42 U.S.C. § 12872 — Planning grants

(a) Grants: The Secretary may give planning grants to applicants for developing homeownership programs under this part. A grant generally cannot exceed $200,000, though the Secretary may approve a larger amount for good cause. (b) Eligible activities: Planning grants can pay for activities that develop a homeownership program (including cooperative ownership programs), such as (1) setting up resident management corporations and resident councils; (2) training and technical assistance for applicants working on a specific homeownership program; (3) studying whether a homeownership program is feasible; (4) inspecting for lead-based paint hazards as required by section 4822(a); (5) preliminary architectural and engineering work; (6) counseling and training tenants and homebuyers; (7) planning economic development, job training, and self-sufficiency activities for homebuyers and homeowners; (8) developing security plans; and (9) preparing an application for an implementation grant under this part. (c) Application: (1) Form and procedures: An application must follow whatever form and procedures the Secretary sets. (2) Minimum requirements: At minimum, an application must include (A) a request for the grant, listing the proposed activities, schedule, needed staff, and amount requested; (B) a description of the applicant and its qualifications; (C) identification and description of the property involved, including the tenants' family size and income; (D) a certification from the official responsible for the comprehensive housing affordability strategy that the proposed activities fit the approved state or local housing strategy (or, for the first 12 months after November 28, 1990, fit another existing plan the Secretary approves); and (E) a certification that the applicant will comply with the Fair Housing Act, Title VI of the Civil Rights Act of 1964, section 504 of the Rehabilitation Act of 1973, and the Age Discrimination Act of 1975, and will actively further fair housing. (d) Selection criteria: The Secretary must set, by regulation, criteria for a national competition for this assistance, including (1) the applicant's qualifications or potential; (2) how much tenant interest there is in a homeownership program for the property; (3) how likely the applicant is to run a successful, affordable homeownership program, and how suitable the property is for homeownership; (4) national geographic diversity among selected applicants; and (5) any other factor the Secretary requires as appropriate for running the program effectively and efficiently.