PRIA, Government Policy, Made Personal

Summary

For 24 months after Part A money reaches a jurisdiction, the jurisdiction must set aside at least 15% of those funds to use only for housing when a community housing development organization (a group that helps own or build housing) plays a major role in owning or developing the housing, as the Secretary decides. The jurisdiction must try to find and encourage such groups. If it can’t find enough in the first 24 months, up to 20% of its funds, but not more than $150,000, can be used to build those groups’ capacity. The jurisdiction may contract with these groups to do the work. If reserved funds stay unused for 24 months, the Secretary will let the jurisdiction use them for any eligible activities without requiring a community housing development organization. When possible, redeployments should follow the selection rules in section 12747(c).

Title 42, §12771

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

(a)In general

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 when a community housing development organization materially participates in the ownership or development of that housing, as determined by the Secretary. 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)Recapture and reuse

If any funds reserved under subsection (a) remain uninvested for a period of 24 months, the Secretary shall make such funds available to the participating jurisdiction for any eligible activities under this subchapter without regard to whether a community housing development organization materially participates in the use of such funds.

(c)Direct reallocation criteria

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

2026—Subsec. (a). Pub. L. 119–101, § 501(s), substituted “when a community housing development organization materially participates in the ownership or development of that housing, as determined by the Secretary” for “to be developed, sponsored, or owned by community housing development organizations”. Subsec. (b). Pub. L. 119–101, § 501(j), amended subsec. (b) generally. Prior to amendment, text read as follows: “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.” 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