-CITE-
    42 USC CHAPTER 130 - NATIONAL AFFORDABLE HOUSING            01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING

-HEAD-
                 CHAPTER 130 - NATIONAL AFFORDABLE HOUSING             

-MISC1-
              SUBCHAPTER I - GENERAL PROVISIONS AND POLICIES          
    Sec.                                                     
    12701.      National housing goal.                                
    12702.      Objective of national housing policy.                 
    12703.      Purposes of Cranston-Gonzalez National Affordable
                 Housing Act.                                         
    12704.      Definitions.                                          
    12705.      State and local housing strategies.                   
                  (a)  In general.                                    
                  (b)  Contents.                                      
                  (c)  Approval.                                      
                  (d)  Coordination of State and local housing
                        strategies.                                   
                  (e)  Consultation with social service agencies.     
                  (f)  Barrier removal.                               
                  (g)  Treatment of troubled public housing agencies. 
    12705a.     Purposes of Removal of Regulatory Barriers to
                 Affordable Housing Act.                              
    12705b.     Definition of regulatory barriers to affordable
                 housing.                                             
    12705c.     Grants for regulatory barrier removal strategies and
                 implementation.                                      
                  (a)  Funding.                                       
                  (b)  Grant authority.                               
                  (c)  Repealed.                                      
                  (d)  Definitions.                                   
                  (e)  Application and selection.                     
                  (f)  Selection of grantees.                         
                  (g)  Coordination with clearinghouse.               
                  (h)  Reports to Secretary.                          
    12705d.     Regulatory barriers clearinghouse.                    
                  (a)  Establishment.                                 
                  (b)  Functions.                                     
                  (c)  Organization.                                  
                  (d)  Timing.                                        
    12706.      Certification.                                        
    12707.      Citizen participation.                                
                  (a)  In general.                                    
                  (b)  Notice and comment.                            
                  (c)  Consideration of comments.                     
                  (d)  Regulations.                                   
    12708.      Compliance.                                           
                  (a)  Performance reports.                           
                  (b)  Performance review by Secretary.               
                  (c)  Review by courts.                              
    12709.      Energy efficiency standards.                          
                  (a)  Establishment.                                 
                  (b)  Model Energy Code.                             
                  (c)  Revisions of Model Energy Code and the
                        International Energy Conservation Code.       
    12710.      Capacity study.                                       
                  (a)  In general.                                    
                  (b)  Report.                                        
    12711.      Protection of State and local authority.              
    12712.      5-year energy efficiency plan.                        
                  (a)  Establishment.                                 
                  (b)  Initial plan.                                  
                  (c)  Updates.                                       
                  (d)  Submission to Congress.                        
    12713.      Eligibility under first-time homebuyer programs.      
                  (a)  Eligibility of displaced homemakers and single
                        parents for Federal assistance for first-time
                        homebuyers.                                   
                  (b)  Definitions.                                   
                  (c)  Applicability.                                 
    12714.      Repealed.                                             

             SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING         
    12721.      Findings.                                             
    12722.      Purposes.                                             
    12723.      Coordinated Federal support for housing strategies.   
    12724.      Authorization.                                        
    12725.      Notice.                                               

                   PART A - HOME INVESTMENT PARTNERSHIPS               
    12741.      Authority.                                            
    12742.      Eligible uses of investment.                          
                  (a)  Housing uses.                                  
                  (b)  Investments.                                   
                  (c)  Administrative costs.                          
                  (d)  Prohibited uses.                               
                  (e)  Cost limits.                                   
                  (f)  Certification of compliance.                   
                  (g)  Limitation on operating assistance.            
    12743.      Development of model programs.                        
                  (a)  In general.                                    
                  (b)  Adoption of programs.                          
                  (c)  Part D programs.                               
    12744.      Income targeting.                                     
    12745.      Qualification as affordable housing.                  
                  (a)  Rental housing.                                
                  (b)  Homeownership.                                 
    12746.      Participation by States and local governments.        
    12747.      Allocation of resources.                              
                  (a)  In general.                                    
                  (b)  Formula allocation.                            
                  (c)  Criteria for direct reallocation.              
                  (d)  Reallocations.                                 
    12748.      HOME Investment Trust Funds.                          
                  (a)  Establishment.                                 
                  (b)  Line of credit.                                
                  (c)  Reductions.                                    
                  (d)  Certification.                                 
                  (e)  Investment within 15 days.                     
                  (f)  No interest or fees.                           
                  (g)  Expiration of right to draw funds.             
                  (h)  Administrative provision.                      
    12749.      Repayment of investment.                              
                  (a)  In general.                                    
                  (b)  Assurance of repayment.                        
                  (c)  Availability.                                  
    12750.      Matching requirements.                                
                  (a)  Contribution.                                  
                  (b)  Recognition.                                   
                  (c)  Form.                                          
                  (d)  Reduction of requirement.                      
    12751.      Private-public partnership.                           
    12752.      Distribution of assistance.                           
                  (a)  Local.                                         
                  (b)  State.                                         
    12753.      Penalties for misuse of funds.                        
    12754.      Limitation on jurisdictions under court order.        
                  (a)  In general.                                    
                  (b)  Remedial use of funds permitted.               
    12755.      Tenant and participant protections.                   
                  (a)  Lease.                                         
                  (b)  Termination of tenancy.                        
                  (c)  Maintenance and replacement.                   
                  (d)  Tenant selection.                              
    12756.      Monitoring of compliance.                             
                  (a)  Enforceable agreements.                        
                  (b)  Periodic monitoring.                           
                  (c)  Special procedures for certain projects.       

                  PART B - COMMUNITY HOUSING PARTNERSHIP              
    12771.      Set-aside for community housing development
                 organizations.                                       
                  (a)  In general.                                    
                  (b)  Recapture and reuse.                           
                  (c)  Direct reallocation criteria.                  
    12772.      Project-specific assistance to community housing
                 development organizations.                           
                  (a)  In general.                                    
                  (b)  Project-specific technical assistance and site
                        control loans.                                
                  (c)  Project-specific seed money loans.             
    12773.      Housing education and organizational support.         
                  (a)  In general.                                    
                  (b)  Eligible activities.                           
                  (c)  Delivery of assistance.                        
                  (d)  Limitations.                                   
                  (e)  Single-State contractors.                      
                  (f)  "Community land trust" defined.                
    12774.      Other requirements.                                   
                  (a)  Tenant participation plan.                     
                  (b)  Limitation on assistance.                      
                  (c)  Adjustments of other assistance.               

       PART C - OTHER SUPPORT FOR STATE AND LOCAL HOUSING STRATEGIES   
    12781.      Authority.                                            
    12782.      Priorities for capacity development.                  
    12783.      Conditions of contracts.                              
                  (a)  Eligible organizations.                        
                  (b)  Contract terms.                                
    12784.      Research in housing affordability.                    
    12785.      REACH: asset recycling information dissemination.     
                  (a)  In general.                                    
                  (b)  Eligible properties.                           

                     PART D - SPECIFIED MODEL PROGRAMS                 
    12801.      General authority.                                    
    12802.      Rental housing production.                            
                  (a)  Repayable advances.                            
                  (b)  Selection guidelines.                          
                  (c)  Guidelines.                                    
    12803.      Rental rehabilitation.                                
                  (a)  In general.                                    
                  (b)  Amount of subsidy.                             
                  (c)  Additional restrictions.                       
    12804.      Rehabilitation loans.                                 
                  (a)  In general.                                    
                  (b)  Condition of loans.                            
                  (c)  Additional restrictions.                       
    12805.      Sweat equity model program.                           
                  (a)  In general.                                    
                  (b)  Rehabilitation of properties.                  
                  (c)  Homeownership opportunities through sweat
                        equity.                                       
                  (d)  Rental opportunities through sweat equity.     
                  (e)  "Self-help housing" defined.                   
                  (f)  Additional restrictions.                       
    12806.      Home repair services grants for older and disabled
                 homeowners.                                          
                  (a)  In general.                                    
                  (b)  Eligible recipients.                           
                  (c)  Permitted restrictions.                        
    12807.      Low-income housing conservation and efficiency grant
                 programs.                                            
                  (a)  In general.                                    
                  (b)  Activities.                                    
    12808.      Second mortgage assistance for first-time homebuyers. 
                  (a)  In general.                                    
                  (b)  Homeownership counseling.                      
                  (c)  Eligibility requirements.                      
                  (d)  Payment terms.                                 
                  (e)  Security.                                      
    12809.      Rehabilitation of State and local government in rem
                 properties.                                          
                  (a)  In general.                                    
                  (b)  Target.                                        
    12810.      Cost-saving building technologies and construction
                 techniques.                                          
                  (a)  In general.                                    
                  (b)  Selection criteria.                            
                  (c)  Guidelines.                                    
                  (d)  Report.                                        

                         PART E - OTHER ASSISTANCE                     
    12821.      Downpayment assistance initiative.                    
                  (a)  Definitions.                                   
                  (b)  Grant authority.                               
                  (c)  Eligible activities.                           
                  (d)  Formula allocation.                            
                  (e)  Reallocation.                                  
                  (f)  Applicability of other provisions.             
                  (g)  Housing strategy.                              
                  (h)  Report.                                        
                  (i)  Sunset.                                        
                  (j)  Relocation assistance and downpayment
                        assistance.                                   
                  (k)  Authorization of appropriations.               

                        PART F - GENERAL PROVISIONS                    
    12831.      Equal opportunity.                                    
                  (a)  Solicitation of contracts.                     
                  (b)  Report to Congress.                            
    12832.      Nondiscrimination.                                    
    12833.      Audits by Comptroller General.                        
                  (a)  Audits of HOME Investment Partnerships program.
                  (b)  Audits of recipients.                          
    12834.      Uniform recordkeeping and reports to Congress.        
                  (a)  Uniform requirements.                          
                  (b)  Omitted.                                       
    12835.      Citizen participation.                                
    12836.      Labor.                                                
                  (a)  In general.                                    
                  (b)  Waiver.                                        
    12837.      Interstate agreements.                                
    12838.      Environmental review.                                 
                  (a)  In general.                                    
                  (b)  Procedure.                                     
                  (c)  Certification.                                 
                  (d)  Assistance to units of general local government
                        from a State.                                 
    12839.      Termination of existing housing programs.             
                  (a)  In general.                                    
                  (b)  Repeals.                                       
                  (c)  Disposition of repayments.                     
    12840.      Suspension of requirements for disaster areas.        

        SUBCHAPTER III - NATIONAL HOMEOWNERSHIP TRUST DEMONSTRATION    
    12851.      National Homeownership Trust.                         
                  (a)  Establishment.                                 
                  (b)  Board of Directors.                            
                  (c)  Powers of Trust.                               
                  (d)  Travel and per diem.                           
                  (e)  Director and staff.                            
    12852.      Assistance for first-time homebuyers.                 
                  (a)  In general.                                    
                  (b)  Eligibility requirements.                      
                  (c)  Terms of assistance.                           
                  (d)  Allocation formula.                            
                  (e)  Assistance in connection with housing financed
                        with mortgage revenue bonds.                  
    12853.      National Homeownership Trust Fund.                    
                  (a)  Establishment.                                 
                  (b)  Assets.                                        
                  (c)  Use of amounts.                                
                  (d)  Investment of excess amounts.                  
                  (e)  Demonstration programs.                        
    12854.      Definitions.                                          
    12855.      Regulations.                                          
    12856.      Report.                                               
    12857.      Authorization of appropriations.                      
    12858.      Transition.                                           
                  (a)  Authority of Secretary.                        
                  (b)  Applicability of Trust provisions.             
                  (c)  Certification of Fund to Treasury.             
    12859.      Termination.                                          

     SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE
                               FAMILY HOMES
    12870.      Authorization of appropriations.                      
                  (a)  Fiscal year 1993.                              
                  (b)  Fiscal year 1994.                              
                  (c)  Technical assistance.                          

           PART A - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY UNITS       
    12871.      Program authority.                                    
                  (a)  In general.                                    
                  (b)  Authority to reserve housing assistance.       
    12872.      Planning grants.                                      
                  (a)  Grants.                                        
                  (b)  Eligible activities.                           
                  (c)  Application.                                   
                  (d)  Selection criteria.                            
    12873.      Implementation grants.                                
                  (a)  Grants.                                        
                  (b)  Eligible activities.                           
                  (c)  Matching funding.                              
                  (d)  Application.                                   
                  (d)  Selection criteria.                            
                  (e)  Approval.                                      
    12874.      Homeownership program requirements.                   
                  (a)  In general.                                    
                  (b)  Affordability.                                 
                  (c)  Plan.                                          
                  (d)  Acquisition and rehabilitation limitation.     
                  (e)  Financing.                                     
                  (f)  Housing quality standards.                     
                  (g)  Protection of nonpurchasing families.          
    12875.      Other program requirements.                           
                  (a)  Preferences.                                   
                  (b)  Cost limitations.                              
                  (c)  Use of proceeds from sales to eligible
                        families.                                     
                  (d)  Restrictions on resale by homeowners.          
                  (e)  Third party rights.                            
                  (f)  Dollar limitation on economic development
                        activities.                                   
                  (g)  Timely homeownership.                          
                  (h)  Records and audit of recipients of assistance. 
                  (i)  Certain entities not eligible.                 
    12876.      Definitions.                                          
    12877.      Exemption.                                            
    12878.      Limitation on selection criteria.                     
    12879.      Implementation.                                       
    12880.      Report.                                               

          PART B - HOPE FOR HOMEOWNERSHIP OF SINGLE FAMILY HOMES      
    12891.      Program authority.                                    
    12892.      Planning grants.                                      
                  (a)  Grants.                                        
                  (b)  Eligible activities.                           
                  (c)  Application.                                   
                  (d)  Selection criteria.                            
    12893.      Implementation grants.                                
                  (a)  Grants.                                        
                  (b)  Eligible activities.                           
                  (c)  Matching funding.                              
                  (d)  Application.                                   
                  (e)  Selection criteria.                            
                  (f)  Approval.                                      
    12894.      Homeownership program requirements.                   
                  (a)  In general.                                    
                  (b)  Affordability.                                 
                  (c)  Eligible property.                             
                  (d)  Plan.                                          
                  (e)  Housing quality standards.                     
                  (f)  Preference for acquisition of vacant units.    
    12895.      Other program requirements.                           
                  (a)  Cost limitations.                              
                  (b)  Use of proceeds from sales to eligible
                        families.                                     
                  (c)  Restrictions on resale by homeowners.          
                  (d)  Third party rights.                            
                  (e)  Protection of nonpurchasing families.          
                  (h)  Records and audit of recipients of assistance. 
    12896.      Definitions.                                          
    12897.      Limitation on selection criteria.                     
    12898.      Implementation.                                       
    12898a.     Enterprise zone homeownership opportunity grants.     
                  (a)  Statement of purpose.                          
                  (b)  Definitions.                                   
                  (c)  Assistance to nonprofit organizations.         
                  (d)  Eligible uses of assistance.                   
                  (e)  Program requirements.                          
                  (f)  Terms and conditions of assistance.            
                  (g)  Program selection criteria.                    
                  (h)  Regulations.                                   
                  (i)  Funding.                                       

                    PART C - HOPE FOR YOUTH: YOUTHBUILD                
    12899.      Statement of purpose.                                 
    12899a.     Program authority.                                    
    12899b.     Planning grants.                                      
                  (a)  Grants.                                        
                  (b)  Eligible activities.                           
                  (c)  Application.                                   
                  (d)  Selection criteria.                            
    12899c.     Implementation grants.                                
                  (a)  Grants.                                        
                  (b)  Eligible activities.                           
                  (c)  Application.                                   
                  (d)  Selection criteria.                            
                  (e)  Priority for applicants who obtain housing
                        money from other sources.                     
                  (f)  Approval.                                      
                  (g)  Combined planning and implementation grant
                        application procedure.                        
    12899d.     Youthbuild program requirements.                      
                  (a)  Residential rental housing.                    
                  (b)  Transitional housing.                          
                  (c)  Limitations on profits for rental and
                        transitional housing.                         
                  (d)  Homeownership.                                 
                  (e)  Restrictions on conveyance.                    
                  (f)  Conversion of transitional housing.            
                  (g)  Period of restrictions.                        
    12899e.     Additional program requirements.                      
                  (a)  Eligible participants.                         
                  (b)  Minimum time devoted to educational services
                        and activities.                               
                  (c)  Authority restriction.                         
                  (d)  State and local standards.                     
                  (e)  Wages, labor standards, and nondiscrimination. 
    12899f.     Definitions.                                          
    12899g.     Management and technical assistance.                  
                  (a)  Secretary assistance.                          
                  (b)  Sponsor assistance.                            
                  (c)  Application preparation.                       
                  (d)  Reservation of funds.                          
    12899h.     Contracts.                                            
    12899h-1.   Ineligibility of Indian tribes.                       
    12899i.     Regulations.                                          

-End-

-CITE-
    42 USC SUBCHAPTER I - GENERAL PROVISIONS AND POLICIES       01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER I - GENERAL PROVISIONS AND POLICIES

-HEAD-
              SUBCHAPTER I - GENERAL PROVISIONS AND POLICIES          

-End-

-CITE-
    42 USC Sec. 12701                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER I - GENERAL PROVISIONS AND POLICIES

-HEAD-
    Sec. 12701. National housing goal

-STATUTE-
      The Congress affirms the national goal that every American family
    be able to afford a decent home in a suitable environment.

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

-MISC1-
                       SHORT TITLE OF 2003 AMENDMENT                   
      Pub. L. 108-186, title I, Sec. 101, Dec. 16, 2003, 117 Stat.
    2685, provided that: "This title [amending part E of subchapter II
    of this chapter] may be cited as the 'American Dream Downpayment
    Act'."

                       SHORT TITLE OF 2000 AMENDMENT                   
      Pub. L. 106-569, title I, Sec. 101, Dec. 27, 2000, 114 Stat.
    2946, provided that: "This title [amending sections 5307, 12705c,
    and 12705d of this title] may be cited as the 'Housing
    Affordability Barrier Removal Act of 2000'."

                                SHORT TITLE                            
      Section 1(a) of Pub. L. 101-625 provided that: "This Act [see
    Tables for classification] may be cited as the 'Cranston-Gonzalez
    National Affordable Housing Act'."
      Section 201 of title II of Pub. L. 101-625 provided that: "This
    title [enacting subchapter II of this chapter, amending section
    1437f of this title, and repealing sections 1437o and 1452b of this
    title, section 1706e of Title 12, Banks and Banking, and provisions
    set out as a note under section 1715l of Title 12] may be cited as
    the 'HOME Investment Partnerships Act'."
      Section 301 of Pub. L. 101-625 provided that: "This subtitle
    [subtitle A (Secs. 301-310) of title III of Pub. L. 101-625,
    enacting subchapter III of this chapter] may be cited as the
    'National Homeownership Trust Act'."

                       MILLENNIAL HOUSING COMMISSION                   
      Pub. L. 107-73, title II, Nov. 26, 2001, 115 Stat. 671, provided
    in part: "That $1,500,000 shall be for necessary expenses of the
    Millennial Housing Commission, as authorized by section 206 of
    Public Law 106-74 [set out below], with the final report due no
    later than May 30, 2002 and a termination date of August 30, 2002,
    notwithstanding section 206(f) and (g) of Public Law 106-74".
      Pub. L. 106-74, title II, Sec. 206, Oct. 20, 1999, 113 Stat.
    1070, as amended by Pub. L. 106-554, Sec. 1(a)(4) [div. B, title X,
    Sec. 1001], Dec. 21, 2000, 114 Stat. 2763, 2763A-310, provided
    that:
      "(a) Establishment. - There is hereby established a commission to
    be known as the Millennial Housing Commission (in this section
    referred to as the 'Commission').
      "(b) Study. - The duty of the Commission shall be to conduct a
    study that examines, analyzes, and explores - 
        "(1) the importance of housing, particularly affordable housing
      which includes housing for the elderly, to the infrastructure of
      the United States;
        "(2) the various possible methods for increasing the role of
      the private sector in providing affordable housing in the United
      States, including the effectiveness and efficiency of such
      methods; and
        "(3) whether the existing programs of the Department of Housing
      and Urban Development work in conjunction with one another to
      provide better housing opportunities for families, neighborhoods,
      and communities, and how such programs can be improved with
      respect to such purpose.
      "(c) Membership. - 
        "(1) Number and Appointment. - The Commission shall be composed
      of 22 members, appointed not later than January 1, 2000, as
      follows:
          "(A) Two co-chairpersons appointed by - 
            "(i) one co-chairperson appointed by a committee consisting
          of the chairmen of the Subcommittees on the Departments of
          Veterans Affairs and Housing and Urban Development, and
          Independent Agencies of the Committees on Appropriations of
          the House of Representatives and the Senate, and the chairman
          of the Subcommittee on Housing and Community Opportunities of
          the House of Representatives and the chairman of the
          Subcommittee on Housing and Transportation of the Senate; and
            "(ii) one co-chairperson appointed by a committee
          consisting of the ranking minority members of the
          Subcommittees on the Departments of Veterans Affairs and
          Housing and Urban Development, and Independent Agencies of
          the Committees on Appropriations of the House of
          Representatives and the Senate, and the ranking minority
          member of the Subcommittee on Housing and Community
          Opportunities of the House of Representatives and the ranking
          minority member of the Subcommittee on Housing and
          Transportation of the Senate.
          "(B) Ten members appointed by the Chairman and Ranking
        Minority Member of the Committee on Appropriations of the House
        of Representatives and the Chairman and Ranking Minority Member
        of the Committee on Banking and Financial Services [now
        Committee on Financial Services] of the House of
        Representatives.
          "(C) Ten members appointed by the Chairman and Ranking
        Minority Member of the Committee on Appropriations of the
        Senate and the Chairman and Ranking Minority Member of the
        Committee on Banking, Housing, and Urban Affairs of the Senate.
        "(2) Qualifications. - Appointees should have proven expertise
      in directing, assemblying, or applying capital resources from a
      variety of sources to the successful development of affordable
      housing or the revitalization of communities, including economic
      and job development.
        "(3) Vacancies. - Any vacancy on the Commission shall not
      affect its powers and shall be filled in the manner in which the
      original appointment was made.
        "(4) Chairpersons. - The members appointed pursuant to
      paragraph (1)(A) shall serve as co-chairpersons of the
      Commission.
        "(5) Prohibition of pay. - Members of the Commission shall
      serve without pay.
        "(6) Travel expenses. - Each member of the Commission shall
      receive travel expenses, including per diem in lieu of
      subsistence, in accordance with sections 5702 and 5703 of title
      5, United States Code.
        "(7) Quorum. - A majority of the members of the Commission
      shall constitute a quorum but a lesser number may hold hearings.
        "(8) Meetings. - The Commission shall meet at the call of the
      Chairpersons.
      "(d) Director and Staff. - 
        "(1) Director. - The Commission shall have a Director who shall
      be appointed by the Chairperson. The Director shall be paid at a
      rate not to exceed the rate of basic pay payable for level III of
      the Executive Schedule.
        "(2) Staff. - The Commission may appoint personnel as
      appropriate. The staff of the Commission shall be appointed
      subject to the provisions of title 5, United States Code,
      governing appointments in the competitive service, and shall be
      paid in accordance with the provisions of chapter 51 and
      subchapter III of chapter 53 of that title relating to
      classification and General Schedule pay rates.
        "(3) Experts and consultants. - The Commission may procure
      temporary and intermittent services under section 3109(b) of
      title 5, United States Code, but at rates for individuals not to
      exceed the daily equivalent of the maximum annual rate of basic
      pay payable for the General Schedule.
        "(4) Staff of federal agencies. - Upon request of the
      Commission, the head of any Federal department or agency may
      detail, on a non-reimbursable basis, any of the personnel of that
      department or agency to the Commission to assist it in carrying
      out its duties under this Act.
      "(e) Powers. - 
        "(1) Hearings and sessions. - The Commission may, for the
      purpose of carrying out this section, hold hearings, sit and act
      at times and places, take testimony, and receive evidence as the
      Commission considers appropriate.
        "(2) Powers of members and agents. - Any member or agent of the
      Commission may, if authorized by the Commission, take any action
      which the Commission is authorized to take by this section.
        "(3) Obtaining official data. - The Commission may secure
      directly from any department or agency of the United States
      information necessary to enable it to carry out this Act. Upon
      request of the Chairpersons of the Commission, the head of that
      department or agency shall furnish that information to the
      Commission.
        "(4) Gifts, bequests, and devises. - The Commission may accept,
      use, and dispose of gifts, bequests, or devises of services or
      property, both real and personal, for the purpose of aiding or
      facilitating the work of the Commission. Gifts, bequests, or
      devises of money and proceeds from sales of other property
      received as gifts, bequests, or devises shall be deposited in the
      Treasury and shall be available for disbursement upon order of
      the Commission.
        "(5) Mails. - The Commission may use the United States mails in
      the same manner and under the same conditions as other
      departments and agencies of the United States.
        "(6) Administrative support services. - Upon the request of the
      Commission, the Administrator of General Services shall provide
      to the Commission, on a reimbursable basis, the administrative
      support services necessary for the Commission to carry out its
      responsibilities under this section.
        "(7) Contract Authority. - The Commission may contract with and
      compensate Government and private agencies or persons for
      services, without regard to section 3709 of the Revised Statutes
      (41 U.S.C. 5).
      "(f) Report. - The Commission shall submit to the Committees on
    Appropriations and Banking and Financial Services [now Committee on
    Financial Services] of the House of Representatives and the
    Committees on Appropriations and Banking, Housing, and Urban
    Affairs of the Senate a final report not later than March 1, 2002.
    The report shall contain a detailed statement of the findings and
    conclusions of the Commission with respect to the study conducted
    under subsection (b), together with its recommendations for
    legislation, administrative actions, and any other actions the
    Commission considers appropriate.
      "(g) Termination. - The Commission shall terminate on June 30,
    2002. Section 14(a)(2)(B) of the Federal Advisory Committee Act (5
    U.S.C. App.; relating to the termination of advisory committees)
    shall not apply to the Commission."

      COMMISSION ON AFFORDABLE HOUSING AND HEALTH FACILITY NEEDS FOR
                        SENIORS IN THE 21ST CENTURY
      Pub. L. 107-73, title II, Nov. 26, 2001, 115 Stat. 671, provided
    in part: "That $1,000,000 shall be for necessary expenses of the
    commission established under section 525 of the Preserving
    Affordable Housing for Senior Citizens and Families in the 21st
    Century Act [Pub. L. 106-74, set out below], with the final report
    due no later than June 30, 2002 and a termination date of September
    30, 2002, notwithstanding section 525(f) and (g) of Public Law 106-
    74".
      Pub. L. 106-74, title V, Sec. 525, Oct. 20, 1999, 113 Stat. 1106,
    as amended by Pub. L. 106-377, Sec. 1(a)(1) [title II, Sec. 230],
    Oct. 27, 2000, 114 Stat. 1441, 1441A-31, provided that:
      "(a) Establishment. - There is hereby established a commission to
    be known as the Commission on Affordable Housing and Health
    Facility Needs for Seniors in the 21st Century (in this section
    referred to as the 'Commission'.
      "(b) Study. - The duty of the Commission shall be to conduct a
    study that - 
        "(1) compiles and interprets information regarding the expected
      increase in the population of persons 62 years of age or older,
      particularly information regarding distribution of income levels,
      homeownership and home equity rates, and degree or extent of
      health and independence of living;
        "(2) provides an estimate of the future needs of seniors for
      affordable housing and assisted living and health care
      facilities;
        "(3) provides a comparison of estimate of such future needs
      with an estimate of the housing and facilities expected to be
      provided under existing public programs, and identifies possible
      actions or initiatives that may assist in providing affordable
      housing and assisted living and health care facilities to meet
      such expected needs;
        "(4) identifies and analyzes methods of encouraging increased
      private sector participation, investment, and capital formation
      in affordable housing and assisted living and health care
      facilities for seniors through partnerships between public and
      private entities and other creative strategies;
        "(5) analyzes the costs and benefits of comprehensive aging-in-
      place strategies, taking into consideration physical and mental
      well-being and the importance of coordination between shelter and
      supportive services;
        "(6) identifies and analyzes methods of promoting a more
      comprehensive approach to dealing with housing and supportive
      service issues involved in aging and the multiple governmental
      agencies involved in such issues, including the Department of
      Housing and Urban Development and the Department of Health and
      Human Services; and
        "(7) examines how to establish intergenerational learning and
      care centers and living arrangements, in particular to facilitate
      appropriate environments for families consisting only of children
      and a grandparent or grandparents who are the head of the
      household.
      "(c) Membership. - 
        "(1) Number and Appointment. - The Commission shall be composed
      of 14 members, appointed not later than January 1, 2000, as
      follows:
          "(A) Two co-chairpersons, of whom - 
            "(i) one co-chairperson shall be appointed by a committee
          consisting of the chairman of the Subcommittee on Housing and
          Community Opportunities of the House of Representatives and
          the chairman of the Subcommittee on Housing and
          Transportation of the Senate, and the chairmen of the
          Subcommittees on the Departments of Veterans Affairs and
          Housing and Urban Development, and Independent Agencies of
          the Committees on Appropriations of the House of
          Representatives and the Senate; and
            "(ii) one co-chairperson shall be appointed by a committee
          consisting of the ranking minority member of the Subcommittee
          on Housing and Community Opportunities of the House of
          Representatives and the ranking minority member of the
          Subcommittee on Housing and Transportation of the Senate, and
          the ranking minority members of the Subcommittees on the
          Departments of Veterans Affairs and Housing and Urban
          Development, and Independent Agencies of the Committees on
          Appropriations of the House of Representatives and the
          Senate.
          "(B) Six members appointed by the Chairman and Ranking
        Minority Member of the Committee on Banking and Financial
        Services [now Committee on Financial Services] of the House of
        Representatives and the Chairman and Ranking Minority Member of
        the Committee on Appropriations of the House of
        Representatives.
          "(C) Six members appointed by the Chairman and Ranking
        Minority Member of the Committee on Banking, Housing, and Urban
        Affairs of the Senate and the Chairman and Ranking Minority
        Member of the Committee on Appropriations of the Senate.
        "(2) Qualifications. - Appointees should have proven expertise
      in directing, assembling, or applying capital resources from a
      variety of sources to the successful development of affordable
      housing, assisted living facilities, or health care facilities.
        "(3) Vacancies. - Any vacancy on the Commission shall not
      affect its powers and shall be filled in the manner in which the
      original appointment was made.
        "(4) Chairpersons. - The members appointed pursuant to
      paragraph (1)(A) shall serve as co-chairpersons of the
      Commission.
        "(5) Prohibition of pay. - Members of the Commission shall
      serve without pay.
        "(6) Travel expenses. - Each member of the Commission shall
      receive travel expenses, including per diem in lieu of
      subsistence, in accordance with sections 5702 and 5703 of title
      5, United States Code.
        "(7) Quorum. - A majority of the members of the Commission
      shall constitute a quorum but a lesser number may hold hearings.
        "(8) Meetings. - The Commission shall meet at the call of the
      Chairpersons.
      "(d) Director and Staff. - 
        "(1) Director. - The Commission shall have a Director who shall
      be appointed by the Chairperson. The Director shall be paid at a
      rate not to exceed the rate of basic pay payable for level V of
      the Executive Schedule.
        "(2) Staff. - The Commission may appoint personnel as
      appropriate. The staff of the Commission shall be appointed
      subject to the provisions of title 5, United States Code,
      governing appointments in the competitive service, and shall be
      paid in accordance with the provisions of chapter 51 and
      subchapter III of chapter 53 of that title relating to
      classification and General Schedule pay rates.
        "(3) Experts and consultants. - The Commission may procure
      temporary and intermittent services under section 3109(b) of
      title 5, United States Code, but at rates for individuals not to
      exceed the daily equivalent of the maximum annual rate of basic
      pay payable for the General Schedule.
        "(4) Staff of federal agencies. - Upon request of the
      Commission, the head of any Federal department or agency may
      detail, on a reimbursable basis, any of the personnel of that
      department or agency to the Commission to assist it in carrying
      out its duties under this Act.
      "(e) Powers. - 
        "(1) Hearings and sessions. - The Commission may, for the
      purpose of carrying out this section, hold hearings, sit and act
      at times and places, take testimony, and receive evidence as the
      Commission considers appropriate.
        "(2) Powers of members and agents. - Any member or agent of the
      Commission may, if authorized by the Commission, take any action
      which the Commission is authorized to take by this section.
        "(3) Obtaining official data. - The Commission may secure
      directly from any department or agency of the United States
      information necessary to enable it to carry out this Act. Upon
      request of the Chairpersons of the Commission, the head of that
      department or agency shall furnish that information to the
      Commission.
        "(4) Gifts, bequests, and devises. - The Commission may accept,
      use, and dispose of gifts, bequests, or devises of services or
      property, both real and personal, for the purpose of aiding or
      facilitating the work of the Commission. Gifts, bequests, or
      devises of money and proceeds from sales of other property
      received as gifts, bequests, or devises shall be deposited in the
      Treasury and shall be available for disbursement upon order of
      the Commission.
        "(5) Mails. - The Commission may use the United States mails in
      the same manner and under the same conditions as other
      departments and agencies of the United States.
        "(6) Administrative support services. - Upon the request of the
      Commission, the Administrator of General Services shall provide
      to the Commission, on a reimbursable basis, the administrative
      support services necessary for the Commission to carry out its
      responsibilities under this section.
        "(7) Contract authority. - The Commission may contract with and
      compensate Government and private agencies or persons for
      services, without regard to section 3709 of the Revised Statutes
      (41 U.S.C. 5).
      "(f) Report. - The Commission shall submit to the Committees on
    Banking and Financial Services [now Committee on Financial
    Services] and Appropriations of the House of Representatives and
    the Committees on Banking, Housing, and Urban Affairs and
    Appropriations of the Senate, a final report not later than
    December 31, 2001. The report shall contain a detailed statement of
    the findings and conclusions of the Commission with respect to the
    study conducted under subsection (b), together with its
    recommendations for legislation, administrative actions, and any
    other actions the Commission considers appropriate.
      "(g) Termination. - The Commission shall terminate on June 30,
    2002. Section 14(a)(2)(B) of the Federal Advisory Committee Act (5
    U.S.C. App.; relating to the termination of advisory committees)
    shall not apply to the Commission."

-End-

-CITE-
    42 USC Sec. 12702                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER I - GENERAL PROVISIONS AND POLICIES

-HEAD-
    Sec. 12702. Objective of national housing policy

-STATUTE-
      The objective of national housing policy shall be to reaffirm the
    long-established national commitment to decent, safe, and sanitary
    housing for every American by strengthening a nationwide
    partnership of public and private institutions able - 
        (1) to ensure that every resident of the United States has
      access to decent shelter or assistance in avoiding homelessness;
        (2) to increase the Nation's supply of decent housing that is
      affordable to low-income and moderate-income families and
      accessible to job opportunities;
        (3) to improve housing opportunities for all residents of the
      United States, particularly members of disadvantaged minorities,
      on a nondiscriminatory basis;
        (4) to help make neighborhoods safe and livable;
        (5) to expand opportunities for homeownership;
        (6) to provide every American community with a reliable,
      readily available supply of mortgage finance at the lowest
      possible interest rates; and
        (7) to encourage tenant empowerment and reduce generational
      poverty in federally assisted and public housing by improving the
      means by which self-sufficiency may be achieved.

-SOURCE-
    (Pub. L. 101-625, title I, Sec. 102, Nov. 28, 1990, 104 Stat.
    4085.)

-End-

-CITE-
    42 USC Sec. 12703                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER I - GENERAL PROVISIONS AND POLICIES

-HEAD-
    Sec. 12703. Purposes of Cranston-Gonzalez National Affordable
      Housing Act

-STATUTE-
      The purposes of this Act are - 
        (1) to help families not owning a home to save for a down
      payment for the purchase of a home;
        (2) to retain wherever feasible as housing affordable to low-
      income families those dwelling units produced for such purpose
      with Federal assistance;
        (3) to extend and strengthen partnerships among all levels of
      government and the private sector, including for-profit and
      nonprofit organizations, in the production and operation of
      housing affordable to low-income and moderate-income families;
        (4) to expand and improve Federal rental assistance for very
      low-income families; and
        (5) to increase the supply of supportive housing, which
      combines structural features and services needed to enable
      persons with special needs to live with dignity and independence.

-SOURCE-
    (Pub. L. 101-625, title I, Sec. 103, Nov. 28, 1990, 104 Stat.
    4085.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This Act, referred to in text, is Pub. L. 101-625, Nov. 28, 1990,
    104 Stat. 4079, known as the Cranston-Gonzalez National Affordable
    Housing Act. For complete classification of this Act to the Code,
    see Short Title note set out under section 12701 of this title and
    Tables.

-End-

-CITE-
    42 USC Sec. 12704                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER I - GENERAL PROVISIONS AND POLICIES

-HEAD-
    Sec. 12704. Definitions

-STATUTE-
      As used in this subchapter and in subchapter II of this chapter:
        (1) The term "unit of general local government" means a city,
      town, township, county, parish, village, or other general purpose
      political subdivision of a State; the Federated States of
      Micronesia and Palau, the Marshall Islands, or a general purpose
      political subdivision thereof; a consortium of such political
      subdivisions recognized by the Secretary in accordance with
      section 12746(2) of this title; and any agency or instrumentality
      thereof that is established pursuant to legislation and
      designated by the chief executive to act on behalf of the
      jurisdiction with regard to provisions of this Act.
        (2) The term "State" means any State of the United States, the
      District of Columbia, the Commonwealth of Puerto Rico, or any
      agency or instrumentality thereof that is established pursuant to
      legislation and designated by the chief executive officer to act
      on behalf of the State with regard to the provisions of this Act.
        (3) The term "jurisdiction" means a State or unit of general
      local government.
        (4) The term "participating jurisdiction" means any State or
      unit of general local government that has been so designated in
      accordance with section 12746 of this title.
        (5) The term "nonprofit organization" means any private,
      nonprofit organization (including a State or locally chartered,
      nonprofit organization) that - 
          (A) is organized under State or local laws,
          (B) has no part of its net earnings inuring to the benefit of
        any member, founder, contributor, or individual,
          (C) complies with standards of financial accountability
        acceptable to the Secretary, and
          (D) has among its purposes significant activities related to
        the provision of decent housing that is affordable to low-
        income and moderate-income persons.

        (6) The term "community housing development organization" means
      a nonprofit organization as defined in paragraph (5), that - 
          (A) has among its purposes the provision of decent housing
        that is affordable to low-income and moderate-income persons;
          (B) maintains, through significant representation on the
        organization's governing board and otherwise, accountability to
        low-income community residents and, to the extent practicable,
        low-income beneficiaries with regard to decisions on the
        design, siting, development, and management of affordable
        housing;
          (C) has a demonstrated capacity for carrying out activities
        assisted under this Act; and
          (D) has a history of serving the local community or
        communities within which housing to be assisted under this Act
        is to be located.

      In the case of an organization serving more than one county, the
      Secretary may not require that such organization, to be
      considered a community housing development organization for
      purposes of this Act, include as members on the organization's
      governing board low-income persons residing in each county
      served.
        (7) The term "government-sponsored mortgage finance
      corporations" means the Federal National Mortgage Association,
      the Federal Home Loan Mortgage Corporation, and the Federal
      Agricultural Mortgage Corporation.
        (8) The term "housing" includes manufactured housing and
      manufactured housing lots and elder cottage housing opportunity
      units that are small, free-standing, barrier-free, energy-
      efficient, removable, and designed to be installed adjacent to
      existing 1- to 4-family dwellings.
        (9) The term "very low-income families" means low-income
      families whose incomes do not exceed 50 percent of the median
      family income for the area, as determined by the Secretary with
      adjustments for smaller and larger families, except that the
      Secretary may establish income ceilings higher or lower than 50
      percent of the median for the area on the basis of the
      Secretary's findings that such variations are necessary because
      of prevailing levels of construction costs or fair market rents,
      or unusually high or low family incomes.
        (10) The term "low-income families" means families whose
      incomes do not exceed 80 percent of the median income for the
      area, as determined by the Secretary with adjustments for smaller
      and larger families, except that the Secretary may establish
      income ceilings higher or lower than 80 percent of the median for
      the area on the basis of the Secretary's findings that such
      variations are necessary because of prevailing levels of
      construction costs or fair market rents, or unusually high or low
      family incomes.
        (11) The term "families" has the same meaning given that term
      by section 1437a of this title.
        (12) The term "security" has the same meaning as in section 77b
      of title 15.
        (13) The term "displaced homemaker" means an individual who - 
          (A) is an adult;
          (B) has not worked full-time full-year in the labor force for
        a number of years but has, during such years, worked primarily
        without remuneration to care for the home and family; and
          (C) is unemployed or underemployed and is experiencing
        difficulty in obtaining or upgrading employment.

        (14) The term "first-time homebuyer" means an individual and
      his or her spouse who have not owned a home during the 3-year
      period prior to purchase of a home with assistance under
      subchapter II of this chapter, except that - 
          (A) any individual who is a displaced homemaker may not be
        excluded from consideration as a first-time homebuyer under
        this paragraph on the basis that the individual, while a
        homemaker, owned a home with his or her spouse or resided in a
        home owned by the spouse;
          (B) any individual who is a single parent may not be excluded
        from consideration as a first-time homebuyer under this
        paragraph on the basis that the individual, while married,
        owned a home with his or her spouse or resided in a home owned
        by the spouse; and
          (C) an individual shall not be excluded from consideration as
        a first-time homebuyer under this paragraph on the basis that
        the individual owns or owned, as a principal residence during
        such 3-year period, a dwelling unit whose structure is - 
            (i) not permanently affixed to a permanent foundation in
          accordance with local or other applicable regulations, or
            (ii) not in compliance with State, local, or model building
          codes, or other applicable codes, and cannot be brought into
          compliance with such codes for less than the cost of
          constructing a permanent structure.

        (15) The term "single parent" means an individual who - 
          (A) is unmarried or legally separated from a spouse; and
          (B)(i) has 1 or more minor children for whom the individual
        has custody or joint custody; or
          (ii) is pregnant.

        (16) The term "Secretary" means the Secretary of Housing and
      Urban Development, unless otherwise specified in this Act.
        (17) The term "substantial rehabilitation" means the
      rehabilitation of residential property at an average cost in
      excess of $25,000 per dwelling unit.
        (18) The term "public housing agency" has the meaning given the
      term in section 1437a(b) of this title.
        (19) The term "metropolitan city" has the meaning given the
      term in section 5302(a)(4) of this title.
        (20) The term "urban county" has the meaning given the term in
      section 5302(a)(6) of this title.
        (21) The term "certification" means a written assertion, based
      on supporting evidence, which shall be kept available for
      inspection by the Secretary, the Inspector General and the
      public, which assertion shall be deemed to be accurate for
      purposes of this Act, unless the Secretary determines otherwise
      after inspecting the evidence and providing due notice and
      opportunity for comment.
        (23) (!1) The term "to demonstrate to the Secretary" means to
      submit to the Secretary a written assertion together with
      supporting evidence that, in the determination of the Secretary,
      supports the accuracy of the assertion.

        (24) (!2) The term "insular area" means any of the following:
      Guam, the Northern Mariana Islands, the Virgin Islands, and
      American Samoa.

        (24) (!2) The term "energy efficient mortgage" means a mortgage
      that provides financing incentives for the purchase of energy
      efficient homes, or that provides financing incentives to make
      energy efficiency improvements in existing homes by incorporating
      the cost of such improvements in the mortgage.
        (25) The term "energy efficient mortgage" means a mortgage that
      provides financing incentives for the purchase of energy
      efficient homes, or that provides financing incentives to make
      energy efficiency improvements in existing homes by incorporating
      the cost of such improvements in the mortgage.

-SOURCE-
    (Pub. L. 101-625, title I, Sec. 104, Nov. 28, 1990, 104 Stat. 4085;
    Pub. L. 102-229, title I, Dec. 12, 1991, 105 Stat. 1709; Pub. L.
    101-230, Sec. 2, Dec. 12, 1991, 105 Stat. 1720; Pub. L. 102-486,
    title I, Sec. 105(a), Oct. 24, 1992, 106 Stat. 2792; Pub. L. 102-
    550, title II, Secs. 211(a)(1), 217(a), 218, 219, title IX, Sec.
    914(a), Oct. 28, 1992, 106 Stat. 3756, 3760, 3761, 3877; Pub. L.
    103-233, title II, Sec. 201, Apr. 11, 1994, 108 Stat. 363.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This Act, referred to in pars. (1), (2), (6), (16), and (21), is
    Pub. L. 101-625, Nov. 28, 1990, 104 Stat. 4079, as amended, known
    as the Cranston-Gonzalez National Affordable Housing Act. For
    complete classification of this Act to the Code, see Short Title
    note set out under section 12701 of this title and Tables.

-MISC1-
                                AMENDMENTS                            
      1994 - Par. (2). Pub. L. 103-233 struck out "and" after
    "Columbia," and inserted before period at end ", or any agency or
    instrumentality thereof that is established pursuant to legislation
    and designated by the chief executive officer to act on behalf of
    the State with regard to the provisions of this Act".
      1992 - Par. (1). Pub. L. 102-550, Sec. 211(a)(1), amended this
    section to read as if amendment made by Pub. L. 102-230, Sec. 2(1),
    had not been enacted. See 1991 Amendment note below.
      Par. (6). Pub. L. 102-550, Sec. 217(a), inserted concluding
    provisions.
      Par. (8). Pub. L. 102-550, Sec. 218, inserted before period at
    end "and elder cottage housing opportunity units that are small,
    free-standing, barrier-free, energy-efficient, removable, and
    designed to be installed adjacent to existing 1- to 4-family
    dwellings".
      Par. (14)(C). Pub. L. 102-550, Sec. 219, added subpar. (C).
      Par. (24). Pub. L. 102-550, Sec. 211(a)(1), amended this section
    to read as if amendment made by Pub. L. 102-230, Sec. 2(2), had not
    been enacted. See 1991 Amendment note below.
      Pub. L. 102-486 added par. (24) defining "energy efficient
    mortgage".
      Par. (25). Pub. L. 102-550, Sec. 914(a), added par. (25).
      1991 - Par. (1). Pub. L. 102-230, Sec. 2(1), directed the
    substitution of "the insular areas" for "Guam, the Northern Mariana
    Islands, the Virgin Islands, American Samoa, the Federated States
    of Micronesia and Palau, the Marshall Islands". See 1992 Amendment
    note above.
      Pub. L. 102-229 struck out "Guam, the Northern Mariana Islands,
    the Virgin Islands, American Samoa," after "of a State;".
      Par. (24). Pub. L. 102-230, Sec. 2(2), directed the addition of a
    par. (24) to read as follows: "(24) The term 'insular areas' means
    Guam, the Northern Mariana Islands, the United States Virgin
    Islands, and American Samoa." See 1992 Amendment note above.
      Pub. L. 102-229 added par. (24) defining "insular area".

                     EFFECTIVE DATE OF 1994 AMENDMENT                 
      Amendment by Pub. L. 103-233 applicable with respect to any
    amounts made available to carry out subchapter II (Sec. 12721 et
    seq.) of this chapter after Apr. 11, 1994, and any amounts made
    available to carry out that subchapter before that date that remain
    uncommitted on that date, with Secretary to issue any regulations
    necessary to carry out such amendment not later than end of 45-day
    period beginning on that date, see section 209 of Pub. L. 103-233,
    set out as a note under section 5301 of this title.

                     EFFECTIVE DATE OF 1992 AMENDMENT                 
      Section 211(b) of Pub. L. 102-550 provided that: "The amendments
    made by subsection (a) [amending this section and section 12747 of
    this title] shall apply with respect to fiscal year 1993 and
    thereafter."
      Section 223 of title II of Pub. L. 102-550 provided that: "The
    amendments made by this title [enacting section 12810 of this title
    and amending this section and sections 12705, 12724, 12742, 12745
    to 12748, 12750, 12771, 12773, 12774, 12782, and 12784 of this
    title] shall apply to unexpended funds allocated under title II of
    the Cranston-Gonzalez National Affordable Housing Act [42 U.S.C.
    12721 et seq.] in fiscal year 1992, except as otherwise
    specifically provided."

                                REGULATIONS                            
      Section 222 of title II of Pub. L. 102-550 provided that: "The
    Secretary of Housing and Urban Development shall issue any final
    regulations necessary to implement the provisions of this title
    [enacting section 12810 of this title, amending this section and
    sections 12705, 12724, 12742, 12745 to 12748, 12750, 12771, 12773,
    12774, 12782, and 12784 of this title, and enacting provisions set
    out as notes under this section and sections 12746, 12747, and
    12750 of this title] and the amendments made by this title not
    later than the expiration of the 180-day period beginning on the
    date of the enactment of this Act [Oct. 28, 1992], except as
    expressly provided otherwise in this title and the amendments made
    by this title. Such regulations shall be issued after notice and
    opportunity for public comment pursuant to the provisions of
    section 553 of title 5, United States Code (notwithstanding
    subsections (a)(2), (b)(B), and (d)(3) of such section)."

                              TRANSITION RULE                          
      Section 217(b) of Pub. L. 102-550 provided that: "For the
    purposes of determining compliance with the requirements of section
    104(6) of the Cranston-Gonzalez National Affordable Housing Act [42
    U.S.C. 12704(6)], the Secretary of Housing and Urban Development
    may provide an exception for organizations that meet the definition
    of community housing development organization, except for
    significant representation of low-income community residents on the
    board, if such organization fulfills such requirement within 6
    months of receiving funds under title II of such Act [42 U.S.C.
    12721 et seq.] or September 30, 1993, whichever is sooner."

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

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

-End-

-CITE-
    42 USC Sec. 12705                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER I - GENERAL PROVISIONS AND POLICIES

-HEAD-
    Sec. 12705. State and local housing strategies

-STATUTE-
    (a) In general
      The Secretary shall provide assistance directly to a jurisdiction
    only if - 
        (1) the jurisdiction submits to the Secretary a comprehensive
      housing affordability strategy (hereafter in this section
      referred to as the "housing strategy");
        (2) the jurisdiction submits annual updates of the housing
      strategy; and
        (3) the housing strategy, and any annual update of such
      strategy, is approved by the Secretary.

    The Secretary shall establish such dates and manner for the
    submission and approval of housing strategies under this section
    that the Secretary determines will facilitate orderly program
    management by jurisdictions and provide for timely investment or
    other use of funds made available under subchapter II of this
    chapter and other programs requiring submission of a housing
    strategy. If the Secretary finds there is good cause, the Secretary
    may provide reasonable extensions of any deadlines for submission
    of a jurisdiction's housing strategy.
    (b) Contents
      A housing strategy submitted under this section shall be in a
    form that the Secretary determines to be appropriate for the
    assistance the jurisdiction may be provided and shall - 
        (1) describe the jurisdiction's estimated housing needs
      projected for the ensuing 5-year period, and the jurisdiction's
      need for assistance for very low-income, low-income, and moderate-
      income families, specifying such needs for different types of
      tenure and for different categories of residents, such as very
      low-income, low-income, and moderate-income families, the
      elderly, persons with disabilities, single persons, large
      families, residents of nonmetropolitan areas, families who are
      participating in an organized program to achieve economic
      independence and self-sufficiency, persons with acquired
      immunodeficiency syndrome, victims of domestic violence, dating
      violence, sexual assault, and stalking and other categories of
      persons residing in or expected to reside in the jurisdiction
      that the Secretary determines to be appropriate;
        (2) describe the nature and extent of homelessness, including
      rural homelessness, within the jurisdiction, providing an
      estimate of the special needs of various categories of persons
      who are homeless or threatened with homelessness, including
      tabular representation of such information, and a description of
      the jurisdiction's strategy for (A) helping low-income families
      avoid becoming homeless; (B) addressing the emergency shelter and
      transitional housing needs of homeless persons (including a brief
      inventory of facilities and services that meet such needs within
      that jurisdiction); and (C) helping homeless persons make the
      transition to permanent housing and independent living;
        (3) describe the significant characteristics of the
      jurisdiction's housing market, indicating how those
      characteristics will influence the use of funds made available
      for rental assistance, production of new units, rehabilitation of
      old units, or acquisition of existing units;
        (4) explain whether the cost of housing or the incentives to
      develop, maintain, or improve affordable housing in the
      jurisdiction are affected by public policies, particularly by
      policies of the jurisdiction, including tax policies affecting
      land and other property, land use controls, zoning ordinances,
      building codes, fees and charges, growth limits, and policies
      that affect the return on residential investment, and describe
      the jurisdiction's strategy to remove or ameliorate negative
      effects, if any, of such policies, except that, if a State
      requires a unit of general local government to submit a
      regulatory barrier assessment that is substantially equivalent to
      the information required under this paragraph, as determined by
      the Secretary, the unit of general local government may submit
      its assessment submitted to the State to the Secretary and shall
      be considered to have complied with this paragraph;
        (5) explain the institutional structure, including private
      industry, nonprofit organizations, and public institutions,
      through which the jurisdiction will carry out its housing
      strategy, assessing the strengths and gaps in that delivery
      system and describing what the jurisdiction will do to overcome
      those gaps;
        (6) indicate resources from private and non-Federal public
      sources that are reasonably expected to be made available to
      carry out the purposes of this Act, explaining how funds made
      available will leverage those additional resources and
      identifying, where the jurisdiction deems it appropriate,
      publicly owned land or property located within the jurisdiction
      that may be utilized to carry out the purposes of this Act;
        (7) set forth the jurisdiction's plan for investment or other
      use of housing funds made available under subchapter II of this
      chapter, the United States Housing Act of 1937 [42 U.S.C. 1437 et
      seq.], the Housing and Community Development Act of 1974, and the
      McKinney-Vento Homeless Assistance Act [42 U.S.C. 11301 et seq.],
      during the ensuing year or such longer period as the Secretary
      determines to be appropriate, indicating the general priorities
      for allocating investment geographically within the jurisdiction
      and among different activities and housing needs;
        (8) describe how the jurisdiction's plan will address the
      housing needs identified pursuant to subparagraphs (!1) (1) and
      (2), describe the reasons for allocation priorities, and identify
      any obstacles to addressing underserved needs;

        (9) describe the means of cooperation and coordination among
      the State and any units of general local government in the
      development, submission, and implementation of their housing
      strategies;
        (10) in the case of a unit of local government, describe the
      number of public housing units in the jurisdiction, the physical
      condition of such units, the restoration and revitalization needs
      of public housing projects within the jurisdiction, the public
      housing agency's strategy for improving the management and
      operation of such public housing, and the public housing agency's
      strategy for improving the living environment of low- and very-
      low-income families residing in public housing;
        (11) describe the manner in which the plan of the jurisdiction
      will help address the needs of public housing;
        (12) in the case of a State, describe the strategy to
      coordinate the Low-Income Tax Credit with development of housing,
      including public housing, that is affordable to very low-income
      and low-income families;
        (13) describe the jurisdiction's activities to encourage public
      housing residents to become more involved in management and
      participate in homeownership;
        (14) describe the standards and procedures according to which
      the jurisdiction will monitor activities authorized under this
      Act and ensure long-term compliance with the provisions of this
      Act;
        (15) include a certification that the jurisdiction will
      affirmatively further fair housing;
        (16) include a certification that the jurisdiction has in
      effect and is following a residential antidisplacement and
      relocation assistance plan that, in any case of any such
      displacement in connection with any activity assisted with
      amounts provided under subchapter II of this chapter, requires
      the same actions and provides the same rights as required and
      provided under a residential antidisplacement and relocation
      assistance plan under section 104(d) of the Housing and Community
      Development Act of 1974 [42 U.S.C. 5304(d)] in the event of
      displacement in connection with a development project assisted
      under section 106 or 119 of such Act [42 U.S.C. 5306, 5318];
        (17) estimate the number of housing units within the
      jurisdiction that are occupied by low-income families or very low-
      income families and that contain lead-based paint hazards, as
      defined in section 4851b of this title, outline the actions
      proposed or being taken to evaluate and reduce lead-based paint
      hazards, and describe how lead-based paint hazard reduction will
      be integrated into housing policies and programs;
        (18) include the number of families to whom the jurisdiction
      will provide affordable housing as defined in section 12745 of
      this title using funds made available;
        (19) for any housing strategy submitted for fiscal year 1994 or
      any fiscal year thereafter and taking into consideration factors
      over which the jurisdiction has control, describe the
      jurisdiction's goals, programs, and policies for reducing the
      number of households with incomes below the poverty line (as
      defined by the Office of Management and Budget and revised
      annually), and, in consultation with other appropriate public and
      private agencies, state how the jurisdiction's goals, programs,
      and policies for producing and preserving affordable housing set
      forth in the housing strategy will be coordinated with other
      programs and services for which the jurisdiction is responsible
      and the extent to which they will reduce (or assist in reducing)
      the number of households with incomes below the poverty line; and
        (20) describe the jurisdictions activities to enhance
      coordination between public and assisted housing providers and
      private and governmental health, mental health, and service
      agencies.

