§4143 Grants for building resident capacity and funding predevelopment costs

Summary

Gives money as direct grants to resident organizations, resident councils, and community-based nonprofit housing developers to help buy specific low-income housing projects. Up to 30% of the money must go to resident capacity grants. The rest goes to predevelopment grants. Resident capacity grants can be no more than $30,000 per project. Predevelopment grants can be no more than $200,000 per project. Reasonable administrative costs for participating intermediaries can be paid. Resident capacity grants pay for outreach, forming a resident group, holding elections, training, leadership and legal or technical help. Predevelopment grants pay for forming a buying group and costs of pursuing a purchase (for example, consulting, legal, appraisals, environmental work, design, fees, and sponsor staff or overhead). Grants are only for projects where the owner has filed the required notice of intent to transfer or sell. Payments may come in phases tied to performance goals set by the Secretary with intermediaries. Applications are accepted monthly and decided at least quarterly by intermediaries. If denied, applicants can appeal to the Secretary and must get a binding answer within 30 days.