS

1998 - Subsec. (b)(1)(A). Pub. L. 105-276, Sec. 509(a)(1)(A)(i),

struck out "and" at end.

Subsec. (b)(1)(B). Pub. L. 105-276, Sec. 509(a)(1)(A)(ii),

substituted ", subject to the limitations in paragraph (4); and"

for period at end.

Subsec. (b)(1)(C). Pub. L. 105-276, Sec. 509(a)(1)(A)(iii), added

subpar. (C).

Subsec. (b)(2)(A). Pub. L. 105-277, Sec. 101(f) [title VIII, Sec.

405(f)(23)(A)], struck out "the Job Training Partnership Act or"

after "programs under".

Pub. L. 105-277, Sec. 101(f) [title VIII, Sec. 405(d)(31)(A)],

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

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

Partnerships Act or the".

Subsec. (b)(3). Pub. L. 105-276, Sec. 509(a)(1)(B), substituted

"Subject to paragraph (4), each" for "Each" in introductory

provisions.

Subsec. (b)(4), (5). Pub. L. 105-276, Sec. 509(a)(1)(C), (D),

added par. (4) and redesignated former par. (4) as (5).

Subsec. (d)(3). Pub. L. 105-276, Sec. 509(a)(2), struck out

heading and text of par. (3) relating to use of escrow savings

accounts. Text read as follows: "Notwithstanding paragraph (3), a

family that uses assistance under section 1437f(y) of this title to

purchase a dwelling may use up to 50 percent of the amount in its

escrow account established under paragraph (3) for a downpayment on

the dwelling. In addition, after the family purchases the dwelling,

the family may use any amounts remaining in the escrow account to

cover the costs of major repair and replacement needs of the

dwelling. If a family defaults in connection with the loan to

purchase a dwelling and the mortgage is foreclosed, the remaining

amounts in the escrow account shall be recaptured by the

Secretary."

Subsec. (f)(1). Pub. L. 105-276, Sec. 509(a)(3), inserted

"carrying out a local program under this section" after "Each

public housing agency".

Subsec. (f)(2). Pub. L. 105-277, Sec. 101(f) [title VIII, Sec.

405(f)(23)(B)], struck out "the Job Training Partnership Act or"

after "programs under".

Pub. L. 105-277, Sec. 101(f) [title VIII, Sec. 405(d)(31)(B)],

substituted "programs under the Job Training Partnership Act or

title I of the Workforce Investment Act of 1998 or the" for

"programs under the Job Training Partnership Act and the".

Subsec. (g)(2). Pub. L. 105-277, Sec. 101(f) [title VIII, Sec.

405(f)(23)(C)(i)], struck out "the Job Training Partnership Act or"

after "programs under".

Pub. L. 105-277, Sec. 101(f) [title VIII, Sec. 405(d)(31)(C)(i)],

substituted "programs under the Job Training Partnership Act or

title I of the Workforce Investment Act of 1998 or the" for "for

programs under the Job Training Partnership Act and the".

Subsec. (g)(3)(H). Pub. L. 105-277, Sec. 101(f) [title VIII, Sec.

405(f)(23)(C)(ii)], struck out "the Job Training Partnership Act

or" after "programs under".

Pub. L. 105-277, Sec. 101(f) [title VIII, Sec.

405(d)(31)(C)(ii)], substituted "programs under the Job Training

Partnership Act or title I of the Workforce Investment Act of 1998

and any other" for "program under the Job Training Partnership Act

and any other".

1996 - Subsec. (m). Pub. L. 104-316 substituted "may" for "shall"

after "United States", struck out "(1) In general. - " before "The

Comptroller General", and struck out par. (2) which read as

follows:

"(2) Timing. - The Comptroller General shall submit the following

reports under this subsection:

"(A) An interim report, not later than the expiration of the

2-year period beginning on November 28, 1990.

"(B) A final report, not later than the expiration of the

5-year period beginning on November 28, 1990."

Subsec. (o)(2). Pub. L. 104-330 struck out heading and text of

par. (2). Text read as follows: "Notwithstanding any other

provision of law, the provisions of this section shall be optional

for Indian housing authorities."

1992 - Subsec. (b)(2). Pub. L. 102-550, Sec. 106(b), added

subpars. (A) to (D) and concluding provisions and struck out former

subpars. (A) to (D) which read as follows:

"(A) lack of supportive services funding;

"(B) lack of funding for reasonable administrative costs;

"(C) lack of cooperation by other units of State or local

government; or

"(D) any other circumstances that the Secretary may consider

appropriate."

Subsec. (b)(4). Pub. L. 102-550, Sec. 106(c), added par. (4).

Subsec. (c)(1). Pub. L. 102-550, Sec. 106(d), in second sentence,

inserted ", shall establish specific interim and final goals by

which compliance with and performance of the contract may be

measured," after "program" and substituted last sentence for former

last sentence which read as follows: "The contract shall provide

that the public housing agency may terminate or withhold assistance

under section 1437f of this title and services under paragraph (2)

of this section if the family fails to comply with the requirements

under the contract."

Subsec. (c)(2). Pub. L. 102-550, Sec. 106(e), struck out "to each

participating family" after "paragraph (1)" in introductory

provisions.

Subsec. (d). Pub. L. 102-550, Sec. 106(g)(1), substituted

"Incentives for participation" for "Maximum rents and escrow

savings accounts" in heading.

Subsec. (d)(2). Pub. L. 102-550, Sec. 106(f), substituted "after

the family ceases to receive income assistance under Federal or

State welfare programs, upon successful performance of the

obligations of the family under the contract of participation

entered into by the family under subsection (c) of this section, as

determined according to the specific goals and terms included in

the contract, and under other circumstances in which the Secretary

determines an exception for good cause is warranted. A public

housing agency establishing such escrow accounts may make certain

amounts in the accounts available to the participating families

before full performance of the contract obligations based on

compliance with, and completion of, specific interim goals included

in the contract; except that any such amounts shall be used by the

participating families for purposes consistent with the contracts

of participation, as determined by the public housing agency." for

"only after the family is no longer a recipient of any Federal,

State, or other public assistance for housing."

Subsec. (d)(3). Pub. L. 102-550, Sec. 185(b), added par. (3)

relating to use of escrow savings accounts.

Pub. L. 102-550, Sec. 106(g)(2), added par. (3) relating to a

plan to offer incentives.

Subsec. (g)(3)(D) to (I). Pub. L. 102-550, Sec. 106(h), added

subpars. (D) and (I) and redesignated former subpars (D) to (G) as

(E) to (H), respectively.

Subsec. (h)(2). Pub. L. 102-550, Sec. 106(a), amended last

sentence generally. Prior to amendment, last sentence read as

follows: "Of any amounts appropriated under section 1437g(c) of

this title for each of fiscal years 1991 and 1992, $25,000,000 is

authorized to be used for costs under this paragraph."

Subsec. (n)(3) to (6). Pub. L. 102-550, Sec. 106(i), added par.

(3), redesignated former pars. (3) and (4) as (4) and (5),

respectively, and added par. (6).

Subsec. (o)(2). Pub. L. 102-550, Sec. 106(j), amended par. (2)

generally. Prior to amendment, par. (2) read as follows: "(2)

Applicability to indian public housing. - In accordance with

section 1437aa(b)(2) of this title, the provisions of this section

shall also apply to public housing developed or operated pursuant

to a contract between the Secretary and an Indian housing

authority."

EFFECTIVE DATE OF 1998 AMENDMENTS

Amendment by section 101(f) [title VIII, Sec. 405(d)(31)] of Pub.

L. 105-277 effective Oct. 21, 1998, and amendment by section 101(f)

[title VIII, Sec. 405(f)(23)] of Pub. L. 105-277 effective July 1,

2000, see section 101(f) [title VIII, Sec. 405(g)(1), (2)(B)] of

Pub. L. 105-277, set out as a note under section 3502 of Title 5,

Government Organization and Employees.

Pub. L. 105-276, title V, Sec. 509(b), Oct. 21, 1998, 112 Stat.

2531, provided that: "The amendments made by this subsection

[probably means subsec. (a), amending this section] are made on,

and shall apply beginning upon, the date of the enactment of this

Act [Oct. 21, 1998]."

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.

GAO STUDY ON LINKING FEDERAL HOUSING ASSISTANCE TO ECONOMIC

SELF-SUFFICIENCY PROGRAMS

Section 554(b) of Pub. L. 101-625 directed Comptroller General to

submit to Congress, not later than 18 months after Nov. 28, 1990, a

report (1) evaluating the policy and administrative implications of

requiring State and local governments to require participation in

an economic self-sufficiency program as a condition of the receipt

of rental assistance under 42 U.S.C. 1437f and public housing

assistance, (2) determining the additional costs to public housing

agencies under such programs and recommending a change in the

amount of the administrative fee under 42 U.S.C. 1437f(q) to cover

the additional costs of carrying out the Family Self-Sufficiency

Program under this section, and (3) examining how housing and

social service policies affect beneficiaries, particularly persons

receiving public assistance, when such beneficiaries gain

employment and experience a rise in income.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1437f, 1437g of this

title.

-FOOTNOTE-

(!1) See References in Text note below.

(!2) See References in Text note below.

(!3) So in original. Probably should be "performance".

-End-

-CITE-

42 USC Sec. 1437v 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 8 - LOW-INCOME HOUSING

SUBCHAPTER I - GENERAL PROGRAM OF ASSISTED HOUSING

-HEAD-

Sec. 1437v. Demolition, site revitalization, replacement housing,

and tenant-based assistance grants for projects

-STATUTE-

(a) Purposes

The purpose of this section is to provide assistance to public

housing agencies for the purposes of -

(1) improving the living environment for public housing

residents of severely distressed public housing projects through

the demolition, rehabilitation, reconfiguration, or replacement

of obsolete public housing projects (or portions thereof);

(2) revitalizing sites (including remaining public housing

dwelling units) on which such public housing projects are located

and contributing to the improvement of the surrounding

neighborhood;

(3) providing housing that will avoid or decrease the

concentration of very low-income families; and

(4) building sustainable communities.

(b) Grant authority

The Secretary may make grants as provided in this section to

applicants whose applications for such grants are approved by the

Secretary under this section.

(c) Contribution requirement

(1) In general

The Secretary may not make any grant under this section to any

applicant unless the applicant certifies to the Secretary that

the applicant will -

(A) supplement the aggregate amount of assistance provided

under this section with an amount of funds from sources other

than this section equal to not less than 5 percent of the

amount provided under this section; and

(B) in addition to supplemental amounts provided in

accordance with subparagraph (A), if the applicant uses more

than 5 percent of the amount of assistance provided under this

section for services under subsection (d)(1)(L) of this

section, provide supplemental funds from sources other than

this section in an amount equal to the amount so used in excess

of 5 percent.

(2) Supplemental funds

In calculating the amount of supplemental funds provided by a

grantee for purposes of paragraph (1), the grantee may include

amounts from other Federal sources, any State or local government

sources, any private contributions, the value of any donated

material or building, the value of any lease on a building, the

value of the time and services contributed by volunteers, and the

value of any other in-kind services or administrative costs

provided.

(3) Exemption

If assistance provided under this subchapter will be used only

for providing tenant-based assistance under section 1437f of this

title or demolition of public housing (without replacement), the

Secretary may exempt the applicant from the requirements under

paragraph (1)(A).

(d) Eligible activities

(1) In general

Grants under this section may be used for activities to carry

out revitalization programs for severely distressed public

housing, including -

(A) architectural and engineering work;

(B) redesign, rehabilitation, or reconfiguration of a

severely distressed public housing project, including the site

on which the project is located;

(C) the demolition, sale, or lease of the site, in whole or

in part;

(D) covering the administrative costs of the applicant, which

may not exceed such portion of the assistance provided under

this section as the Secretary may prescribe;

(E) payment of reasonable legal fees;

(F) providing reasonable moving expenses for residents

displaced as a result of the revitalization of the project;

(G) economic development activities that promote the economic

self-sufficiency of residents under the revitalization program,

including a Neighborhood Networks initiative for the

establishment and operation of computer centers in public

housing for the purpose of enhancing the self-sufficiency,

employability, an (!1) economic self-reliance of public housing

residents by providing them with onsite computer access and

training resources;

(H) necessary management improvements;

(I) leveraging other resources, including additional housing

resources, retail supportive services, jobs, and other economic

development uses on or near the project that will benefit

future residents of the site;

(J) replacement housing (including appropriate homeownership

downpayment assistance for displaced residents or other

appropriate replacement homeownership activities) and rental

assistance under section 1437f of this title;

(K) transitional security activities; and

(L) necessary supportive services, except that not more than

15 percent of the amount of any grant may be used for

activities under this paragraph.

(2) Endowment trust for supportive services

In using grant amounts under this section made available in

fiscal year 2000 or thereafter for supportive services under

paragraph (1)(L), a public housing agency may deposit such

amounts in an endowment trust to provide supportive services over

such period of time as the agency determines. Such amounts shall

be provided to the agency by the Secretary in a lump sum when

requested by the agency, shall be invested in a wise and prudent

manner, and shall be used (together with any interest thereon

earned) only for eligible uses pursuant to paragraph (1)(L). A

public housing agency may use amounts in an endowment trust under

this paragraph in conjunction with other amounts donated or

otherwise made available to the trust for similar purposes.

(e) Application and selection

(1) Application

An application for a grant under this section shall demonstrate

the appropriateness of the proposal in the context of the local

housing market relative to other alternatives, and shall include

such other information and be submitted at such time and in

accordance with such procedures, as the Secretary shall

prescribe.

(2) Selection criteria

The Secretary shall establish selection criteria for the award

of grants under this section and shall include such factors as -

(A) the relationship of the grant to the public housing

agency plan for the applicant and how the grant will result in

a revitalized site that will enhance the neighborhood in which

the project is located and enhance economic opportunities for

residents;

(B) the capability and record of the applicant public housing

agency, or any alternative management entity for the agency,

for managing large-scale redevelopment or modernization

projects, meeting construction timetables, and obligating

amounts in a timely manner;

(C) the extent to which the applicant could undertake such

activities without a grant under this section;

(D) the extent of involvement of residents, State and local

governments, private service providers, financing entities, and

developers, in the development of a revitalization program for

the project;

(E) the need for affordable housing in the community;

(F) the supply of other housing available and affordable to

families receiving tenant-based assistance under section 1437f

of this title;

(G) the amount of funds and other resources to be leveraged

by the grant;

(H) the extent of the need for, and the potential impact of,

the revitalization program; and

(I) such other factors as the Secretary considers

appropriate.

(3) Applicability of selection criteria

The Secretary may determine not to apply certain of the

selection criteria established pursuant to paragraph (2) when

awarding grants for demolition only, tenant-based assistance

only, or other specific categories of revitalization activities.

This section may not be construed to require any application for

a grant under this section to include demolition of public

housing or to preclude use of grant amounts for rehabilitation or

rebuilding of any housing on an existing site.

(f) Cost limits

Subject to the provisions of this section, the Secretary -

(1) shall establish cost limits on eligible activities under

this section sufficient to provide for effective revitalization

programs; and

(2) may establish other cost limits on eligible activities

under this section.

(g) Disposition and replacement

Any severely distressed public housing disposed of pursuant to a

revitalization plan and any public housing developed in lieu of

such severely distressed housing, shall be subject to the

provisions of section 1437p of this title. Severely distressed

public housing demolished pursuant to a revitalization plan shall

not be subject to the provisions of section 1437p of this title.

(h) Administration by other entities

The Secretary may require a grantee under this section to make

arrangements satisfactory to the Secretary for use of an entity

other than the public housing agency to carry out activities

assisted under the revitalization plan, if the Secretary determines

that such action will help to effectuate the purposes of this

section.

(i) Withdrawal of funding

If a grantee under this section does not proceed within a

reasonable timeframe, in the determination of the Secretary, the

Secretary shall withdraw any grant amounts under this section that

have not been obligated by the public housing agency. The Secretary

shall redistribute any withdrawn amounts to one or more other

applicants eligible for assistance under this section or to one or

more other entities capable of proceeding expeditiously in the same

locality in carrying out the revitalization plan of the original

grantee.

(j) Definitions

For purposes of this section, the following definitions shall

apply:

(1) Applicant

The term "applicant" means -

(A) any public housing agency that is not designated as

troubled pursuant to section 1437d(j)(2) of this title;

(B) any public housing agency for which a private housing

management agent has been selected, or a receiver has been

appointed, pursuant to section 1437d(j)(3) of this title; and

(C) any public housing agency that is designated as troubled

pursuant to section 1437d(j)(2) of this title and that -

(i) is so designated principally for reasons that will not

affect the capacity of the agency to carry out a

revitalization program;

(ii) is making substantial progress toward eliminating the

deficiencies of the agency; or

(iii) is otherwise determined by the Secretary to be

capable of carrying out a revitalization program.

(2) Severely distressed public housing

The term "severely distressed public housing" means a public

housing project (or building in a project) -

(A) that -

(i) requires major redesign, reconstruction or

redevelopment, or partial or total demolition, to correct

serious deficiencies in the original design (including

inappropriately high population density), deferred

maintenance, physical deterioration or obsolescence of major

systems and other deficiencies in the physical plant of the

project;

(ii) is a significant contributing factor to the physical

decline of and disinvestment by public and private entities

in the surrounding neighborhood;

(iii)(I) is occupied predominantly by families who are very

low-income families with children, are unemployed, and

dependent on various forms of public assistance; or

(II) has high rates of vandalism and criminal activity

(including drug-related criminal activity) in comparison to

other housing in the area;

(iv) cannot be revitalized through assistance under other

programs, such as the program for capital and operating

assistance for public housing under this chapter, or the

programs under sections 1437g and 1437l of this title (as in

effect before the effective date under under (!2) section

503(a) (!2) the Quality Housing and Work Responsibility Act

of 1998), because of cost constraints and inadequacy of

available amounts; and

(v) in the case of individual buildings, is, in the

Secretary's determination, sufficiently separable from the

remainder of the project of which the building is part to

make use of the building feasible for purposes of this

section; or

(B) that was a project described in subparagraph (A) that has

been legally vacated or demolished, but for which the Secretary

has not yet provided replacement housing assistance (other than

tenant-based assistance).

(3) Supportive services

The term "supportive services" includes all activities that

will promote upward mobility, self-sufficiency, and improved

quality of life for the residents of the public housing project

involved, including literacy training, job training, day care,

transportation, and economic development activities.

(k) Grantee reporting

The Secretary shall require grantees of assistance under this

section to report the sources and uses of all amounts expended for

revitalization plans.

(l) Annual report

The Secretary shall submit to the Congress an annual report

setting forth -

(1) the number, type, and cost of public housing units

revitalized pursuant to this section;

(2) the status of projects identified as severely distressed

public housing;

(3) the amount and type of financial assistance provided under

and in conjunction with this section; and

(4) the recommendations of the Secretary for statutory and

regulatory improvements to the program established by this

section.

(m) Funding

(1) Authorization of appropriations

There are authorized to be appropriated for grants under this

section $600,000,000 for fiscal year 1999 and such sums as may be

necessary for each of fiscal years 2000, 2001, and 2002.

(2) Technical assistance and program oversight

Of the amount appropriated pursuant to paragraph (1) for any

fiscal year, the Secretary may use up to 2 percent for technical

assistance or contract expertise, including assistance in

connection with the establishment and operation of computer

centers in public housing through the Neighborhoods (!3) Networks

initiative described in subsection (d)(1)(G) of this section.

Such assistance or contract expertise may be provided directly or

indirectly by grants, contracts, or cooperative agreements, and

shall include training, and the cost of necessary travel for

participants in such training, by or to officials of the

Department of Housing and Urban Development, of public housing

agencies, and of residents.

(n) Sunset

No assistance may be provided under this section after September

30, 2002.

-SOURCE-

(Sept. 1, 1937, ch. 896, title I, Sec. 24, as added Pub. L.

102-550, title I, Sec. 120, Oct. 28, 1992, 106 Stat. 3695; amended

Pub. L. 104-99, title IV, Sec. 402(d)(6)(A)(vi), Jan. 26, 1996, 110

Stat. 43; Pub. L. 104-330, title V, Sec. 501(b)(9), Oct. 26, 1996,

110 Stat. 4042; Pub. L. 105-276, title V, Sec. 535(a), Oct. 21,

1998, 112 Stat. 2581; Pub. L. 106-377, Sec. 1(a)(1) [title II, Sec.

214(b)], Oct. 27, 2000, 114 Stat. 1441, 1441A-27.)

-REFTEXT-

REFERENCES IN TEXT

Section 1437l of this title, referred to in subsec.

(j)(2)(A)(iv), was repealed by Pub. L. 105-276, title V, Sec.

522(a), Oct. 21, 1998, 112 Stat. 2564.

Section 503(a) of the Quality Housing and Work Responsibility Act

of 1998, referred to in subsec. (j)(2)(A)(iv), is section 503(a) 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. (d)(1)(G). Pub. L. 106-377, Sec. 1(a)(1) [title

II, Sec. 214(b)(1)], inserted before semicolon ", including a

Neighborhood Networks initiative for the establishment and

operation of computer centers in public housing for the purpose of

enhancing the self-sufficiency, employability, an economic

self-reliance of public housing residents by providing them with

onsite computer access and training resources".

Subsec. (m)(2). Pub. L. 106-377, Sec. 1(a)(1) [title II, Sec.

214(b)(2)], inserted before period at end of first sentence ",

including assistance in connection with the establishment and

operation of computer centers in public housing through the

Neighborhoods Networks initiative described in subsection (d)(1)(G)

of this section".

1998 - Pub. L. 105-276 amended section generally. Prior to

amendment, section authorized planning grants for development of

revitalization programs for severely distressed public housing and

implementation grants to carry out revitalization programs for such

housing, authorized exceptions to general program rules,

established Office of Severely Distressed Public Housing

Revitalization, and required annual report to Congress.

1996 - Subsec. (e). Pub. L. 104-99 temporarily substituted

"Exception" for "Exceptions" in subsec. heading and struck out "(1)

Long-term viability. - " before "The Secretary may waive" and par.

(2) which read as follows:

"(2) Selection of tenants. - For projects revitalized under this

section, a public housing agency may select tenants pursuant to a

local system of preferences, in lieu of selecting tenants pursuant

to the preferences specified under section 1437d(c)(4)(A)(i) of

this title. Such local system shall be established in writing and

shall respond to local housing needs and priorities as determined

by the public housing agency. The public housing agency shall hold

1 or more public hearings to obtain the views of low-income tenants

and other interested parties on the housing needs and priorities of

the agency's jurisdiction." See Effective and Termination Dates of

1996 Amendments note below.

Subsec. (h)(3). Pub. L. 104-330 struck out ", except that it does

not include any Indian housing authority" after "section 1437a(b)

of this title".

EFFECTIVE DATE OF 1998 AMENDMENT

Pub. L. 105-276, title V, Sec. 535(b), Oct. 21, 1998, 112 Stat.

2586, provided that: "The amendment made by this section [amending

this section] is made on, and shall apply beginning upon, the date

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

EFFECTIVE AND TERMINATION DATES OF 1996 AMENDMENTS

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

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

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

Indians.

Amendment by Pub. L. 104-99 effective Jan. 26, 1996, only for

fiscal years 1996, 1997, and 1998, and to cease to be effective

Oct. 21, 1998, see section 402(f) of Pub. L. 104-99, as amended,

and section 514(f) of Pub. L. 105-276, set out as notes under

section 1437a of this title.