    The Secretary may provide for the submission of abbreviated housing
    strategies by jurisdictions that are not otherwise expected to be
    participating jurisdictions under subchapter II of this chapter.
    Such an abbreviated housing strategy shall be appropriate to the
    types and amounts of assistance the jurisdiction is to receive as
    determined by the Secretary.
    (c) Approval
      (1) In general
        The Secretary shall review the housing strategy upon receipt.
      Not later than 60 days after receipt by the Secretary, the
      housing strategy shall be approved unless the Secretary
      determines before that date that (A) the housing strategy is
      inconsistent with the purposes of this Act, or (B) the
      information described in subsection (b) of this section has not
      been provided in a substantially complete manner. For the purpose
      of the preceding sentence, the adoption or continuation of a
      public policy identified pursuant to subsection (b)(4) of this
      section shall not be a basis for the Secretary's disapproval of a
      housing strategy. During the 18-month period following November
      28, 1990, the Secretary may extend the review period to not
      longer than 90 days.
      (2) Actions in case of disapproval
        If the Secretary disapproves the housing strategy, the
      Secretary shall immediately notify the jurisdiction of such
      disapproval. Not later than 15 days after the Secretary's
      disapproval, the Secretary shall inform the jurisdiction in
      writing of (A) the reasons for disapproval, and (B) actions that
      the jurisdiction could take to meet the criteria for approval. If
      the Secretary fails to inform the jurisdiction of the reasons for
      disapproval within such 15-day period, the housing strategy shall
      be deemed to have been approved.
      (3) Amendments and resubmission
        The Secretary shall, for a period of not less than 45 days
      following the date of first disapproval, permit amendments to, or
      the resubmission of, any housing strategy that is disapproved.
      The Secretary shall approve or disapprove a housing strategy not
      less than 30 days after receipt of such amendments or
      resubmission.
    (d) Coordination of State and local housing strategies
      The Secretary may establish such requirements as the Secretary
    deems appropriate to encourage coordination between and among the
    housing strategies of a State and any participating jurisdictions
    within the State, except that a unit of general local government
    shall not be required to have elements of its housing strategy
    approved by the State.
    (e) Consultation with social service agencies
      (1) In general
        When preparing a housing strategy for submission under this
      section, a jurisdiction shall make reasonable efforts to confer
      with appropriate social service agencies regarding the housing
      needs of children, elderly persons, persons with disabilities,
      homeless persons, and other persons served by such agencies.
      (2) Lead-based paint hazards
        When preparing that portion of a housing strategy required by
      subsection (b)(16) of this section, a jurisdiction shall consult
      with State or local health and child welfare agencies and examine
      existing data related to lead-based paint hazards and poisonings,
      including health department data on the addresses of housing
      units in which children have been identified as lead poisoned.
    (f) Barrier removal
      Not later than 4 months after completion of the final report of
    the Secretary's Advisory Commission on Regulatory Barriers to
    Affordable Housing, the Secretary shall submit to the Congress a
    written report outlining the Secretary's recommendations for
    legislative and administrative actions to facilitate the removal or
    modification of excessive, duplicative, or unnecessary regulations
    or other requirements of Federal, State, or local governments that
    (1) inflate the costs of or otherwise inhibit the construction,
    rehabilitation, or management of housing, particularly housing that
    otherwise could be affordable to low-income and moderate-income
    families, or (2) contribute to economic or racial discrimination.
    (g) Treatment of troubled public housing agencies
      (1) Effect of troubled status on CHAS
        The comprehensive housing affordability strategy (or any
      consolidated plan incorporating such strategy) for the State or
      unit of general local government in which any troubled public
      housing agency is located shall not be considered to comply with
      the requirements under this section unless such plan includes a
      description of the manner in which the State or unit will provide
      financial or other assistance to such troubled agency in
      improving its operations to remove such designation.
      (2) Definition
        For purposes of this subsection, the term "troubled public
      housing agency" means a public housing agency that, upon the
      effective date of the Quality Housing and Work Responsibility Act
      of 1998, is designated under section 6(j)(2) of the United States
      Housing Act of 1937 [42 U.S.C. 1437d(j)(2)] as a troubled public
      housing agency.

-SOURCE-
    (Pub. L. 101-625, title I, Sec. 105, Nov. 28, 1990, 104 Stat. 4088;
    Pub. L. 102-550, title II, Sec. 220, title VI, Sec. 681, title X,
    Sec. 1014, title XII, Sec. 1206, Oct. 28, 1992, 106 Stat. 3761,
    3830, 3908, 3940; Pub. L. 105-276, title V, Secs. 568, 583, Oct.
    21, 1998, 112 Stat. 2634, 2644; Pub. L. 106-400, Sec. 2, Oct. 30,
    2000, 114 Stat. 1675; Pub. L. 109-162, title VI, Sec. 604, Jan. 5,
    2006, 119 Stat. 3040.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This Act, referred to in subsecs. (b)(6), (14) and (c)(1), is
    Pub. L. 101-625, Nov. 28, 1990, 104 Stat. 4079, known as the
    Cranston-Gonzalez National Affordable Housing Act. For complete
    classification of this Act to the Code, see Short Title note set
    out under section 12701 of this title and Tables.
      The United States Housing Act of 1937, referred to in subsec.
    (b)(7), is act Sept. 1, 1937, ch. 896, as revised generally by Pub.
    L. 93-383, title II, Sec. 201(a), Aug. 22, 1974, 88 Stat. 653,
    which is classified generally to chapter 8 (Sec. 1437 et seq.) of
    this title. For complete classification of this Act to the Code,
    see Short Title note set out under section 1437 of this title and
    Tables.
      The Housing and Community Development Act of 1974, referred to in
    subsec. (b)(7), is Pub. L. 93-383, Aug. 22, 1974, 88 Stat. 633, as
    amended. For complete classification of this Act to the Code, see
    Short Title note set out under section 5301 of this title and
    Tables.
      The McKinney-Vento Homeless Assistance Act, referred to in
    subsec. (b)(7), is Pub. L. 100-77, July 22, 1987, 101 Stat. 482, as
    amended, which is classified principally to chapter 119 (Sec. 11301
    et seq.) of this title. For complete classification of this Act to
    the Code, see Short Title note set out under section 11301 of this
    title and Tables.
      The effective date of the Quality Housing and Work Responsibility
    Act of 1998, referred to in subsec. (g)(2), probably means the
    general effective date for title V of Pub. L. 105-276, included in
    section 503 of Pub. L. 105-276 which is set out as an Effective
    Date of 1998 Amendment note under section 1437 of this title.

-MISC1-
                                AMENDMENTS                            
      2006 - Subsec. (b)(1). Pub. L. 109-162 inserted "victims of
    domestic violence, dating violence, sexual assault, and stalking"
    after "immunodeficiency syndrome,".
      2000 - Subsec. (b)(7). Pub. L. 106-400 substituted "McKinney-
    Vento Homeless Assistance Act" for "Stewart B. McKinney Homeless
    Assistance Act".
      1998 - Subsec. (b). Pub. L. 105-276, Sec. 583(1), transferred
    flush provisions relating to abbreviated housing strategies to end
    of subsection to follow last numbered paragraph.
      Subsec. (b)(11) to (15). Pub. L. 105-276, Sec. 583(6), (7), added
    par. (11) and redesignated former pars. (11) to (14) as (12) to
    (15), respectively. Former par. (15) redesignated (16).
      Subsec. (b)(16). Pub. L. 105-276, Sec. 583(6), redesignated par.
    (15) as (16). Former par. (16), relating to housing units that
    contain lead-based paint hazards, redesignated (17), and former
    par. (16), relating to number of families to whom jurisdiction will
    provide affordable housing, redesignated (18).
      Pub. L. 105-276, Sec. 583(5)(A), substituted "programs;" for
    "programs." in par. (16) relating to housing units that contain
    lead-based paint hazards.
      Pub. L. 105-276, Sec. 583(4)(A), struck out "and" at end of par.
    (16) relating to number of families to whom jurisdiction will
    provide affordable housing.
      Subsec. (b)(17). Pub. L. 105-276, Sec. 583(5)(B), redesignated
    par. (16), relating to housing units that contain lead-based paint
    hazards, as (17). Former par. (17), relating to reducing the number
    of households within a jurisdiction with incomes below the poverty
    line, redesignated (19), and former par. (17), relating to
    activities to enhance coordination, redesignated (20).
      Subsec. (b)(18). Pub. L. 105-276, Sec. 583(4)(B), redesignated
    par. (16), relating to number of families to whom jurisdiction will
    provide affordable housing, as (18).
      Subsec. (b)(19). Pub. L. 105-276, Sec. 583(3), redesignated par.
    (17), relating to reducing the number of households within a
    jurisdiction with incomes below the poverty line, as (19).
      Subsec. (b)(20). Pub. L. 105-276, Sec. 583(2), redesignated par.
    (17), relating to activities to enhance coordination, as (20).
      Subsec. (g). Pub. L. 105-276, Sec. 568, added subsec. (g).
      1992 - Subsec. (b)(1). Pub. L. 102-550, Sec. 681(1), inserted
    "persons with disabilities," after "the elderly,".
      Subsec. (b)(2). Pub. L. 102-550, Sec. 220(a), inserted ",
    including rural homelessness," after "extent of homelessness" and
    "including tabular representation of such information," after "with
    homelessness,".
      Subsec. (b)(4). Pub. L. 102-550, Sec. 1206, inserted before
    semicolon at end ", except that, if a State requires a unit of
    general local government to submit a regulatory barrier assessment
    that is substantially equivalent to the information required under
    this paragraph, as determined by the Secretary, the unit of general
    local government may submit its assessment submitted to the State
    to the Secretary and shall be considered to have complied with this
    paragraph".
      Subsec. (b)(8). Pub. L. 102-550, Sec. 220(c)(2), added par. (8).
    Former par. (8) redesignated (9).
      Subsec. (b)(9) to (13). Pub. L. 102-550, Sec. 220(c)(1),
    redesignated pars. (8) to (12) as (9) to (13), respectively. Former
    par. (13) redesignated (14).
      Subsec. (b)(14). Pub. L. 102-550, Sec. 220(c)(1), redesignated
    par. (13) as (14). Former par. (14) redesignated (15).
      Pub. L. 102-550, Sec. 220(b)(1), added par. (14) and struck out
    former par. (14) which read as follows: "include a certification
    that the jurisdiction is in compliance with a residential
    antidisplacement and relocation assistance plan under section
    104(d) of the Housing and Community Development Act of 1974 (to the
    extent that such a plan applies to the jurisdiction); and".
      Subsec. (b)(15). Pub. L. 102-550, Sec. 220(c)(1), redesignated
    par. (14) as (15). Former par. (15) redesignated (16).
      Subsec. (b)(16). Pub. L. 102-550, Sec. 1014(3), added par. (16)
    relating to housing units that contain lead-based paint hazards.
      Pub. L. 102-550, Sec. 220(c)(1), redesignated par. (15) as (16).
    Former par. (16) redesignated (17).
      Pub. L. 102-550, Sec. 220(b)(3), added at end par. (16) relating
    to reducing the number of households within a jurisdiction with
    incomes below the poverty line.
      Subsec. (b)(17). Pub. L. 102-550, Sec. 681(2), which directed
    amendment of subsec. (b) by adding "after paragraph (16), as added
    by the preceding provisions of this Act", a new par. (17) relating
    to activities to enhance coordination, was executed by adding that
    par. (17) after par. (17) (formerly par. (16), relating to reducing
    the number of households within a jurisdiction with incomes below
    the poverty line, to reflect the probable intent of Congress.
      Pub. L. 102-550, Sec. 220(c)(1), redesignated par. (16), relating
    to reducing the number of households within a jurisdiction with
    incomes below the poverty line, as (17).
      Subsec. (e). Pub. L. 102-550, Sec. 1014(4), designated existing
    provisions as par. (1), inserted heading, and added par. (2).

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Amendment by title V of Pub. L. 105-276 effective and applicable
    beginning upon Oct. 1, 1999, except as otherwise provided, with
    provision that Secretary may implement amendment before such date,
    except to extent that such amendment provides otherwise, and with
    savings provision, see section 503 of Pub. L. 105-276, set out as a
    note under section 1437 of this title.

                     EFFECTIVE DATE OF 1992 AMENDMENT                 
      Amendment by section 220 of Pub. L. 102-550 applicable to
    unexpended funds allocated under subchapter II of this chapter in
    fiscal year 1992, except as otherwise specifically provided, see
    section 223 of Pub. L. 102-550, set out as a note under section
    12704 of this title.
      Amendment by subtitles B through F of title VI [Secs. 621-685] of
    Pub. L. 102-550 applicable upon expiration of 6-month period
    beginning Oct. 28, 1992, except as otherwise provided, see section
    13642 of this title.

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

-End-

-CITE-
    42 USC Sec. 12705a                                          01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER I - GENERAL PROVISIONS AND POLICIES

-HEAD-
    Sec. 12705a. Purposes of Removal of Regulatory Barriers to
      Affordable Housing Act

-STATUTE-
      The purposes of sections 12705a to 12705d of this title are - 
        (1) to encourage State and local governments to further
      identify and remove regulatory barriers to affordable housing
      (including barriers that are excessive, unnecessary, duplicative,
      or exclusionary) that significantly increase housing costs and
      limit the supply of affordable housing; and
        (2) to strengthen the connection between Federal housing
      assistance and State and local efforts to identify and eliminate
      regulatory barriers.

-SOURCE-
    (Pub. L. 102-550, title XII, Sec. 1202, Oct. 28, 1992, 106 Stat.
    3938.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Sections 12705a to 12705d of this title, referred to in text,
    were in the original "this title", meaning title XII of Pub. L. 102-
    550, Oct. 28, 1992, 106 Stat. 3938, known as the Removal of
    Regulatory Barriers to Affordable Housing Act of 1992, which
    enacted sections 12705a to 12705d of this title, amended sections
    5306 and 12705 of this title, and enacted provisions set out as a
    note below.

-COD-
                               CODIFICATION                           
      Section was enacted as part of the Removal of Regulatory Barriers
    to Affordable Housing Act of 1992, and also as part of the Housing
    and Community Development Act of 1992, and not as part of the
    Cranston-Gonzalez National Affordable Housing Act which comprises
    this chapter.

-MISC1-
                                SHORT TITLE                            
      Section 1201 of title XII of Pub. L. 102-550 provided that: "This
    title [enacting this section and sections 12705b to 12705d of this
    title, amending sections 5306 and 12705 of this title, and enacting
    provisions set out as a note below] may be cited as the 'Removal of
    Regulatory Barriers to Affordable Housing Act of 1992'."

                            REPORT BY SECRETARY                        
      Pub. L. 102-550, title XII, Sec. 1207, Oct. 28, 1992, 106 Stat.
    3941, provided that not later than 2 years after Oct. 28, 1992, the
    Secretary of Housing and Urban Development submit a report to
    Congress describing any successful State and local strategies for
    removal of barriers to affordable housing, assessing impact of
    identified regulatory barriers on housing patterns of minorities,
    and describing any strategies developed or implemented by
    Department of Housing and Urban Development for reducing barriers
    to affordable housing imposed by Federal Government, prior to
    repeal by Pub. L. 105-362, title VII, Sec. 701(b), Nov. 10, 1998,
    112 Stat. 3287.

-End-

-CITE-
    42 USC Sec. 12705b                                          01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER I - GENERAL PROVISIONS AND POLICIES

-HEAD-
    Sec. 12705b. Definition of regulatory barriers to affordable
      housing

-STATUTE-
      For purposes of sections 12705a to 12705d of this title, the
    terms "regulatory barriers to affordable housing" and "regulatory
    barriers" mean any public policies (including policies embodied in
    statutes, ordinances, regulations, or administrative procedures or
    processes) required to be identified by a jurisdiction in
    connection with its comprehensive housing affordability strategy
    under section 12705(b)(4) of this title. Such terms do not include
    policies relating to rents imposed on a structure by a jurisdiction
    or policies that have served to create or preserve, or can be shown
    to create or preserve, housing for low- and very low-income
    families, including displacement protections, demolition controls,
    replacement housing requirements, relocation benefits, housing
    trust funds, dedicated funding sources, waiver of local property
    taxes and builder fees, inclusionary zoning, rental zoning
    overlays, long-term use restrictions, and rights of first refusal.

-SOURCE-
    (Pub. L. 102-550, title XII, Sec. 1203, Oct. 28, 1992, 106 Stat.
    3938.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Sections 12705a to 12705d of this title, referred to in text,
    were in the original "this title", meaning title XII of Pub. L. 102-
    550, Oct. 28, 1992, 106 Stat. 3938, known as the Removal of
    Regulatory Barriers to Affordable Housing Act of 1992, which
    enacted sections 12705a to 12705d of this title, amended sections
    5306 and 12705 of this title, and enacted provisions set out as
    notes under section 12705a of this title.

-COD-
                               CODIFICATION                           
      Section was enacted as part of the Removal of Regulatory Barriers
    to Affordable Housing Act of 1992, and also as part of the Housing
    and Community Development Act of 1992, and not as part of the
    Cranston-Gonzalez National Affordable Housing Act which comprises
    this chapter.

-End-

-CITE-
    42 USC Sec. 12705c                                          01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER I - GENERAL PROVISIONS AND POLICIES

-HEAD-
    Sec. 12705c. Grants for regulatory barrier removal strategies and
      implementation

-STATUTE-
    (a) Funding
      There is authorized to be appropriated for grants under
    subsections (b) and (c) (!1) of this section such sums as may be
    necessary for each of fiscal years 2001, 2002, 2003, 2004, and
    2005.

    (b) Grant authority
      The Secretary may make grants to States and units of general
    local government (including consortia of such governments) for the
    costs of developing and implementing strategies to remove
    regulatory barriers to affordable housing, including the costs of -
    
        (1) identifying, assessing, and monitoring State and local
      regulatory barriers;
        (2) identifying State and local policies (including laws and
      regulations) that permit or encourage regulatory barriers;
        (3) developing legislation to provide State, local, or regional
      programs to reduce regulatory barriers and developing a strategy
      for adoption of such legislation;
        (4) developing model State or local standards and ordinances to
      reduce regulatory barriers and assisting in the adoption and use
      of the standards and ordinances;
        (5) carrying out the simplification and consolidation of
      administrative procedures and processes constituting regulatory
      barriers to affordable housing, including the issuance of
      permits; and
        (6) providing technical assistance and information to units of
      general local government for implementation of legislative and
      administrative reform programs to remove regulatory barriers to
      affordable housing.
    (c) Repealed. Pub. L. 106-569, title I, Sec. 102(c), Dec. 27, 2000,
      114 Stat. 2947
    (d) Definitions
      For purposes of this section, the terms "regulatory barriers to
    affordable housing" and "regulatory barriers" have the meaning
    given such terms in section 12705b of this title.
    (e) Application and selection
      The Secretary shall provide for the form and manner of
    applications for grants under this section, which shall describe
    how grant amounts will assist the State or unit of general local
    government in developing and implementing strategies to remove
    regulatory barriers to affordable housing. The Secretary shall
    establish criteria for approval of applications under this
    subsection and such criteria shall require that grant amounts be
    used in a manner consistent with the strategy contained in the
    comprehensive housing affordability strategy for the jurisdiction
    pursuant to section 12705(b)(4) of this title.
    (f) Selection of grantees
      To the extent amounts are made available to carry out this
    section, the Secretary shall provide grants on a competitive basis
    to eligible grantees based on the proposed uses of such amounts, as
    provided in applications under subsection (e) of this section.
    (g) Coordination with clearinghouse
      Each State and unit of general local government receiving a grant
    under this section, shall consult, coordinate, and exchange
    information with the clearinghouse established under section 12705d
    of this title.
    (h) Reports to Secretary
      Each State and unit of general local government receiving a grant
    under this section shall submit a report to the Secretary, not less
    than 12 months after receiving the grant, describing any activities
    carried out with the grant amounts. The report shall contain an
    assessment of the impact of any regulatory barriers identified by
    the grantee on the housing patterns of minorities.

-SOURCE-
    (Pub. L. 102-550, title XII, Sec. 1204, Oct. 28, 1992, 106 Stat.
    3938; Pub. L. 106-569, title I, Sec. 102(a)-(e), Dec. 27, 2000, 114
    Stat. 2946, 2947.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Subsection (c) of this section, referred to in subsec. (a), was
    repealed by Pub. L. 106-569, title I, Sec. 102(c), Dec. 27, 2000,
    114 Stat. 2947.

-COD-
                               CODIFICATION                           
      Section was enacted as part of the Removal of Regulatory Barriers
    to Affordable Housing Act of 1992, and also as part of the Housing
    and Community Development Act of 1992, and not as part of the
    Cranston-Gonzalez National Affordable Housing Act which comprises
    this chapter.
      Section is comprised of section 1204 of Pub. L. 102-550.
    Subsection (i) of section 1204 of Pub. L. 102-550 amended section
    5306 of this title.

-MISC1-
                                AMENDMENTS                            
      2000 - Subsec. (a). Pub. L. 106-569, Sec. 102(a), amended heading
    and text of subsec. (a) generally. Prior to amendment, text read as
    follows: "The amounts set aside under section 5307 of this title
    for the purpose of this subsection shall be available for grants
    under subsection (b) and (c) of this section."
      Subsec. (b). Pub. L. 106-569, Sec. 102(b)(1), (2), substituted
    "Grant authority" for "State grants" in heading and inserted "and
    units of general local government (including consortia of such
    governments)" after "States" in introductory provisions.
      Subsec. (b)(3). Pub. L. 106-569, Sec. 102(b)(3), substituted
    "State, local, or regional programs to reduce" for "a State program
    to reduce State and local".
      Subsec. (b)(4). Pub. L. 106-569, Sec. 102(b)(4), inserted "or
    local" after "State".
      Subsec. (b)(5). Pub. L. 106-569, Sec. 102(b)(5), struck out
    "State" before "administrative procedures".
      Subsec. (c). Pub. L. 106-569, Sec. 102(c), struck out heading and
    text of subsec. (c) which related to local grants.
      Subsec. (e). Pub. L. 106-569, Sec. 102(d), substituted "and such
    criteria shall require that grant amounts be used in a manner
    consistent with the strategy contained in the comprehensive housing
    affordability strategy for the jurisdiction pursuant to section
    12705(b)(4) of this title" for "and for the selection of units of
    general local government to receive grants under subsection (f)(2)
    of this section" before period at end.
      Subsec. (f). Pub. L. 106-569, Sec. 102(e), amended heading and
    text of subsec. (f) generally, substituting provisions relating to
    selection of grantees for provisions relating to allocation of
    amounts.

-FOOTNOTE-
    (!1) See References in Text note below.

-End-

-CITE-
    42 USC Sec. 12705d                                          01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER I - GENERAL PROVISIONS AND POLICIES

-HEAD-
    Sec. 12705d. Regulatory barriers clearinghouse

-STATUTE-
    (a) Establishment
      The Secretary of Housing and Urban Development shall establish a
    clearinghouse to serve as a national repository to receive,
    collect, process, assemble, and disseminate information regarding -
    
        (1) State and local laws, regulations, and policies affecting
      the development, maintenance, improvement, availability, or cost
      of affordable housing (including tax policies affecting land and
      other property, land use controls, zoning ordinances, building
      codes, fees and charges, growth limits, and policies that affect
      the return on investment in residential property), and the
      prevalence and effects on affordable housing of such laws,
      regulations, and policies;
        (2) State and local activities, strategies, and plans to remove
      or ameliorate the negative effects, if any, of such laws,
      regulations, and policies, including particularly innovative or
      successful activities, strategies, and plans; and
        (3) State and local strategies, activities and plans that
      promote affordable housing and housing desegregation, including
      particularly innovative or successful strategies, activities, and
      plans.
    (b) Functions
      The clearinghouse established under subsection (a) of this
    section shall - 
        (1) respond to inquiries from State and local governments,
      other organizations, and individuals requesting information
      regarding State and local laws, regulations, policies,
      activities, strategies, and plans described in subsection (a) of
      this section;
        (2) provide assistance in identifying, examining, and
      understanding such laws, regulations, policies, activities,
      strategies, and plans; and
        (3) by making available through a World Wide Web site of the
      Department, by electronic mail, or otherwise, provide to each
      housing agency of a unit of general local government that serves
      an area having a population greater than 100,000, an index of all
      State and local strategies and plans submitted under subsection
      (a) of this section to the clearinghouse, which - 
          (A) shall describe the types of barriers to affordable
        housing that the strategy or plan was designed to ameliorate or
        remove; and
          (B) shall, not later than 30 days after submission to the
        clearinghouse of any new strategy or plan, be updated to
        include the new strategy or plan submitted.
    (c) Organization
      The clearinghouse under this section shall be established within
    the Office of Policy Development of the Department of Housing and
    Urban Development and shall be under the direction of the Assistant
    Secretary for Policy Development and Research.
    (d) Timing
      The clearinghouse under this section (as amended by section 103
    of the Housing Affordability Barrier Removal Act of 2000) shall be
    established and commence carrying out the functions of the
    clearinghouse under this section not later than 1 year after
    December 27, 2000. The Secretary of Housing and Urban Development
    may comply with the requirements under this section by
    reestablishing the clearinghouse that was originally established to
    comply with this section and updating and improving such
    clearinghouse to the extent necessary to comply with the
    requirements of this section as in effect pursuant to the enactment
    of such Act.

-SOURCE-
    (Pub. L. 102-550, title XII, Sec. 1205, Oct. 28, 1992, 106 Stat.
    3940; Pub. L. 106-569, title I, Sec. 103, Dec. 27, 2000, 114 Stat.
    2947.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Housing Affordability Barrier Removal Act of 2000, referred
    to in subsec. (d), is title I of Pub. L. 106-569, Dec. 27, 2000,
    114 Stat. 2946. Section 103 of the Act amended this section. For
    complete classification of this Act to the Code, see Short Title of
    2000 Amendment note set out under section 12701 of this title and
    Tables.

-COD-
                               CODIFICATION                           
      Section was enacted as part of the Removal of Regulatory Barriers
    to Affordable Housing Act of 1992, and also as part of the Housing
    and Community Development Act of 1992, and not as part of the
    Cranston-Gonzalez National Affordable Housing Act which comprises
    this chapter.

-MISC1-
                                AMENDMENTS                            
      2000 - Subsec. (a). Pub. L. 106-569, Sec. 103(1)(A), substituted
    "serve as a national repository to receive, collect, process,
    assemble, and disseminate" for "receive, collect, process, and
    assemble" in introductory provisions.
      Subsec. (a)(1). Pub. L. 106-569, Sec. 103(1)(B), substituted
    "(including" for ", including" and inserted "), and the prevalence
    and effects on affordable housing of such laws, regulations, and
    policies" before semicolon at end.
      Subsec. (a)(2). Pub. L. 106-569, Sec. 103(1)(C), inserted before
    semicolon ", including particularly innovative or successful
    activities, strategies, and plans".
      Subsec. (a)(3). Pub. L. 106-569, Sec. 103(1)(D), inserted before
    period at end ", including particularly innovative or successful
    strategies, activities, and plans".
      Subsec. (b)(3). Pub. L. 106-569, Sec. 103(2), added par. (3).
      Subsecs. (c), (d). Pub. L. 106-569, Sec. 103(3), added subsecs.
    (c) and (d).

-End-

-CITE-
    42 USC Sec. 12706                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER I - GENERAL PROVISIONS AND POLICIES

-HEAD-
    Sec. 12706. Certification

-STATUTE-
      The Secretary shall, by regulation or otherwise, as deemed by the
    Secretary to be appropriate, require any application for housing
    assistance under subchapter II of this chapter, assistance under
    the Housing and Community Development Act of 1974, or assistance
    under the McKinney-Vento Homeless Assistance Act [42 U.S.C. 11301
    et seq.], to contain or be accompanied by a certification by an
    appropriate State or local public official that the proposed
    housing activities are consistent with the housing strategy of the
    jurisdiction to be served.

-SOURCE-
    (Pub. L. 101-625, title I, Sec. 106, Nov. 28, 1990, 104 Stat. 4091;
    Pub. L. 106-400, Sec. 2, Oct. 30, 2000, 114 Stat. 1675.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Housing and Community Development Act of 1974, referred to in
    text, is Pub. L. 93-383, Aug. 22, 1974, 88 Stat. 633, as amended.
    For complete classification of this Act to the Code, see Short
    Title note set out under section 5301 of this title and Tables.
      The McKinney-Vento Homeless Assistance Act, referred to in text,
    is Pub. L. 100-77, July 22, 1987, 101 Stat. 482, as amended, which
    is classified principally to chapter 119 (Sec. 11301 et seq.) of
    this title. For complete classification of this Act to the Code,
    see Short Title note set out under section 11301 of this title and
    Tables.

-MISC1-
                                AMENDMENTS                            
      2000 - Pub. L. 106-400 substituted "McKinney-Vento Homeless
    Assistance Act" for "Stewart B. McKinney Homeless Assistance Act".

-End-

-CITE-
    42 USC Sec. 12707                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER I - GENERAL PROVISIONS AND POLICIES

-HEAD-
    Sec. 12707. Citizen participation

-STATUTE-
    (a) In general
      Before submitting a housing strategy under this section,(!1) a
    jurisdiction shall - 

        (1) make available to its citizens, public agencies, and other
      interested parties information concerning the amount of
      assistance the jurisdiction expects to receive and the range of
      investment or other uses of such assistance that the jurisdiction
      may undertake;
        (2) publish a proposed housing strategy in a manner that, in
      the determination of the Secretary, affords affected citizens,
      public agencies, and other interested parties a reasonable
      opportunity to examine its content and to submit comments on the
      proposed housing strategy;
        (3) hold one or more public hearings to obtain the views of
      citizens, public agencies, and other interested parties on the
      housing needs of the jurisdiction; and
        (4) provide citizens, public agencies, and other interested
      parties with reasonable access to records regarding any uses of
      any assistance the jurisdiction may have received during the
      preceding 5 years.
    (b) Notice and comment
      Before submitting any performance report or substantial amendment
    to a housing strategy under this section,(!1) a participating
    jurisdiction shall provide citizens with reasonable notice of, and
    opportunity to comment on, such performance report or substantial
    amendment prior to its submission.
    (c) Consideration of comments
      A participating jurisdiction shall consider any comments or views
    of citizens in preparing a final housing strategy, amendment to a
    housing strategy or performance report for submission. A summary of
    such comments or views shall be attached when a housing strategy,
    amendment to a housing strategy or performance report is submitted.
    The submitted housing strategy, amendment, or report shall be made
    available to the public.
    (d) Regulations
      The Secretary shall by regulation establish procedures
    appropriate and practicable for providing a fair hearing and timely
    resolution of citizen complaints related to housing strategies or
    performance reports.

-SOURCE-
    (Pub. L. 101-625, title I, Sec. 107, Nov. 28, 1990, 104 Stat.
    4091.)

-FOOTNOTE-
    (!1) So in original. The words "this section" probably should be
         "section 12705 of this title".

-End-

-CITE-
    42 USC Sec. 12708                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER I - GENERAL PROVISIONS AND POLICIES

-HEAD-
    Sec. 12708. Compliance

-STATUTE-
    (a) Performance reports
      (1) In general
        Each participating jurisdiction shall annually review and
      report, in a form acceptable to the Secretary, on the progress it
      has made in carrying out its housing strategy, which report shall
      include an evaluation of the jurisdiction's progress in meeting
      its goal established in section 12705(b)(15) (!1) of this title,
      and information on the number and types of households served,
      including the number of very low-income, low-income, and moderate-
      income persons served and the racial and ethnic status of
      persons served that will be assisted with funds made available.

      (2) Submission
        The Secretary shall (A) establish dates for submission of
      reports under this subsection, and (B) review such reports and
      make such recommendations as the Secretary deems appropriate to
      carry out the purposes of this Act.
      (3) Failure to report
        If a jurisdiction fails to submit a report satisfactory to the
      Secretary in a timely manner, assistance to the jurisdiction
      under subchapter II of this chapter or the other programs
      referred to in section 12706 of this title may be - 
          (A) suspended until a report satisfactory to the Secretary is
        submitted; or
          (B) withdrawn and reallocated if the Secretary finds, after
        notice and opportunity for a hearing, that the jurisdiction
        will not submit a satisfactory report.
    (b) Performance review by Secretary
      (1) In general
        The Secretary shall ensure that activities of each jurisdiction
      required to submit a housing strategy under section 12705 of this
      title are reviewed not less frequently than annually. Such review
      shall include, insofar as practicable, on-site visits by
      employees of the Department of Housing and Urban Development and
      shall include an assessment of the jurisdiction's - 
          (A) management of funds made available under programs
        administered by the Secretary;
          (B) compliance with its housing strategy;
          (C) accuracy in the preparation of performance reports under
        subsection (a) of this section; and
          (D) efforts to ensure that housing assisted under programs
        administered by the Secretary are in compliance with
        contractual agreements and the requirements of law.
      (2) Report by Secretary
        The Secretary shall report on the performance review in
      writing. The Secretary shall give the jurisdiction not less than
      30 days to review and comment on the report. After taking into
      consideration the comments of the jurisdiction, the Secretary may
      revise the report and shall make the jurisdiction's comments and
      the report, with any revisions, readily available to the public
      within 30 days after receipt of the jurisdiction's comments.
    (c) Review by courts
      The adequacy of information submitted under section 12705(b)(4)
    of this title shall not be reviewable by any Federal, State, or
    other court. Review of a housing strategy by any Federal, State, or
    other court shall be limited to determining whether the process of
    development and the content of the strategy are in substantial
    compliance with the requirements of this Act. During the pendency
    of any action challenging the adequacy of a housing strategy or the
    action of the Secretary in approving a strategy, the court shall
    not have the authority to enjoin activities taken by the
    jurisdiction to implement an approved housing strategy. Any housing
    assisted during the pendency of such action shall not be subject to
    any order of the court resulting from such action.

-SOURCE-
    (Pub. L. 101-625, title I, Sec. 108, Nov. 28, 1990, 104 Stat.
    4092.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 12705(b)(15) of this title, referred to in subsec.
    (a)(1), was redesignated section 12705(b)(16) of this title by Pub.
    L. 102-550, title II, Sec. 220(c)(1), Oct. 28, 1992, 106 Stat.
    3762, and was subsequently redesignated section 12705(b)(18) of
    this title by Pub. L. 105-276, title V, Sec. 583(4)(A), Oct. 21,
    1998, 112 Stat. 2644.
      This Act, referred to in subsecs. (a)(2) and (c), is Pub. L. 101-
    625, Nov. 28, 1990, 104 Stat. 4079, known as the Cranston-Gonzalez
    National Affordable Housing Act. For complete classification of
    this Act to the Code, see Short Title note set out under section
    12701 of this title and Tables.

-FOOTNOTE-
    (!1) See References in Text note below.

-End-

-CITE-
    42 USC Sec. 12709                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER I - GENERAL PROVISIONS AND POLICIES

-HEAD-
    Sec. 12709. Energy efficiency standards

-STATUTE-
    (a) Establishment
      (1) In general
        The Secretary of Housing and Urban Development and the
      Secretary of Agriculture shall, not later than September 30,
      2006, jointly establish, by rule, energy efficiency standards for
      - 
          (A) new construction of public and assisted housing and
        single family and multifamily residential housing (other than
        manufactured homes) subject to mortgages insured under the
        National Housing Act [12 U.S.C. 1701 et seq.];
          (B) new construction of single family housing (other than
        manufactured homes) subject to mortgages insured, guaranteed,
        or made by the Secretary of Agriculture under title V of the
        Housing Act of 1949 [42 U.S.C. 1471 et seq.]; and
          (C) rehabilitation and new construction of public and
        assisted housing funded by HOPE VI revitalization grants under
        section 1437v of this title, where such standards are
        determined to be cost effective by the Secretary of Housing and
        Urban Development.
      (2) Contents
        Such standards shall meet or exceed the requirements of the
      Council of American Building Officials Model Energy Code, 1992
      (hereafter in this section referred to as "CABO Model Energy
      Code, 1992"), or, in the case of multifamily high rises, the
      requirements of the American Society of Heating, Refrigerating,
      and Air-Conditioning Engineers Standard 90.1-1989 (hereafter in
      this section referred to as "ASHRAE Standard 90.1-1989"), and,
      with respect to rehabilitation and new construction of public and
      assisted housing funded by HOPE VI revitalization grants under
      section 1437v of this title, the 2003 International Energy
      Conservation Code, and shall be cost-effective with respect to
      construction and operating costs on a life-cycle cost basis. In
      developing such standards, the Secretaries shall consult with an
      advisory task force composed of homebuilders, national, State,
      and local housing agencies (including public housing agencies),
      energy agencies, building code organizations and agencies, energy
      efficiency organizations, utility organizations, low-income
      housing organizations, and other parties designated by the
      Secretaries.
    (b) Model Energy Code
      If the Secretaries have not, by September 30, 2006, established
    energy efficiency standards under subsection (a) of this section,
    all new construction of housing specified in such subsection shall
    meet the requirements of CABO Model Energy Code, 1992, or, in the
    case of multifamily high rises, the requirements of ASHRAE Standard
    90.1-1989, and, with respect to rehabilitation and new construction
    of public and assisted housing funded by HOPE VI revitalization
    grants under section 1437v of this title, the 2003 International
    Energy Conservation Code.
    (c) Revisions of Model Energy Code and the International Energy
      Conservation Code
      If the requirements of CABO Model Energy Code, 1992, or, in the
    case of multifamily high rises, ASHRAE Standard 90.1-1989, or, with
    respect to rehabilitation and new construction of public and
    assisted housing funded by HOPE VI revitalization grants under
    section 1437v of this title, the 2003 International Energy
    Conservation Code, are revised at any time, the Secretaries shall,
    not later than 1 year after such revision, amend the standards
    established under subsection (a) of this section to meet or exceed
    the requirements of such revised code or standard unless the
    Secretaries determine that compliance with such revised code or
    standard would not result in a significant increase in energy
    efficiency or would not be technologically feasible or economically
    justified.

-SOURCE-
    (Pub. L. 101-625, title I, Sec. 109, Nov. 28, 1990, 104 Stat. 4093;
    Pub. L. 102-486, title I, Sec. 101(c)(1), Oct. 24, 1992, 106 Stat.
    2786; Pub. L. 109-58, title I, Sec. 153, Aug. 8, 2005, 119 Stat.
    649.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The National Housing Act, referred to in subsec. (a)(1)(A), is
    act June 27, 1934, ch. 847, 48 Stat. 1246, as amended. which is
    classified principally to chapter 13 (Sec. 1701 et seq.) of Title
    12, Banks and Banking. For complete classification of this Act to
    the Code, see section 1701 of Title 12 and Tables.
      The Housing Act of 1949, referred to in subsec. (a)(1)(B), is act
    July 15, 1949, ch. 338, 63 Stat. 413, as amended. Title V of the
    Act is classified generally to subchapter III (Sec. 1471 et seq.)
    of chapter 8A of this title. For complete classification of this
    Act to the Code, see Short Title note set out under section 1441 of
    this title and Tables.

-MISC1-
                                AMENDMENTS                            
      2005 - Subsec. (a)(1). Pub. L. 109-58, Sec. 153(1)(A)(i),
    substituted "September 30, 2006" for "1 year after October 24,
    1992" in introductory provisions.
      Subsec. (a)(1)(C). Pub. L. 109-58, Sec. 153(1)(A)(ii)-(iv), added
    subpar. (C).
      Subsec. (a)(2). Pub. L. 109-58, Sec. 153(1)(B), inserted ", and,
    with respect to rehabilitation and new construction of public and
    assisted housing funded by HOPE VI revitalization grants under
    section 1437v of this title, the 2003 International Energy
    Conservation Code" after "90.1-1989')".
      Subsec. (b). Pub. L. 109-58, Sec. 153(2), substituted "by
    September 30, 2006" for "within 1 year after October 24, 1992" and
    inserted ", and, with respect to rehabilitation and new
    construction of public and assisted housing funded by HOPE VI
    revitalization grants under section 1437v of this title, the 2003
    International Energy Conservation Code" before period at end.
      Subsec. (c). Pub. L. 109-58, Sec. 153(3), inserted "and the
    International Energy Conservation Code" after "Model Energy Code"
    in heading and ", or, with respect to rehabilitation and new
    construction of public and assisted housing funded by HOPE VI
    revitalization grants under section 1437v of this title, the 2003
    International Energy Conservation Code" after "90.1-1989" in text.
      1992 - Pub. L. 102-486 amended section generally. Prior to
    amendment, section read as follows: "The Secretary of Housing and
    Urban Development shall, not later than one year after November 28,
    1990, promulgate energy efficiency standards for new construction
    of public and assisted housing and single-family and multifamily
    residential housing (other than manufactured homes) subject to
    mortgages under the National Housing Act. Such standards shall meet
    or exceed the provisions of the most recent edition of the Model
    Energy Code of the Council of American Building Officials and shall
    be cost-effective with respect to construction and operating costs.
    In developing such standards the Secretary shall consult with an
    advisory task force composed of homebuilders, national, State, and
    local housing agencies (including public housing agencies), energy
    agencies and building code organizations and agencies, energy
    efficiency organizations, utility organizations, low-income housing
    organizations, and other parties designated by the Secretary."

-End-

-CITE-
    42 USC Sec. 12710                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER I - GENERAL PROVISIONS AND POLICIES

-HEAD-
    Sec. 12710. Capacity study

-STATUTE-
    (a) In general
      The Secretary shall ensure that the Department of Housing and
    Urban Development has adequate capacity and resources, including
    staff and training programs, to carry out its mission and
    responsibilities to implement the provisions of this Act, including
    the ability of the Department to carry out the multifamily mortgage
    insurance program, and the ability to respond to areas identified
    as "material weaknesses" by the Office of the Inspector General in
    financial audits or other reports.
    (b) Report
      Not later than 60 days after November 28, 1990, and annually
    thereafter, the Secretary shall prepare and submit to the Committee
    on Banking, Housing, and Urban Affairs of the Senate and the
    Committee on Banking, Finance and Urban Affairs of the House of
    Representatives a study detailing the Department's plan to maintain
    such capacity, together with any recommendations for legislative
    and administrative action as the Secretary determines to be
    appropriate.

-SOURCE-
    (Pub. L. 101-625, title I, Sec. 110, Nov. 28, 1990, 104 Stat. 4093;
    Pub. L. 102-550, title IV, Sec. 407, Oct. 28, 1992, 106 Stat.
    3778.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This Act, referred to in subsec. (a), is Pub. L. 101-625, Nov.
    28, 1990, 104 Stat. 4079, known as the Cranston-Gonzalez National
    Affordable Housing Act. For complete classification of this Act to
    the Code, see Short Title note set out under section 12701 of this
    title and Tables.

-MISC1-
                                AMENDMENTS                            
      1992 - Subsec. (a). Pub. L. 102-550 struck out ", and" after
    "responsibilities" and substituted for period at end "and the
    ability to respond to areas identified as 'material weaknesses' by
    the Office of the Inspector General in financial audits or other
    reports."

-CHANGE-
                              CHANGE OF NAME                          
      Committee on Banking, Finance and Urban Affairs of House of
    Representatives treated as referring to Committee on Banking and
    Financial Services of House of Representatives by section 1(a) of
    Pub. L. 104-14, set out as a note preceding section 21 of Title 2,
    The Congress. Committee on Banking and Financial Services of House
    of Representatives abolished and replaced by Committee on Financial
    Services of House of Representatives, and jurisdiction over matters
    relating to securities and exchanges and insurance generally
    transferred from Committee on Energy and Commerce of House of
    Representatives by House Resolution No. 5, One Hundred Seventh
    Congress, Jan. 3, 2001.

-End-

-CITE-
    42 USC Sec. 12711                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER I - GENERAL PROVISIONS AND POLICIES

-HEAD-
    Sec. 12711. Protection of State and local authority

-STATUTE-
      Notwithstanding any other provision of this subchapter or
    subchapter II of this chapter, the Secretary shall not establish
    any criteria for allocating or denying funds made available under
    programs administered by the Secretary based on the adoption,
    continuation, or discontinuation by a jurisdiction of any public
    policy, regulation, or law that is (1) adopted, continued, or
    discontinued in accordance with the jurisdiction's duly established
    authority, and (2) not in violation of any Federal law.

-SOURCE-
    (Pub. L. 101-625, title I, Sec. 111, Nov. 28, 1990, 104 Stat.
    4093.)

-End-

-CITE-
    42 USC Sec. 12712                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER I - GENERAL PROVISIONS AND POLICIES

-HEAD-
    Sec. 12712. 5-year energy efficiency plan

-STATUTE-
    (a) Establishment
      The Secretary of Housing and Urban Development shall establish a
    plan for activities to be undertaken and policies to be adopted by
    the Secretary within the 5-year period beginning upon the
    submission of the plan to the Congress under subsection (d) of this
    section to provide for, encourage, and improve energy efficiency in
    newly constructed, rehabilitated, and existing housing. In
    developing the plan, the Secretary shall consider, as appropriate,
    any energy assessments under section 944.
    (b) Initial plan
      The Secretary of Housing and Urban Development shall establish
    the first plan under this section not later than the expiration of
    the 1-year period beginning on November 28, 1990.
    (c) Updates
      The Secretary of Housing and Urban Development shall revise and
    update the plan under this section not less than once for each 2-
    year period, the first such 2-year period beginning on the date of
    the submission of the initial plan under subsection (b) of this
    section to the Congress (as provided in subsection (d) of this
    section). Each such update shall revise the plan for the 5-year
    period beginning upon the submission of the updated plan to the
    Congress.
    (d) Submission to Congress
      The Secretary of Housing and Urban Development shall submit the
    initial plan established under subsection (b) of this section and
    any updated plans under subsection (c) of this section to the
    Congress not later than the date by which such plans are to be
    established or updated under such paragraphs.

-SOURCE-
    (Pub. L. 101-625, title IX, Sec. 945, Nov. 28, 1990, 104 Stat.
    4416.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 944, referred to in subsec. (a), is section 944 of Pub.
    L. 101-625, which is set out below.

-COD-
                               CODIFICATION                           
      Section was enacted as part of title IX of the Cranston-Gonzalez
    National Affordable Housing Act, and not as part of title I of such
    Act which comprises this subchapter.

-MISC1-
                 ENERGY EFFICIENT MORTGAGES PILOT PROGRAM             
      Pub. L. 102-550, title V, Sec. 513, Oct. 28, 1992, 106 Stat.
    3786, provided that:
      "(a) Establishment of Pilot Program. - 
        "(1) In general. - Not later than 6 months after the date of
      enactment of this Act [Oct. 28, 1992], the Secretary of Housing
      and Urban Development (hereafter referred to as the 'Secretary')
      shall establish an energy efficient mortgage pilot program in 5
      States, to promote the purchase of existing energy efficient
      residential buildings and the installation of cost-effective
      improvements in existing residential buildings.
        "(2) Pilot program. - The pilot program established under this
      subsection shall include the following criteria, where
      applicable:
          "(A) Origination. - The lender shall originate a housing loan
        that is insured under title II of the National Housing Act [12
        U.S.C. 1707 et seq.] in accordance with the applicable
        requirements.
          "(B) Approval. - The mortgagor's base loan application shall
        be approved if the mortgagor's income and credit record is
        found to be satisfactory.
          "(C) Cost of improvements. - The cost of cost-effective
        energy efficiency improvements shall not exceed the greater of -
         
            "(i) 5 percent of the property value (not to exceed
          $8,000); or
            "(ii) $4,000.
        "(3) Authority for mortgagees. - In granting mortgages under
      the pilot program established pursuant to this subsection, the
      Secretary shall grant mortgagees the authority - 
          "(A) to permit the final loan amount to exceed the loan
        limits established under title II of the National Housing Act
        [12 U.S.C. 1707 et seq.] by an amount not to exceed 100 percent
        of the cost of the cost-effective energy efficiency
        improvements, if the mortgagor's request to add the cost of
        such improvements is received by the mortgagee prior to funding
        of the base loan;
          "(B) to hold in escrow all funds provided to the mortgagor to
        undertake the energy efficiency improvements until the
        efficiency improvements are actually installed; and
          "(C) to transfer or sell the energy efficient mortgage to the
        appropriate secondary market agency, after the mortgage is
        issued, but before the energy efficiency improvements are
        actually installed.
        "(4) Promotion of pilot program. - The Secretary shall
      encourage participation in the energy efficient mortgage pilot
      program by - 
          "(A) making available information to lending agencies and
        other appropriate authorities regarding the availability and
        benefits of energy efficient mortgages;
          "(B) requiring mortgagees and designated lending authorities
        to provide written notice of the availability and benefits of
        the pilot program to mortgagors applying for financing in those
        States designated by the Secretary as participating under the
        pilot program; and
          "(C) requiring each applicant for a mortgage insured under
        title II of the National Housing Act [12 U.S.C. 1707 et seq.]
        in those States participating under the pilot program to sign a
        statement that such applicant has been informed of the program
        requirements and understands the benefits of energy efficient
        mortgages.
        "(5) Training program. - Not later than 9 months after the date
      of enactment of this Act [Oct. 28, 1992], the Secretary, in
      consultation with the Secretary of Energy, shall establish and
      implement a program for training personnel at relevant lending
      agencies, real estate companies, and other appropriate
      organizations regarding the benefits of energy efficient
      mortgages and the operation of the pilot program under this
      subsection.
        "(6) Report. - Not later than 18 months after the date of
      enactment of this Act, the Secretary shall prepare and submit a
      report to the Congress describing the effectiveness and
      implementation of the energy efficient mortgage pilot program as
      described under this subsection, and assessing the potential for
      expanding the pilot program nationwide.
      "(b) Expansion of Program. - Not later than the expiration of the
    2-year period beginning on the date of the implementation of the
    energy efficient mortgage pilot program under this section, the
    Secretary of Housing and Urban Development shall expand the pilot
    program on a nationwide basis and shall expand the program to
    include new residential housing, unless the Secretary determines
    that either such expansion would not be practicable in which case
    the Secretary shall submit to the Congress, before the expiration
    of such period, a report explaining why either expansion would not
    be practicable.
      "(c) Definitions. - For purposes of this section:
        "(1) The term 'base loan' means any mortgage loan for a
      residential building eligible for insurance under title II of the
      National Housing Act [12 U.S.C. 1707 et seq.] or title 38, United
      States Code, that does not include the cost of cost-effective
      energy improvements.
        "(2) The term 'cost-effective' means, with respect to energy
      efficiency improvements to a residential building, improvements
      that result in the total present value cost of the improvements
      (including any maintenance and repair expenses) being less than
      the total present value of the energy saved over the useful life
      of the improvement, when 100 percent of the cost of improvements
      is added to the base loan. For purposes of this paragraph,
      savings and cost-effectiveness shall be determined pursuant to a
      home energy rating report sufficient for purposes of the Federal
      National Mortgage Association and the Federal Home Loan Mortgage
      Corporation, or by other technically accurate methods.
        "(3) The term 'energy efficient mortgage' means a mortgage on a
      residential building that recognizes the energy savings of a home
      that has cost-effective energy saving construction or
      improvements (including solar water heaters, solar-assisted air
      conditioners and ventilators, super-insulation, and insulating
      glass and film) and that has the effect of not disqualifying a
      borrower who, but for the expenditures on energy saving
      construction or improvements, would otherwise have qualified for
      a base loan.
        "(4) The term 'residential building' means any attached or
      unattached single family residence.
      "(d) Rule of Construction. - This section may not be construed to
    affect any other programs of the Secretary of Housing and Urban
    Development for energy-efficient mortgages. The pilot program
    carried out under this section shall not replace or result in the
    termination of such other programs.
      "(e) Regulations. - The Secretary shall issue any regulations
    necessary to carry out this section not later than the expiration
    of the 180-day period beginning on the date of the enactment of
    this Act [Oct. 28, 1992]. The regulations shall be issued after
    notice and opportunity for public comment pursuant to the
    provisions of section 553 of title 5, United States Code
    (notwithstanding subsections (a)(2), (b)(B), and (d)(3) of such
    section).
      "(f) Authorization of Appropriations. - There are authorized to
    be appropriated such sums as may be necessary to carry out this
    section."
      Similar provisions were contained in Pub. L. 102-486, title I,
    Sec. 106, Oct. 24, 1992, 106 Stat. 2792.

