Contract authorization; amounts; use as security for obligations of public housing agency; use of existing structures
Maximum amount of contributions; regulations; criteria for rates of contribution
The Secretary may prescribe regulations fixing the maximum contributions available under different circumstances, giving consideration to cost, location, size, rent-paying ability of prospective tenants, or other factors bearing upon the amounts and periods of assistance needed to achieve and maintain low rentals. Such regulations may provide for rates of contribution based upon development, acquisition, or operation costs, number of dwelling units, number of persons housed, interest charges, or other appropriate factors.
Limitation on aggregate contractual contributions; contracts for preliminary loans; payments of annual contributions; limitations on specific authorities
Scope of contracts for loans or annual contributions
Any contract for loans or annual contributions, or both, entered into by the Secretary with a public housing agency, may cover one or more than one low-income housing project owned by such public housing agency; in the event the contract covers two or more projects, such projects may, for any of the purposes of this chapter and of such contract (including, but not limited to, the determination of the amount of the loan, annual contributions, or payments in lieu of taxes, specified in such contract), be treated collectively as one project.
Local determination of need as prerequisite for contracts for preliminary loans, and contracts for loans or annual contributions; notice
Modification by Secretary of terms of contracts, etc.; limitations; amendment or supersedure of contracts for annual contributions or loans
Subject to the specific limitations or standards in this chapter governing the terms of sales, rentals, leases, loans, contracts for annual contributions, or other agreements, the Secretary may, whenever he deems it necessary or desirable in the fulfillment of the purposes of this chapter, consent to the modification, with respect to rate of interest, time of payment of any installment of principal or interest, security, amount of annual contribution, or any other term, of any contract or agreement of any kind to which the Secretary is a party. When the Secretary finds that it would promote economy or be in the financial interest of the Federal Government or is necessary to assure or maintain the lower income character of the project or projects involved, any contract heretofore or hereafter made for annual contributions, loans, or both, may be amended or superseded by a contract entered into by mutual agreement between the public housing agency and the Secretary. Contracts may not be amended or superseded in a manner which would impair the rights of the holders of any outstanding obligations of the public housing agency involved for which annual contributions have been pledged. Any rule of law contrary to this provision shall be deemed inapplicable.
Pledge of annual contributions as guarantee of payment of obligations issued by public housing agency; exception
In addition to the authority of the Secretary under subsection (a) to pledge annual contributions as security for obligations issued by a public housing agency, the Secretary is authorized to pledge annual contributions as a guarantee of payment by a public housing agency of all principal and interest on obligations issued by it to assist the development or acquisition of the project to which the annual contributions relate, except that no obligation shall be guaranteed under this subsection if the income thereon is exempt from Federal taxation.
Audits
By Secretary and Comptroller General
1
Withholding of amounts for audits under Single Audit Act
The Secretary may, in the sole discretion of the Secretary, arrange for and pay the costs of an audit required under chapter 75 of title 31. In such circumstances, the Secretary may withhold, from assistance otherwise payable to the agency under this chapter, amounts sufficient to pay for the reasonable costs of conducting an acceptable audit, including, when appropriate, the reasonable costs of accounting services necessary to place the agency’s books and records in auditable condition. As agreed to by the Secretary and the Inspector General, the Inspector General may arrange for an audit under this paragraph.
Prohibition on use of funds
None of the funds made available to the Department of Housing and Urban Development to carry out this chapter, which are obligated to State or local governments, public housing agencies, housing finance agencies, or other public or quasi-public housing agencies, shall be used to indemnify contractors or subcontractors of the government or agency against costs associated with judgments of infringement of intellectual property rights.
