Title 42 — The Public Health and WelfareRelease 119-73not60

§12749 Repayment of Investment

Title 42 › Chapter 130— NATIONAL AFFORDABLE HOUSING › Subchapter II— INVESTMENT IN AFFORDABLE HOUSING › Part A— HOME Investment Partnerships › § 12749

Last updated Apr 5, 2026|Official source

Summary

Money repaid or interest earned from a jurisdiction’s HOME Investment Trust Fund must go back into that same fund. If the area is not a participating jurisdiction when the payment is made, the money will be reallocated under section 12747(d). Each participating jurisdiction must have an agreement with the Secretary to make sure investments in affordable housing can be repaid if the housing stops qualifying as affordable. Those repayments go into the investing jurisdiction’s HOME Investment Trust Fund, with the same reallocation rule if it is not participating at repayment time (see section 12747(d)). The Secretary must make repaid funds immediately available for local HOME investments and may allow an outside account—used only for that jurisdiction’s affordable housing—so repayments are not federal receipts.

Full Legal Text

Title 42, §12749

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

(a)Any repayment of funds drawn from a jurisdiction’s HOME Investment Trust Fund, and any payment of interest or other return on the investment of such funds, shall be deposited in such jurisdiction’s HOME Investment Trust Fund, except that, if the jurisdiction is not a participating jurisdiction when such payment or repayment is made, the amount of such payment or repayment shall be reallocated in accordance with section 12747(d) of this title.

(b)Each participating jurisdiction shall enter into an agreement with the Secretary ensuring that funds invested in affordable housing under this part are repayable when the housing no longer qualifies as affordable housing. Any repayment under the previous sentence shall be for deposit in the HOME Investment Trust Fund of the jurisdiction making the investment; except that if such jurisdiction is not a participating jurisdiction when such repayment is made, the amount of such repayment shall be reallocated in accordance with section 12747(d) of this title.

(c)The Secretary shall take such actions as are necessary to ensure that any repayments deposited in a HOME Investment Trust Fund in accordance with this section shall be immediately available to the participating jurisdiction for investment subject to the provisions of this part that apply to funds that are allocated under section 12747 of this title. Actions authorized under the preceding sentence may include authorizing the establishment for a participating jurisdiction of a HOME Investment Trust Fund account outside of the Federal Government that, under arrangements satisfactory to the Secretary, shall be used solely to invest in affordable housing within the participating jurisdiction’s boundaries in accordance with the provisions of this subchapter. Such accounts shall be established in such a manner that repayments are not receipts or collections of the Federal Government.

Reference

Citations & Metadata

Citation

42 U.S.C. § 12749

Title 42 — The Public Health and Welfare

Last Updated

Apr 5, 2026

Release point: 119-73not60