§12748 HOME Investment Trust Funds

Summary

The Secretary must set up a HOME Investment Trust Fund account for each participating jurisdiction. The account can only be used to invest in affordable housing inside that jurisdiction or in joint projects with neighboring jurisdictions. Each fund has a line of credit made up of money allocated or reallocated under section 12747 and any payments or repayments under section 12749. The line of credit goes down when the jurisdiction draws money, when amounts expire, or when penalties under section 12754 are applied. A jurisdiction may draw money up to its remaining line only after it certifies the funds will be used under its approved housing plan and follow the rules. Once certified, the Secretary must immediately disburse the funds in the form the jurisdiction chooses. The jurisdiction must invest the drawn money and any interest in the housing for which it was withdrawn within 15 days. The Secretary cannot charge interest or fees on the fund balances and must keep each jurisdiction informed about the fund’s status. If money is not placed under a binding commitment to housing within 24 months after the month it was deposited, the right to draw it expires and the Secretary reduces the line and reallocates that amount by formula under section 12747(d).