42 U.S.C. § 12894 — Homeownership program requirements

submitted 36 years ago by Pub. L. 101-625 to r/title-42-THE-PUBLIC-HEALTH-AND-WELFARE · 343 words · no verdicts yet

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This program lets eligible families buy ownership shares in their units. Prices must stay affordable, and all tenants in the property must join. The property must meet safety standards, and vacant units go to public-housing residents first.

(a) In general: The program must provide for eligible families to acquire ownership interests or shares in an eligible property, through an arrangement the Secretary finds fitting (like limited-equity co-ops or fee-simple/condo ownership), so families can live there. (b) Affordability: Sale prices (covering principal, insurance, taxes, interest, and closing costs) must be set low enough that no eligible family has to spend more than 30% of its adjusted monthly income to complete the purchase. (c) Eligible property: A property can only take part if, at the time the implementation grant application is filed, all its current tenants or occupants are participating in the homeownership program. (d) Plan: The program must include a plan for identifying and selecting eligible families; giving relocation help to families who move instead; and keeping the property affordable for buyers and owners over time. (e) Housing quality standards: The application must include a plan showing the unit will be free of any health or safety hazards before an ownership interest transfers to a family, and will meet the Secretary's minimum housing standards within 2 years after that transfer. (f) Preference for acquisition of vacant units: When making vacant units available to eligible families, the program must give preference to eligible families already living in public or Indian housing.

the actual law source: uscode.house.gov ↗public domain

(a) In general

A homeownership program under this part shall provide for acquisition by eligible families of ownership interests in, or shares representing, units in an eligible property under any arrangement determined by the Secretary to be appropriate, such as cooperative ownership (including limited equity cooperative ownership) and fee simple ownership (including condominium ownership), for occupancy by the eligible families.

(b) Affordability

A homeownership program under this part shall provide for the establishment of sales prices (including principal, insurance, taxes, and interest and closing costs) for initial acquisition of the property, and for sales to eligible families, such that the eligible family shall not be required to expend more than 30 percent of the adjusted income of the family per month to complete a sale under the homeownership program.

A property may not participate in a homeownership program under this part unless all tenants or occupants of the property (at the time of 1 the application for the implementation grant covering the property is filed with the Secretary) participate in the homeownership program.

(d) Plan

A homeownership program under this part shall provide, and include a plan, for—

(1)

identifying and selecting eligible families to participate in the homeownership program;

(2)

providing relocation assistance to families who elect to move; and

(3)

ensuring continued affordability of the property to homebuyers and homeowners.

(e) Housing quality standards

The application shall include a plan ensuring that the unit—

(1)

will be free from any defects that pose a danger to health or safety before transfer of an ownership interest in, or shares representing, a unit to an eligible family; and

(2)

will, not later than 2 years after the transfer to an eligible family, meet minimum housing standards established by the Secretary for the purpose of this title.2

(f) Preference for acquisition of vacant units

Each homeownership program under this part shall provide that, in making vacant units in eligible properties available for acquisition by eligible families, preference shall be given to eligible families who reside in public or Indian housing.

Source credit: (Pub. L. 101–625, title IV, § 444, Nov. 28, 1990, 104 Stat. 4176; Pub. L. 102–550, title I, § 181(f), Oct. 28, 1992, 106 Stat. 3736.)

history & why it existsrecord from the source credit

1990Enacted · Pub. L. 101-625 · 104 Stat. 4176
1992Amended · Pub. L. 102-550 · 106 Stat. 3736

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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