TERMINATION OF REPORTING REQUIREMENTS

For termination, effective May 15, 2000, of provisions of law

requiring submittal to Congress of any annual, semiannual, or other

regular periodic report listed in House Document No. 103-7 (in

which item 11 on page 104 identifies a reporting provision which,

as subsequently amended, is contained in subsec. (l) of this

section), see section 3003 of Pub. L. 104-66, as amended, set out

as a note under section 1113 of Title 31, Money and Finance.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1437c, 1437d of this

title.

-FOOTNOTE-

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

(!2) So in original.

(!3) So in original. Probably should be "Neighborhood".

-End-

-CITE-

42 USC Sec. 1437w 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 8 - LOW-INCOME HOUSING

SUBCHAPTER I - GENERAL PROGRAM OF ASSISTED HOUSING

-HEAD-

Sec. 1437w. Transfer of management of certain housing to

independent manager at request of residents

-STATUTE-

(a) Authority

The Secretary may transfer the responsibility and authority for

management of specified housing (as such term is defined in

subsection (h) of this section) from a public housing agency to an

eligible management entity, in accordance with the requirements of

this section, if -

(1) a request for transfer of management of such housing is

made and approved in accordance with subsection (b) of this

section; and

(2) the Secretary or the public housing agency, as appropriate

pursuant to subsection (b) of this section, determines that -

(A) due to the mismanagement of the agency, such housing has

deferred maintenance, physical deterioration, or obsolescence

of major systems and other deficiencies in the physical plant

of the project;

(B) such housing is located in an area such that the housing

is subject to recurrent vandalism and criminal activity

(including drug-related criminal activity); and

(C) the residents can demonstrate that the elements of

distress for such housing specified in subparagraphs (A) and

(B) can be remedied by an entity or entities, identified by the

residents, that has or have a demonstrated capacity to manage,

with reasonable expenses for modernization.

(b) Request for transfer

The responsibility and authority for managing specified housing

may be transferred only pursuant to a request made by a majority

vote of the residents for the specified housing that -

(1) in the case of specified housing that is owned by a public

housing agency that is designated as a troubled agency under

section 1437d(j)(2) of this title -

(A) is made to the public housing agency or the Secretary;

and

(B) is approved by the agency or the Secretary; or

(2) in the case of specified housing that is owned by a public

housing agency that is not designated as a troubled agency under

section 1437d(j)(2) of this title -

(A) is made to and approved by the public housing agency; or

(B) if a request is made to the agency pursuant to

subparagraph (A) and is not approved, is subsequently made to

and approved by the Secretary.

(c) Capital and operating assistance

Pursuant to a contract under subsection (d) of this section, the

Secretary shall require the public housing agency for specified

housing to provide to the manager for the housing, from any

assistance from the Capital and Operating Funds under section 1437g

of this title for the agency, fair and reasonable amounts for the

housing for eligible capital and operating activities under

subsection (d)(1) and (e)(1) of section 1437g of this title. The

amount made available under this subsection to a manager shall be

determined by the Secretary based on the share for the specified

housing of the aggregate amount of assistance from such Funds for

the public housing agency transferring the housing, taking into

consideration the operating and capital improvement needs of the

specified housing, the operating and capital improvement needs of

the remaining public housing units managed by the public housing

agency, and the public housing agency plan of such agency.

(d) Contract between Secretary and manager

(1) Requirements

Pursuant to the approval of a request under this section for

transfer of the management of specified housing, the Secretary

shall enter into a contract with the eligible management entity.

(2) Terms

A contract under this subsection shall contain provisions

establishing the rights and responsibilities of the manager with

respect to the specified housing and the Secretary and shall be

consistent with the requirements of this chapter applicable to

public housing projects.

(e) Compliance with public housing agency plan

A manager of specified housing under this section shall comply

with the approved public housing agency plan applicable to the

housing and shall submit such information to the public housing

agency from which management was transferred as may be necessary

for such agency to prepare and update its public housing agency

plan.

(f) Demolition and disposition by manager

A manager under this section may demolish or dispose of specified

housing only if, and in the manner, provided for in the public

housing agency plan for the agency transferring management of the

housing.

(g) Limitation on PHA liability

A public housing agency that is not a manager for specified

housing shall not be liable for any act or failure to act by a

manager or resident council for the specified housing.

(h) Definitions

For purposes of this section, the following definitions shall

apply:

(1) Eligible management entity

The term "eligible management entity" means, with respect to

any public housing project, any of the following entities:

(A) Nonprofit organization

A public or private nonprofit organization, which may -

(i) include a resident management corporation; and

(ii) not include the public housing agency that owns or

operates the project.

(B) For-profit entity

A for-profit entity that has demonstrated experience in

providing low-income housing.

(C) State or local government

A State or local government, including an agency or

instrumentality thereof.

(D) Public housing agency

A public housing agency (other than the public housing agency

that owns or operates the project).

The term does not include a resident council.

(2) Manager

The term "manager" means any eligible management entity that

has entered into a contract under this section with the Secretary

for the management of specified housing.

(3) Nonprofit

The term "nonprofit" means, with respect to an organization,

association, corporation, or other entity, that no part of the

net earnings of the entity inures to the benefit of any member,

founder, contributor, or individual.

(4) Private nonprofit organization

The term "private nonprofit organization" means any private

organization (including a State or locally chartered

organization) that -

(A) is incorporated under State or local law;

(B) is nonprofit in character;

(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 families.

(5) Public nonprofit organization

The term "public nonprofit organization" means any public

entity that is nonprofit in character.

(6) Specified housing

The term "specified housing" means a public housing project or

projects, or a portion of a project or projects, for which the

transfer of management is requested under this section. The term

includes one or more contiguous buildings and an area of

contiguous row houses, but in the case of a single building, the

building shall be sufficiently separable from the remainder of

the project of which it is part to make transfer of the

management of the building feasible for purposes of this section.

-SOURCE-

(Sept. 1, 1937, ch. 896, title I, Sec. 25, as added Pub. L.

105-276, title V, Sec. 534, Oct. 21, 1998, 112 Stat. 2579.)

-MISC1-

PRIOR PROVISIONS

A prior section 1437w, act Sept. 1, 1937, ch. 896, title I, Sec.

25, as added Pub. L. 102-550, title I, Sec. 121(b), Oct. 28, 1992,

106 Stat. 3701; amended Pub. L. 104-330, title V, Sec. 501(b)(10),

Oct. 26, 1996, 110 Stat. 4042, known as the Choice in Public

Housing Management Act of 1992, related to choice in public housing

management, prior to repeal by Pub. L. 105-276, title V, Secs. 503,

534, Oct. 21, 1998, 112 Stat. 2521, 2579, effective and applicable

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

provision that Secretary may implement repeal before such date, and

with savings provision.

EFFECTIVE DATE

Section effective and applicable beginning upon Oct. 1, 1999,

except as otherwise provided, with provision that Secretary may

implement section before such date except to extent otherwise

provided, see section 503 of Pub. L. 105-276, set out as an

Effective Date of 1998 Amendment note under section 1437 of this

title.

-End-

-CITE-

42 USC Sec. 1437x 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 8 - LOW-INCOME HOUSING

SUBCHAPTER I - GENERAL PROGRAM OF ASSISTED HOUSING

-HEAD-

Sec. 1437x. Environmental reviews

-STATUTE-

(a) In general

(1) Release of funds

In order to assure that the policies of the National

Environmental Policy Act of 1969 [42 U.S.C. 4321 et seq.] and

other provisions of law which further the purposes of such Act

(as specified in regulations issued by the Secretary) are most

effectively implemented in connection with the expenditure of

funds under this subchapter, and to assure to the public

undiminished protection of the environment, the Secretary may,

under such regulations, in lieu of the environmental protection

procedures otherwise applicable, provide for the release of funds

for projects or activities under this subchapter, as specified by

the Secretary upon the request of a public housing agency under

this section, if the State or unit of general local government,

as designated by the Secretary in accordance with regulations,

assumes all of the responsibilities for environmental review,

decisionmaking, and action pursuant to such Act, and such other

provisions of law as the regulations of the Secretary may

specify, which would otherwise apply to the Secretary with

respect to the release of funds.

(2) Implementation

The Secretary, after consultation with the Council on

Environmental Quality, shall issue such regulations as may be

necessary to carry out this section. Such regulations shall

specify the programs to be covered.

(b) Procedure

The Secretary shall approve the release of funds subject to the

procedures authorized by this section only if, not less than 15

days prior to such approval and prior to any commitment of funds to

such projects or activities, the public housing agency has

submitted to the Secretary a request for such release accompanied

by a certification of the State or unit of general local government

which meets the requirements of subsection (c) of this section. The

Secretary's approval of any such certification shall be deemed to

satisfy the Secretary's responsibilities under the National

Environmental Policy Act of 1969 [42 U.S.C. 4321 et seq.] and such

other provisions of law as the regulations of the Secretary specify

insofar as those responsibilities relate to the release of funds

which are covered by such certification.

(c) Certification

A certification under the procedures authorized by this section

shall -

(1) be in a form acceptable to the Secretary;

(2) be executed by the chief executive officer or other officer

of the State or unit of general local government who qualifies

under regulations of the Secretary;

(3) specify that the State or unit of general local government

under this section has fully carried out its responsibilities as

described under subsection (a) of this section; and

(4) specify that the certifying officer -

(A) consents to assume the status of a responsible Federal

official under the National Environmental Policy Act of 1969

[42 U.S.C. 4321 et seq.] and each provision of law specified in

regulations issued by the Secretary insofar as the provisions

of such Act or other such provision of law apply pursuant to

subsection (a) of this section; and

(B) is authorized and consents on behalf of the State or unit

of general local government and himself or herself to accept

the jurisdiction of the Federal courts for the purpose of

enforcement of his or her responsibilities as such an official.

(d) Approval by States

In cases in which a unit of general local government carries out

the responsibilities described in subsection (c) of this section,

the Secretary may permit the State to perform those actions of the

Secretary described in subsection (b) of this section and the

performance of such actions by the State, where permitted by the

Secretary, shall be deemed to satisfy the Secretary's

responsibilities referred to in the second sentence of subsection

(b) of this section.

-SOURCE-

(Sept. 1, 1937, ch. 896, title I, Sec. 26, as added Pub. L.

103-233, title III, Sec. 305(b), Apr. 11, 1994, 108 Stat. 371;

amended Pub. L. 104-330, title V, Sec. 501(b)(11), Oct. 26, 1996,

110 Stat. 4042.)

-REFTEXT-

REFERENCES IN TEXT

The National Environmental Policy Act of 1969, referred to in

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

1970, 83 Stat. 852, as amended, which is classified generally to

chapter 55 (Sec. 4321 et seq.) of this title. For complete

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

out under section 4321 of this title and Tables.

-MISC1-

AMENDMENTS

1996 - Subsecs. (a)(1), (b). Pub. L. 104-330 struck out

"(including an Indian housing authority)" after "public housing

agency".

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.

-End-

-CITE-

42 USC Sec. 1437y 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 8 - LOW-INCOME HOUSING

SUBCHAPTER I - GENERAL PROGRAM OF ASSISTED HOUSING

-HEAD-

Sec. 1437y. Provision of information to law enforcement and other

agencies

-STATUTE-

Notwithstanding any other provision of law, the Secretary shall,

at least 4 times annually and upon request of the Immigration and

Naturalization Service (hereafter in this section referred to as

the "Service"), furnish the Service with the name and address of,

and other identifying information on, any individual who the

Secretary knows is not lawfully present in the United States, and

shall ensure that each contract for assistance entered into under

section 1437d or 1437f of this title with a public housing agency

provides that the public housing agency shall furnish such

information at such times with respect to any individual who the

public housing agency knows is not lawfully present in the United

States.

-SOURCE-

(Sept. 1, 1937, ch. 896, title I, Sec. 27, as added Pub. L.

104-193, title IV, Sec. 404(d), Aug. 22, 1996, 110 Stat. 2267;

amended Pub. L. 105-33, title V, Sec. 5564, Aug. 5, 1997, 111 Stat.

639.)

-COD-

CODIFICATION

Another section 27 of act Sept. 1, 1937, was renumbered section

28, and is classified to section 1437z of this title.

-MISC1-

AMENDMENTS

1997 - Pub. L. 105-33 substituted "not lawfully present in the

United States" for "unlawfully in the United States" in two places.

EFFECTIVE DATE OF 1997 AMENDMENT

Amendment by Pub. L. 105-33 effective as if included in the

enactment of title IV of the Personal Responsibility and Work

Opportunity Reconciliation Act of 1996, Pub. L. 104-193, see

section 5582 of Pub. L. 105-33, set out as a note under section

1367 of Title 8, Aliens and Nationality.

-TRANS-

ABOLITION OF IMMIGRATION AND NATURALIZATION SERVICE AND TRANSFER OF

FUNCTIONS

For abolition of Immigration and Naturalization Service, transfer

of functions, and treatment of related references, see note set out

under section 1551 of Title 8, Aliens and Nationality.

-End-

-CITE-

42 USC Sec. 1437z 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 8 - LOW-INCOME HOUSING

SUBCHAPTER I - GENERAL PROGRAM OF ASSISTED HOUSING

-HEAD-

Sec. 1437z. Exchange of information with law enforcement agencies

-STATUTE-

Notwithstanding any other provision of law, each public housing

agency that enters into a contract for assistance under section

1437d or 1437f of this title with the Secretary shall furnish any

Federal, State, or local law enforcement officer, upon the request

of the officer, with the current address, Social Security number,

and photograph (if applicable) of any recipient of assistance under

this chapter, if the officer -

(1) furnishes the public housing agency with the name of the

recipient; and

(2) notifies the agency that -

(A) such recipient -

(i) is fleeing to avoid prosecution, or custody or

confinement after conviction, under the laws of the place

from which the individual flees, for a crime, or attempt to

commit a crime, which is a felony under the laws of the place

from which the individual flees, or which, in the case of the

State of New Jersey, is a high misdemeanor under the laws of

such State; or

(ii) is violating a condition of probation or parole

imposed under Federal or State law; or

(iii) has information that is necessary for the officer to

conduct the officer's official duties;

(B) the location or apprehension of the recipient is within

such officer's official duties; and

(C) the request is made in the proper exercise of the

officer's official duties.

-SOURCE-

(Sept. 1, 1937, ch. 896, title I, Sec. 28, formerly Sec. 27, as

added Pub. L. 104-193, title IX, Sec. 903(b), Aug. 22, 1996, 110

Stat. 2348; renumbered Sec. 28, Pub. L. 105-65, title V, Sec.

562(a)(1), Oct. 27, 1997, 111 Stat. 1416.)

-End-

-CITE-

42 USC Sec. 1437z-1 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 8 - LOW-INCOME HOUSING

SUBCHAPTER I - GENERAL PROGRAM OF ASSISTED HOUSING

-HEAD-

Sec. 1437z-1. Civil money penalties against section 1437f owners

-STATUTE-

(a) In general

(1) Effect on other remedies

The penalties set forth in this section shall be in addition to

any other available civil remedy or any available criminal

penalty, and may be imposed regardless of whether the Secretary

imposes other administrative sanctions.

(2) Failure of Secretary

The Secretary may not impose penalties under this section for a

violation, if a material cause of the violation is the failure of

the Secretary, an agent of the Secretary, or a public housing

agency to comply with an existing agreement.

(b) Violations of housing assistance payment contracts for which

penalty may be imposed

(1) Liable parties

The Secretary may impose a civil money penalty under this

section on -

(A) any owner of a property receiving project-based

assistance under section 8 [42 U.S.C. 1437f];

(B) any general partner of a partnership owner of that

property; and

(C) any agent employed to manage the property that has an

identity of interest with the owner or the general partner of a

partnership owner of the property.

(2) Violations

A penalty may be imposed under this section for a knowing and

material breach of a housing assistance payments contract,

including the following -

(A) failure to provide decent, safe, and sanitary housing

pursuant to section 8 [42 U.S.C. 1437f]; or

(B) knowing or willful submission of false, fictitious, or

fraudulent statements or requests for housing assistance

payments to the Secretary or to any department or agency of the

United States.

(3) Amount of penalty

The amount of a penalty imposed for a violation under this

subsection, as determined by the Secretary, may not exceed

$25,000 per violation.

(c) Agency procedures

(1) Establishment

The Secretary shall issue regulations establishing standards

and procedures governing the imposition of civil money penalties

under subsection (b) of this section. These standards and

procedures -

(A) shall provide for the Secretary or other department

official to make the determination to impose the penalty;

(B) shall provide for the imposition of a penalty only after

the liable party has received notice and the opportunity for a

hearing on the record; and

(C) may provide for review by the Secretary of any

determination or order, or interlocutory ruling, arising from a

hearing and judicial review, as provided under subsection (d)

of this section.

(2) Final orders

(A) In general

If a hearing is not requested before the expiration of the

15-day period beginning on the date on which the notice of

opportunity for hearing is received, the imposition of a

penalty under subsection (b) of this section shall constitute a

final and unappealable determination.

(B) Effect of review

If the Secretary reviews the determination or order, the

Secretary may affirm, modify, or reverse that determination or

order.

(C) Failure to review

If the Secretary does not review that determination or order

before the expiration of the 90-day period beginning on the

date on which the determination or order is issued, the

determination or order shall be final.

(3) Factors in determining amount of penalty

In determining the amount of a penalty under subsection (b) of

this section, the Secretary shall take into consideration -

(A) the gravity of the offense;

(B) any history of prior offenses by the violator (including

offenses occurring before the enactment of this section);

(C) the ability of the violator to pay the penalty;

(D) any injury to tenants;

(E) any injury to the public;

(F) any benefits received by the violator as a result of the

violation;

(G) deterrence of future violations; and

(H) such other factors as the Secretary may establish by

regulation.

(4) Payment of penalty

No payment of a civil money penalty levied under this section

shall be payable out of project income.

(d) Judicial review of agency determination

Judicial review of determinations made under this section shall

be carried out in accordance with section 1735f-15(e) of title 12.

(e) Remedies for noncompliance

(1) Judicial intervention

(A) In general

If a person or entity fails to comply with the determination

or order of the Secretary imposing a civil money penalty under

subsection (b) of this section, after the determination or

order is no longer subject to review as provided by subsections

(c) and (d) of this section, the Secretary may request the

Attorney General of the United States to bring an action in an

appropriate United States district court to obtain a monetary

judgment against that person or entity and such other relief as

may be available.

(B) Fees and expenses

Any monetary judgment awarded in an action brought under this

paragraph may, in the discretion of the court, include the

attorney's fees and other expenses incurred by the United

States in connection with the action.

(2) Nonreviewability of determination or order

In an action under this subsection, the validity and

appropriateness of the determination or order of the Secretary

imposing the penalty shall not be subject to review.

(f) Settlement by Secretary

The Secretary may compromise, modify, or remit any civil money

penalty which may be, or has been, imposed under this section.

(g) Deposit of penalties

(1) In general

Notwithstanding any other provision of law, if the mortgage

covering the property receiving assistance under section 8 [42

U.S.C. 1437f] is insured or was formerly insured by the

Secretary, the Secretary shall apply all civil money penalties

collected under this section to the appropriate insurance fund or

funds established under this chapter, as determined by the

Secretary.

(2) Exception

Notwithstanding any other provision of law, if the mortgage

covering the property receiving assistance under section 8 [42

U.S.C. 1437f] is neither insured nor formerly insured by the

Secretary, the Secretary shall make all civil money penalties

collected under this section available for use by the appropriate

office within the Department for administrative costs related to

enforcement of the requirements of the various programs

administered by the Secretary.

(h) Definitions

In this section -

(1) the term "agent employed to manage the property that has an

identity of interest" means an entity -

(A) that has management responsibility for a project;

(B) in which the ownership entity, including its general

partner or partners (if applicable), has an ownership interest;

and

(C) over which such ownership entity exerts effective

control; and

(2) the term "knowing" means having actual knowledge of or

acting with deliberate ignorance of or reckless disregard for the

prohibitions under this section.

-SOURCE-

(Sept. 1, 1937, ch. 896, title I, Sec. 29, as added Pub. L. 105-65,

title V, Sec. 562(a)(2), Oct. 27, 1997, 111 Stat. 1416.)

-MISC1-

EFFECTIVE DATE

Section 562(b) of Pub. L. 105-65 provided that: "The amendments

made by subsection (a) [enacting this section and amending section

1437z of this title] shall apply only with respect to -

"(1) violations that occur on or after the effective date of

final regulations implementing the amendments made by this

section; and

"(2) in the case of a continuing violation (as determined by

the Secretary of Housing and Urban Development), any portion of a

violation that occurs on or after such date."

REGULATIONS

Section 562(c) of Pub. L. 105-65 provided that:

"(1) Regulations. -

"(A) In general. - The Secretary shall implement the amendments

made by this section [enacting this section and amending section

1437z of this title] by regulation issued after notice and

opportunity for public comment.

"(B) Comments sought. - The notice under subparagraph (A) shall

seek comments as to the definitions of the terms 'ownership

interest in' and 'effective control', as such terms are used in

the definition of the term 'agent employed to manage such

property that has an identity of interest'.

"(2) Timing. - A proposed rule implementing the amendments made

by this section shall be published not later than 1 year after the

date of enactment of this Act [Oct. 27, 1997]."

-End-

-CITE-

42 USC Sec. 1437z-2 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 8 - LOW-INCOME HOUSING

SUBCHAPTER I - GENERAL PROGRAM OF ASSISTED HOUSING

-HEAD-

Sec. 1437z-2. Public housing mortgages and security interests

-STATUTE-

(a) General authorization

The Secretary may, upon such terms and conditions as the

Secretary may prescribe, authorize a public housing agency to

mortgage or otherwise grant a security interest in any public

housing project or other property of the public housing agency.

(b) Terms and conditions

In making any authorization under subsection (a) of this section,

the Secretary may consider -

(1) the ability of the public housing agency to use the

proceeds of the mortgage or security interest for low-income

housing uses;

(2) the ability of the public housing agency to make payments

on the mortgage or security interest; and

(3) such other criteria as the Secretary may specify.

(c) No Federal liability

No action taken under this section shall result in any liability

to the Federal Government.

-SOURCE-

(Sept. 1, 1937, ch. 896, title I, Sec. 30, as added Pub. L.

105-276, title V, Sec. 516, Oct. 21, 1998, 112 Stat. 2550.)

-MISC1-

EFFECTIVE DATE

Section effective and applicable beginning upon Oct. 1, 1999,

except as otherwise provided, with provision that Secretary may

implement section before such date except to extent otherwise

provided, see section 503 of Pub. L. 105-276, set out as an

Effective Date of 1998 Amendment note under section 1437 of this

title.

-End-

-CITE-

42 USC Sec. 1437z-3 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 8 - LOW-INCOME HOUSING

SUBCHAPTER I - GENERAL PROGRAM OF ASSISTED HOUSING

-HEAD-

Sec. 1437z-3. Pet ownership in public housing

-STATUTE-

(a) Ownership conditions

A resident of a dwelling unit in public housing (as such term is

defined in subsection (c) of this section) may own 1 or more common

household pets or have 1 or more common household pets present in

the dwelling unit of such resident, subject to the reasonable

requirements of the public housing agency, if the resident

maintains each pet responsibly and in accordance with applicable

State and local public health, animal control, and animal

anti-cruelty laws and regulations and with the policies established

in the public housing agency plan for the agency.

