Demolition, site revitalization, replacement housing, and tenant-based assistance grants for projects
The purpose of this section is to provide assistance to public housing agencies for the purposes of—
(1) improving the living environment for public housing residents of severely distressed public housing projects through the demolition, rehabilitation, reconfiguration, or replacement of obsolete public housing projects (or portions thereof);
(2) revitalizing sites (including remaining public housing dwelling units) on which such public housing projects are located and contributing to the improvement of the surrounding neighborhood;
(3) providing housing that will avoid or decrease the concentration of very low-income families; and
(4) building sustainable communities.
It is also the purpose of this section to provide assistance to smaller communities for the purpose of facilitating the development of affordable housing for low-income families that is undertaken in connection with a main street revitalization or redevelopment project in such communities.
Grants under this section may be used for activities to carry out revitalization programs for severely distressed public housing, including—
(A) architectural and engineering work;
(B) redesign, rehabilitation, or reconfiguration of a severely distressed public housing project, including the site on which the project is located;
(C) the demolition, sale, or lease of the site, in whole or in part;
(D) covering the administrative costs of the applicant, which may not exceed such portion of the assistance provided under this section as the Secretary may prescribe;
(E) payment of reasonable legal fees;
(F) providing reasonable moving expenses for residents displaced as a result of the revitalization of the project;
(G) economic development activities that promote the economic self-sufficiency of residents under the revitalization program, including a Neighborhood Networks initiative for the establishment and operation of computer centers in public housing for the purpose of enhancing the self-sufficiency, employability, an 1
1 So in original. Probably should be “and”. economic self-reliance of public housing residents by providing them with onsite computer access and training resources;
(H) necessary management improvements;
(I) leveraging other resources, including additional housing resources, retail supportive services, jobs, and other economic development uses on or near the project that will benefit future residents of the site;
(J) replacement housing (including appropriate homeownership downpayment assistance for displaced residents or other appropriate replacement homeownership activities) and rental assistance under section 1437f of this title;
(K) transitional security activities; and
(L) necessary supportive services, except that not more than 15 percent of the amount of any grant may be used for activities under this paragraph.
Endowment trust for supportive services
In using grant amounts under this section made available in fiscal year 2000 or thereafter for supportive services under paragraph (1)(L), a public housing agency may deposit such amounts in an endowment trust to provide supportive services over such period of time as the agency determines. Such amounts shall be provided to the agency by the Secretary in a lump sum when requested by the agency, shall be invested in a wise and prudent manner, and shall be used (together with any interest thereon earned) only for eligible uses pursuant to paragraph (1)(L). A public housing agency may use amounts in an endowment trust under this paragraph in conjunction with other amounts donated or otherwise made available to the trust for similar purposes.
Application and selection
An application for a grant under this section shall demonstrate the appropriateness of the proposal in the context of the local housing market relative to other alternatives, and shall include such other information and be submitted at such time and in accordance with such procedures, as the Secretary shall prescribe.
The Secretary shall establish criteria for the award of grants under this section and shall include among the factors—
(A) the relationship of the grant to the public housing agency plan for the applicant and how the grant will result in a revitalized site that will enhance the neighborhood in which the project is located and enhance economic opportunities for residents;
(B) the capability and record of the applicant public housing agency, or any alternative management entity for the agency, for managing redevelopment or modernization projects, meeting construction timetables, and obligating amounts in a timely manner;
(C) the extent to which the applicant could undertake such activities without a grant under this section;
(D) the extent of involvement of residents, State and local governments, private service providers, financing entities, and developers, in the development and ongoing implementation of a revitalization program for the project, except that the Secretary may not award a grant under this section unless the applicant has involved affected public housing residents at the beginning and during the planning process for the revitalization program, prior to submission of an application;
(E) the need for affordable housing in the community;
(F) the supply of other housing available and affordable to families receiving tenant-based assistance under section 1437f of this title;
(G) the amount of funds and other resources to be leveraged by the grant;
(H) the extent of the need for, and the potential impact of, the revitalization program;
(I) the extent to which the plan minimizes permanent displacement of current residents of the public housing site who wish to remain in or return to the revitalized community and provides for community and supportive services to residents prior to any relocation;
(J) the extent to which the plan sustains or creates more project-based housing units available to persons eligible for public housing in markets where the plan shows there is demand for the maintenance or creation of such units;
(K) the extent to which the plan gives to existing residents priority for occupancy in dwelling units which are public housing dwelling units, or for residents who can afford to live in other units, priority for those units in the revitalized community; and
(L) such other factors as the Secretary considers appropriate.
Applicability of selection criteria
The Secretary may determine not to apply certain of the selection criteria established pursuant to paragraph (2) when awarding grants for demolition only, tenant-based assistance only, or other specific categories of revitalization activities. This section may not be construed to require any application for a grant under this section to include demolition of public housing or to preclude use of grant amounts for rehabilitation or rebuilding of any housing on an existing site.
The Secretary shall submit to the Congress an annual report setting forth—
(1) the number, type, and cost of public housing units revitalized pursuant to this section;
(2) the status of projects identified as severely distressed public housing;
(3) the amount and type of financial assistance provided under and in conjunction with this section, including a specification of the amount and type of assistance provided under subsection (n);
(4) the types of projects funded, and number of affordable housing dwelling units developed with, grants under subsection (n); and
(5) the recommendations of the Secretary for statutory and regulatory improvements to the program established by this section.
