42 U.S.C. § 12873 | Implementation grants

(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 (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)

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

(5)

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

(6)

1 See References in Text note below.

Development of resident management corporations and resident management councils, but only if the applicant has not received assistance under section 12872  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)

Matching funding

(1)

In general

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)

Form

Such contributions may be in the form of—

(A)

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

(B)

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

(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.

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)

2
2 So in original. Two subsecs. (d) have been enacted.
  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)

section 1437f of this title if applicable, an application for assistance under , 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)

¹¹ a description of the proposed homeownership program, consistent with section 12874  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)  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)

section 12705 of this titleNovember 28, 1990 a certification by the public official responsible for submitting the comprehensive housing affordability strategy under 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 , 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)

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

(d)

²  Selection criteria

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)

¹ the extent to which a sufficient supply of affordable rental housing of the type assisted under this title  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)

3 So in original. Probably should be “this”.

such other factors as the Secretary determines to be appropriate for purposes of carrying out the program established by the  part in an effective and efficient manner.

(e)

Approval

42 U.S.C. 1437fThe 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 [] assistance for residents of the project not purchasing units is conditionally approved, subject to the availability of appropriations in subsequent fiscal years.

Pub. L. 101–625, title IV, § 423Nov. 28, 1990104 Stat. 4163 Pub. L. 102–550, title X, § 1012(i)(2)Oct. 28, 1992106 Stat. 3906 (, , ; , , .)

Editorial Notes

References in Text

Section 12872 of this title section 422 of Pub. L. 101–625 Section 322 of Pub. L. 101–625 section 1708 of Title 12, referred to in subsec. (b)(6), was in the original “section 322” and was translated as reading “section 422”, meaning , to reflect the probable intent of Congress. amended , Banks and Banking.

Section 12874 of this title section 12874(b) of this title section 424 of Pub. L. 101–625 Section 324 of Pub. L. 101–625 section 1709 of Title 12 section 351 of Pub. L. 101–625 and , 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 , to reflect the probable intent of Congress. , which proposed an amendment to , never took effect pursuant to . Such section 324 did not contain a subsec. (b).

Pub. L. 90–284Apr. 11, 196882 Stat. 81 section 3601 of this titleThe Fair Housing Act, referred to in subsec. (d)(2)(M), is title VIII of , , , 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 and Tables.

Pub. L. 88–352July 2, 196478 Stat. 241 section 2000a of this titleThe Civil Rights Act of 1964, referred to in subsec. (d)(2)(M), is , , . 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 and Tables.

Pub. L. 94–135Nov. 28, 197589 Stat. 728 section 6101 of this titleThe Age Discrimination Act of 1975, referred to in subsec. (d)(2)(M), is title III of , , , 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 and Tables.

Pub. L. 101–625 Pub. L. 101–625 Pub. L. 101–625 section 1437aaa of this titleThis title, referred to in subsec. (d)(6), means title IV of , 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 , which is classified principally to this part. For complete classification of title IV of to the Code, see Short Title note set out under and Tables.

Amendments

Pub. L. 102–5501992—Subsec. (b)(4) to (14). added par. (4) and redesignated former pars. (4) to (13) as (5) to (14), respectively.