Collapse to view only § 1437aaa-1. Planning grants
- § 1437aaa. Program authority
- § 1437aaa-1. Planning grants
- § 1437aaa-2. Implementation grants
- § 1437aaa-3. Homeownership program requirements
- § 1437aaa-4. Other program requirements
- § 1437aaa-5. Definitions
- § 1437aaa-6. Relationship to other homeownership opportunities
- § 1437aaa-7. Limitation on selection criteria
- § 1437aaa-8. Annual report
§ 1437aaa. Program authority
(a) In general
The Secretary is authorized to make—
(1) planning grants to help applicants to develop homeownership programs in accordance with this subchapter; and
(2) implementation grants to carry out homeownership programs in accordance with this subchapter.
(b) Authority to reserve housing assistance
(Sept. 1, 1937, ch. 896, title III, § 301, as added Pub. L. 101–625, title IV, § 411, Nov. 28, 1990, 104 Stat. 4148; amended Pub. L. 102–550, title I, § 181(a)(2)(A), Oct. 28, 1992, 106 Stat. 3735.)
§ 1437aaa–1. Planning grants
(a) Grants
(b) Eligible activities
Planning grants may be used for activities to develop homeownership programs (which may include programs for cooperative ownership), including—
(1) development of resident management corporations and resident councils;
(2) training and technical assistance for applicants related to development of a specific homeownership program;
(3) studies of the feasibility of a homeownership program;
(4) inspection for lead-based paint hazards, as required by section 4822(a) of this title;
(5) preliminary architectural and engineering work;
(6) tenant and homebuyer counseling and training;
(7) planning for economic development, job training, and self-sufficiency activities that promote economic self-sufficiency of homebuyers and homeowners under the homeownership program;
(8) development of security plans; and
(9) preparation of an application for an implementation grant under this subchapter.
(c) Application
(1) Form and procedures
(2) Minimum requirements
The Secretary shall require that an application contain at a minimum—
(A) a request for a planning grant, specifying the activities proposed to be carried out, the schedule for completing the activities, the personnel necessary to complete the activities, and the amount of the grant requested;
(B) a description of the applicant and a statement of its qualifications;
(C) identification and description of the public housing project or projects involved, and a description of the composition of the tenants, including family size and income;
(D) 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
(E) 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 794 of title 29, and the Age Discrimination Act of 1975 [42 U.S.C. 6101 et seq.], and will affirmatively further fair housing.
(d) Selection criteria
The Secretary shall, by regulation, establish selection criteria for a national competition for assistance under this section, which shall include—
(1) the qualifications or potential capabilities of the applicant;
(2) the extent of tenant interest in the development of a homeownership program for the project;
(3) the potential of the applicant for developing a successful and affordable homeownership program and the suitability of the project for homeownership;
(4) national geographic diversity among projects for which applicants are selected to receive assistance; and
(5) such other factors that the Secretary shall require that (in the determination of the Secretary) are appropriate for purposes of carrying out the program established by this subchapter in an effective and efficient manner.
(Sept. 1, 1937, ch. 896, title III, § 302, as added Pub. L. 101–625, title IV, § 411, Nov. 28, 1990, 104 Stat. 4149; amended Pub. L. 102–550, title X, § 1012(h)(1), Oct. 28, 1992, 106 Stat. 3906.)
§ 1437aaa–2. Implementation grants
(a) Grants
(b) Eligible activities
Implementation grants may be used for activities to carry out homeownership programs (including programs for cooperative ownership) that meet the requirements under this subchapter, including the following activities:
(1) Architectural and engineering work.
(2) Implementation of the homeownership program, including acquisition of the public housing project from a public housing agency for the purpose of transferring ownership to eligible families in accordance with a homeownership program that meets the requirements under this subchapter.
(3) Rehabilitation of any public housing project 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) Development of resident management corporations and resident management councils, but only if the applicant has not received assistance under section 1437aaa–1 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) Funding of operating expenses and replacement reserves of the project covered by the homeownership program, except that the amount of assistance for operating expenses shall not exceed the amount the project would have received if it had continued to receive such assistance from the Operating Fund, with adjustments comparable to those that would have been made under section 1437g of this title, and except that implementation grants may not be used under this paragraph to fund operating expenses for scattered site public housing acquired under a homeownership program.
(11) Implementation of a replacement housing plan.
(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
(2) Form
Such contributions may be in the form of—
(A) cash contributions from non-Federal resources, which may not include Federal tax expenditures or funds from a grant made under section 5306(b) of this title 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) of this title 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 subchapter;
(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 subchapter; 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.
