§12873 — Title 42 The Public Health and Welfare | U.S. Code

Summary

The Housing Secretary can give grants to groups to run approved homeownership programs. The money can pay for many things needed to make units ready to sell, such as design and engineering work, buying buildings to sell to eligible families, rehabbing buildings to the Secretary’s standards, removing lead paint hazards, counseling and training for buyers, moving or temporarily relocating tenants during rehab, helping set up resident management groups, legal fees, operating costs and reserves, start-up training, and local economic development. The grant may also pay administrative costs, but those cannot be more than 15 percent of the grant. The Secretary can allow many types of these activities, but some have limits. Anyone who gets a grant must provide at least 33 percent of the grant amount from non‑Federal sources, not counting any post‑sale operating money. That 33 percent can be cash (but not certain HUD grant funds), administrative costs paid from non‑Federal money, the value of waived taxes or fees, the appraised value of land or property, investments in needed infrastructure, or other in‑kind contributions the Secretary approves. Applications must follow the Secretary’s rules and include the amount and use of the grant, the applicant’s experience, a clear plan with costs and schedule, property and tenant details, matching funds commitments, financing and sales plans, any resale limits, the manager/operator, a local housing plan consistency certification, and a promise to follow the Fair Housing Act, Title VI, Section 504, and the Age Discrimination Act and to affirmatively further fair housing. The Secretary will set selection rules (for example, applicant qualifications, feasibility, tenant interest, property suitability, geographic diversity, and effects on local rental housing). The Secretary must tell applicants within 6 months if they are approved. The Secretary may give conditional approval for project residents’ Section 8 assistance if future funds are available.

Title 42, §12873

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(a)The Secretary is authorized to make implementation grants to applicants for the purpose of carrying out homeownership programs approved under this part.

(b)Implementation grants may be used for activities to carry out homeownership programs (including programs for cooperative ownership), including the following activities:

(1)Architectural and engineering work.

(2)Acquisition of the eligible property for the purpose of transferring ownership to eligible families in accordance with a homeownership program that meets the requirements under this part.

(3)Rehabilitation of any property covered by the homeownership program, in accordance with standards established by the Secretary.

(4)Abatement of lead-based paint hazards, as required by section 4822(a) of this title.

(5)Administrative costs of the applicant, which may not exceed 15 percent of the amount of the assistance provided under this section.

(6)Development of resident management corporations and resident management councils, but only if the applicant has not received assistance under section 12872 11 See References in Text note below. of this title for such activities.

(7)Counseling and training of homebuyers and homeowners under the homeownership program.

(8)Relocation of tenants who elect to move.

(9)Any necessary temporary relocation of tenants during rehabilitation.

(10)Planning for establishment of for

or not-for-profit small businesses by or on behalf of residents, job training, and other activities that promote economic self-sufficiency of homebuyers and homeowners of the property covered by the homeownership program and economic development of the neighborhood.

(11)Funding of operating expenses and replacement reserves of the property covered by the homeownership program.

(12)Legal fees.

(13)Defraying costs for the ongoing training needs of the recipient that are related to developing and carrying out the homeownership program.

(14)Economic development activities that promote economic self-sufficiency of homebuyers, residents, and homeowners under the homeownership program.

(c)(1)Each recipient shall assure that contributions equal to not less than 33 percent of the grant amounts made available under this section, excluding any amounts provided for post-sale operating expense, shall be provided from non-Federal sources to carry out the homeownership program.

(2)Such contributions may be in the form of—

(A)cash contributions from non-Federal resources, which may not include funds from a grant made under section 5306(b) or section 5306(d) of this title;

(B)payment of administrative expenses, as defined by the Secretary, from non-Federal resources, including funds from a grant made under section 5306(b) or section 5306(d) of this title;

(C)the value of taxes, fees, or other charges that are normally and customarily imposed but are waived, foregone, or deferred in a manner that facilitates the implementation of a homeownership program assisted under this part;

(D)the value of land or other real property as appraised according to procedures acceptable to the Secretary;

(E)the value of investment in on-site and off-site infrastructure required for a homeownership program assisted under this part; or

(F)such other in-kind contributions as the Secretary may approve.

(d)(1)An application for an implementation grant shall be submitted by an applicant in such form and in accordance with such procedures as the Secretary shall establish.

(2)The Secretary shall require that an application contain at a minimum—

(A)a request for an implementation grant, specifying the amount of the grant requested and its proposed uses;

(B)if applicable, an application for assistance under section 1437f of this title, specifying the proposed uses of such assistance and the period during which the assistance will be needed;

(C)a description of the qualifications and experience of the applicant in providing low-income housing;

(D)a description of the proposed homeownership program, consistent with section 12874 1 of this title and the other requirements of this part, specifying the activities proposed to be carried out and their estimated costs, identifying reasonable schedules for carrying it out, and demonstrating the program will comply with the affordability requirements under section 12874(b) 1 of this title;

(E)identification and description of the property involved, and a description of the composition of the tenants, including family size and income;

(F)a description of and commitment for the resources that are expected to be made available to provide the matching funding required under subsection (c) and of other resources that are expected to be made available in support of the homeownership program;