(b) Reasonable requirements

The reasonable requirements referred to in subsection (a) of this

section may include -

(1) requiring payment of a nominal fee, a pet deposit, or both,

by residents owning or having pets present, to cover the

reasonable operating costs to the project relating to the

presence of pets and to establish an escrow account for

additional costs not otherwise covered, respectively;

(2) limitations on the number of animals in a unit, based on

unit size;

(3) prohibitions on -

(A) types of animals that are classified as dangerous; and

(B) individual animals, based on certain factors, including

the size and weight of the animal; and

(4) restrictions or prohibitions based on size and type of

building or project, or other relevant conditions.

(c) Pet ownership in public housing designated for occupancy by

elderly or handicapped families

For purposes of this section, the term "public housing" has the

meaning given the term in section 1437a(b) of this title, except

that such term does not include any public housing that is

federally assisted rental housing for the elderly or handicapped,

as such term is defined in section 1701r-1(d) of title 12.

(d) Regulations

This section shall take effect upon the date of the effectiveness

of regulations issued by the Secretary to carry out this section.

Such regulations shall be issued after notice and opportunity for

public comment in accordance with the procedure under section 553

of title 5 applicable to substantive rules (notwithstanding

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

-SOURCE-

(Sept. 1, 1937, ch. 896, title I, Sec. 31, as added Pub. L.

105-276, title V, Sec. 526, Oct. 21, 1998, 112 Stat. 2568.)

-MISC1-

EFFECTIVE DATE

Section effective and applicable beginning upon Oct. 1, 1999,

except as otherwise provided, with provision that Secretary may

implement section before such date except to extent otherwise

provided, see section 503 of Pub. L. 105-276, set out as an

Effective Date of 1998 Amendment note under section 1437 of this

title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1437c-1 of this title.

-End-

-CITE-

42 USC Sec. 1437z-4 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 8 - LOW-INCOME HOUSING

SUBCHAPTER I - GENERAL PROGRAM OF ASSISTED HOUSING

-HEAD-

Sec. 1437z-4. Resident homeownership programs

-STATUTE-

(a) In general

A public housing agency may carry out a homeownership program in

accordance with this section and the public housing agency plan of

the agency to make public housing dwelling units, public housing

projects, and other housing projects available for purchase by

low-income families for use only as principal residences for such

families. An agency may transfer a unit pursuant to a homeownership

program only if the program is authorized under this section and

approved by the Secretary.

(b) Participating units

A program under this section may cover any existing public

housing dwelling units or projects, and may include other dwelling

units and housing owned, assisted, or operated, or otherwise

acquired for use under such program, by the public housing agency.

(c) Eligible purchasers

(1) Low-income requirement

Only low-income families assisted by a public housing agency,

other low-income families, and entities formed to facilitate such

sales by purchasing units for resale to low-income families shall

be eligible to purchase housing under a homeownership program

under this section.

(2) Other requirements

A public housing agency may establish other requirements or

limitations for families to purchase housing under a

homeownership program under this section, including requirements

or limitations regarding employment or participation in

employment counseling or training activities, criminal activity,

participation in homeownership counseling programs, evidence of

regular income, and other requirements. In the case of purchase

by an entity for resale to low-income families, the entity shall

sell the units to low-income families within 5 years from the

date of its acquisition of the units. The entity shall use any

net proceeds from the resale and from managing the units, as

determined in accordance with guidelines of the Secretary, for

housing purposes, such as funding resident organizations and

reserves for capital replacements.

(d) Right of first refusal

In making any sale under this section, the public housing agency

shall initially offer the public housing unit at issue to the

resident or residents occupying that unit, if any, or to an

organization serving as a conduit for sales to any such resident.

(e) Protection of nonpurchasing residents

If a public housing resident does not exercise the right of first

refusal under subsection (d) of this section with respect to the

public housing unit in which the resident resides, the public

housing agency -

(1) shall notify the resident residing in the unit 90 days

prior to the displacement date except in cases of imminent threat

to health or safety, consistent with any guidelines issued by the

Secretary governing such notifications, that -

(A) the public housing unit will be sold;

(B) the transfer of possession of the unit will occur until

the resident is relocated; and

(C) each resident displaced by such action will be offered

comparable housing -

(i) that meets housing quality standards;

(ii) that is located in an area that is generally not less

desirable than the location of the displaced resident's

housing; and

(iii) which may include -

(I) tenant-based assistance, except that the requirement

under this subclause regarding offering of comparable

housing shall be fulfilled by use of tenant-based

assistance only upon the relocation of such resident into

such housing;

(II) project-based assistance; or

(III) occupancy in a unit owned, operated, or assisted by

the public housing agency at a rental rate paid by the

resident that is comparable to the rental rate applicable

to the unit from which the resident is vacated;

(2) shall provide for the payment of the actual and reasonable

relocation expenses of the resident to be displaced;

(3) shall ensure that the displaced resident is offered

comparable housing in accordance with the notice under paragraph

(1);

(4) shall provide any necessary counseling for the displaced

resident; and

(5) shall not transfer possession of the unit until the

resident is relocated.

(f) Financing and assistance

A homeownership program under this section may provide financing

for acquisition of housing by families purchasing under the

program, or for acquisition of housing by the public housing agency

for sale under the program, in any manner considered appropriate by

the agency (including sale to a resident management corporation).

(g) Downpayment requirement

(1) In general

Each family purchasing housing under a homeownership program

under this section shall be required to provide from its own

resources a downpayment in connection with any loan for

acquisition of the housing, in an amount determined by the public

housing agency. Except as provided in paragraph (2), the agency

shall permit the family to use grant amounts, gifts from

relatives, contributions from private sources, and similar

amounts as downpayment amounts in such purchase.

(2) Direct family contribution

In purchasing housing pursuant to this section, each family

shall contribute an amount of the downpayment, from resources of

the family other than grants, gifts, contributions, or other

similar amounts referred to in paragraph (1), that is not less

than 1 percent of the purchase price.

(h) Ownership interests

A homeownership program under this section may provide for sale

to the purchasing family of any ownership interest that the public

housing agency considers appropriate under the program, including

ownership in fee simple, a condominium interest, an interest in a

limited dividend cooperative, a shared appreciation interest with a

public housing agency providing financing.

(i) Resale

(1) Authority and limitation

A homeownership program under this section shall permit the

resale of a dwelling unit purchased under the program by an

eligible family, but shall provide such limitations on resale as

the agency considers appropriate (whether the family purchases

directly from the agency or from another entity) for the agency

to recapture -

(A) some or all of the economic gain derived from any such

resale occurring during the 5-year period beginning upon

purchase of the dwelling unit by the eligible family; and

(B) after the expiration of such 5-year period, only such

amounts as are equivalent to the assistance provided under this

section by the agency to the purchaser.

(2) Considerations

The limitations referred to in paragraph (1)(A) may provide for

consideration of the aggregate amount of assistance provided

under the program to the family, the contribution to equity

provided by the purchasing eligible family, the period of time

elapsed between purchase under the homeownership program and

resale, the reason for resale, any improvements to the property

made by the eligible family, any appreciation in the value of the

property, and any other factors that the agency considers

appropriate.

(j) Net proceeds

The net proceeds of any sales under a homeownership program under

this section remaining after payment of all costs of the sale shall

be used for purposes relating to low-income housing and in

accordance with the public housing agency plan of the agency

carrying out the program.

(k) Homeownership assistance

From amounts distributed to a public housing agency under the

Capital Fund under section 1437g(d) of this title, or from other

income earned by the public housing agency, the public housing

agency may provide assistance to public housing residents to

facilitate the ability of those residents to purchase a principal

residence, including a residence other than a residence located in

a public housing project.

(l) Inapplicability of disposition requirements

The provisions of section 1437p of this title shall not apply to

disposition of public housing dwelling units under a homeownership

program under this section.

-SOURCE-

(Sept. 1, 1937, ch. 896, title I, Sec. 32, as added Pub. L.

105-276, title V, Sec. 536, Oct. 21, 1998, 112 Stat. 2586.)

-MISC1-

EFFECTIVE DATE

Section effective and applicable beginning upon Oct. 1, 1999,

except as otherwise provided, with provision that Secretary may

implement section before such date except to extent otherwise

provided, see section 503 of Pub. L. 105-276, set out as an

Effective Date of 1998 Amendment note under section 1437 of this

title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1437c-1, 1437g of this

title.

-End-

-CITE-

42 USC Sec. 1437z-5 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 8 - LOW-INCOME HOUSING

SUBCHAPTER I - GENERAL PROGRAM OF ASSISTED HOUSING

-HEAD-

Sec. 1437z-5. Required conversion of distressed public housing to

tenant-based assistance

-STATUTE-

(a) Identification of units

Each public housing agency shall identify all public housing

projects of the public housing agency that meet all of the

following requirements:

(1) The project is on the same or contiguous sites.

(2) The project is determined by the public housing agency to

be distressed, which determination shall be made in accordance

with guidelines established by the Secretary, which guidelines

shall take into account the criteria established in the Final

Report of the National Commission on Severely Distressed Public

Housing (August 1992).

(3) The project -

(A) is identified as distressed housing under paragraph (2)

for which the public housing agency cannot assure the long-term

viability as public housing through reasonable modernization

expenses, density reduction, achievement of a broader range of

family income, or other measures; or

(B) has an estimated cost, during the remaining useful life

of the project, of continued operation and modernization as

public housing that exceeds the estimated cost, during the

remaining useful life of the project, of providing tenant-based

assistance under section 1437f of this title for all families

in occupancy, based on appropriate indicators of cost (such as

the percentage of total development costs required for

modernization).

(b) Consultation

Each public housing agency shall consult with the appropriate

public housing residents and the appropriate unit of general local

government in identifying any public housing projects under

subsection (a) of this section.

(c) Plan for removal of units from inventories of PHAs

(1) Development

Each public housing agency shall develop and carry out a 5-year

plan in conjunction with the Secretary for the removal of public

housing units identified under subsection (a) of this section

from the inventory of the public housing agency and the annual

contributions contract.

(2) Approval

Each plan required under paragraph (1) shall -

(A) be included as part of the public housing agency plan;

(B) be certified by the relevant local official to be in

accordance with the comprehensive housing affordability

strategy under title I of the Housing and Community Development

Act of 1992; and

(C) include a description of any disposition and demolition

plan for the public housing units.

(3) Extensions

The Secretary may extend the 5-year deadline described in

paragraph (1) by not more than an additional 5 years if the

Secretary makes a determination that the deadline is

impracticable.

(4) Review by Secretary

(A) Failure to identify projects

If the Secretary determines, based on a plan submitted under

this subsection, that a public housing agency has failed to

identify 1 or more public housing projects that the Secretary

determines should have been identified under subsection (a) of

this section, the Secretary may designate the public housing

projects to be removed from the inventory of the public housing

agency pursuant to this section.

(B) Erroneous identification of projects

If the Secretary determines, based on a plan submitted under

this subsection, that a public housing agency has identified 1

or more public housing projects that should not have been

identified pursuant to subsection (a) of this section, the

Secretary shall -

(i) require the public housing agency to revise the plan of

the public housing agency under this subsection; and

(ii) prohibit the removal of any such public housing

project from the inventory of the public housing agency under

this section.

(d) Conversion to tenant-based assistance

(1) In general

To the extent approved in advance in appropriations Acts, the

Secretary shall make budget authority available to a public

housing agency to provide assistance under this chapter to

families residing in any public housing project that, pursuant to

this section, is removed from the inventory of the agency and the

annual contributions contract of the agency.

(2) Conversion requirements

Each agency carrying out a plan under subsection (c) of this

section for removal of public housing dwelling units from the

inventory of the agency shall -

(A) notify each family residing in a public housing project

to be converted under the plan 90 days prior to the

displacement date, except in cases of imminent threat to health

or safety, consistent with any guidelines issued by the

Secretary governing such notifications, that -

(i) the public housing project will be removed from the

inventory of the public housing agency; and

(ii) each family displaced by such action will be offered

comparable housing -

(I) that meets housing quality standards; and

(II) which may include -

(aa) tenant-based assistance, except that the

requirement under this clause regarding offering of

comparable housing shall be fulfilled by use of

tenant-based assistance only upon the relocation of such

family into such housing;

(bb) project-based assistance; or

(cc) occupancy in a unit operated or assisted by the

public housing agency at a rental rate paid by the family

that is comparable to the rental rate applicable to the

unit from which the family is vacated.

(B) provide any necessary counseling for families displaced

by such action;

(C) ensure that, if the project (or portion) converted is

used as housing after such conversion, each resident may choose

to remain in their dwelling unit in the project and use the

tenant-based assistance toward rent for that unit;

(D) ensure that each displaced resident is offered comparable

housing in accordance with the notice under subparagraph (A);

and

(E) provide any actual and reasonable relocation expenses for

families displaced by such action.

(e) Cessation of unnecessary spending

Notwithstanding any other provision of law, if, in the

determination of the Secretary, a project or projects of a public

housing agency meet or are likely to meet the criteria set forth in

subsection (a) of this section, the Secretary may direct the agency

to cease additional spending in connection with such project or

projects until the Secretary determines or approves an appropriate

course of action with respect to such project or projects under

this section, except to the extent that failure to expend such

amounts would endanger the health or safety of residents in the

project or projects.

(f) Use of budget authority

Notwithstanding any other provision of law, if a project or

projects are identified pursuant to subsection (a) of this section,

the Secretary may authorize or direct the transfer, to the

tenant-based assistance program of such agency or to appropriate

site revitalization or other capital improvements approved by the

Secretary, of -

(1) in the case of an agency receiving assistance under the

comprehensive improvement assistance program, any amounts

obligated by the Secretary for the modernization of such project

or projects pursuant to section 1437l of this title (as in effect

immediately before the effective date under section 503(a) of the

Quality Housing and Work Responsibility Act of 1998);

(2) in the case of an agency receiving public housing

modernization assistance by formula pursuant to such section

1437l of this title, any amounts provided to the agency which are

attributable pursuant to the formula for allocating such

assistance to such project or projects;

(3) in the case of an agency receiving assistance for the major

reconstruction of obsolete projects, any amounts obligated by the

Secretary for the major reconstruction of such project or

projects pursuant to section 1437c(j)(2) of this title, as in

effect immediately before the effective date under section 503(a)

of the Quality Housing and Work Responsibility Act of 1998; and

(4) in the case of an agency receiving assistance pursuant to

the formulas under section 1437g of this title, any amounts

provided to the agency which are attributable pursuant to the

formulas for allocating such assistance to such project or

projects.

(g) Removal by Secretary

The Secretary shall take appropriate actions to ensure removal of

any public housing project identified under subsection (a) of this

section from the inventory of a public housing agency, if the

public housing agency fails to adequately develop a plan under

subsection (c) of this section with respect to that project, or

fails to adequately implement such plan in accordance with the

terms of the plan.

(h) Administration

(1) In general

The Secretary may require a public housing agency to provide to

the Secretary or to public housing residents such information as

the Secretary considers to be necessary for the administration of

this section.

(2) Applicability of section 1437p

Section 1437p of this title shall not apply to the demolition

of public housing projects removed from the inventory of the

public housing agency under this section.

-SOURCE-

(Sept. 1, 1937, ch. 896, title I, Sec. 33, as added Pub. L.

105-276, title V, Sec. 537(a), Oct. 21, 1998, 112 Stat. 2588.)

-REFTEXT-

REFERENCES IN TEXT

Title I of the Housing and Community Development Act of 1992,

referred to in subsec. (c)(2)(B), is title I of Pub. L. 102-550,

Oct. 28, 1992, 106 Stat. 3681. For complete classification of title

I to the Code, see Tables.

Section 1437l of this title, referred to in subsec. (f)(1), (2),

was repealed by Pub. L. 105-276, title V, Sec. 522(a), Oct. 21,

1998, 112 Stat. 2564.

Section 503(a) of the Quality Housing and Work Responsibility Act

of 1998, referred to in subsec. (f)(1), (3), is section 503(a) of

Pub. L. 105-276, which is set out as an Effective Date of 1998

Amendment note under section 1437 of this title.

-MISC1-

EFFECTIVE DATE

Section effective and applicable beginning upon Oct. 1, 1999,

except as otherwise provided, with provision that Secretary may

implement section before such date except to extent otherwise

provided, see section 503 of Pub. L. 105-276, set out as an

Effective Date of 1998 Amendment note under section 1437 of this

title.

TRANSITION

Pub. L. 105-276, title V, Sec. 537(c), Oct. 21, 1998, 112 Stat.

2592, provided that:

"(1) Use of amounts. - Any amounts made available to a public

housing agency to carry out section 202 of the Departments of

Veterans Affairs and Housing and Urban Development, and Independent

Agencies Appropriations Act, 1996 (enacted as section 101(e) of the

Omnibus Consolidated Rescissions and Appropriations Act of 1996

(Public Law 104-134; 110 Stat. 1321-279)) [former 42 U.S.C. 1437l

note] may be used, to the extent or in such amounts as are or have

been provided in advance in appropriation Acts, to carry out

section 33 of the United States Housing Act of 1937 [42 U.S.C.

1437z-5] (as added by subsection (a) of this section).

"(2) Savings provision. - Notwithstanding the amendments made by

this section [enacting this section and repealing provisions set

out as a note under section 1437l of this title], section 202 of

the Departments of Veterans Affairs and Housing and Urban

Development, and Independent Agencies Appropriations Act, 1996 (42

U.S.C. 14371 [1437l] note) and any regulations implementing such

section, as in effect immediately before the enactment of this Act

[Oct. 21, 1998], shall continue to apply to public housing

developments identified by the Secretary or a public housing agency

for conversion pursuant to that section or for assessment of

whether such conversion is required prior to enactment of this

Act."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1437c-1 of this title.

-End-

-CITE-

42 USC Sec. 1437z-6 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 8 - LOW-INCOME HOUSING

SUBCHAPTER I - GENERAL PROGRAM OF ASSISTED HOUSING

-HEAD-

Sec. 1437z-6. Services for public and Indian housing residents

-STATUTE-

(a) In general

To the extent that amounts are provided in advance in

appropriations Acts, the Secretary may make grants to public

housing agencies on behalf of public housing residents, recipients

under the Native American Housing Assistance and Self-Determination

Act of 1996 [25 U.S.C. 4101 et seq.] (notwithstanding section 502

of such Act [25 U.S.C. 4181]) on behalf of residents of housing

assisted under such Act, or directly to resident management

corporations, resident councils, or resident organizations

(including nonprofit entities supported by residents), for the

purposes of providing a program of supportive services and resident

empowerment activities to provide supportive services to public

housing residents and residents of housing assisted under such Act

or assist such residents in becoming economically self-sufficient.

(b) Eligible activities

Grantees under this section may use such amounts only for

activities on or near the property of the public housing agency or

public housing project or the property of a recipient under such

Act or housing assisted under such Act that are designed to promote

the self-sufficiency of public housing residents or residents of

housing assisted under such Act or provide supportive services for

such residents, including activities relating to -

(1) physical improvements to a public housing project or

residents of housing assisted under such Act in order to provide

space for supportive services for residents;

(2) the provision of service coordinators or a congregate

housing services program for elderly individuals, elderly

disabled individuals, nonelderly disabled individuals, or

temporarily disabled individuals;

(3) the provision of services related to work readiness,

including education, job training and counseling, job search

skills, business development training and planning, tutoring,

mentoring, adult literacy, computer access, personal and family

counseling, health screening, work readiness health services,

transportation, and child care;

(4) economic and job development, including employer linkages

and job placement, and the start-up of resident microenterprises,

community credit unions, and revolving loan funds, including the

licensing, bonding, and insurance needed to operate such

enterprises;

(5) resident management activities and resident participation

activities; and

(6) other activities designed to improve the economic

self-sufficiency of residents.

(c) Funding distribution

(1) In general

Except for amounts provided under subsection (d) of this

section, the Secretary may distribute amounts made available

under this section on the basis of a competition or a formula, as

appropriate.

(2) Factors for distribution

Factors for distribution under paragraph (1) shall include -

(A) the demonstrated capacity of the applicant to carry out a

program of supportive services or resident empowerment

activities;

(B) the ability of the applicant to leverage additional

resources for the provision of services; and

(C) the extent to which the grant will result in a high

quality program of supportive services or resident empowerment

activities.

(d) Matching requirement

The Secretary may not make any grant under this section to any

applicant unless the applicant supplements amounts made available

under this section with funds from sources other than this section

in an amount equal to not less than 25 percent of the grant amount.

Such supplemental amounts may include -

(1) funds from other Federal sources;

(2) funds from any State, local, or tribal government sources;

(3) funds from private contributions; and

(4) the value of any in-kind services or administrative costs

provided to the applicant.

(e) Funding for resident organizations

To the extent that there are a sufficient number of qualified

applications for assistance under this section, not less than 25

percent of any amounts appropriated to carry out this section shall

be provided directly to resident councils, resident organizations,

and resident management corporations. In any case in which a

resident council, resident organization, or resident management

corporation lacks adequate expertise, the Secretary may require the

council, organization, or corporation to utilize other qualified

organizations as contract administrators with respect to financial

assistance provided under this section.

-SOURCE-

(Sept. 1, 1937, ch. 896, title I, Sec. 34, as added Pub. L.

105-276, title V, Sec. 538(a), Oct. 21, 1998, 112 Stat. 2592;

amended Pub. L. 106-377, Sec. 1(a)(1) [title II, Sec. 221(a)], Oct.

27, 2000, 114 Stat. 1441, 1441A-29.)

-REFTEXT-

REFERENCES IN TEXT

The Native American Housing Assistance and Self-Determination Act

of 1996, referred to in subsecs. (a) and (b), is Pub. L. 104-330,

Oct. 26, 1996, 110 Stat. 4016, as amended, which is classified

principally to chapter 43 (Sec. 4101 et seq.) of Title 25, Indians.

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

Title note set out under section 4101 of Title 25 and Tables.

-MISC1-

AMENDMENTS

2000 - Pub. L. 106-377, Sec. 1(a)(1) [title II, Sec. 221(a)(1)],

substituted "public and Indian housing" for "public housing" in

section catchline.

Subsec. (a). Pub. L. 106-377, Sec. 1(a)(1) [title II, Sec.

221(a)(2)], inserted "recipients under the Native American Housing

Assistance and Self-Determination Act of 1996 (notwithstanding

section 502 of such Act) on behalf of residents of housing assisted

under such Act," after "on behalf of public housing residents," and

inserted "and residents of housing assisted under such Act" after

"supportive services to public housing residents".

Subsec. (b). Pub. L. 106-377, Sec. 1(a)(1) [title II, Sec.

221(a)(3)(A), (B)], in introductory provisions, inserted "or the

property of a recipient under such Act or housing assisted under

such Act" after "public housing project" and "or residents of

housing assisted under such Act" after "public housing residents".

Subsec. (b)(1). Pub. L. 106-377, Sec. 1(a)(1) [title II, Sec.

221(a)(3)(C)], inserted "or residents of housing assisted under

such Act" after "public housing project".

Subsec. (d)(2). Pub. L. 106-377, Sec. 1(a)(1) [title II, Sec.

