42 USC 12756 - Monitoring of compliance

Collapse to view only § 12756. Monitoring of compliance

§ 12741. Authority
§ 12742. Eligible uses of investment
§ 12743. Development of model programs
§ 12744. Income targeting
§ 12745. Qualification as affordable housing
§ 12746. Participation by States and local governments
§ 12747. Allocation of resources
§ 12748. HOME Investment Trust Funds
§ 12749. Repayment of investment
§ 12750. Matching requirements
§ 12751. Private-public partnership
§ 12752. Distribution of assistance
§ 12753. Program enforcement and penalties for noncompliance
§ 12754. Limitation on jurisdictions under court order
§ 12755. Tenant and participant protections
§ 12756. Monitoring of compliance
§ 12757. Revitalizing empty structures into desirable environments

§ 12741. Authority

The Secretary is authorized to make funds available to participating jurisdictions for investment to increase the number of families served with decent, safe, sanitary, and affordable housing and expand the long-term supply of affordable housing in accordance with provisions of this part.

(Pub. L. 101–625, title II, § 211, Nov. 28, 1990, 104 Stat. 4096.)

§ 12742. Eligible uses of investment

(a) Housing uses

(1) In general

(2) Limitation

(3) Tenant-based rental assistance

(A) In generalA participating jurisdiction may use funds provided under this part for tenant-based rental assistance only if—

(i) the jurisdiction certifies that the use of funds under this part for tenant-based rental assistance is an essential element of the jurisdiction’s annual housing strategy for expanding the supply, affordability, and availability of decent, safe, sanitary, and affordable housing, and specifies the local market conditions that lead to the choice of this option; and

(ii) the tenant-based rental assistance is provided in accordance with written tenant selection policies and criteria that are consistent with the purposes of providing housing to very low- and low-income families and are reasonably related to preference rules established under section 1437d(c)(4)(A) of this title.

(B) Fair share not affected

(D) Use of section 1437f assistance

(E) Security deposit assistance

(4) Infrastructure improvements in nonentitlement areas

(A) In generalA participating jurisdiction may use funds provided under this part for infrastructure improvements, including the installation or repair of water and sewer lines, sidewalks, roads, and utility connections if—

(i) such participating jurisdiction does not receive assistance under title I of the Housing and Community Development Act of 1974 (42 U.S.C. 5310); 1

1 So in original. Probably should be “(42 U.S.C. 5301 et seq.);”.

and

(ii) such improvements are directly related to, and located within or immediately adjacent to—(I) housing assisted under this part; or(II) housing assisted under section 42 of title 26.

(B) Application of labor standards

(5) Lead-based paint hazards

(b) Investments

(d) Prohibited usesFunds made available under this part may not be used to—

(1) defray any administrative cost of a participating jurisdiction that exceed the amount specified under subsection (c),

(2) provide tenant-based rental assistance for the special purposes of the existing section 8 [] program, including replacing public housing that is demolished or disposed of, preserving federally assisted housing, assisting in the disposition of housing owned or held by the Secretary, preventing displacement from rental rehabilitation projects, or extending or renewing tenant-based assistance under

(3) provide non-Federal matching contributions required under any other Federal program,

(4) provide assistance authorized under section 1437g of this title,

(5) carry out activities authorized under section 1437g(d)(1) of this title, or

(6) provide assistance to eligible low-income housing under the Emergency Low Income Housing Preservation Act of 1987 or the Low-Income Housing Preservation and Resident Homeownership Act of 1990 [12 U.S.C. 4101 et seq.].

(e) Cost limits

(1) In general

(2) CriteriaIn calculating per unit limits, the Secretary shall take into account that assistance under this subchapter is intended to—

(A) provide nonluxury housing with suitable amenities;

(B) operate effectively in all jurisdictions;

(D) reflect the costs associated with meeting the special needs of tenants or homeowners that the housing is designed to serve.

(3) Consultation

(f) Certification of compliance

(g) Limitation on operating assistance

(Pub. L. 101–625, title II, § 212, Nov. 28, 1990, 104 Stat. 4097; Pub. L. 102–550, title II, §§ 203(a), 204–207(b), (d), title X, § 1012(e), Oct. 28, 1992, 106 Stat. 3752–3754, 3905; Pub. L. 105–276, title V, § 522(b)(5), Oct. 21, 1998, 112 Stat. 2565; Pub. L. 119–101, title V, § 501(d), (e)(1), (f), (v)(7), July 11, 2026, 140 Stat. 907, 908, 917.)

