42 U.S.C. § 12873 — Implementation grants
submitted 36 years ago by Pub. L. 101-625 to r/title-42-THE-PUBLIC-HEALTH-AND-WELFARE · 1,259 words · no verdicts yet
The Secretary may make implementation grants for approved homeownership programs. The grants may fund listed development, property, tenant, training, administrative, and economic activities. Recipients must provide qualifying non-Federal contributions and submit applications that meet the listed requirements.
(a) Grants: The Secretary* may make implementation grants to applicants to carry out homeownership programs approved under this part.
(b) Eligible activities: Implementation grants may be used for activities that carry out homeownership programs, including cooperative-ownership programs. These activities include:
(1) Architectural and engineering work.
(2) Acquiring the eligible property* so ownership can be transferred to eligible families under a homeownership program* that meets this part's requirements.
(3) Rehabilitating property covered by the homeownership program, according to standards established by the Secretary.
(4) Removing lead-based paint hazards, as required by section 4822(a) of this title.
(5) The applicant's administrative costs. These costs may not be more than 15 percent of the assistance provided under this section.
(6) Developing resident management corporations and resident management councils, but only if the applicant* has not received assistance under section 12872 of this title for those activities.
(7) Counseling and training homebuyers and homeowners under the homeownership program.
(8) Relocating tenants who choose to move.
(9) Any necessary temporary relocation of tenants during rehabilitation.
(10) Planning for establishing for-profit or nonprofit small businesses by residents or on their behalf; job training; and other activities that promote the economic self-sufficiency of homebuyers and homeowners of the property covered by the homeownership program and the economic development of the neighborhood.
(11) Funding operating expenses and replacement reserves for the property covered by the homeownership program.
(12) Legal fees.
(13) Paying the recipient's continuing training needs that relate to developing and carrying out the homeownership program.
(14) Economic development activities that promote the economic self-sufficiency of homebuyers, residents, and homeowners under the homeownership program.
(c) Matching funding:
(1) In general: Each recipient* must ensure that contributions from non-Federal sources equal at least 33 percent of the grant amounts made available under this section. This does not include amounts provided for post-sale operating expenses. The contributions must be used to carry out the homeownership program.
(2) Form: The contributions may be:
(A) Cash from non-Federal resources. This may not include funds from a grant made under section 5306(b) or section 5306(d) of this title.
(B) Payment of administrative expenses, as the Secretary defines them, from non-Federal resources. These resources may include funds from a grant made under section 5306(b) or section 5306(d) of this title.
(C) The value of taxes, fees, or other charges that are normally and customarily imposed but are waived, not collected, or postponed in a way that helps implement a homeownership program assisted under this part.
(D) The value of land or other real property, appraised under procedures acceptable to the Secretary.
(E) The value of investment in on-site and off-site infrastructure required for a homeownership program assisted under this part.
(F) Other in-kind contributions that the Secretary approves.
Contributions for administrative expenses may be counted only up to an amount equal to 7 percent of the total amount of grants made available under this section.
(d) Application:
(1) Form and procedure: An applicant must submit an application for an implementation grant in the form and under the procedures the Secretary establishes.
(2) Minimum requirements: The Secretary must require an application to contain at least the following:
(A) A request for an implementation grant that states the requested amount and the proposed uses of the grant.
(B) If applicable, an application for assistance under section 1437f of this title. It must state* the proposed uses of that assistance and the period during which it will be needed.
(C) A description of the applicant's qualifications and experience providing low-income housing.
(D) A description of the proposed homeownership program, consistent with section 12874 of this title and the other requirements of this part. It must state the proposed activities and their estimated costs, identify reasonable schedules for carrying them out, and show that the program will comply with the affordability requirements under section 12874(b) of this title.
(E) Identification and description of the property involved, and a description of the tenants, including family size and income.
(F) A description of, and commitment for, the resources expected to be available for the matching funding required under subsection (c), and other resources expected to support the homeownership program.
