136
(1) FINANCIAL ASSISTANCE.—To the extent budg-
et authority is available under this title, the Secretary
shall provide financial assistance to resident manage-
ment corporations or resident councils that obtain, by
contract or otherwise, technical assistance for the de-
velopment of resident management entities, including
the formation of such entities, the development of the
management capability of newly formed or existing
entities, the identification of the social support needs
of residents of public housing developments, and the
securing of such support. In addition, the Secretary
may provide financial assistance to resident manage-
ment corporations or resident councils for activities
sponsored by resident organizations for economic up-
lift, such as job training, economic development, secu-
rity, and other self-sufficiency activities beyond those
related to the management of public housing. The Sec-
retary may require resident councils or resident man-
agement corporations to utilize public housing agen-
cies or other qualified organizations as contract ad-
ministrators with respect to financial assistance pro-
vided under this paragraph.
(2) LIMITATION ON ASSISTANCE.—The financial
assistance provided under this subsection with respect
137
to any public housing development may not exceed
$100,000.
(3) PROHIBITION.—A resident management cor-
poration or resident council may not, before the
award to the corporation or council of a grant
amount under this subsection, enter into any contract
or other agreement with any entity to provide such
entity with amounts from the grant for providing
technical assistance or carrying out other activities el-
igible for assistance with amounts under this sub-
section. Any such agreement entered into in violation
of this paragraph shall be void and unenforceable.
(4) FUNDING.—Of any amounts made available
for financial assistance under this title, the Secretary
may use to carry out this subsection $15,000,000 for
fiscal year 1998.
(5) LIMITATION REGARDING ASSISTANCE UNDER
HOPE GRANT PROGRAM.—The Secretary may not pro-
vide financial assistance under this subsection to any
resident management corporation or resident council
with respect to which assistance for the development
or formation of such entity is provided under title III
of the United States Housing Act of 1937 (as in effect
before the effective date of the repeal under section
601(b) of this Act).
138
(6) TECHNICAL
ASSISTANCE
AND
CLEARING-
HOUSE.—The Secretary may use up to 10 percent of
the amount made available pursuant to paragraph
(4)—
(A) to provide technical assistance, directly
or by grant or contract, and
(B) to receive, collect, process, assemble, and
disseminate information,
in connection with activities under this subsection.
(g) ASSESSMENT AND REPORT BY SECRETARY.—Not
later than 3 years after the date of the enactment of this
Act, the Secretary shall—
(1) conduct an evaluation and assessment of
resident management, and particularly of the effect of
resident management on living conditions in public
housing; and
(2) submit to the Congress a report setting forth
the findings of the Secretary as a result of the evalua-
tion and assessment and including any recommenda-
tions the Secretary determines to be appropriate.
(h) APPLICABILITY.—Any management contract be-
tween a public housing agency and a resident management
corporation that is entered into after the date of the enact-
ment of the Stewart B. McKinney Homeless Assistance
139
Amendments Act of 1988 shall be subject to this section and
any regulations issued to carry out this section.
Subtitle D—Homeownership
SEC. 251. RESIDENT HOMEOWNERSHIP PROGRAMS.
(a) IN GENERAL.—A public housing agency may carry
out a homeownership program in accordance with this sec-
tion and the local housing management plan of the agency
to make public housing dwelling units, public housing de-
velopments, and other housing projects available for pur-
chase by low-income families. An agency may transfer a
unit only pursuant to a homeownership program approved
by the Secretary. Notwithstanding section 107, the Sec-
retary may approve a local housing management plan
without approving the portion of the plan regarding a
homeownership program pursuant to this section. In the
case of the portion of a plan regarding the homeownership
program that is submitted separately pursuant to the pre-
ceding sentence, the Secretary shall approve or disapprove
such portion not later than 60 days after the submission
of such portion.
(b) PARTICIPATING UNITS.—A program under this
section may cover any existing public housing dwelling
units or projects, and may include other dwelling units and
housing owned, operated, or assisted, or otherwise acquired
for use under such program, by the public housing agency.
140
(c) ELIGIBLE PURCHASERS.—
(1) LOW-INCOME REQUIREMENT.—Only low-in-
come families assisted by a public housing agency,
other low-income families, and entities formed to fa-
cilitate such sales by purchasing units for resale to
low-income families shall be eligible to purchase hous-
ing under a homeownership program under this sec-
tion.