221(a)(4)], substituted "State, local, or tribal government" for

"State or local government".

EFFECTIVE DATE

Section effective and applicable beginning upon Oct. 1, 1999,

except as otherwise provided, with provision that Secretary may

implement section before such date except to extent otherwise

provided, see section 503 of Pub. L. 105-276, set out as an

Effective Date of 1998 Amendment note under section 1437 of this

title.

ASSESSMENT AND REPORT BY SECRETARY

Pub. L. 105-276, title V, Sec. 538(b), Oct. 21, 1998, 112 Stat.

2594, as amended by Pub. L. 106-377, Sec. 1(a)(1) [title II, Sec.

221(b)], Oct. 27, 2000, 114 Stat. 1441, 1441A-29, provided that:

"Not later than 3 years after the date of the enactment of the

Quality Housing and Work Responsibility Act of 1998 [Oct. 21,

1998], the Secretary of Housing and Urban Development shall -

"(1) conduct an evaluation and assessment of grants carried out

by resident organizations, and particularly of the effect of the

grants on living conditions in public housing and housing

assisted under the Native American Housing Assistance and

Self-Determination Act of 1996 [25 U.S.C. 4101 et seq.]; and

"(2) submit to the Congress a report setting forth the findings

of the Secretary as a result of the evaluation and assessment and

including any recommendations the Secretary determines to be

appropriate.

"This subsection shall take effect on the date of the enactment

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

-End-

-CITE-

42 USC Sec. 1437z-7 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 8 - LOW-INCOME HOUSING

SUBCHAPTER I - GENERAL PROGRAM OF ASSISTED HOUSING

-HEAD-

Sec. 1437z-7. Mixed-finance public housing

-STATUTE-

(a) Authority

A public housing agency may own, operate, assist, or otherwise

participate in 1 or more mixed-finance projects in accordance with

this section.

(b) Assistance

(1) Forms

A public housing agency may provide to a mixed-finance project

assistance from the Operating Fund under section 1437g of this

title, assistance from the Capital Fund under such section, or

both forms of assistance. A public housing agency may, in

accordance with regulations established by the Secretary, provide

capital assistance to a mixed-finance project in the form of a

grant, loan, guarantee, or other form of investment in the

project, which may involve drawdown of funds on a schedule

commensurate with construction draws for deposit into an

interest-bearing escrow account to serve as collateral or credit

enhancement for bonds issued by a public agency, or for other

forms of public or private borrowings, for the construction or

rehabilitation of the development.

(2) Use

To the extent deemed appropriate by the Secretary, assistance

used in connection with the costs associated with the operation

and management of mixed-finance projects may be used for funding

of an operating reserve to ensure affordability for low-income

and very low-income families in lieu of the availability of

operating funds for public housing units in a mixed-finance

project.

(c) Compliance with public housing requirements

The units assisted with capital or operating assistance in a

mixed-finance project shall be developed, operated, and maintained

in accordance with the requirements of this chapter relating to

public housing during the period required by under (!1) this

chapter, unless otherwise specified in this section. For purposes

of this chapter, any reference to public housing owned or operated

by a public housing agency shall include dwelling units in a mixed

finance project that are assisted by the agency with capital or

operating assistance.

(d) Mixed-finance projects

(1) In general

For purposes of this section, the term "mixed-finance project"

means a project that meets the requirements of paragraph (2) and

is financially assisted by private resources, which may include

low-income housing tax credits, in addition to amounts provided

under this chapter.

(2) Types of projects

The term includes a project that is developed -

(A) by a public housing agency or by an entity affiliated

with a public housing agency;

(B) by a partnership, a limited liability company, or other

entity in which the public housing agency (or an entity

affiliated with a public housing agency) is a general partner,

managing member, or otherwise participates in the activities of

that entity;

(C) by any entity that grants to the public housing agency

the right of first refusal and first option to purchase, after

the close of the compliance period, of the qualified low-income

building in which the public housing units exist in accordance

with section 42(i)(7) of title 26; or

(D) in accordance with such other terms and conditions as the

Secretary may prescribe by regulation.

(e) Structure of projects

Each mixed-finance project shall be developed -

(1) in a manner that ensures that public housing units are made

available in the project, by regulatory and operating agreement,

master contract, individual lease, condominium or cooperative

agreement, or equity interest;

(2) in a manner that ensures that the number of public housing

units bears approximately the same proportion to the total number

of units in the mixed-finance project as the value of the total

financial commitment provided by the public housing agency bears

to the value of the total financial commitment in the project, or

shall not be less than the number of units that could have been

developed under the conventional public housing program with the

assistance, or as may otherwise be approved by the Secretary; and

(3) in accordance with such other requirements as the Secretary

may prescribe by regulation.

(f) Taxation

(1) In general

A public housing agency may elect to exempt all public housing

units in a mixed-finance project -

(A) from the provisions of section 1437d(d) of this title,

and instead subject such units to local real estate taxes; and

(B) from the finding of need and cooperative agreement

provisions under section 1437c(e)(1)(ii) and 1437c(e)(2) of

this title, but only if the development of the units is not

inconsistent with the jurisdiction's comprehensive housing

affordability strategy.

(2) Low-income housing tax credit

With respect to any unit in a mixed-finance project that is

assisted pursuant to the low-income housing tax credit under

section 42 of title 26, the rents charged to the residents may be

set at levels not to exceed the amounts allowable under that

section, provided that such levels for public housing residents

do not exceed the amounts allowable under section 1437a of this

title.

(g) Use of savings

Notwithstanding any other provision of this chapter, to the

extent deemed appropriate by the Secretary, to facilitate the

establishment of socioeconomically mixed communities, a public

housing agency that uses assistance from the Capital Fund for a

mixed-finance project, to the extent that income from such a

project reduces the amount of assistance used for operating or

other costs relating to public housing, may use such resulting

savings to rent privately developed dwelling units in the

neighborhood of the mixed-finance project. Such units shall be made

available for occupancy only by low-income families eligible for

residency in public housing.

(h) Effect of certain contract terms

If an entity that owns or operates a mixed-finance project, that

includes a significant number of units other than public housing

units enters into a contract with a public housing agency, the

terms of which obligate the entity to operate and maintain a

specified number of units in the project as public housing units in

accordance with the requirements of this chapter for the period

required by law, such contractual terms may provide that, if, as a

result of a reduction in appropriations under section 1437g of this

title or any other change in applicable law, the public housing

agency is unable to fulfill its contractual obligations with

respect to those public housing units, that entity may deviate,

under procedures and requirements developed through regulations by

the Secretary, from otherwise applicable restrictions under this

chapter regarding rents, income eligibility, and other areas of

public housing management with respect to a portion or all of those

public housing units, to the extent necessary to preserve the

viability of those units while maintaining the low-income character

of the units to the maximum extent practicable.

-SOURCE-

(Sept. 1, 1937, ch. 896, title I, Sec. 35, as added Pub. L.

105-276, title V, Sec. 539[(a)], Oct. 21, 1998, 112 Stat. 2594.)

-MISC1-

EFFECTIVE DATE

Section effective and applicable beginning upon Oct. 1, 1999,

except as otherwise provided, with provision that Secretary may

implement section before such date except to extent otherwise

provided, see section 503 of Pub. L. 105-276, set out as an

Effective Date of 1998 Amendment note under section 1437 of this

title.

REGULATIONS

Pub. L. 105-276, title V, Sec. 539(b), Oct. 21, 1998, 112 Stat.

2596, provided that: "The Secretary shall issue such regulations as

may be necessary to promote the development of mixed-finance

projects, as that term is defined in section 3(b) of the United

States Housing Act of 1937 [42 U.S.C. 1437a(b)] (as amended by this

Act)."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1437a of this title.

-FOOTNOTE-

(!1) So in original.

-End-

-CITE-

42 USC SUBCHAPTER II - ASSISTED HOUSING FOR INDIANS AND

ALASKA NATIVES 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 8 - LOW-INCOME HOUSING

SUBCHAPTER II - ASSISTED HOUSING FOR INDIANS AND ALASKA NATIVES

-HEAD-

SUBCHAPTER II - ASSISTED HOUSING FOR INDIANS AND ALASKA NATIVES

-End-

-CITE-

42 USC Secs. 1437aa to 1437ee 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 8 - LOW-INCOME HOUSING

SUBCHAPTER II - ASSISTED HOUSING FOR INDIANS AND ALASKA NATIVES

-HEAD-

Secs. 1437aa to 1437ee. Repealed. Pub. L. 104-330, title V, Sec.

501(a), Oct. 26, 1996, 110 Stat. 4041

-MISC1-

Section 1437aa, act Sept. 1, 1937, ch. 896, title II, Sec. 201,

as added June 29, 1988, Pub. L. 100-358, Sec. 2, 102 Stat. 676;

amended Nov. 28, 1990, Pub. L. 101-625, title V, Sec. 572(2), 104

Stat. 4236; Oct. 28, 1992, Pub. L. 102-550, title I, Sec. 122(a),

106 Stat. 3708, related to establishment of separate program of

assisted housing for Indians and Alaska Natives.

Section 1437bb, act Sept. 1, 1937, ch. 896, title II, Sec. 202,

as added June 29, 1988, Pub. L. 100-358, Sec. 2, 102 Stat. 676;

amended Nov. 28, 1990, Pub. L. 101-625, title V, Secs. 516, 572(1),

104 Stat. 4199, 4236; Oct. 28, 1992, Pub. L. 102-550, title I, Sec.

122(b), 106 Stat. 3709, related to mutual help homeownership

opportunity program.

Section 1437cc, act Sept. 1, 1937, ch. 896, title II, Sec. 203,

as added June 29, 1988, Pub. L. 100-358, Sec. 2, 102 Stat. 679;

amended Nov. 28, 1990, Pub. L. 101-625, title V, Sec. 572(2), 104

Stat. 4236; Oct. 28, 1992, Pub. L. 102-550, title I, Sec. 122(c),

106 Stat. 3709, related to public housing maximum contributions,

provision of related facilities and services, and accessibility to

physically handicapped persons.

Section 1437dd, act Sept. 1, 1937, ch. 896, title II, Sec. 204,

as added June 29, 1988, Pub. L. 100-358, Sec. 2, 102 Stat. 679;

amended Nov. 28, 1990, Pub. L. 101-625, title V, Sec. 572(1), 104

Stat. 4236, related to annual report under section 3536 of this

title.

Section 1437ee, act Sept. 1, 1937, ch. 896, title II, Sec. 205,

as added June 29, 1988, Pub. L. 100-358, Sec. 2, 102 Stat. 680,

related to issuance of regulations to carry out this subchapter.

EFFECTIVE DATE OF REPEAL

Repeal 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.

-End-

-CITE-

42 USC Sec. 1437ff 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 8 - LOW-INCOME HOUSING

SUBCHAPTER II - ASSISTED HOUSING FOR INDIANS AND ALASKA NATIVES

-HEAD-

Sec. 1437ff. Transferred

-COD-

CODIFICATION

Section, Pub. L. 101-625, title IX, Sec. 959, Nov. 28, 1990, 104

Stat. 4423, which related to waiver of matching funds requirements

in Indian housing programs, was transferred to section 4104 of

Title 25, Indians.

-End-

-CITE-

42 USC SUBCHAPTER II-A - HOPE FOR PUBLIC HOUSING

HOMEOWNERSHIP 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 8 - LOW-INCOME HOUSING

SUBCHAPTER II09A - HOPE FOR PUBLIC HOUSING HOMEOWNERSHIP

-HEAD-

SUBCHAPTER II-A - HOPE FOR PUBLIC HOUSING HOMEOWNERSHIP

-MISC1-

AMENDMENTS

1996 - Pub. L. 104-330, title V, Sec. 501(c)(1), Oct. 26, 1996,

110 Stat. 4042, added subchapter heading and struck out former

subchapter heading which read as follows: "HOPE FOR PUBLIC AND

INDIAN HOUSING HOMEOWNERSHIP".

-SECREF-

SUBCHAPTER REFERRED TO IN OTHER SECTIONS

This subchapter is referred to in sections 1437f, 3535, 12870,

12873, 12874, 12876, 12894 of this title; title 12 sections 1709,

1831q, 1834a.

-End-

-CITE-

42 USC Sec. 1437aaa 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 8 - LOW-INCOME HOUSING

SUBCHAPTER II09A - HOPE FOR PUBLIC HOUSING HOMEOWNERSHIP

-HEAD-

Sec. 1437aaa. Program authority

-STATUTE-

(a) In general

The Secretary is authorized to make -

(1) planning grants to help applicants to develop homeownership

programs in accordance with this subchapter; and

(2) implementation grants to carry out homeownership programs

in accordance with this subchapter.

(b) Authority to reserve housing assistance

In connection with a grant under this subchapter, the Secretary

may reserve authority to provide assistance under section 1437f of

this title to the extent necessary to provide replacement housing

and rental assistance for a nonpurchasing tenant who resides in the

project on the date the Secretary approves the application for an

implementation grant, for use by the tenant in another project.

-SOURCE-

(Sept. 1, 1937, ch. 896, title III, Sec. 301, as added Pub. L.

101-625, title IV, Sec. 411, Nov. 28, 1990, 104 Stat. 4148; amended

Pub. L. 102-550, title I, Sec. 181(a)(2)(A), Oct. 28, 1992, 106

Stat. 3735.)

-MISC1-

AMENDMENTS

1992 - Subsec. (c). Pub. L. 102-550 struck out subsec. (c) which

read as follows: "There are authorized to be appropriated for

grants under this subchapter $68,000,000 for fiscal year 1991 and

$380,000,000 for fiscal year 1992. Any amount appropriated pursuant

to this subsection shall remain available until expended."

SHORT TITLE

Section 401 of title IV of Pub. L. 101-625 provided that: "This

title [enacting this subchapter and subchapter IV (Sec. 12871 et

seq.) of chapter 130 of this title, amending sections 1437c, 1437f,

1437l, 1437p, 1437r, and 1437s of this title and section 1709 of

Title 12, Banks and Banking, and enacting provisions set out as

notes under this section and sections 1437c and 1437aa of this

title] may be cited as the 'Homeownership and Opportunity Through

HOPE Act'."

ESTABLISHMENT AND IMPLEMENTATION OF REQUIREMENTS BY SECRETARY

Section 418 of Pub. L. 101-625 provided that: "Not later than the

expiration of the 180-day period beginning on the date that funds

authorized under title III of the United States Housing Act of 1937

[this subchapter] first become available for obligation, the

Secretary shall by notice establish such requirements as may be

necessary to carry out the provisions of this subtitle [subtitle A

(Secs. 411-419) of title IV of Pub. L. 101-625, enacting this

subchapter, amending sections 1437c, 1437f, 1437l, 1437p, 1437r,

and 1437s of this title, and enacting provisions set out as notes

under sections 1437c and 1437aa of this title]. Such requirements

shall be subject to section 553 of title 5, United States Code. The

Secretary shall issue regulations based on the initial notice

before the expiration of the 8-month period beginning on the date

of the notice."

-End-

-CITE-

42 USC Sec. 1437aaa-1 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 8 - LOW-INCOME HOUSING

SUBCHAPTER II09A - HOPE FOR PUBLIC HOUSING HOMEOWNERSHIP

-HEAD-

Sec. 1437aaa-1. Planning grants

-STATUTE-

(a) Grants

The Secretary is authorized to make planning grants to applicants

for the purpose of developing homeownership programs under this

subchapter. The amount of a planning grant under this section may

not exceed $200,000, except that the Secretary may for good cause

approve a grant in a higher amount.

(b) Eligible activities

Planning grants may be used for activities to develop

homeownership programs (which may include programs for cooperative

ownership), including -

(1) development of resident management corporations and

resident councils;

(2) training and technical assistance for applicants related to

development of a specific homeownership program;

(3) studies of the feasibility of a homeownership program;

(4) inspection for lead-based paint hazards, as required by

section 4822(a) of this title;

(5) preliminary architectural and engineering work;

(6) tenant and homebuyer counseling and training;

(7) planning for economic development, job training, and

self-sufficiency activities that promote economic

self-sufficiency of homebuyers and homeowners under the

homeownership program;

(8) development of security plans; and

(9) preparation of an application for an implementation grant

under this subchapter.

(c) Application

(1) Form and procedures

An application for a planning grant shall be submitted by an

applicant in such form and in accordance with such procedures as

the Secretary shall establish.

(2) Minimum requirements

The Secretary shall require that an application contain at a

minimum -

(A) a request for a planning grant, specifying the activities

proposed to be carried out, the schedule for completing the

activities, the personnel necessary to complete the activities,

and the amount of the grant requested;

(B) a description of the applicant and a statement of its

qualifications;

(C) identification and description of the public housing

project or projects involved, and a description of the

composition of the tenants, including family size and income;

(D) a certification by the public official responsible for

submitting the comprehensive housing affordability strategy

under section 12705 of this title that the proposed activities

are consistent with the approved housing strategy of the State

or unit of general local government within which the project is

located (or, during the first 12 months after November 28,

1990, that the application is consistent with such other

existing State or local housing plan or strategy that the

Secretary shall determine to be appropriate); and

(E) a certification that the applicant will comply with the

requirements of the Fair Housing Act [42 U.S.C. 3601 et seq.],

title VI of the Civil Rights Act of 1964 [42 U.S.C. 2000d et

seq.], section 794 of title 29, and the Age Discrimination Act

of 1975 [42 U.S.C. 6101 et seq.], and will affirmatively

further fair housing.

(d) Selection criteria

The Secretary shall, by regulation, establish selection criteria

for a national competition for assistance under this section, which

shall include -

(1) the qualifications or potential capabilities of the

applicant;

(2) the extent of tenant interest in the development of a

homeownership program for the project;

(3) the potential of the applicant for developing a successful

and affordable homeownership program and the suitability of the

project for homeownership;

(4) national geographic diversity among projects for which

applicants are selected to receive assistance; and

(5) such other factors that the Secretary shall require that

(in the determination of the Secretary) are appropriate for

purposes of carrying out the program established by this

subchapter in an effective and efficient manner.

-SOURCE-

(Sept. 1, 1937, ch. 896, title III, Sec. 302, as added Pub. L.

101-625, title IV, Sec. 411, Nov. 28, 1990, 104 Stat. 4149; amended

Pub. L. 102-550, title X, Sec. 1012(h)(1), Oct. 28, 1992, 106 Stat.

3906.)

-REFTEXT-

REFERENCES IN TEXT

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

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

which is classified principally to subchapter I (Sec. 3601 et seq.)

of chapter 45 of this title. For complete classification of this

Act to the Code, see Short Title note set out under section 3601 of

this title and Tables.

The Civil Rights Act of 1964, referred to in subsec. (c)(2)(E),

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

of the Act is classified generally to subchapter V (Sec. 2000d et

seq.) of chapter 21 of this title. For complete classification of

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

2000a of this title and Tables.

The Age Discrimination Act of 1975, referred to in subsec.

(c)(2)(E), is title III of Pub. L. 94-135, Nov. 28, 1975, 89 Stat.

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

6101 et seq.) of this title. For complete classification of this

Act to the Code, see Short Title note set out under section 6101 of

this title and Tables.

-MISC1-

AMENDMENTS

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

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

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1437aaa-2, 1437aaa-4 of

this title.

-End-

-CITE-

42 USC Sec. 1437aaa-2 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 8 - LOW-INCOME HOUSING

SUBCHAPTER II09A - HOPE FOR PUBLIC HOUSING HOMEOWNERSHIP

-HEAD-

Sec. 1437aaa-2. Implementation grants

-STATUTE-

(a) Grants

The Secretary is authorized to make implementation grants to

applicants for the purpose of carrying out homeownership programs

approved under this subchapter.

(b) Eligible activities

Implementation grants may be used for activities to carry out

homeownership programs (including programs for cooperative

ownership) that meet the requirements under this subchapter,

including the following activities:

(1) Architectural and engineering work.

(2) Implementation of the homeownership program, including

acquisition of the public housing project from a public housing

agency for the purpose of transferring ownership to eligible

families in accordance with a homeownership program that meets

the requirements under this subchapter.

(3) Rehabilitation of any public housing project covered by the

homeownership program, in accordance with standards established

by the Secretary.

(4) Abatement of lead-based paint hazards, as required by

section 4822(a) of this title.

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

15 percent of the amount of assistance provided under this

section.

(6) Development of resident management corporations and

resident management councils, but only if the applicant has not

received assistance under section 1437aaa-1 of this title for

such activities.

(7) Counseling and training of homebuyers and homeowners under

the homeownership program.

(8) Relocation of tenants who elect to move.

(9) Any necessary temporary relocation of tenants during

rehabilitation.

(10) Funding of operating expenses and replacement reserves of

the project covered by the homeownership program, except that the

amount of assistance for operating expenses shall not exceed the

amount the project would have received if it had continued to

receive such assistance from the Operating Fund, with adjustments

comparable to those that would have been made under section 1437g

of this title, and except that implementation grants may not be

used under this paragraph to fund operating expenses for

scattered site public housing acquired under a homeownership

program.

(11) Implementation of a replacement housing plan.

(12) Legal fees.

(13) Defraying costs for the ongoing training needs of the

recipient that are related to developing and carrying out the

homeownership program.

(14) Economic development activities that promote economic

self-sufficiency of homebuyers, residents, and homeowners under

the homeownership program.

(c) Matching funding

(1) In general

Each recipient shall assure that contributions equal to not

less than 25 percent of the grant amount made available under

this section, excluding any amounts provided for post-sale

operating expenses and replacement housing, shall be provided

from non-Federal sources to carry out the homeownership program.

(2) Form

Such contributions may be in the form of -

(A) cash contributions from non-Federal resources, which may

not include Federal tax expenditures or funds from a grant made

under section 5306(b) of this title or section 5306(d) of this

title;

(B) payment of administrative expenses, as defined by the

Secretary, from non-Federal resources, including funds from a

grant made under section 5306(b) of this title or section

5306(d) of this title;

(C) the value of taxes, fees, or other charges that are

normally and customarily imposed but are waived, foregone, or

deferred in a manner that facilitates the implementation of a

homeownership program assisted under this subchapter;

(D) the value of land or other real property as appraised

according to procedures acceptable to the Secretary;

(E) the value of investment in on-site and off-site

infrastructure required for a homeownership program assisted

under this subchapter; or

(F) such other in-kind contributions as the Secretary may

approve.

Contributions for administrative expenses shall be recognized

only up to an amount equal to 7 percent of the total amount of

grants made available under this section.

(3) Reduction of requirement

The Secretary shall reduce the matching requirement for

homeownership programs carried out under this section in

accordance with the formula established under section 220(d) of

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

12750(d)].

(d) Application

(1) Form and procedure

An application for an implementation grant shall be submitted

by an applicant in such form and in accordance with such

procedures as the Secretary shall establish.