(G) Identification and description of the proposed financing for (i) rehabilitation and (ii) acquisition of the property—(I) by an entity for transfer to eligible families, and (II) by eligible families to acquire ownership interests in, or shares representing, units in the project*.
(H) The proposed sales price, the basis for determining that price, and the terms for any entity that will buy the property for resale to eligible families.
(I) The proposed sales prices, if any, and terms for eligible families.
(J) Any proposed restrictions on reselling units under a homeownership program.
(K) Identification and description of the entity that will operate and manage the property.
(L) A certification by the public official responsible for submitting the comprehensive housing affordability strategy under section 12705 of this title. The certification must state that the proposed activities are consistent with the approved housing strategy of the State or unit of general local government* where the project is located. During the first 12 months after November 28, 1990, the certification may instead state that the application is consistent with another existing State or local housing plan or strategy that the Secretary determines appropriate.
(M) 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 affirmatively further fair housing.
(d) Selection criteria: The Secretary must establish selection criteria for assistance under this section. The criteria must include:
(1) The applicant's qualifications or potential capabilities.
(2) The feasibility of the homeownership program.
(3) The extent of tenant interest in developing a homeownership program for the property.
(4) The potential for developing an affordable homeownership program and the property's suitability for homeownership.
(5) National geographic diversity among the housing for which applicants are selected to receive assistance.
(6) The extent to which the locality has a sufficient supply of affordable rental housing of the type assisted under this title. The implementation of the homeownership program must not appreciably reduce the number of those rental units available to residents who currently live in them or are eligible to live in them.
(7) Other factors the Secretary determines appropriate to carry out the program established by this part effectively and efficiently.
(e) Approval: No later than 6 months after the application is submitted, the Secretary must notify each applicant whether the application is approved or not approved. The Secretary may approve the implementation grant while stating that the application for section 8 assistance under section 1437f of this title for project residents who do not purchase units is conditionally approved, subject to the availability of appropriations in later fiscal years.
The Secretary* is authorized to make implementation grants to applicants for the purpose of carrying out homeownership programs approved under this part.
Implementation grants may be used for activities to carry out homeownership programs (including programs for cooperative ownership), including the following activities:
Architectural and engineering work.
Acquisition of the eligible property* for the purpose of transferring ownership to eligible families in accordance with a homeownership program* that meets the requirements under this part.
Rehabilitation of any property covered by the homeownership program, in accordance with standards established by the Secretary.
Abatement of lead-based paint hazards, as required by section 4822(a) of this title.
Administrative costs of the applicant*, which may not exceed 15 percent of the amount of the assistance provided under this section.
Development of resident management corporations and resident management councils, but only if the applicant has not received assistance under section 12872 1 of this title for such activities.
Counseling and training of homebuyers and homeowners under the homeownership program.
Relocation of tenants who elect to move.
Any necessary temporary relocation of tenants during rehabilitation.
Planning for establishment of for- or not-for-profit small businesses by or on behalf of residents, job training, and other activities that promote economic self-sufficiency of homebuyers and homeowners of the property covered by the homeownership program and economic development of the neighborhood.
Funding of operating expenses and replacement reserves of the property covered by the homeownership program.
Legal fees.
Defraying costs for the ongoing training needs of the recipient* that are related to developing and carrying out the homeownership program.
Economic development activities that promote economic self-sufficiency of homebuyers, residents, and homeowners under the homeownership program.
Each recipient shall assure that contributions equal to not less than 33 percent of the grant amounts made available under this section, excluding any amounts provided for post-sale operating expense, shall be provided from non-Federal sources to carry out the homeownership program.
Such contributions may be in the form of—
cash contributions from non-Federal resources, which may not include funds from a grant made under section 5306(b) or section 5306(d) of this title;
payment of administrative expenses, as defined by the Secretary, from non-Federal resources, including funds from a grant made under section 5306(b) or section 5306(d) of this title;
the value of taxes, fees, or other charges that are normally and customarily imposed but are waived, foregone, or deferred in a manner that facilitates the implementation of a homeownership program assisted under this part;
the value of land or other real property as appraised according to procedures acceptable to the Secretary;
the value of investment in on-site and off-site infrastructure required for a homeownership program assisted under this part; or
such other in-kind contributions as the Secretary may approve.