§ 12743. Development of model programs

(a) In general

The Secretary shall—

(1) in cooperation with participating jurisdictions, government-sponsored mortgage finance corporations, nonprofit organizations, the private sector, and other appropriate parties, develop, test, evaluate, refine, and, as necessary, replace a selection of model programs designed to carry out the purposes of this subchapter;

(2) make available to participating jurisdictions alternative model programs, which shall include suggested guidelines, procedures, forms, legal documents and such other elements as the Secretary determines to be appropriate;

(3) assure, insofar as is feasible, the availability of an appropriate variety of model programs designed for local market conditions, housing problems, project characteristics, and managerial capacities as they differ among participating jurisdictions;

(4) negotiate and enter into agreements with agencies of the Federal Government, participating jurisdictions, private financial institutions, government-sponsored mortgage finance corporations, nonprofit organizations, and other entities to provide such services, products, or financing as may be required for the implementation of a model program;

(5) provide detailed information on model programs as requested by participating jurisdictions, private financial institutions, developers, nonprofit organizations, and other interested parties; and

(6) encourage the use of such model programs to achieve efficiency, economies of scale, and effectiveness in the investment of funds made available under this part through third-party training, printed materials, and such other means of support as the Secretary determines will achieve the purpose of this subchapter.

(b) Adoption of programs

(Pub. L. 101–625, title II, § 213, Nov. 28, 1990, 104 Stat. 4100.)

§ 12744. Income targetingEach participating jurisdiction shall invest funds made available under this part within each fiscal year so that—

(1) with respect to rental assistance and rental units—

(A) not less than 90 percent of (i) the families receiving such rental assistance are families whose incomes do not exceed 60 percent of the median family income for the area, as determined by the Secretary with adjustments for smaller and larger families, (except that the Secretary may establish income ceilings higher or lower than 60 percent of the median for the area on the basis of the Secretary’s findings that such variations are necessary because of prevailing levels of construction cost or fair market rent, or unusually high or low family income) at the time of occupancy or at the time funds are invested, whichever is later, or (ii) the dwelling units assisted with such funds are occupied by families having such incomes; and

(B) the remainder of (i) the families receiving such rental assistance are households that qualify as low-income families (other than families described in subparagraph (A)) at the time of occupancy or at the time funds are invested, whichever is later, or (ii) the dwelling units assisted with such funds are occupied by such households;

(2) with respect to homeownership assistance, 100 percent of such funds are invested with respect to dwelling units that are occupied by families with a household income that does not exceed 100 percent of the median family income of the area, as determined by the Secretary; and

(3) all such funds are invested with respect to housing that qualifies as affordable housing under section 12745 of this title.

(Pub. L. 101–625, title II, § 214, Nov. 28, 1990, 104 Stat. 4101; Pub. L. 103–233, title II, § 202, Apr. 11, 1994, 108 Stat. 364; Pub. L. 105–276, title V, § 599B(a), Oct. 21, 1998, 112 Stat. 2660; Pub. L. 119–101, title V, § 501(c)(1), July 11, 2026, 140 Stat. 907.)

§ 12745. Qualification as affordable housing

(a) Rental housing

(1) QualificationHousing that is for rental shall qualify as affordable housing under this subchapter only if the housing—

(A) bears rents not greater than the lesser of (i) the existing fair market rent for comparable units in the area as established by the Secretary under section 1437f of this title, or (ii) a rent that does not exceed 30 percent of the adjusted income of a family whose income equals 65 percent of the median income for the area, as determined by the Secretary, with adjustment for number of bedrooms in the unit, except that the Secretary may establish income ceilings higher or lower than 65 percent of the median for the area on the basis of the Secretary’s findings that such variations are necessary because of prevailing levels of construction costs or fair market rents, or unusually high or low family incomes;

(B) has not less than 20 percent of the units (i) occupied by very low-income families who pay as a contribution toward rent (excluding any Federal or State rental subsidy provided on behalf of the family) not more than 30 percent of the family’s monthly adjusted income as determined by the Secretary, or (ii) occupied by very low-income families and bearing rents not greater than the gross rent for rent-restricted residential units as determined under section 42(g)(2) of title 26;

(D) is not refused for leasing to a holder of a voucher or certificate of eligibility under section 1437f of this title because of the status of the prospective tenant as a holder of such voucher or certificate of eligibility;

(E) will remain affordable, according to binding commitments satisfactory to the Secretary, for the remaining useful life of the property, as determined by the Secretary, without regard to the term of the mortgage or to transfer of ownership, or for such other period that the Secretary determines is the longest feasible period of time consistent with sound economics and the purposes of this Act, except—

