§12748 Home Investment Trust Funds

Summary

The Secretary must create a HOME Investment Trust Fund account for each participating jurisdiction. The money in each fund can only be used to invest in affordable housing inside that jurisdiction or in joint projects with neighboring jurisdictions that serve both places. Each fund gets a line of credit made up of money allocated or reallocated under section 12747 and any payments or repayments under section 12749. That line of credit is lowered when the jurisdiction draws money, when funds expire under subsection (g), or when penalties under section 12754 are applied. A jurisdiction may draw money up to its remaining line of credit only after it certifies the funds will be used under its approved housing plan and follow the rules in this subchapter. Once certified, the Secretary must immediately pay out the funds in the form the jurisdiction chooses. The jurisdiction must invest the drawn funds, plus any interest earned, in the intended affordable housing no later than 15 days after drawing. The Secretary may not charge interest or fees on fund balances. If money in a fund is not placed under a binding commitment to affordable housing within 24 months after the last day of the month it was deposited, the right to draw that money expires and the Secretary must reduce the line of credit and reallocate the expired amount by formula under section 12747(d). The Secretary must keep each jurisdiction informed about the status of its fund and commitments.