(2) Minimum requirements

The Secretary shall require that an application contain at a

minimum -

(A) a request for an implementation grant, specifying the

amount of the grant requested and its proposed uses;

(B) if applicable, an application for assistance under

section 1437f of this title, which shall specify the proposed

uses of such assistance and the period during which the

assistance will be needed;

(C) a description of the qualifications and experience of the

applicant in providing housing for low-income families;

(D) a description of the proposed homeownership program,

consistent with section 1437aaa-3 of this title and the other

requirements of this subchapter, which shall specify the

activities proposed to be carried out and their estimated

costs, identifying reasonable schedules for carrying it out,

and demonstrating that the program will comply with the

affordability requirements under section 1437aaa-3(b) of this

title;

(E) identification and description of the public housing

project or projects involved, and a description of the

composition of the tenants, including family size and income;

(F) a description of and commitment for the resources that

are expected to be made available to provide the matching

funding required under subsection (c) of this section and of

other resources that are expected to be made available in

support of the homeownership program;

(G) identification and description of the financing proposed

for any (i) rehabilitation and (ii) acquisition (I) of the

property, where applicable, by a resident council or other

entity for transfer to eligible families, and (II) by eligible

families of ownership interests in, or shares representing,

units in the project;

(H) if the applicant is not a public housing agency, the

proposed sales price, if any, the basis for such price

determination, and terms to the applicant;

(I) the estimated sales prices, if any, and terms to eligible

families;

(J) any proposed restrictions on the resale of units under a

homeownership program;

(K) identification and description of the entity that will

operate and manage the property;

(L) a certification by the public official responsible for

submitting the comprehensive housing affordability strategy

under section 105 of the Cranston-Gonzalez National Affordable

Housing Act [42 U.S.C. 12705] that the proposed activities are

consistent with the approved housing strategy of the State or

unit of general local government within which the project is

located (or, during the first 12 months after November 28,

1990, that the application is consistent with such other

existing State or local housing plan or strategy that the

Secretary shall determine to be appropriate); and

(M) a certification that the applicant will comply with the

requirements of the Fair Housing Act [42 U.S.C. 3601 et seq.],

title VI of the Civil Rights Act of 1964 [42 U.S.C. 2000d et

seq.], section 794 of title 29, and the Age Discrimination Act

of 1975 [42 U.S.C. 6101 et seq.], and will affirmatively

further fair housing.

(e) Selection criteria

The Secretary shall establish selection criteria for a national

competition for assistance under this section, which shall include

-

(1) the ability of the applicant to develop and carry out the

proposed homeownership program, taking into account the quality

of any related ongoing program of the applicant, and the extent

of tenant interest in the development of a homeownership program

and community support;

(2) the feasibility of the homeownership program;

(3) the extent to which current tenants and other eligible

families will be able to afford the purchase;

(4) the quality and viability of the proposed homeownership

program, including the viability of the economic self-sufficiency

plan;

(5) the extent to which funds for activities that do not

qualify as eligible activities will be provided in support of the

homeownership program;

(6) whether the approved comprehensive housing affordability

strategy for the jurisdiction within which the public housing

project is located includes the proposed homeownership program as

one of the general priorities identified pursuant to section

105(b)(7) of the Cranston-Gonzalez National Affordable Housing

Act [42 U.S.C. 12705(b)(7)];

(7) national geographic diversity among housing for which

applicants are selected to receive assistance; and

(8) the extent to which a sufficient supply of affordable

rental housing exists in the locality, so that the implementation

of the homeownership program will not reduce the number of such

rental units available to residents currently residing in such

units or eligible for residency in such units.

(f) Location within participating jurisdictions

The Secretary may approve applications for grants under this

subchapter only for public housing projects located within the

boundaries of jurisdictions -

(1) which are participating jurisdictions under title III of

the Cranston-Gonzalez National Affordable Housing Act; or

(2) on behalf of which the agency responsible for affordable

housing has submitted a housing strategy or plan.

(g) Approval

The Secretary shall notify each applicant, not later than 6

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

the application is approved or not approved. The Secretary may

approve the application for an implementation grant with a

statement that the application for the section 8 [42 U.S.C. 1437f]

assistance for replacement housing and for residents of the project

not purchasing units is conditionally approved, subject to the

availability of appropriations in subsequent fiscal years.

-SOURCE-

(Sept. 1, 1937, ch. 896, title III, Sec. 303, as added Pub. L.

101-625, title IV, Sec. 411, Nov. 28, 1990, 104 Stat. 4150; amended

Pub. L. 102-550, title I, Sec. 181(b), (c), (g)(1), title X, Sec.

1012(h)(2), Oct. 28, 1992, 106 Stat. 3735, 3736, 3906; Pub. L.

105-276, title V, Sec. 519(c)(1), Oct. 21, 1998, 112 Stat. 2561.)

-REFTEXT-

REFERENCES IN TEXT

This subchapter, referred to in subsecs. (b) (introductory

provisions) and (c)(2)(C), (E), was in the original "this

subtitle", and was translated as reading "this title", meaning

title III of act Sept. 1, 1937, ch. 896, as added by Pub. L.

101-625, to reflect the probable intent of Congress, because title

III of act Sept. 1, 1937, does not contain subtitles.

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

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

which is classified principally to subchapter I of chapter 45 (Sec.

3601 et seq.) of this title. For complete classification of this

Act to the Code, see Short Title note set out under section 3601 of

this title and Tables.

The Civil Rights Act of 1964, referred to in subsec. (d)(2)(M),

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

of the Act is classified generally to subchapter V (Sec. 2000d et

seq.) of chapter 21 of this title. For complete classification of

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

2000a of this title and Tables.

The Age Discrimination Act of 1975, referred to in subsec.

(d)(2)(M), is title III of Pub. L. 94-135, Nov. 28, 1975, 89 Stat.

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

6101 et seq.) of this title. For complete classification of this

Act to the Code, see Short Title note set out under section 6101 of

this title and Tables.

The Cranston-Gonzalez National Affordable Housing Act, referred

to in subsec. (f)(1), is Pub. L. 101-625, Nov. 28, 1990, 104 Stat.

4079. Title III of the Act enacted subchapter III (Sec. 12851 et

seq.) of chapter 130 of this title and sections 1735f-17 and

1735f-18 of Title 12, Banks and Banking, amended sections 1703,

1708, 1709, 1715d, 1715z-20, 1721, and 1735f-9 of Title 12, and

enacted provisions set out as notes under sections 1703, 1709,

1713, and 1735f-18 of Title 12. 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

1998 - Subsec. (b)(10). Pub. L. 105-276 substituted "such

assistance from the Operating Fund" for "such assistance under

section 1437g of this title".

1992 - Subsec. (b)(2). Pub. L. 102-550, Sec. 181(g)(1)(A), struck

out "(not including scattered site single family housing of a

public housing agency)" after "public housing project".

Subsec. (b)(4) to (8). Pub. L. 102-550, Sec. 1012(h)(2), added

par. (4) and redesignated former pars. (4) to (7) as (5) to (8),

respectively. Former par. (8) redesignated (9).

Subsec. (b)(9). Pub. L. 102-550, Sec. 1012(h)(2)(A), redesignated

par. (8) as (9). Former par. (9) redesignated (10).

Pub. L. 102-550, Sec. 181(g)(1)(B), which directed insertion of

", and except that implementation grants may not be used under this

paragraph to fund operating expenses for scattered site public

housing acquired under a homeownership program" before period at

end of section "303(b)(9) of the Cranston-Gonzalez National

Affordable Housing Act (42 U.S.C. 1437aaa-2(b)(9))", was executed

by making the insertion before period at end of subsec. (b)(9) of

this section, which is section 303 of the United States Housing Act

of 1937, to reflect the probable intent of Congress.

Subsec. (b)(10) to (14). Pub. L. 102-550, Sec. 1012(h)(2)(A),

redesignated pars. (9) to (13) as (10) to (14), respectively.

Subsec. (c)(1). Pub. L. 102-550, Sec. 181(b)(1), inserted "and

replacement housing" after "expenses".

Subsec. (c)(3). Pub. L. 102-550, Sec. 181(b)(2), added par. (3).

Subsec. (e)(8). Pub. L. 102-550, Sec. 181(c), struck out "of the

type assisted under this subchapter" after "rental housing" and

"appreciably" before "reduce".

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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1437aaa-4 of this title.

-End-

-CITE-

42 USC Sec. 1437aaa-3 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 8 - LOW-INCOME HOUSING

SUBCHAPTER II09A - HOPE FOR PUBLIC HOUSING HOMEOWNERSHIP

-HEAD-

Sec. 1437aaa-3. Homeownership program requirements

-STATUTE-

(a) In general

A homeownership program under this subchapter shall provide for

acquisition by eligible families of ownership interests in, or

shares representing, at least one-half of the units in a public

housing project under any arrangement determined by the Secretary

to be appropriate, such as cooperative ownership (including limited

equity cooperative ownership) and fee simple ownership (including

condominium ownership), for occupancy by the eligible families.

(b) Affordability

A homeownership program under this subchapter shall provide for

the establishment of sales prices (including principal, insurance,

taxes, and interest and closing costs) for initial acquisition of

the property from the public housing agency if the applicant is not

a public housing agency, and for sales to eligible families, such

that an eligible family shall not be required to expend more than

30 percent of the adjusted income of the family per month to

complete a sale under the homeownership program.

(c) Plan

A homeownership program under this subchapter shall provide, and

include a plan, for -

(1) identifying and selecting eligible families to participate

in the homeownership program;

(2) providing relocation assistance to families who elect to

move;

(3) ensuring continued affordability by tenants, homebuyers,

and homeowners in the project;

(4) providing ongoing training and counseling for homebuyers

and homeowners; and

(5) replacing units in eligible projects covered by a

homeownership program.

(d) Acquisition and rehabilitation limitations

Acquisition or rehabilitation of public housing projects under a

homeownership program under this subchapter may not consist of

acquisition or rehabilitation of less than the whole public housing

project in a project consisting of more than 1 building. The

provisions of this subsection may be waived upon a finding by the

Secretary that the sale of less than all the buildings in a project

is feasible and will not result in a hardship to any tenants of the

project who are not included in the homeownership program.

(e) Financing

(1) In general

The application shall identify and describe the proposed

financing for (A) any rehabilitation, and (B) acquisition (i) of

the project, where applicable, by an entity other than the public

housing agency for transfer to eligible families, and (ii) by

eligible families of ownership interests in, or shares

representing, units in the project. Financing may include use of

the implementation grant, sale for cash, or other sources of

financing (subject to applicable requirements), including

conventional mortgage loans and mortgage loans insured under

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

(2) Prohibition against pledges

Property transferred under this subchapter shall not be pledged

as collateral for debt or otherwise encumbered except when the

Secretary determines that -

(A) such encumbrance will not threaten the long-term

availability of the property for occupancy by low-income

families;

(B) neither the Federal Government nor the public housing

agency will be exposed to undue risks related to action that

may have to be taken pursuant to paragraph (3);

(C) any debt obligation can be serviced from project income,

including operating assistance; and

(D) the proceeds of such encumbrance will be used only to

meet housing standards in accordance with subsection (f) of

this section or to make such additional capital improvements as

the Secretary determines to be consistent with the purposes of

this subchapter.

(3) Opportunity to cure

Any lender that provides financing in connection with a

homeownership program under this subchapter shall give the public

housing agency, resident management corporation, individual

owner, or other appropriate entity a reasonable opportunity to

cure a financial default before foreclosing on the property, or

taking other action as a result of the default.

(f) Housing quality standards

The application shall include a plan ensuring that the unit -

(1) will be free from any defects that pose a danger to health

or safety before transfer of an ownership interest in, or shares

representing, a unit to an eligible family; and

(2) will, not later than 2 years after the transfer to an

eligible family, meet minimum housing standards established by

the Secretary for the purposes of this subchapter.

(g) Repealed. Pub. L. 105-276, title V, Sec. 531(b)(1), Oct. 21,

1998, 112 Stat. 2573

(h) Protection of non-purchasing families

(1) In general

No tenant residing in a dwelling unit in a public housing

project on the date the Secretary approves an application for an

implementation grant may be evicted by reason of a homeownership

program approved under this subchapter.

(2) Replacement assistance

If the tenant decides not to purchase a unit, or is not

qualified to do so, the recipient shall, during the term of any

operating assistance under the implementation grant, permit each

otherwise qualified tenant to continue to reside in the project

at rents that do not exceed levels consistent with section

1437a(a) of this title or, if an otherwise qualified tenant

chooses to move (at any time during the term of such operating

assistance contract), the public housing agency shall, to the

extent approved in appropriations Acts, offer such tenant (A) a

unit in another public housing project, or (B) section 8 [42

U.S.C. 1437f] assistance for use in other housing.

(3) Relocation assistance

The recipient shall also inform each such tenant that if the

tenant chooses to move, the recipient will pay relocation

assistance in accordance with the approved homeownership program.

(4) Other rights

Tenants renting a unit in a project transferred under this

subchapter shall have all rights provided to tenants of public

housing under this chapter.

-SOURCE-

(Sept. 1, 1937, ch. 896, title III, Sec. 304, as added Pub. L.

101-625, title IV, Sec. 411, Nov. 28, 1990, 104 Stat. 4153; amended

Pub. L. 102-550, title I, Sec. 181(g)(1)(A), Oct. 28, 1992, 106

Stat. 3736; Pub. L. 104-19, title I, Sec. 1002(b), July 27, 1995,

109 Stat. 236; Pub. L. 105-276, title V, Sec. 531(b)(1), Oct. 21,

1998, 112 Stat. 2573.)

-REFTEXT-

REFERENCES IN TEXT

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

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

Act is classified principally to subchapter II (Sec. 1707 et seq.)

of chapter 13 of Title 12, Banks and Banking. For complete

classification of this Act to the Code, see section 1701 of Title

12 and Tables.

This subchapter, referred to in subsec. (e)(3), was in the

original "this subtitle", and was translated as reading "this

title", meaning title III of act Sept. 1, 1937, ch. 896, as added

by Pub. L. 101-625, to reflect the probable intent of Congress,

because title III of act Sept. 1, 1937, does not contain subtitles.

-MISC1-

AMENDMENTS

1998 - Subsec. (g). Pub. L. 105-276 struck out subsec. (g) which

prohibited transfer of projects without plan for replacement

housing. See 1995 Amendment note below.

1995 - Subsec. (g). Pub. L. 104-19 struck out subsec. (g) which

prohibited transfer of projects without plan for replacement

housing.

1992 - Subsec. (d). Pub. L. 102-550 struck out "(not including

scattered site single family housing of a public housing agency)"

after "housing project".

EFFECTIVE DATE OF 1998 AMENDMENT

Amendment by section 531(b)(1) of Pub. L. 105-276 effective with

respect to any plan for the demolition, disposition, or conversion

to homeownership of public housing that is approved by Secretary

after Sept. 30, 1995, see section 531(b)(2) of Pub. L. 105-276, set

out as a note below.

EFFECTIVE DATE OF 1995 AMENDMENT

Amendment by Pub. L. 104-19 effective for applications for

demolition, disposition, or conversion to homeownership of public

housing approved by the Secretary, and other consolidation and

relocation activities of public housing agencies undertaken on,

before, or after Sept. 30, 1995, and on or before Sept. 30, 1998,

see section 1002(d) of Pub. L. 104-19, as amended, set out as a

note under section 1437c of this title.

HOMEOWNERSHIP REPLACEMENT PLAN

Pub. L. 105-276, title V, Sec. 531(b), Oct. 21, 1998, 112 Stat.

2573, provided that:

"(1) In general. - Notwithstanding subsections (b) and (c) of

section 1002 of the Emergency Supplemental Appropriations for

Additional Disaster Assistance, for Anti-terrorism Initiatives, for

Assistance in the Recovery from the Tragedy that Occurred At

Oklahoma City, and Rescissions Act, 1995 [amending this section and

enacting provision set out as a note under section 1437c of this

title] (Public Law 104-19; 109 Stat. 236), subsection (g) of

section 304 of the United States Housing Act of 1937 (42 U.S.C.

1437aaa-3(g)) is repealed.

"(2) Effective date. - The amendment made by paragraph (1) shall

be effective with respect to any plan for the demolition,

disposition, or conversion to homeownership of public housing that

is approved by the Secretary after September 30, 1995."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1437aaa-2 of this title.

-End-

-CITE-

42 USC Sec. 1437aaa-4 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 8 - LOW-INCOME HOUSING

SUBCHAPTER II09A - HOPE FOR PUBLIC HOUSING HOMEOWNERSHIP

-HEAD-

Sec. 1437aaa-4. Other program requirements

-STATUTE-

(a) Sale by public housing agency to applicant or other entity

required

Where the Secretary approves an application providing for the

transfer of the eligible project from the public housing agency to

another applicant, the public housing agency shall transfer the

project to such other applicant, in accordance with the approved

homeownership program.

(b) Preferences

In selecting eligible families for homeownership, the recipient

shall give a first preference to otherwise qualified current

tenants and a second preference to otherwise qualified eligible

families who have completed participation in an economic

self-sufficiency program specified by the Secretary.

(c) Cost limitations

The Secretary may establish cost limitations on eligible

activities under this subchapter, subject to the provisions of this

subchapter.

(d) Annual contributions

Notwithstanding the purchase of a public housing project under

this section, or the purchase of a unit in a public housing project

by an eligible family, the Secretary shall continue to pay annual

contributions with respect to the project. Such contributions may

not exceed the maximum contributions authorized in section 1437c(a)

of this title.

(e) Amounts from Operating Fund allocation

Amounts from an allocation from the Operating Fund under section

1437g of this title shall not be available with respect to a public

housing project after the date of its sale by the public housing

agency.

(f) Use of proceeds from sales to eligible families

The entity that transfers ownership interests in, or shares

representing, units to eligible families, or another entity

specified in the approved application, shall use the proceeds, if

any, from the initial sale for costs of the homeownership program,

including operating expenses, improvements to the project, business

opportunities for low-income families, supportive services related

to the homeownership program, additional homeownership

opportunities, and other activities approved by the Secretary.

(g) Restrictions on resale by homeowners

(1) In general

(A) Transfer permitted

A homeowner under a homeownership program may transfer the

homeowner's ownership interest in, or shares representing, the

unit, except that a homeownership program may establish

restrictions on the resale of units under the program.

(B) Right to purchase

Where a resident management corporation, resident council, or

cooperative has jurisdiction over the unit, the corporation,

council, or cooperative shall have the right to purchase the

ownership interest in, or shares representing, the unit from

the homeowner for the amount specified in a firm contract

between the homeowner and a prospective buyer. If such an

entity does not have jurisdiction over the unit or elects not

to purchase and if the prospective buyer is not a low-income

family, the public housing agency or the implementation grant

recipient shall have the right to purchase the ownership

interest in, or shares representing, the unit for the same

amount.

(C) Promissory note required

The homeowner shall execute a promissory note equal to the

difference between the market value and the purchase price,

payable to the public housing agency or other entity designated

in the homeownership plan, together with a mortgage securing

the obligation of the note.

(2) 6 years or less

In the case of a transfer within 6 years of the acquisition

under the program, the homeownership program shall provide for

appropriate restrictions to assure that an eligible family may

not receive any undue profit. The plan shall provide for limiting

the family's consideration for its interest in the property to

the total of -

(A) the contribution to equity paid by the family;

(B) the value, as determined by such means as the Secretary

shall determine through regulation, of any improvements

installed at the expense of the family during the family's

tenure as owner; and

(C) the appreciated value determined by an inflation

allowance at a rate which may be based on a cost-of-living

index, an income index, or market index as determined by the

Secretary through regulation and agreed to by the purchaser and

the entity that transfers ownership interests in, or shares

representing, units to eligible families (or another entity

specified in the approved application), at the time of initial

sale, and applied against the contribution to equity.

Such an entity may, at the time of initial sale, enter into an

agreement with the family to set a maximum amount which this

appreciation may not exceed.

(3) 6-20 years

In the case of a transfer during the period beginning 6 years

after the acquisition and ending 20 years after the acquisition,

the homeownership program shall provide for the recapture by the

Secretary or the program of an amount equal to the amount of the

declining balance on the note described in paragraph (1)(C).

(4) Use of recaptured funds

Fifty percent of any portion of the net sales proceeds that may

not be retained by the homeowner under the plan approved pursuant

to this subsection shall be paid to the entity that transferred

ownership interests in, or shares representing, units to eligible

families, or another entity specified in the approved

application, for use for improvements to the project, business

opportunities for low-income families, supportive services

related to the homeownership program, additional homeownership

opportunities, and other activities approved by the Secretary.

The remaining 50 percent shall be returned to the Secretary for

use under this subchapter, subject to limitations contained in

appropriations Acts. Such entity shall keep and make available to

the Secretary all records necessary to calculate accurately

payments due the Secretary under this subsection.

(h) Third party rights

The requirements under this subchapter regarding quality

standards, resale, or transfer of the ownership interest of a

homeowner shall be judicially enforceable against the grant

recipient with respect to actions involving rehabilitation, and

against purchasers of property under this subsection or their

successors in interest with respect to other actions by affected

low-income families, resident management corporations, resident

councils, public housing agencies, and any agency, corporation, or

authority of the United States Government. The parties specified in

the preceding sentence shall be entitled to reasonable attorney

fees upon prevailing in any such judicial action.

(i) Dollar limitation on economic development activities

Not more than an aggregate of $250,000 from amounts made

available under sections 1437aaa-1 and 1437aaa-2 of this title may

be used for economic development activities under sections

1437aaa-1(b)(6) (!1) and 1437aaa-2(b)(9) (!1) of this title for any

project.

(j) Timely homeownership

Recipients shall transfer ownership of the property to tenants

within a specified period of time that the Secretary determines to

be reasonable. During the interim period when the property

continues to be operated and managed as rental housing, the

recipient shall utilize written tenant selection policies and

criteria that are consistent with the public housing program and

that are approved by the Secretary as consistent with the purpose

of improving housing opportunities for low-income families. The

recipient shall promptly notify in writing any rejected applicant

of the grounds for any rejection.

(k) Capability of resident management corporations and resident

councils

To be eligible to receive a grant under section 1437aaa-2 of this

title, a resident management corporation or resident council shall

demonstrate to the Secretary its ability to manage public housing

by having done so effectively and efficiently for a period of not

less than 3 years or by arranging for management by a qualified

management entity.

(l) Records and audit of recipients of assistance

(1) In general

Each recipient shall keep such records as may be reasonably

necessary to fully disclose the amount and the disposition by

such recipient of the proceeds of assistance received under this

subchapter (and any proceeds from financing obtained in

accordance with subsection (b) of this section or sales under

subsections (f) and (g)(4) of this section), the total cost of

the homeownership program in connection with which such

assistance is given or used, and the amount and nature of that

portion of the program supplied by other sources, and such other

sources as will facilitate an effective audit.

(2) Access by the Secretary

The Secretary shall have access for the purpose of audit and

examination to any books, documents, papers, and records of the

recipient that are pertinent to assistance received under this

subchapter.

(3) Access by the Comptroller General

The Comptroller General of the United States, or any of the

duly authorized representatives of the Comptroller General, shall

also have access for the purpose of audit and examination to any

books, documents, papers, and records of the recipient that are

pertinent to assistance received under this subchapter.

-SOURCE-

(Sept. 1, 1937, ch. 896, title III, Sec. 305, as added Pub. L.

101-625, title IV, Sec. 411, Nov. 28, 1990, 104 Stat. 4155; amended

Pub. L. 105-276, title V, Sec. 519(c)(2), Oct. 21, 1998, 112 Stat.

2561.)

-REFTEXT-

REFERENCES IN TEXT

This subchapter, referred to in subsec. (g)(4), was in the

original "this subtitle", and was translated as reading "this

title", meaning title III of act Sept. 1, 1937, ch. 896, as added

by Pub. L. 101-625, to reflect the probable intent of Congress,

because title III of act Sept. 1, 1937, does not contain subtitles.