(i) upon a foreclosure by a lender (or upon other transfer in lieu of foreclosure) if such action—(I) recognizes any contractual or legal rights of public agencies, nonprofit sponsors, or others to take actions that would avoid termination of low-income affordability in the case of foreclosure or transfer in lieu of foreclosure; and(II) is not for the purpose of avoiding low-income affordability restrictions, as determined by the Secretary; or

(ii) where existing affordable housing is no longer financially viable due to unforeseen acts or occurrences beyond the reasonable contemplation or control of the participating jurisdiction in which the affordable housing is located or the owner of the affordable housing that significantly impact the financial or physical condition of the affordable housing, as determined by the Secretary; and

(F) if newly constructed, meets the energy efficiency standards promulgated by the Secretary in accordance with section 12709 of this title.

(2) Adjustment of qualifying rent

(3) Increases in tenant income

(4) Mixed-income project

(5) Mixed-use project

(6) Waiver of qualifying rent

(A) In generalFor the purpose of providing affordable housing appropriate for families described in subparagraph (B), the Secretary may, upon the application of the project owner, waive the applicability of subparagraph (A) of paragraph (1) with respect to a dwelling unit if—

(i) the unit is occupied by such a family, on whose behalf tenant-based assistance is provided under section 1437f of this title;

(ii) the rent for the unit is not greater than the existing fair market rent for comparable units in the area, as established by the Secretary under section 1437f of this title; and

(iii) the Secretary determines that the waiver, together with waivers under this paragraph for other dwelling units in the project, will result in the use of amounts described in clause (iii) 1

1 So in original.

in an effective manner that will improve the provision of affordable housing for such families.

(B) Eligible families

(7) Qualification exceptionNotwithstanding paragraph (1)(A), a rental unit shall be considered to qualify as affordable housing under this subchapter if—

(A) the unit is occupied by a tenant receiving tenant-based rental assistance under section 1437f of this title;

(B) the contribution of the tenant toward rent does not exceed the amount permitted under the assistance described in subparagraph (A); and

(C) the total rent for the unit does not exceed the amount approved by the public housing agency administering the assistance described in subparagraph (A).

(b) Homeownership

(1) QualificationHousing that is for home-ownership shall qualify as affordable housing under this subchapter only if the housing—

(A) has an initial purchase price 2

2 See 2026 Amendment note below.

that does not exceed 110 percent of the median purchase price 2 for the area, as determined by the Secretary with such adjustments for differences in structure, including whether the housing is single-family or multifamily, and for new and old housing as the Secretary determines to be appropriate;

(B) is the principal residence of an owner with a family income that does not exceed 100 percent of the median family income of the area as determined by the Secretary with adjustments for smaller and larger families—

(i) in the case of a contract to purchase existing housing, at the time of purchase;

(ii) in the case of a lease-purchase agreement for existing housing or for housing to be constructed, at the time the agreement is signed; or

(iii) in the case of a contract to purchase housing to be constructed, at the time the contract is signed;

(C) is subject to resale restrictions that are established by the participating jurisdiction and determined by the Secretary to be appropriate to—

(i) allow for subsequent purchase of the property only by persons who meet the qualifications specified under paragraph (2),3

3 So in original. Probably should be “subparagraph (B),”.

at a price which will—(I) provide the owner with a fair return on investment, including any improvements, and(II) ensure that the housing will remain affordable to a reasonable range of home-buyers with a household income that does not exceed 100 percent of the median family income of the area, as determined by the Secretary with adjustments for smaller and larger families;

(ii) recapture the investment provided under this subchapter in order to assist other persons in accordance with the requirements of this subchapter, except where there are no net proceeds or where the net proceeds are insufficient to repay the full amount of the assistance; or

(iii) maintain long-term affordability through a shared equity ownership model, a community land trust, a limited equity cooperative, a community development corporation, or other mechanism approved by the Secretary, that preserves affordability for future eligible home-buyers and ensures compliance with the purposes of this subchapter, including through the use of purchase options, rights of first refusal, or other preemptive rights to purchase housing;

(D) if newly constructed, meets the energy efficiency standards promulgated by the Secretary in accordance with section 12709 of this title; and

(E) is subject to restrictions that are established by the participating jurisdiction and determined by the Secretary to be appropriate, including with respect to the useful life of the property, to—

(i) require that any subsequent purchase of the property be—(I) only by a person who meets the qualifications specified under subparagraph (B); and(II) at a price that is determined by a formula or method established by the participating jurisdiction that provides the owner with a reasonable return on investment, which may include a percentage of the cost of any improvements; or

