§12771 — Title 42 The Public Health and Welfare | U.S. Code

Summary

A jurisdiction must set aside at least 15 percent of its Part A funds for 24 months to pay only for housing that community housing development organizations (CHDOs) will develop, sponsor, or own. The jurisdiction must try to find and help CHDOs that can carry out its housing plan. If it cannot find enough CHDOs in the first 24 months, it may use up to 20 percent of its funds, but not more than $150,000, to build CHDOs’ capacity. The jurisdiction may sign contracts with CHDOs to do this work. If reserved funds stay unused for 24 months, the Secretary will take them back and reallocate them either to other jurisdictions for CHDO housing or to nonprofit intermediaries to build CHDO capacity, with preference for groups serving the original area. Reallocations should follow the selection rules in section 12747(c).

Title 42, §12771

The Public Health and Welfare — Source: USLM XML via OLRC

(a)For a period of 24 months after funds under part A 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)If any funds reserved under subsection (a) 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)Insofar as practicable, direct reallocations under this section shall be made according to the selection criteria established under section 12747(c) of this title.

Notes & Related Subsidiaries

Editorial Notes

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, § 212(a), substituted “24” for “18”.

Statutory Notes and Related Subsidiaries

Effective Date

of 1992 AmendmentAmendment 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.

§12771 Set-aside for community housing development organizations