Section 1437aaa-1(b)(6) of this title, referred to in subsec.

(i), was redesignated section 1437aaa-1(b)(7) of this title by Pub.

L. 102-550, title X, Sec. 1012(h)(1)(A), Oct. 28, 1992, 106 Stat.

3906.

Section 1437aaa-2(b)(9) of this title, referred to in subsec.

(i), was redesignated section 1437aaa-2(b)(10) of this title by

Pub. L. 102-550, title X, Sec. 1012(h)(2)(A), Oct. 28, 1992, 106

Stat. 3906.

-MISC1-

AMENDMENTS

1998 - Subsec. (e). Pub. L. 105-276 substituted "Amounts from an

allocation from the Operating Fund" for "Operating subsidies".

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.

-FOOTNOTE-

(!1) See References in Text note below.

-End-

-CITE-

42 USC Sec. 1437aaa-5 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 8 - LOW-INCOME HOUSING

SUBCHAPTER II09A - HOPE FOR PUBLIC HOUSING HOMEOWNERSHIP

-HEAD-

Sec. 1437aaa-5. Definitions

-STATUTE-

For purposes of this subchapter:

(1) The term "applicant" means the following entities that may

represent the tenants of the project:

(A) A public housing agency.

(B) A resident management corporation, established in

accordance with requirements of the Secretary under section

1437r of this title.

(C) A resident council.

(D) A cooperative association.

(E) A public or private nonprofit organization.

(F) A public body, including an agency or instrumentality

thereof.

(2) The term "eligible family" means -

(A) a family or individual who is a tenant in the public

housing project on the date the Secretary approves an

implementation grant;

(B) a low-income family; or

(C) a family or individual who is assisted under a housing

program administered by the Secretary or the Secretary of

Agriculture (not including any non-low income families assisted

under any mortgage insurance program administered by either

Secretary).

(3) The term "homeownership program" means a program for

homeownership meeting the requirements under this subchapter.

(4) The term "recipient" means an applicant approved to receive

a grant under this subchapter or such other entity specified in

the approved application that will assume the obligations of the

recipient under this subchapter.

(5) The term "resident council" means any incorporated

nonprofit organization or association that -

(A) is representative of the tenants of the housing;

(B) adopts written procedures providing for the election of

officers on a regular basis; and

(C) has a democratically elected governing board, elected by

the tenants of the housing.

-SOURCE-

(Sept. 1, 1937, ch. 896, title III, Sec. 306, as added Pub. L.

101-625, title IV, Sec. 411, Nov. 28, 1990, 104 Stat. 4158; amended

Pub. L. 104-330, title V, Sec. 501(c)(2), Oct. 26, 1996, 110 Stat.

4042.)

-MISC1-

AMENDMENTS

1996 - Par. (1)(A). Pub. L. 104-330, Sec. 501(c)(2)(A), struck

out "(including an Indian housing authority)" after "agency".

Par. (2)(A). Pub. L. 104-330, Sec. 501(c)(2)(B), struck out "or

Indian" after "public".

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.

-End-

-CITE-

42 USC Sec. 1437aaa-6 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 8 - LOW-INCOME HOUSING

SUBCHAPTER II09A - HOPE FOR PUBLIC HOUSING HOMEOWNERSHIP

-HEAD-

Sec. 1437aaa-6. Relationship to other homeownership opportunities

-STATUTE-

The program authorized under this subchapter shall be in addition

to any other public housing homeownership and management

opportunities, including opportunities under section 1437c(h) (!1)

of this title.

-SOURCE-

(Sept. 1, 1937, ch. 896, title III, Sec. 307, as added Pub. L.

101-625, title IV, Sec. 411, Nov. 28, 1990, 104 Stat. 4159; amended

Pub. L. 104-330, title V, Sec. 501(c)(3), Oct. 26, 1996, 110 Stat.

4042; Pub. L. 105-276, title V, Sec. 518(a)(2)(C), Oct. 21, 1998,

112 Stat. 2551.)

-REFTEXT-

REFERENCES IN TEXT

Section 1437c(h) of this title, referred to in text, was repealed

and a new section 1437c(h), relating to audits, was added by Pub.

L. 105-276, title V, Secs. 518(a)(1)(A), 566, Oct. 21, 1998, 112

Stat. 2551, 2632. See 1998 Amendment note below.

-MISC1-

AMENDMENTS

1998 - Pub. L. 105-276, which directed amendment of text by

striking out "section 5(h) and" in original (a reference to section

1437c(h) of this title), could not be executed because the word

"and" does not appear.

1996 - Pub. L. 104-330 struck out "and subchapter II of this

chapter" after "section 1437c(h) of this title".

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 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.

-FOOTNOTE-

(!1) See References in Text note below.

-End-

-CITE-

42 USC Sec. 1437aaa-7 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 8 - LOW-INCOME HOUSING

SUBCHAPTER II09A - HOPE FOR PUBLIC HOUSING HOMEOWNERSHIP

-HEAD-

Sec. 1437aaa-7. Limitation on selection criteria

-STATUTE-

In establishing criteria for selecting applicants to receive

assistance under this subchapter, the Secretary may not establish

any selection criterion or criteria that grant or deny such

assistance to an applicant (or have the effect of granting or

denying assistance) based on the implementation, continuation, or

discontinuation of any public policy, regulation, or law of any

jurisdiction in which the applicant or project is located.

-SOURCE-

(Sept. 1, 1937, ch. 896, title III, Sec. 308, as added Pub. L.

101-625, title IV, Sec. 411, Nov. 28, 1990, 104 Stat. 4159.)

-End-

-CITE-

42 USC Sec. 1437aaa-8 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 8 - LOW-INCOME HOUSING

SUBCHAPTER II09A - HOPE FOR PUBLIC HOUSING HOMEOWNERSHIP

-HEAD-

Sec. 1437aaa-8. Annual report

-STATUTE-

The Secretary shall annually submit to the Congress a report

setting forth -

(1) the number, type, and cost of public housing units sold

pursuant to this subchapter;

(2) the income, race, gender, children, and other

characteristics of families participating (or not participating)

in homeownership programs funded under this subchapter;

(3) the amount and type of financial assistance provided under

and in conjunction with this subchapter;

(4) the amount of financial assistance provided under this

subchapter that was needed to ensure continued affordability and

meet future maintenance and repair costs; and

(5) the recommendations of the Secretary for statutory and

regulatory improvements to the program.

-SOURCE-

(Sept. 1, 1937, ch. 896, title III, Sec. 309, as added Pub. L.

101-625, title IV, Sec. 411, Nov. 28, 1990, 104 Stat. 4159.)

-End-

-CITE-

42 USC SUBCHAPTER II-B - HOME RULE FLEXIBLE GRANT

DEMONSTRATION 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 8 - LOW-INCOME HOUSING

SUBCHAPTER II09B - HOME RULE FLEXIBLE GRANT DEMONSTRATION

-HEAD-

SUBCHAPTER II-B - HOME RULE FLEXIBLE GRANT DEMONSTRATION

-End-

-CITE-

42 USC Sec. 1437bbb 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 8 - LOW-INCOME HOUSING

SUBCHAPTER II09B - HOME RULE FLEXIBLE GRANT DEMONSTRATION

-HEAD-

Sec. 1437bbb. Purpose

-STATUTE-

The purpose of this subchapter is to demonstrate the

effectiveness of authorizing local governments and municipalities,

in coordination with the public housing agencies for such

jurisdictions -

(1) to receive and combine program allocations of covered

housing assistance; and

(2) to design creative approaches for providing and

administering Federal housing assistance based on the particular

needs of the jurisdictions that -

(A) provide incentives to low-income families with children

whose head of the household is employed, seeking employment, or

preparing for employment by participating in a job training or

educational program, or any program that otherwise assists

individuals in obtaining employment and attaining economic

self-sufficiency;

(B) reduce costs of Federal housing assistance and achieve

greater cost-effectiveness in Federal housing assistance

expenditures;

(C) increase the stock of affordable housing and housing

choices for low-income families;

(D) increase homeownership among low-income families;

(E) reduce geographic concentration of assisted families;

(F) reduce homelessness through providing permanent housing

solutions;

(G) improve program management; and

(H) achieve such other purposes with respect to low-income

families, as determined by the participating local governments

and municipalities in coordination with the public housing

agencies; (!1)

-SOURCE-

(Sept. 1, 1937, ch. 896, title IV, Sec. 401, as added Pub. L.

105-276, title V, Sec. 561, Oct. 21, 1998, 112 Stat. 2616.)

-MISC1-

EFFECTIVE DATE

Act Sept. 1, 1937, ch. 896, title IV, Sec. 411, as added by Pub.

L. 105-276, title V, Sec. 561, Oct. 21, 1998, 112 Stat. 2624,

provided that: "This title [enacting this subchapter] shall take

effect on the date of the enactment of the Quality Housing and Work

Responsibility Act of 1998 [Oct. 21, 1998]."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1437bbb-1, 1437bbb-5,

1437bbb-7 of this title.

-FOOTNOTE-

(!1) So in original. The semicolon probably should be a period.

-End-

-CITE-

42 USC Sec. 1437bbb-1 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 8 - LOW-INCOME HOUSING

SUBCHAPTER II09B - HOME RULE FLEXIBLE GRANT DEMONSTRATION

-HEAD-

Sec. 1437bbb-1. Flexible grant program

-STATUTE-

(a) Authority and use

The Secretary shall carry out a demonstration program in

accordance with the purposes under section 1437bbb of this title

and the provisions of this subchapter. A jurisdiction approved by

the Secretary for participation in the program may receive and

combine and enter into performance-based contracts for the use of

amounts of covered housing assistance, in the manner determined

appropriate by the participating jurisdiction, during the period of

the jurisdiction's participation -

(1) to provide housing assistance and services for low-income

families in a manner that facilitates the transition of such

families to work;

(2) to reduce homelessness through providing permanent housing

solutions;

(3) to increase homeownership among low-income families; or

(4) for other housing purposes for low-income families

determined by the participating jurisdiction.

(b) Period of participation

A jurisdiction may participate in the demonstration program under

this subchapter for a period consisting of not less than 1 nor more

than 5 fiscal years.

(c) Participating jurisdictions

(1) In general

Subject to paragraph (2), during the 4-year period consisting

of fiscal years 1999 through 2002, the Secretary may approve for

participation in the program under this subchapter not more than

an aggregate of 100 jurisdictions over the entire term of the

demonstration program. A jurisdiction that was approved for

participation in the demonstration program under this subchapter

in a fiscal year and that is continuing such participation in any

subsequent fiscal year shall count as a single jurisdiction for

purposes of the numerical limitation under this paragraph.

(2) Exclusion of high performing agencies

Notwithstanding any other provision of this subchapter other

than paragraph (4) of this subsection, the Secretary may approve

for participation in the demonstration program under this

subchapter only jurisdictions served by public housing agencies

that -

(A) are not designated as high-performing agencies, pursuant

to their most recent scores under the public housing management

assessment program under section 1437d(j)(2) of this title (or

any successor assessment program for public housing agencies),

as of the time of approval; and

(B) have a most recent score under the public housing

management assessment program under section 1437d(j)(2) of this

title (or any successor assessment program for public housing

agencies), as of the time of approval, that is among the lowest

40 percent of the scores of all agencies.

(3) Limitation on troubled and non-troubled PHAs

Of the jurisdictions approved by the Secretary for

participation in the demonstration program under this subchapter

-

(A) not more than 55 may be jurisdictions served by a public

housing agency that, at the time of approval, is designated as

a troubled agency under the public housing management

assessment program under section 1437d(j)(2) of this title (or

any successor assessment program for public housing agencies);

and

(B) not more than 45 may be jurisdictions served by a public

housing agency that, at the time of approval, is not designated

as a troubled agency under the public housing management

assessment program under section 1437d(j)(2) of this title (or

any successor assessment program for public housing agencies).

(4) Exception

If the City of Indianapolis, Indiana submits an application for

participation in the program under this subchapter and, upon

review of the application under section 1437bbb-5(b) of this

title, the Secretary determines that such application is

approvable under this subchapter, the Secretary shall approve

such application, notwithstanding the second sentence of section

1437bbb-5(b)(2) of this title. Such City shall count for purposes

of the numerical limitations on jurisdictions under paragraphs

(1) and (3) of this subsection, but the provisions of paragraph

(2) of this subsection (relating to exclusion of high-performing

agencies) shall not apply to such City.

-SOURCE-

(Sept. 1, 1937, ch. 896, title IV, Sec. 402, as added Pub. L.

105-276, title V, Sec. 561, Oct. 21, 1998, 112 Stat. 2617.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1437bbb-5 of this title.

-End-

-CITE-

42 USC Sec. 1437bbb-2 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 8 - LOW-INCOME HOUSING

SUBCHAPTER II09B - HOME RULE FLEXIBLE GRANT DEMONSTRATION

-HEAD-

Sec. 1437bbb-2. Program allocation and covered housing assistance

-STATUTE-

(a) Program allocation

In each fiscal year, the amount made available to each

participating jurisdiction under the demonstration program under

this subchapter shall be equal to the sum of the amounts of covered

housing assistance that would otherwise be made available under the

provisions of this chapter to the public housing agency for the

jurisdiction.

(b) Covered housing assistance

For purposes of this subchapter, the term "covered housing

assistance" means -

(1) operating assistance under section 1437g of this title (as

in effect before the effective date under section 503(a) of the

Quality Housing and Work Responsibility Act of 1998);

(2) modernization assistance under section 1437l of this title

(as in effect before the effective date under section 503(a) of

the Quality Housing and Work Responsibility Act of 1998);

(3) assistance for the certificate and voucher programs under

section 1437f of this title (as in effect before the effective

date under section 503(a) of the Quality Housing and Work

Responsibility Act of 1998);

(4) assistance from the Operating Fund under section 1437g(e)

of this title;

(5) assistance from the Capital Fund under section 1437g(d) of

this title; and

(6) tenant-based assistance under section 1437f of this title

(as amended by the Quality Housing and Work Responsibility Act of

1998).

-SOURCE-

(Sept. 1, 1937, ch. 896, title IV, Sec. 403, as added Pub. L.

105-276, title V, Sec. 561, Oct. 21, 1998, 112 Stat. 2618.)

-REFTEXT-

REFERENCES IN TEXT

The Quality Housing and Work Responsibility Act of 1998, referred

to in subsec. (b), is title V of Pub. L. 105-276, Oct. 21, 1998,

112 Stat. 2518. Section 503(a) of the Act is set out as an

Effective Date of 1998 Amendment note under section 1437 of this

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

Tables.

Section 1437l of this title, referred to in subsec. (b)(2), was

repealed by Pub. L. 105-276, title V, Sec. 522(a), Oct. 21, 1998,

112 Stat. 2564.

-End-

-CITE-

42 USC Sec. 1437bbb-3 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 8 - LOW-INCOME HOUSING

SUBCHAPTER II09B - HOME RULE FLEXIBLE GRANT DEMONSTRATION

-HEAD-

Sec. 1437bbb-3. Applicability of requirements under programs for

covered housing assistance

-STATUTE-

(a) In general

In each fiscal year of the demonstration program under this

subchapter, amounts made available to a participating jurisdiction

under the demonstration program shall be subject to the same terms

and conditions as such amounts would be subject to if made

available under the provisions of this chapter pursuant to which

covered housing assistance is otherwise made available under this

chapter to the public housing agency for the jurisdiction, except

that -

(1) the Secretary may waive any such term or condition

identified by the jurisdiction to the extent that the Secretary

determines such action to be appropriate to carry out the

purposes of the demonstration program under this subchapter; and

(2) the participating jurisdiction may combine the amounts made

available and use the amounts for any activity eligible under the

programs under sections 1437f and 1437g of this title.

(b) Number of families assisted

In carrying out the demonstration program under this subchapter,

each participating jurisdiction shall assist substantially the same

total number of eligible low-income families as would have

otherwise been served by the public housing agency for the

jurisdiction had the jurisdiction not participated in the

demonstration program under this subchapter.

(c) Protection of recipients

This subchapter may not be construed to authorize the termination

of assistance to any recipient receiving assistance under this

chapter before October 21, 1998, as a result of the implementation

of the demonstration program under this subchapter.

(d) Effect on ability to compete for other programs

This subchapter may not be construed to affect the ability of any

applying or participating jurisdiction (or a public housing agency

for any such jurisdiction) to compete or otherwise apply for or

receive assistance under any other housing assistance program

administered by the Secretary.

-SOURCE-

(Sept. 1, 1937, ch. 896, title IV, Sec. 404, as added Pub. L.

105-276, title V, Sec. 561, Oct. 21, 1998, 112 Stat. 2619.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1437bbb-4, 1437bbb-5 of

this title.

-End-

-CITE-

42 USC Sec. 1437bbb-4 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 8 - LOW-INCOME HOUSING

SUBCHAPTER II09B - HOME RULE FLEXIBLE GRANT DEMONSTRATION

-HEAD-

Sec. 1437bbb-4. Program requirements

-STATUTE-

(a) Applicability of certain provisions

Notwithstanding section 1437bbb-3(a)(1) of this title, the

Secretary may not waive, with respect to any participating

jurisdiction, any of the following provisions:

(1) The first sentence of paragraph (1) of section 1437a(a) of

this title (relating to eligibility of low-income families).

(2) Section 1437n of this title (relating to income eligibility

and targeting of assistance).

(3) Paragraph (2) of section 1437a(a) of this title (relating

to rental payments for public housing families).

(4) Paragraphs (2) and (3) of section 1437f(o) of this title

(to the extent such paragraphs limit the amount of rent paid by

families assisted with tenant-based assistance).

(5) Section 1437p of this title (relating to demolition or

disposition of public housing).

(b) Compliance with assistance plan

A participating jurisdiction shall provide assistance using

amounts received pursuant to this subchapter in the manner set

forth in the plan of the jurisdiction approved by the Secretary

under section 1437bbb-5(a)(2) of this title.

-SOURCE-

(Sept. 1, 1937, ch. 896, title IV, Sec. 405, as added Pub. L.

105-276, title V, Sec. 561, Oct. 21, 1998, 112 Stat. 2619.)

-End-

-CITE-

42 USC Sec. 1437bbb-5 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 8 - LOW-INCOME HOUSING

SUBCHAPTER II09B - HOME RULE FLEXIBLE GRANT DEMONSTRATION

-HEAD-

Sec. 1437bbb-5. Application

-STATUTE-

(a) In general

The Secretary shall provide for jurisdictions to submit

applications for approval to participate in the demonstration

program under this subchapter. An application -

(1) shall be submitted only after the jurisdiction provides for

citizen participation through a public hearing and, if

appropriate, other means;

(2) shall include a plan for the provision of housing

assistance with amounts received pursuant to this subchapter that

-

(A) is developed by the jurisdiction;

(B) takes into consideration comments from the public

hearing, any other public comments on the proposed program, and

comments from current and prospective residents who would be

affected; and

(C) identifies each term or condition for which the

jurisdiction is requesting waiver under section 1437bbb-3(a)(1)

of this title;

(3) shall describe how the plan for use of amounts will assist

in meeting the purposes of, and be used in accordance with,

sections 1437bbb and 1437bbb-1(a) of this title, respectively;

(4) shall propose standards for measuring performance in using

assistance provided pursuant to this subchapter based on the

performance standards under subsection (b)(4) of this section;

(5) shall propose the length of the period for participation of

the jurisdiction is (!1) in the demonstration program under this

subchapter;

(6) shall -

(A) in the case of the application of any jurisdiction within

whose boundaries are areas subject to any other unit of general

local government, include the signed consent of the appropriate

executive official of such unit to the application; and

(B) in the case of the application of a consortia of units of

general local government (as provided under section

1437bbb-8(1)(B) of this title), include the signed consent of

the appropriate executive officials of each unit included in

the consortia;

(7) shall include information sufficient, in the determination

of the Secretary -

(A) to demonstrate that the jurisdiction has or will have

management and administrative capacity sufficient to carry out

the plan under paragraph (2), including a demonstration that

the applicant has a history of effectively administering

amounts provided under other programs of the Department of

Housing and Urban Development, such as the community

development block grant program, the HOME investment

partnerships program, and the programs for assistance for the

homeless under the McKinney-Vento Homeless Assistance Act [42

U.S.C. 11301 et seq.];

(B) to demonstrate that carrying out the plan will not result

in excessive duplication of administrative efforts and costs,

particularly with respect to activities performed by public

housing agencies operating within the boundaries of the

jurisdiction;

(C) to describe the function and activities to be carried out

by such public housing agencies affected by the plan; and

(D) to demonstrate that the amounts received by the

jurisdiction will be maintained separate from other funds

available to the jurisdiction and will be used only to carry

out the plan;

(8) shall include information describing how the jurisdiction

will make decisions regarding asset management of housing for

low-income families under programs for covered housing assistance

or assisted with grant amounts under this subchapter;

(9) shall -

(A) clearly identify any State or local laws that will affect

implementation of the plan under paragraph (2) and any

contractual rights and property interests that may be affected

by the plan;

(B) describe how the plan will be carried out with respect to

such laws, rights, and interests; and

(C) contain a legal memorandum sufficient to describe how the

plan will comply with such laws and how the plan will be

carried out without violating or impairing such rights and

interests; and

(10) shall identify procedures for how the jurisdiction shall

return to providing covered assistance for the jurisdiction under

the provisions of subchapter I of this chapter, in the case of

determination under subsection (b)(4)(B) of this section.

A plan required under paragraph (2) to be included in the

application may be contained in a memorandum of agreement or other

document executed by a jurisdiction and public housing agency, if

such document is submitted together with the application.

(b) Review, approval, and performance standards

(1) Review

The Secretary shall review each application for participation

in the demonstration program under this subchapter and shall

determine and notify the jurisdiction submitting the application,

not later than 90 days after its submission, of whether the

application is approvable under this subchapter. If the Secretary

determines that the application of a jurisdiction is approvable

under this subchapter, the Secretary shall provide affected

public housing agencies an opportunity to review and to provide

written comments on the application for a period of not less than

30 days after notification under the preceding sentence. If the

Secretary determines that an application is not approvable under

this subchapter, the Secretary shall notify the jurisdiction

submitting the application of the reasons for such determination.

Upon making a determination of whether an application is

approvable or nonapprovable under this subchapter, the Secretary

shall make such determination publicly available in writing

together with a written statement of the reasons for such

determination.

(2) Approval

The Secretary may approve jurisdictions for participation in

the demonstration program under this subchapter, but only from

among applications that the Secretary has determined under

paragraph (!2) are approvable under this subchapter and only in

accordance with section 1437bbb-1(c) of this title. The Secretary

shall base the selection of jurisdictions to approve on the

potential success, as evidenced by the application, in -

(A) achieving the goals set forth in the performance

standards under paragraph (4)(A); and

(B) increasing housing choices for low-income families.

(3) Agreement

The Secretary shall offer to enter into an agreement with each

jurisdiction approved for participation in the program under this

subchapter providing for assistance pursuant to this subchapter

for a period in accordance with section 1437bbb-1(b) of this

title and incorporating a requirement that the jurisdiction

achieve a particular level of performance in each of the areas

for which performance standards are established under paragraph

(4)(A) of this subsection. If the Secretary and the jurisdiction

enter into an agreement, the Secretary shall provide any covered

housing assistance for the jurisdiction in the manner authorized

under this subchapter. The Secretary may not provide covered

housing assistance for a jurisdiction in the manner authorized

under this subchapter unless the Secretary and jurisdiction enter

into an agreement under this paragraph.