(2) Purchase by community land trust or cooperative housing corporationNotwithstanding subparagraph (C)(i) of paragraph (1) and under terms determined by the Secretary, the Secretary may permit a participating jurisdiction to allow a community land trust, housing cooperative, or a community development corporation that used assistance provided under this part for the development of housing that meets the criteria under paragraph (1), to acquire the housing—

(A) in accordance with the terms of the preemptive purchase option, lease, covenant on the land, or other similar legal instrument of the community land trust or housing cooperative when the terms and rights in the preemptive purchase option, lease, covenant, or legal instrument are and remain subject to the requirements of this subchapter;

(B) when the purchase is for—

(i) the purpose of—(I) entering into the chain of title;(II) enabling a purchase by a person who meets the qualifications specified under paragraph (1)(B) and is on a waitlist maintained by the community land trust or housing cooperative, subject to enforcement by the participating jurisdiction of all applicable requirements of this subchapter, as determined by the Secretary;(III) performing necessary rehabilitation and improvements; or(IV) adding a subsidy to preserve affordability, which may be from Federal or non-Federal sources; or

(ii) another purpose determined appropriate by the Secretary; and

(C) if, within a reasonable period of time after the applicable purpose under subparagraph (B) of this paragraph is fulfilled, as determined by the Secretary, the housing is then sold to a person who meets the qualifications specified under paragraph (1)(B).

(1) Military membersA participating jurisdiction, in accordance with terms established by the Secretary, may suspend or waive the income qualifications described in subsection (b)(1)(B) with respect to housing that otherwise meets the criteria described in subsection (b)(1) if the owner of the housing—

(A) is a member of a regular component of the armed forces or a member of the National Guard on full-time National Guard duty, active Guard and Reserve duty, or inactive-duty training (as those terms are defined in section 101 of title 10); and

(B) has received—

(i) temporary duty orders to deploy with a military unit or military orders to deploy as an individual acting in support of a military operation, to a location that is not within a reasonable distance from the housing, as determined by the Secretary, for a period of not less than 90 days; or

(ii) orders for a permanent change of station.

(2) Heirs and beneficiaries of deceased ownersHousing that meets the criteria described in subsection (b)(1)(C) prior to the death of an owner of such housing shall continue to qualify as affordable housing under this subchapter if—

(A) the housing is the principal residence of an heir or beneficiary of the deceased owner, as defined by the Secretary; and

(B) the heir or beneficiary, in accordance with terms established by the Secretary, assumes the duties and obligations of the deceased owner with respect to funds provided under this subchapter.

(Pub. L. 101–625, title II, § 215, Nov. 28, 1990, 104 Stat. 4101; Pub. L. 102–550, title II, §§ 208, 209, Oct. 28, 1992, 106 Stat. 3754; Pub. L. 103–233, title II, § 203, Apr. 11, 1994, 108 Stat. 364; Pub. L. 105–276, title V, § 599B(b), Oct. 21, 1998, 112 Stat. 2660; Pub. L. 106–569, title IX, § 904, Dec. 27, 2000, 114 Stat. 3027; Pub. L. 119–101, title V, § 501(g), (h), (p), (v)(8), July 11, 2026, 140 Stat. 908, 913, 917.)

§ 12746. Participation by States and local governmentsThe Secretary shall designate a State or unit of general local government to be a participating jurisdiction when it complies with procedures that the Secretary shall establish by regulation, which procedures shall only provide for the following:

(1) Allocation

(2) ConsortiaA consortium of geographically contiguous units of general local government shall be deemed to be a unit of general local government for purposes of this subchapter if the Secretary determines that the consortium—

(A) has sufficient authority and administrative capability to carry out the purposes of this subchapter on behalf of its member jurisdictions, and

(B) will, according to a written certification by the State (or States, if the consortium includes jurisdictions in more than one State), direct its activities to alleviation of housing problems within the State or States.

(3) Eligibility

(A) Except as provided in paragraph (10), a jurisdiction receiving a formula allocation under section 12747 of this title shall be eligible to become a participating jurisdiction if its formula allocation is $750,000 or greater, or if the Secretary finds that—

(i) the jurisdiction has a local housing authority and has demonstrated a capacity to carry out provisions of this part, and

(ii) the State has authorized the Secretary to transfer to the jurisdiction a portion of the State’s allocation that is equal to or greater than the difference between the jurisdiction’s formula allocation and $750,000, or the State or jurisdiction has made available from the State’s or jurisdiction’s own sources an equal amount for use by the jurisdiction in conformance with the provisions of this part.