                         ENERGY ASSESSMENT REPORT                     
      Section 944 of Pub. L. 101-625 directed Secretary of Housing and
    Urban Development to submit a report to Congress, not later than
    one year after Nov. 28, 1990, assessing any activity undertaken by
    the Secretary to increase energy efficiency in housing, such report
    to include an analysis of the Aug. 15, 1990, DOE-HUD program to
    expand energy efficiency and increase affordability of federally-
    assisted housing, and provided that in such report Secretary of
    Housing and Urban Development (in consultation with Secretary of
    Energy) was to establish, and include a description of, a standard
    measure by which changes over time in residential energy efficiency
    could be compared.

           UNIFORM MORTGAGE FINANCING PLAN FOR ENERGY EFFICIENCY       
      Section 946 of Pub. L. 101-625, as amended by Pub. L. 102-486,
    title I, Sec. 105(b), Oct. 24, 1992, 106 Stat. 2792; Pub. L. 102-
    550, title IX, Sec. 914(b), Oct. 28, 1992, 106 Stat. 3877,
    provided that:
      "(a) Uniform Plan. - The Secretary of Housing and Urban
    Development, in consultation with the Secretary of Energy, shall
    promulgate a uniform plan to make housing more affordable through
    energy efficient mortgages (as such term is defined in section 104
    of this Act [42 U.S.C. 12704]). The plan shall be promulgated not
    later than 2 years after the date of the enactment of the Cranston-
    Gonzalez National Affordable Housing Act [Nov. 28, 1990].
      "(b) Task Force. - To develop the plan, the Secretary shall form
    a task force to make recommendation[s] on financing energy
    efficiency in private mortgages, through the policies of Federal
    agencies and federally chartered financial institutions, mortgage
    bankers, homebuilders, real estate brokers, private mortgage
    insurers, energy suppliers, and nonprofit housing and energy
    organizations. The task force shall include, but not be limited to,
    individuals representing the Federal Housing Administration
    mortgage programs of the Department of Housing and Urban
    Development, the Farmers Home Administration mortgage loan and
    insurance programs of Department of Agriculture, the Federal Home
    Loan Mortgage Corporation, and the Federal National Mortgage
    Association. The Task Force shall determine whether notifying
    potential home purchasers of the availability of energy efficient
    mortgages would promote energy efficiency in residential buildings,
    and if so, the Task Force shall recommend appropriate notification
    guidelines, and agencies and organizations referred to in the
    preceding sentence are authorized to implement such guidelines."

                      ENERGY EFFICIENCY DEMONSTRATION                  
      Section 961 of Pub. L. 101-625 directed Secretary of Housing and
    Urban Development to establish a program to demonstrate various
    methods of improving the energy efficiency of existing housing,
    provided for funding, provided that the demonstration determine
    appropriate design, improvement, and rehabilitation methods and
    practices for increasing residential energy efficiency in housing
    already constructed, and directed Secretary, as soon as practicable
    after Sept. 30, 1991, to submit to Congress a report setting forth
    the findings and recommendations of the Secretary as a result of
    the demonstration.

-End-

-CITE-
    42 USC Sec. 12713                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER I - GENERAL PROVISIONS AND POLICIES

-HEAD-
    Sec. 12713. Eligibility under first-time homebuyer programs

-STATUTE-
    (a) Eligibility of displaced homemakers and single parents for
      Federal assistance for first-time homebuyers
      (1) Displaced homemakers
        No individual who is a displaced homemaker may be denied
      eligibility under any Federal program to assist first-time
      homebuyers on the basis that the individual, while a homemaker,
      owned a home with his or her spouse or resided in a home owned by
      the spouse.
      (2) Single parents
        No individual who is a single parent may be denied eligibility
      under any Federal program to assist first-time homebuyers on the
      basis that the individual, while married, owned a home with his
      or her spouse or resided in a home owned by the spouse.
    (b) Definitions
      For purposes of this section:
      (1) Displaced homemaker
        The term "displaced homemaker" means an individual who - 
          (A) is an adult;
          (B) has not worked full-time, full-year in the labor force
        for a number of years but has, during such years, worked
        primarily without remuneration to care for the home and family;
        and
          (C) is unemployed or underemployed and is experiencing
        difficulty in obtaining or upgrading employment.
      (2) First-time homebuyer
        The term "first-time homebuyer" means an individual who has
      never, or has not during a specified period of time, had any
      present ownership interest in a principal residence.
      (3) Single parent
        The term "single parent" means an individual who - 
          (A) is unmarried or legally separated from a spouse; and
          (B)(i) has 1 or more minor children for whom the individual
        has custody or joint custody; or
          (ii) is pregnant.
    (c) Applicability
      This section shall apply to any Federal program to assist first-
    time homebuyers, unless the program is exempted from this section
    by a statute that amends this subsection or explicitly refers to
    this subsection.

-SOURCE-
    (Pub. L. 101-625, title IX, Sec. 956, Nov. 28, 1990, 104 Stat.
    4421.)

-COD-
                               CODIFICATION                           
      Section was enacted as part of title IX of the Cranston-Gonzalez
    National Affordable Housing Act, and not as part of title I of such
    Act which comprises this subchapter.

-End-

-CITE-
    42 USC Sec. 12714                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER I - GENERAL PROVISIONS AND POLICIES

-HEAD-
    Sec. 12714. Repealed. Pub. L. 104-99, title IV, Sec. 404(a), Jan.
      26, 1996, 110 Stat. 44

-MISC1-
      Section, Pub. L. 101-625, title IX, Sec. 957, Nov. 28, 1990, 104
    Stat. 4422, related to maximum annual limitation on rent increases
    resulting from employment.

                         EFFECTIVE DATE OF REPEAL                     
      Section 404(a) of Pub. L. 104-99 provided in part that this
    section is repealed retroactive to Nov. 28, 1990, and shall be of
    no effect.

                           ECONOMIC INDEPENDENCE                       
      Pub. L. 102-550, title IX, Sec. 923, Oct. 28, 1992, 106 Stat.
    3884, which provided that Secretary of Housing and Urban
    Development was to immediately implement section 12714 of this
    title and that other Federal agencies authorized to assist low-
    income families were to take similar steps to encourage economic
    independence and the accumulation of assets, was repealed
    retroactive to Oct. 28, 1992, by Pub. L. 104-99, title IV, Sec.
    404(b), Jan. 26, 1996, 110 Stat. 44, which further provided that
    section 923 of Pub. L. 102-550 was to be of no effect.

-End-

-CITE-
    42 USC SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING     01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING

-HEAD-
             SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING         

-End-

-CITE-
    42 USC Sec. 12721                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING

-HEAD-
    Sec. 12721. Findings

-STATUTE-
      The Congress finds that - 
        (1) the Nation has not made adequate progress toward the goal
      of national housing policy, as set out in the Housing Act of 1949
      [42 U.S.C. 1441 et seq.] and reaffirmed in the Housing and Urban
      Development Act of 1968, which would provide decent, safe,
      sanitary, and affordable living environments for all Americans;
        (2) the supply of affordable rental housing is diminishing;
        (3) the Tax Reform Act of 1986 removed major tax incentives for
      the production of affordable rental housing;
        (4) the living environments of an increasing number of
      Americans have deteriorated over the past several years as a
      result of reductions in Federal assistance to low-income and
      moderate-income families;
        (5) many Americans face the possibility of homelessness unless
      Federal, State, and local governments work together with the
      private sector to develop and rehabilitate the housing stock of
      the Nation to provide decent, safe, sanitary, and affordable
      housing for very low-income and low-income families;
        (6) reliable Federal leadership is needed to achieve an
      adequate supply of affordable housing for all Americans;
        (7) to achieve the goal of national housing policy, there is a
      need to strengthen nationwide a cost-effective community-based
      housing partnership designed to - 
          (A) expand the supply of rental housing that is affordable to
        very low-income and low-income families,
          (B) improve homeownership opportunities for low-income
        families,
          (C) carry out comprehensive housing strategies tailored to
        local housing market conditions, and
          (D) protect the Federal, State, and local investment in low-
        income housing to ensure affordability of the housing for the
        remaining useful life of the property;

        (8) direct assistance to expand the supply of affordable rental
      housing should be provided in a way that is more cost-effective
      and targeted than tax incentives;
        (9) much of the Nation's housing system works very well and
      provides a strong base on which national housing policy should
      build;
        (10) an increasing number of States and local governments have
      been successful in producing cost-effective low-income and
      moderate-income housing by working in partnership with the
      private sector, including nonprofit community development
      corporations, community action agencies, neighborhood housing
      services corporations, trade unions, groups sponsored by
      religious organizations, limited equity cooperatives, and other
      tenant organizations;
        (11) during the 1980's, nonprofit community housing development
      organizations, despite severe obstacles caused by inadequate
      funding, have played an increasingly important role in the
      production and rehabilitation of affordable housing in
      communities across the Nation;
        (12) additional financial resources and technical skills must
      be made available in local communities if the Nation is to
      mobilize the capacity of the private sector, including nonprofit
      community housing development organizations, to provide a more
      adequate supply of decent, safe, and sanitary housing that is
      affordable to very low-income, low-income, and moderate-income
      families and meets the need for large family units and other
      additional units that are available to very low-income families
      receiving rental assistance payments from Federal, State, and
      local governments; and
        (13) the long-term success of efforts to provide more
      affordable housing depends upon tenants and homeowners being
      fiscally responsible and able managers.

-SOURCE-
    (Pub. L. 101-625, title II, Sec. 202, Nov. 28, 1990, 104 Stat.
    4094.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Housing Act of 1949, referred to in par. (1), is act July 15,
    1949, ch. 338, 63 Stat. 413, as amended, which is classified
    principally to chapter 8A (Sec. 1441 et seq.) of this title. For
    complete classification of this Act to the Code, see Short Title
    note set out under section 1441 of this title and Tables.
      The Housing and Urban Development Act of 1968, referred to in
    par. (1), is Pub. L. 90-448, Aug. 1, 1968, 82 Stat. 476, as
    amended. For complete classification of this Act to the Code, see
    Short Title of 1968 Amendments note set out under section 1701 of
    Title 12, Banks and Banking, and Tables.
      The Tax Reform Act of 1986, referred to in par. (3), is Pub. L.
    99-514, Oct. 22, 1986, 100 Stat. 2085, as amended. For complete
    classification of this Act to the Code, see Short Title of 1986
    Amendments note set out under section 1 of Title 26, Internal
    Revenue Code, and Tables.

-MISC1-
                                SHORT TITLE                            
      For short title of this subchapter as the "HOME Investment
    Partnerships Act", see Short Title note set out under section 12701
    of this title.

-End-

-CITE-
    42 USC Sec. 12722                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING

-HEAD-
    Sec. 12722. Purposes

-STATUTE-
      The purposes of this subchapter are - 
        (1) to expand the supply of decent, safe, sanitary, and
      affordable housing, with primary attention to rental housing, for
      very low-income and low-income Americans;
        (2) to mobilize and strengthen the abilities of States and
      units of general local government throughout the United States to
      design and implement strategies for achieving an adequate supply
      of decent, safe, sanitary, and affordable housing;
        (3) to provide participating jurisdictions, on a coordinated
      basis, with the various forms of Federal housing assistance,
      including capital investment, mortgage insurance, rental
      assistance, and other Federal assistance, needed - 
          (A) to expand the supply of decent, safe, sanitary, and
        affordable housing;
          (B) to make new construction, rehabilitation, substantial
        rehabilitation, and acquisition of such housing feasible; and
          (C) to promote the development of partnerships among the
        Federal Government, States and units of general local
        government, private industry, and nonprofit organizations able
        to utilize effectively all available resources to provide more
        of such housing;

        (4) to make housing more affordable for very low-income and low-
      income families through the use of tenant-based rental
      assistance;
        (5) to develop and refine, on an ongoing basis, a selection of
      model programs incorporating the most effective methods for
      providing decent, safe, sanitary, and affordable housing, and
      accelerate the application of such methods where appropriate
      throughout the United States to achieve the prudent and efficient
      use of funds made available under this subchapter;
        (6) to expand the capacity of nonprofit community housing
      development organizations to develop and manage decent, safe,
      sanitary, and affordable housing;
        (7) to ensure that Federal investment produces housing stock
      that is available and affordable to low-income families for the
      property's remaining useful life, is appropriate to the
      neighborhood surroundings, and, wherever appropriate, is mixed
      income housing;
        (8) to increase the investment of private capital and the use
      of private sector resources in the provision of decent, safe,
      sanitary, and affordable housing;
        (9) to allocate Federal funds for investment in affordable
      housing among participating jurisdictions by formula allocation;
        (10) to leverage those funds insofar as practicable with State
      and local matching contributions and private investment;
        (11) to establish for each participating jurisdiction a HOME
      Investment Trust Fund with a line of credit for investment in
      affordable housing, with repayments back to its HOME Investment
      Trust Fund being made available for reinvestment by the
      jurisdiction;
        (12) to provide credit enhancement for affordable housing by
      utilizing the capacities of existing agencies and mortgage
      finance institutions when most efficient and supplementing their
      activities when appropriate; and
        (13) to assist very low-income and low-income families to
      obtain the skills and knowledge necessary to become responsible
      homeowners and tenants.

-SOURCE-
    (Pub. L. 101-625, title II, Sec. 203, Nov. 28, 1990, 104 Stat.
    4095.)

-End-

-CITE-
    42 USC Sec. 12723                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING

-HEAD-
    Sec. 12723. Coordinated Federal support for housing strategies

-STATUTE-
      The Secretary shall make assistance under this subchapter
    available to participating jurisdictions, through the Office of the
    Assistant Secretary for Housing-FHA Commissioner of the Department
    of Housing and Urban Development, to the maximum extent
    practicable, in coordination with mortgage insurance, rental
    assistance, and other housing assistance appropriate to the
    efficient and timely completion of activities under this
    subchapter.

-SOURCE-
    (Pub. L. 101-625, title II, Sec. 204, Nov. 28, 1990, 104 Stat.
    4096.)

-End-

-CITE-
    42 USC Sec. 12724                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING

-HEAD-
    Sec. 12724. Authorization

-STATUTE-
      There are authorized to be appropriated to carry out this
    subchapter $2,086,000,000 for fiscal year 1993, and $2,173,612,000
    for fiscal year 1994, of which - 
        (1) not more than $14,000,000 for fiscal year 1993, and
      $25,000,000 for fiscal year 1994, shall be for community housing
      partnership activities authorized under section 12773 of this
      title; and
        (2) not more than $11,000,000 for fiscal year 1993, and
      $22,000,000 for fiscal year 1994, shall be for activities in
      support of State and local housing strategies authorized under
      part C of this subchapter.

-SOURCE-
    (Pub. L. 101-625, title II, Sec. 205, Nov. 28, 1990, 104 Stat.
    4096; Pub. L. 102-550, title II, Sec. 201, Oct. 28, 1992, 106 Stat.
    3751; Pub. L. 103-120, Sec. 5, Oct. 27, 1993, 107 Stat. 1148.)

-MISC1-
                                AMENDMENTS                            
      1993 - Pub. L. 103-120 substituted "$25,000,000 for fiscal year
    1994" for "$14,000,000 for fiscal year 1994" in par. (1) and
    "$22,000,000 for fiscal year 1994" for "$11,000,000 for fiscal year
    1994" in par. (2).
      1992 - Pub. L. 102-550 amended section generally. Prior to
    amendment, section read as follows: "There are authorized to be
    appropriated to carry out this subchapter $1,000,000,000 for fiscal
    year 1991, and $2,086,000,000 for fiscal year 1992, of which - 
        "(1) not more than $14,000,000 for fiscal year 1991, and
      $14,000,000 for fiscal year 1992, shall be for community housing
      partnership activities authorized under section 12773 of this
      title; and
        "(2) not more than $11,000,000 for fiscal year 1991, and
      $11,000,000 for fiscal year 1992, shall be for activities in
      support of State and local housing strategies authorized under
      part C of this subchapter."

-End-

-CITE-
    42 USC Sec. 12725                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING

-HEAD-
    Sec. 12725. Notice

-STATUTE-
      The Secretary shall issue regulations to implement the provisions
    of this subchapter after notice and an opportunity for comment
    pursuant to section 553 of title 5. Such regulations shall become
    effective not later than 180 days after November 28, 1990.

-SOURCE-
    (Pub. L. 101-625, title II, Sec. 206, Nov. 28, 1990, 104 Stat.
    4096.)

-End-

-CITE-
    42 USC Part A - HOME Investment Partnerships                01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING
    Part A - HOME Investment Partnerships

-HEAD-
                   PART A - HOME INVESTMENT PARTNERSHIPS               

-End-

-CITE-
    42 USC Sec. 12741                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING
    Part A - HOME Investment Partnerships

-HEAD-
    Sec. 12741. Authority

-STATUTE-
      The Secretary is authorized to make funds available to
    participating jurisdictions for investment to increase the number
    of families served with decent, safe, sanitary, and affordable
    housing and expand the long-term supply of affordable housing in
    accordance with provisions of this part.

-SOURCE-
    (Pub. L. 101-625, title II, Sec. 211, Nov. 28, 1990, 104 Stat.
    4096.)

-End-

-CITE-
    42 USC Sec. 12742                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING
    Part A - HOME Investment Partnerships

-HEAD-
    Sec. 12742. Eligible uses of investment

-STATUTE-
    (a) Housing uses
      (1) In general
        Funds made available under this part may be used by
      participating jurisdictions to provide incentives to develop and
      support affordable rental housing and homeownership affordability
      through the acquisition, new construction, reconstruction, or
      moderate or substantial rehabilitation of affordable housing,
      including real property acquisition, site improvement,
      conversion, demolition, and other expenses, including financing
      costs, relocation expenses of any displaced persons, families,
      businesses, or organizations, to provide for the payment of
      reasonable administrative and planning costs, to provide for the
      payment of operating expenses of community housing development
      organizations, and to provide tenant-based rental assistance. For
      the purpose of this part, the term "affordable housing" includes
      permanent housing for disabled homeless persons, transitional
      housing, and single room occupancy housing.
      (2) Preference to rehabilitation
        A participating jurisdiction shall give preference to
      rehabilitation of substandard housing unless the jurisdiction
      determines that - 
          (A) such rehabilitation is not the most cost effective way to
        meet the jurisdiction's need to expand the supply of affordable
        housing; and
          (B) the jurisdiction's housing needs cannot be met through
        rehabilitation of the available stock.

      The Secretary shall not restrict a participating jurisdiction's
      choice of rehabilitation, substantial rehabilitation, new
      construction, reconstruction, acquisition, or other eligible
      housing use unless such restriction is explicitly authorized
      under section 12753(2) of this title.
      (3) Tenant-based rental assistance
        (A) In general
          A participating jurisdiction may use funds provided under
        this part for tenant-based rental assistance only if - 
            (i) the jurisdiction certifies that the use of funds under
          this part for tenant-based rental assistance is an essential
          element of the jurisdiction's annual housing strategy for
          expanding the supply, affordability, and availability of
          decent, safe, sanitary, and affordable housing, and specifies
          the local market conditions that lead to the choice of this
          option; and
            (ii) the tenant-based rental assistance is provided in
          accordance with written tenant selection policies and
          criteria that are consistent with the purposes of providing
          housing to very low- and low-income families and are
          reasonably related to preference rules established under
          section 1437d(c)(4)(A) (!1) of this title.

        (B) Fair share not affected
          A jurisdiction's section 8 [42 U.S.C. 1437f] fair share
        allocation shall be unaffected by the use of assistance under
        this subchapter.
        (C) 24-month contracts
          Rental assistance contracts made available with assistance
        under this subchapter shall be for not more than 24 months,
        except that assistance to a family may be renewed.
        (D) Use of section 1437f assistance
          In any case where assistance under section 1437f of this
        title becomes available to a participating jurisdiction,
        recipients of rental assistance under this subchapter shall
        qualify for tenant selection preferences to the same extent as
        when they received the rental assistance under this subchapter.
        A rental assistance program under this subchapter shall meet
        minimum criteria prescribed by the Secretary, such as housing
        quality standards and standards regarding the reasonableness of
        the rent.
        (E) Security deposit assistance
          A jurisdiction using funds provided under this part for
        tenant-based rental assistance may use such funds to provide
        loans or grants to very low- and low-income families for
        security deposits for rental of dwelling units. Assistance
        under this subparagraph does not preclude assistance under any
        other provision of this paragraph.
      (4) Redesignated (3)
      (5) Lead-based paint hazards
        A participating jurisdiction may use funds provided under this
      part for the evaluation and reduction of lead-based paint
      hazards, as defined in section 4851b of this title.
    (b) Investments
      Participating jurisdictions shall have discretion to invest funds
    made available under this part as equity investments, interest-
    bearing loans or advances, noninterest-bearing loans or advances,
    interest subsidies or other forms of assistance that the Secretary
    has determined to be consistent with the purposes of this
    subchapter. Each participating jurisdiction shall have the right to
    establish the terms of assistance.
    (c) Administrative costs
      In each fiscal year, each participating jurisdiction may use not
    more than 10 percent of the funds made available under this part to
    the jurisdiction for such year for any administrative and planning
    costs of the jurisdiction in carrying out this part, including the
    costs of the salaries of persons engaged in administering and
    managing activities assisted with funds made available under this
    part.
    (d) Prohibited uses
      Funds made available under this part may not be used to - 
        (1) defray any administrative cost of a participating
      jurisdiction that exceed the amount specified under subsection
      (c) of this section,
        (2) provide tenant-based rental assistance for the special
      purposes of the existing section 8 [42 U.S.C. 1437f] program,
      including replacing public housing that is demolished or disposed
      of, preserving federally assisted housing, assisting in the
      disposition of housing owned or held by the Secretary, preventing
      displacement from rental rehabilitation projects, or extending or
      renewing tenant-based assistance under section 1437f of this
      title,
        (3) provide non-Federal matching contributions required under
      any other Federal program,
        (4) provide assistance authorized under section 1437g of this
      title,
        (5) carry out activities authorized under section 1437g(d)(1)
      (!1) of this title, or
        (6) provide assistance to eligible low-income housing under the
      Emergency Low Income Housing Preservation Act of 1987 or the Low-
      Income Housing Preservation and Resident Homeownership Act of
      1990 [12 U.S.C. 4101 et seq.].
    (e) Cost limits
      (1) In general
        The Secretary shall establish limits on the amount of funds
      under this part that may be invested on a per unit basis. For
      multifamily housing, such limits shall not be less than the per
      unit dollar amount limitations set forth in section
      1715l(d)(3)(ii) of title 12, as such limitations may be adjusted
      in accordance therewith, except that for purposes of this
      subsection the Secretary shall, by regulation, increase the per
      unit dollar amount limitations in any geographical area by an
      amount, not to exceed 140 percent, that equals the amount by
      which the costs of multifamily housing construction in the area
      exceed the national average of such costs. The limits shall be
      established on a market-by-market basis, with adjustments made
      for number of bedrooms, and shall reflect the actual cost of new
      construction, reconstruction, or rehabilitation of housing that
      meets applicable State and local housing and building codes and
      the cost of land, including necessary site improvements.
      Adjustments shall be made annually to reflect inflation. Separate
      limits may be set for different eligible activities.
      (2) Criteria
        In calculating per unit limits, the Secretary shall take into
      account that assistance under this subchapter is intended to - 
          (A) provide nonluxury housing with suitable amenities;
          (B) operate effectively in all jurisdictions;
          (C) facilitate mixed-income housing; and
          (D) reflect the costs associated with meeting the special
        needs of tenants or homeowners that the housing is designed to
        serve.
      (3) Consultation
        In calculating cost limits, the Secretary shall consult with
      organizations that have expertise in the development of
      affordable housing, including national nonprofit organizations
      and national organizations representing private development firms
      and State and local governments.
    (f) Certification of compliance
      The requirements of section 3545(d) of this title shall be
    satisfied by a certification by a participating jurisdiction to the
    Secretary that the combination of Federal assistance provided to
    any housing project shall not be any more than is necessary to
    provide affordable housing.
    (g) Limitation on operating assistance
      A participating jurisdiction may not use more than 5 percent of
    its allocation under this part for the payment of operating
    expenses for community housing development organizations.

-SOURCE-
    (Pub. L. 101-625, title II, Sec. 212, Nov. 28, 1990, 104 Stat.
    4097; Pub. L. 102-550, title II, Secs. 203(a), 204-207(b), (d),
    title X, Sec. 1012(e), Oct. 28, 1992, 106 Stat. 3752-3754, 3905;
    Pub. L. 105-276, title V, Sec. 522(b)(5), Oct. 21, 1998, 112 Stat.
    2565.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 1437d(c)(4)(A) of this title, referred to in subsec.
    (a)(3)(A)(ii), was in the original "section 6(c)(4)(A) of the
    Housing Act of 1937", and was translated as reading "section
    6(c)(4)(A) of the United States Housing Act of 1937", act Sept. 1,
    1937, ch. 896, to reflect the probable intent of Congress. Section
    1437d(c)(4)(A) of this title was redesignated section
    1437d(c)(5)(A) of this title by Pub. L. 109-162, title VI, Sec.
    607(1), Jan. 5, 2006, 119 Stat. 3048.
      Section 1437g(d)(1) of this title, referred to in subsec. (d)(5),
    was in the original "section 9(d)(1) of the Housing Act of 1937",
    and was translated as reading "section 9(d)(1) of the United States
    Housing Act of 1937", act Sept. 1, 1937, ch. 896, to reflect the
    probable intent of Congress.
      The Emergency Low Income Housing Preservation Act of 1987,
    referred to in subsec. (d)(6), is title II of Pub. L. 100-242, Feb.
    5, 1988, 102 Stat. 1877, as amended, which was classified
    principally as a note under section 1715l of Title 12, Banks and
    Banking. Title II of Pub. L. 100-242, was amended generally by Pub.
    L. 101-625, title VI, Sec. 601(a), Nov. 28, 1990, 104 Stat. 4249,
    and is now known as the Low-Income Housing Preservation and
    Resident Homeownership Act of 1990, which is classified principally
    to chapter 42 (Sec. 4101 et seq.) of Title 12. For complete
    classification of this Act to the Code, see Short Title note set
    out under section 4101 of Title 12 and Tables.

-MISC1-
                                AMENDMENTS                            
      1998 - Subsec. (d)(5). Pub. L. 105-276 substituted "section
    1437g(d)(1)" for "section 1437l".
      1992 - Subsec. (a)(1). Pub. L. 102-550, Sec. 207(a), inserted "to
    provide for the payment of reasonable administrative and planning
    costs, to provide for the payment of operating expenses of
    community housing development organizations," after "or
    organizations,".
      Pub. L. 102-550, Sec. 205, inserted at end "For the purpose of
    this part, the term 'affordable housing' includes permanent housing
    for disabled homeless persons, transitional housing, and single
    room occupancy housing."
      Subsec. (a)(2). Pub. L. 102-550, Sec. 203(a)(1), struck out
    "under paragraph (3) of this subsection or" after "authorized" in
    concluding provisions.
      Subsec. (a)(3). Pub. L. 102-550, Sec. 204(b), added cl. (ii) of
    par. (3)(A) and struck out former cl. (ii) which read as follows:
    "the tenant-based rental assistance is provided to persons from the
    waiting lists eligible for section 8 assistance in accordance with
    the applicable preferences."
      Pub. L. 102-550, Sec. 204(a), added subpar. (E).
      Pub. L. 102-550, Sec. 203(a)(2), (3), redesignated par. (4) as
    (3) and struck out former par. (3) which provided for conditions
    for new construction of housing.
      Subsec. (a)(4). Pub. L. 102-550, Sec. 203(a)(3), redesignated
    par. (4) as (3).
      Subsec. (a)(5). Pub. L. 102-550, Sec. 1012(e), added par. (5).
      Subsec. (c). Pub. L. 102-550, Sec. 207(b)(3), added subsec. (c).
    Former subsec. (c) redesignated (d).
      Pub. L. 102-550, Sec. 207(b)(1), inserted before comma at end of
    par. (1) "that exceed the amount specified under subsection (c) of
    this section".
      Subsec. (d). Pub. L. 102-550, Sec. 207(b)(2), redesignated
    subsec. (c) as (d). Former subsec. (d) redesignated (e).
      Pub. L. 102-550, Sec. 206, inserted after first sentence of par.
    (1) "For multifamily housing, such limits shall not be less than
    the per unit dollar amount limitations set forth in section
    1715l(d)(3)(ii) of title 12, as such limitations may be adjusted in
    accordance therewith, except that for purposes of this subsection
    the Secretary shall, by regulation, increase the per unit dollar
    amount limitations in any geographical area by an amount, not to
    exceed 140 percent, that equals the amount by which the costs of
    multifamily housing construction in the area exceed the national
    average of such costs."
      Subsecs. (e), (f). Pub. L. 102-550, Sec. 207(b)(2), redesignated
    subsecs. (d) and (e) as (e) and (f), respectively.
      Subsec. (g). Pub. L. 102-550, Sec. 207(d), added subsec. (g).

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Amendment by title V of Pub. L. 105-276 effective and applicable
    beginning upon Oct. 1, 1999, except as otherwise provided, with
    provision that Secretary may implement amendment before such date,
    except to extent that such amendment provides otherwise, and with
    savings provision, see section 503 of Pub. L. 105-276, set out as a
    note under section 1437 of this title.

                     EFFECTIVE DATE OF 1992 AMENDMENT                 
      Amendment by sections 203-207 of Pub. L. 102-550 applicable to
    unexpended funds allocated under subchapter II of this chapter in
    fiscal year 1992, except as otherwise specifically provided, see
    section 223 of Pub. L. 102-550, set out as a note under section
    12704 of this title.

-FOOTNOTE-
    (!1) See References in Text note below.

-End-

-CITE-
    42 USC Sec. 12743                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING
    Part A - HOME Investment Partnerships

-HEAD-
    Sec. 12743. Development of model programs

-STATUTE-
    (a) In general
      The Secretary shall - 
        (1) in cooperation with participating jurisdictions, government-
      sponsored mortgage finance corporations, nonprofit
      organizations, the private sector, and other appropriate parties,
      develop, test, evaluate, refine, and, as necessary, replace a
      selection of model programs designed to carry out the purposes of
      this subchapter;
        (2) make available to participating jurisdictions alternative
      model programs, which shall include suggested guidelines,
      procedures, forms, legal documents and such other elements as the
      Secretary determines to be appropriate;
        (3) assure, insofar as is feasible, the availability of an
      appropriate variety of model programs designed for local market
      conditions, housing problems, project characteristics, and
      managerial capacities as they differ among participating
      jurisdictions;
        (4) negotiate and enter into agreements with agencies of the
      Federal Government, participating jurisdictions, private
      financial institutions, government-sponsored mortgage finance
      corporations, nonprofit organizations, and other entities to
      provide such services, products, or financing as may be required
      for the implementation of a model program;
        (5) provide detailed information on model programs as requested
      by participating jurisdictions, private financial institutions,
      developers, nonprofit organizations, and other interested
      parties; and
        (6) encourage the use of such model programs to achieve
      efficiency, economies of scale, and effectiveness in the
      investment of funds made available under this part through third-
      party training, printed materials, and such other means of
      support as the Secretary determines will achieve the purpose of
      this subchapter.
    (b) Adoption of programs
      Except as provided in section 12753(2) of this title, each
    participating jurisdiction shall have the discretion to adopt one
    or more model programs, adapt one or more model programs to its own
    requirements, design additional forms of assistance by itself or in
    cooperation with other participating jurisdictions, and suggest
    additional model programs for adoption by the Secretary as the
    participating jurisdiction may deem appropriate, and the Secretary
    may assist a participating jurisdiction in adopting, adapting, or
    designing one or more model programs.
    (c) Part D programs
      The selection of model programs to be made available for adoption
    or adaptation shall include programs meeting the criteria set forth
    in part D of this subchapter.

-SOURCE-
    (Pub. L. 101-625, title II, Sec. 213, Nov. 28, 1990, 104 Stat.
    4100.)

-End-

-CITE-
    42 USC Sec. 12744                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING
    Part A - HOME Investment Partnerships

-HEAD-
    Sec. 12744. Income targeting

-STATUTE-
      Each participating jurisdiction shall invest funds made available
    under this part within each fiscal year so that - 
        (1) with respect to rental assistance and rental units - 
          (A) not less than 90 percent of (i) the families receiving
        such rental assistance are families whose incomes do not exceed
        60 percent of the median family income for the area, as
        determined by the Secretary with adjustments for smaller and
        larger families, (except that the Secretary may establish
        income ceilings higher or lower than 60 percent of the median
        for the area on the basis of the Secretary's findings that such
        variations are necessary because of prevailing levels of
        construction cost or fair market rent, or unusually high or low
        family income) at the time of occupancy or at the time funds
        are invested, whichever is later, or (ii) the dwelling units
        assisted with such funds are occupied by families having such
        incomes; and
          (B) the remainder of (i) the families receiving such rental
        assistance are households that qualify as low-income families
        (other than families described in subparagraph (A)) at the time
        of occupancy or at the time funds are invested, whichever is
        later, or (ii) the dwelling units assisted with such funds are
        occupied by such households;

        (2) with respect to homeownership assistance, 100 percent of
      such funds are invested with respect to dwelling units that are
      occupied by households that qualify as low-income families; and
        (3) all such funds are invested with respect to housing that
      qualifies as affordable housing under section 12745 of this
      title.

-SOURCE-
    (Pub. L. 101-625, title II, Sec. 214, Nov. 28, 1990, 104 Stat.
    4101; Pub. L. 103-233, title II, Sec. 202, Apr. 11, 1994, 108 Stat.
    364; Pub. L. 105-276, title V, Sec. 599B(a), Oct. 21, 1998, 112
    Stat. 2660.)

-MISC1-
                                AMENDMENTS                            
      1998 - Par. (2). Pub. L. 105-276 struck out "at the time of
    occupancy or at the time funds are invested, whichever is later"
    before "; and".
      1994 - Par. (1)(A). Pub. L. 103-233, Sec. 202(1), substituted
    "(i) the families receiving such rental assistance are" for "such
    funds are invested with respect to dwelling units that are occupied
    by", ", or" for ", and" before cl. (ii), and added cl. (ii).
      Par. (1)(B). Pub. L. 103-233, Sec. 202(2), substituted "(i) the
    families receiving such rental assistance are" for "such funds are
    invested with respect to dwelling units that are occupied by" and
    added cl. (ii).

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Pub. L. 105-276, title V, Sec. 599B(c), Oct. 21, 1998, 112 Stat.
    2660, provided that: "The amendments made by this section [amending
    this section and section 12745 of this title] are made on, and
    shall apply beginning upon, the date of the enactment of this Act
    [Oct. 21, 1998]."

                     EFFECTIVE DATE OF 1994 AMENDMENT                 
      Amendment by Pub. L. 103-233 applicable with respect to any
    amounts made available to carry out this subchapter after Apr. 11,
    1994, and any amounts made available to carry out this subchapter
    before that date that remain uncommitted on that date, with
    Secretary to issue any regulations necessary to carry out such
    amendment not later than end of 45-day period beginning on that
    date, see section 209 of Pub. L. 103-233, set out as a note under
    section 5301 of this title.

-End-

-CITE-
    42 USC Sec. 12745                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING
    Part A - HOME Investment Partnerships

-HEAD-
    Sec. 12745. Qualification as affordable housing

-STATUTE-
    (a) Rental housing
      (1) Qualification
        Housing that is for rental shall qualify as affordable housing
      under this subchapter only if the housing - 
          (A) bears rents not greater than the lesser of (i) the
        existing fair market rent for comparable units in the area as
        established by the Secretary under section 1437f of this title,
        or (ii) a rent that does not exceed 30 percent of the adjusted
        income of a family whose income equals 65 percent of the median
        income for the area, as determined by the Secretary, with
        adjustment for number of bedrooms in the unit, except that the
        Secretary may establish income ceilings higher or lower than 65
        percent of the median for the area on the basis of the
        Secretary's findings that such variations are necessary because
        of prevailing levels of construction costs or fair market
        rents, or unusually high or low family incomes;
          (B) has not less than 20 percent of the units (i) occupied by
        very low-income families who pay as a contribution toward rent
        (excluding any Federal or State rental subsidy provided on
        behalf of the family) not more than 30 percent of the family's
        monthly adjusted income as determined by the Secretary, or (ii)
        occupied by very low-income families and bearing rents not
        greater than the gross rent for rent-restricted residential
        units as determined under section 42(g)(2) of title 26;
          (C) is occupied only by households that qualify as low-income
        families;
          (D) is not refused for leasing to a holder of a voucher or
        certificate of eligibility under section 1437f of this title
        because of the status of the prospective tenant as a holder of
        such voucher or certificate of eligibility;
          (E) will remain affordable, according to binding commitments
        satisfactory to the Secretary, for the remaining useful life of
        the property, as determined by the Secretary, without regard to
        the term of the mortgage or to transfer of ownership, or for
        such other period that the Secretary determines is the longest
        feasible period of time consistent with sound economics and the
        purposes of this Act, except upon a foreclosure by a lender (or
        upon other transfer in lieu of foreclosure) if such action (i)
        recognizes any contractual or legal rights of public agencies,
        nonprofit sponsors, or others to take actions that would avoid
        termination of low-income affordability in the case of
        foreclosure or transfer in lieu of foreclosure, and (ii) is not
        for the purpose of avoiding low income affordability
        restrictions, as determined by the Secretary; and
          (F) if newly constructed, meets the energy efficiency
        standards promulgated by the Secretary in accordance with
        section 12709 of this title.
      (2) Adjustment of qualifying rent
        The Secretary may adjust the qualifying rent established for a
      project under subparagraph (A) of paragraph (1), only if the
      Secretary finds that such adjustment is necessary to support the
      continued financial viability of the project and only by such
      amount as the Secretary determines is necessary to maintain
      continued financial viability of the project.
      (3) Increases in tenant income
        Housing shall qualify as affordable housing despite a temporary
      noncompliance with subparagraph (B) or (C) of paragraph (1) if
      such noncompliance is caused by increases in the incomes of
      existing tenants and if actions satisfactory to the Secretary are
      being taken to ensure that all vacancies are filled in accordance
      with paragraph (1) until such noncompliance is corrected. Tenants
      who no longer qualify as low-income families shall pay as rent
      the lesser of the amount payable by the tenant under State or
      local law or 30 percent of the family's adjusted monthly income,
      as recertified annually. The preceding sentence shall not apply
      with respect to funds made available under this Act for units
      that have been allocated a low-income housing tax credit by a
      housing credit agency pursuant to section 42 of title 26.
      (4) Mixed-income project
        Housing that accounts for less than 100 percent of the dwelling
      units in a project shall qualify as affordable housing if such
      housing meets the criteria of this section.
      (5) Mixed-use project
        Housing in a project that is designed in part for uses other
      than residential use shall qualify as affordable housing if such
      housing meets the criteria of this section.
      (6) Waiver of qualifying rent
        (A) In general
          For the purpose of providing affordable housing appropriate
        for families described in subparagraph (B), the Secretary may,
        upon the application of the project owner, waive the
        applicability of subparagraph (A) of paragraph (1) with respect
        to a dwelling unit if - 
            (i) the unit is occupied by such a family, on whose behalf
          tenant-based assistance is provided under section 1437f of
          this title;
            (ii) the rent for the unit is not greater than the existing
          fair market rent for comparable units in the area, as
          established by the Secretary under section 1437f of this
          title; and
            (iii) the Secretary determines that the waiver, together
          with waivers under this paragraph for other dwelling units in
          the project, will result in the use of amounts described in
          clause (iii) (!1) in an effective manner that will improve
          the provision of affordable housing for such families.

        (B) Eligible families
          A family described in this subparagraph is a family that
        consists of at least one elderly person (who is the head of
        household) and one or more of such person's grand (!2)
        children, great grandchildren, great nieces, great nephews, or
        great great grandchildren (as defined by the Secretary), but
        does not include any parent of such grandchildren, great
        grandchildren, great nieces, great nephews, or great great
        grandchildren. Such term includes any such grandchildren, great
        grandchildren, great nieces, great nephews, or great great
        grandchildren who have been legally adopted by such elderly
        person.

    (b) Homeownership
      Housing that is for homeownership shall qualify as affordable
    housing under this subchapter only if the housing - 
        (1) has an initial purchase price that does not exceed 95
      percent of the median purchase price for the area, as determined
      by the Secretary with such adjustments for differences in
      structure, including whether the housing is single-family or
      multifamily, and for new and old housing as the Secretary
      determines to be appropriate;
        (2) is the principal residence of an owner whose family
      qualifies as a low-income family - 
          (A) in the case of a contract to purchase existing housing,
        at the time of purchase;
          (B) in the case of a lease-purchase agreement for existing
        housing or for housing to be constructed, at the time the
        agreement is signed; or
          (C) in the case of a contract to purchase housing to be
        constructed, at the time the contract is signed;

        (3) is subject to resale restrictions that are established by
      the participating jurisdiction and determined by the Secretary to
      be appropriate to - 
          (A) allow for subsequent purchase of the property only by
        persons who meet the qualifications specified under paragraph
        (2), at a price which will - 
            (i) provide the owner with a fair return on investment,
          including any improvements, and
            (ii) ensure that the housing will remain affordable to a
          reasonable range of low-income homebuyers; or

          (B) recapture the investment provided under this subchapter
        in order to assist other persons in accordance with the
        requirements of this subchapter, except where there are no net
        proceeds or where the net proceeds are insufficient to repay
        the full amount of the assistance; and

        (4) if newly constructed, meets the energy efficiency standards
      promulgated by the Secretary in accordance with section 12709 of
      this title.

-SOURCE-
    (Pub. L. 101-625, title II, Sec. 215, Nov. 28, 1990, 104 Stat.
    4101; Pub. L. 102-550, title II, Secs. 208, 209, Oct. 28, 1992, 106
    Stat. 3754; Pub. L. 103-233, title II, Sec. 203, Apr. 11, 1994, 108
    Stat. 364; Pub. L. 105-276, title V, Sec. 599B(b), Oct. 21, 1998,
    112 Stat. 2660; Pub. L. 106-569, title IX, Sec. 904, Dec. 27, 2000,
    114 Stat. 3027.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This Act, referred to in subsec. (a)(1)(E), (3), is Pub. L. 101-
    625, Nov. 28, 1990, 104 Stat. 4079, known as the Cranston-Gonzalez
    National Affordable Housing Act. For complete classification of
    this Act to the Code, see Short Title note set out under section
    12701 of this title and Tables.

-MISC1-
                                AMENDMENTS                            
      2000 - Subsec. (a)(6). Pub. L. 106-569 added par. (6).
      1998 - Subsec. (b)(2). Pub. L. 105-276 amended par. (2)
    generally. Prior to amendment, par. (2) read as follows: "is the
    principal residence of an owner whose family qualifies as a low-
    income family at the time of purchase;".
      1994 - Subsec. (b)(3). Pub. L. 103-233, Sec. 203(a), redesignated
    par. (4) as (3) and struck out former par. (3) which read as
    follows: "is made available for initial purchase only to first-time
    homebuyers;".
      Subsec. (b)(3)(B). Pub. L. 103-233, Sec. 203(b), substituted
    "subchapter" for "subsection" after "requirements of this".
      Subsec. (b)(4), (5). Pub. L. 103-233, Sec. 203(a)(2),
    redesignated pars. (4) and (5) as (3) and (4), respectively.
      1992 - Subsec. (a)(1)(A). Pub. L. 102-550, Sec. 208(a)(1),
    substituted "number of bedrooms in the unit" for "smaller and
    larger families".
      Subsec. (a)(1)(E). Pub. L. 102-550, Sec. 208(b), inserted before
    semicolon ", except upon a foreclosure by a lender (or upon other
    transfer in lieu of foreclosure) if such action (i) recognizes any
    contractual or legal rights of public agencies, nonprofit sponsors,
    or others to take actions that would avoid termination of low-
    income affordability in the case of foreclosure or transfer in
    lieu of foreclosure, and (ii) is not for the purpose of avoiding
    low income affordability restrictions, as determined by the
    Secretary".
      Subsec. (a)(3). Pub. L. 102-550, Sec. 208(a)(2), (3), substituted
    "the lesser of the amount payable by the tenant under State or
    local law or" for "not less than" in second sentence and inserted
    at end "The preceding sentence shall not apply with respect to
    funds made available under this Act for units that have been
    allocated a low-income housing tax credit by a housing credit
    agency pursuant to section 42 of title 26."
      Subsec. (b)(4). Pub. L. 102-550, Sec. 209, added par. (4) and
    struck out former par. (4) which read as follows: "is made
    available for subsequent purchase only - 
        "(A) to persons who meet the qualifications specified under
      paragraph (2), and
        "(B) at a price consistent with guidelines that are established
      by the participating jurisdiction and determined by the Secretary
      to be appropriate - 
          "(i) to provide the owner with a fair return on investment,
        including any improvements, and
          "(ii) to ensure that the housing will remain affordable to a
        reasonable range of low income homebuyers; and".

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Amendment by Pub. L. 105-276 made on, and applicable beginning
    upon, Oct. 21, 1998, see section 599B(c) of Pub. L. 105-276, set
    out as a note under section 12744 of this title.

                     EFFECTIVE DATE OF 1994 AMENDMENT                 
      Amendment by Pub. L. 103-233 applicable with respect to any
    amounts made available to carry out this subchapter after Apr. 11,
    1994, and any amounts made available to carry out this subchapter
    before that date that remain uncommitted on that date, with
    Secretary to issue any regulations necessary to carry out such
    amendment not later than end of 45-day period beginning on that
    date, see section 209 of Pub. L. 103-233, set out as a note under
    section 5301 of this title.

                     EFFECTIVE DATE OF 1992 AMENDMENT                 
      Amendment by Pub. L. 102-550 applicable to unexpended funds
    allocated under subchapter II of this chapter in fiscal year 1992,
    except as otherwise specifically provided, see section 223 of Pub.
    L. 102-550, set out as a note under section 12704 of this title.

-FOOTNOTE-
    (!1) So in original.

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

-End-

-CITE-
    42 USC Sec. 12746                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING
    Part A - HOME Investment Partnerships

-HEAD-
    Sec. 12746. Participation by States and local governments

-STATUTE-
      The Secretary shall designate a State or unit of general local
    government to be a participating jurisdiction when it complies with
    procedures that the Secretary shall establish by regulation, which
    procedures shall only provide for the following:
      (1) Allocation
        Not later than 20 days after funds to carry out this part
      become available (or, during the first year after November 28,
      1990, not later than 20 days after (A) funds to carry out this
      part are provided in an appropriations Act, or (B) regulations to
      implement this part are promulgated, whichever is later), the
      Secretary shall allocate funds in accordance with section 12747
      of this title and promptly notify each jurisdiction receiving a
      formula allocation of its allocation amount. If a jurisdiction is
      not already a participating jurisdiction, the Secretary shall
      inform the jurisdiction in writing how the jurisdiction may
      become a participating jurisdiction.
      (2) Consortia
        A consortium of geographically contiguous units of general
      local government shall be deemed to be a unit of general local
      government for purposes of this subchapter if the Secretary
      determines that the consortium - 
          (A) has sufficient authority and administrative capability to
        carry out the purposes of this subchapter on behalf of its
        member jurisdictions, and
          (B) will, according to a written certification by the State
        (or States, if the consortium includes jurisdictions in more
        than one State), direct its activities to alleviation of
        housing problems within the State or States.
      (3) Eligibility
        (A) Except as provided in paragraph (10), a jurisdiction
      receiving a formula allocation under section 12747 of this title
      shall be eligible to become a participating jurisdiction if its
      formula allocation is $750,000 or greater, or if the Secretary
      finds that - 
          (i) the jurisdiction has a local housing authority and has
        demonstrated a capacity to carry out provisions of this part,
        and
          (ii) the State has authorized the Secretary to transfer to
        the jurisdiction a portion of the State's allocation that is
        equal to or greater than the difference between the
        jurisdiction's formula allocation and $750,000, or the State or
        jurisdiction has made available from the State's or
        jurisdiction's own sources an equal amount for use by the
        jurisdiction in conformance with the provisions of this part.

        (B) If a jurisdiction has met the requirements of subparagraph
      (A), the jurisdiction's formula allocation for a fiscal year
      shall subsequently be deemed to equal the sum of the
      jurisdiction's allocation under section 12747(a)(1) of this title
      and the amount made available to the jurisdiction under
      subparagraph (A)(ii).
      (4) Notification
        If an eligible jurisdiction notifies the Secretary in writing,
      not later than 30 days after receiving notification under
      paragraph (1), of its intention to become a participating
      jurisdiction, the Secretary shall reserve an amount equal to the
      jurisdiction's allocation (plus any reallocations for which the
      jurisdiction is eligible under section 12747(d)(1) of this title)
      pending the jurisdiction's designation as a participating
      jurisdiction. The Secretary shall reallocate, in accordance with
      paragraph (6) of this section, any funds reserved under the
      previous sentence if the Secretary determines that the
      jurisdiction will not meet the requirements for designation as a
      participating jurisdiction within a reasonable period of time.
      (5) Submission of strategy
        Not later than 90 days after providing notification under
      paragraph (4), an eligible jurisdiction shall submit to the
      Secretary a comprehensive housing affordability strategy in
      accordance with section 12705 of this title.
      (6) Reallocation
        If the Secretary determines that a jurisdiction has failed to
      meet the requirements of the previous 3 paragraphs or if the
      Secretary, after providing for amendments and resubmissions in
      accordance with section 12705(c)(3) of this title, disapproves
      the jurisdiction's comprehensive housing affordability strategy,
      the Secretary shall reallocate any funds reserved for the
      jurisdiction as follows:
        (A) State
          If a State has failed to meet the requirements, the Secretary
        shall - 
            (i) make any funds reserved for the State available by
          direct reallocation among applications submitted by units of
          general local government within the State or consortia that
          include units of general local government within the State,
          insofar as approvable applications meeting the selection
          criteria under section 12747(c) of this title are received
          within 12 months after the funds become available for the
          direct reallocation, and
            (ii) reallocate the remainder by formula in accordance with
          section 12747(b) of this title.
        (B) Local
          If a unit of general local government has failed to meet the
        requirements and is located in a State that is a participating
        jurisdiction, the Secretary shall reallocate to the State any
        funds reserved for the locality, with preference going to the
        provision of affordable housing within the locality.
        (C) Direct reallocation
          If a unit of general local government has failed to meet the
        requirements and is located in a State that is not a
        participating jurisdiction, the Secretary shall - 
            (i) make any funds reserved for the locality available for
          use within the State by direct reallocation among units of
          general local government and community housing development
          organizations, insofar as approvable applications meeting the
          selection criteria under section 12747(c) of this title are
          received within 12 months after the funds become available
          for the direct reallocation with priority going to
          applications for affordable housing within the locality, and
            (ii) reallocate the remainder in accordance with section
          12747(b) of this title.
        (D) Certain jurisdictions deemed to be participating
          jurisdictions
          If a State or unit of general local government is meeting the
        requirements of paragraphs (3), (4), and (5), it shall be
        deemed to be a participating jurisdiction for purposes of
        reallocation under this paragraph.
      (7) Designation
        The Secretary shall designate an eligible jurisdiction to be a
      participating jurisdiction as soon as its comprehensive housing
      affordability strategy is approved in accordance with section
      12705 of this title.
      (8) Continuous designation
        Once a State or unit of general local government is designated
      a participating jurisdiction, it shall remain a participating
      jurisdiction for subsequent fiscal years, except as provided in
      paragraph (9). The provisions of paragraphs (3) through (6) shall
      not apply to participating jurisdictions.
      (9) Revocation
        The Secretary may revoke a jurisdiction's designation as a
      participating jurisdiction if - 
          (A) the Secretary finds, after reasonable notice and
        opportunity for hearing, that the jurisdiction is unwilling or
        unable to carry out the provisions of this subchapter, or
          (B) the jurisdiction's allocation falls below $750,000 for 3
        consecutive years, below $625,000 for 2 consecutive years, or
        the jurisdiction does not receive a formula allocation of
        $500,000 or more in any 1 year, except as provided in paragraph
        (10).