Contributions for administrative expenses shall be recognized only up to an amount equal to 7 percent of the total amount of grants made available under this section.
An application for an implementation grant shall be submitted by an applicant in such form and in accordance with such procedures as the Secretary shall establish.
The Secretary shall require that an application contain at a minimum—
a request for an implementation grant, specifying the amount of the grant requested and its proposed uses;
if applicable, an application for assistance under section 1437f of this title, specifying the proposed uses of such assistance and the period during which the assistance will be needed;
a description of the qualifications and experience of the applicant in providing low-income housing;
a description of the proposed homeownership program, consistent with section 12874 1 of this title and the other requirements of this part, specifying the activities proposed to be carried out and their estimated costs, identifying reasonable schedules for carrying it out, and demonstrating the program will comply with the affordability requirements under section 12874(b) 1 of this title;
identification and description of the property involved, and a description of the composition of the tenants, including family size and income;
a description of and commitment for the resources that are expected to be made available to provide the matching funding required under subsection (c) and of other resources that are expected to be made available in support of the homeownership program;
identification and description of the financing proposed for any (i) rehabilitation and (ii) acquisition (I) of the property, by an entity for transfer to eligible families, and (II) by eligible families of ownership interests in, or shares representing, units in the project*;
the proposed sales price, the basis for such price determination, and terms to an entity, if any, that will purchase the property for resale to eligible families;
the proposed sales prices, if any, and terms to eligible families;
any proposed restrictions on the resale of units under a homeownership program;
identification and description of the entity that will operate and manage the property;
a certification by the public official responsible for submitting the comprehensive housing affordability strategy under section 12705 of this title that the proposed activities are consistent with the approved housing strategy of the State* or unit of general local government* within which the project is located (or, during the first 12 months after November 28, 1990, that the application is consistent with such other existing State or local housing plan or strategy that the Secretary shall determine to be appropriate); and
a certification that the applicant will comply with the requirements of the Fair Housing Act [42 U.S.C. 3601 et seq.], title VI of the Civil Rights Act of 1964 [42 U.S.C. 2000d et seq.], section 504 of the Rehabilitation Act of 1973 [29 U.S.C. 794], and the Age Discrimination Act of 1975 [42 U.S.C. 6101 et seq.], and will affirmatively further fair housing.
The Secretary shall establish selection criteria for assistance under this section, which shall include—
the qualifications or potential capabilities of the applicant;
the feasibility of the homeownership program;
the extent of tenant interest in the development of a homeownership program for the property;
the potential for developing an affordable homeownership program and the suitability of the property for homeownership;
national geographic diversity among housing for which applicants are selected to receive assistance;
the extent to which a sufficient supply of affordable rental housing of the type assisted under this title 1 exists in the locality, so that the implementation of the homeownership program will not appreciably reduce the number of such rental units available to residents currently residing in such units or eligible for residency in such units; and
such other factors as the Secretary determines to be appropriate for purposes of carrying out the program established by the 3 part in an effective and efficient manner.
The Secretary shall notify each applicant, not later than 6 months after the date of the submission of the application, whether the application is approved or not approved. The Secretary may approve the application for an implementation grant with a statement that the application for the section 8 [42 U.S.C. 1437f] assistance for residents of the project not purchasing units is conditionally approved, subject to the availability of appropriations in subsequent fiscal years.
Source credit: (Pub. L. 101–625, title IV, § 423, Nov. 28, 1990, 104 Stat. 4163; Pub. L. 102–550, title X, § 1012(i)(2), Oct. 28, 1992, 106 Stat. 3906.)
- 1990Enacted · Pub. L. 101-625 · 104 Stat. 4163
- 1992Amended · Pub. L. 102-550 · 106 Stat. 3906
A history note hasn’t been published yet. The record shows enactment by Pub. L. 101-625 on 1990-11-28.
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