42 U.S.C. § 1439 — Local housing assistance plan

(a)(1) When the HUD Secretary receives an application for housing assistance under the 1937 Housing Act, section 101 of the Housing and Urban Development Act of 1965, or another covered program, the Secretary must within 10 days notify the chief executive of the relevant general local government and allow 30 days to object because the application conflicts with its housing assistance plan. The Secretary must use the funds as much as practicable for that plan’s needs and goals. (2) If the government objects, the Secretary may approve only after finding the application consistent with the plan. The Secretary must give the chief executive written reasons if finding consistency, or give the applicant written reasons if agreeing with the objection. (3) Without a timely objection, the Secretary may approve unless the application is inconsistent with the plan; if it is, the Secretary must give the applicant written reasons. (4) The Secretary must decide within 30 days after receiving an objection or after the objection period closes, whichever comes first. (5) “Housing assistance plan” means a plan approved under 42 U.S.C. § 5304 or, for a nonparticipating local government, a Secretary-approved plan meeting this section. In preparing it, the government must consult child-welfare agencies about housing needs of families whose inadequate housing is a primary factor in imminent foster placement or preventing discharge and reunification, and children leaving foster care who cannot return to family or extended family and cannot be adopted. The plan must include those families’ and children’s needs and goals. (b) Subsection (a) does not apply to applications for 12 or fewer units in one project; housing in new communities approved under the 1968 or 1970 Housing Acts that the Secretary finds necessary for those Acts; or housing financed by a State or State agency loan or guarantee, unless the local government objects in its plan to that exemption. (c) Repealed by Public Law 105–276, title V, section 551(1), October 21, 1998. (d)(1)(A)(i) Except under subparagraph (B), the Secretary must first allocate covered assistance by a regulation-based formula reflecting objectively measured relative needs of States, areas, and communities, including population, poverty, overcrowding, vacancies, substandard housing, and other specified conditions. Each State may receive at least one-half of one percent of each program’s yearly funds. Each program’s allocation should, as practicable, reflect the needs tied to that kind of assistance. Section 202 assistance must support projects large enough for suitable services for frail elderly residents, except projects acquired from the Resolution Trust Corporation under 12 U.S.C. § 1441a(c). Tenant-based section 8(o) assistance may not go to a disqualified public housing agency. (ii) Section 8(o) assistance must be allocated so participating jurisdictions can carry out approved comprehensive housing affordability strategies as much as practicable. They must submit recommendations under Secretary procedures allowing timely, complete information, but this does not change the formula. “Participating jurisdiction” means a State or general local government designated under title II of the Cranston-Gonzalez Act. (B) The formula does not apply to appropriations-approved assistance for section 9 or the rental-rehabilitation grant program, except that section 102 of the 1989 HUD Reform Act applies, or to assistance the Secretary finds cannot be geographically allocated, including contract amendments, renewals, replacement help after owner prepayment or nonrenewal, displacement prevention or replacement housing tied to public-housing demolition or disposition, and property-disposition or loan-management functions. (C) Allocations must go to the smallest practicable area consistent with meaningful competition serving greater needs. (D) Funds unlikely to be used in a fiscal year may not be moved to another State unless eligible areas in the same State cannot use them that year. (2) The Secretary may reserve funds for a State or its agency. (3)(A) For fiscal years beginning after September 30, 1990, the Secretary may retain up to 5 percent of yearly funds under the covered programs for later allocation to areas and communities only for unforeseen natural or other disaster needs, other emergencies certified by the Secretary, litigation settlements, and desegregation housing. (B) Unspent retained funds remain available the next year under the program and are allocated by the subsection (d)(1) formula. (4)(A) The Secretary may not reserve or obligate formula-covered assistance for specific recipients unless it is first formula-allocated and then reserved through competition. (B) The competition must use stated selection criteria in a regulation issued after notice and comment or, when legally allowed, a Federal Register notice. (C) The Secretary should hold this process with similar frequency and timing each year as practicable. (D) This paragraph does not apply to the assistance referred to in paragraph (4). (e) From fiscal-year 1988 budget authority, the Secretary must enter a 180-month annual contributions contract for enough section 8(b)(1) payments for 500 lower-income families occupying properties in Jefferson County, Texas. If a family stops qualifying during the contract, payments must be made for another qualifying family occupying a unit identified in the preceding sentence.