Sept. 1, 1937, ch. 896Pub. L. 93–383, title II, § 201(a)88 Stat. 656Pub. L. 94–375, § 2(a)90 Stat. 1067Pub. L. 95–24, title I, § 101(a)91 Stat. 55Pub. L. 95–128, title II, § 201(a)91 Stat. 1128Pub. L. 95–557, title II, § 206(a)92 Stat. 2091Pub. L. 95–619, title II, § 251(a)92 Stat. 3235Pub. L. 96–153, title II, § 201(a)93 Stat. 1105Pub. L. 96–399, title II94 Stat. 1624Pub. L. 97–35, title III95 Stat. 398Pub. L. 98–181, title I97 Stat. 1176Pub. L. 100–242, title I101 Stat. 1820Pub. L. 100–358102 Stat. 680Pub. L. 101–625, title IV, § 417(a)104 Stat. 4161Pub. L. 102–550, title I106 Stat. 3681Pub. L. 104–19, title I, § 1002(c)109 Stat. 236Pub. L. 104–330, title V, § 501(b)(2)110 Stat. 4042Pub. L. 105–276, title V112 Stat. 2531(, title I, § 5, as added , , ; amended , (b), , ; , , ; , (b), , ; , (b), , ; , , ; , (b), , ; , §§ 201(a), 210, , , 1636; , §§ 321(a)–(c), 322(c), , , 402; [title II, § 201(b)], , ; , §§ 101, 112(a), (b)(1), 113–115, , , 1823–1825; renumbered title I and amended , §§ 3, 5, , , 681; , title V, §§ 571, 572(2), , , 4235, 4236; , §§ 101, 111(a), title VI, § 624, , , 3687, 3819; , , ; , , ; , §§ 510, 518(a)(1), (b), 522(b)(1), 566, , , 2551, 2564, 2632.)
Editorial Notes
References in Text
oPub. L. 101–625, title II, § 289(b)104 Stat. 4128Section 1437 of this title, referred to in subsec. (c)(6), was repealed by , , .
lPub. L. 105–276, title V, § 522(a)112 Stat. 2564Section 1437 of this title, referred to in subsec. (c)(7)(A)(iii), (B)(iii), was repealed by , , .
Section 1421b of this titlePub. L. 93–383, title II, § 201(a)88 Stat. 653, referred to in subsec. (c)(7)(A)(ix), (B)(ix), was omitted in the general revision of this chapter by , , .
Pub. L. 98–50298 Stat. 2327section 7501 of Title 31section 7501 of Title 31The Single Audit Act, referred to in subsec. (h)(2) heading, probably means the Single Audit Act of 1984, , , , which enacted chapter 75 (§ 7501 et seq.) of Title 31, Money and Finance, and provisions set out as notes under . For complete classification of this Act to the Code, see Short Title of 1984 Amendment note set out under and Tables.
Prior Provisions
act Sept. 1, 1937, ch. 89650 Stat. 890section 1405 of this titlePub. L. 93–383A prior section 5 of , , as amended, enumerated miscellaneous powers and functions of the Authority and was classified to , prior to the general revision of this chapter by .
Amendments
Pub. L. 105–276, § 522(b)(1)section 1437g of this titlel1998—Subsec. (c)(5). , substituted “for use under ” for “for use under section 1437 of this title”.
Pub. L. 105–276, § 518(b)Subsec. (e)(2). , inserted before period at end “; the Secretary shall require that each such agreement shall provide that, notwithstanding any order, judgment, or decree of any court (including any settlement order), before making any amounts that are provided pursuant to any contract for contributions under this subchapter available for use for the development of any housing or other property not previously used as public housing, the public housing agency shall (A) notify the chief executive officer (or other appropriate official) of the unit of general local government in which the public housing for which such amounts are to be so used is located (or to be located) of such use, and (B) pursuant to the request of such unit of general local government, provide such information as may reasonably be requested by such unit of general local government regarding the public housing to be so assisted (except to the extent otherwise prohibited by law)”.
Pub. L. 105–276, § 566Subsec. (h). , added subsec. (h).
Pub. L. 105–276, § 518(a)(1)(A), struck out subsec. (h) which read as follows: “Notwithstanding any other provision of law, a public housing agency may sell a low-income housing project to its lower income tenants, on such terms and conditions as the agency may determine, without affecting the Secretary’s commitment to pay annual contributions with respect to that project, but such contributions shall not exceed the maximum contributions authorized under subsection (a) of this section.”