      If a jurisdiction's designation as a participating jurisdiction
      is revoked, any remaining line of credit in the jurisdiction's
      HOME Investment Trust Fund established under section 12748 of
      this title shall be reallocated in accordance with paragraph (6)
      of this section.
      (10) Threshold reduction
        If the amount appropriated pursuant to section 12724 of this
      title for any fiscal year is less than $1,500,000,000, then this
      section shall be applied during that year - 
          (A) by substituting "$500,000" for "$750,000" both places it
        appears in paragraph (3); and
          (B) by substituting "$500,000", "$410,000", and "$335,000"
        for "$750,000", "$625,000", and "$500,000", respectively, where
        they appear in paragraph (9).

-SOURCE-
    (Pub. L. 101-625, title II, Sec. 216, Nov. 28, 1990, 104 Stat.
    4103; Pub. L. 102-550, title II, Sec. 202(a), Oct. 28, 1992, 106
    Stat. 3751.)

-MISC1-
                                AMENDMENTS                            
      1992 - Par. (3)(A). Pub. L. 102-550, Sec. 202(a)(1), substituted
    "Except as provided in paragraph (10), a jurisdiction" for "A
    jurisdiction".
      Par. (9)(B). Pub. L. 102-550, Sec. 202(a)(2), inserted ", except
    as provided in paragraph (10)" after "in any 1 year".
      Par. (10). Pub. L. 102-550, Sec. 202(a)(3), added par. (10).

                     EFFECTIVE DATE OF 1992 AMENDMENT                 
      Amendment by Pub. L. 102-550 applicable to unexpended funds
    allocated under subchapter II of this chapter in fiscal year 1992,
    except as otherwise specifically provided, see section 223 of Pub.
    L. 102-550, set out as a note under section 12704 of this title.

                     APPLICABILITY OF GRANT THRESHOLDS                 
      Section 202(c) of Pub. L. 102-550 provided that: "Notwithstanding
    any other provision of law, the grant thresholds provided for in
    section 216 [42 U.S.C. 12746], as amended by this section, and the
    grant thresholds provided for in section 217(b) of the Cranston-
    Gonzalez National Affordable Housing Act [42 U.S.C. 12747(b)], as
    amended by this section, shall apply."

-End-

-CITE-
    42 USC Sec. 12747                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING
    Part A - HOME Investment Partnerships

-HEAD-
    Sec. 12747. Allocation of resources

-STATUTE-
    (a) In general
      (1) States and units of general local government
        After reserving amounts under paragraph (3) for the insular
      areas, the Secretary shall allocate funds approved in an
      appropriation Act to carry out this subchapter by formula as
      provided in subsection (b) of this section. Of the funds made
      available under the preceding sentence, the Secretary shall
      initially allocate 60 percent among units of general local
      government and 40 percent among States.
      (2) Repealed. Pub. L. 104-330, title V, Sec. 505(a)(1)(B), Oct.
        26, 1996, 110 Stat. 4044
      (3) (!1) Insular areas

        For each fiscal year, of any amounts approved in appropriation
      Acts to carry out this subchapter, the Secretary shall reserve
      for grants to the insular areas the greater of (A) $750,000, or
      (B) 0.2 percent of the amounts appropriated under such Acts. The
      Secretary shall provide for the distribution of amounts reserved
      under this paragraph among the insular areas pursuant to specific
      criteria for such distribution, which shall be contained in a
      regulation issued by the Secretary.
    (b) Formula allocation
      (1) In general
        (A) Basic formula
          The Secretary shall establish in (!2) regulation an
        allocation formula that reflects each jurisdiction's share of
        total need among eligible jurisdiction (!3) for an increased
        supply of affordable housing for very low-income and low-income
        families of different size, as identified by objective measures
        of inadequate housing supply, substandard housing, the number
        of low-income families in housing likely to be in need of
        rehabilitation, the costs of producing housing, poverty, and
        the relative fiscal incapacity of the jurisdiction to carry out
        housing activities eligible under section 12742 of this title
        without Federal assistance. Allocation among units of general
        local government shall take into account the housing needs of
        metropolitan cities, urban counties, and approved consortia of
        units of general local government.

        (B) Source of data
          The data to be used for formula allocation of funds within a
        fiscal year shall be data obtained from a standard source that
        are available to the Secretary 90 days prior to the beginning
        of that fiscal year.
        (C) Use of basic formula
          The basic formula established under subparagraph (A) shall be
        used for all formula allocations and reallocations provided for
        in this part.
        (D) Weights
          When allocation is made among States, the Secretary shall
        apply the formula in subparagraph (A) giving 20 percent weight
        to measures of need for the whole State and 80 percent weight
        to measures of need among units of general local government
        that are not receiving an allocation under section 12746(1) of
        this title.
        (E) Adjustments
          In developing the basic formula in subparagraph (A), the
        Secretary shall (i) avoid the allocation of an excessively
        large share of amounts made available under this part to any
        one State or unit of general local government, and (ii) take
        into account the need for a geographic distribution of amounts
        made available under this part that appropriately reflects the
        housing need in each region of the Nation.
        (F) Consultation
          The Secretary shall develop the formula in subparagraph (A)
        in ongoing consultation with (i) the Subcommittee on Housing
        and Urban Affairs of the Committee on Banking, Housing, and
        Urban Affairs of the Senate, (ii) the Subcommittee on Housing
        and Community Development of the Committee on Banking, Finance
        and Urban Affairs of the House of Representatives, and (iii)
        organizations representing States and units of general local
        government. Not less than 60 days prior to publishing a formula
        for comment, the Secretary shall submit to the Committee on
        Banking, Housing, and Urban Affairs of the Senate and the
        Committee on Banking, Finance and Urban Affairs of the House of
        Representatives a copy of the formula the Secretary intends to
        propose.
      (2) Minimum State allocation
        (A) In general
          If the formula, when applied to funds approved under this
        section in appropriations Acts for a fiscal year, would
        allocate less than $3,000,000 to any State, the allocation for
        such State shall be $3,000,000, and the increase shall be
        deducted pro rata from the allocations of other States.
        (B) Increased minimum allocation
          If no unit of general local government within a State
        receives an allocation under paragraph (3), the State's
        allocation shall be increased by $500,000. Priority for use of
        such increased allocation shall go to the provision of
        affordable housing within the boundaries of metropolitan
        cities, urban counties, and approved consortia within the
        State, based on the need for such funds. The increased
        allocation to a State under the preceding sentence shall be
        derived by a pro rata deduction from the allocations to units
        of general local government in all States, except that such pro
        rata deduction shall not reduce the allocation of any unit of
        general local government below $500,000.
      (3) Minimum local allocation
        The Secretary shall allocate funds available for formula
      allocation to units of general local government that, as of the
      end of the previous fiscal year, qualified as metropolitan
      cities, urban counties, and consortia approved by the Secretary
      in accordance with section 12746(2) of this title so that, when
      all such funds are initially allocated by formula, jurisdictions
      that are allocated an amount of $500,000 or more, and
      participating jurisdictions (other than consortia that fail to
      renew the membership of all of their member jurisdictions) that
      are allocated an amount less than $500,000, shall receive an
      allocation. Prior to announcing initial allocations, the
      Secretary shall successively recalculate the allocations to
      jurisdictions under this subsection so that the maximum number of
      such jurisdictions can receive initial allocations, except as
      provided in paragraph (4).
      (4) Threshold reduction
        If the amount appropriated pursuant to section 12724 of this
      title for any fiscal year is less than $1,500,000,000, then this
      section shall be applied during that year by substituting
      "$335,000" for "$500,000" where it appears in paragraph (3).
    (c) Criteria for direct reallocation
      The Secretary shall establish objective criteria for making
    direct reallocations to any participating jurisdiction and other
    eligible entities. A jurisdiction shall be eligible for a direct
    reallocation under this subsection only if the jurisdiction, in a
    form acceptable to the Secretary, submits an application that
    demonstrates to the satisfaction of the Secretary that the
    jurisdiction is engaged, or has made good faith efforts to engage,
    in cooperative efforts between the State and appropriate
    participating jurisdictions within the State to develop,
    coordinate, and implement housing strategies under this subchapter.
    The Secretary shall by regulation establish objective selection
    criteria for such direct reallocations, which criteria shall take
    into account - 
        (1) the applicant's demonstrated commitment to expand the
      supply of affordable rental housing, including units developed by
      public housing agencies, as indicated by the additional number of
      units of affordable housing made available through production or
      rehabilitation within the previous 2 years, making adjustment for
      regional variations in construction and rehabilitation costs and
      giving special consideration to the number of additional units
      made available under this subchapter through production or
      rehabilitation, including units developed by public housing
      agencies, in relation to the amounts made available under this
      program;
        (2) the applicant's actions that - 
          (A) direct funds made available under this part to benefit
        very low-income families, with a range of incomes, in amounts
        that exceed the income targeting requirements of section 12744
        of this title, with extra consideration given for activities
        that expand the supply of affordable housing for very low-
        income families whose incomes do not exceed 30 percent of the
        median family income for the area, as determined by the
        Secretary;
          (B) apply the tenant selection preference categories
        applicable under section 1437f of this title to the selection
        of tenants for housing assisted under this part;
          (C) provide matching resources in excess of funds required
        under section 12750 of this title; and
          (D) stimulate a high degree of investment and participation
        in development by the private sector, including nonprofit
        organizations; and

        (3) the degree to which the applicant is pursuing policies that
      - 
          (A) make existing housing more affordable;
          (B) remove or ameliorate any negative effects that public
        policies identified by the applicant pursuant to section
        12705(b)(4) of this title may have on the cost of housing or
        the incentives to develop, maintain, or improve affordable
        housing in the jurisdiction;
          (C) preserve the affordability of privately-owned housing
        that is vulnerable to conversion, demolition, disinvestment, or
        abandonment;
          (D) increase the supply of housing that is affordable to very
        low-income and low-income persons, particularly in areas that
        are accessible to expanding job opportunities; and
          (E) remedy the effects of discrimination and improve housing
        opportunities for disadvantaged minorities.
    (d) Reallocations
      (1) In general
        The Secretary shall make any reallocations periodically
      throughout each fiscal year so as to ensure that all funds to be
      reallocated are made available to eligible jurisdictions as soon
      as possible, consistent with orderly program administration.
      Jurisdictions eligible for such reallocations shall include
      participating jurisdictions and jurisdictions meeting the
      requirements of paragraphs (3), (4), and (5) of section 12746 of
      this title.
      (2) Commitments
        The Secretary shall establish procedures according to which
      participating jurisdictions may make commitments to invest funds
      made available under this section. Such procedures shall provide
      for appropriate stages of commitment of funds to a project from
      initial reservation through binding commitment. Notwithstanding
      any other provision of this subchapter, funds that the Secretary
      determines are needed to fulfill binding commitments shall not be
      available for reallocation.
      (3) Limitation
        Unless otherwise specified in this part, any reallocation of
      funds from a State shall be made only among all participating
      States, and any reallocation of funds from units of general local
      government shall be made only among all participating units of
      general local government.

-SOURCE-
    (Pub. L. 101-625, title II, Sec. 217, Nov. 28, 1990, 104 Stat.
    4105; Pub. L. 102-229, title I, Dec. 12, 1991, 105 Stat. 1709; Pub.
    L. 102-230, Sec. 1, Dec. 12, 1991, 105 Stat. 1720; Pub. L. 102-273,
    Sec. 1, Apr. 21, 1992, 106 Stat. 113; Pub. L. 102-389, title II,
    Oct. 6, 1992, 106 Stat. 1581; Pub. L. 102-550, title II, Secs.
    202(b), 203(b), 211(a)(2), Oct. 28, 1992, 106 Stat. 3751, 3752,
    3756; Pub. L. 104-330, title V, Sec. 505(a)(1), Oct. 26, 1996, 110
    Stat. 4044; Pub. L. 105-65, title II, Sec. 214, Oct. 27, 1997, 111
    Stat. 1366.)

-MISC1-
                                AMENDMENTS                            
      1997 - Subsec. (b)(3). Pub. L. 105-65, in first sentence,
    substituted "jurisdictions that are allocated an amount of $500,000
    or more, and participating jurisdictions (other than consortia that
    fail to renew the membership of all of their member jurisdictions)
    that are allocated an amount less than $500,000, shall receive an
    allocation" for "only those jurisdictions that are allocated an
    amount of $500,000 or greater shall receive an allocation".
      1996 - Subsec. (a)(1). Pub. L. 104-330, Sec. 505(a)(1)(A), struck
    out "reserving amounts under paragraph (2) for Indian tribes and
    after" after "After".
      Subsec. (a)(2). Pub. L. 104-330, Sec. 505(a)(1)(B), struck out
    heading and text of par. (2). Text read as follows: "For each
    fiscal year, of the amount approved in an appropriations Act to
    carry out this subchapter, the Secretary shall reserve for grants
    to Indian tribes 1 percent of the amount appropriated under such
    section. The Secretary shall provide for distribution of amounts
    under this paragraph to Indian tribes on the basis of a competition
    conducted pursuant to specific criteria for the selection of Indian
    tribes to receive such amounts. The criteria shall be contained in
    a regulation promulgated by the Secretary after notice and public
    comment."
      1992 - Subsec. (a)(1). Pub. L. 102-550, Sec. 211(a)(2)(A), added
    first sentence and struck out former first sentence which read as
    follows: "After reserving amounts for Indian tribes as required by
    paragraph (2) of this subsection and after reserving amounts for
    the insular areas under paragraph (3), the Secretary shall allocate
    funds approved in an appropriations Act to carry out this
    subchapter by formula as provided in subsection (b) of this
    section."
      Pub. L. 102-389 made identical amendment to those made by Pub. L.
    102-229 and Pub. L. 102-230, Sec. 1(1). See 1991 Amendment note
    below.
      Subsec. (a)(3). Pub. L. 102-550, Sec. 211(a)(2)(D), and Pub. L.
    102-389 both added new pars. (3) related to insular areas. The text
    reflects the par. (3) added by Pub. L. 102-550. The par. (3) added
    by Pub. L. 102-389 read as follows: "For each fiscal year, of any
    amounts approved in appropriations Acts to carry out this
    subchapter, the Secretary shall reserve for grants to the insular
    areas the greater of (A) $750,000, or (B) 0.2 percent of the
    amounts appropriated under such Acts. The Secretary shall provide
    for the distribution of amounts reserved under this paragraph among
    the insular areas pursuant to specific criteria for such
    distribution. The criteria shall be contained in a regulation
    promulgated by the Secretary after notice and public comment."
      Pub. L. 102-550, Sec. 211(a)(2)(C), struck out par. (3), as added
    by Pub. L. 102-230, Sec. 1(2), which read as follows:
      "(A) In general. - For each fiscal year, of any amount approved
    in an appropriations Act to carry out this subchapter, the
    Secretary shall reserve for grants to the insular areas an amount
    that reflects - 
        "(i) their share of the total population of eligible
      jurisdictions; and
        "(ii) any adjustments that the Secretary determines are
      reasonable in light of available data that are related to factors
      set forth in subsection (b)(1)(B) of this section.
      "(B) Specific criteria. - The Secretary shall provide for the
    distribution of amounts reserved under this paragraph among the
    insular areas in accordance with specific criteria to be set forth
    in a regulation promulgated by the Secretary after notice and
    public comment.
      "(C) Transitional provisions. - For fiscal year 1992, the
    reservation for insular areas specified in subparagraph (A) shall
    be made from any funds which become available for reallocation in
    accordance with the provisions of section 12746(6)(A) of this
    title."
      Pub. L. 102-550, Sec. 211(a)(2)(B), struck out par. (3), as added
    by Pub. L. 102-229, which read as follows: "For each fiscal year,
    of any amounts approved in appropriations Acts to carry out this
    subchapter, the Secretary shall reserve for grants to the insular
    areas the greater of (A) $750,000, or (B) 0.5 percent of the
    amounts appropriated under such Acts. The Secretary shall provide
    for the distribution of amounts reserved under this paragraph among
    the insular areas pursuant to specific criteria for such
    distribution. The criteria shall be contained in a regulation
    promulgated by the Secretary after notice and public comment."
      Subsec. (b)(1)(A). Pub. L. 102-550, Sec. 203(b)(1), (6),
    redesignated subpar. (B) as (A) and struck out former subpar. (A)
    which provided for a formula for allocation of funds for production
    of affordable rental housing through new construction or
    substantial rehabilitation.
      Pub. L. 102-273 added cl. (iii) reading as follows:
    "Notwithstanding clauses (i) and (ii), any jurisdiction receiving
    amounts made available under such clause may, at the discretion of
    the jurisdiction, use such amounts for other eligible uses in
    accordance with section 12742 of this title if the jurisdiction
    determines that such use will better meet the housing needs within
    the jurisdiction. This clause shall be effective only with respect
    to funds provided under the Departments of Veterans Affairs and
    Housing and Urban Development, and Independent Agencies
    Appropriations Act, 1992 (Public Law 102-139; 105 Stat. 744), which
    suspends the requirement of contributions by participating
    jurisdictions, and shall become ineffective if such requirement is
    reimposed."
      Subsec. (b)(1)(B), (C). Pub. L. 102-550, Sec. 203(b)(6),
    redesignated subpars. (C) and (D) as (B) and (C), respectively.
    Former subpar. (B) redesignated (A).
      Subsec. (b)(1)(D). Pub. L. 102-550, Sec. 203(b)(6), redesignated
    subpar. (E) as (D). Former subpar. (D) redesignated (C).
      Pub. L. 102-550, Sec. 203(b)(2), substituted "The basic formula
    established under subparagraph (A)" for "Except as provided in
    subparagraph (A), the basic formula established under subparagraph
    (B)".
      Subsec. (b)(1)(E). Pub. L. 102-550, Sec. 203(b)(6), redesignated
    subpar. (F) as (E). Former subpar. (E) redesignated (D).
      Pub. L. 102-550, Sec. 203(b)(3), substituted "formula in
    subparagraph (A)" for "formulas in subparagraph (B)".
      Subsec. (b)(1)(F). Pub. L. 102-550, Sec. 203(b)(6), redesignated
    subpar. (G) as (F). Former subpar. (F) redesignated (E).
      Pub. L. 102-550, Sec. 203(b)(4), substituted "basic formula in
    subparagraph (A)" for "basic formula in subparagraph (B)" and
    struck out at end "If a jurisdiction receives an allocation under
    subparagraph (A), the Secretary shall make such adjustments in the
    jurisdiction's allocation under the formula in subparagraph (B) as
    may be necessary to ensure that the combined effect of the formulas
    in subparagraphs (A) and (B) does not reduce the allocation of any
    jurisdiction below the allocation it would receive if allocations
    were made according to the formula under subparagraph (B) alone."
      Subsec. (b)(1)(G). Pub. L. 102-550, Sec. 203(b)(6), redesignated
    subpar. (G) as (F).
      Pub. L. 102-550, Sec. 203(b)(5), substituted "formula in
    subparagraph (A)" for "formulas in subparagraphs (A) and (B)".
      Subsec. (b)(3). Pub. L. 102-550, Sec. 202(b)(1), inserted before
    period at end ", except as provided in paragraph (4)".
      Subsec. (b)(4). Pub. L. 102-550, Sec. 202(b)(2), added par. (4).
      1991 - Subsec. (a)(1). Pub. L. 102-229 and Pub. L. 102-230, Sec.
    1(1), amended par. (1) identically, inserting before first comma
    "and after reserving amounts for the insular areas under paragraph
    (3)".
      Subsec. (a)(3). Pub. L. 102-229 and Pub. L. 102-230, Sec. 1(2),
    which were enacted on the same day, both added new pars. (3)
    relating to insular areas.

-CHANGE-
                              CHANGE OF NAME                          
      Committee on Banking, Finance and Urban Affairs of House of
    Representatives treated as referring to Committee on Banking and
    Financial Services of House of Representatives by section 1(a) of
    Pub. L. 104-14, set out as a note preceding section 21 of Title 2,
    The Congress. Committee on Banking and Financial Services of House
    of Representatives abolished and replaced by Committee on Financial
    Services of House of Representatives, and jurisdiction over matters
    relating to securities and exchanges and insurance generally
    transferred from Committee on Energy and Commerce of House of
    Representatives by House Resolution No. 5, One Hundred Seventh
    Congress, Jan. 3, 2001.

-MISC2-
                     EFFECTIVE DATE OF 1996 AMENDMENT                 
      Amendment by Pub. L. 104-330 effective Oct. 1, 1997, except as
    otherwise expressly provided, see section 107 of Pub. L. 104-330,
    set out as an Effective Date note under section 4101 of Title 25,
    Indians.
      Section 505(b) of Pub. L. 104-330 provided that: "The amendments
    under subsection (a) [amending this section and section 12838 of
    this title] shall apply with respect to amounts made available for
    assistance under title II of the Cranston-Gonzalez National
    Affordable Housing Act [42 U.S.C. 12721 et seq.] for fiscal year
    1998 and fiscal years thereafter."

                     EFFECTIVE DATE OF 1992 AMENDMENT                 
      Amendment by section 211(a)(2) of Pub. L. 102-550 applicable with
    respect to fiscal year 1993 and thereafter, see section 211(b) of
    Pub. L. 102-550, set out as a note under section 12704 of this
    title.
      Amendment by sections 202(b) and 203(b) of Pub. L. 102-550
    applicable to unexpended funds allocated under subchapter II of
    this chapter in fiscal year 1992, except as otherwise specifically
    provided, see section 223 of Pub. L. 102-550, set out as a note
    under section 12704 of this title.

                     APPLICABILITY OF GRANT THRESHOLDS                 
      Grant thresholds provided for in subsec. (b) of this section as
    amended by Pub. L. 102-550 to apply notwithstanding any other
    provision of law, see section 202(c) of Pub. L. 102-550, set out as
    a note under section 12746 of this title.

                     EXPEDITED ISSUANCE OF REGULATION                 
      Section 211(a)(3) of Pub. L. 102-550 provided that: "The
    regulation referred to in the amendment made by paragraph (2)(D)
    [amending this section] shall take effect not later than the
    expiration of the 90-day period beginning on the date of the
    enactment of this Act [Oct. 28, 1992]. The regulation shall not be
    subject to the requirements of subsections (b) and (c) of section
    553 of title 5, United States Code, or section 7(o) of the
    Department of Housing and Urban Development Act [42 U.S.C.
    3535(o)]."

-FOOTNOTE-
    (!1) See 1992 Amendment note below.

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

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

-End-

-CITE-
    42 USC Sec. 12748                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING
    Part A - HOME Investment Partnerships

-HEAD-
    Sec. 12748. HOME Investment Trust Funds

-STATUTE-
    (a) Establishment
      The Secretary shall establish for each participating jurisdiction
    a HOME Investment Trust Fund, which shall be an account (or
    accounts as provided in section 12749(c) of this title) for use
    solely to invest in affordable housing within the participating
    jurisdiction's boundaries or within the boundaries of contiguous
    jurisdictions in joint projects which serve residents from both
    jurisdictions in accordance with the provisions of this part.
    (b) Line of credit
      The Secretary shall establish a line of credit in the HOME
    Investment Trust Fund of each participating jurisdiction, which
    line of credit shall include - 
        (1) funds allocated or reallocated to the participating
      jurisdiction under section 12747 of this title, and
        (2) any payment or repayment made pursuant to section 12749 of
      this title.
    (c) Reductions
      A participating jurisdiction's line of credit shall be reduced by
    - 
        (1) funds drawn from the HOME Investment Trust Fund by the
      participating jurisdiction,
        (2) funds expiring under subsection (g) of this section, and
        (3) any penalties assessed by the Secretary under section 12754
      (!1) of this title.

    (d) Certification
      A participating jurisdiction may draw funds from its HOME
    Investment Trust Fund, but not to exceed the remaining line of
    credit, only after providing certification that the funds shall be
    used pursuant to the participating jurisdiction's approved housing
    strategy and in compliance with all requirements of this
    subchapter. When such certification is received, the Secretary
    shall immediately disburse such funds in accordance with the form
    of the assistance determined by the participating jurisdiction.
    (e) Investment within 15 days
      The participating jurisdiction shall, not later than 15 days
    after funds are drawn from the jurisdiction's HOME Investment Trust
    Fund, invest such funds, together with any interest earned thereon,
    in the affordable housing for which the funds were withdrawn.
    (f) No interest or fees
      The Secretary shall not charge any interest or levy any other fee
    with regard to funds in a HOME Investment Trust Fund.
    (g) Expiration of right to draw funds
      If any funds becoming available to a participating jurisdiction
    under this subchapter are not placed under binding commitment to
    affordable housing within 24 months after the last day of the month
    in which such funds are deposited in the jurisdiction's HOME
    Investment Trust Fund, the jurisdiction's right to draw such funds
    from the HOME Investment Trust Fund shall expire. The Secretary
    shall reduce the line of credit in the participating jurisdiction's
    HOME Investment Trust Fund by the expiring amount and shall
    reallocate the funds by formula in accordance with section 12747(d)
    of this title.
    (h) Administrative provision
      The Secretary shall keep each participating jurisdiction informed
    of the status of its HOME Investment Trust Fund, including the
    status of amounts under various stages of commitment.

-SOURCE-
    (Pub. L. 101-625, title II, Sec. 218, Nov. 28, 1990, 104 Stat.
    4109; Pub. L. 102-550, title II, Secs. 203(c), 221, Oct. 28, 1992,
    106 Stat. 3752, 3762.)

-MISC1-
                                AMENDMENTS                            
      1992 - Subsec. (a). Pub. L. 102-550, Sec. 221, inserted "or
    within the boundaries of contiguous jurisdictions in joint projects
    which serve residents from both jurisdictions" after "boundaries".
      Subsec. (g). Pub. L. 102-550, Sec. 203(c), substituted "If" for
    "Except as provided in section 12747(b)(1)(A)(ii) of this title,
    if".

                     EFFECTIVE DATE OF 1992 AMENDMENT                 
      Amendment by Pub. L. 102-550 applicable to unexpended funds
    allocated under subchapter II of this chapter in fiscal year 1992,
    except as otherwise specifically provided, see section 223 of Pub.
    L. 102-550, set out as a note under section 12704 of this title.

-FOOTNOTE-
    (!1) So in original. Probably should be section "12753".

-End-

-CITE-
    42 USC Sec. 12749                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING
    Part A - HOME Investment Partnerships

-HEAD-
    Sec. 12749. Repayment of investment

-STATUTE-
    (a) In general
      Any repayment of funds drawn from a jurisdiction's HOME
    Investment Trust Fund, and any payment of interest or other return
    on the investment of such funds, shall be deposited in such
    jurisdiction's HOME Investment Trust Fund, except that, if the
    jurisdiction is not a participating jurisdiction when such payment
    or repayment is made, the amount of such payment or repayment shall
    be reallocated in accordance with section 12747(d) of this title.
    (b) Assurance of repayment
      Each participating jurisdiction shall enter into an agreement
    with the Secretary ensuring that funds invested in affordable
    housing under this part are repayable when the housing no longer
    qualifies as affordable housing. Any repayment under the previous
    sentence shall be for deposit in the HOME Investment Trust Fund of
    the jurisdiction making the investment; except that if such
    jurisdiction is not a participating jurisdiction when such
    repayment is made, the amount of such repayment shall be
    reallocated in accordance with section 12747(d) of this title.
    (c) Availability
      The Secretary shall take such actions as are necessary to ensure
    that any repayments deposited in a HOME Investment Trust Fund in
    accordance with this section shall be immediately available to the
    participating jurisdiction for investment subject to the provisions
    of this part that apply to funds that are allocated under section
    12747 of this title. Actions authorized under the preceding
    sentence may include authorizing the establishment for a
    participating jurisdiction of a HOME Investment Trust Fund account
    outside of the Federal Government that, under arrangements
    satisfactory to the Secretary, shall be used solely to invest in
    affordable housing within the participating jurisdiction's
    boundaries in accordance with the provisions of this subchapter.
    Such accounts shall be established in such a manner that repayments
    are not receipts or collections of the Federal Government.

-SOURCE-
    (Pub. L. 101-625, title II, Sec. 219, Nov. 28, 1990, 104 Stat.
    4110.)

-End-

-CITE-
    42 USC Sec. 12750                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING
    Part A - HOME Investment Partnerships

-HEAD-
    Sec. 12750. Matching requirements

-STATUTE-
    (a) Contribution
      Each participating jurisdiction shall make contributions to
    housing that qualifies as affordable housing under this subchapter
    that total, throughout a fiscal year, not less than 25 percent of
    the funds drawn from the jurisdiction's HOME Investment Trust Fund
    in such fiscal year. Such contributions shall be in addition to any
    amounts made available under section 12746(3)(A)(ii) of this title.
    (b) Recognition
      (1) In general
        A contribution shall be recognized for purposes of subsection
      (a) of this section only if it - 
          (A) is made with respect to housing that qualifies as
        affordable housing under section 12745 of this title; or
          (B) is made with respect to any portion of a project not less
        than 50 percent of the units of which qualify as affordable
        housing under section 12745 of this title.
      (2) Administrative expenses
        Contributions for administrative expenses may not be recognized
      for purposes of subsection (a) of this section.
    (c) Form
      Such contributions may be in the form of - 
        (1) cash contributions from non-Federal resources, which may
      not include funds from a grant made under section 5306(b) or
      section 5306(d) of this title;
        (2) the value of taxes, fees, or other charges that are
      normally and customarily imposed but are waived, foregone, or
      deferred in a manner that achieves affordability of housing
      assisted under this subchapter;
        (3) the value of land or other real property as appraised
      according to procedures acceptable to the Secretary;
        (4) the value of investment in on-site and off-site
      infrastructure directly required for affordable housing assisted
      under this subchapter;
        (5) Redesignated (4)
        (6) up to - 
          (A) 50 percent of proceeds from bond financing validly issued
        by a State or local government, agency or instrumentality
        thereof, or political subdivision thereof, and repayable with
        revenues derived from a multifamily affordable housing project
        financed, and
          (B) 25 percent of proceeds from bond financing validly issued
        by a State or local government, agency or instrumentality
        thereof, or political subdivision thereof, and repayable with
        revenues derived from a single-family project financed,

      but not more than 25 percent of the contribution required under
      subsection (a) of this section may be derived from these sources;
        (7) the reasonable value of any site-preparation and
      construction materials and any donated or voluntary labor in
      connection with the site-preparation for, or construction or
      rehabilitation of, affordable housing; and
        (8) such other contributions to affordable housing as the
      Secretary considers appropriate.
    (d) Reduction of requirement
      (1) In general
        The Secretary shall reduce the matching requirement under
      subsection (a) of this section with respect to any funds drawn
      from a jurisdiction's HOME Investment Trust Fund Account during a
      fiscal year by - 
          (A) 50 percent for a jurisdiction that certifies that it is
        in fiscal distress; and
          (B) 100 percent for a jurisdiction that certifies that it is
        in severe fiscal distress.
      (2) Definitions
        For purposes of this section - 
          (A) "fiscal distress" means a jurisdiction other than a State
        that satisfies 1 of the distress criteria set forth in
        paragraph (3); and
          (B) "severe fiscal distress" means a jurisdiction other than
        a State that satisfies both of the distress criteria set forth
        in paragraph (3).
      (3) Distress criteria
        For purposes of a jurisdiction other than a State certifying
      that it is distressed, the following criteria shall apply:
        (A) Poverty rate
          The average poverty rate in the jurisdiction for the calendar
        year immediately preceding the year in which its fiscal year
        begins was equal to or greater than 125 percent of the average
        national poverty rate during such calendar year (as determined
        according to information of the Bureau of the Census).
        (B) Per capita income
          The average per capita income in the jurisdiction for the
        calendar year immediately preceding the year in which its
        fiscal year begins was less than 75 percent of the average
        national per capita income during such calendar year (as
        determined according to information of the Bureau of the
        Census).
      (4) States
        In determining the degree to which a jurisdiction that is a
      State is distressed, the Secretary shall take into consideration
      the State's fiscal capacity and expenditure needs as determined
      by a national organization which compiles the relevant data.
      (5) Waiver in disaster areas
        If a participating jurisdiction is located in an area in which
      a declaration of a disaster pursuant to the Robert T. Stafford
      Disaster Relief and Emergency Assistance Act [42 U.S.C. 5121 et
      seq.] is in effect for any part of a fiscal year, the Secretary
      may reduce the matching requirement for that fiscal year under
      subsection (a) of this section with respect to any funds drawn
      from a jurisdiction's HOME Investment Trust Fund Account during
      that fiscal year by up to 100 percent.

-SOURCE-
    (Pub. L. 101-625, title II, Sec. 220, Nov. 28, 1990, 104 Stat.
    4111; Pub. L. 102-550, title II, Secs. 207(c), 210(a)-(c), Oct. 28,
    1992, 106 Stat. 3753, 3755; Pub. L. 103-233, title II, Sec. 204,
    Apr. 11, 1994, 108 Stat. 364.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Robert T. Stafford Disaster Relief and Emergency Assistance
    Act, referred to in subsec. (d)(5), is Pub. L. 93-288, May 22,
    1974, 88 Stat. 143, as amended, which is classified principally to
    chapter 68 (Sec. 5121 et seq.) of this title. For complete
    classification of this Act to the Code, see Short Title note set
    out under section 5121 of this title and Tables.

-MISC1-
                                AMENDMENTS                            
      1994 - Subsec. (a). Pub. L. 103-233 amended heading and text of
    subsec. (a) generally. Prior to amendment, text read as follows:
    "Each participating jurisdiction shall make contributions to
    housing that qualifies as affordable housing under this subchapter
    that total, throughout a fiscal year, not less than - 
        "(1) 25 percent of the total funds drawn from the
      jurisdiction's HOME Investment Trust Fund in that fiscal year
      with respect to rental assistance, housing rehabilitation and
      substantial rehabilitation; and
        "(2) 30 percent of the total funds drawn from the
      jurisdiction's HOME Investment Trust Fund in that fiscal year
      with respect to new construction.
    Such contributions shall be in addition to any amounts made
    available under section 12746(3)(A)(ii) of this title."
      1992 - Subsec. (a). Pub. L. 102-550, Sec. 210(a)(4), substituted
    "housing that qualifies as affordable housing under this
    subchapter" for "affordable housing assisted under this subchapter"
    in introductory provisions.
      Subsec. (a)(1). Pub. L. 102-550, Sec. 210(a)(1), substituted ",
    housing rehabilitation and substantial rehabilitation; and" for
    "and housing rehabilitation;".
      Subsec. (a)(2). Pub. L. 102-550, Sec. 210(a)(2), substituted "30"
    for "33" and "new construction." for "substantial rehabilitation;
    and".
      Subsec. (a)(3). Pub. L. 102-550, Sec. 210(a)(3), struck out par.
    (3) which read as follows: "50 percent of the total funds drawn
    from the jurisdiction's HOME Investment Trust Fund in that fiscal
    year with respect to new construction."
      Subsec. (b)(2). Pub. L. 102-550, Sec. 207(c)(1), substituted "may
    not be recognized for purposes of subsection (a) of this section"
    for "shall be recognized only up to an amount equal to 7 percent of
    funds provided for investment under this subchapter".
      Subsec. (c)(2). Pub. L. 102-550, Sec. 207(c)(2), redesignated
    par. (3) as (2) and struck out former par. (2) which read as
    follows: "payment of administrative expenses, as defined by the
    Secretary, from non-Federal resources, which may include funds from
    a grant made under section 5306(b) or section 5306(d) of this
    title;".
      Subsec. (c)(3). Pub. L. 102-550, Sec. 210(b)(1), which directed
    the striking of "and" at end of par. (4), was executed by striking
    "and" at end of par. (3) to reflect the probable intent of Congress
    and the redesignation of par. (4) as (3). See below.
      Pub. L. 102-550, Sec. 207(c)(2)(B), redesignated par. (4) as (3).
    Former par. (3) redesignated (2).
      Subsec. (c)(4). Pub. L. 102-550, Sec. 210(b)(2), which directed
    the substitution of a semicolon for the period at end of par. (5),
    was executed by making the substitution at end of par. (4) to
    reflect the probable intent of Congress and the redesignation of
    par. (5) as (4). See below.
      Pub. L. 102-550, Sec. 207(c)(2)(B), redesignated par. (5) as (4).
    Former par. (4) redesignated (3).
      Subsec. (c)(5). Pub. L. 102-550, Sec. 207(c)(2)(B), redesignated
    par. (5) as (4).
      Subsec. (c)(6) to (8). Pub. L. 102-550, Sec. 210(b)(3), added
    pars. (6) to (8).
      Subsec. (d). Pub. L. 102-550, Sec. 210(c), added subsec. (d) and
    struck out former subsec. (d) which read as follows: "If a
    jurisdiction demonstrates to the satisfaction of the Secretary that
    a reduction of the matching requirement specified in subsection (a)
    of this section is necessary to permit the jurisdiction to carry
    out the purposes of this subchapter, the Secretary may reduce the
    matching requirement during a period not to exceed 3 years after
    the jurisdiction is first designated as a participating
    jurisdiction. Such reduction shall be not more than 75 percent in
    the first year, not more than 50 percent in the second year, and
    not more than 25 percent in the third year."

                     EFFECTIVE DATE OF 1994 AMENDMENT                 
      Amendment by Pub. L. 103-233 applicable with respect to any
    amounts made available to carry out this subchapter after Apr. 11,
    1994, and any amounts made available to carry out this subchapter
    before that date that remain uncommitted on that date, with
    Secretary to issue any regulations necessary to carry out such
    amendment not later than end of 45-day period beginning on that
    date, see section 209 of Pub. L. 103-233, set out as a note under
    section 5301 of this title.

                     EFFECTIVE DATE OF 1992 AMENDMENT                 
      Section 210(d) of Pub. L. 102-550 provided that: "The amendments
    made by this section [amending this section] shall apply with
    respect to fiscal year 1993 and each fiscal year thereafter."
      Amendment by section 207(c) of Pub. L. 102-550 applicable to
    unexpended funds allocated under subchapter II of this chapter in
    fiscal year 1992, except as otherwise specifically provided, see
    section 223 of Pub. L. 102-550, set out as a note under section
    12704 of this title.

-End-

-CITE-
    42 USC Sec. 12751                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING
    Part A - HOME Investment Partnerships

-HEAD-
    Sec. 12751. Private-public partnership

-STATUTE-
      Each participating jurisdiction shall make all reasonable
    efforts, consistent with the purposes of this subchapter, to
    maximize participation by the private sector, including nonprofit
    organizations and for-profit entities, in the implementation of the
    jurisdiction's housing strategy, including participation in the
    financing, development, rehabilitation and management of affordable
    housing. Nothing in the previous sentence shall preclude public
    housing authorities from fully participating in the implementation
    of a jurisdiction's housing strategy.

-SOURCE-
    (Pub. L. 101-625, title II, Sec. 221, Nov. 28, 1990, 104 Stat.
    4112.)

-End-

-CITE-
    42 USC Sec. 12752                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING
    Part A - HOME Investment Partnerships

-HEAD-
    Sec. 12752. Distribution of assistance

-STATUTE-
    (a) Local
      Each participating jurisdiction shall, insofar as is feasible,
    distribute assistance under this part geographically within its
    boundaries and among different categories of housing need,
    according to the priorities of housing need identified in the
    jurisdiction's approved housing strategy.
    (b) State
      Participating States shall be responsible for distributing
    assistance throughout the State according to the State's assessment
    of the geographical distribution of the housing need within the
    State, as identified in the State's approved housing strategy.
    Participating States shall distribute assistance to rural areas in
    amounts that take into account the nonmetropolitan share of the
    State's total population and objective measures of rural housing
    need, such as poverty and substandard housing, as set forth in the
    State's housing strategy approved under section 12705 of this
    title. To the extent the need is within the boundaries of a
    participating unit of general local government, the State and the
    unit of general local government shall coordinate activities to
    address that need.

-SOURCE-
    (Pub. L. 101-625, title II, Sec. 222, Nov. 28, 1990, 104 Stat.
    4112.)

-End-

-CITE-
    42 USC Sec. 12753                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING
    Part A - HOME Investment Partnerships

-HEAD-
    Sec. 12753. Penalties for misuse of funds

-STATUTE-
      If the Secretary finds after reasonable notice and opportunity
    for hearing that a participating jurisdiction has failed to comply
    substantially with any provision of this part and until the
    Secretary is satisfied that there is no longer any such failure to
    comply, the Secretary shall reduce the line of credit in the
    participating jurisdiction's HOME Investment Trust Fund by the
    amount of any expenditures that were not in accordance with the
    requirements of this subchapter, and the Secretary may - 
        (1) prevent withdrawals from the participating jurisdiction's
      HOME Investment Trust Fund for activities affected by such
      failure to comply;
        (2) restrict the participating jurisdiction's activities under
      this subchapter to activities that conform to one or more model
      programs made available under section 12743 of this title; or
        (3) remove the participating jurisdiction from participation in
      allocations or reallocations of funds made available under this
      part.

-SOURCE-
    (Pub. L. 101-625, title II, Sec. 223, Nov. 28, 1990, 104 Stat.
    4112.)

-End-

-CITE-
    42 USC Sec. 12754                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING
    Part A - HOME Investment Partnerships

-HEAD-
    Sec. 12754. Limitation on jurisdictions under court order

-STATUTE-
    (a) In general
      Notwithstanding any other provision of this Act, the Secretary
    shall ensure that funds provided under this part are not employed
    to carry out housing remedies or to pay fines, penalties, or costs
    associated with an action in which - 
        (1) a participating jurisdiction has been adjudicated, by a
      Federal, State, or local court, to be in violation of title VI of
      the Civil Rights Act of 1964 [42 U.S.C. 2000d et seq.], the Fair
      Housing Act [42 U.S.C. 3601 et seq.], or any other Federal,
      State, or local law promoting fair housing or prohibiting
      discrimination, or
        (2) a settlement has been entered into in any case where claims
      of such violations have been asserted against a participating
      jurisdiction, except to the extent permitted by subsection (b) of
      this section.
    (b) Remedial use of funds permitted
      In the case of settlement described in subsection (a)(2) of this
    section, a jurisdiction may use funds provided under this Act to
    carry out housing remedies with eligible activities.

-SOURCE-
    (Pub. L. 101-625, title II, Sec. 224, Nov. 28, 1990, 104 Stat.
    4113.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This Act, referred to in text, is Pub. L. 101-625, Nov. 28, 1990,
    104 Stat. 4079, known as the Cranston-Gonzalez National Affordable
    Housing Act. For complete classification of this Act to the Code,
    see Short Title note set out under section 12701 of this title and
    Tables.
      The Civil Rights Act of 1964, referred to in subsec. (a)(1), is
    Pub. L. 88-352, July 2, 1964, 78 Stat. 241, as amended. Title VI of
    the Act is classified generally to subchapter V (Sec. 2000d et
    seq.) of chapter 21 of this title. For complete classification of
    this Act to the Code, see Short Title note set out under section
    2000a of this title and Tables.
      The Fair Housing Act, referred to in subsec. (a)(1), is title
    VIII of Pub. L. 90-284, Apr. 11, 1968, 82 Stat. 81, as amended,
    which is classified principally to subchapter I (Sec. 3601 et seq.)
    of chapter 45 of this title. For complete classification of this
    Act to the Code, see Short Title note set out under section 3601 of
    this title and Tables.

-End-

-CITE-
    42 USC Sec. 12755                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING
    Part A - HOME Investment Partnerships

-HEAD-
    Sec. 12755. Tenant and participant protections

-STATUTE-
    (a) Lease
      The lease between a tenant and an owner of affordable housing
    assisted under this subchapter for rental shall be for not less
    than one year, unless by mutual agreement between the tenant and
    the owner, and shall contain such terms and conditions as the
    Secretary shall determine to be appropriate.
    (b) Termination of tenancy
      An owner shall not terminate the tenancy or refuse to renew the
    lease of a tenant of rental housing assisted under this subchapter
    except for serious or repeated violation of the terms and
    conditions of the lease, for violation of applicable Federal,
    State, or local law, or for other good cause. Any termination or
    refusal to renew must be preceded by not less than 30 days by the
    owner's service upon the tenant of a written notice specifying the
    grounds for the action.
    (c) Maintenance and replacement
      The owner of rental housing assisted under this subchapter shall
    maintain the premises in compliance with all applicable housing
    quality standards and local code requirements.
    (d) Tenant selection
      The owner of rental housing assisted under this subchapter shall
    adopt written tenant selection policies and criteria that - 
        (1) are consistent with the purpose of providing housing for
      very low-income and low-income families,
        (2) are reasonably related to program eligibility and the
      applicant's ability to perform the obligations of the lease,
        (3) give reasonable consideration to the housing needs of
      families that would have a preference under section
      1437d(c)(4)(A) (!1) of this title, and

        (4) provide for (A) the selection of tenants from a written
      waiting list in the chronological order of their application,
      insofar as is practicable, and (B) for (!2) the prompt
      notification in writing of any rejected applicant of the grounds
      for any rejection.

-SOURCE-
    (Pub. L. 101-625, title II, Sec. 225, Nov. 28, 1990, 104 Stat.
    4113.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 1437d(c)(4)(A) of this title, referred to in subsec.
    (d)(3), was redesignated section 1437d(c)(5)(A) of this title by
    Pub. L. 109-162, title VI, Sec. 607(1), Jan. 5, 2006, 119 Stat.
    3048.

-FOOTNOTE-
    (!1) See References in Text note below.

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

-End-

-CITE-
    42 USC Sec. 12756                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING
    Part A - HOME Investment Partnerships

-HEAD-
    Sec. 12756. Monitoring of compliance

-STATUTE-
    (a) Enforceable agreements
      Each participating jurisdiction, through binding contractual
    agreements with owners and otherwise, shall ensure long-term
    compliance with the provisions of this subchapter. Such measures
    shall provide for (1) enforcement of the provisions of this
    subchapter by the jurisdiction or by the intended beneficiaries,
    and (2) remedies for the breach of such provisions.
    (b) Periodic monitoring
      Each participating jurisdiction, not less frequently than
    annually, shall review the activities of owners of affordable
    housing assisted under this subchapter for rental to assess
    compliance with the requirements of this subchapter. Such review
    shall include on-site inspection to determine compliance with
    housing codes and other applicable regulations. The results of each
    review shall be included in the jurisdiction's performance report
    submitted to the Secretary under section 12708(a) of this title and
    made available to the public.
    (c) Special procedures for certain projects
      In the case of small-scale or scattered site housing, the
    Secretary may provide for such streamlined procedures for achieving
    the purposes of this section as the Secretary determines to be
    appropriate.

-SOURCE-
    (Pub. L. 101-625, title II, Sec. 226, Nov. 28, 1990, 104 Stat.
    4114.)

-End-

-CITE-
    42 USC Part B - Community Housing Partnership               01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING
    Part B - Community Housing Partnership

-HEAD-
                  PART B - COMMUNITY HOUSING PARTNERSHIP              

-End-

-CITE-
    42 USC Sec. 12771                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING
    Part B - Community Housing Partnership

-HEAD-
    Sec. 12771. Set-aside for community housing development
      organizations

-STATUTE-
    (a) In general
      For a period of 24 months after funds under part A of this
    subchapter are made available to a jurisdiction, the jurisdiction
    shall reserve not less than 15 percent of such funds for investment
    only in housing to be developed, sponsored, or owned by community
    housing development organizations. Each participating jurisdiction
    shall make reasonable efforts to identify community housing
    development organizations that are capable or can reasonably be
    expected to become capable of carrying out elements of the
    jurisdiction's housing strategy and to encourage such community
    housing development organizations to do so. If during the first 24
    months of its participation under this subchapter, a participating
    jurisdiction is unable to identify a sufficient number of capable
    community housing development organizations, then up to 20 percent
    of the funds allocated to that jurisdiction under this section, but
    not to exceed $150,000, may be made available to carry out
    activities that develop the capacity of community housing
    development organizations in that jurisdiction. A participating
    jurisdiction is authorized to enter into contracts with community
    housing development organizations to carry out this section.
    (b) Recapture and reuse
      If any funds reserved under subsection (a) of this section remain
    uninvested for a period of 24 months, then the Secretary shall
    deduct such funds from the line of credit in the participating
    jurisdiction's HOME Investment Trust Fund and make such funds
    available by direct reallocation (1) to other participating
    jurisdictions for affordable housing developed, sponsored or owned
    by community housing development organizations, or (2) to nonprofit
    intermediary organizations to carry out activities that develop the
    capacity of community housing development organizations consistent
    with section 12773 of this title, with preference to community
    housing development organizations serving the jurisdiction from
    which the funds were recaptured.
    (c) Direct reallocation criteria
      Insofar as practicable, direct reallocations under this section
    shall be made according to the selection criteria established under
    section 12747(c) of this title.

-SOURCE-
    (Pub. L. 101-625, title II, Sec. 231, Nov. 28, 1990, 104 Stat.
    4114; Pub. L. 102-550, title II, Sec. 212(a), (b), Oct. 28, 1992,
    106 Stat. 3757.)

-MISC1-
                                AMENDMENTS                            
      1992 - Subsec. (a). Pub. L. 102-550 substituted "24" for "18" in
    first sentence and inserted after second sentence "If during the
    first 24 months of its participation under this subchapter, a
    participating jurisdiction is unable to identify a sufficient
    number of capable community housing development organizations, then
    up to 20 percent of the funds allocated to that jurisdiction under
    this section, but not to exceed $150,000, may be made available to
    carry out activities that develop the capacity of community housing
    development organizations in that jurisdiction."
      Subsec. (b). Pub. L. 102-550, Sec. 212(a), substituted "24" for
    "18".

                     EFFECTIVE DATE OF 1992 AMENDMENT                 
      Amendment by Pub. L. 102-550 applicable to unexpended funds
    allocated under subchapter II of this chapter in fiscal year 1992,
    except as otherwise specifically provided, see section 223 of Pub.
    L. 102-550, set out as a note under section 12704 of this title.

-End-

-CITE-
    42 USC Sec. 12772                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING
    Part B - Community Housing Partnership

-HEAD-
    Sec. 12772. Project-specific assistance to community housing
      development organizations

-STATUTE-
    (a) In general
      Amounts reserved under section 12771 of this title may be used
    for activities eligible under section 12742 of this title and, in
    amounts not to exceed 10 percent of the amounts so reserved, for
    other activities specified under this section.
    (b) Project-specific technical assistance and site control loans
      (1) In general
        Amounts reserved under section 12771 of this title may be used
      to provide technical assistance and site control loans to
      community housing development organizations in the early stages
      of site development for an eligible project. Such loans shall not
      exceed amounts that the jurisdiction determines to be customary
      and reasonable project preparation costs allowable under
      paragraph (2).
      (2) Allowable expenses
        A loan under this subsection may be provided to cover project
      expenses necessary to determine project feasibility (including
      costs of an initial feasibility study), consulting fees, costs of
      preliminary financial applications, legal fees, architectural
      fees, engineering fees, engagement of a development team, site
      control and title clearance.
      (3) Repayment
        A community housing development organization that receives a
      loan under this subsection shall repay the loan to the
      participating jurisdiction's HOME Investment Trust Fund from
      construction loan proceeds or other project income. The
      participating jurisdiction may waive repayment of the loan, in
      part or in whole, if there are impediments to project development
      that the participating jurisdiction determines are reasonably
      beyond the control of the borrower.
    (c) Project-specific seed money loans
      (1) In general
        Amounts reserved under section 12771 of this title may be used
      to provide loans to community housing development organizations
      to cover preconstruction project costs that the jurisdiction
      determines to be customary and reasonable, including, but not
      limited to the costs of obtaining firm construction loan
      commitments, architectural plans and specifications, zoning
      approvals, engineering studies and legal fees.
      (2) Eligible sponsors
        A loan under this subsection may be provided only to a
      community housing development organization that has, with respect
      to the project concerned, site control, a preliminary financial
      commitment, and a capable development team.
      (3) Repayment
        A community housing development organization that receives a
      loan under this subsection shall repay the loan to the
      jurisdiction's HOME Investment Trust Fund from construction loan
      proceeds or other project income. The participating jurisdiction
      may waive repayment of the loan, in whole or in part, if there
      are impediments to project development that the participating
      jurisdiction determines are reasonably beyond the control of the
      borrower.

-SOURCE-
    (Pub. L. 101-625, title II, Sec. 232, Nov. 28, 1990, 104 Stat.
    4115.)

