42 U.S.C. § 12893: Implementation grants

Summary

The Secretary can give implementation grants to carry out approved homeownership programs. Grants can pay for things like design and engineering, buying and fixing up homes to sell to eligible families (including co-ops), removing lead-paint hazards when required, short-term moves during rehab, counseling and training for buyers, legal and administrative costs (administrative costs may not be more than 15 percent of the grant), economic development tied to the program, and training for the program staff. Recipients must provide at least 25 percent of the grant amount from non‑Federal sources. That matching support can be cash, certain payments for admin costs, waived or deferred taxes or fees, infrastructure investments, or other in-kind help the Secretary accepts. Only up to 7 percent of the total grant amount can be counted as matching for administrative expenses. Applications must follow the Secretary’s form and include the requested amount and use, the applicant’s experience, a program plan and budget, property and buyer descriptions, financing and sales terms, management plans, proof the plan fits the local housing strategy (or, during the first 12 months after November 28, 1990, another approved local plan), and a certificate of compliance with the Fair Housing Act, Title VI, section 504, and the Age Discrimination Act. The Secretary must tell applicants within 6 months whether they are approved.

Title 42, §12893

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(a)Grants

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

(b)Eligible activities

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

(1)Architectural and engineering work.

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

(3)Rehabilitation of the 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 assistance provided under this section.

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

(7)Relocation of eligible families who elect to move.

(8)Any necessary temporary relocation of homebuyers during rehabilitation.

(9)Legal fees.

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

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

(c)Matching funding

(1)In general

Each recipient shall assure that contributions equal to not less than 25 percent of the grant amounts under this section are provided from non-Federal sources to carry out the homeownership program.

(2)Form

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

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

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

Contributions for administrative expenses shall be recognized only up to an amount equal to 7 percent of the total amount of grants made available under this section.

(d)Application

(1)Form and procedure

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)Minimum requirements

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

(C)a description of the proposed homeownership program, consistent with section 12894 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 that the program will comply with the affordability requirements under section 12894(b) of this title;

(D)an identification and description of the properties to be acquired under the homeownership program and a description of the composition of potential eligible families, including family size and income;

(E)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;

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

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

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

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

(J)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

(K)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.

(e)Selection criteria

The Secretary shall establish selection criteria for assistance under this part, which shall include—

(1)the ability of the applicant to develop and carry out the proposed homeownership program, taking into account the qualifications and experience of the applicant and the quality of any related ongoing program of the applicant;

(2)the feasibility of the homeownership program;

(3)the quality and viability of the proposed homeownership program;

(4)the extent to which suitable eligible property is available for use under the program in the area to be served, and the extent to which the types of property expected to be covered by the proposed homeownership program are federally owned;

(5)whether the approved comprehensive housing affordability strategy for the jurisdiction within which the eligible property is located includes the proposed homeownership program as one of the general priorities identified pursuant to section 12705(b)(7) of this title;

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

(7)the extent to which a sufficient supply of affordable rental housing of the type assisted under this part 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.

(f)Approval

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.

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Fair Housing Act, referred to in subsec. (d)(2)(K), 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)(K), 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)(K), 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.

Amendments

1994—Subsec. (c)(1). Pub. L. 103–233 substituted “25 percent” for “33 percent”. 1992—Subsec. (b)(4) to (11). Pub. L. 102–550 added par. (4) and redesignated former pars. (4) to (10) as (5) to (11), respectively.

Statutory Notes and Related Subsidiaries

Effective Date

of 1994 AmendmentAmendment by Pub. L. 103–233 applicable with respect to any amounts made available to carry out subchapter II (§ 12721 et seq.) of this chapter after Apr. 11, 1994, and any amounts made available to carry out that subchapter before that date that remain uncommitted on that date, with Secretary to issue any

Regulations

necessary to carry out such amendment not later than end of 45-day period beginning on that date, see section 209 of Pub. L. 103–233, set out as a note under section 5301 of this title.

§12893 Implementation Grants

Summary

Title 42, §12893

Notes & Related Subsidiaries

Editorial Notes

References in Text

Short Title

Short Title

Short Title

Amendments

Statutory Notes and Related Subsidiaries

Effective Date

Regulations

Citations & Metadata