(3) Reduction of requirement
(d) Application
(1) Form and procedure
(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) if applicable, an application for assistance under section 1437f of this title, which shall specify 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 housing for low-income families;
(D) a description of the proposed homeownership program, consistent with section 1437aaa–3 of this title and the other requirements of this subchapter, which shall specify 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 1437aaa–3(b) of this title;
(E) identification and description of the public housing project or projects 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, where applicable, by a resident council or other entity for transfer to eligible families, and (II) by eligible families of ownership interests in, or shares representing, units in the project;
(H) if the applicant is not a public housing agency, the proposed sales price, if any, the basis for such price determination, and terms to the applicant;
(I) the estimated 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 105 of the Cranston-Gonzalez National Affordable Housing Act [42 U.S.C. 12705] 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 794 of title 29, 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 a national competition for assistance under this section, which shall include—
(1) the ability of the applicant to develop and carry out the proposed homeownership program, taking into account the quality of any related ongoing program of the applicant, and the extent of tenant interest in the development of a homeownership program and community support;
(2) the feasibility of the homeownership program;
(3) the extent to which current tenants and other eligible families will be able to afford the purchase;
(4) the quality and viability of the proposed homeownership program, including the viability of the economic self-sufficiency plan;
(5) the extent to which funds for activities that do not qualify as eligible activities will be provided in support of the homeownership program;
(6) whether the approved comprehensive housing affordability strategy for the jurisdiction within which the public housing project is located includes the proposed homeownership program as one of the general priorities identified pursuant to section 105(b)(7) of the Cranston-Gonzalez National Affordable Housing Act [42 U.S.C. 12705(b)(7)];
(7) national geographic diversity among housing for which applicants are selected to receive assistance; and
(8) the extent to which a sufficient supply of affordable rental housing exists in the locality, so that the implementation of the homeownership program will not reduce the number of such rental units available to residents currently residing in such units or eligible for residency in such units.
(f) Location within participating jurisdictions
The Secretary may approve applications for grants under this subchapter only for public housing projects located within the boundaries of jurisdictions—
(1) which are participating jurisdictions under title III of the Cranston-Gonzalez National Affordable Housing Act; or
(2) on behalf of which the agency responsible for affordable housing has submitted a housing strategy or plan.
(g) Approval
(Sept. 1, 1937, ch. 896, title III, § 303, as added Pub. L. 101–625, title IV, § 411, Nov. 28, 1990, 104 Stat. 4150; amended Pub. L. 102–550, title I, § 181(b), (c), (g)(1), title X, § 1012(h)(2), Oct. 28, 1992, 106 Stat. 3735, 3736, 3906; Pub. L. 105–276, title V, § 519(c)(1), Oct. 21, 1998, 112 Stat. 2561.)
§ 1437aaa–3. Homeownership program requirements
(a) In general
(b) Affordability
(c) Plan
A homeownership program under this subchapter shall provide, and include a plan, for—
(1) identifying and selecting eligible families to participate in the homeownership program;
(2) providing relocation assistance to families who elect to move;
(3) ensuring continued affordability by tenants, homebuyers, and homeowners in the project;
(4) providing ongoing training and counseling for homebuyers and homeowners; and
(5) replacing units in eligible projects covered by a homeownership program.
(d) Acquisition and rehabilitation limitations
(e) Financing
(1) In general
(2) Prohibition against pledges
Property transferred under this subchapter shall not be pledged as collateral for debt or otherwise encumbered except when the Secretary determines that—
(A) such encumbrance will not threaten the long-term availability of the property for occupancy by low-income families;
(B) neither the Federal Government nor the public housing agency will be exposed to undue risks related to action that may have to be taken pursuant to paragraph (3);
(C) any debt obligation can be serviced from project income, including operating assistance; and
(D) the proceeds of such encumbrance will be used only to meet housing standards in accordance with subsection (f) or to make such additional capital improvements as the Secretary determines to be consistent with the purposes of this subchapter.
(3) Opportunity to cure
(f) Housing quality standards
The application shall include a plan ensuring that the unit—
(1) will be free from any defects that pose a danger to health or safety before transfer of an ownership interest in, or shares representing, a unit to an eligible family; and
(2) will, not later than 2 years after the transfer to an eligible family, meet minimum housing standards established by the Secretary for the purposes of this subchapter.
(g) Repealed. Pub. L. 105–276, title V, § 531(b)(1), Oct. 21, 1998, 112 Stat. 2573
(h) Protection of non-purchasing families
(1) In general
(2) Replacement assistance
(3) Relocation assistance
(4) Other rights
(Sept. 1, 1937, ch. 896, title III, § 304, as added Pub. L. 101–625, title IV, § 411, Nov. 28, 1990, 104 Stat. 4153; amended Pub. L. 102–550, title I, § 181(g)(1)(A), Oct. 28, 1992, 106 Stat. 3736; Pub. L. 104–19, title I, § 1002(b), July 27, 1995, 109 Stat. 236; Pub. L. 105–276, title V, § 531(b)(1), Oct. 21, 1998, 112 Stat. 2573.)