(G)identification and description of the financing proposed for any (i) rehabilitation and (ii) acquisition (I) of the property, by an entity for transfer to eligible families, and (II) by eligible families of ownership interests in, or shares representing, units in the project;

(H)the proposed sales price, the basis for such price determination, and terms to an entity, if any, that will purchase the property for resale to eligible families;

(I)the proposed sales prices, if any, and terms to eligible families;

(J)any proposed restrictions on the resale of units under a homeownership program;

(K)identification and description of the entity that will operate and manage the property;

(L)a certification by the public official responsible for submitting the comprehensive housing affordability strategy under section 12705 of this title that the proposed activities are consistent with the approved housing strategy of the State or unit of general local government within which the project is located (or, during the first 12 months after November 28, 1990, that the application is consistent with such other existing State or local housing plan or strategy that the Secretary shall determine to be appropriate); and

(M)a certification that the applicant will comply with the requirements of the Fair Housing Act [42 U.S.C. 3601 et seq.], title VI of the Civil Rights Act of 1964 [42 U.S.C. 2000d et seq.], section 504 of the Rehabilitation Act of 1973 [29 U.S.C. 794], and the Age Discrimination Act of 1975 [42 U.S.C. 6101 et seq.], and will affirmatively further fair housing.

(d)The Secretary shall establish selection criteria for assistance under this section, which shall include—

(1)the qualifications or potential capabilities of the applicant;

(2)the feasibility of the homeownership program;

(3)the extent of tenant interest in the development of a homeownership program for the property;

(4)the potential for developing an affordable homeownership program and the suitability of the property for homeownership;

(5)national geographic diversity among housing for which applicants are selected to receive assistance;

(6)the extent to which a sufficient supply of affordable rental housing of the type assisted under this title 1 exists in the locality, so that the implementation of the homeownership program will not appreciably reduce the number of such rental units available to residents currently residing in such units or eligible for residency in such units; and

(7)such other factors as the Secretary determines to be appropriate for purposes of carrying out the program established by the 33 So in original. Probably should be “this”. part in an effective and efficient manner.

(e)The Secretary shall notify each applicant, not later than 6 months after the date of the submission of the application, whether the application is approved or not approved. The Secretary may approve the application for an implementation grant with a statement that the application for the section 8 [42 U.S.C. 1437f] assistance for residents of the project not purchasing units is conditionally approved, subject to the availability of appropriations in subsequent fiscal years.

Notes & Related Subsidiaries

Editorial Notes

References in Text

section 12872 of this title, referred to in subsec. (b)(6), was in the original “section 322” and was translated as reading “section 422”, meaning section 422 of Pub. L. 101–625, to reflect the probable intent of Congress. section 322 of Pub. L. 101–625 amended section 1708 of Title 12, Banks and Banking. section 12874 of this title and section 12874(b) of this title, referred to in subsec. (d)(2)(D), were in the original “section 324” and “section 324(b)”, respectively, and were translated as reading “section 424” and “section 424(b)”, respectively, meaning section 424 of Pub. L. 101–625, to reflect the probable intent of Congress. section 324 of Pub. L. 101–625, which proposed an amendment to section 1709 of Title 12, never took effect pursuant to section 351 of Pub. L. 101–625. Such section 324 did not contain a subsec. (b). The Fair Housing Act, referred to in subsec. (d)(2)(M), is title VIII of Pub. L. 90–284, Apr. 11, 1968, 82 Stat. 81, which is classified principally to subchapter I (§ 3601 et seq.) of chapter 45 of this title. For complete classification of this Act to the Code, see

Short Title

note set out under section 3601 of this title and Tables. The Civil Rights Act of 1964, referred to in subsec. (d)(2)(M), is Pub. L. 88–352, July 2, 1964, 78 Stat. 241. Title VI of the Act is classified generally to subchapter V (§ 2000d et seq.) of chapter 21 of this title. For complete classification of this Act to the Code, see

Short Title

note set out under section 2000a of this title and Tables. The Age Discrimination Act of 1975, referred to in subsec. (d)(2)(M), is title III of Pub. L. 94–135, Nov. 28, 1975, 89 Stat. 728, which is classified generally to chapter 76 (§ 6101 et seq.) of this title. For complete classification of this Act to the Code, see

Short Title

note set out under section 6101 of this title and Tables. This title, referred to in subsec. (d)(6), means title IV of Pub. L. 101–625, known as the Homeownership and Opportunity Through HOPE Act, and probably should have been “this subtitle”, meaning subtitle B (§§ 421–431) of title IV of Pub. L. 101–625, which is classified principally to this part. For complete classification of title IV of Pub. L. 101–625 to the Code, see

Short Title

note set out under section 1437aaa of this title and Tables.

Amendments

1992—Subsec. (b)(4) to (14). Pub. L. 102–550 added par. (4) and redesignated former pars. (4) to (13) as (5) to (14), respectively.

§12873 Implementation Grants

Summary

Title 42, §12873

Notes & Related Subsidiaries

Editorial Notes

References in Text

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Amendments

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