(B) If a jurisdiction has met the requirements of subparagraph (A), the jurisdiction’s formula allocation for a fiscal year shall subsequently be deemed to equal the sum of the jurisdiction’s allocation under section 12747(a)(1) of this title and the amount made available to the jurisdiction under subparagraph (A)(ii).

(4) Notification

(5) Submission of strategy

(6) ReallocationIf the Secretary determines that a jurisdiction has failed to meet the requirements of the previous 3 paragraphs or if the Secretary, after providing for amendments and resubmissions in accordance with section 12705(c)(3) of this title, disapproves the jurisdiction’s comprehensive housing affordability strategy, the Secretary shall reallocate any funds reserved for the jurisdiction as follows:

(A) StateIf a State has failed to meet the requirements, the Secretary shall—

(i) make any funds reserved for the State available by direct reallocation among applications submitted by units of general local government within the State or consortia that include units of general local government within the State, insofar as approvable applications meeting the selection criteria under section 12747(c) of this title are received within 12 months after the funds become available for the direct reallocation, and

(ii) reallocate the remainder by formula in accordance with section 12747(b) of this title.

(B) Local

(C) Direct reallocationIf a unit of general local government has failed to meet the requirements and is located in a State that is not a participating jurisdiction, the Secretary shall—

(i) make any funds reserved for the locality available for use within the State by direct reallocation among units of general local government and community housing development organizations, insofar as approvable applications meeting the selection criteria under section 12747(c) of this title are received within 12 months after the funds become available for the direct reallocation with priority going to applications for affordable housing within the locality, and

(ii) reallocate the remainder in accordance with section 12747(b) of this title.

(D) Certain jurisdictions deemed to be participating jurisdictions

(7) Designation

(8) Continuous designation

(9) RevocationThe Secretary may revoke a jurisdiction’s designation as a participating jurisdiction if—

(A) the Secretary finds, after reasonable notice and opportunity for hearing, that the jurisdiction is unwilling or unable to carry out the provisions of this subchapter, or

(B) the jurisdiction’s allocation falls below $750,000 for 3 consecutive years, below $625,000 for 2 consecutive years, or the jurisdiction does not receive a formula allocation of $500,000 or more in any 1 year, except as provided in paragraph (10).

If a jurisdiction’s designation as a participating jurisdiction is revoked, any remaining line of credit in the jurisdiction’s HOME Investment Trust Fund established under section 12748 of this title shall be reallocated in accordance with paragraph (6) of this section.

(10) Threshold reductionIf the amount appropriated pursuant to section 12724 of this title for any fiscal year is less than $1,500,000,000, then this section shall be applied during that year—

(A) by substituting “$500,000” for “$750,000” both places it appears in paragraph (3); and

(B) by substituting “$500,000”, “$410,000”, and “$335,000” for “$750,000”, “$625,000”, and “$500,000”, respectively, where they appear in paragraph (9).

(Pub. L. 101–625, title II, § 216, Nov. 28, 1990, 104 Stat. 4103; Pub. L. 102–550, title II, § 202(a), Oct. 28, 1992, 106 Stat. 3751.)

§ 12747. Allocation of resources

(a) In general

(1) States and units of general local government

(2) Insular areas

(b) Formula allocation

(1) In general

(A) Basic formula

(B) Source of data

(D) Weights

(E) Adjustments

(F) Consultation

(2) Minimum State allocation

(A) In general

(B) Increased minimum allocation

(3) Minimum local allocation

(c) Criteria for direct reallocationThe Secretary shall establish objective criteria for making direct reallocations to any participating jurisdiction and other eligible entities. A jurisdiction shall be eligible for a direct reallocation under this subsection only if the jurisdiction, in a form acceptable to the Secretary, submits an application that demonstrates to the satisfaction of the Secretary that the jurisdiction is engaged, or has made good faith efforts to engage, in cooperative efforts between the State and appropriate participating jurisdictions within the State to develop, coordinate, and implement housing strategies under this subchapter. The Secretary shall by regulation establish objective selection criteria for such direct reallocations, which criteria shall take into account—

(1) the applicant’s demonstrated commitment to expand the supply of affordable rental housing, including units developed by public housing agencies, as indicated by the additional number of units of affordable housing made available through production or rehabilitation within the previous 2 years, making adjustment for regional variations in construction and rehabilitation costs and giving special consideration to the number of additional units made available under this subchapter through production or rehabilitation, including units developed by public housing agencies, in relation to the amounts made available under this program;

(2) the applicant’s actions that—

(A) direct funds made available under this part to benefit very low-income families, with a range of incomes, in amounts that exceed the income targeting requirements of section 12744 of this title, with extra consideration given for activities that expand the supply of affordable housing for very low-income families whose incomes do not exceed 30 percent of the median family income for the area, as determined by the Secretary;