-End-

-CITE-
    42 USC Sec. 12773                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING
    Part B - Community Housing Partnership

-HEAD-
    Sec. 12773. Housing education and organizational support

-STATUTE-
    (a) In general
      The Secretary is authorized to provide education and
    organizational support assistance, in conjunction with other
    assistance made available under this part - 
        (1) to facilitate the education of low-income homeowners and
      tenants;
        (2) to promote the ability of community housing development
      organizations, including community land trusts, to maintain,
      rehabilitate and construct housing for low-income and moderate-
      income families in conformance with the requirements of this
      subchapter; and
        (3) to achieve the purposes under paragraphs (1) and (2) by
      helping women who reside in low- and moderate-income
      neighborhoods rehabilitate and construct housing in the
      neighborhoods.
    (b) Eligible activities
      Assistance under this section may be used only for the following
    eligible activities:
      (1) Organizational support
        Organizational support assistance may be made available to
      community housing development organizations to cover operational
      expenses and to cover expenses for training and technical, legal,
      engineering and other assistance to the board of directors,
      staff, and members of the community housing development
      organization.
      (2) Housing education
        Housing education assistance may be made available to community
      housing development organizations to cover expenses for providing
      or administering programs for educating, counseling, or
      organizing homeowners and tenants who are eligible to receive
      assistance under other provisions of this subchapter.
      (3) Program-wide support of nonprofit development and management
        Technical assistance, training, and continuing support may be
      made available to eligible community housing development
      organizations for managing and conserving properties developed
      under this subchapter.
      (4) Benevolent loan funds
        Technical assistance may be made available to increase the
      investment of private capital in housing for very low-income
      families, particularly by encouraging the establishment of
      benevolent loan funds through which private financial
      institutions will accept deposits at below-market interest rates
      and make those funds available at favorable rates to developers
      of low-income housing and to low-income homebuyers.
      (5) Community development banks and credit unions
        Technical assistance may be made available to establish
      privately owned, local community development banks and credit
      unions to finance affordable housing.
      (6) Community land trusts
        Organizational support, technical assistance, education,
      training, and continuing support under this subsection may be
      made available to community land trusts (as such term is defined
      in subsection (f) of this section) and to community groups for
      the establishment of community land trusts.
      (7) Facilitating women in homebuilding professions
        Technical assistance may be made available to businesses,
      unions, and organizations involved in construction and
      rehabilitation of housing in low- and moderate-income areas to
      assist women residing in the area to obtain jobs involving such
      activities, which may include facilitating access by such women
      to, and providing, apprenticeship and other training programs
      regarding nontraditional skills, recruiting women to participate
      in such programs, providing continuing support for women at job
      sites, counseling and educating businesses regarding suitable
      work environments for women, providing information to such women
      regarding opportunities for establishing small housing
      construction and rehabilitation businesses, and providing
      materials and tools for training such women (in an amount not
      exceeding 10 percent of any assistance provided under this
      paragraph). The Secretary shall give priority under this
      paragraph to providing technical assistance for organizations
      rehabilitating single family or multifamily housing owned or
      controlled by the Secretary pursuant to title II of the National
      Housing Act [12 U.S.C. 1707 et seq.] and which have women members
      in occupations in which women constitute 25 percent or less of
      the total number of workers in the occupation (in this section
      referred to as "nontraditional occupations").
    (c) Delivery of assistance
      The Secretary shall provide this assistance only through contract
    - 
        (1) with a nonprofit intermediary organization that, in the
      determination of the Secretary - 
          (A) customarily provides, in more than one community,
        services related to the provision of decent housing that is
        affordable to low-income and moderate-income persons or the
        revitalization of deteriorating neighborhoods;
          (B) has demonstrated experience in providing a range of
        assistance (such as financing, technical assistance,
        construction and property management assistance, capacity
        building and training) to community housing development
        organizations or similar organizations that engage in community
        revitalization;
          (C) has demonstrated the ability to provide technical
        assistance and training for community-based developers of
        affordable housing;
          (D) has described the uses to which such assistance will be
        put and the intended beneficiaries of the assistance; and
          (E) in the case of activities under subsection (b)(7) of this
        section, is a community-based organization (as such term is
        defined in section 4 of the Job Training Partnership Act) or
        public housing agency, which has demonstrated experience in
        preparing women for apprenticeship training in construction or
        administering programs for training women for construction or
        other nontraditional occupations (and such organizations may
        use assistance for activities under such subsection to employ
        women in housing construction and rehabilitation activities to
        the extent that the organization has the capacity to conduct
        such activities); or

        (2) with another organization, if a participating jurisdiction
      demonstrates that the organization is qualified to carry out
      eligible activities and that the jurisdiction would not be served
      in a timely manner by intermediaries specified under paragraph
      (1).

    Contracts under paragraph (2) shall be for activities specified in
    an application from the participating jurisdiction, which
    application shall include a certification that the activities are
    necessary to the effective implementation of the participating
    jurisdiction's housing strategy.
    (d) Limitations
      Contracts under this section with any one contractor for a fiscal
    year may not - 
        (1) exceed 20 percent of the amount appropriated for this
      section for such fiscal year; or
        (2) provide more than 20 percent of the operating budget (which
      shall not include funds that are passed through to community
      housing development organizations) of the contracting
      organization for any one year.
    (e) Single-State contractors
      Not less than 40 percent of the funds made available for this
    section in an appropriations Act in any fiscal year shall be made
    available for eligible contractors that have worked primarily in
    one State. The Secretary shall provide assistance under this
    section, to the extent applications are submitted and approved, to
    contractors in each of the geographic regions having a regional
    office of the Department of Housing and Urban Development.
    (f) "Community land trust" defined
      For purposes of this section, the term "community land trust"
    means a community housing development organization (except that the
    requirements under subparagraphs (C) and (D) of section 12704(6) of
    this title shall not apply for purposes of this subsection) - 
        (1) that is not sponsored by a for-profit organization;
        (2) that is established to carry out the activities under
      paragraph (3);
        (3) that - 
          (A) acquires parcels of land, held in perpetuity, primarily
        for conveyance under long-term ground leases;
          (B) transfers ownership of any structural improvements
        located on such leased parcels to the lessees; and
          (C) retains a preemptive option to purchase any such
        structural improvement at a price determined by formula that is
        designed to ensure that the improvement remains affordable to
        low- and moderate-income families in perpetuity;

        (4) whose corporate membership that is open to any adult
      resident of a particular geographic area specified in the bylaws
      of the organization; and
        (5) whose board of directors - 
          (A) includes a majority of members who are elected by the
        corporate membership; and
          (B) is composed of equal numbers of (i) lessees pursuant to
        paragraph (3)(B), (ii) corporate members who are not lessees,
        and (iii) any other category of persons described in the bylaws
        of the organization.

-SOURCE-
    (Pub. L. 101-625, title II, Sec. 233, Nov. 28, 1990, 104 Stat.
    4116; Pub. L. 102-550, title II, Sec. 213, Oct. 28, 1992, 106 Stat.
    3757.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The National Housing Act, referred to in subsec. (b)(7), is act
    June 27, 1934, ch. 847, 48 Stat. 1246, as amended. Title II of the
    Act is classified principally to subchapter II (Sec. 1707 et seq.)
    of chapter 13 of Title 12, Banks and Banking. For complete
    classification of this Act to the Code, see section 1701 of Title
    12 and Tables.
      Section 4 of the Job Training Partnership Act, referred to in
    subsec. (c)(1)(E), which was classified to section 1503 of Title
    29, Labor, was repealed by Pub. L. 105-220, title I, Sec.
    199(b)(2), (c)(2)(B), Aug. 7, 1998, 112 Stat. 1059, effective July
    1, 2000. Pursuant to section 2940(b) of Title 29, references to a
    provision of the Job Training Partnership Act, effective Aug. 7,
    1998, are deemed to refer to that provision or the corresponding
    provision of the Workforce Investment Act of 1998, Pub. L. 105-220,
    Aug. 7, 1998, 112 Stat. 936, and effective July 1, 2000, are deemed
    to refer to the corresponding provision of the Workforce Investment
    Act of 1998. For complete classification of the Workforce
    Investment Act of 1998 to the Code, see Short Title note set out
    under section 9201 of Title 20, Education, and Tables.

-MISC1-
                                AMENDMENTS                            
      1992 - Subsec. (a)(2). Pub. L. 102-550, Sec. 213(a)(1), inserted
    ", including community land trusts," after "organizations".
      Subsec. (a)(3). Pub. L. 102-550, Sec. 213(b)(1), added par. (3).
      Subsec. (b)(6). Pub. L. 102-550, Sec. 213(a)(2), added par. (6).
      Subsec. (b)(7). Pub. L. 102-550, Sec. 213(b)(2), added par. (7).
      Subsec. (c)(1)(E). Pub. L. 102-550, Sec. 213(b)(3), added subpar.
    (E).
      Subsec. (e). Pub. L. 102-550, Sec. 213(b)(4), inserted at end
    "The Secretary shall provide assistance under this section, to the
    extent applications are submitted and approved, to contractors in
    each of the geographic regions having a regional office of the
    Department of Housing and Urban Development."
      Subsec. (f). Pub. L. 102-550, Sec. 213(a)(3), added subsec. (f).

                     EFFECTIVE DATE OF 1992 AMENDMENT                 
      Amendment by Pub. L. 102-550 applicable to unexpended funds
    allocated under subchapter II of this chapter in fiscal year 1992,
    except as otherwise specifically provided, see section 223 of Pub.
    L. 102-550, set out as a note under section 12704 of this title.

-End-

-CITE-
    42 USC Sec. 12774                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING
    Part B - Community Housing Partnership

-HEAD-
    Sec. 12774. Other requirements

-STATUTE-
    (a) Tenant participation plan
      A community housing development organization that receives
    assistance under this part shall provide a plan for and follow a
    program of tenant participation in management decisions and shall
    adhere to a fair lease and grievance procedure approved by the
    participating jurisdiction.
    (b) Limitation on assistance
      A community housing development organization may not receive
    assistance under this subchapter for any fiscal year in an amount
    that provides more than 50 percent of the organization's total
    operating budget in the fiscal year or $50,000 annually, whichever
    is greater.
    (c) Adjustments of other assistance
      The Secretary shall take account of assistance provided to a
    project under this part when adjusting other assistance to be
    provided to the project as required by section 3545(d) of this
    title.

-SOURCE-
    (Pub. L. 101-625, title II, Sec. 234, Nov. 28, 1990, 104 Stat.
    4117; Pub. L. 102-550, title II, Sec. 212(c), Oct. 28, 1992, 106
    Stat. 3757.)

-MISC1-
                                AMENDMENTS                            
      1992 - Subsec. (b). Pub. L. 102-550 struck out ", together with
    other Federal assistance," after "in an amount that" and inserted
    before period "or $50,000 annually, whichever is greater".

                     EFFECTIVE DATE OF 1992 AMENDMENT                 
      Amendment by Pub. L. 102-550 applicable to unexpended funds
    allocated under subchapter II of this chapter in fiscal year 1992,
    except as otherwise specifically provided, see section 223 of Pub.
    L. 102-550, set out as a note under section 12704 of this title.

-End-

-CITE-
    42 USC Part C - Other Support for State and Local Housing
                     Strategies                            01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING
    Part C - Other Support for State and Local Housing Strategies

-HEAD-
       PART C - OTHER SUPPORT FOR STATE AND LOCAL HOUSING STRATEGIES   

-End-

-CITE-
    42 USC Sec. 12781                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING
    Part C - Other Support for State and Local Housing Strategies

-HEAD-
    Sec. 12781. Authority

-STATUTE-
      The Secretary shall, insofar as is feasible through contract with
    eligible organizations, develop the capacity of participating
    jurisdictions, State and local housing finance agencies, nonprofit
    organizations and for-profit corporations, working in partnership,
    to identify and meet needs for an increased supply of decent,
    affordable housing.

-SOURCE-
    (Pub. L. 101-625, title II, Sec. 241, Nov. 28, 1990, 104 Stat.
    4117.)

-End-

-CITE-
    42 USC Sec. 12782                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING
    Part C - Other Support for State and Local Housing Strategies

-HEAD-
    Sec. 12782. Priorities for capacity development

-STATUTE-
      To carry out section 12781 of this title, the Secretary shall
    provide assistance under this part to - 
        (1) facilitate the exchange of information that would help
      participating jurisdictions carry out the purposes of this
      subchapter, including information on program design, housing
      finance, land use controls, and building construction techniques;
        (2) improve the ability of States and units of general local
      government to design and implement comprehensive housing
      affordability strategies, particularly those States and units of
      general local government that are relatively inexperienced in the
      development of affordable housing;
        (3) encourage private lenders and for-profit developers of low-
      income housing to participate in public-private partnerships to
      achieve the purposes of this subchapter;
        (4) improve the ability of States and units of general local
      government, community housing development organizations, private
      lenders, and for-profit developers of low-income housing to
      incorporate energy efficiency into the planning, design,
      financing, construction, and operation of affordable housing;
        (5) facilitate the establishment and efficient operation of
      employer-assisted housing programs through research, technical
      assistance and demonstration projects; and
        (6) facilitate the establishment and efficient operation of
      land bank programs, under which title to vacant and abandoned
      parcels of real estate located in or causing blighted
      neighborhoods is cleared for use consistent with the purposes of
      this subchapter.

-SOURCE-
    (Pub. L. 101-625, title II, Sec. 242, Nov. 28, 1990, 104 Stat.
    4118; Pub. L. 102-550, title II, Sec. 214(a), Oct. 28, 1992, 106
    Stat. 3759.)

-MISC1-
                                AMENDMENTS                            
      1992 - Par. (6). Pub. L. 102-550 added par. (6).

                     EFFECTIVE DATE OF 1992 AMENDMENT                 
      Amendment by Pub. L. 102-550 applicable to unexpended funds
    allocated under subchapter II of this chapter in fiscal year 1992,
    except as otherwise specifically provided, see section 223 of Pub.
    L. 102-550, set out as a note under section 12704 of this title.

-End-

-CITE-
    42 USC Sec. 12783                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING
    Part C - Other Support for State and Local Housing Strategies

-HEAD-
    Sec. 12783. Conditions of contracts

-STATUTE-
    (a) Eligible organizations
      The Secretary shall carry out this part insofar as is practicable
    through contract with - 
        (1) a participating jurisdiction or agency thereof;
        (2) a public purpose organization established pursuant to State
      or local legislation and responsible to the chief elected
      official of a participating jurisdiction;
        (3) an agency or authority established by two or more
      participating jurisdictions to carry out activities consistent
      with the purposes of this subchapter;
        (4) a national or regional nonprofit organization that has a
      membership comprised predominantly of entities or officials of
      entities that qualify under paragraph (1), (2), or (3); or
        (5) a professional and technical services company or firm that
      has demonstrated capacity to provide services under this part.
    (b) Contract terms
      Contracts under this part shall be for not more than 3 years and
    shall provide not more than 20 percent of the operating budget of
    the contracting organization in any one year. Within any fiscal
    year, contracts with any one organization may not be entered into
    for a total of more than 20 percent of the funds appropriated under
    this part in that fiscal year.

-SOURCE-
    (Pub. L. 101-625, title II, Sec. 243, Nov. 28, 1990, 104 Stat.
    4118.)

-End-

-CITE-
    42 USC Sec. 12784                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING
    Part C - Other Support for State and Local Housing Strategies

-HEAD-
    Sec. 12784. Research in housing affordability

-STATUTE-
      The Secretary is authorized to support, through contracts with
    eligible organizations and otherwise, such research and to publish
    such reports as will assist in the achievement of the purposes of
    this subchapter. Activities authorized by the previous sentence may
    include an ongoing analysis of the impact of public policies at the
    Federal, State, and local levels, both individually and in the
    aggregate, on the incentives to expand and maintain the supply of
    energy-efficient affordable housing in the United States,
    particularly in areas with severe problems of housing
    affordability, through the use of cost-saving innovative building
    technology and construction techniques. For purposes of this
    section, agencies of the United States, government-sponsored
    mortgage finance corporations, and qualified research organizations
    shall be included as eligible organizations in addition to eligible
    organizations specified under section 12783 of this title.

-SOURCE-
    (Pub. L. 101-625, title II, Sec. 244, Nov. 28, 1990, 104 Stat.
    4118; Pub. L. 102-550, title II, Sec. 215, Oct. 28, 1992, 106 Stat.
    3759.)

-MISC1-
                                AMENDMENTS                            
      1992 - Pub. L. 102-550 inserted before period at end of second
    sentence ", through the use of cost-saving innovative building
    technology and construction techniques".

                     EFFECTIVE DATE OF 1992 AMENDMENT                 
      Amendment by Pub. L. 102-550 applicable to unexpended funds
    allocated under subchapter II of this chapter in fiscal year 1992,
    except as otherwise specifically provided, see section 223 of Pub.
    L. 102-550, set out as a note under section 12704 of this title.

-End-

-CITE-
    42 USC Sec. 12785                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING
    Part C - Other Support for State and Local Housing Strategies

-HEAD-
    Sec. 12785. REACH: asset recycling information dissemination

-STATUTE-
    (a) In general
      The Secretary shall make available upon request by any
    participating jurisdiction a list of eligible properties that are
    located within the jurisdiction and that are owned or controlled by
    the Department of Housing and Urban Development to facilitate the
    purchase, development, or rehabilitation of such properties with
    assistance made available under this subchapter.
    (b) Eligible properties
      An eligible property under this section shall - 
        (1) be an unoccupied single-family or multifamily dwelling,
      such that acquisition and rehabilitation of the dwelling would
      not result in the displacement of any residents of the dwelling;
      and
        (2) have an appraised value that does not exceed (A) in the
      case of a 1- to 4-family dwelling, 95 percent of the median
      purchase price for the area for such dwellings, as determined by
      the Secretary, or (B) in the case of a dwelling with more than 4
      units, the applicable maximum dollar amount limitation under
      section 1715l(d)(3)(ii) of title 12 for elevator-type structures.

-SOURCE-
    (Pub. L. 101-625, title II, Sec. 245, Nov. 28, 1990, 104 Stat.
    4119.)

-End-

-CITE-
    42 USC Part D - Specified Model Programs                    01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING
    Part D - Specified Model Programs

-HEAD-
                     PART D - SPECIFIED MODEL PROGRAMS                 

-End-

-CITE-
    42 USC Sec. 12801                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING
    Part D - Specified Model Programs

-HEAD-
    Sec. 12801. General authority

-STATUTE-
      Among the alternative model programs that the Secretary shall
    make available for use by participating jurisdictions under the
    provisions of section 12743 of this title shall be model programs
    specified in this part. The Secretary shall keep these specified
    model programs under review and submit to Congress such
    recommendations for change as the Secretary determines to be
    appropriate.

-SOURCE-
    (Pub. L. 101-625, title II, Sec. 251, Nov. 28, 1990, 104 Stat.
    4119.)

-End-

-CITE-
    42 USC Sec. 12802                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING
    Part D - Specified Model Programs

-HEAD-
    Sec. 12802. Rental housing production

-STATUTE-
    (a) Repayable advances
      (1) In general
        The Secretary shall make available a model program under which
      repayable advances may be made to public and private project
      sponsors in constructing, acquiring, or substantially
      rehabilitating projects to be used as affordable rental housing,
      including limited equity cooperatives and mutual housing.
      (2) Maximum amount of advance
        An advance under this model program shall not exceed 50 percent
      of the total costs associated with the construction, acquisition,
      or substantial rehabilitation of the project, as determined by
      the participating jurisdiction.
      (3) Terms of repayment
        (A) Interest payments
          (i) In general
            Under the model program, advances shall be repaid with
          interest calculated at a rate of not more than 3 percent per
          year, as determined by the participating jurisdiction to be
          appropriate. Interest shall begin to accrue 1 year after the
          completion of the construction, acquisition, or substantial
          rehabilitation of the project and shall be payable in annual
          installments.
          (ii) Exception
            Interest and any accrued interest shall be payable only
          from the surplus cash flow of the project, after a minimum
          return on equity determined by the participating jurisdiction
          to be appropriate. As used in the previous sentence, the term
          "surplus cash flow" means the cash flow of the project after
          the payment of all amounts due under the first mortgage,
          operating expenses, and required replacement reserves, as
          determined by the participating jurisdiction.
        (B) Additional interest payments
          Under the model program, for any year in which the sum of the
        surplus cash flow of a project and the return on equity exceeds
        all interest payments due under subparagraph (A), 50 percent of
        the excess surplus cash flow shall be paid to the participating
        jurisdiction's HOME Investment Trust Fund as additional
        interest.
        (C) Principal and unpaid interest
          The principal amount of an advance under the model program,
        and any interest remaining unpaid pursuant to subparagraph
        (A)(ii) shall be repayable when the housing no longer qualifies
        as affordable housing in accordance with section 12749(b) of
        this title.
    (b) Selection guidelines
      (1) In general
        The Secretary shall establish guidelines for the selection of
      projects by participating jurisdictions for assistance under the
      model program. Such guidelines shall be designed to select
      projects in areas and for markets demonstrating the greatest need
      for the production of affordable rental housing.
      (2) Specific requirements
        The selection guidelines may include - 
          (A) the extent of the shortage of rental housing in the area
        that is available to low-income families;
          (B) the extent large families with children will be served by
        the project;
          (C) the extent to which the project provides congregate
        facilities and has available supportive services that will
        permit elderly or handicapped residents who become frail and
        are in need of assistance in living to continue to reside in
        the project;
          (D) the extent of very low-income and low-income occupancy in
        excess of the income targeting requirements in section 12744 of
        this title;
          (E) the extent of the project sponsor's commitment of equity
        to the project (except that this criterion shall not apply to
        or affect the selection of applications submitted by public
        housing agencies and nonprofit entities);
          (F) the extent of the project sponsor's commitment of equity
        to the project in comparison to the value of all public
        assistance for the project, including assistance under this
        subchapter, other Federal assistance and financing, and State
        and local government contributions (except that this criterion
        shall not apply to or affect the selection of applications
        submitted by public housing agencies and nonprofit entities);
          (G) the extent of non-Federal public or private assistance to
        the project;
          (H) the extent to which the project provides supportive
        services for persons with disabilities; and
          (I) any other factor determined by the Secretary to be
        appropriate.
    (c) Guidelines
      The Secretary shall publish guidelines for the model program
    under this section not later than 180 days after November 28, 1990.

-SOURCE-
    (Pub. L. 101-625, title II, Sec. 252, Nov. 28, 1990, 104 Stat.
    4119.)

-End-

-CITE-
    42 USC Sec. 12803                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING
    Part D - Specified Model Programs

-HEAD-
    Sec. 12803. Rental rehabilitation

-STATUTE-
    (a) In general
      The Secretary shall make available a model program to support the
    rehabilitation of privately owned rental housing located in
    neighborhoods where the median income does not exceed 80 percent of
    the area median as determined by the Secretary and where rents can
    reasonably be expected not to change materially over an extended
    period of time.
    (b) Amount of subsidy
      The amount of the rehabilitation subsidy shall be moderate and
    shall generally not exceed 50 percent of the total costs associated
    with the rehabilitation of the housing.
    (c) Additional restrictions
      The guidelines of the model program shall generally comport with
    the additional protections and restrictions specified under section
    1437o(c) (!1) of this title.

-SOURCE-
    (Pub. L. 101-625, title II, Sec. 253, Nov. 28, 1990, 104 Stat.
    4121.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 1437o of this title, referred to in subsec. (c), was
    repealed by Pub. L. 101-625, title II, Sec. 289(b), Nov. 28, 1990,
    104 Stat. 4128.

-FOOTNOTE-
    (!1) See References in Text note below.

-End-

-CITE-
    42 USC Sec. 12804                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING
    Part D - Specified Model Programs

-HEAD-
    Sec. 12804. Rehabilitation loans

-STATUTE-
    (a) In general
      The Secretary shall make available a model program to provide
    direct loans to finance the rehabilitation of low and moderate
    income single family and multifamily residential properties.
    (b) Condition of loans
      The Secretary shall establish terms and conditions to ensure that
    such loans are acceptable risks, taking into consideration the need
    for rehabilitation, the security for the loan and the ability of
    the borrower to repay the loan. The Secretary may establish the
    interest rate for loans under the model program, which shall
    include special interest rates for loans to borrowers with incomes
    below 80 percent of the area median income.
    (c) Additional restrictions
      Guidelines for the model program may require that the property - 
        (1) be located in an area that contains a substantial number of
      dwellings in need of rehabilitation;
        (2) the property (!1) is residential and owner-occupied; and

        (3) the property (!1) is in need of rehabilitation or
      concentrated code enforcement within a reasonable time, and the
      rehabilitation of such property is consistent with a local plan
      for rehabilitation or code enforcement.

    Additional guidelines for the model program shall generally comport
    with the additional protections and restrictions specified under
    section 1452b (!2) of this title.

-SOURCE-
    (Pub. L. 101-625, title II, Sec. 254, Nov. 28, 1990, 104 Stat.
    4121.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 1452b of this title, referred to in subsec. (c), was
    repealed by Pub. L. 101-625, title II, Sec. 289(b)(1), Nov. 28,
    1990, 104 Stat. 4128, which is classified to section 12839(b)(1) of
    this title.

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

    (!2) See References in Text note below.

-End-

-CITE-
    42 USC Sec. 12805                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING
    Part D - Specified Model Programs

-HEAD-
    Sec. 12805. Sweat equity model program

-STATUTE-
    (a) In general
      The Secretary shall make available a model program to provide
    grants to public and private nonprofit organizations and community
    housing development organizations to provide technical and
    supervisory assistance to low-income and very low-income families,
    including the homeless, in acquiring, rehabilitating, and
    constructing housing by the self-help housing method.
    (b) Rehabilitation of properties
      The program shall target for rehabilitation properties which have
    been acquired by the Federal, State, or local governments.
    (c) Homeownership opportunities through sweat equity
      (1) The program shall utilize the skilled or unskilled labor of
    eligible families in exchange for acquisition of the property.
      (2) Training shall be provided to eligible families in building
    and home maintenance skills.
    (d) Rental opportunities through sweat equity
      (1) The program shall include rental opportunities for eligible
    families which will help expand the stock of affordable housing
    which is most appropriate for the target group.
      (2) The use of the tenant's skilled or unskilled labor shall be
    encouraged in lieu of or as a supplement to rent payments by the
    tenant.
    (e) "Self-help housing" defined
      The term "self-help housing" means the same as in section 1490c
    of this title.
    (f) Additional restrictions
      The guidelines for the model program shall generally comport with
    the additional protections and restrictions specified under section
    1490c of this title.

-SOURCE-
    (Pub. L. 101-625, title II, Sec. 255, Nov. 28, 1990, 104 Stat.
    4121.)

-MISC1-
                ASSISTANCE FOR SELF-HELP HOUSING PROVIDERS            
      Pub. L. 104-120, Sec. 11, Mar. 28, 1996, 110 Stat. 841, as
    amended by Pub. L. 105-276, title V, Sec. 599E(a), Oct. 21, 1998,
    112 Stat. 2663; Pub. L. 106-569, title II, Sec. 202, Dec. 27, 2000,
    114 Stat. 2951; Pub. L. 108-285, Sec. 2, Aug. 2, 2004, 118 Stat.
    917, provided that:
      "(a) Grant Authority. - The Secretary of Housing and Urban
    Development may, to the extent amounts are available to carry out
    this section and the requirements of this section are met, make
    grants for use in accordance with this section to national and
    regional organizations and consortia that have experience in
    providing or facilitating self-help housing homeownership
    opportunities.
      "(b) Goals and Accountability. - In making grants under this
    section, the Secretary shall take such actions as may be necessary
    to ensure that - 
        "(1) assistance provided under this section is used to
      facilitate and encourage innovative homeownership opportunities
      through the provision of self-help housing, under which the
      homeowner contributes a significant amount of sweat equity toward
      the construction of the new dwellings;
        "(2) assistance provided under this section for land
      acquisition and infrastructure development results in the
      development of not less than 4,000 new dwellings;
        "(3) the dwellings constructed in connection with assistance
      provided under this section are quality dwellings that comply
      with local building and safety codes and standards and are
      available at prices below the prevailing market prices;
        "(4) the provision of assistance under this section establishes
      and fosters a partnership between the Federal Government and
      organizations and consortia, resulting in efficient development
      of affordable housing with minimal governmental intervention,
      limited governmental regulation, and significant involvement by
      private entities;
        "(5) activities to develop housing assisted pursuant to this
      section involve community participation in which volunteers
      assist in the construction of dwellings; and
        "(6) dwellings are developed in connection with assistance
      under this section on a geographically diverse basis, which
      includes areas having high housing costs, rural areas, and areas
      underserved by other homeownership opportunities that are
      populated by low-income families unable to otherwise afford
      housing.
    If, at any time, the Secretary determines that the goals under this
    subsection cannot be met by providing assistance in accordance with
    the terms of this section, the Secretary shall immediately notify
    the applicable Committees in writing of such determination and any
    proposed changes for such goals or this section.
      "(c) National Competition. - The Secretary shall select
    organizations and consortia referred to in subsection (a) to
    receive grants through a national competitive process, which the
    Secretary shall establish.
      "(d) Use. - 
        "(1) Purpose. - Amounts from grants made under this section,
      including any recaptured amounts, shall be used only for eligible
      expenses in connection with developing new decent, safe, and
      sanitary nonluxury dwellings in the United States for families
      and persons who otherwise would be unable to afford to purchase a
      dwelling.
        "(2) Eligible expenses. - For purposes of paragraph (1), the
      term 'eligible expenses' means costs only for the following
      activities:
          "(A) Land acquisition. - Acquiring land (including financing
        and closing costs), which may include reimbursing an
        organization, consortium, or affiliate, upon approval of any
        required environmental review, for nongrant amounts of the
        organization, consortium, or affiliate advanced before such
        review to acquire land.
          "(B) Infrastructure improvement. - Installing, extending,
        constructing, rehabilitating, or otherwise improving utilities
        and other infrastructure.
      Such term does not include any costs for the rehabilitation,
      improvement, or construction of dwellings.
      "(e) Establishment of Grant Fund. - 
        "(1) In general. - Any amounts from any grant made under this
      section shall be deposited by the grantee organization or
      consortium in a fund that is established by such organization or
      consortium for such amounts, administered by such organization or
      consortium, and available for use only for the purposes under
      subsection (d). Any interest, fees, or other earnings of the fund
      shall be deposited in the fund and shall be considered grant
      amounts for purposes of this section.
        "(2) Assistance to affiliates. - Any organization or consortia
      that receives a grant under this section may use amounts in the
      fund established for such organization or consortia pursuant to
      paragraph (1) for the purposes under subsection (d) by providing
      assistance from the fund to local affiliates of such organization
      or consortia.
      "(f) Requirements for Assistance. - The Secretary may make a
    grant to an organization or consortium under subsection (a) only
    pursuant to - 
        "(1) an expression of interest by such organization or
      consortia to the Secretary for a grant for such purposes;
        "(2) a determination by the Secretary that the organization or
      consortia has the capability and has obtained financial
      commitments (or has the capacity to obtain financial commitments)
      necessary to - 
          "(A) develop not less than 30 dwellings in connection with
        the grant amounts; and
          "(B) otherwise comply with a grant agreement under subsection
        (i); and
        "(3) a grant agreement entered into under subsection (i).
      "[(g) Repealed. Pub. L. 105-276, title V, Sec. 599E(a)(6), Oct.
    21, 1998, 112 Stat. 2664.]
      "(h) Geographical Diversity. - In making grants under subsection
    (a), the Secretary shall ensure that grants are provided and grant
    amounts are used in a manner that results in national geographic
    diversity among housing developed using grant amounts under this
    section.
      "(i) Grant Agreement. - A grant under this section shall be made
    only pursuant to a grant agreement entered into by the Secretary
    and the organization or consortia receiving the grant, which shall -
     
        "(1) require such organization or consortia to use grant
      amounts only as provided in this section;
        "(2) provide for the organization or consortia to develop a
      specific and reasonable number of dwellings using the grant
      amounts, which number shall be established taking into
      consideration costs and economic conditions in the areas in which
      the dwellings will be developed, but in no case shall be less
      than 30;
        "(3) require the organization or consortia to use the grant
      amounts in a manner that leverages other sources of funding
      (other than grants under this section), including private or
      public funds, in developing the dwellings;
        "(4) require the organization or consortia to comply with the
      other provisions of this section;
        "(5) provide that the Secretary shall recapture any grant
      amounts provided to the organization or consortia that are not
      used within 24 months after such amounts are first disbursed to
      the organization or consortia, except that such period shall be
      36 months in the case of grant amounts from amounts made
      available for fiscal year 1996 to carry out this section, and in
      the case of a [sic] grant amounts provided to a local affiliate
      of the organization or consortia that is developing five or more
      dwellings in connection with such grant amounts; and
        "(6) contain such other terms as the Secretary may require to
      provide for compliance with subsection (b) and the requirements
      of this section.
      "(j) Fulfillment of Grant Agreement. - If the Secretary
    determines that an organization or consortia awarded a grant under
    this section has not, within 24 months after grant amounts are
    first made available to the organization or consortia (or, in the
    case of grant amounts from amounts made available for fiscal year
    1996 to carry out this section and grant amounts provided to a
    local affiliate of the organization or consortia that is developing
    five or more dwellings in connection with such grant amounts,
    within 36 months), substantially fulfilled the obligations under
    the grant agreement, including development of the appropriate
    number of dwellings under the agreement, the Secretary shall use
    any such undisbursed amounts remaining from such grant for other
    grants in accordance with this section.
      "(k) Records and Audits. - During the period beginning upon the
    making of a grant under this section and ending upon close-out of
    the grant under subsection (l) - 
        "(1) the organization awarded the grant shall keep such records
      and adopt such administrative practices as the Secretary may
      require to ensure compliance with the provisions of this section
      and the grant agreement; and
        "(2) the Secretary and the Comptroller General of the United
      States, and any of their duly authorized representatives, shall
      have access for the purpose of audit and examination to any
      books, documents, papers, and records of the grantee organization
      or consortia and its affiliates that are pertinent to the grant
      made under this section.
      "(l) Close-Out. - The Secretary shall close out a grant made
    under this section upon determining that the aggregate amount of
    any assistance provided from the fund established under subsection
    (e)(1) by the grantee organization or consortium exceeds the amount
    of the grant. For purposes of this paragraph, any interest, fees,
    and other earnings of the fund shall be excluded from the amount of
    the grant.
      "(m) Environmental Review. - A grant under this section shall be
    considered to be funds for a special project for purposes of
    section 305(c) of the Multifamily Housing Property Disposition
    Reform Act of 1994 [42 U.S.C. 3547].
      "(n) Report to Congress. - Not later than 90 days after close-out
    of all grants under this section is completed, the Secretary shall
    submit a report to the applicable Committees describing the grants
    made under this section, the grantees, the housing developed in
    connection with the grant amounts, and the purposes for which the
    grant amounts were used.
      "(o) Definitions. - For purposes of this section, the following
    definitions shall apply:
        "(1) Applicable committees. - The term 'applicable Committees'
      means the Committee on Banking and Financial Services [now
      Committee on Financial Services] of the House of Representatives
      and the Committee on Banking, Housing, and Urban Affairs of the
      Senate.
        "(2) Secretary. - The term 'Secretary' means the Secretary of
      Housing and Urban Development.
        "(3) United states. - The term 'United States' includes the
      States of the United States, the District of Columbia, the
      Commonwealth of Puerto Rico, the Commonwealth of the Northern
      Mariana Islands, Guam, the Virgin Islands, American Samoa, and
      any other territory or possession of the United States.
      "(p) Authorization of Appropriations. - There are authorized to
    be appropriated to carry out this section such sums as may be
    necessary for fiscal year 2001.
      "(q) Regulations. - The Secretary shall issue any final
    regulations necessary to carry out this section not later than 30
    days after the date of the enactment of this Act [Mar. 28, 1996].
    The regulations shall take effect upon issuance and may not exceed,
    in length, 5 full pages in the Federal Register."
      [Pub. L. 105-276, title V, Sec. 599E(b), Oct. 21, 1998, 112 Stat.
    2664, provided that: "Notwithstanding the amendments made by
    subsection (a) [amending section 11 of Pub. L. 104-120, set out
    above], any grant under section 11 of the Housing Opportunity
    Program Extension Act of 1996 [Pub. L. 104-120] (42 U.S.C. 12805
    note) from amounts appropriated in fiscal year 1998 or any prior
    fiscal year shall be governed by the provisions of such section 11
    as in effect immediately before the enactment of this Act [Oct. 21,
    1998], except that the amendments made by paragraphs (8) and (9) of
    subsection (a) of this section shall apply to such grants."]
      [Pub. L. 105-276, title V, Sec. 599E(c), Oct. 21, 1998, 112 Stat.
    2664, provided that: "This section [amending section 11 of Pub. L.
    104-120, set out above, and enacting provisions set out as a note
    above] shall take effect, and the amendments made by this section
    are made on, and shall apply beginning upon, the date of the
    enactment of this Act [Oct. 21, 1998]."]

       FUNDING FOR SELF-HELP HOUSING ASSISTANCE, NATIONAL CITIES IN
       SCHOOLS COMMUNITY DEVELOPMENT PROGRAM, AND CAPACITY BUILDING
             THROUGH NATIONAL COMMUNITY DEVELOPMENT INITIATIVE
      Pub. L. 104-120, Sec. 12, Mar. 28, 1996, 110 Stat. 845, provided
    that:
      "(a) Authority to Use Assisted Housing Amounts. - To the extent
    and for the purposes specified in subsection (b), the Secretary of
    Housing and Urban Development may use amounts in the account of the
    Department of Housing and Urban Development known as the Annual
    Contributions for Assisted Housing account, but only such amounts
    which - 
        "(1) have been appropriated for a fiscal year that occurs
      before the fiscal year for which the Secretary uses the amounts;
      and
        "(2) have been obligated before becoming available for use
      under this section.
      "(b) Fiscal Year 1996. - Of the amounts described in subsection
    (a), $60,000,000 shall be available to the Secretary of Housing and
    Urban Development for fiscal year 1996 in the following amounts for
    the following purposes:
        "(1) Self-help housing assistance. - $40,000,000 for carrying
      out section 11 of this Act [set out above].
        "(2) National cities in schools community development program. -
       $10,000,000 for carrying out section 930 of the Housing and
      Community Development Act of 1992 (Public Law 102-550; 106 Stat.
      3887).
        "(3) Capacity building through national community development
      initiative. - $10,000,000 for carrying out section 4 of the HUD
      Demonstration Act of 1993 (42 U.S.C. 9816 note)."

-End-

-CITE-
    42 USC Sec. 12806                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING
    Part D - Specified Model Programs

-HEAD-
    Sec. 12806. Home repair services grants for older and disabled
      homeowners

-STATUTE-
    (a) In general
      The Secretary shall make available a model program to provide
    home repair services for older homeowners and disabled homeowners,
    including such services as the examination of homes, repair
    services, and follow-up to ensure the continued effectiveness of
    the repairs provided.
    (b) Eligible recipients
      Home repair services shall be provided to homeowners who - 
        (1) own and reside in the dwellings for which services are
      provided;
        (2) are older or disabled; and
        (3) are members of low-income families.
    (c) Permitted restrictions
      Guidelines for the model program shall require that - 
        (1) assisted dwelling units be the primary residence of the
      homeowner for whom services are provided;
        (2) preferences be provided for (A) very low-income families,
      and (B) individuals with intense need characterized by
      noneconomic factors such as physical and mental disabilities,
      language barriers, and cultural, social, or geographical
      isolation caused by racial or ethnic status that restricts the
      ability of an individual to perform normal daily tasks or that
      threatens the capacity of the individual to live independently;
        (3) any fees charged be based on the income of the individual
      receiving the home repair services.

-SOURCE-
    (Pub. L. 101-625, title II, Sec. 256, Nov. 28, 1990, 104 Stat.
    4122.)

-End-

-CITE-
    42 USC Sec. 12807                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING
    Part D - Specified Model Programs

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

-STATUTE-
    (a) In general
      The Secretary shall make available a model program to provide
    safe, energy-efficient affordable housing for low-income persons.
    (b) Activities
      The model program shall provide for - 
        (1) identification of housing that is - 
          (A) owned and occupied by low-income families who have
        received, are currently receiving, or are scheduled to receive
        assistance under the weatherization assistance for low-income
        persons program under part A of title IV of the Energy
        Conservation and Production Act [42 U.S.C. 6861 et seq.] (or a
        comparable Federal or State program);
          (B) in danger of becoming uninhabitable within a 5-year
        period because of structural weaknesses or problems; and
          (C) not sufficiently sound to permit energy conservation
        improvements without other repair or rehabilitation measures to
        protect such energy investments;

        (2) repairs that will significantly prolong the habitability of
      units identified under paragraph (1), including roofing,
      electrical, plumbing, furnace, and foundation repairs or
      replacement that will prolong the use of the unit as a safe and
      energy-efficient residence for low-income persons; and
        (3) reasonable steps to ensure that any units so repaired will
      remain occupied by persons or families eligible for assistance
      under this subchapter.

-SOURCE-
    (Pub. L. 101-625, title II, Sec. 257, Nov. 28, 1990, 104 Stat.
    4122.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Energy Conservation and Production Act, referred to in
    subsec. (b)(1)(A), is Pub. L. 94-385, Aug. 14, 1976, 90 Stat. 1142,
    as amended. Part A of title IV of the Act is classified generally
    to part A (Sec. 6861 et seq.) of subchapter III of chapter 81 of
    this title. For complete classification of this Act to the Code,
    see Short Title note set out under section 6801 of this title and
    Tables.

-End-

-CITE-
    42 USC Sec. 12808                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING
    Part D - Specified Model Programs

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

-STATUTE-
    (a) In general
      The Secretary shall make available a model program under which
    units of general local government provide loans (secured by second
    mortgages) with deferred payment of interest and principal to first-
    time homebuyers.
    (b) Homeownership counseling
      The program under this section shall provide for homeownership
    counseling to first-time homebuyers assisted, which shall include -
    
        (1) counseling before and after purchase of the property;
        (2) assisting first-time homebuyers in identifying the most
      suitable and affordable properties;
        (3) providing homebuyers with financial management assistance;
        (4) assisting homebuyers in understanding mortgage transactions
      and home sales contracts; and
        (5) assisting homebuyers with eliminating any credit problems
      that may prevent the homebuyers from purchasing the property.
    (c) Eligibility requirements
      Deferred payment loans secured by second mortgages may be
    provided under the model program under this section if - 
        (1) the homebuyer assisted is a first-time homebuyer;
        (2) the property secured by the second mortgage is a single-
      family residence and is the principal residence of the
      homebuyer; and
        (3) the principal obligation of the deferred payment loan
      secured by a second mortgage does not exceed 30 percent of the
      acquisition price of the residence to the homebuyer.
    (d) Payment terms
      (1) Period of deferral
        The payment of any principal and interest on a loan under this
      section shall be deferred for not less than the 5-year period
      beginning on the date of the acquisition of the residence by the
      homebuyer.
      (2) Interest rate
        The interest rate on the unpaid balance of a loan under this
      section shall be at least 4 percent.
      (3) Repayment period
        A deferred payment loan secured by a second mortgage shall be
      repayable over the 15-year period beginning at the end of the
      deferral period.
    (e) Security
      A deferred payment loan assisted with amount (!1) provided under
    a grant under this section shall be secured by a lien on the
    property involved, which lien shall be subordinate to the first
    mortgage on the property.

-SOURCE-
    (Pub. L. 101-625, title II, Sec. 258, Nov. 28, 1990, 104 Stat.
    4123.)

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

-End-

-CITE-
    42 USC Sec. 12809                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING
    Part D - Specified Model Programs

-HEAD-
    Sec. 12809. Rehabilitation of State and local government in rem
      properties

-STATUTE-
    (a) In general
      The Secretary shall make available a model program under which
    States and units of general local government may convert in rem
    properties to provide affordable permanent housing for the homeless
    by leasing such properties to nonprofit organizations and
    permitting such organizations to rehabilitate the properties.
    (b) Target
      The program shall target vacant properties for rehabilitation by
    nonprofit organizations.

-SOURCE-
    (Pub. L. 101-625, title II, Sec. 259, Nov. 28, 1990, 104 Stat.
    4124.)

-End-

-CITE-
    42 USC Sec. 12810                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING
    Part D - Specified Model Programs

-HEAD-
    Sec. 12810. Cost-saving building technologies and construction
      techniques

-STATUTE-
    (a) In general
      The Secretary shall make available a model program to utilize
    cost-saving building technologies and construction techniques for
    purposes of providing homeownership and rental opportunities under
    this subchapter.
    (b) Selection criteria
      The Secretary shall establish criteria for participating
    jurisdictions to select projects for assistance under the model
    program which may include - 
        (1) the extent to which innovative, cost-saving building and
      construction technologies are utilized;
        (2) the extent to which innovative, cost-saving construction
      techniques are utilized;
        (3) the extent to which units will be made available to low-
      income families and individuals;
        (4) the extent to which non-Federal public or private
      assistance is utilized; and
        (5) any other factor, determined by the Secretary to be
      appropriate.
    (c) Guidelines
      The Secretary shall publish guidelines for the model program
    under this section not later than 180 days after October 28, 1992.
    (d) Report
      The Secretary shall submit a biennial report to the Congress on
    the utilization of the model program under this section.

-SOURCE-
    (Pub. L. 101-625, title II, Sec. 260, as added Pub. L. 102-550,
    title II, Sec. 216, Oct. 28, 1992, 106 Stat. 3760.)

-MISC1-
                              EFFECTIVE DATE                          
      Section applicable to unexpended funds allocated under subchapter
    II of this chapter in fiscal year 1992, except as otherwise
    specifically provided, see section 223 of Pub. L. 102-550, set out
    as an Effective Date of 1992 Amendment note under section 12704 of
    this title.

-End-

-CITE-
    42 USC Part E - Other Assistance                            01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING
    Part E - Other Assistance

-HEAD-
                         PART E - OTHER ASSISTANCE                     

-MISC1-
                                AMENDMENTS                            
      2003 - Pub. L. 108-186, title I, Sec. 102, Dec. 16, 2003, 117
    Stat. 2686, amended heading generally. Prior to amendment, heading
    read "Mortgage Credit Enhancement".

-End-

-CITE-
    42 USC Sec. 12821                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING
    Part E - Other Assistance

-HEAD-
    Sec. 12821. Downpayment assistance initiative

-STATUTE-
    (a) Definitions
      In this section:
      (1) Downpayment assistance
        The term "downpayment assistance" means assistance to help a
      family acquire a principal residence.
      (2) Home repairs
        The term "home repairs" means capital improvements or repairs
      that - 
          (A) are identified in an appraisal or home inspection
        completed in conjunction with a home purchase; or
          (B) are completed within 1 year of the purchase of a home,
        and are necessary to bring the housing into compliance with
        health and safety housing codes of the unit of general local
        government in which the housing is located, including the
        remediation of lead paint or other home health hazards.
      (3) Participating jurisdiction
        The term "participating jurisdiction" means a State or unit of
      general local government designated under section 12746 of this
      title.
      (4) State
        The term "State" means any State of the United States and the
      District of Columbia.
    (b) Grant authority
      The Secretary may award grants to participating jurisdictions to
    assist low-income families to achieve homeownership, in accordance
    with this section.
    (c) Eligible activities
      (1) In general
        (A) Downpayment assistance
          Subject to subparagraph (B), grants awarded under this
        section may be used only for downpayment assistance toward the
        purchase of single family housing (including 1 to 4 unit family
        dwelling units, condominium units, cooperative units, and
        manufactured housing units which are located on land which is
        owned by the manufactured housing unit owner, owned as a
        cooperative, or is subject to a leasehold interest with a term
        equal to at least the term of the mortgage financing on the
        unit, and manufactured housing lots) by low-income families who
        are first-time home-buyers.
        (B) Home repairs
          Not more than 20 percent of the grant funds provided under
        subsection (d) of this section to a participating jurisdiction
        may be used to provide assistance to low-income, first-time
        home-buyers for home repairs.
      (2) Limitations
        (A) Amount of assistance
          The amount of assistance provided to any low-income families
        under paragraph (1) shall not exceed the greater of - 
            (i) 6 percent of the purchase price of a single family
          housing unit; or
            (ii) $10,000.
        (B) Participation
          A participating jurisdiction may not use any amount of a
        grant awarded under this section to provide funding to an
        entity or organization that provides downpayment assistance if
        the activities of that entity or organization are financed in
        whole or in part, directly or indirectly, by contributions,
        service fees, or other payments from the sellers of housing.
    (d) Formula allocation
      (1) In general
        For each fiscal year, the Secretary shall allocate any amounts
      made available for assistance under this section to each State
      that is a participating jurisdiction in an amount equal to a
      percentage of the total allocation that is equal to the
      percentage of the national total of low-income households
      residing in rental housing in the State, as determined on the
      basis of the most recent census data compiled by the Bureau of
      the Census.
      (2) Participating jurisdictions other than States
        (A) In general
          Subject to subparagraph (B), for each fiscal year, of the
        amount allocated to each State under paragraph (1), the
        Secretary shall further allocate from such amount to each
        participating jurisdiction located within such State an amount
        equal to the percentage of the allocation made to the State
        under paragraph (1) that is equal to the percentage of the
        State-wide total of low-income households residing in rental
        housing in such participating jurisdiction, as determined on
        the basis of the most recent census data compiled by the Bureau
        of the Census.
        (B) Limitation
          (i) In general
            Direct allocations made under subparagraph (A) shall be
          made to a local participating jurisdiction only if - 
              (I) the participating jurisdiction has a total population
            of 150,000 individuals or more, as determined on the basis
            of the most recent census data compiled by the Bureau of
            the Census; or
              (II) the participating jurisdiction would receive an
            allocation of $50,000 or more.
          (ii) Reversion
            Any allocation that would have otherwise been made to a
          participating jurisdiction that does not meet the
          requirements of clause (i) shall revert back to the State in
          which the participating jurisdiction is located.
    (e) Reallocation
      If any amounts allocated to a participating jurisdiction under
    this section become available for reallocation, the amounts shall
    be reallocated to other participating jurisdictions in accordance
    with subsection (d) of this section.
    (f) Applicability of other provisions
      (1) In general
        Except as otherwise provided in this section, grants made under
      this section shall not be subject to the provisions of this
      subchapter.
      (2) Applicable provisions
        In addition to the requirements of this section, grants made
      under this section shall be subject to the provisions of
      subchapter I of this chapter, sections 12745(b), 12748, 12749,
      12751, 12753, 12754, and 12756(a) of part A of this subchapter,
      and part F of this subchapter.
      (3) References
        In applying the requirements of part A of this subchapter
      referred to in paragraph (2) - 
          (A) any references to funds under part A of this subchapter
        shall be considered to refer to amounts made available for
        assistance under this section; and
          (B) any references to funds allocated or reallocated under
        section 12747 or 12747(d) of this title shall be considered to
        refer to amounts allocated or reallocated under subsection (d)
        or (e) of this section, respectively.
    (g) Housing strategy
      To be eligible to receive a grant under this section in any
    fiscal year, a participating jurisdiction shall include in its
    comprehensive housing affordability strategy developed under
    section 12705 of this title for such fiscal year - 
        (1) a description of the anticipated use of any grant received
      under this section;
        (2) a plan for conducting targeted outreach to residents and
      tenants of public housing, trailer parks, and manufactured
      housing, and to other families assisted by public housing
      agencies, for the purpose of ensuring that grant amounts provided
      under this section to a participating jurisdiction are used for
      downpayment assistance for such residents, tenants, and families;
      and
        (3) a description of the actions to be taken to ensure the
      suitability of families receiving downpayment assistance under
      this section to undertake and maintain homeownership.
    (h) Report
      Not later than June 30, 2006, the Comptroller General of the
    United States shall submit a report containing a State-by-State
    analysis of the impact of grants awarded under this section to - 
        (1) the Committee on Banking, Housing, and Urban Affairs of the
      Senate; and
        (2) the Committee on Financial Services of the House of
      Representatives.
    (i) Sunset
      The Secretary shall have no authority to make grants under this
    Act after December 31, 2007.
    (j) Relocation assistance and downpayment assistance
      The Uniform Relocation Assistance and Real Property Acquisition
    Policies Act of 1970 (84 Stat. 1894) [42 U.S.C. 4601 et seq.] shall
    not apply to downpayment assistance under this section.
    (k) Authorization of appropriations
      There is authorized to be appropriated to carry out this section
    $200,000,000 for each of fiscal years 2004 through 2007.

-SOURCE-
    (Pub. L. 101-625, title II, Sec. 271, Nov. 28, 1990, 104 Stat.
    4124; Pub. L. 108-186, title I, Sec. 102, Dec. 16, 2003, 117 Stat.
    2686.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This Act, referred to in subsec. (i), is Pub. L. 101-625, Nov.
    28, 1990, 104 Stat. 4079, as amended, known as the Cranston-
    Gonzalez National Affordable Housing Act. For complete
    classification of this Act to the Code, see Short Title note set
    out under section 12701 of this title and Tables.
      The Uniform Relocation Assistance and Real Property Acquisition
    Policies Act of 1970, referred to in subsec. (j), is Pub. L. 91-
    646, Jan. 2, 1971, 84 Stat. 1894, as amended, which is classified
    principally to chapter 61 (Sec. 4601 et seq.) of this title. For
    complete classification of this Act to the Code, see Short Title
    note set out under section 4601 of this title and Tables.

-MISC1-
                                AMENDMENTS                            
      2003 - Pub. L. 108-186 amended section generally. Prior to
    amendment, section required the Comptroller General to carry out a
    study of ways in which financing for affordable housing may be made
    available to assist in the most efficient implementation of
    comprehensive housing affordability strategies of participating
    jurisdictions and to submit to Congress and the Secretary, not
    later than one year after Nov. 28, 1990, a report containing any
    recommendations for legislative or administrative actions needed to
    improve the availability of mortgage finance for affordable
    housing.

-End-

-CITE-
    42 USC Part F - General Provisions                          01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING
    Part F - General Provisions

-HEAD-
                        PART F - GENERAL PROVISIONS                    

-End-

-CITE-
    42 USC Sec. 12831                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING
    Part F - General Provisions

-HEAD-
    Sec. 12831. Equal opportunity

-STATUTE-
    (a) Solicitation of contracts
      Each participating jurisdiction shall prescribe procedures
    acceptable to the Secretary to establish and oversee a minority
    outreach program within each such jurisdiction to ensure the
    inclusion, to the maximum extent possible, of minorities and women,
    and entities owned by minorities and women, including, without
    limitation, real estate firms, construction firms, appraisal firms,
    management firms, financial institutions, investment banking firms,
    underwriters, accountants, and providers of legal services, in all
    contracts, entered into by the participating jurisdiction with such
    persons or entities, public and private, in order to facilitate the
    activities of the participating jurisdiction to provide affordable
    housing authorized under this Act or any other Federal housing law
    applicable to such jurisdiction.
    (b) Report to Congress
      Before the end of the 180-day period beginning on the date the
    first allocation of funds is made under section 12747 of this
    title, the Secretary shall submit to the Congress a report
    containing a description of the actions taken by each participating
    jurisdiction pursuant to subsection (a) of this section and such
    recommendations for administrative and legislative action as the
    Secretary may determine to be appropriate to carry out the purposes
    of such subsection.

