Title 42 › Chapter CHAPTER 8— - LOW-INCOME HOUSING › Subchapter SUBCHAPTER II–B— - HOME RULE FLEXIBLE GRANT DEMONSTRATION › § 1437bbb–5
The HUD Secretary must let cities, counties, or groups of local governments apply to join a housing demonstration program. An application must come after a public hearing and other chances for people to comment. The local government must give a plan for how it will use the program money, show it thought about public comments, list any rules it wants waived, explain how the plan meets the program goals, propose how performance will be measured, say how long it will take part, get any needed signed agreements from other local officials, show it has the management ability and HUD experience to run the plan (for example with programs like Community Development Block Grants, HOME, or McKinney-Vento), describe work that public housing agencies will do, promise to keep the money separate and use it only for the plan, explain how it will manage housing assets, explain any state or local laws or contracts that matter and how it will follow them, and say how it would return to the normal rules if the program ends. The Secretary must review each application and tell the applicant within 90 days if it is approvable. If approvable, affected public housing agencies get at least 30 days to give written comments. The Secretary must publish decisions and reasons. The Secretary picks winners from approvable applications based on likely success at meeting agreed goals and expanding housing choices. If approved, the Secretary and the local government sign an agreement for a set period that includes required performance levels. The Secretary and the participant set performance standards (for example, helping families become self-sufficient, cutting per-family costs, adding affordable housing and homeownership chances, improving management, reducing homelessness and geographic concentration). If a participant fails to meet those levels, the Secretary will end its participation and require the return steps promised in the application. The Secretary may set extra rules for troubled housing agencies. Joining the program does not change the legal status or relationships of public housing agencies, and HUD may allow a simpler planning process for participants.
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The Public Health and Welfare — Source: USLM XML via OLRC
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Citation
42 U.S.C. § 1437bbb–5
Title 42 — The Public Health and Welfare
Last Updated
Apr 6, 2026
Release point: 119-73