42 U.S.C. § 12873 — Implementation grants

(a) Grants: The Secretary is allowed to give implementation grants to groups (applicants) so they can carry out approved homeownership programs. (b) Eligible activities: Grant money can pay for many things tied to the homeownership program: architecture and engineering work; buying the property so it can be transferred to eligible families; fixing up the property to meet the Secretary's standards; removing lead paint hazards as required by law; the applicant's own administrative costs, capped at 15% of the grant; setting up resident management groups (only if the applicant hasn't already gotten separate funding for that under section 12872); counseling and training homebuyers and homeowners; paying moving costs for tenants who choose to leave; temporary moves needed during repairs; planning for small businesses, job training, and other work that helps residents become self-sufficient and helps the neighborhood grow; covering operating costs and reserve funds for the property; legal fees; ongoing training needs related to running the program; and other economic self-sufficiency activities for homebuyers and residents. (c) Matching funding: Each grant recipient must get outside (non-federal) money worth at least 33% of the grant, not counting money for post-sale operating expenses. This match can come from: cash from non-federal sources (but not from certain other HUD grants under section 5306(b) or (d)); paying administrative expenses from non-federal sources (this one can include those 5306 grants); the value of taxes, fees, or charges that are normally charged but get waived or delayed to help the program; the appraised value of land or property; the value of on-site or off-site infrastructure investment; or other in-kind contributions the Secretary approves. Contributions counted toward administrative expenses can't be credited above 7% of the total grant amount. (d) Application: Applicants apply in whatever form and following whatever steps the Secretary sets. The application must include, at minimum: a request stating the grant amount wanted and how it will be used; if needed, a request for rental assistance under section 1437f, saying how it will be used and for how long; a description of the applicant's experience providing low-income housing; a description of the homeownership program, consistent with section 12874, including the specific activities, costs, timeline, and how it will meet the affordability rule in section 12874(b); a description of the property and the current tenants (family size and income); a description of the matching funds and other resources expected; details on financing for any repairs and for buying the property, both by the transferring entity and by the eligible families; the proposed sale price and how it was set, and terms for any entity that will resell the property to families; the proposed sale prices and terms to eligible families themselves; any restrictions on reselling units; who will manage and operate the property; a certification from the responsible local official that the plan fits the area's approved housing strategy (or, in the first 12 months after November 28, 1990, some other appropriate existing plan); and a certification that the applicant will follow 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 support fair housing. Selection criteria (also labeled (d) in the statute): The Secretary must set criteria for choosing which applications to fund, covering: the applicant's qualifications and ability; whether the homeownership program is workable; how much interest tenants have shown in it; whether an affordable homeownership program is possible and whether the property suits it; spreading assistance across different parts of the country; whether the area already has enough affordable rental housing so that starting this program won't meaningfully shrink the rental housing available to current or future eligible renters; and any other factors the Secretary decides fit the goal of running the program well. (e) Approval: The Secretary must tell each applicant, within 6 months of getting the application, whether it is approved. The Secretary can approve the implementation grant while stating that related rental assistance under section 8 (for residents who don't buy units) is only conditionally approved, depending on future funding from Congress.