42 U.S.C. § 12805 — Sweat equity model program

(a) In general: The Secretary must offer a model program giving grants to public and private nonprofit organizations and community housing development organizations. These grants pay for technical and supervisory help to low-income and very low-income families — including homeless families — who acquire, rehabilitate, and build housing through the self-help housing method. (b) Rehabilitation of properties: The program must target for rehabilitation properties already acquired by federal, state, or local governments. (c) Homeownership opportunities through sweat equity: (1) The program uses eligible families' skilled or unskilled labor in exchange for getting the property. (2) Families must be trained in building and home maintenance skills. (d) Rental opportunities through sweat equity: (1) The program must include rental opportunities for eligible families, to help grow the stock of affordable housing best suited to this group. (2) Tenants' skilled or unskilled labor should be encouraged instead of, or on top of, rent payments. (e) "Self-help housing" defined: This term means the same thing it means in section 1490c. (f) Additional restrictions: The model program's guidelines must generally match the extra protections and restrictions in section 1490c.