-SOURCE-
    (Pub. L. 101-625, title II, Sec. 281, Nov. 28, 1990, 104 Stat.
    4125.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This Act, referred to in subsec. (a), is Pub. L. 101-625, Nov.
    28, 1990, 104 Stat. 4079, known as the Cranston-Gonzalez National
    Affordable Housing Act. For complete classification of this Act to
    the Code, see Short Title note set out under section 12701 of this
    title and Tables.

-End-

-CITE-
    42 USC Sec. 12832                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING
    Part F - General Provisions

-HEAD-
    Sec. 12832. Nondiscrimination

-STATUTE-
      No person in the United States shall on the grounds of race,
    color, national origin, religion, or sex be excluded from
    participation in, be denied the benefits of, or be subjected to
    discrimination under any program or activity funded in whole or in
    part with funds made available under this subchapter. Any
    prohibition against discrimination on the basis of age under the
    Age Discrimination Act of 1975 [42 U.S.C. 6101 et seq.] or with
    respect to an otherwise qualified handicapped individual as
    provided in section 794 of title 29 shall also apply to any such
    program or activity. The Secretary may waive this section in
    connection with the use of funds made available under this
    subchapter on lands set aside under the Hawaiian Homes Commission
    Act, 1920 (42 Stat. 108).

-SOURCE-
    (Pub. L. 101-625, title II, Sec. 282, Nov. 28, 1990, 104 Stat.
    4125; Pub. L. 104-204, title II, Sec. 213, Sept. 26, 1996, 110
    Stat. 2904.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Age Discrimination Act of 1975, referred to in text, is title
    III of Pub. L. 94-135, Nov. 28, 1975, 89 Stat. 728, as amended,
    which is classified generally to chapter 76 (Sec. 6101 et seq.) of
    this title. For complete classification of this Act to the Code,
    see Short Title note set out under section 6101 of this title and
    Tables.
      The Hawaiian Homes Commission Act, 1920, referred to in text, is
    act July 9, 1921, ch. 42, 42 Stat. 108, as amended, which was
    classified generally to sections 691 to 718 of Title 48,
    Territories and Insular Possessions, and was omitted from the Code.

-MISC1-
                                AMENDMENTS                            
      1996 - Pub. L. 104-204 inserted at end "The Secretary may waive
    this section in connection with the use of funds made available
    under this subchapter on lands set aside under the Hawaiian Homes
    Commission Act, 1920 (42 Stat. 108)."

-End-

-CITE-
    42 USC Sec. 12833                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING
    Part F - General Provisions

-HEAD-
    Sec. 12833. Audits by Comptroller General

-STATUTE-
    (a) Audits of HOME Investment Partnerships program
      The Comptroller General, when the Comptroller General deems it to
    be appropriate or when requested by the Committee on Banking,
    Housing, and Urban Affairs of the Senate or the Committee on
    Banking, Finance and Urban Affairs of the House of Representatives,
    shall conduct a full financial audit of the records of the HOME
    Investment Partnerships program for any fiscal year. The report of
    the Comptroller General shall be submitted promptly to the
    Secretary and the Congress and shall be published.
    (b) Audits of recipients
      The financial transactions of participating jurisdictions and of
    other recipients of funds provided under this subchapter may,
    insofar as they relate to funds provided under this subchapter, be
    audited by the Government Accountability Office under such rules
    and regulations as may be prescribed by the Comptroller General of
    the United States. The representatives of the Government
    Accountability Office shall have access to all books, accounts,
    records, reports, files, and other papers, things, or property
    belonging to or in use by such recipients pertaining to such
    financial transactions and necessary to facilitate the audit.

-SOURCE-
    (Pub. L. 101-625, title II, Sec. 283, Nov. 28, 1990, 104 Stat.
    4125; Pub. L. 103-233, title II, Sec. 205, Apr. 11, 1994, 108 Stat.
    364; Pub. L. 108-271, Sec. 8(b), July 7, 2004, 118 Stat. 814.)

-MISC1-
                                AMENDMENTS                            
      2004 - Subsec. (b). Pub. L. 108-271 substituted "Government
    Accountability Office" for "General Accounting Office" in two
    places.
      1994 - Pub. L. 103-233, Sec. 205(1), substituted "Audits by
    Comptroller General" for "Annual audits and accountability" in
    section catchline.
      Subsec. (a). Pub. L. 103-233, Sec. 205(4), struck out after first
    sentence "The initiation of an audit for a fiscal year under the
    previous sentence shall obviate the requirement for an audit by an
    independent accounting firm under paragraph (a) for that fiscal
    year."
      Pub. L. 103-233, Sec. 205(3)(B), (C), redesignated subsec. (b)(1)
    as (a) and realigned margins.
      Pub. L. 103-233, Sec. 205(2), struck out heading and text of
    subsec. (a). Text read as follows: "The Secretary, except as
    provided in paragraph (b)(1), shall contract annually with an
    independent accounting firm to provide for a full financial audit
    of the records of the HOME Investment Partnerships program for each
    fiscal year. Funds available for departmental administration may be
    used to provide for such audits. Each audit shall be performed as
    soon as practicable after the close of the fiscal year and in
    accordance with generally accepted Government auditing standards
    approved by the Comptroller General of the United States
    (hereinafter referred to as the 'Comptroller General'), and shall
    be consistent with the requirements of sections 9105 and 9106 of
    title 31. The Secretary shall promptly submit the report of the
    independent accounting firm to the Congress, consistent with the
    requirements of section 9106 of title 31, and such report shall be
    published. The requirement for an audit under this section shall be
    in lieu of the requirement for an audit by the Comptroller General
    under section 9105(a) of title 31."
      Subsec. (b). Pub. L. 103-233, Sec. 205(3), struck out heading
    "Audits by the Comptroller General. - ", redesignated subsec.
    (b)(2) as (b), and realigned margins.

-CHANGE-
                              CHANGE OF NAME                          
      Committee on Banking, Finance and Urban Affairs of House of
    Representatives treated as referring to Committee on Banking and
    Financial Services of House of Representatives by section 1(a) of
    Pub. L. 104-14, set out as a note preceding section 21 of Title 2,
    The Congress. Committee on Banking and Financial Services of House
    of Representatives abolished and replaced by Committee on Financial
    Services of House of Representatives, and jurisdiction over matters
    relating to securities and exchanges and insurance generally
    transferred from Committee on Energy and Commerce of House of
    Representatives by House Resolution No. 5, One Hundred Seventh
    Congress, Jan. 3, 2001.

-MISC2-
                     EFFECTIVE DATE OF 1994 AMENDMENT                 
      Amendment by Pub. L. 103-233 applicable with respect to any
    amounts made available to carry out this subchapter after Apr. 11,
    1994, and any amounts made available to carry out this subchapter
    before that date that remain uncommitted on that date, with
    Secretary to issue any regulations necessary to carry out such
    amendment not later than end of 45-day period beginning on that
    date, see section 209 of Pub. L. 103-233, set out as a note under
    section 5301 of this title.

-End-

-CITE-
    42 USC Sec. 12834                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING
    Part F - General Provisions

-HEAD-
    Sec. 12834. Uniform recordkeeping and reports to Congress

-STATUTE-
    (a) Uniform requirements
      The Secretary shall develop and establish uniform recordkeeping,
    performance reporting, and auditing requirements for use by
    participating jurisdictions.
    (b) Omitted

-SOURCE-
    (Pub. L. 101-625, title II, Sec. 284, Nov. 28, 1990, 104 Stat.
    4126.)

-COD-
                               CODIFICATION                           
      Subsec. (b) of this section, which required the Secretary to make
    an annual report to Congress that summarizes and assesses the
    results of reports provided under this section, terminated,
    effective May 15, 2000, pursuant to section 3003 of Pub. L. 104-66,
    as amended, set out as a note under section 1113 of Title 31, Money
    and Finance. See, also, the 3rd item on page 102 of House Document
    No. 103-7.

-End-

-CITE-
    42 USC Sec. 12835                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING
    Part F - General Provisions

-HEAD-
    Sec. 12835. Citizen participation

-STATUTE-
      The Secretary shall ensure that each participating jurisdiction,
    and each jurisdiction seeking to become a participating
    jurisdiction, complies with the requirements of section 12707 of
    this title.

-SOURCE-
    (Pub. L. 101-625, title II, Sec. 285, Nov. 28, 1990, 104 Stat.
    4126.)

-End-

-CITE-
    42 USC Sec. 12836                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING
    Part F - General Provisions

-HEAD-
    Sec. 12836. Labor

-STATUTE-
    (a) In general
      Any contract for the construction of affordable housing with 12
    or more units assisted with funds made available under this part
    shall contain a provision requiring that not less than the wages
    prevailing in the locality, as predetermined by the Secretary of
    Labor pursuant to sections 3141-3144, 3146, and 3147 of title 40,
    shall be paid to all laborers and mechanics employed in the
    development of affordable housing involved, and participating
    jurisdictions shall require certification as to compliance with the
    provisions of this section prior to making any payment under such
    contract.
    (b) Waiver
      Subsection (a) of this section shall not apply if the individual
    receives no compensation or is paid expenses, reasonable benefits,
    or a nominal fee to perform the services for which the individual
    volunteered and such persons are not otherwise employed at any time
    in the construction work.

-SOURCE-
    (Pub. L. 101-625, title II, Sec. 286, Nov. 28, 1990, 104 Stat.
    4126.)

-COD-
                               CODIFICATION                           
      In subsec. (a), "sections 3141-3144, 3146, and 3147 of title 40"
    substituted for "the Davis-Bacon Act (40 U.S.C. 276a - 276a-5)" on
    authority of Pub. L. 107-217, Sec. 5(c), Aug. 21, 2002, 116 Stat.
    1303, the first section of which enacted Title 40, Public
    Buildings, Property, and Works.

-End-

-CITE-
    42 USC Sec. 12837                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING
    Part F - General Provisions

-HEAD-
    Sec. 12837. Interstate agreements

-STATUTE-
      The consent of the Congress is hereby given to any two or more
    States to enter into agreements or compacts, not in conflict with
    any law of the United States, for cooperative efforts and mutual
    assistance in support of activities authorized under this
    subchapter as they pertain to interstate areas and to localities
    within such States, and to establish such agencies, joint or
    otherwise, as they may deem desirable for making such agreements
    and compacts effective.

-SOURCE-
    (Pub. L. 101-625, title II, Sec. 287, Nov. 28, 1990, 104 Stat.
    4127.)

-End-

-CITE-
    42 USC Sec. 12838                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING
    Part F - General Provisions

-HEAD-
    Sec. 12838. Environmental review

-STATUTE-
    (a) In general
      In order to assure that the policies of the National
    Environmental Policy Act of 1969 [42 U.S.C. 4321 et seq.] and other
    provisions of law which further the purposes of such Act (as
    specified in regulations issued by the Secretary) are most
    effectively implemented in connection with the expenditure of funds
    under this subchapter, and to assure to the public undiminished
    protection of the environment, the Secretary, in lieu of the
    environmental protection procedures otherwise applicable, may under
    regulations provide for the release of funds for particular
    projects to jurisdictions or insular areas under this subchapter
    who assume all of the responsibilities for environmental review,
    decisionmaking, and action pursuant to such Act, and such other
    provisions of law as the regulations of the Secretary specify, that
    would apply to the Secretary were he to undertake such projects as
    Federal projects. The Secretary shall issue regulations to carry
    out this section only after consultation with the Council on
    Environmental Quality. The regulations shall provide - 
        (1) for the monitoring of the environmental reviews performed
      under this section;
        (2) in the discretion of the Secretary, to facilitate training
      for the performance of such reviews; and
        (3) for the suspension or termination of the assumption under
      this section.

    The Secretary's duty under the preceding sentence shall not be
    construed to limit or reduce any responsibility assumed by a State
    or unit of general local government with respect to any particular
    release of funds.
    (b) Procedure
      The Secretary shall approve the release of funds subject to the
    procedures authorized by this section only if, at least 15 days
    prior to such approval and prior to any commitment of funds to such
    projects (!1) the jurisdiction or insular area has submitted to the
    Secretary a request for such release accompanied by a certification
    which meets the requirements of subsection (c) of this section. The
    Secretary's approval of any such certification shall be deemed to
    satisfy his responsibilities under the National Environmental
    Policy Act of 1969 [42 U.S.C. 4321 et seq.] and such other
    provisions of law as the regulations of the Secretary specify
    insofar as those responsibilities relate to the releases of funds
    for projects to be carried out pursuant thereto which are covered
    by such certification.

    (c) Certification
      A certification under the procedures authorized by this section
    shall - 
        (1) be in a form acceptable to the Secretary,
        (2) be executed by the chief executive officer or other officer
      of the recipient of assistance under this subchapter qualified
      under regulations of the Secretary,
        (3) specify that the recipient of assistance under this
      subchapter has fully carried out its responsibilities as
      described under subsection (a) of this section, and
        (4) specify that the certifying officer (A) consents to assume
      the status of a responsible Federal official under the National
      Environmental Policy Act of 1969 [42 U.S.C. 4321 et seq.] and
      each provision of law specified in regulations issued by the
      Secretary insofar as the provisions of such Act or other such
      provision of law apply pursuant to subsection (a) of this
      section, and (B) is authorized and consents on behalf of the
      jurisdiction or insular area and himself to accept the
      jurisdiction of the Federal courts for the purpose of enforcement
      of his responsibilities as such an official.
    (d) Assistance to units of general local government from a State
      In the case of assistance to units of general local government
    from a State, the State shall perform those actions of the
    Secretary described in subsection (b) of this section and the
    performance of such actions shall be deemed to satisfy the
    Secretary's responsibilities referred to in the second sentence of
    such subsection.

-SOURCE-
    (Pub. L. 101-625, title II, Sec. 288, Nov. 28, 1990, 104 Stat.
    4127; Pub. L. 103-233, title II, Sec. 206, Apr. 11, 1994, 108 Stat.
    365; Pub. L. 104-330, title V, Sec. 505(a)(2), Oct. 26, 1996, 110
    Stat. 4044.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The National Environmental Policy Act of 1969, referred to in
    subsecs. (a), (b), and (c)(4), is Pub. L. 91-190, Jan. 1, 1970, 83
    Stat. 852, as amended, which is classified generally to chapter 55
    (Sec. 4321 et seq.) of this title. For complete classification of
    this Act to the Code, see Short Title note set out under section
    4321 of this title and Tables.

-MISC1-
                                AMENDMENTS                            
      1996 - Subsec. (a). Pub. L. 104-330, Sec. 505(a)(2)(A), struck
    out ", Indian tribes," after "projects to jurisdictions" in
    introductory provisions.
      Subsecs. (b), (c)(4). Pub. L. 104-330, Sec. 505(a)(2)(B), (C),
    struck out ", Indian tribe," after "the jurisdiction".
      1994 - Subsec. (a). Pub. L. 103-233, Sec. 206(1), substituted
    "jurisdictions, Indian tribes, or insular areas" for "participating
    jurisdictions" and inserted before period at end "The regulations
    shall provide - 
        "(1) for the monitoring of the environmental reviews performed
      under this section;
        "(2) in the discretion of the Secretary, to facilitate training
      for the performance of such reviews; and
        "(3) for the suspension or termination of the assumption under
      this section.
    The Secretary's duty under the preceding sentence shall not be
    construed to limit or reduce any responsibility assumed by a State
    or unit of general local government with respect to any particular
    release of funds."
      Subsec. (b). Pub. L. 103-233, Sec. 206(2), substituted
    "jurisdiction, Indian tribe, or insular area" for "participating
    jurisdiction".
      Subsec. (c)(4)(B). Pub. L. 103-233, Sec. 206(3), substituted
    "jurisdiction, Indian tribe, or insular area" for "participating
    jurisdiction".
      Subsec. (d). Pub. L. 103-233, Sec. 206(4), substituted
    "Assistance to units of general local government from a State" for
    "Assistance to a State" in heading and "In the case of assistance
    to units of general local government from a State" for "In the case
    of assistance to States" in text.

                     EFFECTIVE DATE OF 1996 AMENDMENT                 
      Amendment by Pub. L. 104-330 effective Oct. 1, 1997, except as
    otherwise expressly provided, see section 107 of Pub. L. 104-330,
    set out as an Effective Date note under section 4101 of Title 25,
    Indians.
      Amendment by Pub. L. 104-330 applicable with respect to amounts
    made available for assistance under this subchapter for fiscal year
    1998 and fiscal years thereafter, see section 505(b) of Pub. L. 104-
    330, set out as a note under section 12747 of this title.

                     EFFECTIVE DATE OF 1994 AMENDMENT                 
      Amendment by Pub. L. 103-233 applicable with respect to any
    amounts made available to carry out this subchapter after Apr. 11,
    1994, and any amounts made available to carry out this subchapter
    before that date that remain uncommitted on that date, with
    Secretary to issue any regulations necessary to carry out such
    amendment not later than end of 45-day period beginning on that
    date, see section 209 of Pub. L. 103-233, set out as a note under
    section 5301 of this title.

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

-End-

-CITE-
    42 USC Sec. 12839                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING
    Part F - General Provisions

-HEAD-
    Sec. 12839. Termination of existing housing programs

-STATUTE-
    (a) In general
      Except with respect to projects and programs for which binding
    commitments have been entered into prior to October 1, 1991, no new
    grants or loans shall be made after October 1, 1991, under - 
        (1) section 17 of the United States Housing Act of 1937 [42
      U.S.C. 1437o];
        (2) section 312 of the Housing Act of 1964 [42 U.S.C. 1452b];
        (3) title VI of the Housing and Community Development Act of
      1987;
        (4) section 8(e)(2) of the United States Housing Act of 1937
      [42 U.S.C. 1437f(e)(2)], except for funds allocated under such
      section for single room occupancy dwellings as authorized by
      title IV of the McKinney-Vento Homeless Assistance Act [42 U.S.C.
      11361 et seq.]; and
        (5) section 810 of the Housing and Community Development Act of
      1974 [12 U.S.C. 1706e].
    (b) Repeals
      (1) In general
        Except as provided in paragraph (2), effective on October 1,
      1991, the provisions of law referred to in subsection (a) of this
      section are repealed.
      (2) No effect on SRO program
        The provision of law referred to in subsection (a)(4) of this
      section shall remain in effect with respect to single room
      occupancy dwellings as authorized by title IV of the McKinney-
      Vento Homeless Assistance Act [42 U.S.C. 11361 et seq.].
    (c) Disposition of repayments
      Any amounts received on or after October 1, 1991, as repayments
    or recaptures in connection with the programs referred to in
    subsection (a) of this section and any other amounts for such
    programs that remain or become unobligated on or after such date,
    shall be paid into the general fund of the Treasury.

-SOURCE-
    (Pub. L. 101-625, title II, Sec. 289, Nov. 28, 1990, 104 Stat.
    4128; Pub. L. 106-400, Sec. 2, Oct. 30, 2000, 114 Stat. 1675.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Title VI of the Housing and Community Development Act of 1987
    [Pub. L. 100-242], referred to in subsec. (a)(3), is set out as a
    note under section 1715l of Title 12, Banks and Banking.
      The McKinney-Vento Homeless Assistance Act, referred to in
    subsecs. (a)(4), (b)(2), is Pub. L. 100-77, July 22, 1987, 101
    Stat. 482, as amended. Title IV of the Act is classified
    principally to subchapter IV (Sec. 11361 et seq.) of chapter 119 of
    this title. For complete classification of this Act to the Code,
    see Short Title note set out under section 11301 of this title and
    Tables.

-MISC1-
                                AMENDMENTS                            
      2000 - Subsecs. (a)(4), (b)(2). Pub. L. 106-400 substituted
    "McKinney-Vento Homeless Assistance Act" for "Stewart B. McKinney
    Homeless Assistance Act".

-End-

-CITE-
    42 USC Sec. 12840                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER II - INVESTMENT IN AFFORDABLE HOUSING
    Part F - General Provisions

-HEAD-
    Sec. 12840. Suspension of requirements for disaster areas

-STATUTE-
      For funds designated under this subchapter by a recipient to
    address the damage in an area for which the President has declared
    a disaster under title IV of the Robert T. Stafford Disaster Relief
    and Emergency Assistance Act [42 U.S.C. 5170 et seq.], the
    Secretary may suspend all statutory requirements for purposes of
    assistance under this subchapter for that area, except for those
    related to public notice of funding availability,
    nondiscrimination, fair housing, labor standards, environmental
    standards, and low-income housing affordability.

-SOURCE-
    (Pub. L. 101-625, title II, Sec. 290, as added Pub. L. 103-233,
    title II, Sec. 208, Apr. 11, 1994, 108 Stat. 366.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Robert T. Stafford Disaster Relief and Emergency Assistance
    Act, referred to in text, is Pub. L. 93-288, May 22, 1974, 88 Stat.
    143, as amended. Title IV of the Act is classified generally to
    subchapter IV (Sec. 5170 et seq.) of chapter 68 of this title. For
    complete classification of this Act to the Code, see Short Title
    note set out under section 5121 of this title and Tables.

-MISC1-
                              EFFECTIVE DATE                          
      Section applicable with respect to any amounts made available to
    carry out this subchapter after Apr. 11, 1994, and any amounts made
    available to carry out this subchapter before that date that remain
    uncommitted on that date, with Secretary to issue any regulations
    necessary to carry out this section not later than end of 45-day
    period beginning on that date, see section 209 of Pub. L. 103-233,
    set out as an Effective Date of 1994 Amendment note under section
    5301 of this title.

-End-

-CITE-
    42 USC SUBCHAPTER III - NATIONAL HOMEOWNERSHIP TRUST
           DEMONSTRATION                                   01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER III - NATIONAL HOMEOWNERSHIP TRUST DEMONSTRATION

-HEAD-
        SUBCHAPTER III - NATIONAL HOMEOWNERSHIP TRUST DEMONSTRATION    

-End-

-CITE-
    42 USC Sec. 12851                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER III - NATIONAL HOMEOWNERSHIP TRUST DEMONSTRATION

-HEAD-
    Sec. 12851. National Homeownership Trust

-STATUTE-
    (a) Establishment
      There is established the National Homeownership Trust, which
    shall be in the Department of Housing and Urban Development and
    shall provide assistance to first-time homebuyers in accordance
    with this subchapter.
    (b) Board of Directors
      The Trust shall be governed by a Board of Directors, which shall
    be composed of - 
        (1) the Secretary of Housing and Urban Development, who shall
      be the chairperson of the Board;
        (2) the Secretary of the Treasury;
        (3) the chairperson of the Board of Directors of the Federal
      Deposit Insurance Corporation;
        (4) the chairperson of the Federal Housing Finance Board;
        (5) the chairperson of the Board of Directors of the Federal
      National Mortgage Association;
        (6) the chairperson of the Board of Directors of the Federal
      Home Loan Mortgage Corporation; and
        (7) 1 individual representing consumer interests, who shall be
      appointed by the President of the United States, by and with the
      advice and consent of the Senate.
    (c) Powers of Trust
      The Trust shall have the same powers as the powers given the
    Government National Mortgage Association in section 1723a(a) of
    title 12.
    (d) Travel and per diem
      Members of the Board of Directors shall receive no additional
    compensation by reason of service on the Board, but shall be
    allowed travel expenses, including per diem in lieu of subsistence,
    as provided for employees of the Federal Government or in the same
    manner as persons employed intermittently in the Government service
    are allowed under section 5703 of title 5, as appropriate.
    (e) Director and staff
      (1) Director
        The Board of Directors may appoint an executive director of the
      Trust and fix the compensation of the executive director, which
      shall be paid from amounts in the National Homeownership Trust
      Fund.
      (2) Staff
        Subject to such rules as the Board of Directors may prescribe,
      the Trust may appoint and hire such staff and provide for offices
      as may be necessary to carry out its duties. The Trust may fix
      the compensation of the staff, which shall be paid from amounts
      in the National Homeownership Trust Fund.

-SOURCE-
    (Pub. L. 101-625, title III, Sec. 302, Nov. 28, 1990, 104 Stat.
    4129.)

-MISC1-
                                SHORT TITLE                            
      For short title of this subchapter as the "National Homeownership
    Trust Act", see Short Title note set out under section 12701 of
    this title.

-End-

-CITE-
    42 USC Sec. 12852                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER III - NATIONAL HOMEOWNERSHIP TRUST DEMONSTRATION

-HEAD-
    Sec. 12852. Assistance for first-time homebuyers

-STATUTE-
    (a) In general
      The Trust shall provide assistance payments for first-time
    homebuyers (including homebuyers buying shares in limited equity
    cooperatives) in the following manners:
      (1) Interest rate buydowns
        Assistance payments so that the rate of interest payable on the
      mortgages by the homebuyers does not exceed 6 percent.
      (2) Downpayment assistance
        Assistance payments to provide amounts for downpayments
      (including closing costs and other costs payable at the time of
      closing) on mortgages for such homebuyers.
      (3) Assistance in connection with mortgage revenue bonds
        financing
        Interest rate buydowns and downpayment assistance in the manner
      provided in subsection (e) of this section.
      (4) Second mortgage assistance
        Assistance payments to provide loans (secured by second
      mortgages) with deferred payment of interest and principal; and
      (!1)

      (5) Capitalization of revolving loan funds
        Grants to public organizations or agencies to establish
      revolving loan funds to provide homeownership assistance to
      eligible first-time homebuyers consistent with the requirements
      of this subchapter. Such grants shall be matched by an equal
      amount of local investment in such revolving loan funds. Any
      proceeds or repayments from loans made under this paragraph shall
      be returned to the revolving loan fund established under this
      paragraph to be used for purposes related to this section.
    (b) Eligibility requirements
      Assistance payments under this subchapter may be made only to
    homebuyers and for mortgages meeting the following requirements:
      (1) First-time homebuyer
        The homebuyer is an individual who - 
          (A) (and whose spouse) has had no ownership in a principal
        residence during the 3-year period ending on the date of
        purchase of the property with respect to which assistance
        payments are made under this subchapter;
          (B) is a displaced homemaker who, except for owning a home
        with his or her spouse or residing in a home owned by the
        spouse, meets the requirements of subparagraph (A);
          (C) is a single parent who, except for owning a home with his
        or her spouse or residing in a home owned by the spouse while
        married, meets the requirements of subparagraph (A); or
          (D) meets the requirements of subparagraph (A), (B), or (C),
        except for owning, as a principal residence, a dwelling unit
        whose structure is - 
            (i) not permanently affixed to a permanent foundation in
          accordance with local or other applicable regulations; or
            (ii) not in compliance with State, local, or model building
          codes, or other applicable codes, and cannot be brought into
          compliance with such codes for less than the cost of
          constructing a permanent structure.
      (2) Maximum income of homebuyer
        The aggregate annual income of the homebuyer and the members of
      the family of the homebuyer residing with the homebuyer, for the
      12-month period preceding the date of the application of the
      homebuyer for assistance under this subchapter, does not exceed -
      
          (A) 95 percent of the median income for a family of 4 persons
        (adjusted by family size) in the applicable metropolitan
        statistical area (or such other area that the Board of
        Directors determines for areas outside of metropolitan
        statistical areas); or
          (B) 115 percent of such median income (adjusted by family
        size) in the case of an area that is subject to a high cost
        area mortgage limit under title II of the National Housing Act
        [12 U.S.C. 1707 et seq.].

      The Board of Directors shall provide for certification of such
      income for purposes of initial eligibility for assistance
      payments under this subchapter and shall provide for
      recertification of homebuyers (and families of homebuyers) so
      assisted not less than every 2 years thereafter.
      (3) Certification
        The homebuyer (and spouse, where applicable) shall certify that
      the homebuyer has made a good faith effort to obtain a market
      rate mortgage and has been denied because the annual income of
      the homebuyer and the members of the family of the homebuyer
      residing with the homebuyer is insufficient.
      (4) Principal residence
        The property securing the mortgage is a single-family residence
      or unit in a cooperative and is the principal residence of the
      homebuyer.
      (5) Maximum mortgage amount
        The principal obligation of the mortgage does not exceed the
      principal amount that could be insured with respect to the
      property under the National Housing Act [12 U.S.C. 1701 et seq.].
      (6) Maximum interest rate
        The interest payable on the mortgage is established at a fixed
      rate that does not exceed a maximum rate of interest established
      by the Trust taking into consideration prevailing interest rates
      on similar mortgages.
      (7) Responsible mortgagee
        The mortgage has been made to, and is held by, a mortgagee that
      is federally insured or that is otherwise approved by the Trust
      as responsible and able to service the mortgage properly.
      (8) Minimum downpayment
        For a first-time homebuyer to receive downpayment assistance
      under subsection (a)(2) of this section, the homebuyer shall have
      paid not less than 1 percent of the cost of acquisition of the
      property (excluding any mortgage insurance premium paid at the
      time the mortgage is insured), as such cost is estimated by the
      Board of Directors.
    (c) Terms of assistance
      (1) Security
        Assistance payments under this subchapter shall be secured by a
      lien on the property involved. The lien shall be subordinate to
      all mortgages existing on the property on the date on which the
      first assistance payment is made.
      (2) Repayment upon sale
        Assistance payments under this subchapter shall be repayable
      from the net proceeds of the sale, without interest, upon the
      sale of the property for which the assistance payments are made.
      If the sale results in no net proceeds or the net proceeds are
      insufficient to repay the amount of the assistance payments in
      full, the Board of Directors shall release the lien to the extent
      that the debt secured by the lien remains unpaid.
      (3) Repayment upon increased income
        If the aggregate annual income of the homebuyer (and family of
      the homebuyer) assisted under this subchapter exceeds the
      applicable maximum income allowable under subsection (b)(2) of
      this section for any 2-year period after such assistance is
      provided, the Board of Directors may provide for the repayment,
      on a monthly basis, of all or a portion of such assistance
      payments, based on the amount of assistance provided and the
      income of the homebuyer (and family of the homebuyer).
      (4) Repayment if property ceases to be principal residence
        If the property for which assistance payments are made ceases
      to be the principal residence of the first-time homebuyer (or the
      family of the homebuyer), the Board of Directors may provide for
      the repayment of all or a portion of the assistance payments.
      (5) Available assistance
        The Trust may make assistance payments under paragraphs (1) and
      (2) of subsection (a) of this section with respect to a single
      mortgage of an eligible homebuyer.
    (d) Allocation formula
      Amounts available in any fiscal year for assistance under this
    subchapter shall be allocated for homebuyers in each State on the
    basis of the need of eligible first-time homebuyers in each State
    for such assistance in comparison with the need of eligible first-
    time homebuyers for such assistance among all States.
    (e) Assistance in connection with housing financed with mortgage
      revenue bonds
      (1) Authority
        The Trust shall provide assistance for first-time homebuyers in
      the form of interest rate buydowns and downpayment assistance
      under this subsection. Such assistance shall be available only
      with respect to mortgages for the purchase of residences (A)
      financed with the proceeds of a qualified mortgage bond (as such
      term is defined in section 143 of title 26), or (B) for which a
      credit is allowable under section 25 of title 26.
      (2) Eligibility
        To be eligible for assistance under this subsection, homebuyers
      and mortgages shall also meet the requirements under subsection
      (b) of this section, except that - 
          (A) the certification under subsection (b)(3) of this section
        shall not be required for assistance under this subsection;
          (B) the provisions of subsection (b)(2) of this section shall
        not apply to assistance under this section; and
          (C) the aggregate income of the homebuyer and the members of
        the family of the homebuyer residing with the homebuyer, for
        the 12-month period preceding the date of the application of
        the homebuyer for assistance under this subsection, shall not
        exceed 80 percent of the median income for a family of 4
        persons (as adjusted for family size) in the applicable
        metropolitan statistical area.
      (3) Limitation of assistance
        Notwithstanding subsection (a) of this section, assistance
      payments for first-time homebuyers under this subsection shall be
      provided in the following manners:
        (A) Interest rate buydowns
          Assistance payments to decrease the rate of interest payable
        on the mortgages by the homebuyers, in an amount not exceeding -
         
            (i) in the first year of the mortgage, 2.0 percent of the
          total principal obligation of the mortgage;
            (ii) in the second year of the mortgage, 1.5 percent of the
          total principal obligation of the mortgage;
            (iii) in the third year of the mortgage, 1.0 percent of the
          total principal obligation of the mortgage; and
            (iv) in the fourth year of the mortgage, 0.5 percent of the
          total principal obligation of the mortgage.
        (B) Downpayment assistance
          Assistance payments to provide amounts for downpayments on
        mortgages by the homebuyers, in an amount not exceeding 2.5
        percent of the principal obligation of the mortgage.
      (3) (!2) Availability

        The Trust may make assistance payments under subparagraphs (A)
      and (B) of paragraph (3) with respect to a single mortgage of a
      homebuyer.

-SOURCE-
    (Pub. L. 101-625, title III, Sec. 303, Nov. 28, 1990, 104 Stat.
    4130; Pub. L. 102-550, title I, Sec. 182(c)-(e), Oct. 28, 1992, 106
    Stat. 3737, 3738.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The National Housing Act, referred to in subsec. (b)(2)(B), (5),
    is act June 27, 1934, ch. 847, 48 Stat. 1246, as amended, which is
    classified principally to chapter 13 (Sec. 1701 et seq.) of Title
    12, Banks and Banking. Title II of the Act is classified
    principally to subchapter II (Sec. 1707 et seq.) of chapter 13 of
    Title 12. For complete classification of this Act to the Code, see
    section 1701 of Title 12 and Tables.

-MISC1-
                                AMENDMENTS                            
      1992 - Subsec. (a)(3). Pub. L. 102-550, Sec. 182(c)(2), added
    par. (3).
      Subsec. (a)(4), (5). Pub. L. 102-550, Sec. 182(e), added pars.
    (4) and (5).
      Subsec. (b)(1)(D). Pub. L. 102-550, Sec. 182(d), added subpar.
    (D).
      Subsec. (e). Pub. L. 102-550, Sec. 182(c)(1), added subsec. (e).

-FOOTNOTE-               

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

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

-End-

-CITE-
    42 USC Sec. 12853                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER III - NATIONAL HOMEOWNERSHIP TRUST DEMONSTRATION

-HEAD-
    Sec. 12853. National Homeownership Trust Fund

-STATUTE-
    (a) Establishment
      There is established in the Treasury of the United States a
    revolving fund, to be known as the National Homeownership Trust
    Fund.
    (b) Assets
      The Fund shall consist of - 
        (1) any amount approved in appropriation Acts under section
      12857 of this title for purposes of carrying out this subchapter;
        (2) any amount received by the Trust as repayment for payments
      made under this subchapter; and
        (3) any amount received by the Trust under subsection (d) of
      this section.
    (c) Use of amounts
      The Fund shall, to the extent approved in appropriations Acts, be
    available to the Trust for purposes of carrying out this
    subchapter.
    (d) Investment of excess amounts
      Any amounts in the Fund determined by the Trust to be in excess
    of the amounts currently required to carry out the provisions of
    this subchapter shall be invested by the Trust in obligations of,
    or obligations guaranteed as to both principal and interest by, the
    United States or any agency of the United States.
    (e) Demonstration programs
      Using not more than $20,000,000 of any amounts appropriated for
    the Fund under section 12857 of this title in fiscal year 1991, the
    Secretary shall carry out demonstration programs for combining
    housing activities and economic development activities, as follows:
        (1) In Milwaukee, Wisconsin, in an amount not to exceed
      $4,200,000, for development, rehabilitation, and revitalization
      of 2 vacant structures in a blighted minority neighborhood.
        (2) In Washington, District of Columbia, in an amount not to
      exceed $10,000,000, for nonprofit neighborhood-based groups to
      acquire and rehabilitate vacant public and private housing for
      resale or rent to low- and moderate-income families and to the
      extent of and subject to engage in neighborhood-based economic
      development activities.
        (3) In Philadelphia, Pennsylvania, in an amount not to exceed
      $1,000,000, for technical assistance and organizational support
      for a community development corporation that is a city-wide
      public/private partnership engaged in the provision of technical
      assistance to neighborhood community development corporations.
        (4) In other areas, as the Secretary may determine.

-SOURCE-
    (Pub. L. 101-625, title III, Sec. 304, Nov. 28, 1990, 104 Stat.
    4132.)

-End-

-CITE-
    42 USC Sec. 12854                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER III - NATIONAL HOMEOWNERSHIP TRUST DEMONSTRATION

-HEAD-
    Sec. 12854. Definitions

-STATUTE-
      For purposes of this subchapter:
      (1) Board of Directors
        The term "Board of Directors" or "Board" means the Board of
      Directors of the National Homeownership Trust under section
      12851(b) of this title.
      (2) Displaced homemaker
        The term "displaced homemaker" means an individual who - 
          (A) is an adult;
          (B) has not worked full-time full-year in the labor force for
        a number of years, but has during such years, worked primarily
        without remuneration to care for the home and family; and
          (C) is unemployed or underemployed and is experiencing
        difficulty in obtaining or upgrading employment.
      (3) Fund
        The term "Fund" means the National Homeownership Trust Fund
      established in section 12853 of this title.
      (4) Single parent
        The term "single parent" means an individual who - 
          (A) is unmarried or legally separated from a spouse; and
          (B)(i) has 1 or more minor children for whom the individual
        has custody or joint custody; or
          (ii) is pregnant.
      (5) State
        The term "State" means the States of the United States, the
      District of Columbia, the Commonwealth of Puerto Rico, the
      Commonwealth of the Northern Mariana Islands, Guam, the Virgin
      Islands, American Samoa, the Trust Territory of the Pacific
      Islands, and any other territory or possession of the United
      States.
      (6) Trust
        The term "Trust" means the National Homeownership Trust
      established in section 12851 of this title.

-SOURCE-
    (Pub. L. 101-625, title III, Sec. 305, Nov. 28, 1990, 104 Stat.
    4132.)

-TRANS-
           TERMINATION OF TRUST TERRITORY OF THE PACIFIC ISLANDS       
      For termination of Trust Territory of the Pacific Islands, see
    note set out preceding section 1681 of Title 48, Territories and
    Insular Possessions.

-End-

-CITE-
    42 USC Sec. 12855                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER III - NATIONAL HOMEOWNERSHIP TRUST DEMONSTRATION

-HEAD-
    Sec. 12855. Regulations

-STATUTE-
      The Board of Directors shall issue any regulations necessary to
    carry out this subchapter.

-SOURCE-
    (Pub. L. 101-625, title III, Sec. 306, Nov. 28, 1990, 104 Stat.
    4133.)

-End-

-CITE-
    42 USC Sec. 12856                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER III - NATIONAL HOMEOWNERSHIP TRUST DEMONSTRATION

-HEAD-
    Sec. 12856. Report

-STATUTE-
      The Board of Directors shall submit to the Congress, not later
    than the expiration of the 90-day period beginning on the date of
    the termination of the Trust under section 12859 of this title, a
    report containing a description of the activities of the Trust and
    an analysis of the effectiveness of the Trust in assisting first-
    time homebuyers.

-SOURCE-
    (Pub. L. 101-625, title III, Sec. 307, Nov. 28, 1990, 104 Stat.
    4133.)

-End-

-CITE-
    42 USC Sec. 12857                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER III - NATIONAL HOMEOWNERSHIP TRUST DEMONSTRATION

-HEAD-
    Sec. 12857. Authorization of appropriations

-STATUTE-
      There are authorized to be appropriated for assistance payments
    under this subchapter $520,665,600 for fiscal year 1993 and
    $542,533,555 for fiscal year 1994, of which such sums as may be
    necessary shall be available in each such fiscal year for use under
    section 12852(e) of this title. Any amount appropriated under this
    section shall be deposited in the Fund and shall remain available
    until expended, subject to the provisions of section 12858 (!1) of
    this title.

-SOURCE-
    (Pub. L. 101-625, title III, Sec. 308, Nov. 28, 1990, 104 Stat.
    4133; Pub. L. 102-550, title I, Sec. 182(b), Oct. 28, 1992, 106
    Stat. 3736.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 12858 of this title, referred to in text, was in the
    original "section 311", and was translated as reading "section
    309", meaning section 309 of Pub. L. 101-625, to reflect the
    probable intent of Congress, because Pub. L. 101-625 does not
    contain a section 311.

-MISC1-
                                AMENDMENTS                            
      1992 - Pub. L. 102-550 amended section generally. Prior to
    amendment, section read as follows: "There are authorized to be
    appropriated to carry out this subchapter $250,000,000 for fiscal
    year 1991 and $521,500,000 for fiscal year 1992. Any amount
    appropriated under this section shall be deposited in the Fund and
    remain available until expended, subject to the provisions of
    section 12858 of this title."

-FOOTNOTE-
    (!1) See References in Text note below.

-End-

-CITE-
    42 USC Sec. 12858                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER III - NATIONAL HOMEOWNERSHIP TRUST DEMONSTRATION

-HEAD-
    Sec. 12858. Transition

-STATUTE-
    (a) Authority of Secretary
      Upon the termination of the Trust as provided in section 12859 of
    this title, the Secretary of Housing and Urban Development shall
    exercise any authority of the Board of Directors and the Trust in
    accordance with the provisions of this subchapter as may be
    necessary to provide for the conclusion of the outstanding affairs
    of the Trust.
    (b) Applicability of Trust provisions
      Any assistance under this subchapter shall, after termination of
    the Trust, be subject to the provisions of this subchapter that
    would have applied to such assistance if the termination had not
    occurred.
    (c) Certification of Fund to Treasury
      Upon a determination by the Secretary of Housing and Urban
    Development that the National Homeownership Trust Fund is no longer
    necessary, the Secretary shall certify any amounts remaining in the
    Fund to the Secretary of the Treasury and the Secretary of the
    Treasury shall deposit into the general fund of the Treasury as
    miscellaneous receipts any amounts remaining in the Fund.

-SOURCE-
    (Pub. L. 101-625, title III, Sec. 309, Nov. 28, 1990, 104 Stat.
    4133.)

-End-

-CITE-
    42 USC Sec. 12859                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER III - NATIONAL HOMEOWNERSHIP TRUST DEMONSTRATION

-HEAD-
    Sec. 12859. Termination

-STATUTE-
      The Trust shall terminate September 30, 1994.

-SOURCE-
    (Pub. L. 101-625, title III, Sec. 310, Nov. 28, 1990, 104 Stat.
    4133; Pub. L. 102-550, title I, Sec. 182(a), Oct. 28, 1992, 106
    Stat. 3736.)

-MISC1-
                                AMENDMENTS                            
      1992 - Pub. L. 102-550 substituted "September 30, 1994" for "on
    September 30, 1993".

-End-

-CITE-
    42 USC SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF
           MULTIFAMILY AND SINGLE FAMILY HOMES             01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE
                     FAMILY HOMES              

-HEAD-
     SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE
                               FAMILY HOMES

-End-

-CITE-
    42 USC Sec. 12870                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE
                     FAMILY HOMES              

-HEAD-
    Sec. 12870. Authorization of appropriations

-STATUTE-
    (a) Fiscal year 1993
      There are authorized to be appropriated for grants under this
    title (!1) $855,000,000 for fiscal year 1993, of which - 

        (1) $285,000,000 shall be available for activities authorized
      under title III of the United States Housing Act of 1937 [42
      U.S.C. 1437aaa et seq.], of which up to $4,500,000 of any amounts
      appropriated may be made available for technical assistance to
      potential applicants, applicants and recipients of assistance
      under this (!2) title;

        (2) $285,000,000 shall be available for activities authorized
      under part A of this subchapter, of which up to $3,250,000 of any
      amounts appropriated may be made available for technical
      assistance to potential applicants, applicants and recipients of
      assistance under this (!2) part; and
        (3) $285,000,000 shall be available for activities under part B
      of this subchapter, of which up to $2,250,000 of any amounts
      appropriated may be made available for technical assistance to
      potential applicants, applicants and recipients of assistance
      under this (!2) part.

    Of the amounts appropriated pursuant to this subsection, up to
    $40,000,000, but not less than 5 percent, shall be available for
    activities authorized under part C of this subchapter. Any amount
    appropriated pursuant to this subsection shall remain available
    until expended.
    (b) Fiscal year 1994
      There are authorized to be appropriated for grants under this
    title (!1) $883,641,000 for fiscal year 1994, of which - 
        (1) $294,547,000 shall be available for activities authorized
      under title III of the United States Housing Act of 1937 [42
      U.S.C. 1437aaa et seq.], up to $4,500,000 of which may be made
      available for technical assistance to potential applicants,
      applicants and recipients of assistance under this (!2) title;
        (2) $294,547,000 shall be available for activities authorized
      under part A of this subchapter, up to $3,250,000 of which may be
      made available for technical assistance to potential applicants,
      applicants and recipients of assistance under this (!2) part; and
        (3) $294,547,000 shall be available for activities under part B
      of this subchapter, up to $2,250,000 of which may be made
      available for technical assistance to potential applicants,
      applicants and recipients of assistance under this (!2) part.

    Of the amounts appropriated pursuant to this subsection, up to
    $41,680,000, but not less than 5 percent, shall be available for
    activities authorized under part C of this subchapter. Any amount
    appropriated pursuant to this subsection shall remain available
    until expended.
    (c) Technical assistance
      Technical assistance made available under title III of the United
    States Housing Act of 1937 [42 U.S.C. 1437aaa et seq.] or part A of
    this subchapter or part B of this subchapter may include, but shall
    not be limited to, training, clearinghouse services, the
    collection, processing and dissemination of program information
    useful for local and national program management, and provision of
    seed money. Such technical assistance may be made available
    directly, or indirectly under contracts and grants, as appropriate.
    In any fiscal year, no single applicant, potential applicant, or
    recipient under title III of the United States Housing Act of 1937,
    or part A of this subchapter or part B of this subchapter may
    receive technical assistance in an amount exceeding 20 percent of
    the total amount made available for technical assistance under such
    title or part for the fiscal year.

-SOURCE-
    (Pub. L. 101-625, title IV, Sec. 402, as added Pub. L. 102-550,
    title I, Sec. 181(a)(1), Oct. 28, 1992, 106 Stat. 3734.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This title, referred to in introductory provisions of subsecs.
    (a) and (b), is title IV of Pub. L. 101-625, Nov. 28, 1990, 104
    Stat. 4148, known as the Homeownership and Opportunity Through HOPE
    Act, which enacted this subchapter and subchapter II-A (Sec.
    1437aaa et seq.) of chapter 8 of this title, amended sections
    1437c, 1437f, 1437l, 1437p, 1437r, and 1437s of this title and
    section 1709 of Title 12, Banks and Banking, and enacted provisions
    set out as notes under sections 1437c, 1437aa, and 1437aaa of this
    title. For complete classification of title IV to the Code, see
    Short Title note set out under section 1437aaa of this title and
    Tables.
      The United States Housing Act of 1937, referred to in subsecs.
    (a)(1), (b)(1), and (c), is act Sept. 1, 1937, ch. 896, as revised
    generally by Pub. L. 93-383, title II, Sec. 201(a), Aug. 22, 1974,
    88 Stat. 653. Title III of the Act is classified generally to
    subchapter II-A (Sec. 1437aaa et seq.) of chapter 8 of this title.
    For complete classification of this Act to the Code, see Short
    Title note set out under section 1437 of this title and Tables.

-MISC1-
                GAO AUDIT OF TECHNICAL ASSISTANCE CONTRACTS            
      Section 181(a)(3) of Pub. L. 102-550 provided that: "The
    Comptroller General of the United States shall conduct an audit of
    all of the technical assistance contracts awarded for fiscal years
    1993 and 1994 pursuant to section 402 of the Cranston-Gonzalez
    National Affordable Housing Act [42 U.S.C. 12870]. The Comptroller
    General shall submit a report to the Congress describing the
    results of such audit not later than September 30, 1994."

-FOOTNOTE-
    (!1) See References in Text note below.

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

-End-

-CITE-
    42 USC Part A - HOPE for Homeownership of Multifamily
                     Units                                 01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE
                     FAMILY HOMES              
    Part A - HOPE for Homeownership of Multifamily Units

-HEAD-
           PART A - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY UNITS       

-End-

-CITE-
    42 USC Sec. 12871                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE
                     FAMILY HOMES              
    Part A - HOPE for Homeownership of Multifamily Units

-HEAD-
    Sec. 12871. Program authority

-STATUTE-
    (a) In general
      The Secretary is authorized to make - 
        (1) planning grants to enable applicants to develop
      homeownership programs; and
        (2) implementation grants to enable applicants to carry out
      homeownership programs.
    (b) Authority to reserve housing assistance
      In connection with a grant under this part, the Secretary may
    reserve authority to provide assistance under section 1437f of this
    title to the extent necessary to provide rental assistance for a
    nonpurchasing tenant who resides in the project on the date the
    Secretary approves the application for an implementation grant, for
    use by the tenant in another project.

-SOURCE-
    (Pub. L. 101-625, title IV, Sec. 421, Nov. 28, 1990, 104 Stat.
    4162; Pub. L. 102-550, title I, Sec. 181(a)(2)(B)(i), Oct. 28,
    1992, 106 Stat. 3735.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This part, referred to in subsec. (b), was in the original "this
    subtitle", meaning subtitle B (Secs. 421-431) of title IV of Pub.
    L. 101-625, Nov. 28, 1990, 104 Stat. 4162, which enacted this part
    and amended section 1709 of Title 12, Banks and Banking.

-MISC1-
                                AMENDMENTS                            
      1992 - Subsec. (c). Pub. L. 102-550 struck out subsec. (c) which
    read as follows: "Authorization of Appropriations. - There is
    authorized to be appropriated for grants under this part
    $51,000,000 for fiscal year 1991 and $280,000,000 for fiscal year
    1992. Any amounts appropriated pursuant to this subsection shall
    remain available until expended."

-End-

-CITE-
    42 USC Sec. 12872                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE
                     FAMILY HOMES              
    Part A - HOPE for Homeownership of Multifamily Units

-HEAD-
    Sec. 12872. Planning grants

-STATUTE-
    (a) Grants
      The Secretary is authorized to make planning grants to applicants
    for the purpose of developing homeownership programs under this
    part. The amount of a planning grant under this section may not
    exceed $200,000, except that the Secretary may for good cause
    approve a grant in a higher amount.
    (b) Eligible activities
      Planning grants may be used for activities to develop
    homeownership programs (which may include programs for cooperative
    ownership), including - 
        (1) development of resident management corporations and
      resident councils;
        (2) training and technical assistance of applicants related to
      the development of a specific homeownership program;
        (3) studies of the feasibility of a homeownership program;
        (4) inspection for lead-based paint hazards, as required by
      section 4822(a) of this title;
        (5) preliminary architectural and engineering work;
        (6) tenant and homebuyer counseling and training;
        (7) planning for economic development, job training, and self-
      sufficiency activities that promote economic self-sufficiency
      for homebuyers and homeowners under the homeownership program;
        (8) development of security plans; and
        (9) preparation of an application for an implementation grant
      under this part.
    (c) Application
      (1) Form and procedures
        An application for a planning grant shall be submitted by an
      applicant in such form and in accordance with such procedures as
      the Secretary shall establish.
      (2) Minimum requirements
        The Secretary shall require that an application contain at a
      minimum - 
          (A) a request for a planning grant, specifying the activities
        proposed to be carried out, the schedule for completing the
        activities, the personnel necessary to complete the activities,
        and the amount of the grant requested;
          (B) a description of the applicant and a statement of its
        qualifications;
          (C) identification and description of the eligible property
        involved, and a description of the composition of the tenants,
        including family size and income;
          (D) a certification by the public official responsible for
        submitting the comprehensive housing affordability strategy
        under section 12705 of this title that the proposed activities
        are consistent with the approved housing strategy of the State
        or unit of general local government within which the project is
        located (or, during the first 12 months after November 28,
        1990, that the application is consistent with such other
        existing State or local housing plan or strategy that the
        Secretary shall determine to be appropriate); and
          (E) a certification that the applicant will comply with the
        requirements of the Fair Housing Act [42 U.S.C. 3601 et seq.],
        title VI of the Civil Rights Act of 1964 [42 U.S.C. 2000d et
        seq.], section 504 of the Rehabilitation Act of 1973 [29 U.S.C.
        794], and the Age Discrimination Act of 1975 [42 U.S.C. 6101 et
        seq.], and will affirmatively further fair housing.
    (d) Selection criteria
      The Secretary shall, by regulation, establish selection criteria
    for a national competition for assistance under this section, which
    shall include - 
        (1) the qualifications or potential capabilities of the
      applicant;
        (2) the extent of tenant interest in the development of a
      homeownership program for the property;
        (3) the potential of the applicant for developing a successful
      and affordable homeownership program and the suitability of the
      property for homeownership;
        (4) national geographic diversity among housing for which
      applicants are selected to receive assistance; and
        (5) such other factors that the Secretary shall require that
      (in the determination of the Secretary) are appropriate for
      purposes of carrying out the program established by this part in
      an effective and efficient manner.