(B) apply the tenant selection preference categories applicable under section 1437f of this title to the selection of tenants for housing assisted under this part;

(D) stimulate a high degree of investment and participation in development by the private sector, including nonprofit organizations; and

(3) the degree to which the applicant is pursuing policies that—

(A) make existing housing more affordable;

(B) remove or ameliorate any negative effects that public policies identified by the applicant pursuant to section 12705(b)(4) of this title may have on the cost of housing or the incentives to develop, maintain, or improve affordable housing in the jurisdiction;

(C) preserve the affordability of privately-owned housing that is vulnerable to conversion, demolition, disinvestment, or abandonment;

(D) increase the supply of housing that is affordable to very low-income and low-income persons, particularly in areas that are accessible to expanding job opportunities; and

(E) remedy the effects of discrimination and improve housing opportunities for disadvantaged minorities.

(d) Reallocations

(1) In general

(2) Commitments

(3) Limitations

(A) Removal of participating jurisdictions from reallocation

(B) Reallocation to same type of entity

(4) Reallocation not available for certain jurisdictions

(Pub. L. 101–625, title II, § 217, Nov. 28, 1990, 104 Stat. 4105; Pub. L. 102–229, title I, Dec. 12, 1991, 105 Stat. 1709; Pub. L. 102–230, § 1, Dec. 12, 1991, 105 Stat. 1720; Pub. L. 102–273, § 1, Apr. 21, 1992, 106 Stat. 113; Pub. L. 102–389, title II, Oct. 6, 1992, 106 Stat. 1581; Pub. L. 102–550, title II, §§ 202(b), 203(b), 211(a)(2), Oct. 28, 1992, 106 Stat. 3751, 3752, 3756; Pub. L. 104–330, title V, § 505(a)(1), Oct. 26, 1996, 110 Stat. 4044; Pub. L. 105–65, title II, § 214, Oct. 27, 1997, 111 Stat. 1366; Pub. L. 119–101, title V, § 501(o), (t)(2), (u), (v)(2), (9), July 11, 2026, 140 Stat. 913, 915, 916, 917.)

§ 12748. HOME Investment Trust Funds

(a) Establishment

(b) Line of credit

The Secretary shall establish a line of credit in the HOME Investment Trust Fund of each participating jurisdiction, which line of credit shall include—

(1) funds allocated or reallocated to the participating jurisdiction under section 12747 of this title, and

(2) any payment or repayment made pursuant to section 12749 of this title.

A participating jurisdiction’s line of credit shall be reduced by—

(1) funds drawn from the HOME Investment Trust Fund by the participating jurisdiction,

(2) funds expiring under subsection (g), and

(3) any penalties assessed by the Secretary under section 12754 1

1 So in original. Probably should be section “12753”.

of this title.

(d) Certification

(e) Investment within 15 days

(f) No interest or fees

(g) Administrative provision

(Pub. L. 101–625, title II, § 218, Nov. 28, 1990, 104 Stat. 4109; Pub. L. 102–550, title II, §§ 203(c), 221, Oct. 28, 1992, 106 Stat. 3752, 3762; Pub. L. 119–101, title V, § 501(i), July 11, 2026, 140 Stat. 911.)

§ 12749. Repayment of investment

(a) In general

(b) Assurance of repayment

(Pub. L. 101–625, title II, § 219, Nov. 28, 1990, 104 Stat. 4110.)

§ 12750. Matching requirements

(a) Contribution

(b) RecognitionA contribution shall be recognized for purposes of subsection (a) only if it—

(1) is made with respect to housing that qualifies as affordable housing under section 12745 of this title; or

(2) is made with respect to any portion of a project not less than 50 percent of the units of which qualify as affordable housing under section 12745 of this title.

(1) 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;

(2) the value of taxes, fees, or other charges that are normally and customarily imposed but are waived, foregone, or deferred in a manner that achieves affordability of housing assisted under this subchapter;

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

(4) the value of investment in on-site and off-site infrastructure directly required for affordable housing assisted under this subchapter;

(5) up to—

(A) 50 percent of proceeds from bond financing validly issued by a State or local government, agency or instrumentality thereof, or political subdivision thereof, and repayable with revenues derived from a multifamily affordable housing project financed, and

(B) 25 percent of proceeds from bond financing validly issued by a State or local government, agency or instrumentality thereof, or political subdivision thereof, and repayable with revenues derived from a single-family project financed,

but not more than 25 percent of the contribution required under subsection (a) may be derived from these sources;

(6) the reasonable value of any site-preparation and construction materials and any donated or voluntary labor in connection with the site-preparation for, or construction or rehabilitation of, affordable housing; and

(7) such other contributions to affordable housing as the Secretary considers appropriate.