(4) Performance standards

(A) Establishment

The Secretary and each participating jurisdiction may

collectively establish standards for evaluating the performance

of the participating jurisdiction in meeting the purposes under

section 1437bbb of this title, which may include standards for

-

(i) moving dependent low-income families to economic

self-sufficiency;

(ii) reducing the per-family cost of providing housing

assistance;

(iii) expanding the stock of affordable housing and housing

choices for low-income families;

(iv) improving program management;

(v) increasing the number of homeownership opportunities

for low-income families;

(vi) reducing homelessness through providing permanent

housing resources;

(vii) reducing geographic concentration of assisted

families; and

(viii) any other performance goals that the Secretary and

the participating jurisdiction may establish.

(B) Failure to comply

If, at any time during the participation of a jurisdiction in

the program under this subchapter, the Secretary determines

that the jurisdiction is not sufficiently meeting, or making

progress toward meeting, the levels of performance incorporated

into the agreement of the jurisdiction pursuant to subparagraph

(A), the Secretary shall terminate the participation of the

jurisdiction in the program under this subchapter and require

the implementation of the procedures included in the

application of the jurisdiction pursuant to subsection (a)(10)

of this section.

(5) Troubled agencies

The Secretary may establish requirements for the approval of

applications under this section submitted by public housing

agencies designated under section 1437d(j)(2) of this title as

troubled, which may include additional or different criteria

determined by the Secretary to be more appropriate for such

agencies.

(c) Status of PHAs

This subchapter may not be construed to require any change in the

legal status of any public housing agency or in any legal

relationship between a jurisdiction and a public housing agency as

a condition of participation in the program under this subchapter.

(d) PHA plans

In carrying out this subchapter, the Secretary may provide for a

streamlined public housing agency plan and planning process under

section 1437c-1 of this title for participating jurisdictions.

-SOURCE-

(Sept. 1, 1937, ch. 896, title IV, Sec. 406, as added Pub. L.

105-276, title V, Sec. 561, Oct. 21, 1998, 112 Stat. 2620; amended

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

-REFTEXT-

REFERENCES IN TEXT

The McKinney-Vento Homeless Assistance Act, referred to in

subsec. (a)(7)(A), 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 - Subsec. (a)(7)(A). 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 sections 1437bbb-1, 1437bbb-4,

1437bbb-7, 1437bbb-8 of this title.

-FOOTNOTE-

(!1) So in original.

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

-End-

-CITE-

42 USC Sec. 1437bbb-6 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 8 - LOW-INCOME HOUSING

SUBCHAPTER II09B - HOME RULE FLEXIBLE GRANT DEMONSTRATION

-HEAD-

Sec. 1437bbb-6. Training

-STATUTE-

The Secretary, in consultation with representatives of public and

assisted housing interests, may provide training and technical

assistance relating to providing assistance under this subchapter

and may conduct detailed evaluations of up to 30 jurisdictions for

the purpose of identifying replicable program models that are

successful at carrying out the purposes of this subchapter.

-SOURCE-

(Sept. 1, 1937, ch. 896, title IV, Sec. 407, as added Pub. L.

105-276, title V, Sec. 561, Oct. 21, 1998, 112 Stat. 2623.)

-End-

-CITE-

42 USC Sec. 1437bbb-7 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 8 - LOW-INCOME HOUSING

SUBCHAPTER II09B - HOME RULE FLEXIBLE GRANT DEMONSTRATION

-HEAD-

Sec. 1437bbb-7. Accountability

-STATUTE-

(a) Maintenance of records

Each participating jurisdiction shall maintain such records as

the Secretary may require to -

(1) document the amounts received by the jurisdiction under

this chapter and the disposition of such amounts under the

demonstration program under this subchapter;

(2) ensure compliance by the jurisdiction with this subchapter;

and

(3) evaluate the performance of the jurisdiction under the

demonstration program under this subchapter.

(b) Reports

Each participating jurisdiction shall annually submit to the

Secretary a report in a form and at a time specified by the

Secretary, which shall include -

(1) documentation of the use of amounts made available to the

jurisdiction under this subchapter;

(2) any information as the Secretary may request to assist the

Secretary in evaluating the demonstration program under this

subchapter; and

(3) a description and analysis of the effect of assisted

activities in addressing the objectives of the demonstration

program under this subchapter.

(c) Access to documents by Secretary and Comptroller General

The Secretary and the Comptroller General of the United States,

or any duly authorized representative of the Secretary or the

Comptroller General, shall have access for the purpose of audit and

examination to any books, documents, papers, and records maintained

by a participating jurisdiction that relate to the demonstration

program under this subchapter.

(d) Performance review and evaluation

(1) Performance review

Based on the performance standards established under section

1437bbb-5(b)(4) of this title, the Secretary shall monitor the

performance of participating jurisdictions in providing

assistance under this subchapter.

(2) Status report

Not later than 60 days after the conclusion of the second year

of the demonstration program under this subchapter, the Secretary

shall submit to Congress an interim report on the status of the

demonstration program and the progress each participating

jurisdiction in achieving the purposes of the demonstration

program under section 1437bbb of this title.

-SOURCE-

(Sept. 1, 1937, ch. 896, title IV, Sec. 408, as added Pub. L.

105-276, title V, Sec. 561, Oct. 21, 1998, 112 Stat. 2623.)

-End-

-CITE-

42 USC Sec. 1437bbb-8 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 8 - LOW-INCOME HOUSING

SUBCHAPTER II09B - HOME RULE FLEXIBLE GRANT DEMONSTRATION

-HEAD-

Sec. 1437bbb-8. Definitions

-STATUTE-

For purposes of this subchapter, the following definitions shall

apply:

(1) Jurisdiction

The term "jurisdiction" means -

(A) a unit of general local government (as such term is

defined in section 12704 of this title) that has boundaries,

for purposes of carrying out this subchapter, that -

(i) wholly contain the area within which a public housing

agency is authorized to operate; and

(ii) do not contain any areas contained within the

boundaries of any other participating jurisdiction; and

(B) a consortia of such units of general local government,

organized for purposes of this subchapter.

(2) Participating jurisdiction

The term "participating jurisdiction" means, with respect to a

period for which such an agreement is made, a jurisdiction that

has entered into an agreement under section 1437bbb-5(b)(3) of

this title to receive assistance pursuant to this subchapter for

such fiscal year.

-SOURCE-

(Sept. 1, 1937, ch. 896, title IV, Sec. 409, as added Pub. L.

105-276, title V, Sec. 561, Oct. 21, 1998, 112 Stat. 2624.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1437bbb-5 of this title.

-End-

-CITE-

42 USC Sec. 1437bbb-9 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 8 - LOW-INCOME HOUSING

SUBCHAPTER II09B - HOME RULE FLEXIBLE GRANT DEMONSTRATION

-HEAD-

Sec. 1437bbb-9. Termination and evaluation

-STATUTE-

(a) Termination

The demonstration program under this subchapter shall terminate

not less than 2 and not more than 5 years after the date on which

the demonstration program is commenced.

(b) Evaluation

Not later than 6 months after the termination of the

demonstration program under this subchapter, the Secretary shall

submit to the Congress a final report, which shall include -

(1) an evaluation (!1) the effectiveness of the activities

carried out under the demonstration program; and

(2) any findings and recommendations of the Secretary for any

appropriate legislative action.

-SOURCE-

(Sept. 1, 1937, ch. 896, title IV, Sec. 410, as added Pub. L.

105-276, title V, Sec. 561, Oct. 21, 1998, 112 Stat. 2624.)

-FOOTNOTE-

(!1) So in original. Probably should be followed by "of".

-End-

-CITE-

42 USC SUBCHAPTER III - MISCELLANEOUS PROVISIONS 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 8 - LOW-INCOME HOUSING

SUBCHAPTER III - MISCELLANEOUS PROVISIONS

-HEAD-

SUBCHAPTER III - MISCELLANEOUS PROVISIONS

-End-

-CITE-

42 USC Sec. 1438 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 8 - LOW-INCOME HOUSING

SUBCHAPTER III - MISCELLANEOUS PROVISIONS

-HEAD-

Sec. 1438. Repealed. Pub. L. 105-276, title V, Sec. 582(a)(15),

Oct. 21, 1998, 112 Stat. 2644

-MISC1-

Section, Pub. L. 93-383, title II, Sec. 209, Aug. 22, 1974, 88

Stat. 669; Pub. L. 98-479, title II, Sec. 201(g), Oct. 17, 1984, 98

Stat. 2228; Pub. L. 102-550, title VI, Sec. 625(b), Oct. 28, 1992,

106 Stat. 3820, related to special low-income housing projects for

elderly or disabled families.

EFFECTIVE DATE OF REPEAL

Repeal effective and applicable beginning upon Oct. 1, 1999,

except as otherwise provided, with provision that Secretary may

implement repeal before such date, and with savings provision, see

section 503 of Pub. L. 105-276, set out as an Effective Date of

1998 Amendment note under section 1437 of this title.

-End-

-CITE-

42 USC Sec. 1439 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 8 - LOW-INCOME HOUSING

SUBCHAPTER III - MISCELLANEOUS PROVISIONS

-HEAD-

Sec. 1439. Local housing assistance plan

-STATUTE-

(a) Applicability of approved plan to housing assistance

application; procedure upon receipt of application by Secretary

of Housing and Urban Development; definitions

(1) The Secretary of Housing and Urban Development, upon

receiving an application for housing assistance under the United

States Housing Act of 1937 [42 U.S.C. 1437 et seq.],(!1) section

101 of the Housing and Urban Development Act of 1965 [12 U.S.C.

1701s], or,(!2) if the unit of general local government in which

the proposed assistance is to be provided has an approved housing

assistance plan, shall -

(A) not later than ten days after receipt of the application,

notify the chief executive officer of such unit of general local

government that such application is under consideration; and

(B) afford such unit of general local government the

opportunity, during the thirty-day period beginning on the date

of such notification, to object to the approval of the

application on the grounds that the application is inconsistent

with its housing assistance plan.

Upon receiving an application for such housing assistance, the

Secretary shall assure that funds made available under this section

shall be utilized to the maximum extent practicable to meet the

needs and goals identified in the unit of local government's

housing assistance plan.

(2) If the unit of general local government objects to the

application on the grounds that it is inconsistent with its housing

assistance plan, the Secretary may not approve the application

unless he determines that the application is consistent with such

housing assistance plan. If the Secretary determines, that such

application is consistent with the housing assistance plan, he

shall notify the chief executive officer of the unit of general

local government of his determination and the reasons therefor in

writing. If the Secretary concurs with the objection of the unit of

local government, he shall notify the applicant stating the reasons

therefor in writing.

(3) If the Secretary does not receive an objection by the close

of the period referred to in paragraph (1)(B), he may approve the

application unless he finds it inconsistent with the housing

assistance plan. If the Secretary determines that an application is

inconsistent with a housing assistance plan, he shall notify the

applicant stating the reasons therefor in writing.

(4) The Secretary shall make the determinations referred to in

paragraphs (2) and (3) within thirty days after he receives an

objection pursuant to paragraph (1)(B) or within thirty days after

the close of the period referred to in paragraph (1)(B), whichever

is earlier.

(5) As used in this section, the term "housing assistance plan"

means a housing assistance plan submitted and approved under

section 5304 of this title or, in the case of a unit of general

local government not participating under title I of this Act [42

U.S.C. 5301 et seq.], a housing plan approved by the Secretary as

meeting the requirements of this section. In developing a housing

assistance plan under this paragraph a unit of general local

government shall consult with local public agencies involved in

providing for the welfare of children to determine the housing

needs of (A) families identified by the agencies as having a lack

of adequate housing that is a primary factor in the imminent

placement of a child in foster care or in preventing the discharge

of a child from foster care and reunification with his or her

family; and (B) children who, upon discharge of the child from

foster care, cannot return to their family or extended family and

for which adoption is not available. The unit of general local

government shall include in the housing assistance plan needs and

goals with respect to such families and children.

(b) Housing assistance applications subject to procedures

The provisions of subsection (a) of this section shall not apply

to -

(1) applications for assistance involving 12 or fewer units in

a single project or development;

(2) applications for assistance with respect to housing in new

community developments approved under title IV of the Housing and

Urban Development Act of 1968 [42 U.S.C. 3901 et seq.] or title

VII of the Housing and Urban Development Act of 1970 [42 U.S.C.

4501 et seq.] which the Secretary determines are necessary to

meet the housing requirements under such title; or

(3) applications for assistance with respect to housing

financed by loans or loan guarantees from a State or agency

thereof, except that the provisions of subsection (a) of this

section shall apply where the unit of general local government in

which the assistance is to be provided objects in its housing

assistance plan to the exemption provided by this paragraph.

(c) Repealed. Pub. L. 105-276, title V, Sec. 551(1), Oct. 21, 1998,

112 Stat. 2610

(d) Allocation and reservation of housing assistance funds;

purposes; prohibited reallocation of unutilized funds; enumerated

uses for retained funds; competition for reservation and

obligation of funds

(1)(A)(i) Except as provided by subparagraph (B), the Secretary

shall allocate assistance referred to in subsection (a)(1) of this

section the first time it is available for reservation on the basis

of a formula that is contained in a regulation prescribed by the

Secretary, and that is based on the relative needs of different

States, areas, and communities, as reflected in data as to

population, poverty, housing overcrowding, housing vacancies,

amount of substandard housing, and other objectively measurable

conditions specified in the regulation. The Secretary may allocate

assistance under the preceding sentence in such a manner that each

State shall receive not less than one-half of one percent of the

amount of funds available for each program referred to in

subsection (a)(1) of this section in each fiscal year. In

allocating assistance under this paragraph for each program of

housing assistance under subsection (a)(1) of this section, the

Secretary shall apply the formula, to the extent practicable, in a

manner so that the assistance under the program is allocated

according to the particular relative needs under the preceding

sentence that are characteristic of and related to the particular

type of assistance provided under the program. Assistance under

section 202 of the Housing Act of 1959 [12 U.S.C. 1701q] shall be

allocated in a manner that ensures that awards of the assistance

under such section are made for projects of sufficient size to

accommodate facilities for supportive services appropriate to the

needs of frail elderly residents. The preceding sentence shall not

apply to projects acquired from the Resolution Trust Corporation

under section 1441a(c) of title 12. Amounts for tenant-based

assistance under section 8(o) of the United States Housing Act of

1937 [42 U.S.C. 1437f(o)] may not be provided to any public housing

agency that has been disqualified from providing such assistance.

(ii) Assistance under section 8(o) of the United States Housing

Act of 1937 [42 U.S.C. 1437f(o)] shall be allocated in a manner

that enables participating jurisdictions to carry out, to the

maximum extent practicable, comprehensive housing affordability

strategies approved in accordance with section 105 of the

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

12705]. Such jurisdictions shall submit recommendations for

allocating assistance under such section 8(o) to the Secretary in

accordance with procedures that the Secretary determines to be

appropriate to permit allocations of such assistance to be made on

the basis of timely and complete information. This clause may not

be construed to prevent, alter, or otherwise affect the application

of the formula established pursuant to clause (i) for purposes of

allocating such assistance. For purposes of this clause, the term

"participating jurisdiction" means a State or unit of general local

government designated by the Secretary to be a participating

jurisdiction under title II of the Cranston-Gonzalez National

Affordable Housing Act [42 U.S.C. 12721 et seq.].

(B) The formula allocation requirements of subparagraph (A) shall

not apply to -

(i) assistance that is approved in appropriation Acts for use

under sections (!3) 9 [42 U.S.C. 1437g], or the rental

rehabilitation grant program under section 17,(!4) of the United

States Housing Act of 1937, except that the Secretary shall

comply with section 102 of the Department of Housing and Urban

Development Reform Act of 1989 [42 U.S.C. 3545] with respect to

such assistance; or

(ii) other assistance referred to in subsection (a) of this

section that is approved in appropriation Acts for uses that the

Secretary determines are incapable of geographic allocation,

including amendments of existing contracts, renewal of assistance

contracts, assistance to families that would otherwise lose

assistance due to the decision of the project owner to prepay the

project mortgage or not to renew the assistance contract,

assistance to prevent displacement or to provide replacement

housing in connection with the demolition or disposition of

public housing, and assistance in support of the property

disposition and loan management functions of the Secretary.

(C) Any allocation of assistance under subparagraph (A) shall, as

determined by the Secretary, be made to the smallest practicable

area, consistent with the delivery of assistance through a

meaningful competitive process designed to serve areas with greater

needs.

(D) Any amounts allocated to a State or areas or communities

within a State that are not likely to be used within a fiscal year

shall not be reallocated for use in another State, unless the

Secretary determines that other areas or communities (that are

eligible for assistance under the program) within the same State

cannot use the amounts within that same fiscal year.

(2) The Secretary may reserve such housing assistance funds as he

deems appropriate for use by a State or agency thereof.

(3)(A) Notwithstanding any other provision of law, with respect

to fiscal years beginning after September 30, 1990, the Secretary

may retain not more than 5 percent of the financial assistance that

becomes available under programs described in subsection (a)(1) of

this section during any fiscal year. Any such financial assistance

that is retained shall be available for subsequent allocation to

specific areas and communities, and may only be used for -

(i) unforeseen housing needs resulting from natural and other

disasters;

(ii) housing needs resulting from emergencies, as certified by

the Secretary, other than such disasters;

(iii) housing needs resulting from the settlement of

litigation; and

(iv) housing in support of desegregation efforts.

(B) Any amounts retained in any fiscal year under subparagraph

(A) that are unexpended at the end of such fiscal year shall remain

available for the following fiscal year under the program under

subsection (a)(1) of this section from which the amount was

retained. Such amounts shall be allocated on the basis of the

formula under subsection (d)(1) of this section.

(4)(A) The Secretary shall not reserve or obligate assistance

subject to allocation under paragraph (1)(A) to specific

recipients, unless the assistance is first allocated on the basis

of the formula contained in that paragraph and then is reserved and

obligated pursuant to a competition.

(B) Any competition referred to in subparagraph (A) shall be

conducted pursuant to specific criteria for the selection of

recipients of assistance. The criteria shall be contained in -

(i) a regulation promulgated by the Secretary after notice and

public comment; or

(ii) to the extent authorized by law, a notice published in the

Federal Register.

(C) Subject to the times at which appropriations for assistance

subject to paragraph (1)(A) may become available for reservation in

any fiscal year, the Secretary shall take such steps as the

Secretary deems appropriate to ensure that, to the maximum extent

practicable, the process referred to in subparagraph (A) is carried

out with similar frequency and at similar times for each fiscal

year.

(D) This paragraph shall not apply to assistance referred to in

paragraph (4).(!4)

(e) Assistance payments for properties in Jefferson County, Texas

From budget authority made available in appropriation Acts for

fiscal year 1988, the Secretary shall enter into an annual

contributions contract for a term of 180 months to obligate

sufficient funds to provide assistance payments pursuant to section

8(b)(1) of the United States Housing Act of 1937 [42 U.S.C.

1437f(b)(1)] on behalf of 500 lower income families from budget

authority made available for fiscal year 1988, so long as such

families occupy properties in Jefferson County, Texas. If a lower

income family receiving assistance payments pursuant to this

subsection ceases to qualify for assistance payments pursuant to

the provisions of section 8 of such Act [42 U.S.C. 1437f] or of

this subsection during the 180-month term of the annual

contributions contract, assistance payments shall be made on behalf

of another lower income family who occupies a unit identified in

the previous sentence.

-SOURCE-

(Pub. L. 93-383, title II, Sec. 213, Aug. 22, 1974, 88 Stat. 674;

Pub. L. 95-128, title II, Sec. 207, Oct. 12, 1977, 91 Stat. 1130;

Pub. L. 96-153, title II, Sec. 204, Dec. 21, 1979, 93 Stat. 1108;

Pub. L. 96-399, title II, Sec. 202(d), Oct. 8, 1980, 94 Stat. 1629;

Pub. L. 97-35, title III, Sec. 321(e), Aug. 13, 1981, 95 Stat. 399;

Pub. L. 98-181, title II, Sec. 201(a)(1), (2), Nov. 30, 1983, 97

Stat. 1175; Pub. L. 98-479, title I, Sec. 102(e), Oct. 17, 1984, 98

Stat. 2222; Pub. L. 100-242, title V, Sec. 522(a), Feb. 5, 1988,

101 Stat. 1938; Pub. L. 101-235, title I, Secs. 101(a)-(c), (e),

104(a), Dec. 15, 1989, 103 Stat. 1988-1990, 1998; Pub. L. 101-494,

Sec. 5, Oct. 31, 1990, 104 Stat. 1186; Pub. L. 101-625, title V,

Secs. 556, 576, title VIII, Secs. 801(b), 804(e), Nov. 28, 1990,

104 Stat. 4233, 4238, 4303, 4323; Pub. L. 102-389, title II, Oct.

6, 1992, 106 Stat. 1591; Pub. L. 102-550, title I, Sec. 154, Oct.

28, 1992, 106 Stat. 3718; Pub. L. 104-330, title V, Sec. 501(d)(3),

Oct. 26, 1996, 110 Stat. 4043; Pub. L. 105-276, title V, Secs.

522(b)(2), 551, Oct. 21, 1998, 112 Stat. 2564, 2610.)

-REFTEXT-

REFERENCES IN TEXT

The United States Housing Act of 1937, referred to in subsec.

(a)(1), is act Sept. 1, 1937, ch. 896, as revised generally by Pub.

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

amended, which is classified generally to this chapter (Sec. 1437

et seq.). Section 17 of the United States Housing Act of 1937,

referred to in subsec. (d)(1)(B)(i), which was classified to

section 1437o of this title, was repealed by Pub. L. 101-625, title

II, Sec. 289(b), Nov. 28, 1990, 104 Stat. 4128. For complete

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

section 1437 of this title and Tables.

Section 101 of the Housing and Urban Development Act of 1965,

referred to in subsec. (a)(1), is section 101 of Pub. L. 89-117,

Aug. 10, 1965, 79 Stat. 451, as amended, which enacted section

1701s of Title 12, Banks and Banking, and amended sections 1451 and

1465 of this title.

This Act, referred to in subsec. (a)(5), is Pub. L. 93-383, Aug.

22, 1974, 88 Stat. 633, as amended, known as the Housing and

Community Development Act of 1974. Title I of the Housing and

Community Development Act of 1974 is classified principally to

chapter 69 (Sec. 5301 et seq.) of this title. For complete

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

out under section 5301 of this title and Tables.

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

subsec. (b)(2), is Pub. L. 90-448, Aug. 1, 1968, 82 Stat. 476, as

amended. Title IV of the Housing and Urban Development Act of 1968

which was classified principally to chapter 48 (Sec. 3901 et seq.)

of this title, was omitted from the Code pursuant to section 4528

of this title, which terminated the authority to guarantee bonds,

debentures, notes, or other obligations under such title IV, after

Dec. 31, 1970. For complete classification of this Act to the Code,

see Short Title note set out under section 1701 of Title 12, Banks

and Banking, and Tables.