-SOURCE-
    (Pub. L. 101-625, title IV, Sec. 422, Nov. 28, 1990, 104 Stat.
    4162; Pub. L. 102-550, title X, Sec. 1012(i)(1), Oct. 28, 1992, 106
    Stat. 3906.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Fair Housing Act, referred to in subsec. (c)(2)(E), is title
    VIII of Pub. L. 90-284, Apr. 11, 1968, 82 Stat. 81, as amended,
    which is classified principally to subchapter I (Sec. 3601 et seq.)
    of chapter 45 of this title. For complete classification of this
    Act to the Code, see Short Title note set out under section 3601 of
    this title and Tables.
      The Civil Rights Act of 1964, referred to in subsec. (c)(2)(E),
    is Pub. L. 88-352, July 2, 1964, 78 Stat. 241, as amended. Title VI
    of the Act is classified generally to subchapter V (Sec. 2000d et
    seq.) of chapter 21 of this title. For complete classification of
    this Act to the Code, see Short Title note set out under section
    2000a of this title and Tables.
      The Age Discrimination Act of 1975, referred to in subsec.
    (c)(2)(E), is title III of Pub. L. 94-135, Nov. 28, 1975, 89 Stat.
    728, as amended, which is classified generally to chapter 76 (Sec.
    6101 et seq.) of this title. For complete classification of this
    Act to the Code, see Short Title note set out under section 6101 of
    this title and Tables.

-MISC1-
                                AMENDMENTS                            
      1992 - Subsec. (b)(4) to (9). Pub. L. 102-550 added par. (4) and
    redesignated former pars. (4) to (8) as (5) to (9), respectively.

-End-

-CITE-
    42 USC Sec. 12873                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE
                     FAMILY HOMES              
    Part A - HOPE for Homeownership of Multifamily Units

-HEAD-
    Sec. 12873. Implementation grants

-STATUTE-
    (a) Grants
      The Secretary is authorized to make implementation grants to
    applicants for the purpose of carrying out homeownership programs
    approved under this part.
    (b) Eligible activities
      Implementation grants may be used for activities to carry out
    homeownership programs (including programs for cooperative
    ownership), including the following activities:
        (1) Architectural and engineering work.
        (2) Acquisition of the eligible property for the purpose of
      transferring ownership to eligible families in accordance with a
      homeownership program that meets the requirements under this
      part.
        (3) Rehabilitation of any property covered by the homeownership
      program, in accordance with standards established by the
      Secretary.
        (4) Abatement of lead-based paint hazards, as required by
      section 4822(a) of this title.
        (5) Administrative costs of the applicant, which may not exceed
      15 percent of the amount of the assistance provided under this
      section.
        (6) Development of resident management corporations and
      resident management councils, but only if the applicant has not
      received assistance under section 12872 (!1) of this title for
      such activities.

        (7) Counseling and training of homebuyers and homeowners under
      the homeownership program.
        (8) Relocation of tenants who elect to move.
        (9) Any necessary temporary relocation of tenants during
      rehabilitation.
        (10) Planning for establishment of for- or not-for-profit small
      businesses by or on behalf of residents, job training, and other
      activities that promote economic self-sufficiency of homebuyers
      and homeowners of the property covered by the homeownership
      program and economic development of the neighborhood.
        (11) Funding of operating expenses and replacement reserves of
      the property covered by the homeownership program.
        (12) Legal fees.
        (13) Defraying costs for the ongoing training needs of the
      recipient that are related to developing and carrying out the
      homeownership program.
        (14) Economic development activities that promote economic self-
      sufficiency of homebuyers, residents, and homeowners under the
      homeownership program.
    (c) Matching funding
      (1) In general
        Each recipient shall assure that contributions equal to not
      less than 33 percent of the grant amounts made available under
      this section, excluding any amounts provided for post-sale
      operating expense, shall be provided from non-Federal sources to
      carry out the homeownership program.
      (2) Form
        Such contributions may be in the form of - 
          (A) cash contributions from non-Federal resources, which may
        not include funds from a grant made under section 5306(b) or
        section 5306(d) of this title;
          (B) payment of administrative expenses, as defined by the
        Secretary, from non-Federal resources, including funds from a
        grant made under section 5306(b) or section 5306(d) of this
        title;
          (C) the value of taxes, fees, or other charges that are
        normally and customarily imposed but are waived, foregone, or
        deferred in a manner that facilitates the implementation of a
        homeownership program assisted under this part;
          (D) the value of land or other real property as appraised
        according to procedures acceptable to the Secretary;
          (E) the value of investment in on-site and off-site
        infrastructure required for a homeownership program assisted
        under this part; or
          (F) such other in-kind contributions as the Secretary may
        approve.

      Contributions for administrative expenses shall be recognized
      only up to an amount equal to 7 percent of the total amount of
      grants made available under this section.
    (d) (!2) Application

      (1) Form and procedure
        An application for an implementation grant shall be submitted
      by an applicant in such form and in accordance with such
      procedures as the Secretary shall establish.
      (2) Minimum requirements
        The Secretary shall require that an application contain at a
      minimum - 
          (A) a request for an implementation grant, specifying the
        amount of the grant requested and its proposed uses;
          (B) if applicable, an application for assistance under
        section 1437f of this title, specifying the proposed uses of
        such assistance and the period during which the assistance will
        be needed;
          (C) a description of the qualifications and experience of the
        applicant in providing low-income housing;
          (D) a description of the proposed homeownership program,
        consistent with section 12874 (!3) of this title and the other
        requirements of this part, specifying the activities proposed
        to be carried out and their estimated costs, identifying
        reasonable schedules for carrying it out, and demonstrating the
        program will comply with the affordability requirements under
        section 12874(b) (!3) of this title;

          (E) identification and description of the property involved,
        and a description of the composition of the tenants, including
        family size and income;
          (F) a description of and commitment for the resources that
        are expected to be made available to provide the matching
        funding required under subsection (c) of this section and of
        other resources that are expected to be made available in
        support of the homeownership program;
          (G) identification and description of the financing proposed
        for any (i) rehabilitation and (ii) acquisition (I) of the
        property, by an entity for transfer to eligible families, and
        (II) by eligible families of ownership interests in, or shares
        representing, units in the project;
          (H) the proposed sales price, the basis for such price
        determination, and terms to an entity, if any, that will
        purchase the property for resale to eligible families;
          (I) the proposed sales prices, if any, and terms to eligible
        families;
          (J) any proposed restrictions on the resale of units under a
        homeownership program;
          (K) identification and description of the entity that will
        operate and manage the property;
          (L) a certification by the public official responsible for
        submitting the comprehensive housing affordability strategy
        under section 12705 of this title that the proposed activities
        are consistent with the approved housing strategy of the State
        or unit of general local government within which the project is
        located (or, during the first 12 months after November 28,
        1990, that the application is consistent with such other
        existing State or local housing plan or strategy that the
        Secretary shall determine to be appropriate); and
          (M) a certification that the applicant will comply with the
        requirements of the Fair Housing Act [42 U.S.C. 3601 et seq.],
        title VI of the Civil Rights Act of 1964 [42 U.S.C. 2000d et
        seq.], section 504 of the Rehabilitation Act of 1973 [29 U.S.C.
        794], and the Age Discrimination Act of 1975 [42 U.S.C. 6101 et
        seq.], and will affirmatively further fair housing.
    (d) (!4) Selection criteria

      The Secretary shall establish selection criteria for assistance
    under this section, which shall include - 
        (1) the qualifications or potential capabilities of the
      applicant;
        (2) the feasibility of the homeownership program;
        (3) the extent of tenant interest in the development of a
      homeownership program for the property;
        (4) the potential for developing an affordable homeownership
      program and the suitability of the property for homeownership;
        (5) national geographic diversity among housing for which
      applicants are selected to receive assistance;
        (6) the extent to which a sufficient supply of affordable
      rental housing of the type assisted under this title (!5) exists
      in the locality, so that the implementation of the homeownership
      program will not appreciably reduce the number of such rental
      units available to residents currently residing in such units or
      eligible for residency in such units; and

        (7) such other factors as the Secretary determines to be
      appropriate for purposes of carrying out the program established
      by the (!6) part in an effective and efficient manner.

    (e) Approval
      The Secretary shall notify each applicant, not later than 6
    months after the date of the submission of the application, whether
    the application is approved or not approved. The Secretary may
    approve the application for an implementation grant with a
    statement that the application for the section 8 [42 U.S.C. 1437f]
    assistance for residents of the project not purchasing units is
    conditionally approved, subject to the availability of
    appropriations in subsequent fiscal years.

-SOURCE-
    (Pub. L. 101-625, title IV, Sec. 423, Nov. 28, 1990, 104 Stat.
    4163; Pub. L. 102-550, title X, Sec. 1012(i)(2), Oct. 28, 1992, 106
    Stat. 3906.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 12872 of this title, referred to in subsec. (b)(6), was
    in the original "section 322" and was translated as reading
    "section 422", meaning section 422 of Pub. L. 101-625, to reflect
    the probable intent of Congress. Section 322 of Pub. L. 101-625
    amended section 1708 of Title 12, Banks and Banking.
      Section 12874 of this title and section 12874(b) of this title,
    referred to in subsec. (d)(2)(D), were in the original "section
    324" and "section 324(b)", respectively, and were translated as
    reading "section 424" and "section 424(b)", respectively, meaning
    section 424 of Pub. L. 101-625, to reflect the probable intent of
    Congress. Section 324 of Pub. L. 101-625, which proposed an
    amendment to section 1709 of Title 12, never took effect pursuant
    to section 351 of Pub. L. 101-625. Such section 324 did not contain
    a subsec. (b).
      The Fair Housing Act, referred to in subsec. (d)(2)(M), is title
    VIII of Pub. L. 90-284, Apr. 11, 1968, 82 Stat. 81, as amended,
    which is classified principally to subchapter I (Sec. 3601 et seq.)
    of chapter 45 of this title. For complete classification of this
    Act to the Code, see Short Title note set out under section 3601 of
    this title and Tables.
      The Civil Rights Act of 1964, referred to in subsec. (d)(2)(M),
    is Pub. L. 88-352, July 2, 1964, 78 Stat. 241, as amended. Title VI
    of the Act is classified generally to subchapter V (Sec. 2000d et
    seq.) of chapter 21 of this title. For complete classification of
    this Act to the Code, see Short Title note set out under section
    2000a of this title and Tables.
      The Age Discrimination Act of 1975, referred to in subsec.
    (d)(2)(M), is title III of Pub. L. 94-135, Nov. 28, 1975, 89 Stat.
    728, as amended, which is classified generally to chapter 76 (Sec.
    6101 et seq.) of this title. For complete classification of this
    Act to the Code, see Short Title note set out under section 6101 of
    this title and Tables.
      This title, referred to in subsec. (d)(6), means title IV of Pub.
    L. 101-625, known as the Homeownership and Opportunity Through HOPE
    Act, and probably should have been "this subtitle", meaning
    subtitle B (Secs. 421-431) of title IV of Pub. L. 101-625, which is
    classified principally to this part. For complete classification of
    title IV of Pub. L. 101-625 to the Code, see Short Title note set
    out under section 1437aaa of this title and Tables.

-MISC1-
                                AMENDMENTS                            
      1992 - Subsec. (b)(4) to (14). Pub. L. 102-550 added par. (4) and
    redesignated former pars. (4) to (13) as (5) to (14), respectively.

-FOOTNOTE-
    (!1) See References in Text note below.

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

    (!3) See References in Text note below.

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

    (!5) See References in Text note below.

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

-End-

-CITE-
    42 USC Sec. 12874                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE
                     FAMILY HOMES              
    Part A - HOPE for Homeownership of Multifamily Units

-HEAD-
    Sec. 12874. Homeownership program requirements

-STATUTE-
    (a) In general
      A homeownership program under this part shall provide for
    acquisition by eligible families of ownership interest in, or
    shares representing, the units in an eligible property under any
    arrangement determined by the Secretary to be appropriate, such as
    cooperative ownership (including limited equity cooperative
    ownership) and fee simple ownership (including condominium
    ownership), for occupancy by the eligible families.
    (b) Affordability
      A homeownership program under this part shall provide for the
    establishment of sales prices (including principal, insurance,
    taxes, and interest and closing costs) for initial acquisition of
    the property, and for sales to eligible families, such that the
    eligible family shall not be required to expend more than 30
    percent of the adjusted income of the family per month to complete
    a sale under the homeownership program.
    (c) Plan
      A homeownership program under this part shall provide, and
    include a plan, for - 
        (1) identifying and selecting eligible families to participate
      in the homeownership program;
        (2) providing relocation assistance to families who elect to
      move;
        (3) ensuring continued affordability by tenants, homebuyers,
      and homeowners in the property; and
        (4) providing ongoing training and counseling for homebuyers
      and homeowners.
    (d) Acquisition and rehabilitation limitation
      Acquisition or rehabilitation of a property under a homeownership
    program under this part may not consist of acquisition or
    rehabilitation of less than all of the units in the property. The
    provisions of this subsection may be waived upon a finding by the
    Secretary that the sale of less than all the buildings in a project
    is feasible and will not result in a hardship to any tenants of the
    project who are not included in the homeownership program.
    (e) Financing
      (1) In general
        The application shall identify and describe the proposed
      financing for (A) any rehabilitation, and (B) acquisition (i) of
      the project, where applicable, by an entity for transfer to
      eligible families, and (ii) by eligible families of ownership
      interests in, or shares representing, units in the project.
      Financing may include use of the implementation grant, sale for
      cash, or other sources of financing (subject to applicable
      requirements), including conventional mortgage loans and mortgage
      loans insured under title II of the National Housing Act [12
      U.S.C. 1707 et seq.].
      (2) Prohibition against pledges
        Property transferred under this part shall not be pledged as
      collateral for debt or otherwise encumbered except when the
      Secretary determines that - 
          (A) such encumbrance will not threaten the long-term
        availability of the property for occupancy by low-income
        families;
          (B) neither the Federal Government nor the public housing
        agency will be exposed to undue risks related to action that
        may have to be taken pursuant to paragraph (3);
          (C) any debt obligation can be serviced from project income,
        including operating assistance; and
          (D) the proceeds of such encumbrance will be used only to
        meet housing standards in accordance with subsection (f) of
        this section or to make such additional capital improvements as
        the Secretary determines to be consistent with the purposes of
        this part.
      (3) Opportunity to cure
        Any lender that provides financing in connection with a
      homeownership program under this part shall give the public
      housing agency, resident management corporation, individual
      owner, or other appropriate entity a reasonable opportunity to
      cure a financial default before foreclosing on the property, or
      taking other action as a result of the default.
    (f) Housing quality standards
      The application shall include a plan ensuring that the unit - 
        (1) will be free from any defects that pose a danger to health
      or safety before transfer of an ownership interest in, or shares
      representing, a unit to an eligible family; and
        (2) will, not later than 2 years after the transfer to an
      eligible family, meet minimum housing standards established by
      the Secretary for the purpose of this title.(!1)

    (g) Protection of nonpurchasing families
      (1) In general
        No tenant residing in a dwelling unit in a property on the date
      the Secretary approves an application for an implementation grant
      may be evicted by reason of a homeownership program approved
      under this part.
      (2) Rental assistance
        If a tenant decides not to purchase a unit, or is not qualified
      to do so, the Secretary shall, subject to the availability of
      appropriations, ensure that rental assistance under section 1437f
      of this title is available for use by each otherwise qualified
      tenant in that or another property.
      (3) Relocation assistance
        The recipient shall also inform each such tenant that if the
      tenant chooses to move, the recipient will pay relocation
      assistance in accordance with the approved homeownership program.

-SOURCE-
    (Pub. L. 101-625, title IV, Sec. 424, Nov. 28, 1990, 104 Stat.
    4166.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The National Housing Act, referred to in subsec. (e)(1), is act
    June 27, 1934, ch. 847, 48 Stat. 1246, as amended. Title II of the
    Act is classified principally to subchapter II (Sec. 1707 et seq.)
    of chapter 13 of Title 12, Banks and Banking. For complete
    classification of this Act to the Code, see section 1701 of Title
    12 and Tables.
      This title, referred to in subsec. (f)(2), is title IV of Pub. L.
    101-625, Nov. 28, 1990, 104 Stat. 4148, known as the Homeownership
    and Opportunity Through HOPE Act, which enacted this subchapter and
    subchapter II-A (Sec. 1437aaa et seq.) of chapter 8 of this title,
    amended sections 1437c, 1437f, 1437l, 1437p, 1437r, and 1437s of
    this title and section 1709 of Title 12, and enacted provisions set
    out as notes under sections 1437c, 1437aa, and 1437aaa of this
    title. For complete classification of title IV to the Code, see
    Short Title note set out under section 1437aaa of this title and
    Tables.
      Section 1437f of this title, referred to in subsec. (g)(2), was
    in the original "section 8", and was translated as reading "section
    8 of the United States Housing Act of 1937" to reflect the probable
    intent of Congress.

-FOOTNOTE-               

    (!1) See References in Text note below.

-End-

-CITE-
    42 USC Sec. 12875                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE
                     FAMILY HOMES              
    Part A - HOPE for Homeownership of Multifamily Units

-HEAD-
    Sec. 12875. Other program requirements

-STATUTE-
    (a) Preferences
      In selecting eligible families for homeownership, the recipient
    shall give a first preference to otherwise qualified current
    tenants and a second preference to otherwise qualified eligible
    families who have completed participation in an economic self-
    sufficiency program specified by the Secretary.
    (b) Cost limitations
      The Secretary may establish cost limitations on eligible
    activities under this part, subject to the provisions of this part.
    (c) Use of proceeds from sales to eligible families
      The entity that transfers ownership interests in, or shares
    representing, units to eligible families, or another entity
    specified in the approved application, shall use the proceeds, if
    any, from the initial sale for costs of the homeownership program,
    including operating expenses, improvements to the project, business
    opportunities for low-income families, supportive services related
    to the homeownership program, additional homeownership
    opportunities, and other activities approved by the Secretary.
    (d) Restrictions on resale by homeowners
      (1) In general
        (A) Transfer permitted
          A homeowner under a homeownership program may transfer the
        homeowner's ownership interest in, or shares representing, the
        unit, except that a homeownership program may establish
        restrictions on the resale of units under the program.
        (B) Right to purchase
          Where a resident management corporation, resident council, or
        cooperative has jurisdiction over the unit, the corporation,
        council, or cooperative shall have the right to purchase the
        ownership interest in, or shares representing, the unit from
        the homeowner for the amount specified in a firm contract
        between the homeowner and a prospective buyer. If such an
        entity does not have jurisdiction over the unit or elects not
        to purchase and if the prospective buyer is not a low-income
        family, the public housing agency or the implementation grant
        recipient shall have the right to purchase the ownership
        interest in, or shares representing, the unit for the same
        amount.
        (C) Promissory note required
          The homeowner shall execute a promissory note equal to the
        difference between the market value and the purchase price,
        payable to the public housing agency or other entity designated
        in the homeownership plan, together with a mortgage securing
        the obligation of the note.
      (2) 6 years or less
        In the case of a transfer within 6 years of the acquisition
      under the program, the homeownership program shall provide for
      appropriate restrictions to assure that an eligible family may
      not receive any undue profit. The plan shall provide for limiting
      the family's consideration for its interest in the property to
      the total of - 
          (A) the contribution to equity paid by the family;
          (B) the value, as determined by such means as the Secretary
        shall determine through regulation, of any improvements
        installed at the expense of the family during the family's
        tenure as owner; and
          (C) the appreciated value determined by an inflation
        allowance at a rate which may be based on a cost-of-living
        index, an income index, or market index as determined by the
        Secretary through regulation and agreed to by the purchaser and
        the entity that transfers ownership interests in, or shares
        representing, units to eligible families (or another entity
        specified in the approved application), at the time of initial
        sale, and applied against the contribution to equity.

      Such an entity may, at the time of initial sale, enter into an
      agreement with the family to set a maximum amount which this
      appreciation may not exceed.
      (3) 6-20 years
        In the case of a transfer during the period beginning 6 years
      after the acquisition and ending 20 years after the acquisition,
      the homeownership program shall provide for the recapture by the
      Secretary or the program of an amount equal to the amount of the
      declining balance on the note described in paragraph (1)(C).
      (4) Use of recaptured funds
        Fifty percent of any portion of the net sales proceeds that may
      not be retained by the homeowner under the plan approved pursuant
      to this subsection shall be paid to the entity that transferred
      ownership interests in, or shares representing, units to eligible
      families, or another entity specified in the approved
      application, for use for improvements to the project, business
      opportunities for low-income families, supportive services
      related to the homeownership program, additional homeownership
      opportunities, and other activities approved by the Secretary.
      The remaining 50 percent shall be returned to the Secretary for
      use under this part, subject to limitations contained in
      appropriations Acts. Such entity shall keep and make available to
      the Secretary all records necessary to calculate accurately
      payments due the Secretary under this subsection.
    (e) Third party rights
      The requirements under this part regarding quality standards,
    resale, or transfer of the ownership interest of a homeowner shall
    be judicially enforceable against the grant recipient with respect
    to actions involving rehabilitation, and against purchasers of
    property under this subsection or their successors in interest with
    respect to other actions by affected low-income families, resident
    management corporations, resident councils, public housing
    agencies, and any agency, corporation, or authority of the United
    States Government. The parties specified in the preceding sentence
    shall be entitled to reasonable attorney fees upon prevailing in
    any such judicial action.
    (f) Dollar limitation on economic development activities
      Not more than an aggregate of $250,000 from amounts made
    available under sections 12872 and 12873 of this title may be used
    for economic development activities under sections 12872(b)(6) and
    12873(b)(9) (!1) of this title for any project.

    (g) Timely homeownership
      Recipients shall transfer ownership of the property to tenants
    within a specified period of time that the Secretary determines to
    be reasonable. During the interim period when the property
    continues to be operated and managed as rental housing, the
    recipient shall utilize written tenant selection policies and
    criteria that are approved by the Secretary as consistent with the
    purpose of improving housing opportunities for low-income families.
    The recipient shall promptly notify in writing any rejected
    applicant of the grounds for any rejection.
    (h) Records and audit of recipients of assistance
      (1) In general
        Each recipient shall keep such records as may be reasonably
      necessary to fully disclose the amount and the disposition by
      such recipient of the proceeds of assistance received under this
      part (and any proceeds from financing obtained or sales under
      subsections (c) and (d) of this section), the total cost of the
      homeownership program in connection with which such assistance is
      given or used, and the amount and nature of that portion of the
      program supplied by other sources, and such other sources as will
      facilitate an effective audit.
      (2) Access by Secretary
        The Secretary shall have access for the purpose of audit and
      examination to any books, documents, papers, and records of the
      recipient that are pertinent to assistance received under this
      part.
      (3) Access by Comptroller General
        The Comptroller General of the United States, or any of the
      duly authorized representatives of the Comptroller General, shall
      also have access for the purpose of audit and examination to any
      books, documents, papers, and records of the recipient that are
      pertinent to assistance received under this part.
    (i) Certain entities not eligible
      Any entity that assumes, as determined by the Secretary, a
    mortgage covering eligible property in connection with the
    acquisition of the property from an owner under this section must
    comply with any low-income affordability restrictions for the
    remaining term of the mortgage. This requirement shall only apply
    to an entity, such as a cooperative association, that, as
    determined by the Secretary, intends to own the housing on a
    permanent basis.

-SOURCE-
    (Pub. L. 101-625, title IV, Sec. 425, Nov. 28, 1990, 104 Stat.
    4168.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Sections 12872(b)(6) and 12873(b)(9) of this title, referred to
    in subsec. (f), were redesignated sections 12872(b)(7) and
    12873(b)(10) of this title, respectively, by Pub. L. 102-550, title
    X, Sec. 1012(i), Oct. 28, 1992, 106 Stat. 3906.

-FOOTNOTE-
    (!1) See References in Text note below.

-End-

-CITE-
    42 USC Sec. 12876                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE
                     FAMILY HOMES              
    Part A - HOPE for Homeownership of Multifamily Units

-HEAD-
    Sec. 12876. Definitions

-STATUTE-
      For purposes of this part:
        (1) The term "applicant" means the following entities that may
      represent the tenants of the housing:
          (A) A resident management corporation established in
        accordance with the requirements of the Secretary under section
        1437r of this title.
          (B) A resident council.
          (C) A cooperative association.
          (D) A public or private nonprofit organization.
          (E) A public body (including an agency or instrumentality
        thereof).
          (F) A public housing agency (including an Indian housing
        authority).
          (G) A mutual housing association.

        (2) The term "eligible family" means a family or individual - 
          (A) who is a tenant of the eligible property on the date the
        Secretary approves an implementation grant; or
          (B) whose income does not exceed 80 percent of the median
        income for the area, as determined by the Secretary with
        adjustments for smaller and larger families.

        (3) The term "eligible property" means a multifamily rental
      property, containing 5 or more units, that is - 
          (A) owned or held by the Secretary;
          (B) financed by a loan or mortgage held by the Secretary or
        insured by the Secretary;
          (C) determined by the Secretary to have serious physical or
        financial problems under the terms of an insurance or loan
        program administered by the Secretary; or
          (D) owned or held by the Secretary of Agriculture, the
        Resolution Trust Corporation, the Federal Deposit Insurance
        Corporation, the Secretary of Defense, the Secretary of
        Transportation, the General Services Administration, any other
        Federal agency, or a State or local government or an agency or
        instrumentality thereof.

        (4) The term "homeownership program" means a program for
      homeownership under this part.
        (5) The term "Indian housing authority" has the meaning given
      such term in section 1437a(b)(11) (!1) of this title.

        (6) The term "low-income family" has the meaning given such
      term in section 1437a(b)(2) of this title.
        (7) The term "public housing agency" has the meaning given such
      term in section 1437a(b)(6) of this title.
        (8) The term "recipient" means an applicant approved to receive
      a grant under this title (!1) or such other entity specified in
      the approved application that will assume the obligations of the
      recipient under this part.
        (9) The term "resident council" means any incorporated
      nonprofit organization or association that - 
          (A) is representative of the tenants of the housing;
          (B) adopts written procedures providing for the election of
        officers on a regular basis; and
          (C) has a democratically elected governing board, elected by
        the tenants of the housing.

        (10) The term "Secretary" means the Secretary of Housing and
      Urban Development.

-SOURCE-
    (Pub. L. 101-625, title IV, Sec. 426, Nov. 28, 1990, 104 Stat.
    4170; Pub. L. 102-550, title I, Sec. 181(d), (e), (h), Oct. 28,
    1992, 106 Stat. 3735, 3736.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 1437a(b)(11) of this title, referred to in par. (5), was
    repealed by Pub. L. 104-330, title V, Sec. 501(b)(1)(D), Oct. 26,
    1996, 110 Stat. 4041, and a new section 1437a(b)(11), defining
    "public housing agency plan", was enacted by Pub. L. 105-276, title
    V, Sec. 506(4), Oct. 21, 1998, 112 Stat. 2524.
      This title, referred to in par. (8), means title IV of Pub. L.
    101-625, known as the Homeownership and Opportunity Through HOPE
    Act, and probably should have been "this subtitle", meaning
    subtitle B (Secs. 421-431) of title IV of Pub. L. 101-625, which is
    classified principally to this part. For complete classification of
    title IV of Pub. L. 101-625 to the Code, see Short Title note set
    out under section 1437aaa of this title and Tables.

-MISC1-
                                AMENDMENTS                            
      1992 - Par. (1)(G). Pub. L. 102-550, Sec. 181(d), added subpar.
    (G).
      Par. (3)(D). Pub. L. 102-550, Sec. 181(e), (h), inserted "the
    Federal Deposit Insurance Corporation, the Secretary of Defense,
    the Secretary of Transportation, the General Services
    Administration, any other Federal agency," after "Corporation," and
    "or an agency or instrumentality thereof" before period at end.

-FOOTNOTE-
    (!1) See References in Text note below.

-End-

-CITE-
    42 USC Sec. 12877                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE
                     FAMILY HOMES              
    Part A - HOPE for Homeownership of Multifamily Units

-HEAD-
    Sec. 12877. Exemption

-STATUTE-
      Eligible property covered by a homeownership program approved
    under this part shall not be subject to - 
        (1) the Low-Income Housing Preservation and Resident
      Homeownership Act of 1990 [12 U.S.C. 4101 et seq.], or
        (2) the requirements of section 1701z-11 of title 12 applicable
      to the sale of projects either at foreclosure or after
      acquisition by the Secretary.

-SOURCE-
    (Pub. L. 101-625, title IV, Sec. 427, Nov. 28, 1990, 104 Stat.
    4171.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Low-Income Housing Preservation and Resident Homeownership
    Act of 1990, referred to in par. (1), is title II of Pub. L. 100-
    242, as amended by Pub. L. 101-625, title VI, Sec. 601(a), Nov.
    28, 1990, 104 Stat. 4249, which is classified principally to
    chapter 42 (Sec. 4101 et seq.) of Title 12, Banks and Banking. For
    complete classification of this Act to the Code, see Short Title
    note set out under section 4101 of Title 12 and Tables.

-End-

-CITE-
    42 USC Sec. 12878                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE
                     FAMILY HOMES              
    Part A - HOPE for Homeownership of Multifamily Units

-HEAD-
    Sec. 12878. Limitation on selection criteria

-STATUTE-
      In establishing criteria for selecting applicants to receive
    assistance under this part, the Secretary may not establish any
    selection criterion or criteria that grant or deny such assistance
    to an applicant (or have the effect of granting or denying
    assistance) based on the implementation, continuation, or
    discontinuation of any public policy, regulation, or law of any
    jurisdiction in which the applicant or project is located.

-SOURCE-
    (Pub. L. 101-625, title IV, Sec. 428, Nov. 28, 1990, 104 Stat.
    4171.)

-End-

-CITE-
    42 USC Sec. 12879                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE
                     FAMILY HOMES              
    Part A - HOPE for Homeownership of Multifamily Units

-HEAD-
    Sec. 12879. Implementation

-STATUTE-
      Not later than the expiration of the 180-day period beginning on
    the date that funds authorized under this part first become
    available for obligation, the Secretary shall by notice establish
    such requirements as may be necessary to carry out the provisions
    of this part. Such requirements shall be subject to section 553 of
    title 5. The Secretary shall issue regulations based on the initial
    notice before the expiration of the 8-month period beginning on the
    date of the notice.

-SOURCE-
    (Pub. L. 101-625, title IV, Sec. 430, Nov. 28, 1990, 104 Stat.
    4172.)

-End-

-CITE-
    42 USC Sec. 12880                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE
                     FAMILY HOMES              
    Part A - HOPE for Homeownership of Multifamily Units

-HEAD-
    Sec. 12880. Report

-STATUTE-
      The Secretary shall no later than December 31, 1995, submit to
    the Congress a report setting forth - 
        (1) the number, type and cost of eligible properties
      transferred pursuant to this part;
        (2) the income, race, gender, children and other
      characteristics of families participating (or not participating)
      in homeownership programs funded under this part;
        (3) the amount and type of financial assistance provided under
      and in conjunction with this part;
        (4) the amount of financial assistance provided under this part
      that was needed to ensure continued affordability and meet future
      maintenance and repair costs; and
        (5) the recommendations of the Secretary for statutory and
      regulatory improvements to the program.

-SOURCE-
    (Pub. L. 101-625, title IV, Sec. 431, Nov. 28, 1990, 104 Stat.
    4172; Pub. L. 104-66, title I, Sec. 1072(a), Dec. 21, 1995, 109
    Stat. 721.)

-MISC1-
                                AMENDMENTS                            
      1995 - Pub. L. 104-66 in section catchline substituted "Report"
    for "Annual report", and in introductory provisions substituted
    "The Secretary shall no later than December 31, 1995," for "The
    Secretary shall annually".

-End-

-CITE-
    42 USC Part B - HOPE for Homeownership of Single Family
                     Homes                                 01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE
                     FAMILY HOMES              
    Part B - HOPE for Homeownership of Single Family Homes

-HEAD-
          PART B - HOPE FOR HOMEOWNERSHIP OF SINGLE FAMILY HOMES      

-End-

-CITE-
    42 USC Sec. 12891                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE
                     FAMILY HOMES              
    Part B - HOPE for Homeownership of Single Family Homes

-HEAD-
    Sec. 12891. Program authority

-STATUTE-
      The Secretary is authorized to make - 
        (1) planning grants to help applicants develop homeownership
      programs in accordance with this part; and
        (2) implementation grants to enable applicants to carry out
      homeownership programs in accordance with this part.

-SOURCE-
    (Pub. L. 101-625, title IV, Sec. 441, Nov. 28, 1990, 104 Stat.
    4172; Pub. L. 102-550, title I, Sec. 181(a)(2)(B)(ii), Oct. 28,
    1992, 106 Stat. 3735.)

-MISC1-
                                AMENDMENTS                            
      1992 - Pub. L. 102-550 struck out "(a) In General" before "The
    Secretary is authorized" and subsec. (b) which read as follows:
    "Authorization of Appropriations. - There are authorized to be
    appropriated for grants under this part $36,000,000 for fiscal year
    1991, and $195,000,000 for fiscal year 1992. Any amounts
    appropriated pursuant to this subsection shall remain available
    until expended."

-End-

-CITE-
    42 USC Sec. 12892                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE
                     FAMILY HOMES              
    Part B - HOPE for Homeownership of Single Family Homes

-HEAD-
    Sec. 12892. Planning grants

-STATUTE-
    (a) Grants
      The Secretary is authorized to make planning grants to applicants
    for the purpose of developing homeownership programs under this
    part. The amount of a planning grant under this section may not
    exceed $200,000, except that the Secretary may for good cause
    approve a grant in a higher amount.
    (b) Eligible activities
      Planning grants may be used for activities to develop
    homeownership programs (which may include programs for cooperative
    ownership), including - 
        (1) identifying eligible properties;
        (2) training and technical assistance of applicants related to
      the development of a specific homeownership program;
        (3) studies of the feasibility of specific homeownership
      programs;
        (4) inspection for lead-based paint hazards, as required by
      section 4822(a) of this title;
        (5) preliminary architectural and engineering work;
        (6) homebuyer counseling and training;
        (7) planning for economic development, job training, and self-
      sufficiency activities that promote economic self-sufficiency
      for homebuyers and homeowners under the homeownership program;
        (8) development of security plans; and
        (9) preparation of an application for an implementation grant
      under this part.
    (c) Application
      (1) Form and procedures
        An application for a planning grant shall be submitted by an
      applicant in such form and in accordance with such procedures as
      the Secretary shall establish.
      (2) Minimum requirements
        The Secretary shall require that an application contain at a
      minimum - 
          (A) a request for a planning grant, specifying the activities
        proposed to be carried out, the schedule for completing the
        activities, the personnel necessary to complete the activities,
        and the amount of the grant requested;
          (B) a description of the applicant and a statement of its
        qualifications;
          (C) identification and description of the eligible properties
        likely to be involved, and a description of the composition of
        the potential homebuyers and residents of the areas in which
        such eligible properties are located, including family size and
        income;
          (D) a certification by the public official responsible for
        submitting the comprehensive housing affordability strategy
        under section 12705 of this title that the proposed activities
        are consistent with the approved housing strategy of the State
        or unit of general local government within which the project is
        located (or, during the first 12 months after November 28,
        1990, that the application is consistent with such other
        existing State or local housing plan or strategy that the
        Secretary shall determine to be appropriate); and
          (E) a certification that the applicant will comply with the
        requirements of the Fair Housing Act [42 U.S.C. 3601 et seq.],
        title VI of the Civil Rights Act of 1964 [42 U.S.C. 2000d et
        seq.], section 504 of the Rehabilitation Act of 1973 [29 U.S.C.
        794], and the Age Discrimination Act of 1975 [42 U.S.C. 6101 et
        seq.], and will affirmatively further fair housing.
    (d) Selection criteria
      The Secretary shall, by regulation, establish selection criteria
    for a national competition for assistance under this section, which
    shall include - 
        (1) the qualifications or potential capabilities of the
      applicant;
        (2) the extent of interest in the development of a
      homeownership program;
        (3) the potential of the applicant for developing a successful
      and affordable homeownership program and the availability and
      suitability of eligible properties in the applicable geographic
      area with respect to the application;
        (4) national geographic diversity among housing for which
      applicants are selected to receive assistance; and
        (5) such other factors that the Secretary shall require that
      (in the determination of the Secretary) are appropriate for
      purposes of carrying out the program established by this part in
      an effective and efficient manner.

-SOURCE-
    (Pub. L. 101-625, title IV, Sec. 442, Nov. 28, 1990, 104 Stat.
    4172; Pub. L. 102-550, title X, Sec. 1012(j)(1), Oct. 28, 1992, 106
    Stat. 3906.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Fair Housing Act, referred to in subsec. (c)(2)(E), is title
    VIII of Pub. L. 90-284, Apr. 11, 1968, 82 Stat. 81, as amended,
    which is classified principally to subchapter I (Sec. 3601 et seq.)
    of chapter 45 of this title. For complete classification of this
    Act to the Code, see Short Title note set out under section 3601 of
    this title and Tables.
      The Civil Rights Act of 1964, referred to in subsec. (c)(2)(E),
    is Pub. L. 88-352, July 2, 1964, 78 Stat. 241, as amended. Title VI
    of the Act is classified generally to subchapter V (Sec. 2000d et
    seq.) of chapter 21 of this title. For complete classification of
    this Act to the Code, see Short Title note set out under section
    2000a of this title and Tables.
      The Age Discrimination Act of 1975, referred to in subsec.
    (c)(2)(E), is title III of Pub. L. 94-135, Nov. 28, 1975, 89 Stat.
    728, as amended, which is classified generally to chapter 76 (Sec.
    6101 et seq.) of this title. For complete classification of this
    Act to the Code, see Short Title note set out under section 6101 of
    this title and Tables.

-MISC1-
                                AMENDMENTS                            
      1992 - Subsec. (b)(4) to (9). Pub. L. 102-550 added par. (4) and
    redesignated former pars. (4) to (8) as (5) to (9), respectively.

-End-

-CITE-
    42 USC Sec. 12893                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE
                     FAMILY HOMES              
    Part B - HOPE for Homeownership of Single Family Homes

-HEAD-
    Sec. 12893. Implementation grants

-STATUTE-
    (a) Grants
      The Secretary is authorized to make implementation grants to
    applicants for the purpose of carrying out homeownership programs
    approved under this part.
    (b) Eligible activities
      Implementation grants may be used for activities to carry out
    homeownership programs (which may include programs for cooperative
    ownership), including the following activities:
        (1) Architectural and engineering work.
        (2) Acquisition of the property for the purpose of transferring
      ownership to eligible families in accordance with a homeownership
      program meeting the requirements of this part.
        (3) Rehabilitation of the property covered by the homeownership
      program, in accordance with standards established by the
      Secretary.
        (4) Abatement of lead-based paint hazards, as required by
      section 4822(a) of this title.
        (5) Administrative costs of the applicant, which may not exceed
      15 percent of the amount of assistance provided under this
      section.
        (6) Counseling and training of homebuyers and homeowners under
      the homeownership program.
        (7) Relocation of eligible families who elect to move.
        (8) Any necessary temporary relocation of homebuyers during
      rehabilitation.
        (9) Legal fees.
        (10) Defraying costs for the ongoing training needs of the
      recipient that are related to developing and carrying out the
      homeownership program.
        (11) Economic development activities that promote economic self-
      sufficiency of homebuyers and homeowners under the homeownership
      program.
    (c) Matching funding
      (1) In general
        Each recipient shall assure that contributions equal to not
      less than 25 percent of the grant amounts under this section are
      provided from non-Federal sources to carry out the homeownership
      program.
      (2) Form
        Such contributions may be in the form of - 
          (A) cash contributions from non-Federal resources which may
        not include funds from a grant made under section 5306(b) or
        section 5306(d) of this title;
          (B) payment of administrative expenses, as defined by the
        Secretary, from non-Federal resources, including funds from a
        grant made under section 5306(b) or section 5306(d) of this
        title;
          (C) the value of taxes, fees, or other charges that are
        normally and customarily imposed but are waived, foregone, or
        deferred in a manner that facilitates the implementation of a
        homeownership program assisted under this part;
          (D) the value of investment in on-site and off-site
        infrastructure required for a homeownership program assisted
        under this part; or
          (E) such other in-kind contributions as the Secretary may
        approve.

      Contributions for administrative expenses shall be recognized
      only up to an amount equal to 7 percent of the total amount of
      grants made available under this section.
    (d) Application
      (1) Form and procedure
        An application for an implementation grant shall be submitted
      by an applicant in such form and in accordance with such
      procedures as the Secretary shall establish.
      (2) Minimum requirements
        The Secretary shall require that an application contain at a
      minimum - 
          (A) a request for an implementation grant, specifying the
        amount of the grant requested and its proposed uses;
          (B) a description of the qualifications and experience of the
        applicant in providing low-income housing;
          (C) a description of the proposed homeownership program,
        consistent with section 12894 of this title and the other
        requirements of this part specifying the activities proposed to
        be carried out and their estimated costs, identifying
        reasonable schedules for carrying it out, and demonstrating
        that the program will comply with the affordability
        requirements under section 12894(b) of this title;
          (D) an identification and description of the properties to be
        acquired under the homeownership program and a description of
        the composition of potential eligible families, including
        family size and income;
          (E) a description of and commitment for the resources that
        are expected to be made available to provide the matching
        funding required under subsection (c) of this section and of
        other resources that are expected to be made available in
        support of the homeownership program;
          (F) identification and description of the financing proposed
        for any (i) rehabilitation and (ii) acquisition (I) of the
        project, where applicable, by an entity for transfer to
        eligible families, and (II) by eligible families of ownership
        interests in, or shares representing, units in the project;
          (G) the proposed sales prices for the properties, the basis
        for such price determinations, and terms to an entity, if any,
        that will purchase that property for resale to eligible
        families;
          (H) the proposed sales prices, if any, and terms to eligible
        families;
          (I) identification and description of the entity that will
        operate and manage the property;
          (J) a certification by the public official responsible for
        submitting the comprehensive housing affordability strategy
        under section 12705 of this title that the proposed activities
        are consistent with the approved housing strategy of the State
        or unit of general local government within which the project is
        located (or, during the first 12 months after November 28,
        1990, that the application is consistent with such other
        existing State or local housing plan or strategy that the
        Secretary shall determine to be appropriate); and
          (K) a certification that the applicant will comply with the
        requirements of the Fair Housing Act [42 U.S.C. 3601 et seq.],
        title VI of the Civil Rights Act of 1964 [42 U.S.C. 2000d et
        seq.], section 504 of the Rehabilitation Act of 1973 [29 U.S.C.
        794], and the Age Discrimination Act of 1975 [42 U.S.C. 6101 et
        seq.], and will affirmatively further fair housing.
    (e) Selection criteria
      The Secretary shall establish selection criteria for assistance
    under this part, which shall include - 
        (1) the ability of the applicant to develop and carry out the
      proposed homeownership program, taking into account the
      qualifications and experience of the applicant and the quality of
      any related ongoing program of the applicant;
        (2) the feasibility of the homeownership program;
        (3) the quality and viability of the proposed homeownership
      program;
        (4) the extent to which suitable eligible property is available
      for use under the program in the area to be served, and the
      extent to which the types of property expected to be covered by
      the proposed homeownership program are federally owned;
        (5) whether the approved comprehensive housing affordability
      strategy for the jurisdiction within which the eligible property
      is located includes the proposed homeownership program as one of
      the general priorities identified pursuant to section 12705(b)(7)
      of this title;
        (6) national geographic diversity among housing for which
      applicants are selected to receive assistance; and
        (7) the extent to which a sufficient supply of affordable
      rental housing of the type assisted under this part exists in the
      locality, so that the implementation of the homeownership program
      will not appreciably reduce the number of such rental units
      available to residents currently residing in such units or
      eligible for residency in such units.
    (f) Approval
      The Secretary shall notify each applicant, not later than 6
    months after the date of the submission of the application, whether
    the application is approved or not approved.

-SOURCE-
    (Pub. L. 101-625, title IV, Sec. 443, Nov. 28, 1990, 104 Stat.
    4174; Pub. L. 102-550, title X, Sec. 1012(j)(2), Oct. 28, 1992, 106
    Stat. 3906; Pub. L. 103-233, title II, Sec. 221, Apr. 11, 1994, 108
    Stat. 366.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Fair Housing Act, referred to in subsec. (d)(2)(K), is title
    VIII of Pub. L. 90-284, Apr. 11, 1968, 82 Stat. 81, as amended,
    which is classified principally to subchapter I (Sec. 3601 et seq.)
    of chapter 45 of this title. For complete classification of this
    Act to the Code, see Short Title note set out under section 3601 of
    this title and Tables.
      The Civil Rights Act of 1964, referred to in subsec. (d)(2)(K),
    is Pub. L. 88-352, July 2, 1964, 78 Stat. 241, as amended. Title VI
    of the Act is classified generally to subchapter V (Sec. 2000d et
    seq.) of chapter 21 of this title. For complete classification of
    this Act to the Code, see Short Title note set out under section
    2000a of this title and Tables.
      The Age Discrimination Act of 1975, referred to in subsec.
    (d)(2)(K), is title III of Pub. L. 94-135, Nov. 28, 1975, 89 Stat.
    728, as amended, which is classified generally to chapter 76 (Sec.
    6101 et seq.) of this title. For complete classification of this
    Act to the Code, see Short Title note set out under section 6101 of
    this title and Tables.

-MISC1-
                                AMENDMENTS                            
      1994 - Subsec. (c)(1). Pub. L. 103-233 substituted "25 percent"
    for "33 percent".
      1992 - Subsec. (b)(4) to (11). Pub. L. 102-550 added par. (4) and
    redesignated former pars. (4) to (10) as (5) to (11), respectively.

                     EFFECTIVE DATE OF 1994 AMENDMENT                 
      Amendment by Pub. L. 103-233 applicable with respect to any
    amounts made available to carry out subchapter II (Sec. 12721 et
    seq.) of this chapter after Apr. 11, 1994, and any amounts made
    available to carry out that subchapter before that date that remain
    uncommitted on that date, with Secretary to issue any regulations
    necessary to carry out such amendment not later than end of 45-day
    period beginning on that date, see section 209 of Pub. L. 103-233,
    set out as a note under section 5301 of this title.

-End-

-CITE-
    42 USC Sec. 12894                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE
                     FAMILY HOMES              
    Part B - HOPE for Homeownership of Single Family Homes

-HEAD-
    Sec. 12894. Homeownership program requirements

-STATUTE-
    (a) In general
      A homeownership program under this part shall provide for
    acquisition by eligible families of ownership interests in, or
    shares representing, units in an eligible property under any
    arrangement determined by the Secretary to be appropriate, such as
    cooperative ownership (including limited equity cooperative
    ownership) and fee simple ownership (including condominium
    ownership), for occupancy by the eligible families.
    (b) Affordability
      A homeownership program under this part shall provide for the
    establishment of sales prices (including principal, insurance,
    taxes, and interest and closing costs) for initial acquisition of
    the property, and for sales to eligible families, such that the
    eligible family shall not be required to expend more than 30
    percent of the adjusted income of the family per month to complete
    a sale under the homeownership program.
    (c) Eligible property
      A property may not participate in a homeownership program under
    this part unless all tenants or occupants of the property (at the
    time of (!1) the application for the implementation grant covering
    the property is filed with the Secretary) participate in the
    homeownership program.

    (d) Plan
      A homeownership program under this part shall provide, and
    include a plan, for - 
        (1) identifying and selecting eligible families to participate
      in the homeownership program;
        (2) providing relocation assistance to families who elect to
      move; and
        (3) ensuring continued affordability of the property to
      homebuyers and homeowners.
    (e) Housing quality standards
      The application shall include a plan ensuring that the unit - 
        (1) will be free from any defects that pose a danger to health
      or safety before transfer of an ownership interest in, or shares
      representing, a unit to an eligible family; and
        (2) will, not later than 2 years after the transfer to an
      eligible family, meet minimum housing standards established by
      the Secretary for the purpose of this title.(!2)

    (f) Preference for acquisition of vacant units
      Each homeownership program under this part shall provide that, in
    making vacant units in eligible properties available for
    acquisition by eligible families, preference shall be given to
    eligible families who reside in public or Indian housing.

-SOURCE-
    (Pub. L. 101-625, title IV, Sec. 444, Nov. 28, 1990, 104 Stat.
    4176; Pub. L. 102-550, title I, Sec. 181(f), Oct. 28, 1992, 106
    Stat. 3736.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This title, referred to in subsec. (e)(2), is title IV of Pub. L.
    101-625, Nov. 28, 1990, 104 Stat. 4148, known as the Homeownership
    and Opportunity Through HOPE Act, which enacted this subchapter and
    subchapter II-A (Sec. 1437aaa et seq.) of chapter 8 of this title,
    amended sections 1437c, 1437f, 1437l, 1437p, 1437r, and 1437s of
    this title and section 1709 of Title 12, Banks and Banking, and
    enacted provisions set out as notes under sections 1437c, 1437aa,
    and 1437aaa of this title. For complete classification of title IV
    to the Code, see Short Title note set out under section 1437aaa of
    this title and Tables.

-MISC1-
                                AMENDMENTS                            
      1992 - Subsec. (f). Pub. L. 102-550 added subsec. (f).

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

               

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

-End-

-CITE-
    42 USC Sec. 12895                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE
                     FAMILY HOMES              
    Part B - HOPE for Homeownership of Single Family Homes

-HEAD-
    Sec. 12895. Other program requirements

-STATUTE-
    (a) Cost limitations
      The Secretary may establish cost limitations on eligible
    activities under this part, subject to the provisions of this part.
    (b) Use of proceeds from sales to eligible families
      Any entity that transfers ownership interests in, or shares
    representing, units to eligible families, or another entity
    specified in the approved application, may use the proceeds, if
    any, from the initial sale for costs of the homeownership program,
    including operating expenses, improvements to the project, business
    opportunities for low-income families, supportive services related
    to the homeownership program, additional homeownership
    opportunities, and other activities approved by the Secretary.
    (c) Restrictions on resale by homeowners
      (1) In general
        (A) Transfer permitted
          A homeowner under a homeownership program may transfer the
        homeowner's ownership interest in, or shares representing, the
        unit, except that a homeownership program may establish
        restrictions on the resale of units under the program.
        (B) Right to purchase
          Where a resident management corporation, resident council, or
        cooperative has jurisdiction over the unit, the corporation,
        council, or cooperative shall have the right to purchase the
        ownership interest in, or shares representing, the unit from
        the homeowner for the amount specified in a firm contract
        between the homeowner and a prospective buyer. If such an
        entity does not have jurisdiction over the unit or elects not
        to purchase and if the prospective buyer is not a low-income
        family, the public housing agency or the implementation grant
        recipient shall have the right to purchase the ownership
        interest in, or shares representing, the unit for the same
        amount.
        (C) Promissory note required
          The homeowner shall execute a promissory note equal to the
        difference between the market value and the purchase price,
        payable to the public housing agency or other entity designated
        in the homeownership plan, together with a mortgage securing
        the obligation of the note.
      (2) 6 years or less
        In the case of a transfer within 6 years of the acquisition
      under the program, the homeownership program shall provide for
      appropriate restrictions to assure that an eligible family may
      not receive any undue profit. The plan shall provide for limiting
      the family's consideration for its interest in the property to
      the total of - 
          (A) the contribution to equity paid by the family;
          (B) the value, as determined by such means as the Secretary
        shall determine through regulation, of any improvements
        installed at the expense of the family during the family's
        tenure as owner; and
          (C) the appreciated value determined by an inflation
        allowance at a rate which may be based on a cost-of-living
        index, an income index, or market index as determined by the
        Secretary through regulation and agreed to by the purchaser and
        the entity that transfers ownership interests in, or shares
        representing, units to eligible families (or another entity
        specified in the approved application), at the time of initial
        sale, and applied against the contribution to equity.

      Such an entity may, at the time of initial sale, enter into an
      agreement with the family to set a maximum amount which this
      appreciation may not exceed.
      (3) 6-20 years
        In the case of a transfer during the period beginning 6 years
      after the acquisition and ending 20 years after the acquisition,
      the homeownership program shall provide for the recapture by the
      Secretary or the program of an amount equal to the amount of the
      declining balance on the note described in paragraph (1)(C).
      (4) Use of recaptured funds
        Fifty percent of any portion of the net sales proceeds that may
      not be retained by the homeowner under the plan approved pursuant
      to this subsection shall be paid to the entity that transferred
      ownership interests in, or shares representing, units to eligible
      families, or another entity specified in the approved
      application, for use for improvements to the project, business
      opportunities for low-income families, supportive services
      related to the homeownership program, additional homeownership
      opportunities, and other activities approved by the Secretary.
      The remaining 50 percent shall be returned to the Secretary for
      use under this part, subject to limitations contained in
      appropriations Acts. Such entity shall keep and make available to
      the Secretary all records necessary to calculate accurately
      payments due the Secretary under this subsection.
    (d) Third party rights
      The requirements under this part regarding quality standards,
    resale, or transfer of the ownership interest of a homeowner shall
    be judicially enforceable against the grant recipient with respect
    to actions involving rehabilitation, and against purchasers of
    property under this subsection or their successors in interest with
    respect to other actions by affected low-income families, resident
    management corporations, resident councils, public housing
    agencies, and any agency, corporation, or authority of the United
    States Government. The parties specified in the preceding sentence
    shall be entitled to reasonable attorney fees upon prevailing in
    any such judicial action.
    (e) Protection of nonpurchasing families
      No tenant residing in a dwelling unit in a property on the date
    the Secretary approves an application for an implementation grant
    may be evicted by reason of a homeownership program approved under
    this part.
    (h) (!1) Records and audit of recipients of assistance

      (1) In general
        Each recipient shall keep such records as may be reasonably
      necessary to fully disclose the amount and the disposition by
      such recipient of the proceeds of assistance received under this
      part (and any proceeds from financing obtained or sales under
      subsections (b) and (c) of this section), the total cost of the
      homeownership program in connection with which such assistance is
      given or used, and the amount and nature of that portion of the
      program supplied by other sources, and such other sources as will
      facilitate an effective audit.
      (2) Access by Secretary
        The Secretary shall have access for the purpose of audit and
      examination to any books, documents, papers, and records of the
      recipient that are pertinent to assistance received under this
      part.
      (3) Access by Comptroller General
        The Comptroller General of the United States, or any of the
      duly authorized representatives of the Comptroller General, shall
      also have access for the purpose of audit and examination to any
      books, documents, papers, and records of the recipient that are
      pertinent to assistance received under this part.