(d) Reduction of requirement

(1) In generalThe Secretary shall reduce the matching requirement under subsection (a) with respect to any funds drawn from a jurisdiction’s HOME Investment Trust Fund Account during a fiscal year by—

(A) 50 percent for a jurisdiction that certifies that it is in fiscal distress; and

(B) 100 percent for a jurisdiction that certifies that it is in severe fiscal distress.

(2) DefinitionsFor purposes of this section—

(A) “fiscal distress” means a jurisdiction other than a State that satisfies 1 of the distress criteria set forth in paragraph (3); and

(B) “severe fiscal distress” means a jurisdiction other than a State that satisfies both of the distress criteria set forth in paragraph (3).

(3) Distress criteriaFor purposes of a jurisdiction other than a State certifying that it is distressed, the following criteria shall apply:

(A) Poverty rate

(B) Per capita income

(4) States

(5) Waiver in disaster areas

(Pub. L. 101–625, title II, § 220, Nov. 28, 1990, 104 Stat. 4111; Pub. L. 102–550, title II, §§ 207(c), 210(a)–(c), Oct. 28, 1992, 106 Stat. 3753, 3755; Pub. L. 103–233, title II, § 204, Apr. 11, 1994, 108 Stat. 364; Pub. L. 119–101, title V, § 501(t)(1), (v)(10), July 11, 2026, 140 Stat. 915, 918.)

§ 12751. Private-public partnership

Each participating jurisdiction shall make all reasonable efforts, consistent with the purposes of this subchapter, to maximize participation by the private sector, including nonprofit organizations and for-profit entities, in the implementation of the jurisdiction’s housing strategy, including participation in the financing, development, rehabilitation and management of affordable housing. Nothing in the previous sentence shall preclude public housing authorities from fully participating in the implementation of a jurisdiction’s housing strategy.

(Pub. L. 101–625, title II, § 221, Nov. 28, 1990, 104 Stat. 4112.)

§ 12752. Distribution of assistance

(a) Local

(b) State

(Pub. L. 101–625, title II, § 222, Nov. 28, 1990, 104 Stat. 4112.)

§ 12753. Program enforcement and penalties for noncompliance

If the Secretary finds after reasonable notice and opportunity for hearing that a participating jurisdiction has failed to comply substantially with any provision of this part, including any provision applicable throughout the period required by section 12745(a)(1)(E) of this title and applicable regulations, and until the Secretary is satisfied that there is no longer any such failure to comply, the Secretary shall reduce the line of credit in the participating jurisdiction’s HOME Investment Trust Fund by the amount of any expenditures that were not in accordance with the requirements of this subchapter, and the Secretary may—

(1) prevent withdrawals from the participating jurisdiction’s HOME Investment Trust Fund for activities affected by such failure to comply;

(2) restrict the participating jurisdiction’s activities under this subchapter to activities that conform to one or more model programs made available under section 12743 of this title;

(3) remove the participating jurisdiction from participation in allocations or reallocations of funds made available under this part; or

(4) reduce payments to the participating jurisdiction under this part by an amount equal to the amount of such payments that were not expended by the participating jurisdiction in accordance with this subchapter.

(Pub. L. 101–625, title II, § 223, Nov. 28, 1990, 104 Stat. 4112; Pub. L. 119–101, title V, § 501(t)(4), July 11, 2026, 140 Stat. 916.)

§ 12754. Limitation on jurisdictions under court order

(a) In general

Notwithstanding any other provision of this Act, the Secretary shall ensure that funds provided under this part are not employed to carry out housing remedies or to pay fines, penalties, or costs associated with an action in which—

(1) a participating jurisdiction has been adjudicated, by a Federal, State, or local court, to be in violation of title VI of the Civil Rights Act of 1964 [42 U.S.C. 2000d et seq.], the Fair Housing Act [42 U.S.C. 3601 et seq.], or any other Federal, State, or local law promoting fair housing or prohibiting discrimination, or

(2) a settlement has been entered into in any case where claims of such violations have been asserted against a participating jurisdiction, except to the extent permitted by subsection (b).

(b) Remedial use of funds permitted

(Pub. L. 101–625, title II, § 224, Nov. 28, 1990, 104 Stat. 4113.)