§ 1437aaa–4. Other program requirements
(a) Sale by public housing agency to applicant or other entity required
(b) Preferences
(c) Cost limitations
(d) Annual contributions
(e) Amounts from Operating Fund allocation
(f) Use of proceeds from sales to eligible families
(g) Restrictions on resale by homeowners
(1) In general
(A) Transfer permitted
(B) Right to purchase
(C) Promissory note required
(2) 6 years or less
In the case of a transfer within 6 years of the acquisition under the program, the homeownership program shall provide for appropriate restrictions to assure that an eligible family may not receive any undue profit. The plan shall provide for limiting the family’s consideration for its interest in the property to the total of—
(A) the contribution to equity paid by the family;
(B) the value, as determined by such means as the Secretary shall determine through regulation, of any improvements installed at the expense of the family during the family’s tenure as owner; and
(C) the appreciated value determined by an inflation allowance at a rate which may be based on a cost-of-living index, an income index, or market index as determined by the Secretary through regulation and agreed to by the purchaser and the entity that transfers ownership interests in, or shares representing, units to eligible families (or another entity specified in the approved application), at the time of initial sale, and applied against the contribution to equity.
Such an entity may, at the time of initial sale, enter into an agreement with the family to set a maximum amount which this appreciation may not exceed.
(3) 6–20 years
(4) Use of recaptured funds
(h) Third party rights
(i) Dollar limitation on economic development activities
(j) Timely homeownership
(k) Capability of resident management corporations and resident councils
(l) Records and audit of recipients of assistance
(1) In general
(2) Access by the Secretary
(3) Access by the Comptroller General
(Sept. 1, 1937, ch. 896, title III, § 305, as added Pub. L. 101–625, title IV, § 411, Nov. 28, 1990, 104 Stat. 4155; amended Pub. L. 105–276, title V, § 519(c)(2), Oct. 21, 1998, 112 Stat. 2561.)
§ 1437aaa–5. DefinitionsFor purposes of this subchapter:
(1) The term “applicant” means the following entities that may represent the tenants of the project:
(A) A public housing agency.
(B) A resident management corporation, established in accordance with requirements of the Secretary under section 1437r of this title.
(C) A resident council.
(D) A cooperative association.
(E) A public or private nonprofit organization.
(F) A public body, including an agency or instrumentality thereof.
(2) The term “eligible family” means—
(A) a family or individual who is a tenant in the public housing project on the date the Secretary approves an implementation grant;
(B) a low-income family; or
(C) a family or individual who is assisted under a housing program administered by the Secretary or the Secretary of Agriculture (not including any non-low income families assisted under any mortgage insurance program administered by either Secretary).
(3) The term “homeownership program” means a program for homeownership meeting the requirements under this subchapter.
(4) The term “recipient” means an applicant approved to receive a grant under this subchapter or such other entity specified in the approved application that will assume the obligations of the recipient under this subchapter.
(5) The term “resident council” means any incorporated nonprofit organization or association that—
(A) is representative of the tenants of the housing;
(B) adopts written procedures providing for the election of officers on a regular basis; and
(C) has a democratically elected governing board, elected by the tenants of the housing.
(
§ 1437aaa–6. Relationship to other homeownership opportunities
The program authorized under this subchapter shall be in addition to any other public housing homeownership and management opportunities, including opportunities under section 1437c(h) 1
1 See References in Text note below.
of this title.(Sept. 1, 1937, ch. 896, title III, § 307, as added Pub. L. 101–625, title IV, § 411, Nov. 28, 1990, 104 Stat. 4159; amended Pub. L. 104–330, title V, § 501(c)(3), Oct. 26, 1996, 110 Stat. 4042; Pub. L. 105–276, title V, § 518(a)(2)(C), Oct. 21, 1998, 112 Stat. 2551.)
§ 1437aaa–7. Limitation on selection criteria
In establishing criteria for selecting applicants to receive assistance under this subchapter, the Secretary may not establish any selection criterion or criteria that grant or deny such assistance to an applicant (or have the effect of granting or denying assistance) based on the implementation, continuation, or discontinuation of any public policy, regulation, or law of any jurisdiction in which the applicant or project is located.
(Sept. 1, 1937, ch. 896, title III, § 308, as added Pub. L. 101–625, title IV, § 411, Nov. 28, 1990, 104 Stat. 4159.)
§ 1437aaa–8. Annual report
The Secretary shall annually submit to the Congress a report setting forth—
(1) the number, type, and cost of public housing units sold pursuant to this subchapter;
(2) the income, race, gender, children, and other characteristics of families participating (or not participating) in homeownership programs funded under this subchapter;
(3) the amount and type of financial assistance provided under and in conjunction with this subchapter;
(4) the amount of financial assistance provided under this subchapter that was needed to ensure continued affordability and meet future maintenance and repair costs; and
(5) the recommendations of the Secretary for statutory and regulatory improvements to the program.
(Sept. 1, 1937, ch. 896, title III, § 309, as added Pub. L. 101–625, title IV, § 411, Nov. 28, 1990, 104 Stat. 4159.)