42 U.S.C. § 11408a — Use of FMHA inventory for transitional housing for homeless persons and for turnkey housing

(a) In general. The Secretary^* of Agriculture, called the “Secretary” in this section, must on a priority basis lease or sell program and nonprogram inventory properties held under title V of the Housing Act of 1949 [42 U.S.C. 1471 et seq.]—(1) for transitional housing^*; and (2) for turnkey housing for tenants of that transitional housing and eligible families.

(b) Priority. These uses may not have higher priority than—(1) selling the property to eligible families; or (2) transferring it for rental housing for eligible families.

(c) Transitional housing. (1) The Secretary must lease inventory properties to public agencies and nonprofit organizations for transitional housing for homeless^* people and families and must give those agencies the option to provide turnkey housing opportunities for homeless people and other inadequately housed families. (2) The agency or organization may rent the leased housing to a family for up to 10 years and, during that time, help the tenant obtain a title V loan and credit assistance to buy the housing from the Secretary.

(d) Lease procedures. (1) After written notice from an agency or organization proposing to lease property for transitional housing, or transitional housing plus turnkey opportunities, the Secretary must—(A) withdraw it from the market for no more than 30 days for negotiations; (B) negotiate a lease; and (C) if the parties agree, begin repairs needed to meet decent, safe, and sanitary housing standards. (2) The lease must—(A) last no more than 10 years; (B) require $1 for the 10-year lease; and (C) give the agency or organization the right to use the property for transitional housing and the option to arrange its sale to an eligible purchaser.

(e) Purchase procedures. (1) After written notice proposing a purchase for those purposes, the Secretary must withdraw the property for no more than 30 days for negotiations, negotiate a purchase agreement, and, if one is agreed, begin needed repairs. (2) The purchase price may not exceed fair market value minus 10 percent.

(f) Employment. An agency or organization may lease or buy property only if, as much as practicable, it involves homeless people and families through employment, volunteer work, or otherwise in maintaining, operating, and renovating the property and providing services to occupants.

(g) Participation. (1) By regulation, the Secretary must require each agency or organization leasing or buying property to provide for at least one homeless or formerly homeless person^* on its board or equivalent policymaking body when it considers policies and decisions about property acquired under this section. (2) The Secretary may waive this for an agency or organization unable to meet it if it agrees to consult with homeless or formerly homeless people about those policies and decisions.

(h) Budget compliance. The Secretary’s authority under this section is effective only to the extent approved in advance in appropriations Acts.