PRIA, Government Policy, Made Personal

Summary

The Secretary must approve and pay out help under section 4143 through eligible intermediaries chosen by a competitive process. If no acceptable intermediary offers to run the program in a State, the Secretary will run it there directly. The selection process must allow a reasonable administrative fee, give priority to groups with experience in this program or the Emergency Low Income Housing Preservation Act of 1987, and require applicants to show staff, skills, and a plan. The Secretary cannot favor applicants just because they had federal grants before (but may reject those who failed on similar contracts). The Secretary may pick more than one intermediary for a State or region, but intermediaries must not duplicate coverage. National nonprofits are used only if no acceptable State or regional group applies. For help under section 4144, regional, State, and local groups get preference over national nonprofits. Chosen intermediaries must act only as delegated program administrators who review and approve grants for the Secretary, set up proper grant and financial controls, and may receive a reasonable fee but may not sell other services to grant recipients for the same projects or get paid from the grant money. An “eligible intermediary” is a State, regional, or national group (or housing agency) that: focuses on keeping affordable housing and preventing displacement; does not get direct federal operating funds; if national, has existed 5 years and is a 501(c)(3); if regional/State nonprofit, has existed 3 years and is tax-exempt; has a record serving low-income people or community housing developers and experience managing grants or loans; and meets the Secretary’s fiscal responsibility standards.

Title 12, §4145

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(a)In general

The Secretary shall approve and disburse assistance under section 4143 of this title through eligible intermediaries selected by the Secretary under subsection (b). If the Secretary does not receive an acceptable proposal from an intermediary offering to administer assistance under this section in a given State, the Secretary shall administer the program in such State directly.

(b)Selection of eligible intermediaries

(1)In general

The Secretary shall develop criteria to select eligible intermediaries, through a competitive process, to administer assistance under this subchapter. The process shall include provision for a reasonable administrative fee.

(2)Priority

With respect to all forms of grants available under section 4143 of this title, such criteria shall give priority to applications from eligible intermediaries with demonstrated expertise or experience with the program established under this title or under the Emergency Low Income Housing Preservation Act of 1987.

(3)Criteria

The criteria developed under this subsection shall—

(A)not assign any preference or priority to applications from eligible intermediaries based on their previous participation in administering or receiving Federal grants or loans (but may exclude applicants who have failed to perform under prior contracts of a similar nature);

(B)require an applicant to prepare a proposal that demonstrates adequate staffing, qualifications, prior experience, and a plan for participation; and

(C)permit an applicant to serve as the administrator of assistance made available under section 4143(d) or (e) of this title, based on the applicant’s suitability and interest.

(4)Geographic coverage

The Secretary may select more than 1 State or regional intermediary for a single State or region. The number of intermediaries chosen for each State or region may be based on the number of eligible low-income housing projects in the State or region, provided there is no duplication of geographic coverage by intermediaries in the administration of the direct assistance grant program.

(5)National nonprofit intermediaries

National nonprofit intermediaries shall be selected to administer the assistance made available under section 4143 of this title only with respect to States or regions for which no other eligible intermediary, acceptable to the Secretary, has submitted a proposal to participate.

(6)Preference

With respect to assistance made available under section 4144 of this title, preference shall be given to eligible regional, State, and local intermediaries, over national nonprofit organizations.

(c)Conflicts of interest

Eligible intermediaries selected under subsection (b) to disburse assistance under section 4143 of this title shall certify that they will serve only as delegated program administrators, charged with the responsibility for reviewing and approving grant applications on behalf of the Secretary. Selected intermediaries shall—

(1)establish appropriate procedures for grant administration and fiscal management, pursuant to standards established by the Secretary; and

(2)receive a reasonable administrative fee, except that they may not provide other services to grant recipients with respect to projects that are the subject of the grant application and may not receive payment, directly or indirectly, from the proceeds of grants they have approved.

(d)“Eligible intermediary” defined

For purposes of this section, the term “eligible intermediary” means a State, regional, or national organization (including a quasi-public organization) or a State or local housing agency that—

(1)has as a central purpose the preservation of existing affordable housing and the prevention of displacement;

(2)does not receive direct Federal appropriations for operating support;

(3)in the case of a national nonprofit organization, has been in existence for at least 5 years prior to the date of application and has been classified by the Internal Revenue Service as an exempt organization under section 501(c)(3) of title 26;

(4)in the case of a regional or State nonprofit organization, has been in existence for at least 3 years prior to the date of application and has been classified by the Internal Revenue Service as an exempt organization under section 501(c)(3) of title 26 or is otherwise a tax-exempt entity;

(5)has a record of service to low-income individuals or community-based nonprofit housing developers in multiple communities and, with respect to intermediaries administering assistance under section 4143 of this title, has experience with the allocation or administration of grant or loan funds; and

(6)meets standards of fiscal responsibility established by the Secretary.

Notes & Related Subsidiaries

Editorial Notes

References in Text

This title, referred to in subsec. (b)(2), means title II of Pub. L. 100–242, as amended by Pub. L. 101–625, title VI, § 601(a), Nov. 28, 1990, 104 Stat. 4249, known as the Low-Income Housing Preservation and Resident Homeownership Act of 1990, which is classified principally to this chapter. For complete classification of this Act to the Code, see

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note set out under section 4101 of this title and Tables. The Emergency Low Income Housing Preservation Act of 1987, referred to in subsec. (b)(2), is title II of Pub. L. 100–242, Feb. 5, 1988, 101 Stat. 1877, which was classified principally as a note under section 1715l of this title. Title II of Pub. L. 100–242 was amended generally by Pub. L. 101–625, title VI, § 601(a), Nov. 28, 1990, 104 Stat. 4249, and is now known as the Low-Income Housing Preservation and Resident Homeownership Act of 1990, which is classified principally to this chapter. For complete classification of this Act to the Code, see

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note set out under section 4101 of this title and Tables.

§4145 Delivery of Assistance Through Intermediaries

Summary

Title 12, §4145

Notes & Related Subsidiaries

Editorial Notes

References in Text

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