Pub. L. 105–276, § 518(a)(1)lsection 1437f of this titleSubsec. (i). , redesignated subsec. () as (i) and struck out former subsec. (i) which read as follows: “In entering into contracts for assistance with respect to newly constructed or substantially rehabilitated projects under this section (other than for projects assisted pursuant to ), the Secretary shall require the installation of a passive or active solar energy system in any such project where the Secretary determines that such installation would be cost effective over the estimated life of the system.”
Pub. L. 105–276, § 518(a)(1)(A)Subsecs. (j), (k). , struck out subsecs. (j) and (k), which had: in subsec. (j), placed conditions upon reservation of funds for development of public housing after , and placed limitations on amounts used for redesign, reconstruction, redevelopment, or operational improvement of existing projects, but directed that not less than 5 percent of certain amounts appropriated in fiscal years 1993 and 1994 be reserved for public housing projects designated for elderly or disabled families; and in subsec. (k), prohibited recapture of amounts of public housing development funds reserved to a public housing agency for failure to begin construction or rehabilitation, or to complete acquisition, during 30-month period following date of reservation.
lPub. L. 105–276, § 518(a)(1)(B)lSubsec. (). , redesignated subsec. () as (i).
Pub. L. 105–276, § 510l, added subsec. ().
Pub. L. 104–330, § 501(b)(2)(A)1996—Subsec. (j)(1). , struck out “(other than for Indian families)” after “for public housing” in introductory provisions.
lPub. L. 104–330, § 501(b)(2)(B)lSubsec. (). , struck out subsec. () which read as follows: “The Secretary may not use as a criterion for distributing assistance under this section the progress made by an Indian public housing agency in collecting rents owed by tenants unless—
section 553 of title 5“(1) such criterion is used as 1 of several criteria that are weighted proportionally and is established by regulations issued after public notice and opportunity to comment in accordance with ; or
“(2) the Secretary determines that the Indian public housing agency has demonstrated a pattern of substantial noncompliance with requirements governing the collection of rents.”
Pub. L. 104–19section 1437aaa–3(g) of this title1995—Subsec. (h). struck out at end “Any such sale shall be subject to the restrictions contained in .”
Pub. L. 102–550, § 101(a)1992—Subsec. (c)(6). , inserted at end “The aggregate amount of budget authority that may be obligated for assistance referred to in paragraph (7) is increased (to the extent approved in appropriation Acts) by $14,710,990,520 on , and by $15,328,852,122 on October 1993.”
Pub. L. 102–550, § 101(b)Subsec. (c)(7)(A), (B). , added subpars. (A) and (B) and struck out former subpars. (A) and (B) which directed Secretary to reserve authority to enter into certain obligations aggregating specified amounts using par. (6) budget authority and balances of such authority available in fiscal years 1991 and 1992.
Pub. L. 102–550, § 624(c)(1)Subsec. (j)(1)(D). , which directed the striking of “and” at end, was executed by striking “or” at end to reflect the probable intent of Congress.
Pub. L. 102–550, § 624(c)(3)Subsec. (j)(1)(E). , which directed amendment of subsec. (j)(1) by adding at the end a new subpar. (E), was executed by adding subsec. (E) after subpar. (D) to reflect the probable intent of Congress. Former subpar. (E) redesignated (F).
Pub. L. 102–550, § 624(c)(2)Subsec. (j)(1)(F). , redesignated subpar. (E) as (F).
Pub. L. 102–550, § 624(a)Subsec. (j)(2). , added subpar. (G).
Pub. L. 102–550, § 111(a), amended par. (2) generally. Prior to amendment, par. (2) read as follows: “Notwithstanding any other provision of law, not more than 20 percent of the funds appropriated for development of public housing also may be committed by the Secretary for the substantial redesign, reconstruction, or redevelopment of existing public housing projects or units, which work shall be carried out pursuant to the rules and regulations applicable to the development of public housing.”
Pub. L. 102–550, § 624(b)Subsec. (j)(3). , added par. (3).