(2) OTHER REQUIREMENTS.—A public housing
agency may establish other requirements or limita-
tions for families to purchase housing under a home-
ownership program under this section, including re-
quirements or limitations regarding employment or
participation in employment counseling or training
activities, criminal activity, participation in home-
ownership counseling programs, evidence of regular
income, and other requirements. In the case of pur-
chase by an entity for resale to low-income families,
the entity shall sell the units to low-income families
within 5 years from the date of its acquisition of the
units. The entity shall use any net proceeds from the
resale and from managing the units, as determined in
accordance with guidelines of the Secretary, for hous-
ing purposes, such as funding resident organizations
and reserves for capital replacements.
141
(d) FINANCING AND ASSISTANCE.—A homeownership
program under this section may provide financing for ac-
quisition of housing by families purchasing under the pro-
gram or by the public housing agency for sale under this
program in any manner considered appropriate by the
agency (including sale to a resident management corpora-
tion).
(e) DOWNPAYMENT REQUIREMENT.—
(1) IN GENERAL.—Each family purchasing hous-
ing under a homeownership program under this sec-
tion shall be required to provide from its own re-
sources a downpayment in connection with any loan
for acquisition of the housing, in an amount deter-
mined by the public housing agency. Except as pro-
vided in paragraph (2), the agency shall permit the
family to use grant amounts, gifts from relatives, con-
tributions from private sources, and similar amounts
as downpayment amounts in such purchase,
(2) DIRECT
FAMILY
CONTRIBUTION.—In pur-
chasing housing pursuant to this section, each family
shall contribute an amount of the downpayment, from
resources of the family other than grants, gifts, con-
tributions, or other similar amounts referred to in
paragraph (1), that is not less than 1 percent of the
purchase price.
142
(f) OWNERSHIP INTERESTS.—A homeownership pro-
gram under this section may provide for sale to the pur-
chasing family of any ownership interest that the public
housing agency considers appropriate under the program,
including ownership in fee simple, a condominium interest,
an interest in a limited dividend cooperative, a shared ap-
preciation interest with a public housing agency providing
financing.
(g) RESALE.—
(1) AUTHORITY
AND
LIMITATION.—A home-
ownership program under this section shall permit
the resale of a dwelling unit purchased under the pro-
gram by an eligible family, but shall provide such
limitations on resale as the agency considers appro-
priate (whether the family purchases directly from the
agency or from another entity) for the agency to re-
capture—
(A) from any economic gain derived from
any such resale occurring during the 5-year pe-
riod beginning upon purchase of the dwelling
unit by the eligible family, a portion of the
amount of any financial assistance provided
under the program by the agency to the eligible
family; and
143
(B) after the expiration of such 5-year pe-
riod, only such amounts as are equivalent to the
assistance provided under this section by the
agency to the purchaser.
(2) CONSIDERATIONS.—The limitations referred
to in paragraph (1) may provide for consideration of
the aggregate amount of assistance provided under the
program to the family, the contribution to equity pro-
vided by the purchasing eligible family, the period of
time elapsed between purchase under the homeowner-
ship program and resale, the reason for resale, any
improvements to the property made by the eligible
family, any appreciation in the value of the property,
and any other factors that the agency considers ap-
propriate.
(h) SALE OF CERTAIN SCATTERED-SITE HOUSING.—
A public housing agency that the Secretary has determined
to be a high-performing agency may use the proceeds from
the disposition of scattered-site public housing under a
homeownership program under this section to purchase re-
placement scattered-site dwelling units, to the extent such
use is provided for in the local housing management plan
for the agency approved under section 107. Any such re-
placement dwelling units shall be considered public housing
for purposes of this Act.
335
(ii) in subparagraph (B), by striking
‘‘in complying with this section’’ and in-
serting ‘‘in carrying out subsection (d)’’;
and
(5) by redesignating subsection (h) (as amended
by paragraph (4)) as subsection (i).
SEC. 709. EFFECTIVE DATE.
This title and the amendments made by this title shall
take effect on the date of the enactment of this Act.