-SOURCE-
    (Pub. L. 101-625, title IV, Sec. 445, Nov. 28, 1990, 104 Stat.
    4177.)

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

-End-

-CITE-
    42 USC Sec. 12896                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE
                     FAMILY HOMES              
    Part B - HOPE for Homeownership of Single Family Homes

-HEAD-
    Sec. 12896. Definitions

-STATUTE-
      For purposes of this part:
        (1) The term "applicant" means a private nonprofit
      organization, cooperative association, or a public agency
      (including an agency or instrumentality thereof) in cooperation
      with a private nonprofit organization.
        (2) The term "displaced homemaker" has the same meaning as in
      section 12704 of this title.
        (3) The term "eligible family" means a family or individual who
      - 
          (A) has an income that does not exceed 80 percent of the
        median income for the area, as determined by the Secretary with
        adjustments for smaller and larger families; and
          (B) is a first-time homebuyer.

        (4) The term "eligible property" means a single family
      property, containing no more than four units, that is owned or
      held by the Secretary, the Secretary of Veterans Affairs, the
      Secretary of Agriculture, the Resolution Trust Corporation, the
      Federal Deposit Insurance Corporation, the Secretary of Defense,
      the Secretary of Transportation, the General Services
      Administration, any other Federal agency, a State or local
      government (including any in rem property), or a public housing
      agency or an Indian housing authority (excluding public or Indian
      housing under the United States Housing Act of 1937 [42 U.S.C.
      1437 et seq.] and including properties held by institutions
      within the jurisdiction of the Resolution Trust Corporation).
        (5) The term "first-time homebuyer" has the same meaning as in
      section 12704 of this title.
        (6) The term "homeownership program" means a program for
      homeownership under this part.
        (7) The term "Indian housing authority" has the meaning given
      such term in section 3(b)(11) (!1) of the United States Housing
      Act of 1937.

        (8) The term "low-income family" has the meaning given such
      term in section 3(b)(2) of the United States Housing Act of 1937
      [42 U.S.C. 1437a(b)(2)].
        (9) The term "public housing agency" has the meaning given such
      term in section 3(b)(6) of the United States Housing Act of 1937
      [42 U.S.C. 1437a(b)(6)].
        (10) The term "recipient" means an applicant approved to
      receive a grant under this part or such other entity specified in
      the approved application that will assume the obligations of the
      recipient under this part.
        (11) The term "Secretary" means the Secretary of Housing and
      Urban Development.
        (12) The term "single parent" means an individual who - 
          (A) is unmarried or legally separated from a spouse; and
          (B)(i) has 1 or more minor children for whom the individual
        has custody or joint custody; or
          (ii) is pregnant.

-SOURCE-
    (Pub. L. 101-625, title IV, Sec. 446, Nov. 28, 1990, 104 Stat.
    4179; Pub. L. 102-550, title I, Sec. 181(g)(2), (h), Oct. 28, 1992,
    106 Stat. 3736.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The United States Housing Act of 1937, referred to in par. (4),
    is act Sept. 1, 1937, ch. 896, as revised generally by Pub. L. 93-
    383, title II, Sec. 201(a), Aug. 22, 1974, 88 Stat. 653, and
    amended, which is classified generally to chapter 8 (Sec. 1437 et
    seq.) of this title. For complete classification of this Act to the
    Code, see Short Title note set out under section 1437 of this title
    and Tables.
      Section 3(b)(11) of the United States Housing Act of 1937,
    referred to in par. (7), was classified to section 1437a(b)(11) of
    this title prior to repeal by Pub. L. 104-330, title V, Sec.
    501(b)(1)(D), Oct. 26, 1996, 110 Stat. 4041, and a new section
    1437a(b)(11), defining "public housing agency plan", was enacted by
    Pub. L. 105-276, title V, Sec. 506(4), Oct. 21, 1998, 112 Stat.
    2524.

-MISC1-
                                AMENDMENTS                            
      1992 - Par. (4). Pub. L. 102-550 inserted "the Federal Deposit
    Insurance Corporation, the Secretary of Defense, the Secretary of
    Transportation, the General Services Administration, any other
    Federal agency," after "Corporation," and substituted "(excluding
    public or Indian housing under the United States Housing Act of
    1937 and including" for "(including scattered site single family
    properties, and".

-FOOTNOTE-
    (!1) See References in Text note below.

-End-

-CITE-
    42 USC Sec. 12897                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE
                     FAMILY HOMES              
    Part B - HOPE for Homeownership of Single Family Homes

-HEAD-
    Sec. 12897. Limitation on selection criteria

-STATUTE-
      In establishing criteria for selecting applicants to receive
    assistance under this part, the Secretary may not establish any
    selection criterion or criteria that grant or deny such assistance
    to an applicant (or have the effect of granting or denying
    assistance) based on the implementation, continuation, or
    discontinuation of any public policy, regulation, or law of any
    jurisdiction in which the applicant or project is located.

-SOURCE-
    (Pub. L. 101-625, title IV, Sec. 447, Nov. 28, 1990, 104 Stat.
    4180.)

-End-

-CITE-
    42 USC Sec. 12898                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE
                     FAMILY HOMES              
    Part B - HOPE for Homeownership of Single Family Homes

-HEAD-
    Sec. 12898. Implementation

-STATUTE-
      Not later than the expiration of the 180-day period beginning on
    the date funds authorized under this part first become available
    for obligation, the Secretary shall by notice establish such
    requirements as may be necessary to carry out the provisions of
    this part. Such requirements shall be subject to section 553 of
    title 5. The Secretary shall issue regulations based on the initial
    notice before the expiration of the 8-month period beginning on the
    date of the notice.

-SOURCE-
    (Pub. L. 101-625, title IV, Sec. 448, Nov. 28, 1990, 104 Stat.
    4180.)

-End-

-CITE-
    42 USC Sec. 12898a                                          01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE
                     FAMILY HOMES              
    Part B - HOPE for Homeownership of Single Family Homes

-HEAD-
    Sec. 12898a. Enterprise zone homeownership opportunity grants

-STATUTE-
    (a) Statement of purpose
      It is the purpose of this section - 
        (1) to encourage homeownership by families in the United States
      who are not otherwise able to afford homeownership;
        (2) to encourage the redevelopment of economically depressed
      areas; and
        (3) to provide better housing opportunities in federally
      approved and equivalent State-approved enterprise zones.
    (b) Definitions
      For purposes of this section the following definitions shall
    apply:
      (1) Home
        The term "home" means any 1- to 4-family dwelling. Such term
      includes any dwelling unit in a condominium project or
      cooperative project consisting of not more than 4 dwelling units,
      any town house, and any manufactured home.
      (2) Metropolitan statistical area
        The term "metropolitan statistical area" means a metropolitan
      statistical area as established by the Office of Management and
      Budget.
      (3) Nonprofit organization
        The term "nonprofit organization" means a private nonprofit
      corporation, or other private nonprofit legal entity, that is
      approved by the Secretary as to financial responsibility.
      (4) Secretary
        The term "Secretary" means the Secretary of Housing and Urban
      Development.
      (5) State
        The term "State" means each of the several States, the District
      of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands,
      Guam, American Samoa, the Northern Mariana Islands, the Trust
      Territory of the Pacific Islands, and any other territory or
      possession of the United States.
      (6) Unit of general local government
        The term "unit of general local government" means any borough,
      city, county, parish, town, township, village, or other general
      purpose political subdivision of a State.
    (c) Assistance to nonprofit organizations
      (1) In general
        The Secretary may provide assistance to nonprofit organizations
      to carry out enterprise zone homeownership opportunity programs
      to promote homeownership in federally approved and equivalent
      State-approved enterprise zones in accordance with the provisions
      of this section. Such assistance shall be made in the form of
      grants.
      (2) Applications
        Applications for assistance under this section shall be made in
      such form, and in accordance with such procedures, as the
      Secretary may prescribe.
    (d) Eligible uses of assistance
      (1) In general
        Any nonprofit organization receiving assistance under this
      section shall use such assistance to provide loans to families
      purchasing homes constructed or rehabilitated in accordance with
      an enterprise zone homeownership opportunity program approved
      under this section.
      (2) Specific requirements
        Each loan made to a family under this subsection shall - 
          (A) be secured by a second mortgage held by the Secretary on
        the property involved;
          (B) be in an amount not exceeding $15,000;
          (C) bear no interest; and
          (D) be repayable to the Secretary upon the sales, lease, or
        other transfer of such property.
    (e) Program requirements
      (1) In general
        Assistance provided under this section may be used only in
      connection with an enterprise zone homeownership opportunity
      program of construction or rehabilitation of homes.
      (2) Family need
        Each family purchasing a home under this section shall - 
          (A) have a family income on the date of such purchase that is
        not more than the median income for a family of 4 persons
        (adjusted for family size) in the metropolitan statistical area
        in which a federally approved or equivalent State-approved
        enterprise zone is located; and
          (B) not have owned a home during the 3-year period preceding
        such purchase.
      (3) Downpayment
        Each family purchasing a home under this section shall make a
      downpayment of not less than 5 percent of the sale price of such
      home.
      (4) Leasing prohibition
        No family purchasing a home under this section may lease such
      home.
    (f) Terms and conditions of assistance
      (1) Local consultation
        No proposed enterprise zone homeownership opportunity program
      may be approved by the Secretary under this section unless the
      applicant involved demonstrates to the satisfaction of the
      Secretary that - 
          (A) it has consulted with and received the support of
        residents of the neighborhood in which such program is to be
        located; and
          (B) it has the approval of each unit of general local
        government in which such program is to be located.
      (2) Program schedule
        Each applicant for assistance under this section shall submit
      to the Secretary an estimated schedule for completion of its
      proposed enterprise zone homeownership opportunity program, which
      schedule shall have been agreed to by each unit of general local
      government in which such program is to be located.
      (3) Location
        All homes constructed or rehabilitated under such program will
      be located in federally approved or equivalent State-approved
      enterprise zones.
      (4) Sales contracts
        Sales contracts entered into under such program will contain
      provisions requiring repayment of any loan made under this
      section upon the sale or other transfer of the home involved,
      unless the Secretary approves a transfer of such home without
      repayment (in which case the second mortgage held by the
      Secretary on such home shall remain in force until such loan is
      fully repaid).
    (g) Program selection criteria
      (1) In general
        In selecting enterprise zone homeownership opportunity programs
      for assistance under this section from among eligible programs,
      the Secretary shall make such selection on the basis of the
      extent to which - 
          (A) non-Federal public or private entities will contribute
        land necessary to make each program feasible;
          (B) non-Federal public and private financial or other
        contributions (including tax abatements, waivers of fees
        related to development, waivers of construction, development,
        or zoning requirements, and direct financial contributions)
        will reduce the cost of home (!1) constructed or rehabilitated
        under each program;

          (C) each program will produce the greatest number of units
        for the least amount of assistance provided under this section,
        taking into consideration the cost differences among different
        market areas; and
          (D) each program provides for the involvement of local
        residents in the planning, and construction or rehabilitation,
        of homes.
      (2) Exception
        To the extent that non-Federal public entities are prohibited
      by the law of any State from making any form of contribution
      described in subparagraph (A) or (B) of paragraph (1), the
      Secretary shall not consider such form of contribution in
      evaluating such program.
    (h) Regulations
      Not later than 180 days after October 28, 1992, the Secretary
    shall issue final regulations to carry out the provisions of this
    title.(!2) Any such regulations shall be issued in accordance with
    section 553 of title 5, notwithstanding the provisions of
    subsection (a)(2) of such section.

    (i) Funding
      There are authorized to be appropriated to carry out this section
    $30,000,000 in each of fiscal years 1993 and 1994.

-SOURCE-
    (Pub. L. 102-550, title I, Sec. 186, Oct. 28, 1992, 106 Stat.
    3748.)

-COD-
                               CODIFICATION                           
      Section was enacted as part of the Housing and Community
    Development Act of 1992, and not as part of subtitle C (Secs. 441-
    448) of title IV of Pub. L. 101-625 which comprises this part.

-TRANS-
           TERMINATION OF TRUST TERRITORY OF THE PACIFIC ISLANDS       
      For termination of Trust Territory of the Pacific Islands, see
    note set out preceding section 1681 of Title 48, Territories and
    Insular Possessions.

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

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

-End-

-CITE-
    42 USC Part C - HOPE for Youth: Youthbuild                  01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE
                     FAMILY HOMES              
    Part C - HOPE for Youth: Youthbuild

-HEAD-
                    PART C - HOPE FOR YOUTH: YOUTHBUILD                

-End-

-CITE-
    42 USC Sec. 12899                                           01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE
                     FAMILY HOMES              
    Part C - HOPE for Youth: Youthbuild

-HEAD-
    Sec. 12899. Statement of purpose

-STATUTE-
      It is the purpose of this part - 
        (1) to expand the supply of permanent affordable housing for
      homeless individuals and members of low- and very low-income
      families by utilizing the energies and talents of economically
      disadvantaged young adults;
        (2) to provide economically disadvantaged young adults with
      opportunities for meaningful work and service to their
      communities in helping to meet the housing needs of homeless
      individuals and members of low- and very low-income families;
        (3) to enable economically disadvantaged young adults to obtain
      the education and employment skills necessary to achieve economic
      self-sufficiency; and
        (4) to foster the development of leadership skills and
      commitment to community development among young adults in low-
      income communities.

-SOURCE-
    (Pub. L. 101-625, title IV, Sec. 451, as added Pub. L. 102-550,
    title I, Sec. 164, Oct. 28, 1992, 106 Stat. 3723.)

-End-

-CITE-
    42 USC Sec. 12899a                                          01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE
                     FAMILY HOMES              
    Part C - HOPE for Youth: Youthbuild

-HEAD-
    Sec. 12899a. Program authority

-STATUTE-
      The Secretary may make - 
        (1) planning grants to enable applicants to develop Youthbuild
      programs; and
        (2) implementation grants to enable applicants to carry out
      Youthbuild programs.

-SOURCE-
    (Pub. L. 101-625, title IV, Sec. 452, as added Pub. L. 102-550,
    title I, Sec. 164, Oct. 28, 1992, 106 Stat. 3723.)

-End-

-CITE-
    42 USC Sec. 12899b                                          01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE
                     FAMILY HOMES              
    Part C - HOPE for Youth: Youthbuild

-HEAD-
    Sec. 12899b. Planning grants

-STATUTE-
    (a) Grants
      The Secretary is authorized to make planning grants to applicants
    for the purpose of developing Youthbuild programs under this part.
    The amount of a planning grant under this section may not exceed
    $150,000, except that the Secretary may for good cause approve a
    grant in a higher amount.
    (b) Eligible activities
      Planning grants may be used for activities to develop Youthbuild
    programs including - 
        (1) studies of the feasibility of a Youthbuild program;
        (2) establishment of consortia between youth training and
      education programs and housing owners or developers, including
      any organizations specified in section 12899(2) of this title,
      which will participate in the Youthbuild program;
        (3) identification and selection of a site for the Youthbuild
      program;
        (4) preliminary architectural and engineering work for the
      Youthbuild program;
        (5) identification and training of staff for the Youthbuild
      program;
        (6) planning for education, job training, and other services
      that will be provided as part of the Youthbuild program;
        (7) other planning, training, or technical assistance necessary
      in advance of commencing the Youthbuild program; and
        (8) preparation of an application for an implementation grant
      under this part.
    (c) Application
      (1) Form and procedures
        An application for a planning grant shall be submitted by an
      applicant in such form and in accordance with such procedures as
      the Secretary shall establish.
      (2) Minimum requirements
        The Secretary shall require that an application contain at a
      minimum - 
          (A) a request for a planning grant, specifying the activities
        proposed to be carried out, the schedule for completing the
        activities, the personnel necessary to complete the activities,
        and the amount of the grant requested;
          (B) a description of the applicant and a statement of its
        qualifications, including a description of the applicant's past
        experience with housing rehabilitation or construction and with
        youth and youth education and employment training programs, and
        its relationship with local unions and apprenticeship programs,
        and other community groups;
          (C) identification and description of potential sites for the
        program and the construction or rehabilitation activities that
        would be undertaken at such sites; potential methods for
        identifying and recruiting youth participants; potential
        educational and job training activities, work opportunities and
        other services for participants; and potential coordination
        with other Federal, State, and local housing and youth
        education and employment training activities including
        activities conducted by Indian tribes;
          (D) a certification by the public official responsible for
        submitting the comprehensive housing affordability strategy
        under section 12705 of this title that the proposed activities
        are consistent with the approved housing strategy of the State
        or unit of general local government within which the project is
        located; and
          (E) a certification that the applicant will comply with the
        requirements of the Fair Housing Act [42 U.S.C. 3601 et seq.],
        title VI of the Civil Rights Act of 1964 [42 U.S.C. 2000d et
        seq.], section 504 of the Rehabilitation Act of 1973 [29 U.S.C.
        794], and the Age Discrimination Act of 1975 [42 U.S.C. 6101 et
        seq.], and will affirmatively further fair housing.
    (d) Selection criteria
      The Secretary shall, by regulation, establish selection criteria
    for a national competition for assistance under this section, which
    shall include - 
        (1) the qualifications or potential capabilities of the
      applicant;
        (2) the potential of the applicant for developing a successful
      and affordable Youthbuild program;
        (3) the need for the prospective program, as determined by the
      degree of economic distress - 
          (A) of the community from which participants would be
        recruited (such as poverty, youth unemployment, and number of
        individuals who have dropped out of high school); and
          (B) of the community in which the housing proposed to be
        constructed or rehabilitated would be located (such as
        incidence of homelessness, shortage of affordable housing, and
        poverty); and

        (4) such other factors that the Secretary shall require that
      (in the determination of the Secretary) are appropriate for
      purposes of carrying out the program established by this part in
      an effective and efficient manner.

-SOURCE-
    (Pub. L. 101-625, title IV, Sec. 453, as added Pub. L. 102-550,
    title I, Sec. 164, Oct. 28, 1992, 106 Stat. 3723.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Fair Housing Act, referred to in subsec. (c)(2)(E), is title
    VIII of Pub. L. 90-284, Apr. 11, 1968, 82 Stat. 81, as amended,
    which is classified principally to subchapter I (Sec. 3601 et seq.)
    of chapter 45 of this title. For complete classification of this
    Act to the Code, see Short Title note set out under section 3601 of
    this title and Tables.
      The Civil Rights Act of 1964, referred to in subsec. (c)(2)(E),
    is Pub. L. 88-352, July 2, 1964, 78 Stat. 241, as amended. Title VI
    of the Act is classified generally to subchapter V (Sec. 2000d et
    seq.) of chapter 21 of this title. For complete classification of
    this Act to the Code, see Short Title note set out under section
    2000a of this title and Tables.
      The Age Discrimination Act of 1975, referred to in subsec.
    (c)(2)(E), is title III of Pub. L. 94-135, Nov. 28, 1975, 89 Stat.
    728, as amended, which is classified generally to chapter 76 (Sec.
    6101 et seq.) of this title. For complete classification of this
    Act to the Code, see Short Title note set out under section 6101 of
    this title and Tables.

-End-

-CITE-
    42 USC Sec. 12899c                                          01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE
                     FAMILY HOMES              
    Part C - HOPE for Youth: Youthbuild

-HEAD-
    Sec. 12899c. Implementation grants

-STATUTE-
    (a) Grants
      The Secretary is authorized to make implementation grants to
    applicants for the purpose of carrying out Youthbuild programs
    approved under this part.
    (b) Eligible activities
      Implementation grants may be used to carry out Youthbuild
    programs, including the following activities:
        (1) Architectural and engineering work.
        (2) Acquisition, rehabilitation, acquisition and
      rehabilitation, or construction of housing and related facilities
      to be used for the purposes of providing homeownership under part
      A and part B of this subchapter, residential housing for homeless
      individuals, and low- and very low-income families, or
      transitional housing for persons who are homeless, have
      disabilities, are ill, are deinstitutionalized, or have other
      special needs.
        (3) Administrative costs of the applicant, which may not exceed
      15 percent of the amount of assistance provided under this
      section, or such higher percentage as the Secretary determines is
      necessary to support capacity development by a private nonprofit
      organization.
        (4) Education and job training services and activities
      including - 
          (A) work experience and skills training, coordinated, to the
        maximum extent feasible, with preapprenticeship and
        apprenticeship programs, in the construction and rehabilitation
        activities described in subsection (b)(2) of this section;
          (B) services and activities designed to meet the educational
        needs of participants, including - 
            (i) basic skills instruction and remedial education;
            (ii) bilingual education for individuals with limited-
          English proficiency;
            (iii) secondary education services and activities designed
          to lead to the attainment of a high school diploma or its
          equivalent; and
            (iv) counseling and assistance in attaining post-secondary
          education and required financial aid;

          (C) counseling services and related activities;
          (D) activities designed to develop employment and leadership
        skills, including support for youth councils; and
          (E) support services and need-based stipends necessary to
        enable individuals to participate in the program and, for a
        period not to exceed 12 months after completion of training, to
        assist participants through support services in retaining
        employment.

        (5) Wage stipends and benefits provided to participants.
        (6) Funding of operating expenses and replacement reserves of
      the property covered by the Youthbuild program.
        (7) Legal fees.
        (8) Defraying costs for the ongoing training and technical
      assistance needs of the recipient that are related to developing
      and carrying out the Youthbuild program.
    (c) Application
      (1) Form and procedure
        An application for an implementation grant shall be submitted
      by an applicant in such form and in accordance with such
      procedures as the Secretary shall establish.
      (2) Minimum requirements
        The Secretary shall require that an application contain at a
      minimum - 
          (A) a request for an implementation grant, specifying the
        amount of the grant requested and its proposed uses;
          (B) a description of the applicant and a statement of its
        qualifications, including a description of the applicant's past
        experience with housing rehabilitation or construction and with
        youth and youth education and employment training programs, and
        its relationship with local unions and apprenticeship programs,
        and other community groups;
          (C) a description of the proposed site for the program;
          (D) a description of the educational and job training
        activities, work opportunities, and other services that will be
        provided to participants;
          (E) a description of the proposed construction or
        rehabilitation activities to be undertaken and the anticipated
        schedule for carrying out such activities;
          (F) a description of the manner in which eligible youths will
        be recruited and selected, including a description of
        arrangements which will be made with community-based
        organizations, State and local educational agencies, including
        agencies of Indian tribes, public assistance agencies, the
        courts of jurisdiction for status and youth offenders, shelters
        for homeless individuals and other agencies that serve homeless
        youth, foster care agencies, and other appropriate public and
        private agencies;
          (G) a description of the special outreach efforts that will
        be undertaken to recruit eligible young women (including young
        women with dependent children);
          (H) a description of how the proposed program will be
        coordinated with other Federal, State, and local activities and
        activities conducted by Indian tribes, including vocational,
        adult and bilingual education programs, job training provided
        with funds available under title I of the Workforce Investment
        Act of 1998 [29 U.S.C. 2801 et seq.] and the Family Support Act
        of 1988, and housing and community development programs,
        including programs that receive assistance under section 5306
        of this title;
          (I) assurances that there will be a sufficient number of
        adequately trained supervisory personnel in the program who
        have attained the level of journeyman or its equivalent;
          (J) a description of the applicant's relationship with local
        building trade unions regarding their involvement in training,
        and the relationship of the Youthbuild program with established
        apprenticeship programs;
          (K) a description of activities that will be undertaken to
        develop the leadership skills of participants;
          (L) a detailed budget and a description of the system of
        fiscal controls and auditing and accountability procedures that
        will be used to ensure fiscal soundness;
          (M) a description of the commitments for any additional
        resources to be made available to the program from the
        applicant, from recipients of other Federal, State or local
        housing and community development assistance who will sponsor
        any part of the construction, rehabilitation, operation and
        maintenance, or other housing and community development
        activities undertaken as part of the program, or from other
        Federal, State or local activities and activities conducted by
        Indian tribes, including, but not limited to, vocational, adult
        and bilingual education programs, and job training provided
        with funds available under title I of the Workforce Investment
        Act of 1998 [29 U.S.C. 2801 et seq.] and the Family Support Act
        of 1988;
          (N) identification and description of the financing proposed
        for any - 
            (i) rehabilitation;
            (ii) acquisition of the property; or
            (iii) construction;

          (O) identification and description of the entity that will
        operate and manage the property;
          (P) a certification by the public official responsible for
        submitting the comprehensive housing affordability strategy
        under section 12705 of this title that the proposed activities
        are consistent with the approved housing strategy of the State
        or unit of general local government within which the project is
        located; and
          (Q) a certification that the applicant will comply with the
        requirements of the Fair Housing Act [42 U.S.C. 3601 et seq.],
        title VI of the Civil Rights Act of 1964 [42 U.S.C. 2000d et
        seq.], section 504 of the Rehabilitation Act of 1973 [29 U.S.C.
        794], and the Age Discrimination Act of 1975 [42 U.S.C. 6101 et
        seq.], and will affirmatively further fair housing.
    (d) Selection criteria
      The Secretary shall establish selection criteria for assistance
    under this section, which shall include - 
        (1) the qualifications or potential capabilities of the
      applicant;
        (2) the feasibility of the Youthbuild program;
        (3) the potential for developing a successful Youthbuild
      program;
        (4) the need for the prospective project, as determined by the
      degree of economic distress of the community from which
      participants would be recruited (such as poverty, youth
      unemployment, number of individuals who have dropped out of high
      school) and of the community in which the housing proposed to be
      constructed or rehabilitated would be located (such as incidence
      of homelessness, shortage of affordable housing, poverty);
        (5) the apparent commitment of the applicant to leadership
      development, education, and training of participants;
        (6) the inclusion of previously homeless tenants in the housing
      provided;
        (7) the commitment of other resources to the program by the
      applicant and by recipients of other Federal, State or local
      housing and community development assistance who will sponsor any
      part of the construction, rehabilitation, operation and
      maintenance, or other housing and community development
      activities undertaken as part of the program, or by other
      Federal, State or local activities and activities conducted by
      Indian tribes, including, but not limited to, vocational, adult
      and bilingual education programs, and job training provided with
      funds available under title I of the Workforce Investment Act of
      1998 [29 U.S.C. 2801 et seq.] and the Family Support Act of 1988;
      and
        (8) such other factors as the Secretary determines to be
      appropriate for purposes of carrying out the program established
      by this part in an effective and efficient manner.
    (e) Priority for applicants who obtain housing money from other
      sources
      The Secretary shall give priority in the award of grants under
    this section to applicants to the extent that they propose to
    finance activities described in paragraphs (1), (2), and (6) of
    subsection (b) of this section from funds provided from Federal,
    State, local, or private sources other than assistance under this
    part.
    (f) Approval
      The Secretary shall notify each applicant, not later than 4
    months after the date of the submission of the application, whether
    the application is approved or not approved.
    (g) Combined planning and implementation grant application
      procedure
      The Secretary shall develop a procedure under which an applicant
    may apply at the same time and in a single application for a
    planning grant and an implementation grant, with receipt of the
    implementation grant conditioned on successful completion of the
    activities funded by the planning grant.

-SOURCE-
    (Pub. L. 101-625, title IV, Sec. 454, as added Pub. L. 102-550,
    title I, Sec. 164, Oct. 28, 1992, 106 Stat. 3725; amended Pub. L.
    105-277, div. A, Sec. 101(f) [title VIII, Sec. 405(d)(43)(A),
    (f)(34)], Oct. 21, 1998, 112 Stat. 2681-337, 2681-428, 2681-434.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Workforce Investment Act of 1998, referred to in subsecs.
    (c)(2)(H), (M) and (d)(7), is Pub. L. 105-220, Aug. 7, 1998, 112
    Stat. 936, as amended. Title I of the Act is classified principally
    to chapter 30 (Sec. 2801 et seq.) of Title 29, Labor. For complete
    classification of this Act to the Code, see Short Title note set
    out under section 9201 of Title 20, Education, and Tables.
      The Family Support Act of 1988, referred to in subsecs.
    (c)(2)(H), (M) and (d)(7), is Pub. L. 100-485, Oct. 13, 1988, 102
    Stat. 2343, as amended. For complete classification of this Act to
    the Code, see Short Title of 1988 Amendment note under section 1305
    of this title and Tables.
      The Fair Housing Act, referred to in subsec. (c)(2)(Q), is title
    VIII of Pub. L. 90-284, Apr. 11, 1968, 82 Stat. 81, as amended,
    which is classified principally to subchapter I (Sec. 3601 et seq.)
    of chapter 45 of this title. For complete classification of this
    Act to the Code, see Short Title note set out under section 3601 of
    this title and Tables.
      The Civil Rights Act of 1964, referred to in subsec. (c)(2)(Q),
    is Pub. L. 88-352, July 2, 1964, 78 Stat. 241, as amended. Title VI
    of the Act is classified generally to subchapter V (Sec. 2000d et
    seq.) of chapter 21 of this title. For complete classification of
    this Act to the Code, see Short Title note set out under section
    2000a of this title and Tables.
      The Age Discrimination Act of 1975, referred to in subsec.
    (c)(2)(Q), is title III of Pub. L. 94-135, Nov. 28, 1975, 89 Stat.
    728, as amended, which is classified generally to chapter 76 (Sec.
    6101 et seq.) of this title. For complete classification of this
    Act to the Code, see Short Title note set out under section 6101 of
    this title and Tables.

-MISC1-
                                AMENDMENTS                            
      1998 - Subsecs. (c)(2)(H), (M), (d)(7). Pub. L. 105-277, Sec.
    101(f) [title VIII, Sec. 405(f)(34)], struck out "the Job Training
    Partnership Act and" before "title I of the Workforce".
      Pub. L. 105-277, Sec. 101(f) [title VIII, Sec. 405(d)(43)(A)],
    substituted "the Job Training Partnership Act and title I of the
    Workforce Investment Act of 1998" for "the Job Training Partnership
    Act".

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Amendment by section 101(f) [title VIII, Sec. 405(d)(43)(A)] of
    Pub. L. 105-277 effective Oct. 21, 1998, and amendment by section
    101(f) [title VIII, Sec. 405(f)(34)] of Pub. L. 105-277 effective
    July 1, 2000, see section 101(f) [title VIII, Sec. 405(g)(1),
    (2)(B)] of Pub. L. 105-277, set out as a note under section 3502 of
    Title 5, Government Organization and Employees.

-End-

-CITE-
    42 USC Sec. 12899d                                          01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE
                     FAMILY HOMES              
    Part C - HOPE for Youth: Youthbuild

-HEAD-
    Sec. 12899d. Youthbuild program requirements

-STATUTE-
    (a) Residential rental housing
      Each residential rental housing project receiving assistance
    under this part shall meet the following requirements:
      (1) Occupancy by low- and very low-income families
        In the project - 
          (A) at least 90 percent of the units shall be occupied, or
        available for occupancy, by individuals and families with
        incomes less than 60 percent of the area median income,
        adjusted for family size; and
          (B) the remaining units shall be occupied, or available for
        occupancy, by low-income families.
      (2) Tenant protections
        (A) Lease
          The lease between a tenant and an owner of residential rental
        housing assisted under this part shall be for not less than 1
        year, unless otherwise mutually agreed to by the tenant and the
        owner, and shall contain such terms and conditions as the
        Secretary shall determine to be appropriate.
        (B) Termination of tenancy
          An owner shall not terminate the tenancy or refuse to renew
        the lease of a tenant of residential rental housing assisted
        under this title (!1) except for serious or repeated violation
        of the terms and conditions of the lease, for violation of
        applicable Federal, State, or local law, or for other good
        cause. Any termination or refusal to renew must be preceded by
        not less than 30 days by the owner's service upon the tenant of
        a written notice specifying the grounds for the action.

        (C) Maintenance and replacement
          The owner of residential rental housing assisted under this
        part shall maintain the premises in compliance with all
        applicable housing quality standards and local code
        requirements.
        (D) Tenant selection
          The owner of residential rental housing assisted under this
        part shall adopt written tenant selection policies and criteria
        that - 
            (i) are consistent with the purpose of providing housing
          for very low-income and low-income families and individuals;
            (ii) are reasonably related to program eligibility and the
          applicant's ability to perform the obligations of the lease;
            (iii) give reasonable consideration to the housing needs of
          families that would qualify for a preference under any system
          of preferences established under section 1437d(c)(1) of this
          title; and
            (iv) provide for (I) the selection of tenants from a
          written waiting list in the chronological order of their
          application, to the extent practicable, and (II) for the
          prompt notification in writing of any rejected applicant of
          the grounds for any rejection.
      (3) Limitation on rental payments
        Tenants in each project shall not be required to pay rent in
      excess of the amount provided under section 1437a(a) of this
      title.
      (4) Tenant participation plan
        For each project owned by a nonprofit organization, the
      organization shall provide a plan for and follow a program of
      tenant participation in management decisions.
      (5) Prohibition against discrimination
        A unit in a project assisted under this part may not be refused
      for leasing to a family holding tenant-based assistance under
      section 1437f of this title because of the status of the
      prospective tenant as a holder of such assistance.
    (b) Transitional housing
      Each transitional housing project receiving assistance under this
    part shall adhere to the requirements regarding service delivery,
    housing standards, and rent limitations applicable to comparable
    housing receiving assistance under title IV of the McKinney-Vento
    Homeless Assistance Act [42 U.S.C. 11361 et seq.].
    (c) Limitations on profits for rental and transitional housing
      (1) Monthly rental limitation
        The aggregate monthly rental for each eligible project may not
      exceed the operating costs of the project (including debt
      service, management, adequate reserves, and other operating
      costs) plus a 6 percent return on any equity investment of the
      project owner.
      (2) Profit limitations on partners
        A nonprofit organization that receives assistance under this
      part for a project shall agree to use any profit received from
      the operation, sale, or other disposition of the project for the
      purpose of providing housing for low- and moderate-income
      families. Profit-motivated partners in a nonprofit partnership
      may receive - 
          (A) not more than a 6 percent return on their equity
        investment from project operations; and
          (B) upon disposition of the project, not more than an amount
        equal to their initial equity investment plus a return on that
        investment equal to the increase in the Consumer Price Index
        for the geographic location of the project since the time of
        the initial investment of such partner in the project.
    (d) Homeownership
      Each homeownership project that receives assistance under this
    part shall comply with the requirements of part A or part B of this
    subchapter.
    (e) Restrictions on conveyance
      The ownership interest in a project that receives assistance
    under this part may not be conveyed unless the instrument of
    conveyance requires a subsequent owner to comply with the same
    restrictions imposed upon the original owner.
    (f) Conversion of transitional housing
      The Secretary may waive the requirements of subsection (b) of
    this section to permit the conversion of a transitional housing
    project to a permanent housing project only if such housing would
    meet the requirements for residential rental housing specified in
    this section.
    (g) Period of restrictions
      A project that receives assistance under this part shall comply
    with the requirements of this section for the remaining useful life
    of the property.

-SOURCE-
    (Pub. L. 101-625, title IV, Sec. 455, as added Pub. L. 102-550,
    title I, Sec. 164, Oct. 28, 1992, 106 Stat. 3728; amended Pub. L.
    105-276, title V, Sec. 514(a)(2)(B), Oct. 21, 1998, 112 Stat. 2547;
    Pub. L. 106-400, Sec. 2, Oct. 30, 2000, 114 Stat. 1675.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      This title, referred to in subsec. (a)(2)(B), means title IV of
    Pub. L. 101-625, known as the Homeownership and Opportunity Through
    HOPE Act, and probably should have been "this subtitle", meaning
    subtitle D of title IV of Pub. L. 101-625, as added by Pub. L. 102-
    550, which is classified generally to this part. For complete
    classification of title IV of Pub. L. 101-625 to the Code, see
    Short Title note set out under section 1437aaa of this title and
    Tables.
      The McKinney-Vento Homeless Assistance Act, referred to in
    subsec. (b), is Pub. L. 100-77, July 22, 1987, 101 Stat. 482, as
    amended. Title IV of the Act is classified principally to
    subchapter IV (Sec. 11361 et seq.) of chapter 119 of this title.
    For complete classification of this Act to the Code, see Short
    Title note set out under section 11301 of this title and Tables.

-MISC1-
                                AMENDMENTS                            
      2000 - Subsec. (b). Pub. L. 106-400 substituted "McKinney-Vento
    Homeless Assistance Act" for "Stewart B. McKinney Homeless
    Assistance Act".
      1998 - Subsec. (a)(2)(D)(iii). Pub. L. 105-276 substituted "any
    system of preferences established under section 1437d(c)(1) of this
    title" for "section 1437d(c)(4)(A) of this title".

-FOOTNOTE-
    (!1) See References in Text note below.

-End-

-CITE-
    42 USC Sec. 12899e                                          01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE
                     FAMILY HOMES              
    Part C - HOPE for Youth: Youthbuild

-HEAD-
    Sec. 12899e. Additional program requirements

-STATUTE-
    (a) Eligible participants
      (1) In general
        Except as provided in paragraph (2), an individual may
      participate in a Youthbuild program receiving assistance under
      this part only if such individual is - 
          (A) 16 to 24 years of age, inclusive;
          (B) a very low-income individual or a member of a very low-
        income family; and
          (C) an individual who has dropped out of high school.
      (2) Exception for individuals not meeting income or educational
        need requirements
        Not more than 25 percent of the participants in such program
      may be individuals who do not meet the requirements of either
      paragraphs (!1) (1)(B) or (C), but who have educational needs
      despite attainment of a high school diploma or its equivalent.

      (3) Participation limitation
        Any eligible individual selected for full-time participation in
      a Youthbuild program may be offered full-time participation for a
      period of not less than 6 months and not more than 24 months.
    (b) Minimum time devoted to educational services and activities
      A Youthbuild program receiving assistance under this part shall
    be structured so that 50 percent of the time spent by participants
    in the program is devoted to educational services and activities,
    such as those specified in subparagraphs (B) through (F) (!2) of
    section 12899c(b)(4) of this title.

    (c) Authority restriction
      No provision of this part may be construed to authorize any
    agency, officer, or employee of the United States to exercise any
    direction, supervision, or control over the curriculum, program of
    instruction, administration, or personnel of any educational
    institution, school, or school system, or over the selection of
    library resources, textbooks, or other printed or published
    instructional materials by any educational institution or school
    system.
    (d) State and local standards
      All educational programs and activities supported with funds
    provided under this part shall be consistent with applicable State
    and local educational standards. Standards and procedures with
    respect to the awarding of academic credit and certifying
    educational attainment in such programs shall be consistent with
    applicable State and local educational standards.
    (e) Wages, labor standards, and nondiscrimination
      To the extent consistent with the provisions of this part,
    sections 142, 143 and 167 of the Job Training Partnership Act (as
    in effect on the day before August 7, 1998), relating to wages and
    benefits, labor standards, and nondiscrimination, shall apply to
    the programs conducted under this part as if such programs were
    conducted under the Job Training Partnership Act (as in effect on
    the day before August 7, 1998). This section may not be construed
    to prevent a recipient of a grant under this part from using funds
    from non-Federal sources to increase wages and benefits under such
    programs, if appropriate.

-SOURCE-
    (Pub. L. 101-625, title IV, Sec. 456, as added Pub. L. 102-550,
    title I, Sec. 164, Oct. 28, 1992, 106 Stat. 3730; amended Pub. L.
    105-277, div. A, Sec. 101(f) [title VIII, Sec. 405(d)(43)(B)], Oct.
    21, 1998, 112 Stat. 2681-337, 2681-428.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Job Training Partnership Act, referred to in subsec. (e), is
    Pub. L. 97-300, Oct. 13, 1982, 96 Stat. 1322, as amended, which was
    classified generally to chapter 19 (Sec. 1501 et seq.) of Title 29,
    Labor, prior to repeal by Pub. L. 105-220, title I, Sec. 199(b)(2),
    (c)(2)(B), Aug. 7, 1998, 112 Stat. 1059, effective July 1, 2000.
    Sections 142, 143, and 167 of the Act were classified to sections
    1552, 1553, and 1577, respectively, of Title 29 prior to repeal.
    For complete classification of this Act to the Code, see Tables.

-MISC1-
                                AMENDMENTS                            
      1998 - Subsec. (e). Pub. L. 105-277 inserted "(as in effect on
    the day before August 7, 1998)" after "the Job Training Partnership
    Act" in two places.

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

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

-End-

-CITE-
    42 USC Sec. 12899f                                          01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE
                     FAMILY HOMES              
    Part C - HOPE for Youth: Youthbuild

-HEAD-
    Sec. 12899f. Definitions

-STATUTE-
      For purposes of this part:
      (1) Adjusted income
        The term "adjusted income" has the meaning given the term in
      section 1437a(b) of this title.
      (2) Applicant
        The term "applicant" means a public or private nonprofit
      agency, including - 
          (A) a community-based organization;
          (B) an administrative entity designated under section
        103(b)(1)(B) of the Job Training Partnership Act;
          (C) a community action agency;
          (D) a State and local housing development agency;
          (E) a community development corporation;
          (F) a State and local youth service and conservation corps;
          (G) an Indian tribe, tribally designated housing entity (as
        defined in section 4103 of title 25), or other agency primarily
        serving Indians; and
          (H) any other entity eligible to provide education and
        employment training under other Federal employment training
        programs.
      (3) Community-based organization
        The term "community-based organization" means a private
      nonprofit organization that - 
          (A) maintains, through significant representation on the
        organization's governing board or otherwise, accountability to
        low-income community residents and, to the extent practicable,
        low-income beneficiaries of programs receiving assistance under
        this part; and
          (B) has a history of serving the local community or
        communities where a program receiving assistance under this
        part is located.
      (4) Homeless individual
        The term "homeless individual" has the meaning given the term
      in section 11302 of this title.
      (5) Housing development agency
        The term "housing development agency" means any agency of a
      State or local government, or any private nonprofit organization
      that is engaged in providing housing for homeless or low-income
      families.
      (6) Income
        The term "income" has the meaning given the term in section
      1437a(b) of this title.
      (7) Indian tribe
        The term "Indian tribe" has the same meaning given such term in
      section 5302(a)(17) of this title.
      (8) Individual who has dropped out of high school
        The term "individual who has dropped out of high school" means
      an individual who is neither attending any school nor subject to
      a compulsory attendance law and who has not received a secondary
      school diploma or a certificate of equivalency for such diploma.
      (9) Institution of higher education
        The term "institution of higher education" has the meaning
      given the term in section 1001 of title 20.
      (10) Limited-English proficiency
        The term "limited-English proficiency" has the meaning given
      the term in section 7601(8) (!1) of title 20.

      (11) Low-income family
        The term "low-income family" has the meaning given the term in
      section 1437a(b) of this title.
      (12) Offender
        The term "offender" means any adult or juvenile with a record
      of arrest or conviction for a criminal offense.
      (13) Qualified nonprofit agency
        The term "qualified public or private nonprofit agency" means
      any nonprofit agency that has significant prior experience in the
      operation of projects similar to the Youthbuild program
      authorized under this part and that has the capacity to provide
      effective technical assistance.
      (14) Related facilities
        The term "related facilities" includes cafeterias or dining
      halls, community rooms or buildings, appropriate recreation
      facilities, and other essential service facilities.
      (15) Secretary
        The term "Secretary" means the Secretary of Housing and Urban
      Development.
      (16) State
        The term "State" means any of the several States, the District
      of Columbia, the Commonwealth of Puerto Rico, the Commonwealth of
      the Northern Mariana Islands, the Virgin Islands, Guam, American
      Samoa, the Trust Territories of the Pacific Islands, or any other
      territory or possession of the United States.
      (17) Transitional housing
        The term "transitional housing" means a project that has as its
      purpose facilitating the movement of homeless individuals and
      families to independent living within a reasonable amount of
      time. Transitional housing includes housing primarily designed to
      serve deinstitutionalized homeless individuals and other homeless
      individuals with mental or physical disabilities and homeless
      families with children.
      (18) Very low-income family
        The term "very low-income family" has the meaning given the
      term in section 1437a(b) of this title.
      (19) Youthbuild program
        The term "Youthbuild program" means any program that receives
      assistance under this part and provides disadvantaged youth with
      opportunities for employment, education, leadership development,
      and training in the construction or rehabilitation of housing for
      homeless individuals and members of low- and very low-income
      families.

-SOURCE-
    (Pub. L. 101-625, title IV, Sec. 457, as added Pub. L. 102-550,
    title I, Sec. 164, Oct. 28, 1992, 106 Stat. 3731; amended Pub. L.
    103-382, title III, Sec. 394(d), Oct. 20, 1994, 108 Stat. 4027;
    Pub. L. 105-244, title I, Sec. 102(a)(13)(M), Oct. 7, 1998, 112
    Stat. 1621; Pub. L. 106-400, Sec. 2, Oct. 30, 2000, 114 Stat. 1675;
    Pub. L. 109-136, Sec. 5, Dec. 22, 2005, 119 Stat. 2644.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 103(b)(1)(B) of the Job Training Partnership Act,
    referred to in par. (2)(B), which was classified to section
    1513(b)(1)(B) of Title 29, Labor, was repealed by Pub. L. 105-220,
    title I, Sec. 199(b)(2), (c)(2)(B), Aug. 7, 1998, 112 Stat. 1059,
    effective July 1, 2000. Pursuant to section 2940(b) of Title 29,
    references to a provision of the Job Training Partnership Act,
    effective Aug. 7, 1998, are deemed to refer to that provision or
    the corresponding provision of the Workforce Investment Act of
    1998, Pub. L. 105-220, Aug. 7, 1998, 112 Stat. 936, and effective
    July 1, 2000, are deemed to refer to the corresponding provision of
    the Workforce Investment Act of 1998. For complete classification
    of the Workforce Investment Act of 1998 to the Code, see Short
    Title note set out under section 9201 of Title 20, Education, and
    Tables.
      Section 7601(8) of title 20, referred to in par. (10), was in the
    original section 7004(a) of the Elementary and Secondary Education
    Act of 1965, and was translated as if it read section 7501(8) of
    that Act to reflect the probable intent of Congress, because the
    Elementary and Secondary Education Act of 1965 did not contain a
    section 7004, but did contain a section 7501(8) which defined
    limited English proficiency. The section was omitted in the general
    amendment of title VII of the Elementary and Secondary Education
    Act of 1965 by Pub. L. 107-110, title VII, Sec. 701, Jan. 8, 2002,
    115 Stat. 1907.

-MISC1-
                                AMENDMENTS                            
      2005 - Par. (2)(G), (H). Pub. L. 109-136 added subpar. (G) and
    redesignated former subpar. (G) as (H).
      2000 - Par. (4). Pub. L. 106-400 made technical amendment to
    reference in original act which appears in text as reference to
    section 11302 of this title.
      1998 - Par. (9). Pub. L. 105-244 substituted "section 1001" for
    "section 1141(a)".
      1994 - Par. (10). Pub. L. 103-382 substituted "section 7601(8) of
    title 20" for "section 3283 of title 20".

                     EFFECTIVE DATE OF 1998 AMENDMENT                 
      Amendment by Pub. L. 105-244 effective Oct. 1, 1998, except as
    otherwise provided in Pub. L. 105-244, see section 3 of Pub. L. 105-
    244, set out as a note under section 1001 of Title 20, Education.

-TRANS-
           TERMINATION OF TRUST TERRITORY OF THE PACIFIC ISLANDS       
      For termination of Trust Territory of the Pacific Islands, see
    note set out preceding section 1681 of Title 48, Territories and
    Insular Possessions.

-FOOTNOTE-
    (!1) See References in Text note below.

-End-

-CITE-
    42 USC Sec. 12899g                                          01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE
                     FAMILY HOMES              
    Part C - HOPE for Youth: Youthbuild

-HEAD-
    Sec. 12899g. Management and technical assistance

-STATUTE-
    (a) Secretary assistance
      The Secretary may enter into contracts with a qualified public or
    private nonprofit agency to provide assistance to the Secretary in
    the management, supervision, and coordination of Youthbuild
    programs receiving assistance under this part.
    (b) Sponsor assistance
      The Secretary shall enter into contracts with a qualified public
    or private nonprofit agency to provide appropriate training,
    information, and technical assistance to sponsors of programs
    assisted under this part.
    (c) Application preparation
      Technical assistance may also be provided in the development of
    program proposals and the preparation of applications for
    assistance under this part to eligible entities which intend or
    desire to submit such applications. Community-based organizations
    shall be given first priority in the provision of such assistance.
    (d) Reservation of funds
      In each fiscal year, the Secretary shall reserve 5 percent of the
    amounts available for activities under this part pursuant to
    section 12870 of this title to carry out subsections (b) and (c) of
    this section.

-SOURCE-
    (Pub. L. 101-625, title IV, Sec. 458, as added Pub. L. 102-550,
    title I, Sec. 164, Oct. 28, 1992, 106 Stat. 3733.)

-End-

-CITE-
    42 USC Sec. 12899h                                          01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE
                     FAMILY HOMES              
    Part C - HOPE for Youth: Youthbuild

-HEAD-
    Sec. 12899h. Contracts

-STATUTE-
      Each Youthbuild program shall carry out the services and
    activities under this part directly or through arrangements or
    under contracts with administrative entities designated under
    section 103(b)(1)(B) of the Job Training Partnership Act, with
    State and local educational agencies, institutions of higher
    education, State and local housing development agencies, or with
    other public agencies, including agencies of Indian tribes, and
    private organizations.

-SOURCE-
    (Pub. L. 101-625, title IV, Sec. 459, as added Pub. L. 102-550,
    title I, Sec. 164, Oct. 28, 1992, 106 Stat. 3733.)

-REFTEXT-
                            REFERENCES IN TEXT                        
      Section 103(b)(1)(B) of the Job Training Partnership Act,
    referred to in text, which was classified to section 1513(b)(1)(B)
    of Title 29, Labor, was repealed by Pub. L. 105-220, title I, Sec.
    199(b)(2), (c)(2)(B), Aug. 7, 1998, 112 Stat. 1059, effective July
    1, 2000. Pursuant to section 2940(b) of Title 29, references to a
    provision of the Job Training Partnership Act, effective Aug. 7,
    1998, are deemed to refer to that provision or the corresponding
    provision of the Workforce Investment Act of 1998, Pub. L. 105-220,
    Aug. 7, 1998, 112 Stat. 936, and effective July 1, 2000, are deemed
    to refer to the corresponding provision of the Workforce Investment
    Act of 1998. For complete classification of the Workforce
    Investment Act of 1998 to the Code, see Short Title note set out
    under section 9201 of Title 20, Education, and Tables.

-End-

-CITE-
    42 USC Sec. 12899h-1                                        01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE
                     FAMILY HOMES              
    Part C - HOPE for Youth: Youthbuild

-HEAD-
    Sec. 12899h-1. Ineligibility of Indian tribes

-STATUTE-
      Indian tribes, Indian housing authorities, and other agencies
    primarily serving Indians or Indian areas shall not be eligible
    applicants for amounts made available for assistance under this
    part for fiscal years 1998 through 2005.

-SOURCE-
    (Pub. L. 101-625, title IV, Sec. 460, as added Pub. L. 104-330,
    title V, Sec. 504(a)(2), Oct. 26, 1996, 110 Stat. 4044; amended
    Pub. L. 105-276, title V, Sec. 595(e)(15), Oct. 21, 1998, 112 Stat.
    2659; Pub. L. 109-136, Sec. 6, Dec. 22, 2005, 119 Stat. 2644.)

-MISC1-
                             PRIOR PROVISIONS                         
      A prior section 460 of Pub. L. 101-625 was renumbered section
    461, and is classified to section 12899i of this title.

                                AMENDMENTS                            
      2005 - Pub. L. 109-136 substituted "for fiscal years 1998 through
    2005" for "for fiscal year 1998 and fiscal years thereafter".
      1998 - Pub. L. 105-276 substituted "1998" for "1997".

                              EFFECTIVE DATE                          
      Section effective Oct. 1, 1997, except as otherwise expressly
    provided, see section 107 of Pub. L. 104-330, set out as a note
    under section 4101 of Title 25, Indians.
      Section 504(b) of Pub. L. 104-330 provided that: "The amendments
    under subsection (a) [enacting this section] shall apply with
    respect to amounts made available for assistance under subtitle D
    of title II of the Cranston-Gonzalez National Affordable Housing
    Act [42 U.S.C. 12899 et seq.] for fiscal year 1998 and fiscal years
    thereafter."

-End-

-CITE-
    42 USC Sec. 12899i                                          01/02/2006

-EXPCITE-
    TITLE 42 - THE PUBLIC HEALTH AND WELFARE
    CHAPTER 130 - NATIONAL AFFORDABLE HOUSING
    SUBCHAPTER IV - HOPE FOR HOMEOWNERSHIP OF MULTIFAMILY AND SINGLE
                     FAMILY HOMES              
    Part C - HOPE for Youth: Youthbuild

-HEAD-
    Sec. 12899i. Regulations

-STATUTE-
      The Secretary shall issue any regulations necessary to carry out
    this part.

-SOURCE-
    (Pub. L. 101-625, title IV, Sec. 461, formerly Sec. 460, as added
    Pub. L. 102-550, title I, Sec. 164, Oct. 28, 1992, 106 Stat. 3733;
    renumbered Sec. 461, Pub. L. 104-330, title V, Sec. 504(a)(1), Oct.
    26, 1996, 110 Stat. 4043.)

-End-