Pub. L. 101–625, § 572(2)1990—Subsec. (a)(3). , substituted “low-income housing” for “lower income housing”.
Pub. L. 101–625, § 571(a)Subsec. (c)(6). , inserted at end “The aggregate amount of budget authority that may be obligated for assistance referred to in paragraph (7) is increased (to the extent approved in appropriation Acts) by $16,194,000,000 on , and by $14,709,400,000 on .”
Pub. L. 101–625, § 571(b)Subsec. (c)(7)(A), (B). , amended subpars. (A) and (B) generally, substituting present provisions for provisions directing Secretary to reserve authority to enter into certain obligations aggregating specified amounts using par. (6) budget authority and balances of such authority available in fiscal years 1988 and 1989.
Pub. L. 101–625, § 572(2)Subsecs. (d), (e). , substituted “low-income housing” for “lower income housing” wherever appearing.
Pub. L. 101–625, § 572(2)Subsec. (h). , substituted “low-income housing” for “lower income housing”.
Pub. L. 101–625, § 417(a)section 1437aaa–3(g) of this title, inserted at end “Any such sale shall be subject to the restrictions contained in .”
Pub. L. 100–242, § 112(b)(1)(A)1988—, substituted “Contributions” for “Annual contributions” in section catchline.
Pub. L. 100–242, § 112(a)Subsec. (a). , amended subsec. (a) generally, revising and restating as pars. (1) to (3) provisions formerly contained in a single unnumbered par.
Pub. L. 100–242, § 101(a)Subsec. (c)(6). , inserted sentence at end providing for increases on , and , of aggregate amount of budget authority that may be obligated for specified purposes.
Pub. L. 100–242, § 101(b)section 1437f(b)(1) of this titlesection 1437f(b)(1) of this titleSubsec. (c)(7). , amended par. (7) generally, substituting provisions relating to Secretary’s authority to enter into obligations under this section for fiscal years 1988 and 1989, for provisions relating to Secretary’s authority for fiscal years 1984 and 1985 and substituting provisions whereby amounts available for conversion of project to assistance under and amounts available for assistance under section 1437f for property disposition, if not required for such purpose, shall be used for assistance under , for provisions wherein specific authorities under this paragraph would be subject to adjustments under par. (5) of this subsection.
Pub. L. 100–358, § 3Subsec. (c)(8). , added par. (8).
Pub. L. 100–242, § 112(b)(1)(B)Subsec. (e)(2). , struck out “annual” before “contributions”.
lPub. L. 100–242lSubsecs. (j) to (). , §§ 113–115, added subsecs. (j) to ().
Pub. L. 98–181, § 201(b)(1)section 1439(d) of this title1983—Subsec. (c)(1). , struck out concluding provision requiring the Secretary, in utilizing the additional authority to enter into contracts on and after , to administer the authorized programs to provide assistance, to the maximum extent practicable, consistent with .
Pub. L. 98–181, § 201(b)(2)lSubsec. (c)(2). , redesignated par. (4) as (2), and struck out former par. (2) which from funds made available on , had required at least $100,000,000 be available for section 1437 projects, and from remaining difference limited use of funds to 37.5 and 62.5 per centum for existing section 1437f projects and for newly constructed and substantially rehabilitated units.
Pub. L. 98–181, § 201(b)(2)lSubsec. (c)(3). , redesignated par. (5) as (3), and struck out former par. (3) which from funds made available on , had required at least $75,000,000 be available for section 1437 projects, from remaining difference allocated sums as provided in section 1439(d) for different community and area uses, and from remaining difference required the accommodation of preferences of units of local government based on stated factors.
Pub. L. 98–181, § 201(b)(2)Subsec. (c)(4). , redesignated par. (6) as (4). Former par. (4) redesignated (2).
Pub. L. 98–181, § 201(b)(3)Subsec. (c)(5) to (7). , added pars. (5) to (7). Former pars. (5) and (6) redesignated (3) and (4), respectively.