§ 12755. Tenant and participant protections

(a) Lease

(b) Termination of tenancy

(d) Tenant selection

The owner of rental housing assisted under this subchapter shall adopt written tenant selection policies and criteria that—

(1) are consistent with the purpose of providing housing for very low-income and low-income families,

(2) are reasonably related to program eligibility and the applicant’s ability to perform the obligations of the lease,

(3) give reasonable consideration to the housing needs of families that would have a preference under section 1437d(c)(4)(A) of this title, and

(4) provide for (A) the selection of tenants from a written waiting list in the chronological order of their application, insofar as is practicable, and (B) the prompt notification in writing of any rejected applicant of the grounds for any rejection.

(e) Exception

Paragraphs (2), (3), and (4) of subsection (d) shall not apply to housing under this section that meets the following criteria:

(1) The housing is affordable housing with not more than 4 dwelling units, each of which is made available for rental.

(2) Each dwelling unit in the housing bears rent in an amount that complies with the requirements described in paragraph (1)(A).1

1 So in original.

(3) Each dwelling unit in the housing is accompanied by a low-income family.

(4) No dwelling in the housing is refused for leasing to a holder of a voucher under section 1437f of this title because of the status of the prospective tenant as a holder of that voucher.

(5) The housing complies with the requirement described in paragraph (1)(E).1

(6) The participating jurisdiction in which the housing is located monitors the compliance of the housing with the requirements of this subchapter in a manner consistent with the purposes of section 12756(b) of this title, as determined by the Secretary.

(Pub. L. 101–625, title II, § 225, Nov. 28, 1990, 104 Stat. 4113; Pub. L. 114–113, div. L, title II, § 235, Dec. 18, 2015, 129 Stat. 2896; Pub. L. 119–101, title V, § 501(q), (v)(11), July 11, 2026, 140 Stat. 914, 918.)

§ 12756. Monitoring of compliance

(a) Enforceable agreements

(b) Periodic monitoring

(1) In general

(2) Onsite inspections

(A) Inspections by units of general local government

(B) Inspections by States

(3) Inclusion in performance report and publication

(Pub. L. 101–625, title II, § 226, Nov. 28, 1990, 104 Stat. 4114; Pub. L. 119–101, title V, § 501(t)(3), July 11, 2026, 140 Stat. 915.)

§ 12757. Revitalizing empty structures into desirable environments

(a) DefinitionsIn this section:

(1) Attainable housing

(2) Converted housing unit

(3) Covered grant

(4) Eligible entity

(5) Pilot Program

(6) Vacant and abandoned buildingThe term “vacant and abandoned building” means a property—

(A) that was constructed for use as a warehouse, factory, mall, strip mall, or hotel, or for another industrial or commercial use; and

(B)

(i) with respect to which—(I) a code enforcement inspection has determined that the property is not safe; and(II) not less than 90 days have elapsed since the owner was notified of the deficiencies in the property and the owner has taken no corrective action; or

(ii) that is subject to a court-ordered receivership or nuisance abatement related to abandonment pursuant to State or local law or otherwise meets the definition of an abandoned property under State law.

(b) Purpose of grant program

(1) In general

(2) Fiscal years with lower funding

(d) Relation to formula allocation

(e) PriorityIn awarding covered grants, the Secretary shall give priority to an eligible entity that—

(1) will use the covered grant in a community that is experiencing economic distress;

(2) will use the covered grant in a qualified opportunity zone (as defined in section 1400Z–1(a) of title 26);

(3) will use the covered grant to construct housing that will serve a need identified in the comprehensive housing affordability strategy and community development plan of the eligible entity under part 91 of title 24, Code of Federal Regulations, or any successor regulation (commonly referred to as a “consolidated plan”); or

(4) has enacted ordinances to reduce regulatory barriers to conversion of vacant and abandoned buildings to housing, which shall not include any alteration of an ordinance that governs safety and habitability.

(f) Use of fundsAn eligible entity may use a covered grant for—

(1) property acquisition;

(2) demolition;

(3) health hazard remediation;

(4) site preparation;

(5) construction, renovation, or rehabilitation; or

(6) the establishment, maintenance, or expansion of community land trusts or housing cooperatives.

(g) Waiver authority

(h) Study; reportNot later than 180 days after the termination of the Pilot Program, the Secretary shall study and submit to Congress a report on the impact of the Pilot Program on—

(1) improving the tax base of local communities;

(2) increasing access to affordable housing, especially for elderly individuals, disabled individuals, and veterans;

(3) increasing home-ownership; and

(4) removing blight.

(Pub. L. 101–625, title II, § 227, as added Pub. L. 119–101, title II, § 210(a), July 11, 2026, 140 Stat. 880.)