The Housing and Urban Development Act of 1970, referred to in

subsec. (b)(2), is Pub. L. 91-609, Dec. 31, 1970, 84 Stat. 1770, as

amended. Title VII of the Housing and Urban Development Act of

1970, known as the Urban Growth and New Community Development Act

of 1970, is classified principally to chapter 59 (Sec. 4501 et

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

Code, see Short Title of 1970 Amendment note set out under section

1701 of Title 12.

The Cranston-Gonzalez National Affordable Housing Act, referred

to in subsec. (d)(1)(A)(ii), is Pub. L. 101-625, Nov. 28, 1990, 104

Stat. 4079. Title II of the Act, known as the "HOME Investments

Partnership Act", is classified principally to subchapter II (Sec.

12721 et seq.) of chapter 130 of this title. For complete

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

out under section 12701 of this title and Tables.

Paragraph (4), referred to in subsec. (d)(4)(D), was redesignated

paragraph (3) of subsec. (d) by Pub. L. 105-276, title V, Sec.

551(2)(C), Oct. 21, 1998, 112 Stat. 2610.

-COD-

CODIFICATION

Section was enacted as part of the Housing and Community

Development Act of 1974, and not as part of the United States

Housing Act of 1937 which comprises this chapter.

-MISC1-

AMENDMENTS

1998 - Subsec. (c). Pub. L. 105-276, Sec. 551(1), struck out

subsec. (c) which read as follows: "For areas in which an approved

local housing assistance plan is not applicable the Secretary shall

not approve an application for housing assistance unless he

determines that there is a need for such assistance, taking into

consideration any applicable State housing plans, and that there is

or will be available in the area public facilities and services

adequate to serve the housing proposed to be assisted. The

Secretary shall afford the unit of general local government in

which the assistance is to be provided an opportunity, during a

30-day period following receipt of an application by him, to

provide comments or information relevant to the determination

required to be made by the Secretary under this subsection."

Subsec. (d)(1)(A)(i). Pub. L. 105-276, Sec. 551(2)(A)(i),

inserted at end "Amounts for tenant-based assistance under section

8(o) of the United States Housing Act of 1937 may not be provided

to any public housing agency that has been disqualified from

providing such assistance."

Subsec. (d)(1)(A)(ii). Pub. L. 105-276, Sec. 551(2)(A)(ii),

substituted "8(o)" for "8(b)(1)" in two places.

Subsec. (d)(1)(B)(i). Pub. L. 105-276, Sec. 522(b)(2), which

directed the amendment of subsec. (d)(1)(B)(ii), by striking out

"or 14", was executed by striking out "or 14" after "9" in subsec.

(d)(1)(B)(i) to reflect the probable intent of Congress.

Subsec. (d)(2) to (5). Pub. L. 105-276, Sec. 551(2)(B), (C),

redesignated pars. (3) to (5) as (2) to (4), respectively, and

struck out former par. (2) which read as follows: "Not later than

sixty days after approval in an appropriation Act, the Secretary

shall allocate from the amounts available for use in

nonmetropolitan areas an amount of authority for assistance under

section 8(d) of the United States Housing Act of 1937 determined in

consultation with the Secretary of Agriculture for use in

connection with section 1490m of this title during the fiscal year

for which such authority is approved. The amount of assistance

allocated to nonmetropolitan areas pursuant to this section in any

fiscal year shall not be less than 20 nor more than 25 per centum

of the total amount of the assistance that is subject to allocation

under paragraph (1)(A)."

1996 - Subsec. (d)(1)(B)(ii). Pub. L. 104-330 substituted "public

housing" for "public and Indian housing".

1992 - Subsec. (e). Pub. L. 102-389 and Pub. L. 102-550 amended

subsec. (e) identically, substituting "Jefferson County, Texas" for

"the Park Central New Community Project or in adjacent areas that

are recognized by the unit of general local government in which

such Project is located as being included within the Park Central

New Town In Town Project".

1990 - Subsec. (a)(1). Pub. L. 101-625, Sec. 801(b), struck out

"section 202 of the Housing Act of 1959" before ", if the unit".

Subsec. (a)(5). Pub. L. 101-625, Sec. 576, inserted at end "In

developing a housing assistance plan under this paragraph a unit of

general local government shall consult with local public agencies

involved in providing for the welfare of children to determine the

housing needs of (A) families identified by the agencies as having

a lack of adequate housing that is a primary factor in the imminent

placement of a child in foster care or in preventing the discharge

of a child from foster care and reunification with his or her

family; and (B) children who, upon discharge of the child from

foster care, cannot return to their family or extended family and

for which adoption is not available. The unit of general local

government shall include in the housing assistance plan needs and

goals with respect to such families and children."

Subsec. (d)(1)(A). Pub. L. 101-625, Sec. 556, designated existing

provisions as cl. (i) and added cl. (ii).

Pub. L. 101-494 inserted after first sentence "The Secretary may

allocate assistance under the preceding sentence in such a manner

that each State shall receive not less than one-half of one percent

of the amount of funds available for each program referred to in

subsection (a)(1) of this section in each fiscal year."

Subsec. (d)(1)(A)(i). Pub. L. 101-625, Sec. 804(e), which

directed amendment of subpar. (A) by inserting after the period at

end "The preceding sentence shall not apply to projects acquired

from the Resolution Trust Corporation under section 1441a(c) of

title 12.", was executed by making the insertion after the period

at end of cl. (i), to reflect the probable intent of Congress and

the intervening amendment by Pub. L. 101-625, Sec. 556. See above.

1989 - Subsec. (a)(1). Pub. L. 101-235, Sec. 101(e), struck out

"section 235 or 236 of the National Housing Act," before "section

101 of the Housing and Urban Development Act of 1965".

Subsec. (d)(1). Pub. L. 101-235, Sec. 101(a), amended par. (1)

generally. Prior to amendment, par. (1) read as follows: "The

Secretary shall allocate assistance referred to in subsection (a)

of this section (other than assistance approved in appropriation

Acts for use under sections 9, 14, and 17 of the United States

Housing Act of 1937) the first time it is available for reservation

on the basis of a formula which is contained in a regulation

prescribed by the Secretary, and which is based on the relative

needs of different States, areas, and communities as reflected in

data as to population, poverty, housing overcrowding, housing

vacancies, amount of substandard housing, and other objectively

measurable conditions specified in such regulation. Any amounts

allocated to a State or areas or communities within a State which

are not likely to be utilized within a fiscal year shall not be

reallocated for use in another State unless the Secretary

determines that other areas or communities within the same State

cannot utilize the amounts within that same fiscal year."

Subsec. (d)(2). Pub. L. 101-235, Sec. 101(b), substituted "of the

assistance that is subject to allocation under paragraph (1)(A)"

for "of such assistance".

Subsec. (d)(4). Pub. L. 101-235, Sec. 104(a), amended par. (4)

generally. Prior to amendment, par. (4) read as follows:

"Notwithstanding any other provision of law, with respect to fiscal

years beginning after September 30, 1981, the Secretary of Housing

and Urban Development may not retain more than 15 per centum of the

financial assistance which becomes available under programs

described in subsection (a)(1) of this section during any fiscal

year. Any such financial assistance which is retained shall be

available for subsequent allocation to specific areas and

communities, and may only be used for -

"(A) unforeseeable housing needs, especially those brought on

by natural disasters or special relocation requirements;

"(B) support for the needs of the handicapped or for minority

enterprise;

"(C) providing for assisted housing as a result of the

settlement of litigation;

"(D) small research and demonstration projects;

"(E) lower-income housing needs described in housing assistance

plans, including activities carried out under areawide housing

opportunity plans; and

"(F) innovative housing programs or alternative methods for

meeting lower-income housing needs approved by the Secretary,

including assistance for infrastructure in connection with the

Indian Housing Program."

Subsec. (d)(5). Pub. L. 101-235, Sec. 101(c), added par. (5).

1988 - Subsec. (e). Pub. L. 100-242 added subsec. (e).

1984 - Subsec. (d)(2). Pub. L. 98-479 substituted "section 1490m

of this title" for "section 1490l of this title".

1983 - Subsec. (a)(1). Pub. L. 98-181, Sec. 201(a)(1), inserted

provision following subpar. (B) requiring that funds be utilized to

meet the needs and goals identified in the unit of local

government's housing assistance plan.

Subsec. (d)(1). Pub. L. 98-181, Sec. 201(a)(2), amended par. (1)

generally, inserting provision respecting assistance approved in

appropriation Acts for sections 9 and 17 of the United States

Housing Act of 1937 uses, requiring allocation of assistance to be

based on a formula contained in a regulation, making the relative

needs provision applicable to different States, striking out

requirement that Secretary assure, in carrying out national housing

and community development objectives, that funds available for

housing assistance programs be allocated or reserved in accordance

with goals described in approved housing assistance plans, and

striking out provision respecting allocation of funds for

nonmetropolitan areas, which was reenacted as last sentence of par.

(2).

Subsec. (d)(2). Pub. L. 98-181, Sec. 201(a)(2), amended par. (2)

generally, inserting provision respecting allocation of

nonmetropolitan area funds for use in connection with section 1490l

of this title; reenacting as second sentence provision respecting

amount of funds allocated for nonmetropolitan areas, which formerly

constituted last sentence of par. (1); and striking out former

provision respecting reservation of housing assistance funds for

new community developments approved under title IV of the Housing

and Urban Development Act of 1968 and title VII of the Housing and

Urban Development Act of 1970 for persons of low- and

moderate-income.

1981 - Subsec. (d)(4). Pub. L. 97-35 added par. (4).

1980 - Subsec. (d)(1). Pub. L. 96-399 substituted "carrying out

section 14 of such Act" for "modernization of low-income housing

projects".

1979 - Subsec. (d)(1). Pub. L. 96-153 inserted provisions

limiting allocation of assistance other than that approved in

appropriation acts for use on and after Oct. 1, 1979 for

modernization of low-income housing projects and inserted provision

that any amounts allocated to a State or to areas or communities

within a State which are not likely to be utilized within a fiscal

year shall not be reallocated for use in another State unless the

Secretary determines that other areas or communities within the

same State cannot utilize the amounts in accordance with the

appropriate housing assistance plans within that fiscal year.

1977 - Subsec. (d)(1). Pub. L. 95-128 inserted provision

requiring the Secretary to assure that funds available for subsec.

(a) housing assistance programs shall be allocated or reserved in

accordance with goals described in local, State, or other housing

assistance plans approved by the Secretary pursuant to section 5304

of this title and shall be utilized to meet needs reflected in data

referred to in the preceding sentence.

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 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.

EFFECTIVE DATE OF 1990 AMENDMENT

Amendment by section 801(b) of Pub. L. 101-625 effective Oct. 1,

1991, with respect to projects approved on or after such date, and

subject to issuance of regulations, see section 801(c) of Pub. L.

101-625, set out as a note under section 1701q of Title 12, Banks

and Banking.

Amendment by section 801(b) of Pub. L. 101-625 deemed enacted

Nov. 5, 1990, see title II of Pub. L. 101-507, set out as a note

under section 1701q of Title 12.

EFFECTIVE DATE OF 1989 AMENDMENT

Section 104(b) of Pub. L. 101-235 provided that: "Any assistance

made available under section 213(d)(4) of the Housing and Community

Development Act of 1974 [42 U.S.C. 1439(d)(4)] before October 1,

1990, or pursuant to a commitment for such assistance entered into

before such date, shall be governed by the provisions of section

213(d)(4) as such section existed before the date of the enactment

of this Act [Dec. 15, 1989]."

EFFECTIVE DATE OF 1981 AMENDMENT

Amendment by Pub. L. 97-35 effective Oct. 1, 1981, see section

371 of Pub. L. 97-35, set out as an Effective Date note under

section 3701 of Title 12, Banks and Banking.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1437u, 3545 of this

title; title 12 section 1715z.

-FOOTNOTE-

(!1) So in original. The comma probably should be "or".

(!2) So in original. The word "or" and the comma probably should

not appear.

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

(!4) See References in Text note below.

-End-

-CITE-

42 USC Sec. 1440 01/06/03

-EXPCITE-

TITLE 42 - THE PUBLIC HEALTH AND WELFARE

CHAPTER 8 - LOW-INCOME HOUSING

SUBCHAPTER III - MISCELLANEOUS PROVISIONS

-HEAD-

Sec. 1440. State housing finance and development agencies

-STATUTE-

(a) Statement of purpose; participation by private and nonprofit

developers in activities assisted

It is the purpose of this section to encourage the formation and

effective operation of State housing finance agencies and State

development agencies which have authority to finance, to assist in

carrying out, or to carry out activities designed to (1) provide

housing and related facilities through land acquisition,

construction, or rehabilitation, for persons and families of low,

moderate, and middle income, (2) promote the sound growth and

development of neighborhoods through the revitalization of slum and

blighted areas, (3) increase and improve employment opportunities

for the unemployed and underemployed through the development and

redevelopment of industrial, manufacturing, and commercial

facilities, or (4) implement the development aspects of State land

use and preservation policies, including the advance acquisition of

land where it is consistent with such policies. The Secretary of

Housing and Urban Development shall encourage maximum participation

by private and nonprofit developers in activities assisted under

this section.

(b) Determination of eligibility for assistance; definitions

(1) A State housing finance or State development agency is

eligible for assistance under this section only if the Secretary

determines that it is fully empowered and has adequate authority to

at least carry out or assist in carrying out the purposes specified

in clause (1) of subsection (a) of this section.

(2) For the purpose of this section -

(A) the term "State housing finance or State development

agency" means any public body or agency, publicly sponsored

corporation, or instrumentality of one or more States which is

designated by the Governor (or Governors in the case of an

interstate development agency) for purposes of this section;

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

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

territory or possession of the United States; and

(C) the term "Secretary" means the Secretary of Housing and

Urban Development.

(c) Guarantee of obligations issued by agencies; grants to agencies

for interest payments on obligations; maximum amount of grants;

prerequisites for guarantee; full faith and credit pledged for

payment of guarantee; effect and validity of guarantee; fees and

charges for guarantee; authorization of appropriations for

grants; maximum amount of obligations guaranteed

(1) The Secretary is authorized to guarantee, and enter into

commitments to guarantee, the bonds, debentures, notes, and other

obligations issued by State housing finance or State development

agencies to finance development activities as determined by him to

be in furtherance of the purpose of clause (1) or (2) of subsection

(a) of this section, except that obligations issued to finance

activities solely in furtherance of the purpose of clause (1) of

subsection (a) of this section may be guaranteed only if the

activities are in connection with the revitalization of slum or

blighted areas under title I of this Act [42 U.S.C. 5301 et seq.]

or under any other program determined to be acceptable by the

Secretary for this purpose.

(2) The Secretary is authorized to make, and to contract to make,

grants to or on behalf of a State housing finance or State

development agency to cover not to exceed 33 1/3 per centum of the

interest payable on bonds, debentures, notes, and other obligations

issued by such agency to finance development activities in

furtherance of the purposes of this section.

(3) No obligation shall be guaranteed or otherwise assisted under

this section unless the interest income thereon is subject to

Federal taxation as provided in subsection (h)(2) of this section,

except that use of guarantees provided for in this subsection shall

not be made a condition to nor preclude receipt of any other

Federal assistance.

(4) The full faith and credit of the United States is pledged to

the payment of all guarantees made under this section with respect

to principal, interest, and any redemption premiums. Any such

guarantee made by the Secretary shall be conclusive evidence of the

eligibility of the obligation involved for such guarantee, and the

validity of any guarantee so made shall be incontestable in the

hands of a holder of the guaranteed obligation.

(5) The Secretary is authorized to establish and collect such

fees and charges for and in connection with guarantees made under

this section as he considers reasonable.

(6) There are authorized to be appropriated such sums as may be

necessary to make payments as provided for in contracts entered

into by the Secretary under paragraph (2) of this subsection, and

payments pursuant to such contracts shall not exceed $50,000,000

per annum prior to July 1, 1975, which maximum dollar amount shall

be increased by $60,000,000 on July 1, 1975. The aggregate

principal amount of the obligations which may be guaranteed under

this section and outstanding at any one time shall not exceed

$500,000,000.

(d) Requirements for guaranteed obligations

The Secretary shall take such steps as he considers reasonable to

assure that bonds, debentures, notes, and other obligations which

are guaranteed under subsection (c) of this section will -

(1) be issued only to investors approved by, or meeting

requirements prescribed by, the Secretary, or, if an offering to

the public is contemplated, be underwritten upon terms and

conditions approved by the Secretary;

(2) bear interest at a rate satisfactory to the Secretary;

(3) contain or be subject to repayment, maturity, and other

provisions satisfactory to the Secretary; and

(4) contain or be subject to provisions with respect to the

protection of the security interests of the United States,

including any provisions deemed appropriate by the Secretary

relating to subrogation, liens, and releases of liens, payment of

taxes, cost certification procedures, escrow or trusteeship

requirements, or other matters.

(e) Revolving fund for payment of liabilities incurred pursuant to

guarantees and payment of obligations issued to Secretary of the

Treasury; composition; availability, issuance of obligations to

Secretary of the Treasury for implementation of guarantees;

amount, maturity, rate of interest, and purchase by Secretary of

the Treasury of obligations; payment of expenses and charges

(1) The Secretary is authorized to establish a revolving fund to

provide for the timely payment of any liabilities incurred as a

result of guarantees under subsection (c) of this section and for

the payment of obligations issued to the Secretary of the Treasury

under paragraph (2) of this subsection. Such revolving fund shall

be comprised of (A) receipts from fees and charges; (B) recoveries

under security, subrogation, and other rights; (C) repayments,

interest income, and any other receipts obtained in connection with

guarantees made under subsection (c) of this section; (D) proceeds

of the obligations issued to the Secretary of the Treasury pursuant

to paragraph (2) of this subsection; and (E) such sums, which are

hereby authorized to be appropriated, as may be required for such

purposes. Money in the revolving fund not currently needed for the

purpose of this section shall be kept on hand or on deposit, or

invested in obligations of the United States or guaranteed thereby,

or in obligations, participations, or other instruments which are

lawful investments for fiduciary, trust, or public funds.

(2) The Secretary may issue obligations to the Secretary of the

Treasury in an amount sufficient to enable the Secretary to carry

out his functions with respect to the guarantees authorized by

subsection (c) of this section. The obligations issued under this

paragraph shall have such maturities and bear such rate or rates of

interest as shall be determined by the Secretary of the Treasury.

The Secretary of the Treasury is authorized and directed to

purchase any obligations so issued, and for that purpose he is

authorized to use a public debt transaction the proceeds from the

sale of any securities issued under chapter 31 of title 31, and the

purposes for which securities may be issued under such chapter are

extended to include purchases of the obligations hereunder.

(3) Notwithstanding any other provision of law relating to the

acquisition, handling, improvement, or disposal of real and other

property by the United States, the Secretary shall have power, for

the protection of the interests of the fund authorized under this

subsection, to pay out of such fund all expenses or charges in

connection with the acquisition, handling, improvement, or disposal

of any property, real or personal, acquired by him as a result of

recoveries under security, subrogation, or other rights.

(f) Technical assistance to agencies for planning and execution of

development activities

The Secretary is authorized to provide, either directly or by

contract or other arrangements, technical assistance to State

housing finance or State development agencies to assist them in

connection with planning and carrying out development activities in

furtherance of the purpose of this section.

(g) Labor standards

All laborers and mechanics employed by contractors or

subcontractors in housing or development activities assisted under

this section shall be paid wages at rates not less than those

prevailing on similar work in the locality as determined by the

Secretary of Labor in accordance with sections 3141-3144, 3146, and

3147 of title 40: Provided, That this section shall apply to the

construction of residential property only if such property is

designed for residential use for eight or more families. No

assistance shall be extended under this section with respect to any

development activities without first obtaining adequate assurance

that these labor standards will be maintained upon the work

involved in such activities. The Secretary of Labor shall have,

with respect to the labor standards specified in this subsection,

the authority and functions set forth in Reorganization Plan

Numbered 14 of 1950 (64 Stat. 1267), and section 3145 of title 40.

(h) Protection of guarantees issued by United States; inclusion by

purchaser in gross income of interest paid on obligations issued

by agencies

(1) In the performance of, and with respect to, the functions,

powers, and duties vested in him by this section, the Secretary, in

addition to any authority otherwise vested to him, shall -

(A) have the power, notwithstanding any other provision of law,

in connection with any guarantee under this section, whether

before or after default, to provide by contract for the

extinguishment upon default of any redemption, equitable, legal,

or other right, title, or interest of a State housing finance or

State development agency in any mortgage, deed, trust, or other

instrument held by or on behalf of the Secretary for the

protection of the security interests of the United States; and

(B) have the power to foreclose on any property or commence any

action to protect or enforce any right conferred upon him by law,

contract, or other agreement, and bid for and purchase at any

foreclosure or other sale any property in connection with which

he has provided a guarantee pursuant to this section. In the

event of any such acquisition, the Secretary may, notwithstanding

any other provision of law relating to the acquisition, handling,

or disposal of real property by the United States, complete,

administer, remodel and convert, dispose of, lease, and otherwise

deal with, such property. Notwithstanding any other provision of

law, the Secretary shall also have power to pursue to final

collection by way of compromise or otherwise all claims acquired

by him in connection with any security, subrogation, or other

rights obtained by him in administering this section.

(2) With respect to any obligation issued by a State housing

finance or State development agency for which the issuer has

elected to receive the benefits of the assistance provided under

this section, the interest paid on such obligation and received by

the purchaser thereof (or his successor in interest) shall be

included in gross income for the purposes of chapter 1 of title 26.

-SOURCE-

(Pub. L. 93-383, title VIII, Sec. 802(a)-(h), Aug. 22, 1974, 88

Stat. 722-724; Pub. L. 98-479, title II, Sec. 203(l)(4), Oct. 17,

1984, 98 Stat. 2231.)

-REFTEXT-

REFERENCES IN TEXT

This Act, referred to in subsec. (c)(1), is Pub. L. 93-383, Aug.

22, 1974, 88 Stat. 633, as amended, known as the Housing and

Community Development Act of 1974. Title I of the Housing and

Community Development Act of 1974 is classified principally to

chapter 69 (Sec. 5301 et seq.) of this title. For complete

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

out under section 5301 of this title and Tables.

Reorganization Plan Numbered 14 of 1950, referred to in subsec.

(g), is Reorg. Plan No. 14 of 1950, eff. May 24, 1950, 15 F.R.

3176, 64 Stat. 1267, which is set out in the Appendix to Title 5,

Government Organization and Employees.

-COD-

CODIFICATION

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

substituted for "the Davis-Bacon Act, as amended (40 U.S.C. 276a -

276a-5)" and "section 3145 of title 40" substituted for "section 2

of the Act of June 13, 1934 (40 U.S.C. 276c)" on authority of Pub.

L. 107-217, Sec. 5(c), Aug. 21, 2002, 116 Stat. 1303, the first

section of which enacted Title 40, Public Buildings, Property, and

Works.

Section was enacted as part of the Housing and Community

Development Act of 1974, and not as part of the United States

Housing Act of 1937 which comprises this chapter.

-MISC1-

AMENDMENTS

1984 - Subsec. (e)(2). Pub. L. 98-479 substituted "chapter 31 of

title 31" for "the Second Liberty Bond Act" and "such chapter" for

"that Act".

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1437c of this title; title

12 section 1464.

-End-

-HEAD-