42 U.S.C. § 12893 — Implementation grants
submitted 36 years ago by Pub. L. 101-625 to r/title-42-THE-PUBLIC-HEALTH-AND-WELFARE · 1,115 words · no verdicts yet
The Secretary can give implementation grants to carry out approved homeownership programs. Money can pay for repairs, buying property, training, and legal fees. Recipients must raise matching funds and submit a detailed application for approval.
(a) Grants: The Secretary* may give implementation grants to applicants to carry out homeownership programs approved under this part.
(b) Eligible activities: Grant money can pay for: architecture and engineering work; buying the property to transfer to eligible families; fixing up the property to the Secretary's standards; lead-paint hazard abatement as required by section 4822(a); the applicant's own administrative costs, capped at 15% of the assistance; counseling and training for homebuyers and owners; relocation for eligible families who choose to move; temporary relocation of homebuyers during repairs; legal fees; costs of the recipient's ongoing training needs tied to the program; and economic development activities that help homebuyers and owners become self-sufficient.
(c) Matching funding: Each recipient* must get at least 25% of the grant amount from non-federal sources. This match can be: cash from non-federal sources (not including certain section 5306(b) or (d) grants); paying administrative expenses from non-federal sources (which can include those 5306 grants here); the value of taxes, fees, or charges normally imposed but waived or delayed to help the program; the value of on-site or off-site infrastructure investment; or other in-kind contributions the Secretary approves. Administrative-expense contributions only count up to 7% of the total grant.
(d) Application: Applicants apply as the Secretary directs. The application must include at minimum: a request stating the grant amount and planned uses; a description of the applicant's experience with low-income housing; a description of the program consistent with section 12894 and this part, including activities, costs, schedule, and how it meets the affordability rule in section 12894(b); a description of the properties to be bought and the likely eligible families (size and income); a description of expected matching and other resources; details on financing for repairs and for buying the property, both by the transferring entity and by families; the proposed sale prices and terms for reselling to eligible families, and how those prices were set; who will manage the property; a certification the plan fits the area's approved housing strategy (or another suitable plan in the first 12 months after November 28, 1990); and a certification of compliance 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 support for fair housing.
(e) Selection criteria: covering the applicant's ability to run the program (given its experience and any similar ongoing programs); the program's feasibility; its quality and viability; whether suitable eligible property* is available in the area, including how much of it is federally owned; whether the local approved housing strategy lists this kind of program as a priority under section 12705(b)(7); spreading assistance geographically; and whether the area already has enough affordable rental housing so the program won't meaningfully shrink what's available to current or future eligible renters.
(f) Approval: The Secretary must tell each applicant*, within 6 months of the application, whether it's approved.
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 (which may include programs for cooperative ownership), including the following activities:
Architectural and engineering work.
Acquisition of the property for the purpose of transferring ownership to eligible families in accordance with a homeownership program* meeting the requirements of this part.
Rehabilitation of the 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 assistance provided under this section.
Counseling and training of homebuyers and homeowners under the homeownership program.
Relocation of eligible families who elect to move.
Any necessary temporary relocation of homebuyers during rehabilitation.
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 and homeowners under the homeownership program.
Each recipient shall assure that contributions equal to not less than 25 percent of the grant amounts under this section are 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 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;
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 12894 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 that the program will comply with the affordability requirements under section 12894(b) of this title;
an identification and description of the properties to be acquired under the homeownership program and a description of the composition of potential eligible families, 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 project*, where applicable, 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 prices for the properties, the basis for such price determinations, and terms to an entity, if any, that will purchase that property for resale to eligible families;
the proposed sales prices, if any, and terms to eligible families;
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 part, which shall include—
the ability of the applicant to develop and carry out the proposed homeownership program, taking into account the qualifications and experience of the applicant and the quality of any related ongoing program of the applicant;
the feasibility of the homeownership program;
the quality and viability of the proposed homeownership program;
the extent to which suitable eligible property* is available for use under the program in the area to be served, and the extent to which the types of property expected to be covered by the proposed homeownership program are federally owned;
whether the approved comprehensive housing affordability strategy for the jurisdiction within which the eligible property is located includes the proposed homeownership program as one of the general priorities identified pursuant to section 12705(b)(7) of this title;
national geographic diversity among housing for which applicants are selected to receive assistance; and
the extent to which a sufficient supply of affordable rental housing of the type assisted under this part 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.
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.
Source credit: (Pub. L. 101–625, title IV, § 443, Nov. 28, 1990, 104 Stat. 4174; Pub. L. 102–550, title X, § 1012(j)(2), Oct. 28, 1992, 106 Stat. 3906; Pub. L. 103–233, title II, § 221, Apr. 11, 1994, 108 Stat. 366.)
- 1990Enacted · Pub. L. 101-625 · 104 Stat. 4174
- 1992Amended · Pub. L. 102-550 · 106 Stat. 3906
- 1994Amended · Pub. L. 103-233 · 108 Stat. 366
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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