Pub. L. 97–35, § 322(c)1981—Subsec. (a). , substituted references to lower income for references to low-income wherever appearing.
Pub. L. 97–35, § 321(a)Subsec. (c). –(c), in par. (1) inserted provisions relating to increases on , and amount respecting additional authority as of , added par. (3), and redesignated former pars. (3) to (5) as (4) to (6), respectively.
Pub. L. 97–35, § 322(c)Subsecs. (d) to (f), (h). , substituted references to lower income for references to low-income wherever appearing.
Pub. L. 96–399, § 201(a)1980—Subsec. (c). , redesignated existing provisions as par. (1), among other changes, substituted provisions relating to the discretionary power of the Secretary to enter into contracts for annual contributions for provisions authorizing the Secretary to enter into such contracts, deleted references to contributions for assistance to Indian tribes, and added pars. (2) to (5).
Pub. L. 96–399, § 210Subsec. (i). , added subsec. (i).
Pub. L. 96–153section 1437f of this title1979—Subsec. (c). authorized increase in aggregate contractual contributions by $1,140,661,000 on , and inserted requirements that out of such additional authority not more than $195,053,000 be authorized to be approved in appropriation acts for units assisted under this chapter other than under and that not less than $50,000,000 of the later amount be authorized to be approved for modernization of the units.
Pub. L. 95–6191978—Subsec. (c). authorized the Secretary to enter into annual contribution contracts aggregating not more than $10,000,000 per annum for financing the purchase and installation of energy conserving improvement in existing low-income housing projects which the Secretary determined had the greatest need for such improvements.
Pub. L. 95–557section 5304(a)(4) of this titlesection 5304(a)(4) of this titlesection 1701q of title 12 inserted “and by $1,195,043,000 on ” after “”, “and on and after ” after “” and “Of the additional authority to enter into contracts for annual contributions provided on , and approved in appropriation Acts, the Secretary shall make available not less than $50,000,000 for modernization of low-income housing projects” after “pursuant to ”, and struck out provisions after “only such amounts as may be approved in appropriations Acts” mandating that of the additional authority to enter into contracts provided on , at least $60,000,000 be made available for modernization of low-income housing projects and at least $140,000,000 to assist in financing low-income housing projects for ownership by public housing agencies other than under section 1437f, of which not less than $100,000,000 shall be available only for the purpose of financing the construction or rehabilitation of low-income housing projects, and provision after “plans prepared pursuant to ” mandating that of the additional authority to enter into contracts for annual contributions provided on , not less than $42,500,000 shall be made available for low-income housing projects, not less than $197,139,200 for low-income housing projects permanently financed by loans from State housing finance or State development agencies, and not less than $120,000,000 for low-income housing projects permanently financed by loans pursuant to .
Pub. L. 95–128section 1701q of title 121977—Subsec. (c). authorized increase in aggregate contractual contributions by $1,159,995,000 on , and required the Secretary to make available therefrom minimum amounts of $42,500,000 for modernization of low-income housing projects, $197,139,200 for such projects financed by loans from State housing finance or State development agencies, and $120,000,000 for such projects financed by loans pursuant to .
Pub. L. 95–24 substituted “and by $1,228,050,000 on ” for “and by $850,000,000 on ”.
Pub. L. 94–3751976—Subsec. (c). substituted “$1,524,000,000 per annum, which limit shall be increased by $965,000,000 on , by $662,300,000 on , and by $850,000,000 on , except that the additional authority to enter into contracts for annual contributions provided on or after , shall be effective only in such amounts as may be approved in appropriation Acts” for “$1,199,250,000 per annum, which limit shall be increased by $225,000,000 on , by $150,000,000 on , by $400,000,000 on , and by $965,000,000 on ”, provision requiring the Secretary make available a total of at least $200,000,000 for modernization and financing of low-income housing projects under the additional authority to enter into contracts for annual contributions provided on , for provision which required the Secretary to enter into contracts for annual contributions of at least $150,000,000 to assist in financing the development or acquisition cost of low-income housing projects, inserted “and by not less than $17,000,000 per annum on ,” after “not less than $15,000,000 per annum, on ”, and struck out “to the amounts of contracts for annual contributions required to be entered into by the Secretary under the second sentence of this subsection” after “In addition”.