Grants for assisting affordable housing developed through main street projects in smaller communities
Authority and use of grant amounts
The Secretary may make grants under this subsection to smaller communities. Such grant amounts shall be used by smaller communities only to provide assistance to carry out eligible affordable housing activities under paragraph (4) in connection with an eligible project under paragraph (2).
For purposes of this subsection, the term “eligible project” means a project that—
(A) the Secretary determines, under the criteria established pursuant to paragraph (3), is a main street project;
(B) is carried out within the jurisdiction of a smaller community receiving the grant; and
(C) involves the development of affordable housing that is located in the commercial area that is the subject of the project.
Main street projects
The Secretary shall establish requirements for a project to be considered a main street project for purposes of this section, which shall require that the project—
(A) has as its purpose the revitalization or redevelopment of a historic or traditional commercial area;
(B) involves investment, or other participation, by the government for, and private entities in, the community in which the project is carried out; and
(C) complies with such historic preservation guidelines or principles as the Secretary shall identify to preserve significant historic or traditional architectural and design features in the structures or area involved in the project.
Eligible affordable housing activities
For purposes of this subsection, the activities described in subsection (d)(1) shall be considered eligible affordable housing activities, except that—
(A) such activities shall be conducted with respect to affordable housing rather than with respect to severely distressed public housing projects; and
(B) eligible affordable housing activities under this subsection shall not include the activities described in subparagraphs (B) through (E), (J), or (K) of subsection (d)(1).
Maximum grant amount
A grant under this subsection for a fiscal year for a single smaller community may not exceed $1,000,000.
A smaller community applying for a grant under this subsection shall be considered an applicant for purposes of subsection (c) (relating to contributions by applicants), except that—
(A) such supplemental amounts shall be used only for carrying out eligible affordable housing activities; and
(B) paragraphs (1)(B) and (3) shall not apply to grants under this subsection.
Applications and selection
Pursuant to subsection (e)(1), the Secretary shall provide for smaller communities to apply for grants under this subsection, except that the Secretary may establish such separate or additional criteria for applications for such grants as may be appropriate to carry out this subsection.
The Secretary shall establish selection criteria for the award of grants under this subsection, which shall be based on the selection criteria established pursuant to subsection (e)(2), with such changes as may be appropriate to carry out the purposes of this subsection.
The cost limits established pursuant to subsection (f) shall apply to eligible affordable housing activities assisted with grant amounts under this subsection.
Inapplicability of other provisions
The provisions of subsections (g) (relating to disposition and replacement of severely distressed public housing), and (h) (relating to administration of grants by other entities), shall not apply to grants under this subsection.
The Secretary shall require each smaller community receiving a grant under this subsection to submit a report regarding the use of all amounts provided under the grant.
For purposes of this subsection, the following definitions shall apply:
The term “affordable housing” means rental or homeownership dwelling units that—
(i) are made available for initial occupancy to low-income families, with a subset of units made available to very- and extremely-low income families; and
(ii) are subject to the same rules regarding occupant contribution toward rent or purchase and terms of rental or purchase as dwelling units in public housing projects assisted with a grant under this section.
The term “smaller community” means a unit of general local government (as such term is defined in section 5302 of this title) that—
(i) has a population of 50,000 or fewer; and
(ii)(I) is not served by a public housing agency; or(II) is served by a single public housing agency, which agency administers 100 or fewer public housing dwelling units.
(Sept. 1, 1937, ch. 896, title I, § 24, as added Pub. L. 102–550, title I, § 120, Oct. 28, 1992, 106 Stat. 3695; amended Pub. L. 104–99, title IV, § 402(d)(6)(A)(vi), Jan. 26, 1996, 110 Stat. 43; Pub. L. 104–330, title V, § 501(b)(9), Oct. 26, 1996, 110 Stat. 4042; Pub. L. 105–276, title V, § 535(a), Oct. 21, 1998, 112 Stat. 2581; Pub. L. 106–377, § 1(a)(1) [title II, § 214(b)], Oct. 27, 2000, 114 Stat. 1441, 1441A–27; Pub. L. 108–7, div. K, title II, § 215, Feb. 20, 2003, 117 Stat. 504; Pub. L. 108–186, title IV, §§ 402(a), (b), (d), (e), 403, Dec. 16, 2003, 117 Stat. 2693, 2694; Pub. L. 109–289, div. B, title II, § 21045, as added Pub. L. 110–5, § 2, Feb. 15, 2007, 121 Stat. 54; Pub. L. 110–161, div. K, title II, § 224, Dec. 26, 2007, 121 Stat. 2437; Pub. L. 111–8, div. I, title II, § 223, Mar. 11, 2009, 123 Stat. 976; Pub. L. 111–117, div. A, title II, § 222, Dec. 16, 2009, 123 Stat. 3101; Pub. L. 112–55, div. C, title II, § 222, Nov. 18, 2011, 125 Stat. 699; Pub. L. 113–76, div. L, title II, § 234, Jan. 17, 2014, 128 Stat. 634; Pub. L. 113–235, div. K, title II, § 229, Dec. 16, 2014, 128 Stat. 2756; Pub. L. 114–113, div. L, title II, § 228, Dec. 18, 2015, 129 Stat. 2895; Pub. L. 115–31, div. K, title II, § 226, May 5, 2017, 131 Stat. 787.)