Statutory Notes and Related Subsidiaries
Effective Date of 1998 Amendment
Pub. L. 105–276section 503 of Pub. L. 105–276section 1437 of this titleAmendment by title V of effective and applicable beginning upon , except as otherwise provided, with provision that Secretary may implement amendment before such date, except to extent that such amendment provides otherwise, and with savings provision, see , set out as a note under .
Effective Date of 1996 Amendment
Pub. L. 104–330section 107 of Pub. L. 104–330section 4101 of Title 25Amendment by effective , except as otherwise expressly provided, see , set out as an Effective Date note under , Indians.
Effective Date of 1995 Amendment
Pub. L. 104–19, title I, § 1002(d)109 Stat. 236Pub. L. 104–134, title I, § 101(e) [title II, § 201(b)(1)]110 Stat. 1321–257Pub. L. 104–140, § 1(a)110 Stat. 1327Pub. L. 104–204, title II, § 201(b)110 Stat. 2892Pub. L. 105–65, title II, § 201(a)111 Stat. 1364, , , as amended by , , , 1321–278; renumbered title I, , , ; , , ; , , , provided that: Subsections (a), (b), and (c) [amending this section and sections 1437p and 1437aaa–3 of this title] shall be effective for applications for the demolition, disposition, or conversion to homeownership of public housing approved by the Secretary, and other consolidation and relocation activities of public housing agencies undertaken, on, before, or after and on or before .”
Effective Date of 1992 Amendment
Pub. L. 102–550section 13642 of this titleAmendment by subtitles B through F of title VI [§§ 621–685] of applicable upon expiration of 6-month period beginning , except as otherwise provided, see .
Effective Date of 1990 Amendment
Pub. L. 101–625, title IV, § 417(b)104 Stat. 4161
Effective Date of 1988 Amendment
Pub. L. 100–358section 6 of Pub. L. 100–358section 1437a of this titleFor date on which Secretary of Housing and Urban Development may carry out programs to provide lower income housing on Indian reservations and other Indian areas only in accordance with amendment by , see , set out as a note under .
Effective Date of 1981 Amendment
Pub. L. 97–35section 371 of Pub. L. 97–35section 3701 of Title 12Amendment by effective , see , set out as an Effective Date note under , Banks and Banking.
Effective Date of 1978 Amendment
Pub. L. 95–557, title II, § 206(h)92 Stat. 2093
Effective Date of 1976 Amendment
Pub. L. 94–375, § 2(b)(1)90 Stat. 1067, (2), , , provided that the amendment of subsec. (c), which required the Secretary to make available a total of $200,000,000 for modernization and financing of low-income housing and which struck out reference to the amount of contracts the Secretary was required to enter into under the second sentence of this subsection, is effective .
Effective Date
section 201(b) of Pub. L. 93–383section 1437 of this titleSection effective on such date or dates as the Secretary of Housing and Urban Development shall prescribe, but not later than eighteen months after , except that all of the provisions of this section shall become effective on the same date, see , set out as a note under .
Regulations
Pub. L. 102–550, title I, § 111(c)106 Stat. 3689
Inapplicability of Certain 1992 Amendments to Indian Public Housing
section 624 of Pub. L. 102–550section 626 of Pub. L. 102–550section 1437a of this titleAmendment by not applicable with respect to lower income housing developed or operated pursuant to contract between Secretary of Housing and Urban Development and Indian housing authority, see , set out as a note under .
Increase in Budget Authority for Certificate and Voucher Programs for Disaster Relief
Pub. L. 101–625, title IX, § 931104 Stat. 4403Pub. L. 105–276, title V, § 550(c)112 Stat. 2609
Increase in Budget Authority for Moderate Rehabilitation Program for Disaster Relief
Pub. L. 101–625, title IX, § 932104 Stat. 4403